JPMORGAN CHASE & CO - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - FORM 8-K - JPMORGAN CHASE & CO	y91856e8vk.htm
EX-12.1 - EX-12.1 - JPMORGAN CHASE & CO	y91856exv12w1.htm
EX-12.2 - EX-12.2 - JPMORGAN CHASE & CO	y91856exv12w2.htm
EX-99.1 - EX-99.1 - JPMORGAN CHASE & CO	y91856exv99w1.htm

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2011



JPMORGAN CHASE & CO. TABLE OF CONTENTS


		Page(s)

Consolidated Results
Consolidated Financial Highlights		2-3
Statements of Income		4
Consolidated Balance Sheets		5
Condensed Average Balance Sheets and Annualized Yields		6
Reconciliation from Reported to Managed Summary		7

Business Detail
Line of Business Financial Highlights — Managed Basis		8
Investment Bank		9-12
Retail Financial Services		13-19
Card Services		20-21
Commercial Banking		22-23
Treasury & Securities Services		24-25
Asset Management		26-30
Corporate/Private Equity		31-32

Credit-Related Information		33-38

Market Risk-Related Information		39

Supplemental Detail
Capital and Other Selected Balance Sheet Items		40
Mortgage Loan Repurchase Liability		41
Per Share-Related Information		42

Non-GAAP Financial Measures		43

Glossary of Terms		44-47

Page 1



JPMORGAN CHASE & CO. CONSOLIDATED FINANCIAL HIGHLIGHTS (in millions, except per share and ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue	$	26,779		$	25,221		$	26,098		$	23,824		$	25,101			6	%		7	%	$	52,000		$	52,772			(1	)%
Total noninterest expense		16,842			15,995			16,043			14,398			14,631			5			15			32,837			30,755			7
Pre-provision profit		9,937			9,226			10,055			9,426			10,470			8			(5	)		19,163			22,017			(13	)
Provision for credit losses		1,810			1,169			3,043			3,223			3,363			55			(46	)		2,979			10,373			(71	)
NET INCOME		5,431			5,555			4,831			4,418			4,795			(2	)		13			10,986			8,121			35

Managed Basis (a)
Total net revenue		27,410			25,791			26,722			24,335			25,613			6			7			53,201			53,785			(1	)
Total noninterest expense		16,842			15,995			16,043			14,398			14,631			5			15			32,837			30,755			7
Pre-provision profit		10,568			9,796			10,679			9,937			10,982			8			(4	)		20,364			23,030			(12	)
Provision for credit losses		1,810			1,169			3,043			3,223			3,363			55			(46	)		2,979			10,373			(71	)
NET INCOME		5,431			5,555			4,831			4,418			4,795			(2	)		13			10,986			8,121			35

PER COMMON SHARE DATA
Basic earnings		1.28			1.29			1.13			1.02			1.10			(1	)		16			2.57			1.84			40
Diluted earnings		1.27			1.28			1.12			1.01			1.09			(1	)		17			2.55			1.83			39

Cash dividends declared		0.25			0.25	(g)		0.05			0.05			0.05			—			400			0.50			0.10			400
Book value		44.77			43.34			43.04			42.29			40.99			3			9			44.77			40.99			9
Closing share price (b)		40.94			46.10			42.42			38.06			36.61			(11	)		12			40.94			36.61			12
Market capitalization		160,083			183,783			165,875			149,418			145,554			(13	)		10			160,083			145,554			10

COMMON SHARES OUTSTANDING
Average: Basic		3,958.4			3,981.6			3,917.0			3,954.3			3,983.5			(1	)		(1	)		3,970.0			3,977.0			—
Diluted		3,983.2			4,014.1			3,935.2			3,971.9			4,005.6			(1	)		(1	)		3,998.6			4,000.2			—
Common shares at period-end		3,910.2			3,986.6			3,910.3			3,925.8			3,975.8			(2	)		(2	)		3,910.2			3,975.8			(2	)

FINANCIAL RATIOS (c)
Return on common equity (“ROE”)		12	%		13	%		11	%		10	%		12	%								13	%		10	%
Return on tangible common equity (“ROTCE”) (d)		17			18			16			15			17									18			15
Return on assets (“ROA”)		0.99			1.07			0.92			0.86			0.94									1.03			0.80

CAPITAL RATIOS
Tier 1 capital ratio		12.4	(f)		12.3			12.1			11.9			12.1
Total capital ratio		15.7	(f)		15.6			15.5			15.4			15.8
Tier 1 common capital ratio (e)		10.1	(f)		10.0			9.8			9.5			9.6


(a)		For further discussion of managed basis, see Reconciliation from Reported to Managed Summary on page 7.

(b)		Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.

(c)		Ratios are based upon annualized amounts.

(d)		ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of tangible common equity. In management’s view, this measure is meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity and in facilitating comparisons with competitors. For further discussion, see page 43.

(e)		Tier 1 common capital ratio is Tier 1 common capital divided by risk-weighted assets. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. For further discussion of Tier 1 common capital ratio, see page 43.

(f)		Estimated.

(g)		On March 18, 2011, the Board of Directors increased the Firm’s quarterly common stock dividend from $0.05 to $0.25 per share.

Page 2



JPMORGAN CHASE & CO. CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
SELECTED BALANCE SHEET DATA (Period-end)
Total assets	$	2,246,764		$	2,198,161		$	2,117,605		$	2,141,595		$	2,014,019			2	%		12	%	$	2,246,764		$	2,014,019			12	%
Wholesale loans		248,823			236,007			227,633			220,597			216,826			5			15			248,823			216,826			15
Consumer, excluding credit card loans		315,390			321,186			327,618			333,498			339,663			(2	)		(7	)		315,390			339,663			(7	)
Credit card loans		125,523			128,803			137,676			136,436			142,994			(3	)		(12	)		125,523			142,994			(12	)
Deposits		1,048,685			995,829			930,369			903,138			887,805			5			18			1,048,685			887,805			18
Common stockholders’ equity		175,079			172,798			168,306			166,030			162,968			1			7			175,079			162,968			7
Total stockholders’ equity		182,879			180,598			176,106			173,830			171,120			1			7			182,879			171,120			7

Deposits-to-loans ratio		152	%		145	%		134	%		131	%		127	%								152	%		127	%

Headcount		250,095			242,929			239,831			236,810			232,939			3			7			250,095			232,939			7

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	2,057		$	2,370		$	1,501		$	1,286		$	1,381			(13	)		49		$	4,427		$	3,852			15
Retail Financial Services		582			(208	)		708			907			1,042		NM				(44	)		374			911			(59	)
Card Services		911			1,343			1,299			735			343			(32	)		166			2,254			40		NM
Commercial Banking		607			546			530			471			693			11			(12	)		1,153			1,083			6
Treasury & Securities Services		333			316			257			251			292			5			14			649			571			14
Asset Management		439			466			507			420			391			(6	)		12			905			783			16
Corporate/Private Equity		502			722			29			348			653			(30	)		(23	)		1,224			881			39

NET INCOME	$	5,431		$	5,555		$	4,831		$	4,418		$	4,795			(2	)		13		$	10,986		$	8,121			35

Page 3



JPMORGAN CHASE & CO. STATEMENTS OF INCOME (in millions, except per share and ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
REVENUE
Investment banking fees	$	1,933		$	1,793		$	1,832		$	1,476		$	1,421			8	%		36	%	$	3,726		$	2,882			29	%
Principal transactions		3,140			4,745			1,915			2,341			2,090			(34	)		50			7,885			6,638			19
Lending- and deposit-related fees		1,649			1,546			1,545			1,563			1,586			7			4			3,195			3,232			(1	)
Asset management, administration and commissions		3,703			3,606			3,697			3,188			3,349			3			11			7,309			6,614			11
Securities gains		837			102			1,253			102			1,000		NM				(16	)		939			1,610			(42	)
Mortgage fees and related income		1,103			(487	)		1,617			707			888		NM				24			616			1,546			(60	)
Credit card income		1,696			1,437			1,558			1,477			1,495			18			13			3,133			2,856			10
Other income		882			574			579			468			585			54			51			1,456			997			46

Noninterest revenue		14,943			13,316			13,996			11,322			12,414			12			20			28,259			26,375			7
Interest income		15,632			15,447			15,612			15,606			15,719			1			(1	)		31,079			32,564			(5	)
Interest expense		3,796			3,542			3,510			3,104			3,032			7			25			7,338			6,167			19

Net interest income		11,836			11,905			12,102			12,502			12,687			(1	)		(7	)		23,741			26,397			(10	)

TOTAL NET REVENUE		26,779			25,221			26,098			23,824			25,101			6			7			52,000			52,772			(1	)
Provision for credit losses		1,810			1,169			3,043			3,223			3,363			55			(46	)		2,979			10,373			(71	)
NONINTEREST EXPENSE
Compensation expense		7,569			8,263			6,571			6,661			7,616			(8	)		(1	)		15,832			14,892			6
Occupancy expense		935			978			1,045			884			883			(4	)		6			1,913			1,752			9
Technology, communications and equipment expense		1,217			1,200			1,198			1,184			1,165			1			4			2,417			2,302			5
Professional and outside services		1,866			1,735			1,789			1,718			1,685			8			11			3,601			3,260			10
Marketing		744			659			584			651			628			13			18			1,403			1,211			16
Other expense		4,299			2,943			4,616			3,082			2,419			46			78			7,242			6,860			6
Amortization of intangibles		212			217			240			218			235			(2	)		(10	)		429			478			(10	)

TOTAL NONINTEREST EXPENSE		16,842			15,995			16,043			14,398			14,631			5			15			32,837			30,755			7

Income before income tax expense		8,127			8,057			7,012			6,203			7,107			1			14			16,184			11,644			39
Income tax expense		2,696			2,502			2,181			1,785			2,312			8			17			5,198			3,523			48

NET INCOME	$	5,431		$	5,555		$	4,831		$	4,418		$	4,795			(2	)		13		$	10,986		$	8,121			35


PER COMMON SHARE DATA
Basic earnings	$	1.28		$	1.29		$	1.13		$	1.02		$	1.10			(1	)		16		$	2.57		$	1.84			40
Diluted earnings		1.27			1.28			1.12			1.01			1.09			(1	)		17			2.55			1.83			39

FINANCIAL RATIOS
Return on equity		12	%		13	%		11	%		10	%		12	%								13	%		10	%
Return on tangible common equity (a)		17			18			16			15			17									18			15
Return on assets		0.99			1.07			0.92			0.86			0.94									1.03			0.80
Effective income tax rate		33			31			31			29			33									32			30
Overhead ratio		63			63			61			60			58									63			58


(a)		ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of tangible common equity. In management’s view, this measure is meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity and in facilitating comparisons with competitors. For further discussion, see page 43.

Page 4



JPMORGAN CHASE & CO. CONSOLIDATED BALANCE SHEETS (in millions)


																June 30, 2011
																Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2011			2011			2010			2010			2010			2011			2010
ASSETS
Cash and due from banks	$	30,466		$	23,469		$	27,567		$	23,960		$	32,806			30	%		(7	)%
Deposits with banks		169,880			80,842			21,673			31,077			39,430			110			331
Federal funds sold and securities purchased under resale agreements		213,362			217,356			222,554			235,390			199,024			(2	)		7
Securities borrowed		121,493			119,000			123,587			127,365			122,289			2			(1	)
Trading assets:
Debt and equity instruments		381,339			422,404			409,411			378,222			317,293			(10	)		20
Derivative receivables		77,383			78,744			80,481			97,293			80,215			(2	)		(4	)
Securities		324,741			334,800			316,336			340,168			312,013			(3	)		4
Loans		689,736			685,996			692,927			690,531			699,483			1			(1	)
Less: Allowance for loan losses		28,520			29,750			32,266			34,161			35,836			(4	)		(20	)

Loans, net of allowance for loan losses		661,216			656,246			660,661			656,370			663,647			1			—
Accrued interest and accounts receivable		80,292			79,236			70,147			63,224			61,295			1			31
Premises and equipment		13,679			13,422			13,355			11,316			11,267			2			21
Goodwill		48,882			48,856			48,854			48,736			48,320			—			1
Mortgage servicing rights		12,243			13,093			13,649			10,305			11,853			(6	)		3
Other intangible assets		3,679			3,857			4,039			3,982			4,178			(5	)		(12	)
Other assets		108,109			106,836			105,291			114,187			110,389			1			(2	)

TOTAL ASSETS	$	2,246,764		$	2,198,161		$	2,117,605		$	2,141,595		$	2,014,019			2			12


LIABILITIES
Deposits	$	1,048,685		$	995,829		$	930,369		$	903,138		$	887,805			5			18
Federal funds purchased and securities loaned or sold under repurchase agreements		254,124			285,444			276,644			314,161			237,455			(11	)		7
Commercial paper		51,160			46,022			35,363			38,611			41,082			11			25
Other borrowed funds (a)		30,208			36,704			34,325			35,736			32,607			(18	)		(7	)
Trading liabilities:
Debt and equity instruments		84,865			80,031			76,947			82,919			74,745			6			14
Derivative payables		63,668			61,362			69,219			74,902			60,137			4			6
Accounts payable and other liabilities		184,490			171,638			170,330			169,365			160,478			7			15
Beneficial interests issued by consolidated VIEs		67,457			70,917			77,649			77,438			88,148			(5	)		(23	)
Long-term debt (a)		279,228			269,616			270,653			271,495			260,442			4			7

TOTAL LIABILITIES		2,063,885			2,017,563			1,941,499			1,967,765			1,842,899			2			12

STOCKHOLDERS’ EQUITY
Preferred stock		7,800			7,800			7,800			7,800			8,152			—			(4	)
Common stock		4,105			4,105			4,105			4,105			4,105			—			—
Capital surplus		95,061			94,660			97,415			96,938			96,745			—			(2	)
Retained earnings		82,612			78,342			73,998			69,531			65,465			5			26
Accumulated other comprehensive income		1,638			712			1,001			3,096			2,404			130			(32	)
Shares held in RSU Trust, at cost		(53	)		(53	)		(53	)		(68	)		(68	)		—			22
Treasury stock, at cost		(8,284	)		(4,968	)		(8,160	)		(7,572	)		(5,683	)		(67	)		(46	)

TOTAL STOCKHOLDERS’ EQUITY		182,879			180,598			176,106			173,830			171,120			1			7

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,246,764		$	2,198,161		$	2,117,605		$	2,141,595		$	2,014,019			2			12


(a)		Effective January 1, 2011, the long-term portion of advances from Federal Home Loan Banks (“FHLBs”) was reclassified from other borrowed funds to long-term debt. Prior periods have been revised to conform with the current presentation.

Page 5



JPMORGAN CHASE & CO. CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS (in millions, except rates)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
AVERAGE BALANCES
ASSETS
Deposits with banks	$	75,801		$	37,155		$	29,213		$	38,747		$	58,737			104	%		29	%	$	56,584		$	61,468			(8	)%
Federal funds sold and securities purchased under resale agreements		202,036			202,481			201,489			192,099			189,573			—			7			202,256			179,858			12
Securities borrowed		124,806			114,589			119,973			121,302			113,650			9			10			119,726			114,140			5
Trading assets — debt instruments		285,104			275,512			273,929			251,790			245,532			3			16			280,334			246,804			14
Securities		342,248			318,936			328,126			327,798			327,425			7			5			330,657			332,405			(1	)
Loans		686,111			688,133			690,529			693,791			705,189			—			(3	)		687,117			715,108			(4	)
Other assets (a)		48,716			49,887			42,583			36,912			34,429			(2	)		41			49,299			31,175			58

Total interest-earning assets		1,764,822			1,686,693			1,685,842			1,662,439			1,674,535			5			5			1,725,973			1,680,958			3
Trading assets — equity instruments		137,611			141,951			122,827			96,200			95,080			(3	)		45			139,769			89,408			56
Trading assets — derivative receivables		82,860			85,437			87,569			92,857			79,409			(3	)		4			84,141			79,048			6
All other noninterest-earning assets		207,250			190,371			192,906			189,617			194,623			9			6			198,858			191,763			4

TOTAL ASSETS	$	2,192,543		$	2,104,452		$	2,089,144		$	2,041,113		$	2,043,647			4			7		$	2,148,741		$	2,041,177			5


LIABILITIES
Interest-bearing deposits	$	732,766		$	700,921		$	669,346		$	659,027		$	668,953			5			10		$	716,932		$	673,169			7
Federal funds purchased and securities loaned or sold under repurchase agreements		281,843			278,250			287,493			281,171			273,614			1			3			280,056			272,779			3
Commercial paper		41,682			36,838			34,507			34,523			37,557			13			11			39,273			37,509			5
Trading liabilities — debt, short-term and other liabilities (b)(c)		212,878			193,814			196,840			188,010			189,826			10			12			203,398			179,586			13
Beneficial interests issued by consolidated VIEs		69,399			72,932			78,114			83,928			90,085			(5	)		(23	)		71,156			94,072			(24	)
Long-term debt (c)		273,934			269,156			273,066			267,556			270,085			2			1			271,559			275,883			(2	)

Total interest-bearing liabilities		1,612,502			1,551,911			1,539,366			1,514,215			1,530,120			4			5			1,582,374			1,532,998			3
Noninterest-bearing deposits		247,137			229,461			225,966			213,700			209,615			8			18			238,347			204,871			16
Trading liabilities — equity instruments		3,289			7,872			7,166			6,560			5,216			(58	)		(37	)		5,568			5,470			2
Trading liabilities — derivative payables		66,009			71,288			71,727			69,350			62,547			(7	)		6			68,634			60,809			13
All other noninterest-bearing liabilities		81,729			66,705			70,307			65,335			68,928			23			19			74,259			71,287			4

TOTAL LIABILITIES		2,010,666			1,927,237			1,914,532			1,869,160			1,876,426			4			7			1,969,182			1,875,435			5

Preferred stock		7,800			7,800			7,800			7,991			8,152			—			(4	)		7,800			8,152			(4	)
Common stockholders’ equity		174,077			169,415			166,812			163,962			159,069			3			9			171,759			157,590			9

TOTAL STOCKHOLDERS’ EQUITY		181,877			177,215			174,612			171,953			167,221			3			9			179,559			165,742			8

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,192,543		$	2,104,452		$	2,089,144		$	2,041,113		$	2,043,647			4			7		$	2,148,741		$	2,041,177			5


AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks		0.76	%		1.11	%		1.02	%		0.85	%		0.63	%								0.87	%		0.61	%
Federal funds sold and securities purchased under resale agreements		1.20			1.09			1.05			0.92			0.84									1.14			0.90
Securities borrowed		0.10			0.17			0.16			0.22			0.11									0.13			0.11
Trading assets — debt instruments		4.23			4.31			4.29			4.37			4.25									4.27			4.41
Securities		3.10			2.89			2.44			2.67			3.14									3.00			3.34
Loans		5.36			5.62			5.71			5.71			5.68									5.49			5.80
Other assets (a)		1.30			1.20			1.54			1.57			1.60									1.25			1.49
Total interest-earning assets		3.58			3.74			3.70			3.75			3.79									3.66			3.93

INTEREST-BEARING LIABILITIES
Interest-bearing deposits		0.61			0.53			0.50			0.51			0.53									0.58			0.52
Federal funds purchased and securities loaned or sold under repurchase agreements		0.29			0.17			0.12			(0.28)	(d)		(0.07)	(d)								0.23			(0.06	)(d)
Commercial paper		0.19			0.21			0.21			0.20			0.19									0.20			0.19
Trading liabilities — debt, short-term and other liabilities (b)(c)		1.26			1.43			1.57			1.27			1.11									1.34			1.24
Beneficial interests issued by consolidated VIEs		1.17			1.19			1.13			1.36			1.36									1.18			1.36
Long-term debt (c)		2.31			2.39			2.25			2.30			2.00									2.35			2.01
Total interest-bearing liabilities		0.94			0.93			0.90			0.81			0.79									0.94			0.81

INTEREST RATE SPREAD		2.64	%		2.81	%		2.80	%		2.94	%		3.00	%								2.72	%		3.12	%
NET YIELD ON INTEREST-EARNING ASSETS		2.72	%		2.89	%		2.88	%		3.01	%		3.06	%								2.80	%		3.19	%


(a)		Includes margin loans.

(b)		Includes brokerage customer payables.

(c)		Effective January 1, 2011, the long-term portion of the advances from FHLBs was reclassified from other borrowed funds, which is included in short-term and other liabilities, to long-term debt. Prior periods have been revised to conform with the current presentation.

(d)		Includes a benefit from the favorable market environments for dollar-roll financings.

Page 6



JPMORGAN CHASE & CO. RECONCILIATION FROM REPORTED TO MANAGED SUMMARY (in millions)

The Firm prepares its consolidated financial statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year to year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 43.

The following summary table provides a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.


	QUARTERLY TRENDS																YEAR-TO-DATE
											2Q11 Change										2011 Change
	2Q11		1Q11		4Q10		3Q10		2Q10		1Q11			2Q10			2011		2010		2010
OTHER INCOME
Other income — reported	$	882	$	574	$	579	$	468	$	585		54	%		51	%	$	1,456	$	997		46	%
Fully tax-equivalent adjustments		510		451		503		415		416		13			23			961		827		16

Other income — managed	$	1,392	$	1,025	$	1,082	$	883	$	1,001		36			39		$	2,417	$	1,824		33


TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	14,943	$	13,316	$	13,996	$	11,322	$	12,414		12			20		$	28,259	$	26,375		7
Fully tax-equivalent adjustments		510		451		503		415		416		13			23			961		827		16

Total noninterest revenue — managed	$	15,453	$	13,767	$	14,499	$	11,737	$	12,830		12			20		$	29,220	$	27,202		7


NET INTEREST INCOME
Net interest income — reported	$	11,836	$	11,905	$	12,102	$	12,502	$	12,687		(1	)		(7	)	$	23,741	$	26,397		(10	)
Fully tax-equivalent adjustments		121		119		121		96		96		2			26			240		186		29

Net interest income — managed	$	11,957	$	12,024	$	12,223	$	12,598	$	12,783		(1	)		(6	)	$	23,981	$	26,583		(10	)


TOTAL NET REVENUE
Total net revenue — reported	$	26,779	$	25,221	$	26,098	$	23,824	$	25,101		6			7		$	52,000	$	52,772		(1	)
Fully tax-equivalent adjustments		631		570		624		511		512		11			23			1,201		1,013		19

Total net revenue — managed	$	27,410	$	25,791	$	26,722	$	24,335	$	25,613		6			7		$	53,201	$	53,785		(1	)


PRE-PROVISION PROFIT
Total pre-provision profit — reported	$	9,937	$	9,226	$	10,055	$	9,426	$	10,470		8			(5	)	$	19,163	$	22,017		(13	)
Fully tax-equivalent adjustments		631		570		624		511		512		11			23			1,201		1,013		19

Total pre-provision profit — managed	$	10,568	$	9,796	$	10,679	$	9,937	$	10,982		8			(4	)	$	20,364	$	23,030		(12	)


INCOME TAX EXPENSE
Income tax expense — reported	$	2,696	$	2,502	$	2,181	$	1,785	$	2,312		8			17		$	5,198	$	3,523		48
Fully tax-equivalent adjustments		631		570		624		511		512		11			23			1,201		1,013		19

Income tax expense — managed	$	3,327	$	3,072	$	2,805	$	2,296	$	2,824		8			18		$	6,399	$	4,536		41

Page 7



JPMORGAN CHASE & CO. LINE OF BUSINESS FINANCIAL HIGHLIGHTS — MANAGED BASIS (in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
TOTAL NET REVENUE (FTE)
Investment Bank (a)	$	7,314		$	8,233		$	6,213		$	5,353		$	6,332			(11	)%		16	%	$	15,547		$	14,651			6	%
Retail Financial Services		7,976			6,275			8,525			7,646			7,809			27			2			14,251			15,585			(9	)
Card Services		3,927			3,982			4,246			4,253			4,217			(1	)		(7	)		7,909			8,664			(9	)
Commercial Banking		1,627			1,516			1,611			1,527			1,486			7			9			3,143			2,902			8
Treasury & Securities Services		1,932			1,840			1,913			1,831			1,881			5			3			3,772			3,637			4
Asset Management		2,537			2,406			2,613			2,172			2,068			5			23			4,943			4,199			18
Corporate/Private Equity (a)		2,097			1,539			1,601			1,553			1,820			36			15			3,636			4,147			(12	)

TOTAL NET REVENUE	$	27,410		$	25,791		$	26,722		$	24,335		$	25,613			6			7		$	53,201		$	53,785			(1	)


TOTAL PRE-PROVISION PROFIT
Investment Bank (a)	$	2,982		$	3,217		$	2,012		$	1,649		$	1,810			(7	)		65		$	6,199		$	5,291			17
Retail Financial Services		2,339			1,013			3,701			3,129			3,528			131			(34	)		3,352			7,062			(53	)
Card Services		2,305			2,427			2,732			2,808			2,781			(5	)		(17	)		4,732			5,826			(19	)
Commercial Banking		1,064			953			1,053			967			944			12			13			2,017			1,821			11
Treasury & Securities Services		479			463			443			421			482			3			(1	)		942			913			3
Asset Management		743			746			836			684			663			—			12			1,489			1,352			10
Corporate/Private Equity (a)		656			977			(98	)		279			774			(33	)		(15	)		1,633			765			113

TOTAL PRE-PROVISION PROFIT	$	10,568		$	9,796		$	10,679		$	9,937		$	10,982			8			(4	)	$	20,364		$	23,030			(12	)


NET INCOME/(LOSS)
Investment Bank	$	2,057		$	2,370		$	1,501		$	1,286		$	1,381			(13	)		49		$	4,427		$	3,852			15
Retail Financial Services		582			(208	)		708			907			1,042		NM				(44	)		374			911			(59	)
Card Services		911			1,343			1,299			735			343			(32	)		166			2,254			40		NM
Commercial Banking		607			546			530			471			693			11			(12	)		1,153			1,083			6
Treasury & Securities Services		333			316			257			251			292			5			14			649			571			14
Asset Management		439			466			507			420			391			(6	)		12			905			783			16
Corporate/Private Equity		502			722			29			348			653			(30	)		(23	)		1,224			881			39

TOTAL NET INCOME	$	5,431		$	5,555		$	4,831		$	4,418		$	4,795			(2	)		13		$	10,986		$	8,121			35


AVERAGE EQUITY (b)
Investment Bank	$	40,000		$	40,000		$	40,000		$	40,000		$	40,000			—			—		$	40,000		$	40,000			—
Retail Financial Services		28,000			28,000			28,000			28,000			28,000			—			—			28,000			28,000			—
Card Services		13,000			13,000			15,000			15,000			15,000			—			(13	)		13,000			15,000			(13	)
Commercial Banking		8,000			8,000			8,000			8,000			8,000			—			—			8,000			8,000			—
Treasury & Securities Services		7,000			7,000			6,500			6,500			6,500			—			8			7,000			6,500			8
Asset Management		6,500			6,500			6,500			6,500			6,500			—			—			6,500			6,500			—
Corporate/Private Equity		71,577			66,915			62,812			59,962			55,069			7			30			69,259			53,590			29

TOTAL AVERAGE EQUITY	$	174,077		$	169,415		$	166,812		$	163,962		$	159,069			3			9		$	171,759		$	157,590			9


RETURN ON EQUITY (b)
Investment Bank		21	%		24	%		15	%		13	%		14	%								22	%		19	%
Retail Financial Services		8			(3	)		10			13			15									3			7
Card Services		28			42			34			19			9									35			1
Commercial Banking		30			28			26			23			35									29			27
Treasury & Securities Services		19			18			16			15			18									19			18
Asset Management		27			29			31			26			24									28			24
JPMORGAN CHASE		12			13			11			10			12									13			10


(a)		Corporate/Private Equity includes an adjustment to offset IB’s inclusion of a credit allocation income/(expense) to TSS in total net revenue; TSS reports the credit allocation as a separate line on its income statement (not within total net revenue).

(b)		Equity for a line of business represents the amount the Firm believes the business would require if it were operating independently, incorporating sufficient capital to address regulatory capital requirements (including Basel III Tier 1 common capital requirements), economic risk measures, and capital levels for similarly rated peers. Capital is also allocated to each line of business for, among other things, goodwill and other intangibles associated with acquisitions effected by the line of business. ROE is measured and internal targets for expected returns are established as key measures of a business segment’s performance. Effective January 1, 2011, capital allocated to Card Services was reduced by $2.0 billion, to $13.0 billion, largely reflecting portfolio runoff and the improving risk profile of the business; capital allocated to Treasury & Securities Services was increased by $500 million, to $7.0 billion, reflecting growth in the underlying business. The Firm continues to assess the level of capital required for each line of business, as well as the assumptions and methodologies used to allocate capital to the business segments, and further refinements may be implemented in future periods.

Page 8



JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS (in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,922		$	1,779		$	1,833		$	1,502		$	1,405			8	%		37	%	$	3,701		$	2,851			30	%
Principal transactions		2,309			3,398			1,289			1,129			2,105			(32	)		10			5,707			6,036			(5	)
Lending- and deposit-related fees		218			214			209			205			203			2			7			432			405			7
Asset management, administration and commissions		548			619			652			565			633			(11	)		(13	)		1,167			1,196			(2	)
All other income (a)		236			166			185			61			86			42			174			402			135			198

Noninterest revenue		5,233			6,176			4,168			3,462			4,432			(15	)		18			11,409			10,623			7
Net interest income		2,081			2,057			2,045			1,891			1,900			1			10			4,138			4,028			3

TOTAL NET REVENUE (b)		7,314			8,233			6,213			5,353			6,332			(11	)		16			15,547			14,651			6

Provision for credit losses		(183	)		(429	)		(271	)		(142	)		(325	)		57			44			(612	)		(787	)		22

NONINTEREST EXPENSE
Compensation expense		2,564			3,294			1,845			2,031			2,923			(22	)		(12	)		5,858			5,851			—
Noncompensation expense		1,768			1,722			2,356			1,673			1,599			3			11			3,490			3,509			(1	)

TOTAL NONINTEREST EXPENSE		4,332			5,016			4,201			3,704			4,522			(14	)		(4	)		9,348			9,360			—


Income before income tax expense		3,165			3,646			2,283			1,791			2,135			(13	)		48			6,811			6,078			12
Income tax expense		1,108			1,276			782			505			754			(13	)		47			2,384			2,226			7

NET INCOME	$	2,057		$	2,370		$	1,501		$	1,286		$	1,381			(13	)		49		$	4,427		$	3,852			15


FINANCIAL RATIOS
ROE		21	%		24	%		15	%		13	%		14	%								22	%		19	%
ROA		0.98			1.18			0.75			0.68			0.78									1.08			1.12
Overhead ratio		59			61			68			69			71									60			64
Compensation expense as a percent of total net revenue (c)		35			40			30			38			46									38			40

REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	601		$	429		$	424		$	385		$	355			40			69		$	1,030		$	660			56
Equity underwriting		455			379			489			333			354			20			29			834			767			9
Debt underwriting		866			971			920			784			696			(11	)		24			1,837			1,424			29

Total investment banking fees		1,922			1,779			1,833			1,502			1,405			8			37			3,701			2,851			30
Fixed income markets (d)		4,280			5,238			2,875			3,123			3,563			(18	)		20			9,518			9,027			5
Equity markets (e)		1,223			1,406			1,128			1,135			1,038			(13	)		18			2,629			2,500			5
Credit portfolio (a)(f)		(111	)		(190	)		377			(407	)		326			42		NM				(301	)		273		NM

Total net revenue	$	7,314		$	8,233		$	6,213		$	5,353		$	6,332			(11	)		16		$	15,547		$	14,651			6


(a)		IB manages core credit exposures related to the Global Corporate Bank (“GCB”) on behalf of IB and TSS. Effective January 1, 2011, IB and TSS will share the economics related to the Firm’s GCB clients. IB recognizes this sharing arrangement within all other income. Prior-year periods reflected the reimbursement from TSS for a portion of the total costs of managing the credit portfolio on behalf of TSS.

(b)		Total net revenue included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as tax-exempt income from municipal bond investments of $493 million, $438 million, $475 million, $390 million and $401 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $931 million and $804 million for year-to-date 2011 and 2010, respectively.

(c)		The compensation expense as a percentage of total net revenue ratio for the second quarter of 2010 and year-to-date of 2010 excluding the payroll tax expense related to the U.K. Bank Payroll Tax on certain compensation awarded from December 9, 2009 to April 5, 2010 to relevant banking employees, which is a non-GAAP financial measure, was 37% and 36%, respectively. IB excludes this tax from the ratio because it enables comparability between periods.

(d)		Fixed income markets primarily include revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets.

(e)		Equities markets primarily include revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and Prime Services.

(f)		Credit portfolio revenue includes net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring, for IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

Page 9



JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
SELECTED BALANCE SHEET DATA (period-end)
Loans:
Loans retained (a)	$	56,107		$	52,712		$	53,145		$	51,299		$	54,049			6	%		4	%	$	56,107		$	54,049			4	%
Loans held-for-sale and loans at fair value		3,466			5,070			3,746			2,252			3,221			(32	)		8			3,466			3,221			8

Total loans		59,573			57,782			56,891			53,551			57,270			3			4			59,573			57,270			4
Equity		40,000			40,000			40,000			40,000			40,000			—			—			40,000			40,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	841,355		$	815,828		$	792,703		$	746,926		$	710,005			3			18		$	828,662		$	693,157			20
Trading assets — debt and equity instruments		374,694			368,956			346,990			300,517			296,031			2			27			371,841			290,091			28
Trading assets — derivative receivables		69,346			67,462			72,491			76,530			65,847			3			5			68,409			65,998			4
Loans:
Loans retained (a)		54,590			53,370			52,502			53,331			53,351			2			2			53,983			55,912			(3	)
Loans held-for-sale and loans at fair value		4,154			3,835			3,504			2,678			3,530			8			18			3,995			3,341			20

Total loans		58,744			57,205			56,006			56,009			56,881			3			3			57,978			59,253			(2	)
Adjusted assets (b)		628,475			611,038			587,307			539,459			527,520			3			19			619,805			517,135			20
Equity		40,000			40,000			40,000			40,000			40,000			—			—			40,000			40,000			—

Headcount		27,716			26,494			26,314			26,373			26,279			5			5			27,716			26,279			5

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	7		$	123		$	(23	)	$	33		$	28			(94	)		(75	)	$	130		$	725			(82	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(c)		1,494			2,388			3,159			2,025			1,926			(37	)		(22	)		1,494			1,926			(22	)
Nonaccrual loans held-for-sale and loans at fair value		193			259			460			361			334			(25	)		(42	)		193			334			(42	)

Total nonaccrual loans		1,687			2,647			3,619			2,386			2,260			(36	)		(25	)		1,687			2,260			(25	)

Derivative receivables		18			21			34			255			315			(14	)		(94	)		18			315			(94	)
Assets acquired in loan satisfactions		83			73			117			148			151			14			(45	)		83			151			(45	)

Total nonperforming assets		1,788			2,741			3,770			2,789			2,726			(35	)		(34	)		1,788			2,726			(34	)
Allowance for credit losses:
Allowance for loan losses		1,178			1,330			1,863			1,976			2,149			(11	)		(45	)		1,178			2,149			(45	)
Allowance for lending-related commitments		383			424			447			570			564			(10	)		(32	)		383			564			(32	)

Total allowance for credit losses		1,561			1,754			2,310			2,546			2,713			(11	)		(42	)		1,561			2,713			(42	)

Net charge-off/(recovery) rate (a)(d)		0.05	%		0.93	%		(0.17	)%		0.25	%		0.21	%								0.49	%		2.61	%
Allow. for loan losses to period-end loans retained (a)(d)		2.10			2.52			3.51			3.85			3.98									2.10			3.98
Allow. for loan losses to nonaccrual loans retained (a)(c)(d)		79			56			59			98			112									79			112
Nonaccrual loans to total period-end loans		2.83			4.58			6.36			4.46			3.95									2.83			3.95


(a)		Loans retained included credit portfolio loans, leveraged leases and other accrual loans, and excluded loans held-for-sale and loans at fair value.

(b)		Adjusted assets, a non-GAAP financial measure, is presented to assist the reader in comparing IB’s asset and capital levels to those of other investment banks in the securities industry. For further discussion of adjusted assets, see page 43.

(c)		Allowance for loan losses of $377 million, $567 million, $1.1 billion, $603 million and $617 million were held against these nonaccrual loans at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.

(d)		Loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage ratio and net charge-off/(recovery) rate.

Page 10



JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and rankings data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR - 95% CONFIDENCE LEVEL
Trading activities:
Fixed income	$	45		$	49		$	53		$	72		$	64			(8	)%		(30	)%	$	47		$	66			(29	)%
Foreign exchange		9			11			10			9			10			(18	)		(10	)		10			12			(17	)
Equities		25			29			23			21			20			(14	)		25			27			22			23
Commodities and other		16			13			14			13			20			23			(20	)		15			18			(17	)
Diversification (a)		(37	)		(38	)		(38	)		(38	)		(42	)		3			12			(38	)		(46	)		17

Total trading VaR (b)		58			64			62			77			72			(9	)		(19	)		61			72			(15	)

Credit portfolio VaR (c)		27			26			26			30			27			4			—			27			23			17
Diversification (a)		(8	)		(7	)		(10	)		(8	)		(9	)		(14	)		11			(8	)		(9	)		11

Total trading and credit portfolio VaR	$	77		$	83		$	78		$	99		$	90			(7	)		(14	)	$	80		$	86			(7	)


	June 30, 2011 YTD					Full Year 2010
	Market Share			Rankings		Market Share			Rankings
MARKET SHARES AND RANKINGS (d)
Global investment banking fees (e)		8.8	%		#1		7.6	%		#1
Debt, equity and equity-related
Global		6.9			1		7.2			1
U.S.		11.5			1		11.1			1
Syndicated loans
Global		12.4			1		8.5			2
U.S.		22.8			1		19.2			2
Long-term debt (f)
Global		6.8			2		7.2			2
U.S.		11.5			1		10.9			2
Equity and equity-related
Global (g)		7.2			3		7.3			3
U.S.		11.9			2		13.1			2
Announced M&A (h)
Global		20.5			2		16.4			3
U.S.		33.9			1		23.1			3


(a)		Average value-at-risk (“ VaR”) was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is therefore usually less than the sum of the risks of the positions themselves.

(b)		Trading VaR includes substantially all trading activities in IB, including the credit spread sensitivities of certain mortgage products and syndicated lending facilities that the Firm intends to distribute; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. Trading VaR does not include the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm.

(c)		Credit portfolio VaR includes the derivative credit valuation adjustments (“CVA”), hedges of the CVA and mark-to-market (“MTM”) hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not MTM.

(d)		Source: Dealogic. Global Investment Banking fees reflects the ranking of fees and market share. Remainder of rankings reflects transaction volume rank and market share.

(e)		Global IB fees exclude money market, short-term debt and shelf deals.

(f)		Long-term debt tables include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities and mortgage-backed securities; and exclude money market, short-term debt, and U.S. municipal securities.

(g)		Equity and equity-related rankings include rights offerings and Chinese A-Shares.

(h)		Global announced M&A is based on transaction value at announcement; all other rankings are based on transaction proceeds, with full credit to each book manager/equal if joint. Because of joint assignments, market share of all participants will add up to more than 100%. M&A for year-to-date 2011 and full year 2010 reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S. involvement ranking.

Page 11



JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED (in millions)


	QUARTERLY TRENDS																YEAR-TO-DATE
											2Q11 Change										2011 Change
	2Q11		1Q11		4Q10		3Q10		2Q10		1Q11			2Q10			2011		2010		2010
INTERNATIONAL METRICS
Total net revenue: (a)
Asia/Pacific	$	762	$	1,122	$	927	$	993	$	901		(32	)%		(15	)%	$	1,884	$	1,889		—	%
Latin America/Caribbean		337		327		172		167		248		3			36			664		558		19
Europe/Middle East/Africa		2,478		2,592		1,423		1,538		1,544		(4	)		60			5,070		4,419		15
North America		3,737		4,192		3,691		2,655		3,639		(11	)		3			7,929		7,785		2

Total net revenue	$	7,314	$	8,233	$	6,213	$	5,353	$	6,332		(11	)		16		$	15,547	$	14,651		6

Loans (period-end): (b)
Asia/Pacific	$	6,211	$	5,472	$	5,924	$	5,595	$	5,697		14			9		$	6,211	$	5,697		9
Latin America/Caribbean		2,633		2,190		2,200		1,545		1,763		20			49			2,633		1,763		49
Europe/Middle East/Africa		15,370		14,059		13,961		12,781		12,959		9			19			15,370		12,959		19
North America		31,893		30,991		31,060		31,378		33,630		3			(5	)		31,893		33,630		(5	)

Total loans	$	56,107	$	52,712	$	53,145	$	51,299	$	54,049		6			4		$	56,107	$	54,049		4


(a)		Regional revenues are based primarily on the domicile of the client and/or location of the trading desk.

(b)		Includes retained loans based on the domicile of the customer. Excludes loans held-for-sale and loans at fair value.

Page 12


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS (in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	823		$	746		$	737		$	759		$	780			10	%		6	%	$	1,569		$	1,621			(3	)%
Asset management, administration and commissions		501			487			456			443			433			3			16			988			885			12
Mortgage fees and related income		1,100			(489	)		1,609			705			886		NM				24			611			1,541			(60	)
Credit card income		572			537			524			502			480			7			19			1,109			930			19
Other income		409			364			370			379			413			12			(1	)		773			767			1

Noninterest revenue		3,405			1,645			3,696			2,788			2,992			107			14			5,050			5,744			(12	)
Net interest income		4,571			4,630			4,829			4,858			4,817			(1	)		(5	)		9,201			9,841			(7	)

TOTAL NET REVENUE (a)		7,976			6,275			8,525			7,646			7,809			27			2			14,251			15,585			(9	)

Provision for credit losses		1,128			1,326			2,456			1,548			1,715			(15	)		(34	)		2,454			5,448			(55	)

NONINTEREST EXPENSE
Compensation expense		2,030			1,971			1,905			1,915			1,842			3			10			4,001			3,612			11
Noncompensation expense		3,547			3,231			2,851			2,533			2,369			10			50			6,778			4,771			42
Amortization of intangibles		60			60			68			69			70			—			(14	)		120			140			(14	)

TOTAL NONINTEREST EXPENSE		5,637			5,262			4,824			4,517			4,281			7			32			10,899			8,523			28


Income/(loss) before income tax expense/(benefit)		1,211			(313	)		1,245			1,581			1,813		NM				(33	)		898			1,614			(44	)
Income tax expense/(benefit)		629			(105	)		537			674			771		NM				(18	)		524			703			(25	)

NET INCOME/(LOSS)	$	582		$	(208	)	$	708		$	907		$	1,042		NM				(44	)	$	374		$	911			(59	)


FINANCIAL RATIOS
ROE		8	%		(3	)%		10	%		13	%		15	%								3	%		7	%
Overhead ratio		71			84			57			59			55									76			55
Overhead ratio excluding core deposit intangibles (b)		70			83			56			58			54									76			54

SELECTED BALANCE SHEET DATA (period-end)
Assets	$	349,182		$	355,394		$	366,841		$	367,675		$	375,329			(2	)		(7	)	$	349,182		$	375,329			(7	)
Loans:
Loans retained		301,926			308,827			316,725			323,481			330,329			(2	)		(9	)		301,926			330,329			(9	)
Loans held-for-sale and loans at fair value (c)		13,558			12,234			14,863			13,071			12,599			11			8			13,558			12,599			8

Total loans		315,484			321,061			331,588			336,552			342,928			(2	)		(8	)		315,484			342,928			(8	)
Deposits		379,376			380,494			370,819			364,186			359,974			—			5			379,376			359,974			5
Equity		28,000			28,000			28,000			28,000			28,000			—			—			28,000			28,000			—

SELECTED BALANCE SHEET DATA (average)
Assets		352,836			364,266			373,883			375,968			381,906			(3	)		(8	)		358,520			387,854			(8	)
Loans:
Loans retained		305,131			312,543			320,407			326,905			335,308			(2	)		(9	)		308,816			339,131			(9	)
Loans held-for-sale and loans at fair value (c)		14,613			17,519			18,883			15,683			14,426			(17	)		1			16,058			15,734			2

Total loans		319,744			330,062			339,290			342,588			349,734			(3	)		(9	)		324,874			354,865			(8	)
Deposits		379,848			372,634			367,920			362,559			362,010			2			5			376,261			359,486			5
Equity		28,000			28,000			28,000			28,000			28,000			—			—			28,000			28,000			—

Headcount		127,837			123,550			121,876			119,424			116,879			3			9			127,837			116,879			9


(a)		Total net revenue included tax-equivalent adjustments associated with tax-exempt loans to municipalities and other qualified entities of $2 million, $3 million, $1 million, $4 million and $5 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $5 million and $10 million for year-to-date 2011 and 2010, respectively.

(b)		Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Retail Banking’s CDI amortization expense related to prior business combination transactions of $60 million, $60 million, $68 million, $69 million and $69 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $120 million and $139 million for year-to-date 2011 and 2010, respectively.

(c)		Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $13.3 billion, $12.0 billion, $14.7 billion, $12.6 billion and $12.2 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively. Average balances of these loans totaled $14.5 billion, $17.4 billion, $18.7 billion, $15.3 billion and $12.5 billion for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $16.0 billion and $13.3 billion for year-to-date 2011 and 2010, respectively.

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JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	1,223		$	1,326		$	2,159		$	1,548		$	1,761			(8	)%		(31	)%	$	2,549		$	4,199			(39	)%
Nonaccrual loans:
Nonaccrual loans retained		8,273			8,499			8,768			9,801			10,457			(3	)		(21	)		8,273			10,457			(21	)
Nonaccrual loans held-for-sale and loans at fair value		142			150			145			166			176			(5	)		(19	)		142			176			(19	)

Total nonaccrual loans (a)(b)(c)		8,415			8,649			8,913			9,967			10,633			(3	)		(21	)		8,415			10,633			(21	)
Nonperforming assets (a)(b)(c)		9,406			9,905			10,266			11,421			11,907			(5	)		(21	)		9,406			11,907			(21	)
Allowance for loan losses		16,358			16,453			16,453			16,154			16,152			(1	)		1			16,358			16,152			1

Net charge-off rate (d)		1.61	%		1.72	%		2.67	%		1.88	%		2.11	%								1.66	%		2.50	%
Net charge-off rate excluding purchased credit-impaired (“PCI”) loans (d)(e)		2.08			2.23			3.47			2.44			2.75									2.16			3.26
Allowance for loan losses to ending loans retained (d)		5.42			5.33			5.19			4.99			4.89									5.42			4.89
Allowance for loan losses to ending loans retained excluding PCI loans (d)(e)		4.90			4.84			4.72			5.36			5.26									4.90			5.26
Allowance for loan losses to nonaccrual loans retained (a)(d)(e)		138			135			131			136			128									138			128
Nonaccrual loans to total loans		2.67			2.69			2.69			2.96			3.10									2.67			3.10
Nonaccrual loans to total loans excluding PCI loans (a)		3.41			3.46			3.44			3.81			4.00									3.41			4.00


(a)		Excludes PCI loans that were acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing.

(b)		Certain of these loans are classified as trading assets on the Consolidated Balance Sheets.

(c)		At June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.1 billion, $8.8 billion, $9.4 billion, $9.2 billion and $8.9 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.3 billion, $1.9 billion, $1.7 billion and $1.4 billion, respectively; and (3) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $558 million, $615 million, $625 million, $572 million and $447 million, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(d)		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.

(e)		Excludes the impact of PCI loans that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management’s estimate, as of that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $4.9 billion, $4.9 billion, $4.9 billion, $2.8 billion and $2.8 billion was recorded for these loans at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, which has also been excluded from the applicable ratios. To date, no charge-offs have been recorded for these loans.

Page 14


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
RETAIL BANKING
Noninterest revenue	$	1,887		$	1,756		$	1,715		$	1,691		$	1,684			7	%		12	%	$	3,643		$	3,386			8	%
Net interest income		2,707			2,659			2,693			2,745			2,712			2			—			5,366			5,347			—

Total net revenue		4,594			4,415			4,408			4,436			4,396			4			5			9,009			8,733			3
Provision for credit losses		42			119			73			175			168			(65	)		(75	)		161			359			(55	)
Noninterest expense		2,705			2,802			2,668			2,779			2,633			(3	)		3			5,507			5,210			6

Income before income tax expense		1,847			1,494			1,667			1,482			1,595			24			16			3,341			3,164			6

Net income	$	1,102		$	891		$	954		$	848		$	914			24			21		$	1,993		$	1,812			10


Overhead ratio		59	%		63	%		61	%		63	%		60	%								61	%		60	%
Overhead ratio excluding core deposit intangibles (a)		58			62			59			61			58									60			58

BUSINESS METRICS (in billions, except where otherwise noted)
Business banking origination volume (in millions)	$	1,573		$	1,425		$	1,435		$	1,126		$	1,222			10			29		$	2,998		$	2,127			41
End-of-period loans owned		17.1			17.0			16.8			16.6			16.6			1			3			17.1			16.6			3
End-of-period deposits:
Checking		136.3			137.4			131.7			124.2			123.5			(1	)		10			136.3			123.5			10
Savings		178.1			176.3			166.6			162.4			161.8			1			10			178.1			161.8			10
Time and other		41.9			44.0			45.9			48.9			50.5			(5	)		(17	)		41.9			50.5			(17	)

Total end-of-period deposits		356.3			357.7			344.2			335.5			335.8			—			6			356.3			335.8			6
Average loans owned		17.1			16.9			16.6			16.6			16.7			1			2			17.0			16.8			1
Average deposits:
Checking		136.5			132.0			126.6			123.5			123.6			3			10			134.3			121.7			10
Savings		176.8			171.1			164.7			162.2			162.8			3			9			174.0			160.7			8
Time and other		43.1			45.0			47.4			49.8			51.4			(4	)		(16	)		44.0			53.5			(18	)

Total average deposits		356.4			348.1			338.7			335.5			337.8			2			6			352.3			335.9			5
Deposit margin		2.87	%		2.92	%		3.00	%		3.08	%		3.05	%								2.89	%		3.03	%
Average assets	$	28.3		$	28.7		$	28.3		$	27.7		$	28.4			(1	)		—		$	28.5		$	28.7			(1	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs		117			119			173			175			168			(2	)		(30	)		236			359			(34	)
Net charge-off rate		2.74	%		2.86	%		4.13	%		4.18	%		4.04	%								2.80	%		4.31	%
Nonperforming assets	$	784		$	822		$	846		$	913		$	920			(5	)		(15	)	$	784		$	920			(15	)

RETAIL BRANCH BUSINESS METRICS
Investment sales volume		6,334			6,584			6,069			5,798			5,756			(4	)		10			12,918			11,712			10

Number of:
Branches		5,340			5,292			5,268			5,192			5,159			1			4			5,340			5,159			4
ATMs		16,443			16,265			16,145			15,815			15,654			1			5			16,443			15,654			5
Personal bankers		23,308			21,875			21,715			21,438			20,170			7			16			23,308			20,170			16
Sales specialists		7,630			7,336			7,196			7,123			6,785			4			12			7,630			6,785			12
Active online customers (in thousands)		18,085			18,318			17,744			17,167			16,584			(1	)		9			18,085			16,584			9
Checking accounts (in thousands)		26,266			26,622			27,252			27,014			26,351			(1	)		—			26,266			26,351			—


(a)		Retail Banking uses the overhead ratio (excluding the amortization of CDI), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Retail Banking’s CDI amortization expense related to prior business combination transactions of $60 million, $60 million, $68 million, $69 million and $69 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $120 million and $139 million for year-to-date 2011 and 2010, respectively.

Page 15


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
MORTGAGE BANKING, AUTO & OTHER CONSUMER LENDING
Noninterest revenue	$	1,498		$	(119	)	$	1,971		$	1,076		$	1,256		NM		%		19	%	$	1,379		$	2,274			(39	)%
Net interest income		667			815			817			809			792			(18	)		(16	)		1,482			1,685			(12	)

Total net revenue		2,165			696			2,788			1,885			2,048			211			6			2,861			3,959			(28	)
Provision for credit losses		132			131			46			176			175			1			(25	)		263			392			(33	)
Noninterest expense		2,561			2,105			1,743			1,348			1,243			22			106			4,666			2,489			87

Income/(loss) before income tax expense/(benefit)		(528	)		(1,540	)		999			361			630			66		NM				(2,068	)		1,078		NM

Net income/(loss)	$	(454	)	$	(937	)	$	577		$	207		$	364			52		NM			$	(1,391	)	$	621		NM


Overhead ratio		118	%		302	%		63	%		72	%		61	%								163	%		63	%

BUSINESS METRICS (in billions)
End-of-period loans owned:
Auto	$	46.8		$	47.4		$	48.4		$	48.2		$	47.5			(1	)		(1	)	$	46.8		$	47.5			(1	)
Prime mortgage, including option ARMs (a)		14.3			14.1			14.2			13.8			13.2			1			8			14.3			13.2			8
Student and other		14.0			14.3			14.4			14.6			15.1			(2	)		(7	)		14.0			15.1			(7	)

Total end-of-period loans owned		75.1			75.8			77.0			76.6			75.8			(1	)		(1	)		75.1			75.8			(1	)
Average loans owned:
Auto		47.0			47.7			48.3			47.7			47.5			(1	)		(1	)		47.3			47.2			—
Prime mortgage, including option ARMs (a)		14.1			14.0			13.9			13.6			13.6			1			4			14.1			13.0			8
Student and other		14.1			14.4			14.6			14.8			16.7			(2	)		(16	)		14.3			17.6			(19	)

Total average loans owned (b)		75.2			76.1			76.8			76.1			77.8			(1	)		(3	)		75.7			77.8			(3	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries):
Auto		19			47			71			67			58			(60	)		(67	)		66			160			(59	)
Prime mortgage, including option ARMs		(2	)		4			12			10			13		NM			NM				2			19			(89	)
Student and other		135			80			114			82			150			69			(10	)		215			214			—

Total net charge-offs		152			131			197			159			221			16			(31	)		283			393			(28	)

Net charge-off/(recovery) rate:
Auto		0.16	%		0.40	%		0.58	%		0.56	%		0.49	%								0.28	%		0.68	%
Prime mortgage, including option ARMs		(0.06	)		0.12			0.35			0.30			0.39									0.03			0.30
Student and other		3.84			2.25			3.10			2.21			4.04									3.03			2.80
Total net charge-off rate (b)		0.81			0.70			1.02			0.83			1.17									0.75			1.05

30+ day delinquency rate (c)(d)(e)		1.55			1.59			1.68			1.55			1.43									1.55			1.42
Nonperforming assets (f)(g)	$	893		$	931		$	996		$	1,052		$	1,013			(4	)		(12	)	$	893		$	1,013			(12	)


(a)		Predominantly represents prime loans repurchased from Government National Mortgage Association (“Ginnie Mae”) pools, which are insured by U.S. government agencies.

(b)		Total average loans owned includes loans held-for-sale of $76 million, $133 million, $192 million, $338 million and $1.9 billion for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $104 million and $2.4 billion for year-to-date 2011 and 2010, respectively. These amounts are excluded when calculating the net charge-off rate.

(c)		Total end-of-period loans owned includes loans held-for-sale of $221 million, $188 million, $154 million, $467 million and $434 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively. These amounts are excluded when calculating the 30+ day delinquency rate.

(d)		Excludes mortgage loans insured by U.S. government agencies of $10.1 billion, $9.5 billion, $10.3 billion, $10.2 billion and $9.8 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(e)		Excludes student loans insured by U.S. government agencies under the FFELP of $968 million, $1.0 billion, $1.1 billion, $1.0 billion and $988 million at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(f)		At June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.1 billion, $8.8 billion, $9.4 billion, $9.2 billion and $8.9 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.3 billion, $1.9 billion, $1.7 billion and $1.4 billion, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $558 million, $615 million, $625 million, $572 million and $447 million, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(g)		During the third quarter of 2010, $147 million of nonperforming assets pertaining to the second quarter of 2010 were reclassified from Real Estate Portfolios to Mortgage Banking, Auto & Other Consumer Lending.

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JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in billions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
MORTGAGE BANKING, AUTO & OTHER CONSUMER LENDING (continued)
Origination volume:
Mortgage origination volume by channel
Retail	$	20.7		$	21.0		$	22.9		$	19.2		$	15.3			(1	)%		35	%	$	41.7		$	26.7			56	%
Wholesale (a)		0.1			0.2			0.3			0.2			0.4			(50	)		(75	)		0.3			0.8			(63	)
Correspondent (a)		10.3			13.5			25.5			19.1			14.7			(24	)		(30	)		23.8			30.7			(22	)
CNT (negotiated transactions)		2.9			1.5			2.1			2.4			1.8			93			61			4.4			5.7			(23	)

Total mortgage origination volume		34.0			36.2			50.8			40.9			32.2			(6	)		6			70.2			63.9			10

Student		—			0.1			—			0.2			0.1		NM			NM				0.1			1.7			(94	)
Auto		5.4			4.8			4.8			6.1			5.8			13			(7	)		10.2			12.1			(16	)

Application volume:
Mortgage application volume by channel
Retail		33.6			31.3			32.4			34.6			27.8			7			21			64.9			48.1			35
Wholesale (a)		0.3			0.3			0.4			0.6			0.6			—			(50	)		0.6			1.4			(57	)
Correspondent (a)		14.9			13.6			24.9			30.7			23.5			10			(37	)		28.5			41.7			(32	)

Total mortgage application volume		48.8			45.2			57.7			65.9			51.9			8			(6	)		94.0			91.2			3


Average mortgage loans held-for-sale and loans at fair value (b)		14.6			17.5			18.9			15.6			12.6			(17	)		16			16.1			13.5			19
Average assets		124.4			128.4			130.3			125.8			123.2			(3	)		1			126.4			124.0			2
Repurchase reserve (ending)		3.2			3.2			3.0			3.0			2.0			—			60			3.2			2.0			60
Third-party mortgage loans serviced (ending)		940.8			955.0			967.5			1,012.7			1,055.2			(1	)		(11	)		940.8			1,055.2			(11	)
Third-party mortgage loans serviced (average)		947.0			958.7			981.7			1,028.6			1,063.7			(1	)		(11	)		952.9			1,070.1			(11	)
MSR net carrying value (ending)		12.2			13.1			13.6			10.3			11.8			(7	)		3			12.2			11.8			3
Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending)		1.30	%		1.37	%		1.41	%		1.02	%		1.12	%								1.30	%		1.12	%
Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average)		0.43			0.45			0.46			0.44			0.45									0.44			0.43
MSR revenue multiple (c)		3.02	x		3.04	x		3.07	x		2.32	x		2.49	x								2.95	x		2.60	x

SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions)
Net production revenue:
Production revenue	$	767		$	679		$	1,098		$	1,233		$	676			13			13		$	1,446		$	1,109			30
Repurchase losses		(223	)		(420	)		(349	)		(1,464	)		(667	)		47			67			(643	)		(1,099	)		41

Net production revenue		544			259			749			(231	)		9			110		NM				803			10		NM
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue		1,011			1,052			1,129			1,153			1,186			(4	)		(15	)		2,063			2,293			(10	)
Other changes in MSR asset fair value		(478	)		(563	)		(555	)		(604	)		(620	)		15			23			(1,041	)		(1,225	)		15

Total operating revenue		533			489			574			549			566			9			(6	)		1,022			1,068			(4	)
Risk management:
Changes in MSR asset fair value due to inputs or
assumptions in model		(960	)		(751	)		2,909			(1,497	)		(3,584	)		(28	)		73			(1,711	)		(3,680	)		54
Derivative valuation adjustments and other		983			(486	)		(2,623	)		1,884			3,895		NM				(75	)		497			4,143			(88	)

Total risk management		23			(1,237	)		286			387			311		NM				(93	)		(1,214	)		463		NM

Total net mortgage servicing revenue		556			(748	)		860			936			877		NM				(37	)		(192	)		1,531		NM

Mortgage fees and related income	$	1,100		$	(489	)	$	1,609		$	705		$	886		NM				24		$	611		$	1,541			(60	)


(a)		Includes rural housing loans sourced through brokers and correspondents, which are underwritten under U.S. Department of Agriculture guidelines.

(b)		Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. Average balances of these loans totaled $14.5 billion, $17.4 billion, $18.7 billion, $15.3 billion and $12.5 billion for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $16.0 billion and $13.3 billion for year-to-date 2011 and 2010, respectively.

(c)		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).

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JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	20		$	8		$	10		$	21		$	52			150	%		(62	)%	$	28		$	84			(67	)%
Net interest income		1,197			1,156			1,319			1,304			1,313			4			(9	)		2,353			2,809			(16	)

Total net revenue		1,217			1,164			1,329			1,325			1,365			5			(11	)		2,381			2,893			(18	)
Provision for credit losses		954			1,076			2,337			1,197			1,372			(11	)		(30	)		2,030			4,697			(57	)
Noninterest expense		371			355			413			390			405			5			(8	)		726			824			(12	)

Income/(loss) before income tax expense/(benefit)		(108	)		(267	)		(1,421	)		(262	)		(412	)		60			74			(375	)		(2,628	)		86

Net income/(loss)	$	(66	)	$	(162	)	$	(823	)	$	(148	)	$	(236	)		59			72		$	(228	)	$	(1,522	)		85


Overhead ratio		30	%		30	%		31	%		29	%		30	%								30	%		28	%

BUSINESS METRICS (in billions)
LOANS EXCLUDING PCI LOANS (a)
End-of-period loans owned:
Home equity	$	82.7		$	85.3		$	88.4		$	91.7		$	94.8			(3	)		(13	)	$	82.7		$	94.8			(13	)
Prime mortgage, including option ARMs		47.0			48.5			49.8			51.3			53.1			(3	)		(11	)		47.0			53.1			(11	)
Subprime mortgage		10.4			10.8			11.3			12.0			12.6			(4	)		(17	)		10.4			12.6			(17	)
Other		0.8			0.8			0.8			0.9			1.0			—			(20	)		0.8			1.0			(20	)

Total end-of-period loans owned		140.9			145.4			150.3			155.9			161.5			(3	)		(13	)		140.9			161.5			(13	)
Average loans owned:
Home equity		84.0			86.9			90.2			93.3			96.3			(3	)		(13	)		85.5			97.9			(13	)
Prime mortgage, including option ARMs		47.6			49.3			50.7			52.2			54.3			(3	)		(12	)		48.4			55.5			(13	)
Subprime mortgage		10.7			11.1			11.8			12.3			13.1			(4	)		(18	)		10.9			13.4			(19	)
Other		0.8			0.8			0.9			1.0			1.0			—			(20	)		0.8			1.0			(20	)

Total average loans owned		143.1			148.1			153.6			158.8			164.7			(3	)		(13	)		145.6			167.8			(13	)
PCI LOANS (a)
End-of-period loans owned:
Home equity		23.5			24.0			24.5			25.0			25.5			(2	)		(8	)		23.5			25.5			(8	)
Prime mortgage		16.2			16.7			17.3			17.9			18.5			(3	)		(12	)		16.2			18.5			(12	)
Subprime mortgage		5.2			5.3			5.4			5.5			5.6			(2	)		(7	)		5.2			5.6			(7	)
Option ARMs		24.1			24.8			25.6			26.4			27.3			(3	)		(12	)		24.1			27.3			(12	)

Total end-of-period loans owned		69.0			70.8			72.8			74.8			76.9			(3	)		(10	)		69.0			76.9			(10	)
Average loans owned:
Home equity		23.7			24.2			24.7			25.2			25.7			(2	)		(8	)		23.9			26.0			(8	)
Prime mortgage		16.5			17.0			17.6			18.2			18.8			(3	)		(12	)		16.7			19.1			(13	)
Subprime mortgage		5.2			5.3			5.4			5.6			5.8			(2	)		(10	)		5.3			5.8			(9	)
Option ARMs		24.4			25.1			25.9			26.7			27.7			(3	)		(12	)		24.8			28.2			(12	)

Total average loans owned		69.8			71.6			73.6			75.7			78.0			(3	)		(11	)		70.7			79.1			(11	)
TOTAL REAL ESTATE PORTFOLIOS
End-of-period loans owned:
Home equity		106.2			109.3			112.9			116.7			120.3			(3	)		(12	)		106.2			120.3			(12	)
Prime mortgage, including option ARMs		87.3			90.0			92.7			95.6			98.9			(3	)		(12	)		87.3			98.9			(12	)
Subprime mortgage		15.6			16.1			16.7			17.5			18.2			(3	)		(14	)		15.6			18.2			(14	)
Other		0.8			0.8			0.8			0.9			1.0			—			(20	)		0.8			1.0			(20	)

Total end-of-period loans owned		209.9			216.2			223.1			230.7			238.4			(3	)		(12	)		209.9			238.4			(12	)
Average loans owned:
Home equity		107.7			111.1			114.9			118.5			122.0			(3	)		(12	)		109.4			123.9			(12	)
Prime mortgage, including option ARMs		88.5			91.4			94.2			97.1			100.8			(3	)		(12	)		89.9			102.8			(13	)
Subprime mortgage		15.9			16.4			17.2			17.9			18.9			(3	)		(16	)		16.2			19.2			(16	)
Other		0.8			0.8			0.9			1.0			1.0			—			(20	)		0.8			1.0			(20	)

Total average loans owned		212.9			219.7			227.2			234.5			242.7			(3	)		(12	)		216.3			246.9			(12	)
Average assets		200.1			207.2			215.3			222.5			230.3			(3	)		(13	)		203.6			235.2			(13	)
Home equity origination volume		0.3			0.2			0.3			0.3			0.3			50			—			0.5			0.6			(17	)


(a)		PCI loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due.

Page 18


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
REAL ESTATE PORTFOLIOS (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding PCI loans (a)(b)
Home equity	$	592		$	720		$	792		$	730		$	796			(18	)%		(26	)%	$	1,312		$	1,922			(32	)%
Prime mortgage, including option ARMs		198			161			558			266			273			23			(27	)		359			749			(52	)
Subprime mortgage		156			186			429			206			282			(16	)		(45	)		342			739			(54	)
Other		8			9			10			12			21			(11	)		(62	)		17			37			(54	)

Total net charge-offs		954			1,076			1,789			1,214			1,372			(11	)		(30	)		2,030			3,447			(41	)
Net charge-off rate excluding PCI loans (a)(b)
Home equity		2.83	%		3.36	%		3.48	%		3.10	%		3.32	%								3.09	%		3.96	%
Prime mortgage, including option ARMs		1.67			1.32			4.37			2.02			2.02									1.50			2.72
Subprime mortgage		5.85			6.80			14.42			6.64			8.63									6.33			11.12
Other		4.01			4.56			4.41			4.76			8.42									4.29			7.46
Total net charge-off rate excluding PCI loans		2.67			2.95			4.62			3.03			3.34									2.81			4.14
Net charge-off rate — reported
Home equity		2.20			2.63			2.73			2.44			2.62									2.42			3.13
Prime mortgage, including option ARMs		0.90			0.71			2.35			1.09			1.09									0.81			1.47
Subprime mortgage		3.94			4.60			9.90			4.57			5.98									4.26			7.76
Other		4.01			4.56			4.41			4.76			8.42									4.29			7.46
Total net charge-off rate — reported		1.80			1.99			3.12			2.05			2.27									1.89			2.82

30+ day delinquency rate excluding PCI loans (c)		5.98			6.22			6.45			6.77			6.88									5.98			6.88
Allowance for loan losses	$	14,659		$	14,659		$	14,659		$	14,111		$	14,127			—			4		$	14,659		$	14,127			4
Nonperforming assets (d)(e)		7,729			8,152			8,424			9,456			9,974			(5	)		(23	)		7,729			9,974			(23	)
Allowance for loan losses to ending loans retained		6.98	%		6.78	%		6.57	%		6.12	%		5.93	%								6.98	%		5.93	%
Allowance for loan losses to ending loans retained excluding PCI loans (a)		6.90			6.68			6.47			7.25			7.01									6.90			7.01


(a)		Excludes the impact of PCI loans that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management’s estimate, as of that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $4.9 billion, $4.9 billion, $4.9 billion, $2.8 billion and $2.8 billion was recorded for these loans at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, which was also excluded from the applicable ratios. To date, no charge-offs have been recorded for these loans.

(b)		Net charge-offs and net charge-off rates for the fourth quarter of 2010 include the effect of $632 million of charge-offs related to an adjustment of the estimated net realizable value of the collateral underlying delinquent residential home loans. Excluding this adjustment, net charge-offs for the fourth quarter of 2010 were $725 million, $240 million and $182 million for the home equity, prime mortgage including option ARMs and subprime mortgage portfolios, respectively. Net charge-off rates excluding this adjustment and excluding PCI loans were 3.19%, 1.88% and 6.12% for the home equity, prime mortgage including option ARMs and subprime mortgage portfolios, respectively.

(c)		The delinquency rate for PCI loans was 26.20%, 27.36%, 28.20%, 28.07% and 27.91% at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.

(d)		Excludes PCI loans that were acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing.

(e)		During the third quarter of 2010, $147 million of nonperforming assets pertaining to the second quarter of 2010 were reclassified from Real Estate Portfolios to Mortgage Banking, Auto & Other Consumer Lending.

Page 19


JPMORGAN CHASE & CO. CARD SERVICES FINANCIAL HIGHLIGHTS (in millions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
INCOME STATEMENT (a)
REVENUE
Credit card income	$	1,123		$	898		$	928		$	864		$	908			25	%		24	%	$	2,021		$	1,721			17	%
All other income (b)		(107	)		(116	)		(76	)		(58	)		(47	)		8			(128	)		(223	)		(102	)		(119	)

Noninterest revenue		1,016			782			852			806			861			30			18			1,798			1,619			11
Net interest income		2,911			3,200			3,394			3,447			3,356			(9	)		(13	)		6,111			7,045			(13	)

TOTAL NET REVENUE		3,927			3,982			4,246			4,253			4,217			(1	)		(7	)		7,909			8,664			(9	)

Provision for credit losses		810			226			671			1,633			2,221			258			(64	)		1,036			5,733			(82	)

NONINTEREST EXPENSE
Compensation expense		355			364			318			316			327			(2	)		9			719			657			9
Noncompensation expense		1,163			1,085			1,082			1,023			986			7			18			2,248			1,935			16
Amortization of intangibles		104			106			114			106			123			(2	)		(15	)		210			246			(15	)

TOTAL NONINTEREST EXPENSE		1,622			1,555			1,514			1,445			1,436			4			13			3,177			2,838			12


Income before income tax expense		1,495			2,201			2,061			1,175			560			(32	)		167			3,696			93			NM
Income tax expense		584			858			762			440			217			(32	)		169			1,442			53			NM

NET INCOME	$	911		$	1,343		$	1,299		$	735		$	343			(32	)		166		$	2,254		$	40			NM


FINANCIAL RATIOS (a)
ROE		28	%		42	%		34	%		19	%		9	%								35	%		1	%
Overhead ratio		41			39			36			34			34									40			33
Percentage of average loans:
Noninterest revenue		3.26			2.39			2.49			2.28			2.36									2.82			2.16
Net interest income		9.34			9.79			9.93			9.76			9.20									9.57			9.41
Net revenue		12.60			12.18			12.42			12.05			11.56									12.39			11.57
Provision for credit losses		2.60			0.69			1.96			4.63			6.09									1.62			7.66
Risk adjusted margin (c)		10.00			11.49			10.46			7.42			5.47									10.76			3.91
Noninterest expense		5.20			4.76			4.43			4.09			3.94									4.98			3.79
Pretax income (“ROO”)		4.80			6.73			6.03			3.33			1.54									5.79			0.12
Net income		2.92			4.11			3.80			2.08			0.94									3.53			0.05

BUSINESS METRICS, EXCLUDING COMMERCIAL CARD (a)
Sales volume (in billions)	$	85.5		$	77.5		$	85.9		$	79.6		$	78.1			10			9		$	163.0		$	147.5			11
New accounts opened		2.0			2.6			3.4			2.7			2.7			(23	)		(26	)		4.6			5.2			(12	)
Open accounts (d)		65.4			91.9			90.7			89.0			88.9			(29	)		(26	)		65.4			88.9			(26	)

Merchant acquiring business
Bank card volume (in billions)	$	137.3		$	125.7		$	127.2		$	117.0		$	117.1			9			17		$	263.0		$	225.1			17
Total transactions (in billions)		5.9			5.6			5.6			5.2			5.0			5			18			11.5			9.7			19


(a)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to CS. There is no material impact on the financial data; prior-year periods were not revised. The commercial card portfolio is excluded from business metrics and supplemental information where noted.

(b)		Includes the impact of revenue sharing agreements with other JPMorgan Chase business segments.

(c)		Represents total net revenue less provision for credit losses.

(d)		Reflects the impact of portfolio sales in the second quarter of 2011.

Page 20


JPMORGAN CHASE & CO. CARD SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
SELECTED BALANCE SHEET DATA (period-end) (a)
Loans (b)	$	125,523		$	128,803		$	137,676		$	136,436		$	142,994			(3	)%		(12	)%	$	125,523		$	142,994			(12	)%
Equity		13,000			13,000			15,000			15,000			15,000			—			(13	)		13,000			15,000			(13	)

SELECTED BALANCE SHEET DATA (average) (a)
Total assets		132,443			138,113			138,443			141,029			146,816			(4	)		(10	)		135,262			151,864			(11	)
Loans (c)		125,038			132,537			135,585			140,059			146,302			(6	)		(15	)		128,767			151,020			(15	)
Equity		13,000			13,000			15,000			15,000			15,000			—			(13	)		13,000			15,000			(13	)

Headcount (d)		21,765			21,774			20,739			21,398			21,529			—			1			21,765			21,529			1

CREDIT QUALITY STATISTICS — RETAINED (a)
Net charge-offs	$	1,810		$	2,226		$	2,671		$	3,133		$	3,721			(19	)		(51	)	$	4,036		$	8,233			(51	)
Net charge-off rate (c)		5.82	%		6.97	%		7.85	%		8.87	%		10.20	%								6.40	%		10.99	%

Delinquency rates (b)
30+ day		2.98			3.57			4.14			4.57			4.96									2.98			4.96
90+ day		1.55			1.93			2.25			2.41			2.76									1.55			2.76

Allowance for loan losses	$	8,042		$	9,041		$	11,034		$	13,029		$	14,524			(11	)		(45	)	$	8,042		$	14,524			(45	)
Allowance for loan losses to period-end loans (b)		6.41	%		7.24	%		8.14	%		9.55	%		10.16	%								6.41	%		10.16	%

SUPPLEMENTAL INFORMATION (a)(e)

Chase, excluding Washington Mutual portfolio
Loans (period-end)	$	113,766		$	116,395		$	123,943		$	121,932		$	127,379			(2	)		(11	)	$	113,766		$	127,379			(11	)
Average loans		112,984			119,411			121,493			124,933			129,847			(5	)		(13	)		116,179			133,495			(13	)
Net interest income (f)		8.60	%		9.09	%		9.16	%		8.98	%		8.47	%								8.85	%		8.67	%
Net revenue (f)		12.01			11.57			11.78			11.33			10.91									11.79			10.91
Risk adjusted margin (f)(g)		8.71			10.28			10.26			6.76			4.21									9.51			3.30
Net charge-off rate		5.22			6.13			7.08			8.06			9.02									5.69			9.80
30+ day delinquency rate		2.71			3.22			3.66			4.13			4.48									2.71			4.48
90+ day delinquency rate		1.41			1.71			1.98			2.16			2.47									1.41			2.47

Chase, excluding Washington Mutual and Commercial Card portfolios
Loans (period-end)	$	112,366		$	115,016		$	123,943		$	121,932		$	127,379			(2	)		(12	)	$	112,366		$	127,379			(12	)
Average loans		111,641			118,145			121,493			124,933			129,847			(6	)		(14	)		114,874			133,495			(14	)
Net interest income (f)		8.77	%		9.25	%		9.16	%		8.98	%		8.47	%								9.02	%		8.67	%
Net revenue (f)		11.95			11.51			11.78			11.33			10.91									11.73			10.91
Risk adjusted margin (f)(g)		8.61			10.21			10.26			6.76			4.21									9.43			3.30
Net charge-off rate		5.28			6.20			7.08			8.06			9.02									5.75			9.80
30+ day delinquency rate		2.73			3.25			3.66			4.13			4.48									2.73			4.48
90+ day delinquency rate		1.42			1.73			1.98			2.16			2.47									1.42			2.47


(a)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to CS. There is no material impact on the financial data; prior-year periods were not revised. The commercial card portfolio is excluded from business metrics and supplemental information where noted.

(b)		Total period-end loans include loans held-for-sale of $4.0 billion and $2.2 billion at March 31, 2011 and December 31, 2010, respectively. There were no loans held-for-sale at June 30, 2011. No allowance for loan losses was recorded for these loans. Loans held-for-sale are excluded when calculating the allowance for loan losses to period-end loans and delinquency rates. The 30+ day delinquency rate including loans held-for-sale, which is a non-GAAP financial measure, was 3.55% and 4.07% at March 31, 2011 and December 31, 2010, respectively. The 90+ day delinquency rate including loans held-for-sale, which is a non-GAAP financial measure, was 1.92% and 2.22% at March 31, 2011 and December 31, 2010, respectively.

(c)		Total average loans include loans held-for-sale of $276 million, $3.0 billion and $586 million for the quarters ended June 30, 2011, March 31, 2011 and December 31, 2010, respectively, and $1.6 billion for year-to-date 2011. There were no loans held-for-sale for year-to-date 2010. These amounts are excluded when calculating the net charge-off rate. The net charge-off rate including loans held-for-sale, which is a non-GAAP financial measure, was 5.81%, 6.81% and 7.82% for the quarters ended June 30, 2011, March 31, 2011 and December 31, 2010, respectively, and 6.32% for year-to-date 2011.

(d)		Headcount includes 1,274 employees related to the transfer of the commercial card business from TSS to CS in the first quarter of 2011.

(e)		Supplemental information is provided for Chase, excluding Washington Mutual and Commercial Card portfolios and including loans held-for-sale, which are non-GAAP financial measures, to provide more meaningful measures that enable comparability with prior periods.

(f)		As a percentage of average loans.

(g)		Represents total net revenue less provision for credit losses.

Page 21


JPMORGAN CHASE & CO. COMMERCIAL BANKING FINANCIAL HIGHLIGHTS (in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	281		$	264		$	273		$	269		$	280			6	%		—	%	$	545		$	557			(2	)%
Asset management, administration and commissions		34			35			35			36			36			(3	)		(6	)		69			73			(5	)
All other income (a)		283			203			299			242			230			39			23			486			416			17

Noninterest revenue		598			502			607			547			546			19			10			1,100			1,046			5
Net interest income		1,029			1,014			1,004			980			940			1			9			2,043			1,856			10

TOTAL NET REVENUE (b)		1,627			1,516			1,611			1,527			1,486			7			9			3,143			2,902			8

Provision for credit losses		54			47			152			166			(235	)		15			NM			101			(21	)		NM

NONINTEREST EXPENSE
Compensation expense		219			223			208			210			196			(2	)		12			442			402			10
Noncompensation expense		336			332			342			341			337			1			—			668			661			1
Amortization of intangibles		8			8			8			9			9			—			(11	)		16			18			(11	)

TOTAL NONINTEREST EXPENSE		563			563			558			560			542			—			4			1,126			1,081			4


Income before income tax expense		1,010			906			901			801			1,179			11			(14	)		1,916			1,842			4
Income tax expense		403			360			371			330			486			12			(17	)		763			759			1

NET INCOME	$	607		$	546		$	530		$	471		$	693			11			(12	)	$	1,153		$	1,083			6

Revenue by product:
Lending (c)	$	880		$	837		$	749		$	693		$	649			5			36		$	1,717		$	1,307			31
Treasury services (c)		556			542			659			670			665			3			(16	)		1,098			1,303			(16	)
Investment banking		152			110			126			120			115			38			32			262			220			19
Other		39			27			77			44			57			44			(32	)		66			72			(8	)

Total Commercial Banking revenue	$	1,627		$	1,516		$	1,611		$	1,527		$	1,486			7			9		$	3,143		$	2,902			8


IB revenue, gross (d)	$	442		$	309		$	347		$	344		$	333			43			33		$	751		$	644			17

Revenue by client segment:
Middle Market Banking	$	789		$	755		$	781		$	766		$	767			5			3		$	1,544		$	1,513			2
Commercial Term Lending		286			286			301			256			237			—			21			572			466			23
Corporate Client Banking (e)		339			290			302			304			285			17			19			629			548			15
Real Estate Banking		109			88			117			118			125			24			(13	)		197			225			(12	)
Other		104			97			110			83			72			7			44			201			150			34

Total Commercial Banking revenue	$	1,627		$	1,516		$	1,611		$	1,527		$	1,486			7			9		$	3,143		$	2,902			8


FINANCIAL RATIOS
ROE		30	%		28	%		26	%		23	%		35	%								29	%		27	%
Overhead ratio		35			37			35			37			36									36			37


(a)		Commercial Banking (“CB”) client revenue from investment banking products and commercial card transactions is included in all other income.

(b)		Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities as well as tax-exempt income from municipal bond activity of $67 million, $65 million, $85 million, $59 million, and $49 million for quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $132 million and $94 million for year-to-date 2011 and 2010, respectively.

(c)		Effective January 1, 2011, product revenue from commercial card and standby letters of credit transactions is included in lending. For the quarters ending June 30, 2011 and March 31, 2011, the impact of the change was $114 million and $107 million, respectively, and $221 million for year-to-date 2011. In prior-year quarters, it was reported in treasury services.

(d)		Represents the total revenue related to investment banking products sold to CB clients.

(e)		Corporate Client Banking was known as Mid-Corporate Banking prior to January 1, 2011.

Page 22


JPMORGAN CHASE & CO. COMMERCIAL BANKING FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
SELECTED BALANCE SHEET DATA (period-end)
Loans:
Loans retained	$	102,122		$	99,334		$	97,900		$	97,738		$	95,090			3	%		7	%	$	102,122		$	95,090			7
Loans held-for-sale and loans at fair value		557			835			1,018			399			446			(33	)		25			557			446			25

Total loans		102,679			100,169			98,918			98,137			95,536			3			7			102,679			95,536			7

Equity		8,000			8,000			8,000			8,000			8,000			—			—			8,000			8,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	143,560		$	140,400		$	138,041		$	130,237		$	133,309			2			8		$	141,989		$	133,162			7
Loans:
Loans retained		100,857			98,829			97,823			96,657			95,521			2			6			99,849			95,917			4
Loans held-for-sale and loans at fair value		1,015			756			612			384			391			34			160			886			344			158

Total loans		101,872			99,585			98,435			97,041			95,912			2			6			100,735			96,261			5
Liability balances		162,769			156,200			147,534			137,853			136,770			4			19			159,503			134,966			18
Equity		8,000			8,000			8,000			8,000			8,000			—			—			8,000			8,000			—

Average loans by client segment:
Middle Market Banking	$	40,012		$	38,207		$	36,561		$	35,299		$	34,424			5			16		$	39,114		$	34,173			14
Commercial Term Lending		37,729			37,810			38,358			37,509			35,956			—			5			37,769			36,006			5
Corporate Client Banking (a)		13,062			12,374			11,771			11,807			11,875			6			10			12,720			12,065			5
Real Estate Banking		7,467			7,607			8,169			8,983			9,814			(2	)		(24	)		7,537			10,124			(26	)
Other		3,602			3,587			3,576			3,443			3,843			—			(6	)		3,595			3,893			(8	)

Total Commercial Banking loans	$	101,872		$	99,585		$	98,435		$	97,041		$	95,912			2			6		$	100,735		$	96,261			5


Headcount		5,140			4,941			4,881			4,805			4,808			4			7			5,140			4,808			7

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	40		$	31		$	286		$	218		$	176			29			(77	)	$	71		$	405			(82	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (b)		1,613			1,925			1,964			2,898			3,036			(16	)		(47	)		1,613			3,036			(47	)
Nonaccrual loans held-for-sale and loans at fair value		21			30			36			48			41			(30	)		(49	)		21			41			(49	)

Total nonaccrual loans		1,634			1,955			2,000			2,946			3,077			(16	)		(47	)		1,634			3,077			(47	)
Assets acquired in loan satisfactions		197			179			197			281			208			10			(5	)		197			208			(5	)

Total nonperforming assets		1,831			2,134			2,197			3,227			3,285			(14	)		(44	)		1,831			3,285			(44	)
Allowance for credit losses:
Allowance for loan losses		2,614			2,577			2,552			2,661			2,686			1			(3	)		2,614			2,686			(3	)
Allowance for lending-related commitments		187			206			209			241			267			(9	)		(30	)		187			267			(30	)

Total allowance for credit losses		2,801			2,783			2,761			2,902			2,953			1			(5	)		2,801			2,953			(5	)

Net charge-off rate		0.16	%		0.13	%		1.16	%		0.89	%		0.74	%								0.14	%		0.85	%
Allowance for loan losses to period-end loans retained		2.56			2.59			2.61			2.72			2.82									2.56			2.82
Allowance for loan losses to nonaccrual loans retained		162			134			130			92			88									162			88
Nonaccrual loans to total period-end loans		1.59			1.95			2.02			3.00			3.22									1.59			3.22


(a)		Corporate Client Banking was known as Mid-Corporate Banking prior to January 1, 2011.

(b)		Allowance for loan losses of $289 million, $360 million, $340 million, $535 million and $586 million was held against nonaccrual loans retained at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.

Page 23



JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES FINANCIAL HIGHLIGHTS (in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	314		$	303		$	314		$	318		$	313			4	%		—	%	$	617		$	624			(1	)%
Asset management, administration and commissions		726			695			689			644			705			4			3			1,421			1,364			4
All other income		143			139			209			210			209			3			(32	)		282			385			(27	)

Noninterest revenue		1,183			1,137			1,212			1,172			1,227			4			(4	)		2,320			2,373			(2	)
Net interest income		749			703			701			659			654			7			15			1,452			1,264			15

TOTAL NET REVENUE		1,932			1,840			1,913			1,831			1,881			5			3			3,772			3,637			4

Provision for credit losses		(2	)		4			10			(2	)		(16	)	NM				88			2			(55	)	NM
Credit allocation income/(expense) (a)		32			27			(30	)		(31	)		(30	)		19		NM				59			(60	)	NM

NONINTEREST EXPENSE
Compensation expense		719			715			679			701			697			1			3			1,434			1,354			6
Noncompensation expense		719			647			763			693			684			11			5			1,366			1,334			2
Amortization of intangibles		15			15			28			16			18			—			(17	)		30			36			(17	)

TOTAL NONINTEREST EXPENSE		1,453			1,377			1,470			1,410			1,399			6			4			2,830			2,724			4


Income before income tax expense		513			486			403			392			468			6			10			999			908			10
Income tax expense		180			170			146			141			176			6			2			350			337			4

NET INCOME	$	333		$	316		$	257		$	251		$	292			5			14		$	649		$	571			14


REVENUE BY BUSINESS
Treasury Services	$	930		$	891		$	953		$	937		$	926			4			—		$	1,821		$	1,808			1
Worldwide Securities Services		1,002			949			960			894			955			6			5			1,951			1,829			7

TOTAL NET REVENUE	$	1,932		$	1,840		$	1,913		$	1,831		$	1,881			5			3		$	3,772		$	3,637			4


REVENUE BY GEOGRAPHIC REGION (b)
Asia/Pacific	$	299		$	276		$	270		$	256		$	233			8			28		$	575		$	452			27
Latin America/Caribbean		80			76			91			50			71			5			13			156			116			34
Europe/Middle East/Africa		691			630			624			579			617			10			12			1,321			1,186			11
North America		862			858			928			946			960			—			(10	)		1,720			1,883			(9	)

TOTAL NET REVENUE	$	1,932		$	1,840		$	1,913		$	1,831		$	1,881			5			3		$	3,772		$	3,637			4


TRADE FINANCE LOANS BY GEOGRAPHIC REGION (period-end) (b)
Asia/Pacific	$	15,736		$	14,607		$	11,834		$	10,238		$	9,802			8			61		$	15,736		$	9,802			61
Latin America/Caribbean		4,553			4,014			3,628			3,357			3,008			13			51			4,553			3,008			51
Europe/Middle East/Africa		6,184			5,794			4,874			3,391			2,898			7			113			6,184			2,898			113
North America		1,000			1,084			820			820			693			(8	)		44			1,000			693			44

TOTAL TRADE FINANCE LOANS	$	27,473		$	25,499		$	21,156		$	17,806		$	16,401			8			68		$	27,473		$	16,401			68


FINANCIAL RATIOS
ROE		19	%		18	%		16	%		15	%		18	%								19	%		18	%
Overhead ratio		75			75			77			77			74									75			75
Pretax margin ratio		27			26			21			21			25									26			25

SELECTED BALANCE SHEET DATA (period-end)
Loans (c)	$	34,034		$	31,020		$	27,168		$	26,899		$	24,513			10			39		$	34,034		$	24,513			39
Equity		7,000			7,000			6,500			6,500			6,500			—			8			7,000			6,500			8

SELECTED BALANCE SHEET DATA (average)
Total assets	$	52,688		$	47,873		$	46,301		$	42,445		$	42,868			10			23		$	50,294		$	40,583			24
Loans (c)		33,069			29,290			26,941			24,337			22,137			13			49			31,190			20,865			49
Liability balances		302,858			265,720			256,661			242,517			246,690			14			23			284,392			247,294			15
Equity		7,000			7,000			6,500			6,500			6,500			—			8			7,000			6,500			8

Headcount		28,230			28,040			29,073			28,544			27,943			1			1			28,230			27,943			1


(a)		IB manages core credit exposures related to the GCB on behalf of IB and TSS. Effective January 1, 2011, IB and TSS share the economics related to the Firm’s GCB clients. Included within this allocation are net revenues, provision for credit losses, as well as expenses. Prior-year periods reflected a reimbursement to IB for a portion of the total costs of managing the credit portfolio. IB recognizes this credit allocation as a component of all other income.

(b)		Revenue and trade finance loans are based on TSS management’s view of the domicile of clients.

(c)		Loan balances include trade finance loans, wholesale overdrafts and commercial card. Effective January 1, 2011, the commercial card loan business (of approximately $1.2 billion) that was previously in TSS was transferred to CS. There is no material impact on the financial data; prior-year periods were not revised.

Page 24



JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted)

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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
TSS FIRMWIDE DISCLOSURES
TS revenue — reported	$	930		$	891		$	953		$	937		$	926			4	%		—	%	$	1,821		$	1,808			1	%
TS revenue reported in CB (a)		556			542			659			670			665			3			(16	)		1,098			1,303			(16	)
TS revenue reported in other lines of business		65			63			65			64			62			3			5			128			118			8

TS firmwide revenue (b)		1,551			1,496			1,677			1,671			1,653			4			(6	)		3,047			3,229			(6	)
Worldwide Securities Services revenue		1,002			949			960			894			955			6			5			1,951			1,829			7

TSS firmwide revenue (b)	$	2,553		$	2,445		$	2,637		$	2,565		$	2,608			4			(2	)	$	4,998		$	5,058			(1	)

TS firmwide liability balances (average) (c)	$	375,432		$	339,240		$	320,745		$	302,921		$	303,224			11			24		$	357,436		$	304,159			18
TSS firmwide liability balances (average) (c)		465,627			421,920			404,195			380,370			383,460			10			21			443,894			382,260			16

TSS FIRMWIDE FINANCIAL RATIOS
TS firmwide overhead ratio (a)(d)		59	%		56	%		54	%		55	%		54	%								58	%		55	%
TSS firmwide overhead ratio (a)(d)		67			67			66			65			64									67			65

FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)	$	16,945		$	16,619		$	16,120		$	15,863		$	14,857			2			14		$	16,945		$	14,857			14
Number of:
U.S.$ ACH transactions originated		959			992			995			978			970			(3	)		(1	)		1,951			1,919			2
Total U.S.$ clearing volume (in thousands)		32,274			30,971			32,144			30,779			30,531			4			6			63,245			59,200			7
International electronic funds transfer volume (in thousands) (e)		63,208			60,942			60,882			57,333			58,484			4			8			124,150			114,238			9
Wholesale check volume		608			532			525			531			526			14			16			1,140			1,004			14
Wholesale cards issued (in thousands) (f)		23,746			23,170			29,785			28,404			28,066			2			(15	)		23,746			28,066			(15	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	—		$	—		$	—		$	1		$	—			—			—		$	—		$	—			—
Nonaccrual loans		3			11			12			14			14			(73	)		(79	)		3			14			(79	)
Allowance for credit losses:
Allowance for loan losses		74			69			65			54			48			7			54			74			48			54
Allowance for lending-related commitments		41			48			51			52			68			(15	)		(40	)		41			68			(40	)

Total allowance for credit losses		115			117			116			106			116			(2	)		(1	)		115			116			(1	)

Net charge-off rate		—	%		—	%		—	%		0.02	%		—	%								—	%		—	%
Allowance for loan losses to period-end loans		0.22			0.22			0.24			0.20			0.20									0.22			0.20
Allowance for loan losses to nonaccrual loans	NM			NM			NM				386			343								NM				343
Nonaccrual loans to period-end loans		0.01			0.04			0.04			0.05			0.06									0.01			0.06


(a)		Effective January 1, 2011, certain CB revenues were excluded in the TS firmwide metrics; they are instead directly captured within CB’s lending revenue by product. For the quarters ended June 30, 2011 and March 31, 2011, the impact of this change was $114 million and $107 million, respectively, and $221 million for year-to-date 2011. In prior-year periods, these revenues were included in CB’s treasury services revenue by product.

(b)		TSS firmwide revenue includes foreign exchange (“FX”) revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of IB. However, some of the FX revenue associated with TSS customers who are FX customers of IB is not included in TS and TSS firmwide revenue. The total FX revenue generated was $165 million, $160 million, $181 million, $143 million and $175 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $325 million and $312 million for year-to-date 2011 and 2010, respectively.

(c)		Firmwide liability balances include liability balances recorded in CB.

(d)		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.

(e)		International electronic funds transfer includes non-U.S. dollar Automated Clearing House (“ACH”) and clearing volume.

(f)		Wholesale cards issued and outstanding include U.S. domestic commercial, stored value, prepaid and government electronic benefit card products. Effective January 1, 2011, the commercial card portfolio was transferred from TSS to CS.

Page 25



JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS (in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,818		$	1,707		$	1,846		$	1,498		$	1,522			7	%		19	%	$	3,525		$	3,030			16	%
All other income		321			313			386			282			177			3			81			634			443			43

Noninterest revenue		2,139			2,020			2,232			1,780			1,699			6			26			4,159			3,473			20
Net interest income		398			386			381			392			369			3			8			784			726			8

TOTAL NET REVENUE		2,537			2,406			2,613			2,172			2,068			5			23			4,943			4,199			18

Provision for credit losses		12			5			23			23			5			140			140			17			40			(58	)

NONINTEREST EXPENSE
Compensation expense		1,068			1,039			1,078			914			861			3			24			2,107			1,771			19
Noncompensation expense		704			599			679			557			527			18			34			1,303			1,041			25
Amortization of intangibles		22			22			20			17			17			—			29			44			35			26

TOTAL NONINTEREST EXPENSE		1,794			1,660			1,777			1,488			1,405			8			28			3,454			2,847			21


Income before income tax expense		731			741			813			661			658			(1	)		11			1,472			1,312			12
Income tax expense		292			275			306			241			267			6			9			567			529			7

NET INCOME	$	439		$	466		$	507		$	420		$	391			(6	)		12		$	905		$	783			16


REVENUE BY CLIENT SEGMENT
Private Banking	$	1,289		$	1,317		$	1,376		$	1,181		$	1,153			(2	)		12		$	2,606		$	2,303			13
Institutional		704			549			675			506			455			28			55			1,253			999			25
Retail		544			540			562			485			460			1			18			1,084			897			21

TOTAL NET REVENUE	$	2,537		$	2,406		$	2,613		$	2,172		$	2,068			5			23		$	4,943		$	4,199			18


FINANCIAL RATIOS
ROE		27	%		29	%		31	%		26	%		24	%								28	%		24	%
Overhead ratio		71			69			68			69			68									70			68
Pretax margin ratio		29			31			31			30			32									30			31

SELECTED BALANCE SHEET DATA (period-end)
Loans	$	51,747		$	46,454		$	44,084		$	41,408		$	38,744			11			34		$	51,747		$	38,744			34
Equity		6,500			6,500			6,500			6,500			6,500			—			—			6,500			6,500			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	74,206		$	68,918		$	69,290		$	64,911		$	63,426			8			17		$	71,577		$	62,978			14
Loans		48,837			44,948			42,296			39,417			37,407			9			31			46,903			37,007			27
Deposits		97,509			95,250			89,314			87,841			86,453			2			13			96,386			83,573			15
Equity		6,500			6,500			6,500			6,500			6,500			—			—			6,500			6,500			—

Headcount		17,963			17,203			16,918			16,510			16,019			4			12			17,963			16,019			12

Page 26



JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
BUSINESS METRICS
Number of:
Client advisors (a)		2,282			2,288			2,281			2,244			2,083			—	%		10	%		2,282			2,083			10	%
Retirement planning services participants (in thousands)		1,613			1,604			1,580			1,665			1,653			1			(2	)		1,613			1,653			(2	)
JPMorgan Securities brokers (a)		437			431			415			419			403			1			8			437			403			8
% of customer assets in 4 & 5 Star Funds (b)		50	%		46	%		49	%		42	%		43	%		9			16			50	%		43	%		16
% of AUM in 1^stand 2^nd quartiles: (c)
1 year		56			57			67			67			58			(2	)		(3	)		56			58			(3	)
3 years		71			70			72			65			67			1			6			71			67			6
5 years		76			77			80			74			78			(1	)		(3	)		76			78			(3	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	33		$	11		$	8		$	13		$	27			200			22		$	44		$	55			(20	)
Nonaccrual loans		252			254			375			294			309			(1	)		(18	)		252			309			(18	)
Allowance for credit losses:
Allowance for loan losses		222			257			267			257			250			(14	)		(11	)		222			250			(11	)
Allowance for lending-related commitments		9			4			4			3			3			125			200			9			3			200

Total allowance for credit losses		231			261			271			260			253			(11	)		(9	)		231			253			(9	)
Net charge-off rate		0.27	%		0.10	%		0.08	%		0.13	%		0.29	%								0.19	%		0.30	%
Allowance for loan losses to period-end loans		0.43			0.55			0.61			0.62			0.65									0.43			0.65
Allowance for loan losses to nonaccrual loans		88			101			71			87			81									88			81
Nonaccrual loans to period-end loans		0.49			0.55			0.85			0.71			0.80									0.49			0.80


(a)		Effective January 1, 2011, the methodology used to determine client advisors was revised, and the prior-year periods have been revised.

(b)		Derived from Morningstar for the U.S., the U.K., Luxembourg, France, Hong Kong and Taiwan; and Nomura for Japan.

(c)		Quartile ranking sourced from: Lipper for the U.S. and Taiwan; Morningstar for the U.K., Luxembourg, France and Hong Kong; and Nomura for Japan.

Page 27



JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions)


											June 30, 2011
											Change
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
ASSETS UNDER SUPERVISION (a)	2011		2011		2010		2010		2010		2011			2010
Assets by asset class
Liquidity	$	476	$	490	$	497	$	521	$	489		(3	)%		(3	)%
Fixed income		319		305		289		277		259		5			23
Equities and multi-asset		430		421		404		362		322		2			34
Alternatives		117		114		108		97		91		3			29

TOTAL ASSETS UNDER MANAGEMENT		1,342		1,330		1,298		1,257		1,161		1			16
Custody/brokerage/administration/deposits		582		578		542		513		479		1			22

TOTAL ASSETS UNDER SUPERVISION	$	1,924	$	1,908	$	1,840	$	1,770	$	1,640		1			17


Assets by client segment
Private Banking	$	291	$	293	$	284	$	276	$	258		(1	)		13
Institutional (b)		708		711		703		696		651		—			9
Retail (b)		343		326		311		285		252		5			36

TOTAL ASSETS UNDER MANAGEMENT	$	1,342	$	1,330	$	1,298	$	1,257	$	1,161		1			16


Private Banking	$	776	$	773	$	731	$	698	$	653		—			19
Institutional (b)		709		713		703		697		652		(1	)		9
Retail (b)		439		422		406		375		335		4			31

TOTAL ASSETS UNDER SUPERVISION	$	1,924	$	1,908	$	1,840	$	1,770	$	1,640		1			17


Mutual fund assets by asset class
Liquidity	$	421	$	436	$	446	$	466	$	440		(3	)		(4	)
Fixed income		105		99		92		88		79		6			33
Equities and multi-asset		176		173		169		151		133		2			32
Alternatives		9		8		7		7		8		13			13

TOTAL MUTUAL FUND ASSETS	$	711	$	716	$	714	$	712	$	660		(1	)		8


(a)		Excludes assets under management of American Century Companies, Inc. in which the Firm had a 40% ownership in the second and first quarters of 2011, 41% in the fourth and third quarters of 2010, and 42% in the second quarter of 2010.

(b)		In the second quarter of 2011, the client hierarchy used to determine asset classification was revised, and the prior-year periods have been revised.

Page 28



JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions)


																YEAR-TO-DATE
	2Q11			1Q11			4Q10			3Q10			2Q10			2011			2010
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,330		$	1,298		$	1,257		$	1,161		$	1,219		$	1,298		$	1,249
Net asset flows:
Liquidity		(16	)		(9	)		(25	)		27			(29	)		(25	)		(91	)
Fixed income		12			16			10			12			12			28			28
Equities, multi-asset and alternatives		7			11			13			(1	)		1			18			7
Market/performance/other impacts		9			14			43			58			(42	)		23			(32	)

Ending balance	$	1,342		$	1,330		$	1,298		$	1,257		$	1,161		$	1,342		$	1,161


Assets under supervision rollforward
Beginning balance	$	1,908		$	1,840		$	1,770		$	1,640		$	1,707		$	1,840		$	1,701
Net asset flows		12			31			1			41			(4	)		43			(14	)
Market/performance/other impacts		4			37			69			89			(63	)		41			(47	)

Ending balance	$	1,924		$	1,908		$	1,840		$	1,770		$	1,640		$	1,924		$	1,640

Page 29



JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions, except where otherwise noted)


	QUARTERLY TRENDS																YEAR-TO-DATE
											2Q11 Change										2011 Change
	2Q11		1Q11		4Q10		3Q10		2Q10		1Q11			2Q10			2011		2010		2010
INTERNATIONAL METRICS
Total net revenue: (in millions) (a)
Asia/Pacific	$	257	$	246	$	263	$	226	$	214		4	%		20	%	$	503	$	436		15	%
Latin America/Caribbean		251		165		168		125		124		52			102			416		248		68
Europe/Middle East/Africa		478		439		481		395		381		9			25			917		766		20
North America		1,551		1,556		1,701		1,426		1,349		—			15			3,107		2,749		13

Total net revenue	$	2,537	$	2,406	$	2,613	$	2,172	$	2,068		5			23		$	4,943	$	4,199		18

Assets under management:
Asia/Pacific	$	119	$	115	$	111	$	107	$	95		3			25		$	119	$	95		25
Latin America/Caribbean		37		35		35		27		24		6			54			37		24		54
Europe/Middle East/Africa		298		300		282		258		239		(1	)		25			298		239		25
North America		888		880		870		865		803		1			11			888		803		11

Total assets under management	$	1,342	$	1,330	$	1,298	$	1,257	$	1,161		1			16		$	1,342	$	1,161		16

Assets under supervision:
Asia/Pacific	$	161	$	155	$	147	$	139	$	127		4			27		$	161	$	127		27
Latin America/Caribbean		94		88		84		74		68		7			38			94		68		38
Europe/Middle East/Africa		353		353		331		307		282		—			25			353		282		25
North America		1,316		1,312		1,278		1,250		1,163		—			13			1,316		1,163		13

Total assets under supervision	$	1,924	$	1,908	$	1,840	$	1,770	$	1,640		1			17		$	1,924	$	1,640		17


(a)		Regional revenue is based on the domicile of clients.

Page 30


JPMORGAN CHASE & CO. CORPORATE/PRIVATE EQUITY FINANCIAL HIGHLIGHTS (in millions, except headcount data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Principal transactions	$	745		$	1,298		$	587		$	1,143		$	(69	)		(43	)%	NM		%	$	2,043		$	478			327	%
Securities gains		837			102			1,199			99			990		NM				(15	)		939			1,600			(41	)
All other income		265			78			(24	)		(29	)		182			240			46			343			306			12

Noninterest revenue		1,847			1,478			1,762			1,213			1,103			25			67			3,325			2,384			39
Net interest income		218			34			(131	)		371			747		NM				(71	)		252			1,823			(86	)

TOTAL NET REVENUE (a)		2,065			1,512			1,631			1,584			1,850			37			12			3,577			4,207			(15	)

Provision for credit losses		(9	)		(10	)		2			(3	)		(2	)		10			(350	)		(19	)		15		NM

NONINTEREST EXPENSE
Compensation expense		614			657			538			574			770			(7	)		(20	)		1,271			1,245			2
Noncompensation expense (b)		2,097			1,143			2,352			1,927			1,468			83			43			3,240			4,509			(28	)

Subtotal		2,711			1,800			2,890			2,501			2,238			51			21			4,511			5,754			(22	)
Net expense allocated to other businesses		(1,270	)		(1,238	)		(1,191	)		(1,227	)		(1,192	)		(3	)		(7	)		(2,508	)		(2,372	)		(6	)

TOTAL NONINTEREST EXPENSE		1,441			562			1,699			1,274			1,046			156			38			2,003			3,382			(41	)


Income/(loss) before income tax expense/(benefit)		633			960			(70	)		313			806			(34	)		(21	)		1,593			810			97
Income tax expense/(benefit) (c)		131			238			(99	)		(35	)		153			(45	)		(14	)		369			(71	)	NM

NET INCOME	$	502		$	722		$	29		$	348		$	653			(30	)		(23	)	$	1,224		$	881			39


MEMO:
TOTAL NET REVENUE
Private equity	$	796		$	699		$	355		$	721		$	48			14		NM			$	1,495		$	163		NM
Corporate		1,269			813			1,276			863			1,802			56			(30	)		2,082			4,044			(49	)

TOTAL NET REVENUE	$	2,065		$	1,512		$	1,631		$	1,584		$	1,850			37			12		$	3,577		$	4,207			(15	)


NET INCOME/(LOSS)
Private equity	$	444		$	383		$	178		$	344		$	11			16		NM			$	827		$	66		NM
Corporate		58			339			(149	)		4			642			(83	)		(91	)		397			815			(51	)

TOTAL NET INCOME	$	502		$	722		$	29		$	348		$	653			(30	)		(23	)	$	1,224		$	881			39


Headcount		21,444			20,927			20,030			19,756			19,482			2			10			21,444			19,482			10


(a)		Total net revenue included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $69 million, $64 million, $63 million, $58 million and $57 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $133 million and $105 million for year-to-date 2011 and 2010, respectively,

(b)		Includes litigation expense of $1.3 billion, $0.4 billion, $1.5 billion, $1.3 billion and $0.7 billion for the quarters ending June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $1.6 billion and $3.0 billion for year-to-date 2011 and 2010, respectively.

(c)		Income tax expense/(benefit) in the third quarter of 2010 includes tax benefits recognized upon the resolution of tax audits.

Page 31


JPMORGAN CHASE & CO. CORPORATE/PRIVATE EQUITY FINANCIAL HIGHLIGHTS, CONTINUED (in millions)


	QUARTERLY TRENDS																			YEAR-TO-DATE
														2Q11 Change												2011 Change
	2Q11			1Q11		4Q10			3Q10		2Q10			1Q11			2Q10			2011			2010			2010
SUPPLEMENTAL INFORMATION

TREASURY and CHIEF INVESTMENT OFFICE (“CIO”)
Securities gains (a)	$	837		$	102	$	1,199		$	99	$	989		NM		%		(15	)%	$	939		$	1,599			(41	)%
Investment securities portfolio (average)		335,543			313,319		322,218			321,428		320,578			7			5			324,492			325,553			—
Investment securities portfolio (ending)		318,237			328,013		310,801			334,140		305,288			(3	)		4			318,237			305,288			4
Mortgage loans (average)		12,731			11,418		10,117			9,174		8,539			11			49			12,078			8,352			45
Mortgage loans (ending)		13,243			12,171		10,739			9,550		8,900			9			49			13,243			8,900			49

PRIVATE EQUITY
Private equity gains/(losses)
Direct investments
Realized gains	$	1,219		$	171	$	1,039		$	179	$	78		NM			NM			$	1,390		$	191		NM
Unrealized gains/(losses) (b)		(726	)		370		(781	)		561		(7	)	NM			NM				(356	)		(82	)		(334	)

Total direct investments		493			541		258			740		71			(9	)	NM				1,034			109		NM
Third-party fund investments		323			186		129			10		4			74		NM				509			102			399

Total private equity gains/(losses) (c)	$	816		$	727	$	387		$	750	$	75			12		NM			$	1,543		$	211		NM


Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	670		$	731	$	875		$	1,152	$	873			(8	)		(23	)
Cost		595			649		732			985		901			(8	)		(34	)
Quoted public value		721			785		935			1,249		974			(8	)		(26	)
Privately-held direct securities
Carrying value		5,680			7,212		5,882			6,388		5,464			(21	)		4
Cost		6,891			7,731		6,887			6,646		6,507			(11	)		6
Third-party fund investments (d)
Carrying value		2,481			2,179		1,980			1,814		1,782			14			39
Cost		2,464			2,461		2,404			2,356		2,315			—			6

Total private equity portfolio
Carrying value	$	8,831		$	10,122	$	8,737		$	9,354	$	8,119			(13	)		9
Cost	$	9,950		$	10,841	$	10,023		$	9,987	$	9,723			(8	)		2


(a)		Reflects repositioning of the Corporate investment securities portfolio.

(b)		Unrealized gains/(losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.

(c)		Included in principal transactions revenue in the Consolidated Statements of Income.

(d)		Unfunded commitments to third-party private equity funds were $0.9 billion, $0.9 billion, $1.0 billion, $1.1 billion and $1.2 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.

Page 32


JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION (in millions)
CREDIT-RELATED INFORMATION (in millions)


											June 30, 2011
											Change
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
	2011		2011		2010		2010		2010		2011			2010
CREDIT EXPOSURE
Wholesale
Loans retained	$	244,224	$	229,648	$	222,510	$	217,582	$	212,987		6	%		15	%
Loans held-for-sale and loans at fair value		4,599		6,359		5,123		3,015		3,839		(28	)		20

Total wholesale loans (a)(b)		248,823		236,007		227,633		220,597		216,826		5			15
Consumer, excluding credit card
Loans, excluding PCI loans and held-for sale loans
Home equity		82,751		85,253		88,385		91,728		94,761		(3	)		(13	)
Prime mortgage, including option ARMs		74,276		74,682		74,539		74,205		75,023		(1	)		(1	)
Subprime mortgage		10,441		10,841		11,287		12,009		12,597		(4	)		(17	)
Auto		46,796		47,411		48,367		48,186		47,548		(1	)		(2	)
Business banking		17,141		16,957		16,812		16,568		16,604		1			3
Student and other		14,770		15,089		15,311		15,583		15,795		(2	)		(6	)

Total loans, excluding PCI loans and loans held-for-sale		246,175		250,233		254,701		258,279		262,328		(2	)		(6	)
Loans — PCI: (c)
Home equity		23,535		23,973		24,459		24,982		25,471		(2	)		(8	)
Prime mortgage		16,200		16,725		17,322		17,904		18,512		(3	)		(12	)
Subprime mortgage		5,187		5,276		5,398		5,496		5,662		(2	)		(8	)
Option ARMs		24,072		24,791		25,584		26,370		27,256		(3	)		(12	)

Total loans — PCI		68,994		70,765		72,763		74,752		76,901		(3	)		(10	)
Total loans — retained		315,169		320,998		327,464		333,031		339,229		(2	)		(7	)
Loans held-for-sale (d)		221		188		154		467		434		18			(49	)

Total consumer, excluding credit card loans		315,390		321,186		327,618		333,498		339,663		(2	)		(7	)


Credit card
Loans retained		125,523		124,791		135,524		136,436		142,994		1			(12	)
Loans held-for-sale		—		4,012		2,152		—		—		NM			—

Total credit card (b)		125,523		128,803		137,676		136,436		142,994		(3	)		(12	)

Total consumer loans (e)		440,913		449,989		465,294		469,934		482,657		(2	)		(9	)

Total loans		689,736		685,996		692,927		690,531		699,483		1			(1	)

Derivative receivables		77,383		78,744		80,481		97,293		80,215		(2	)		(4	)
Receivables from customers and interests in purchased receivables (f)		32,678		38,230		32,932		26,025		24,802		(15	)		32

Total credit-related assets		110,061		116,974		113,413		123,318		105,017		(6	)		5
Wholesale lending-related commitments		365,689		355,561		346,079		338,612		324,552		3			13

TOTAL	$	1,165,486	$	1,158,531	$	1,152,419	$	1,152,461	$	1,129,052		1			3

Memo: Total by category
Total wholesale exposure (g)	$	724,573	$	708,542	$	687,125	$	682,527	$	646,395		2			12
Total consumer loans (h)		440,913		449,989		465,294		469,934		482,657		(2	)		(9	)

Total	$	1,165,486	$	1,158,531	$	1,152,419	$	1,152,461	$	1,129,052		1			3


(a)		Includes IB, CB, TSS, AM and Corporate/Private Equity.

(b)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to CS. There is no material impact on the financial data; prior-year periods were not revised.

(c)		PCI loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the underlying loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due.

(d)		Included prime mortgages of $221 million, $188 million, $154 million, $428 million and $185 million at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and student loans of $39 million and $249 million at September 30, 2010 and June 30, 2010, respectively (all other periods presented were zero).

(e)		Includes RFS, CS and residential real estate loans reported in Corporate/Private Equity.

(f)		Receivables from customers represent primarily margin loans to prime and retail brokerage customers, which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.

(g)		Primarily represents total wholesale loans, wholesale lending-related commitments, derivative receivables and receivables from customers.

(h)		Represents total consumer loans and excludes consumer lending-related commitments.

Page 33


JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data)


																June 30, 2011
																Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2011			2011			2010			2010			2010			2011			2010
NONPERFORMING ASSETS AND RATIOS
Wholesale
Loans retained	$	3,362		$	4,578		$	5,510		$	5,231		$	5,285			(27	)%		(36	)%
Loans held-for-sale and loans at fair value		214			289			496			409			375			(26	)		(43	)

Total wholesale loans		3,576			4,867			6,006			5,640			5,660			(27	)		(37	)


Consumer, excluding credit card
Home equity		1,308			1,263			1,263			1,251			1,211			4			8
Prime mortgage, including option ARMs		4,024			4,166			4,320			4,857			5,062			(3	)		(21	)
Subprime mortgage		2,058			2,106			2,210			2,649			3,115			(2	)		(34	)
Auto		111			120			141			145			155			(8	)		(28	)
Business banking		770			810			832			895			905			(5	)		(15	)
Student and other		79			107			67			64			68			(26	)		16

Total consumer, excluding credit card		8,350			8,572			8,833			9,861			10,516			(3	)		(21	)
Total credit card		2			2			2			2			3			—			(33	)
Total consumer nonaccrual loans (a)(b)		8,352			8,574			8,835			9,863			10,519			(3	)		(21	)

Total nonaccrual loans		11,928			13,441			14,841			15,503			16,179			(11	)		(26	)


Derivative receivables		22			21			34			255			315			5			(93	)
Assets acquired in loan satisfactions		1,290			1,524			1,682			1,898			1,662			(15	)		(22	)

Total nonperforming assets (a)		13,240			14,986			16,557			17,656			18,156			(12	)		(27	)
Wholesale lending-related commitments (c)		793			895			1,005			1,344			1,195			(11	)		(34	)

Total (a)	$	14,033		$	15,881		$	17,562		$	19,000		$	19,351			(12	)		(27	)


Total nonaccrual loans to total loans		1.73	%		1.96	%		2.14	%		2.25	%		2.31	%
Total wholesale nonaccrual loans to total wholesale loans		1.44			2.06			2.64			2.56			2.61
Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans		2.65			2.67			2.70			2.96			3.10

NONPERFORMING ASSETS BY LOB
Investment Bank	$	1,788		$	2,741		$	3,770		$	2,789		$	2,726			(35	)		(34	)
Retail Financial Services (b)		9,264			9,755			10,121			11,255			11,731			(5	)		(21	)
Card Services		2			2			2			2			3			—			(33	)
Commercial Banking		1,831			2,134			2,197			3,227			3,285			(14	)		(44	)
Treasury & Securities Services		3			11			12			14			14			(73	)		(79	)
Asset Management		264			263			382			299			337			—			(22	)
Corporate/Private Equity (d)		88			80			73			70			60			10			47

TOTAL	$	13,240		$	14,986		$	16,557		$	17,656		$	18,156			(12	)		(27	)


(a)		At June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.1 billion, $8.8 billion, $9.4 billion, $9.2 billion and $8.9 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.3 billion, $1.9 billion, $1.7 billion and $1.4 billion, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $558 million, $615 million, $625 million, $572 million and $447 million, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

(b)		Excludes PCI loans acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing. Also excludes loans held-for-sale and loans at fair value.

(c)		The amounts in nonperforming represent unfunded commitments that are risk rated as nonaccrual.

(d)		Predominantly relates to retained prime mortgage loans.

Page 34


JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
GROSS CHARGE-OFFS
Wholesale loans	$	134		$	253		$	414		$	297		$	264			(47)	%		(49	)%	$	387		$	1,278			(70	)%
Consumer loans, excluding credit card		1,357			1,460			2,277			1,677			1,874			(7	)		(28	)		2,817			4,429			(36	)
Credit card loans		2,131			2,631			2,980			3,485			4,063			(19	)		(48	)		4,762			8,945			(47	)

Total loans	$	3,622		$	4,344		$	5,671		$	5,459		$	6,201			(17	)		(42	)	$	7,966		$	14,652			(46	)


RECOVERIES
Wholesale loans	$	54		$	88		$	143		$	31		$	33			(39	)		64		$	142		$	88			61
Consumer loans, excluding credit card		144			131			115			131			112			10			29			275			228			21
Credit card loans		321			405			309			352			342			(21	)		(6	)		726			712			2

Total loans	$	519		$	624		$	567		$	514		$	487			(17	)		7		$	1,143		$	1,028			11


NET CHARGE-OFFS
Wholesale loans	$	80		$	165		$	271		$	266		$	231			(52	)		(65	)	$	245		$	1,190			(79	)
Consumer loans, excluding credit card		1,213			1,329			2,162	(b)		1,546			1,762			(9	)		(31	)		2,542			4,201			(39	)
Credit card loans		1,810			2,226			2,671			3,133			3,721			(19	)		(51	)		4,036			8,233			(51	)

Total loans	$	3,103		$	3,720		$	5,104	(b)	$	4,945		$	5,714			(17	)		(46	)	$	6,823		$	13,624			(50	)


NET CHARGE-OFF RATES
Wholesale retained loans		0.14	%		0.30	%		0.49	%		0.49	%		0.44	%								0.21	%		1.14	%
Consumer retained loans, excluding credit card		1.53			1.66			2.60	(b)		1.83			2.06									1.60			2.44
Credit card retained loans		5.82			6.97			7.85			8.87			10.20									6.40			10.99
Total retained loans		1.83			2.22			2.95	(b)		2.84			3.28									2.02			3.88
Consumer retained loans, excluding credit card and PCI loans (a)		1.96			2.14			3.34	(b)		2.36			2.66									2.05			3.16
Consumer retained loans, excluding PCI loans (a)		3.25			3.77			4.89			4.64			5.34									3.52			5.98
Total retained loans, excluding PCI loans (a)		2.04			2.48			3.31	(b)		3.19			3.69									2.26			4.36

Memo: Average Retained Loans
Wholesale loans	$	237,511		$	226,544		$	219,750		$	213,979		$	209,016			5			14		$	232,058		$	210,300			10
Consumer retained loans, excluding credit card		317,862			323,961			330,524			336,078			343,847			(2	)		(8	)		320,894			347,483			(8	)
Credit card retained loans		124,762			129,535			134,999			140,059			146,302			(4	)		(15	)		127,136			151,020			(16	)

Total average retained loans	$	680,135		$	680,040		$	685,273		$	690,116		$	699,165			—			(3	)	$	680,088		$	708,803			(4	)


Consumer retained loans, excluding credit card and PCI loans (a)	$	248,028		$	252,403		$	256,884		$	260,394		$	265,818			(2	)		(7	)	$	250,203		$	268,365			(7	)
Consumer retained loans, excluding PCI loans (a)		372,790			381,938			391,883			400,453			412,120			(2	)		(10	)		377,339			419,384			(10	)
Total retained loans, excluding PCI loans (a)		610,246			608,432			611,572			614,346			621,035			—			(2	)		609,344			629,574			(3	)


(a)		Charge-offs are not recorded on PCI loans until actual losses exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. To date, no charge-offs have been recorded for these loans.

(b)		Net charge-offs and net charge-off rates for the fourth quarter of 2010 include the effect of $632 million of charge-offs related to an adjustment of the estimated net realizable value of the collateral underlying delinquent residential home loans. Excluding this adjustment, net charge-offs for the fourth quarter of 2010 were $1.5 billion for total consumer, excluding credit card loans, and $4.5 billion for total loans. Net charge-off rates excluding this adjustment were 1.84% for total consumer, excluding credit card, 2.59% for total retained loans, 2.36% for total consumer, excluding credit card and PCI loans, and 2.90% for total retained loans, excluding PCI loans.

Page 35


JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED (in millions)
CREDIT-RELATED INFORMATION, CONTINUED (in millions)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	29,750		$	32,266		$	34,161		$	35,836		$	38,186			(8)	%		(22	)%	$	32,266		$	31,602			2	%
Cumulative effect of change in accounting principles (a)		—			—			—			—			—			—			—			—			7,494		NM
Net charge-offs		3,103			3,720			5,104			4,945			5,714			(17	)		(46	)		6,823			13,624			(50)
Provision for loan losses		1,872			1,196			3,207			3,244			3,380			57			(45	)		3,068			10,371			(70)
Other		1			8			2			26			(16	)		(88	)	NM				9			(7	)	NM

Ending balance	$	28,520		$	29,750		$	32,266		$	34,161		$	35,836			(4	)		(20	)	$	28,520		$	35,836			(20)


ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	688		$	717		$	873		$	912		$	940			(4	)		(27	)	$	717		$	939			(24)
Cumulative effect of change in accounting principles (a)		—			—			—			—			—			—			—			—			(18	)	NM
Provision for lending-related commitments		(62	)		(27	)		(164	)		(21	)		(17	)		(130	)		(265	)		(89	)		2		NM
Other		—			(2	)		8			(18	)		(11	)	NM			NM				(2	)		(11	)		82

Ending balance	$	626		$	688		$	717		$	873		$	912			(9	)		(31	)	$	626		$	912			(31)


ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,178		$	1,330		$	1,863		$	1,976		$	2,149			(11	)		(45	)
Retail Financial Services		16,358			16,453			16,453			16,154			16,152			(1	)		1
Card Services		8,042			9,041			11,034			13,029			14,524			(11	)		(45	)
Commercial Banking		2,614			2,577			2,552			2,661			2,686			1			(3	)
Treasury & Securities Services		74			69			65			54			48			7			54
Asset Management		222			257			267			257			250			(14	)		(11	)
Corporate/Private Equity		32			23			32			30			27			39			19

Total	$	28,520		$	29,750		$	32,266		$	34,161		$	35,836			(4	)		(20	)


(a)		Effective January 1, 2010, the Firm adopted accounting guidance related to VIEs. Upon the adoption of the guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts, its Firm-administered multi-seller conduits and certain other consumer loan securitization entities, primarily mortgage-related. As a result of the consolidation, $7.5 billion of allowance for loan losses were recorded on balance sheet with the consolidation of these entities.

Page 36


JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data)


	QUARTERLY TRENDS
																2Q11 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset specific	$	749		$	1,030		$	1,574		$	1,246		$	1,324			(27)	%		(43	)%
Formula-based		3,342			3,204			3,187			3,717			3,824			4			(13	)

Total wholesale		4,091			4,234			4,761			4,963			5,148			(3	)		(21	)

Consumer, excluding credit card
Asset specific (a)(b)		1,049			1,067			1,075			1,088			1,091			(2	)		(4	)
Formula-based (b)		10,397			10,467			10,455			12,270			12,262			(1	)		(15	)
PCI		4,941			4,941			4,941			2,811			2,811			—			76

Total consumer, excluding credit card		16,387			16,475			16,471			16,169			16,164			(1	)		1

Credit card
Asset specific (b)		3,451			3,819			4,069			4,573			4,846			(10	)		(29	)
Formula-based (b)		4,591			5,222			6,965			8,456			9,678			(12	)		(53	)

Total credit card		8,042			9,041			11,034			13,029			14,524			(11	)		(45	)

Total consumer		24,429			25,516			27,505			29,198			30,688			(4	)		(20	)

Total allowance for loan losses		28,520			29,750			32,266			34,161			35,836			(4	)		(20	)
Allowance for lending-related commitments		626			688			717			873			912			(9	)		(31	)

Total allowance for credit losses	$	29,146		$	30,438		$	32,983		$	35,034		$	36,748			(4	)		(21	)


CREDIT RATIOS
Wholesale allowance to total wholesale retained loans		1.68	%		1.84	%		2.14	%		2.28	%		2.42	%
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		5.20			5.13			5.03			4.86			4.76
Credit card allowance to total credit card retained loans		6.41			7.24			8.14			9.55			10.16
Allowance to total retained loans		4.16			4.40			4.71			4.97			5.15
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (c)		196			192			186			164			154
Allowance, excluding credit card allowance, to retained non- accrual loans, excluding credit card nonaccrual loans (c)		175			157			148			140			135
Allowance to total retained nonaccrual loans		243			226			225			226			227

CREDIT RATIOS excluding PCI loans (d)
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		4.65			4.61			4.53			5.17			5.09
Allowance to total retained loans		3.83			4.10			4.46			5.12			5.34
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (c)		137			135			131			135			127
Allowance, excluding credit card allowance to retained non- accrual loans, excluding credit card nonaccrual loans (c)		133			120			114			121			117
Allowance to total retained nonaccrual loans		201			189			190			208			209


(a)		The asset-specific consumer, excluding credit card allowance for loan losses, includes troubled debt restructuring reserves of $962 million, $970 million, $985 million, $980 million and $946 million at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.

(b)		At December 31, 2010, the Firm’s allowance for loan losses on all impaired credit card loans was reclassified to the asset-specific allowance. This reclassification had no incremental impact on the Firm’s allowance for loan losses. Prior periods have been revised to reflect the current presentation.

(c)		The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Under guidance issued by the FFIEC, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

(d)		Excludes the impact of PCI loans that were acquired as part of the Washington Mutual transaction.

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JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED (in millions)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	(142	)	$	(409	)	$	(140	)	$	(158	)	$	(418	)		65	%		66	%	$	(551	)	$	(895	)		38	%
Commercial Banking		73			51			184			192			(143	)		43		NM				124			61			103
Treasury & Securities Services		5			7			11			6			(8	)		(29	)		NM			12			(39	)		NM
Asset Management		7			5			22			23			15			40			(53	)		12			46			(74	)
Corporate/Private Equity		2			(13	)		—			(1	)		(1	)		NM			NM			(11	)		15			NM

Total wholesale		(55	)		(359	)		77			62			(555	)		85			90			(414	)		(812	)		49

Retail Financial Services		1,128			1,326			2,457			1,551			1,715			(15	)		(34	)		2,454			5,450			(55	)
Corporate/Private Equity		(11	)		3			2			(2	)		(1	)		NM			NM			(8	)		—			NM

Total consumer, excluding credit card		1,117			1,329			2,459			1,549			1,714			(16	)		(35	)		2,446			5,450			(55	)
Card Services		810			226			671			1,633			2,221			258			(64	)		1,036			5,733			(82	)

Total consumer		1,927			1,555			3,130			3,182			3,935			24			(51	)		3,482			11,183			(69	)

Total provision for loan losses	$	1,872		$	1,196		$	3,207		$	3,244		$	3,380			57			(45	)	$	3,068		$	10,371			(70	)


LENDING-RELATED COMMITMENTS
Investment Bank	$	(41	)	$	(20	)	$	(131	)	$	16		$	93			(105	)		NM		$	(61	)	$	108			NM
Commercial Banking		(19	)		(4	)		(32	)		(26	)		(92	)		(375	)		79			(23	)		(82	)		72
Treasury & Securities Services		(7	)		(3	)		(1	)		(8	)		(8	)		(133	)		13			(10	)		(16	)		38
Asset Management		5			—			1			—			(10	)		NM			NM			5			(6	)		NM
Corporate/Private Equity		—			—			—			—			—			—			—			—			—			—

Total wholesale		(62	)		(27	)		(163	)		(18	)		(17	)		(130	)		(265	)		(89	)		4			NM

Retail Financial Services		—			—			(1	)		(3	)		—			—			—			—			(2	)		NM
Corporate/Private Equity		—			—			—			—			—			—			—			—			—			—

Total consumer, excluding credit card		—			—			(1	)		(3	)		—			—			—			—			(2	)		NM
Card Services		—			—			—			—			—			—			—			—			—			—

Total consumer		—			—			(1	)		(3	)		—			—			—			—			(2	)		NM

Total provision for lending-related commitments	$	(62	)	$	(27	)	$	(164	)	$	(21	)	$	(17	)		(130	)		(265	)	$	(89	)	$	2			NM


TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	(183	)	$	(429	)	$	(271	)	$	(142	)	$	(325	)		57			44		$	(612	)	$	(787	)		22
Commercial Banking		54			47			152			166			(235	)		15			NM			101			(21	)		NM
Treasury & Securities Services		(2	)		4			10			(2	)		(16	)		NM			88			2			(55	)		NM
Asset Management		12			5			23			23			5			140			140			17			40			(58	)
Corporate/Private Equity		2			(13	)		—			(1	)		(1	)		NM			NM			(11	)		15			NM

Total wholesale		(117	)		(386	)		(86	)		44			(572	)		70			80			(503	)		(808	)		38

Retail Financial Services		1,128			1,326			2,456			1,548			1,715			(15	)		(34	)		2,454			5,448			(55	)
Corporate/Private Equity		(11	)		3			2			(2	)		(1	)		NM			NM			(8	)		—			NM

Total consumer, excluding credit card		1,117			1,329			2,458			1,546			1,714			(16	)		(35	)		2,446			5,448			(55	)
Card Services		810			226			671			1,633			2,221			258			(64	)		1,036			5,733			(82	)

Total consumer		1,927			1,555			3,129			3,179			3,935			24			(51	)		3,482			11,181			(69	)

Total provision for credit losses	$	1,810		$	1,169		$	3,043		$	3,223		$	3,363			55			(46	)	$	2,979		$	10,373			(71	)

Page 38



JPMORGAN CHASE & CO. MARKET RISK-RELATED INFORMATION (in millions)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
95% CONFIDENCE LEVEL- AVERAGE IB TRADING VAR, CREDIT PORTFOLIO VAR AND OTHER VAR
IB VaR by risk type:
Fixed income	$	45		$	49		$	53		$	72		$	64			(8	)%		(30	)%	$	47		$	66			(29	)%
Foreign exchange		9			11			10			9			10			(18	)		(10	)		10			12			(17	)
Equities		25			29			23			21			20			(14	)		25			27			22			23
Commodities and other		16			13			14			13			20			23			(20	)		15			18			(17	)
Diversification benefit to IB trading VaR (a)		(37	)		(38	)		(38	)		(38	)		(42	)		3			12			(38	)		(46	)		17

IB Trading VaR (b)		58			64			62			77			72			(9	)		(19	)		61			72			(15	)

Credit portfolio VaR (c)		27			26			26			30			27			4			—			27			23			17
Diversification benefit to IB trading and credit portfolio VaR (a)		(8	)		(7	)		(10	)		(8	)		(9	)		(14	)		11			(8	)		(9	)		11

Total IB trading and credit portfolio VaR		77			83			78			99			90			(7	)		(14	)		80			86			(7	)


Mortgage Banking VaR (d)		20			16			17			24			24			25			(17	)		18			25			(28	)
Chief Investment Office (“CIO”) VaR (e)		51			60			49			53			72			(15	)		(29	)		56			71			(21	)
Diversification benefit to total other VaR (a)		(10	)		(14	)		(10	)		(15	)		(14	)		29			29			(12	)		(14	)		14

Total other VaR		61			62			56			62			82			(2	)		(26	)		62			82			(24	)


Diversification benefit to total IB and other VaR (a)		(44	)		(57	)		(39	)		(52	)		(79	)		23			44			(51	)		(73	)		30

Total IB and other VaR (f)	$	94		$	88		$	95		$	109		$	93			7			1		$	91		$	95			(4	)


(a)		Average value-at-risk (“VaR”) was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is therefore usually less than the sum of the risks of the positions themselves.

(b)		IB Trading VaR includes substantially all trading activities in IB, including the credit spread sensitivity of certain mortgage products and syndicated lending facilities that the Firm intends to distribute; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. 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.

(c)		Credit portfolio VaR includes the derivative credit valuation adjustments (“CVA”), hedges of the CVA and mark-to-market (“MTM”) hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not MTM.

(d)		Mortgage Banking VaR includes the Firm’s mortgage pipeline and warehouse, MSR and all related hedges.

(e)		CIO VaR includes positions, primarily in debt securities and credit products, used to manage structural risk and other risks, including interest rate, credit and mortgage risks arising from the Firm’s ongoing business activities.

(f)		Total IB and other VaR excludes the retained credit portfolio, which is not marked to market (but it does include hedges of those positions), and certain nontrading activity, such as principal investing (e.g., mezzanine financing, tax-oriented investments, etc.), and certain securities and investments held by Corporate/Private Equity, including private equity investments, capital management positions and longer-term corporate investments managed by the CIO.

Page 39



JPMORGAN CHASE & CO. CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS (in millions, except ratio data)


																June 30, 2011
																Change						YEAR-TO-DATE
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30							2011 Change
	2011			2011			2010			2010			2010			2011			2010			2011		2010		2010
CAPITAL
Tier 1 capital	$	148,880	(e)	$	147,234		$	142,450		$	139,381		$	137,077			1	%		9	%
Total capital		187,881	(e)		186,417			182,216			180,740			178,293			1			5
Tier 1 common capital (a)		121,209	(e)		119,598			114,763			110,842			108,175			1			12
Risk-weighted assets		1,197,280	(e)		1,192,536			1,174,978			1,170,158			1,131,030			—			6
Adjusted average assets (b)		2,129,510	(e)		2,041,153			2,024,515			1,975,479			1,983,839			4			7
Tier 1 capital ratio		12.4%	(e)		12.3	%		12.1	%		11.9	%		12.1	%
Total capital ratio		15.7	(e)		15.6			15.5			15.4			15.8
Tier 1 common capital ratio (a)		10.1	(e)		10.0			9.8			9.5			9.6
Tier 1 leverage ratio		7.0	(e)		7.2			7.0			7.1			6.9

TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity	$	175,079		$	172,798		$	168,306		$	166,030		$	162,968			1			7
Less: Goodwill		48,882			48,856			48,854			48,736			48,320			—			1
Less: Other intangible assets		3,679			3,857			4,039			3,982			4,178			(5	)		(12	)
Add: Deferred tax liabilities (d)		2,632			2,603			2,586			2,656			2,584			1			2

Total tangible common equity	$	125,150		$	122,688		$	117,999		$	115,968		$	113,054			2			11


TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity	$	174,077		$	169,415		$	166,812		$	163,962		$	159,069			3			9		$	171,759	$	157,590		9	%
Less: Goodwill		48,834			48,846			48,831			48,745			48,348			—			1			48,840		48,445		1
Less: Other intangible assets		3,738			3,928			4,054			4,094			4,265			(5	)		(12	)		3,833		4,285		(11	)
Add: Deferred tax liabilities (d)		2,618			2,595			2,621			2,620			2,564			1			2			2,607		2,553		2

Total tangible common equity	$	124,123		$	119,236		$	116,548		$	113,743		$	109,020			4			14		$	121,693	$	107,413		13


INTANGIBLE ASSETS (period-end)
Goodwill	$	48,882		$	48,856		$	48,854		$	48,736		$	48,320			—			1
Mortgage servicing rights		12,243			13,093			13,649			10,305			11,853			(6	)		3
Purchased credit card relationships		744			820			897			974			1,051			(9	)		(29	)
All other intangibles		2,935			3,037			3,142			3,008			3,127			(3	)		(6	)

Total intangibles	$	64,804		$	65,806		$	66,542		$	63,023		$	64,351			(2	)		1


DEPOSITS (period-end)
U.S. offices:
Noninterest-bearing	$	287,654		$	244,136		$	228,555		$	219,302		$	208,064			18			38
Interest-bearing		469,618			468,654			455,237			435,405			433,764			—			8
Non-U.S. offices:
Noninterest-bearing		12,496			11,644			10,917			10,646			9,094			7			37
Interest-bearing		278,917			271,395			235,660			237,785			236,883			3			18

Total deposits	$	1,048,685		$	995,829		$	930,369		$	903,138		$	887,805			5			18


(a)		The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. The Tier 1 common capital ratio, a non-GAAP financial measure, is Tier 1 common capital divided by risk-weighted assets. For further discussion of Tier 1 common capital ratio, see page 43.

(b)		Adjusted average assets, for purposes of calculating the leverage ratio, include total quarterly average assets adjusted for unrealized gains/(losses) on securities, less deductions for disallowed goodwill and other intangible assets, investments in certain subsidiaries, and the total adjusted carrying value of nonfinancial equity investments that are subject to deductions from Tier 1 capital.

(c)		ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of tangible common equity. In management’s view, these measures are meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity and in facilitating comparisons with competitors. For further discussion, see page 43.

(d)		Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.

(e)		Estimated.

Page 40



JPMORGAN CHASE & CO. MORTGAGE LOAN REPURCHASE LIABILITY (in millions)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
REPURCHASE LIABILITY (a)
Summary of changes in repurchase liability:
Repurchase liability at beginning of period	$	3,474		$	3,285		$	3,307		$	2,332		$	1,982			6	%		75	%	$	3,285		$	1,705			93	%
Realized losses (b)		(241	)		(231	)		(371	)		(489	)		(317	)		(4	)		24			(472	)		(563	)		16
Provision for repurchase losses		398			420			349			1,464			667			(5	)		(40	)		818			1,190			(31	)

Repurchase liability at end of period	$	3,631		$	3,474		$	3,285		$	3,307		$	2,332			5			56		$	3,631		$	2,332			56


Outstanding repurchase demands and mortgage insurance rescission notices by counterparty type: (c)(d)
GSEs and other	$	1,826		$	1,321		$	1,251		$	1,333		$	1,562			38			17		$	1,826		$	1,562			17
Mortgage insurers		1,093			1,240			1,121			1,007			1,319			(12	)		(17	)		1,093			1,319			(17	)
Overlapping population (e)		(145	)		(127	)		(104	)		(109	)		(239	)		(14	)		39			(145	)		(239	)		39

Total	$	2,774		$	2,434		$	2,268		$	2,231		$	2,642			14			5		$	2,774		$	2,642			5


Quarterly repurchase demands received by loan origination vintage: (c)(d)
Pre-2005	$	32		$	15		$	39		$	31		$	37			113			(14	)	$	47		$	54			(13	)
2005		57			45			73			67			99			27			(42	)		102			151			(32	)
2006		363			158			198			213			300			130			21			521			539			(3	)
2007		510			381			539			537			539			34			(5	)		891			969			(8	)
2008		301			249			254			191			186			21			62			550			284			94
Post-2008		89			94			65			46			53			(5	)		68			183			73			151

Total	$	1,352		$	942		$	1,168		$	1,085		$	1,214			44			11		$	2,294		$	2,070			11


(a)		For further details regarding the Firm’s repurchase liability, see Repurchase liability on pages 98-101 and Note 30, on pages 275-280, of JPMorgan Chase’s 2010 Annual Report.

(b)		Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expense. Make-whole settlements were $126 million, $115 million, $152 million, $225 million and $150 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, and June 30, 2010, respectively, and $241 million and $255 million for year-to-date 2011 and 2010, respectively.

(c)		Prior periods have been revised to include repurchase demands and mortgage insurance rescission notices related to certain loans sold or deposited into private-label securitizations. The Firm’s outstanding repurchase demands are predominantly from the GSEs.

(d)		Excludes amounts related to Washington Mutual.

(e)		Because the GSEs may make repurchase demands based on mortgage insurance rescission notices that remain unresolved, certain loans may be subject to both an unresolved mortgage insurance rescission notice and an unresolved repurchase demand.

Page 41



JPMORGAN CHASE & CO. PER SHARE-RELATED INFORMATION (in millions, except per share and ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q11 Change												2011 Change
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q11			2Q10			2011			2010			2010
EARNINGS PER SHARE DATA
Basic earnings per share:
Net income	$	5,431		$	5,555		$	4,831		$	4,418		$	4,795			(2)	%		13	%	$	10,986		$	8,121			35	%
Less: Preferred stock dividends		158			157			157			160			163			1			(3	)		315			325			(3	)

Net income applicable to common equity		5,273			5,398			4,674			4,258			4,632			(2	)		14			10,671			7,796			37
Less: Dividends and undistributed earnings allocated to participating securities		206			262			262			239			269			(21	)		(23	)		468			461			2

Net income applicable to common stockholders	$	5,067		$	5,136		$	4,412		$	4,019		$	4,363			(1	)		16		$	10,203		$	7,335			39


Total weighted-average basic shares outstanding		3,958.4			3,981.6			3,917.0			3,954.3			3,983.5			(1	)		(1	)		3,970.0			3,977.0			—

Net income per share	$	1.28		$	1.29		$	1.13		$	1.02		$	1.10			(1	)		16		$	2.57		$	1.84			40

Diluted earnings per share:
Net income applicable to common stockholders	$	5,067		$	5,136		$	4,412		$	4,019		$	4,363			(1	)		16		$	10,203		$	7,335			39

Total weighted-average basic shares outstanding		3,958.4			3,981.6			3,917.0			3,954.3			3,983.5			(1	)		(1	)		3,970.0			3,977.0			—
Add: Employee stock options, SARs and warrants (a)		24.8			32.5			18.2			17.6			22.1			(24	)		12			28.6			23.2			23

Total weighted-average diluted shares outstanding (b)		3,983.2			4,014.1			3,935.2			3,971.9			4,005.6			(1	)		(1	)		3,998.6			4,000.2			—
Net income per share	$	1.27		$	1.28		$	1.12		$	1.01		$	1.09			(1	)		17		$	2.55		$	1.83			39

COMMON SHARES OUTSTANDING
Common shares — at period end		3,910.2			3,986.6			3,910.3			3,925.8			3,975.8			(2	)		(2	)		3,910.2			3,975.8			(2	)
Cash dividends declared per share	$	0.25		$	0.25	(e)	$	0.05		$	0.05		$	0.05			—			400		$	0.50		$	0.10			400
Book value per share		44.77			43.34			43.04			42.29			40.99			3			9			44.77			40.99			9
Dividend payout ratio		19	%		20	%		4	%		5	%		5	%								19	%		5	%

SHARE PRICE (c)
High	$	47.80		$	48.36		$	43.12		$	41.70		$	48.20			(1	)		(1	)	$	48.36		$	48.20			—
Low		39.24			42.65			36.21			35.16			36.51			(8	)		7			39.24			36.51			7
Close		40.94			46.10			42.42			38.06			36.61			(11	)		12			40.94			36.61			12
Market capitalization		160,083			183,783			165,875			149,418			145,554			(13	)		10			160,083			145,554			10

STOCK REPURCHASE PROGRAM (d)
Aggregate repurchases	$	3,479.8		$	95.0		$	685.2		$	2,178.1		$	135.3		NM			NM			$	3,574.8		$	135.3		NM
Common shares repurchased		80.3			2.1			17.9			56.5			3.5		NM			NM				82.4			3.5		NM
Average purchase price	$	43.33		$	45.66		$	38.37		$	38.52		$	38.73			(5	)		12		$	43.39		$	38.73			12


(a)		Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock. The aggregate number of shares issuable upon the exercise of such options and warrants was 53 million, 85 million, 233 million, 236 million and 224 million, for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and 69 million and 232 million for the year-to-date 2011 and 2010, respectively.

(b)		Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.

(c)		Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.

(d)		On March 18, 2011, the Board of Directors authorized the repurchase of up to $15.0 billion of the Firm’s common shares, of which up to $8.0 billion of common share repurchases is approved for 2011. The authorization commenced on March 22, 2011, and replaced the Firm’s previous $10.0 billion repurchase program. Management and the Board will continue to assess and make decisions regarding alternatives for deploying capital, as appropriate, over the course of the year. Any planned future dividend increases over the current level, or planned use of the stock repurchase program over the repurchases authorized for 2011, will be reviewed by the Firm with the banking regulators before taking action.

(e)		On March 18, 2011, the Board of Directors increased the Firm’s quarterly common stock dividend from $0.05 to $0.25 per share.

Page 42



JPMORGAN CHASE & CO. NON-GAAP FINANCIAL MEASURES

The following are several of the non-GAAP measures that the Firm uses for various reasons, including: (i) to allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources, (ii) to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies, and (iii) more generally, to provide a more meaningful measure of certain metrics that enables comparability with prior periods, as well as with competitors.

(a)		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. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the business segments) on a FTE basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to taxable securities and investments. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.

(b)		The ratio for the allowance for loan losses to end-of-period loans excludes the following: loans accounted for at fair value and loans held-for-sale; purchased credit-impaired (“PCI”) loans; and the allowance for loan losses related to PCI loans. Additionally, Real Estate Portfolios net charge-off rates exclude the impact of PCI loans.

(c)		Tangible common equity (“TCE”), a non-GAAP financial measure, represents common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of TCE. In management’s view, these measures are meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity, and in facilitating comparisons with competitors.

(d)		Tier 1 common capital ratio is Tier 1 common capital divided by risk-weighted assets. Tier 1 Common Capital (“Tier 1 Common”) is defined as Tier 1 capital less elements of capital not in the form of common equity — such as perpetual preferred stock, noncontrolling interests in subsidiaries and trust preferred capital debt securities. Tier 1 Common, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies. The Firm uses Tier 1 Common along with other capital measures to assess and monitor its capital position.

(e)		TSS Firmwide revenue includes certain TSS product revenue and liability balances reported in other lines of business, mainly CB, RFS and AM, related to customers who are also customers of those lines of business.

(f)		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.

(g)		Adjusted assets, a non-GAAP financial measure, equals total assets minus: (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased; (2) assets of consolidated VIEs; (3) cash and securities segregated and on deposit for regulatory and other purposes; (4) goodwill and intangibles; and (5) securities received as collateral. The amount of adjusted assets is presented to assist the reader in comparing IB’s asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. IB believes an adjusted asset amount that excludes the assets discussed above, which were considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.

Page 43



JPMORGAN CHASE & CO. GLOSSARY OF TERMS

ACH: Automated Clearing House.

Allowance for loan losses to total loans: Represents period-end allowance for loan losses divided by retained loans.

Beneficial interests issued by consolidated VIEs: Represents the interest of third-party holders of debt/equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates. The underlying obligations of the VIEs consist of short-term borrowings, commercial paper and long-term debt. The related assets consist of trading assets, available-for-sale securities, loans and other assets.

Contractual credit card charge-off: In accordance with the Federal Financial Institutions Examination Council policy, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specific event (e.g., bankruptcy of the borrower), whichever is earlier.

Corporate/Private Equity: Includes Private Equity, Treasury and Chief Investment Office, and Corporate Other, which includes other centrally managed expense and discontinued operations.

FASB: Financial Accounting Standards Board.

Global Corporate Bank: TSS and IB formed a joint venture to create the Firm’s Global Corporate Bank. With a team of bankers, the Global Corporate Bank serves multinational clients by providing them access to TSS products and services and certain IB products, including derivatives, foreign exchange and debt. The cost of this effort and the credit that the Firm extends to these clients is shared between TSS and IB.

Interests in purchased receivables: Represents an ownership interest in cash flows of an underlying pool of receivables transferred by a third-party seller into a bankruptcy-remote entity, generally a trust.

Managed basis: A non-GAAP presentation of financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management uses this non-GAAP financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.

Mark-to-market exposure: A measure, at a point in time, of the value of a derivative or foreign exchange contract in the open market. When the MTM value is positive, it indicates the counterparty owes JPMorgan Chase and, therefore, creates credit risk for the Firm. When the MTM value is negative, JPMorgan Chase owes the counterparty; in this situation, the Firm has liquidity risk.

MSR risk management revenue: Includes changes in the fair value of the MSR asset due to market-based inputs, such as interest rates and volatility, as well as updates to assumptions used in the MSR valuation model; and derivative valuation adjustments and other, which represents changes in the fair value of derivative instruments used to offset the impact of changes in the market-based inputs to the MSR valuation model.

NA: Data is not applicable or available for the period presented.

Net charge-off rate: Represents net charge-offs (annualized) divided by average retained loans for the reporting period.

Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.

NM: Not meaningful.

Overhead ratio: Noninterest expense as a percentage of total net revenue.

Participating securities: Represents unvested stock-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”), which are included in the earnings per share calculation using the two-class method. JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends.

Pre-provision profit: Pre-provision profit is total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

Page 44



JPMORGAN CHASE & CO. GLOSSARY OF TERMS

Pretax margin: Represents income before income tax expense divided by total net revenue, which is, in management’s view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is, therefore, another basis that management uses to evaluate the performance of TSS and AM against the performance of their respective competitors.

Principal transactions: Realized and unrealized gains and losses from trading activities (including physical commodities inventories that are accounted for at the lower of cost or fair value) and changes in fair value associated with financial instruments held predominantly by IB for which the fair value option was elected. Principal transactions revenue also includes private equity gains and losses.

Purchased credit-impaired (“PCI”) loans: Acquired loans deemed to be credit-impaired under the FASB guidance for PCI loans. The guidance allows purchasers to aggregate credit-impaired loans acquired in the same fiscal quarter into one or more pools, provided that the loans have common risk characteristics (e.g., FICO score, geographic location). A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Wholesale loans are determined to be credit-impaired if they meet the definition of an impaired loan under U.S. GAAP at the acquisition date. Consumer loans are determined to be credit-impaired based on specific risk characteristics of the loan, including product type, LTV ratios, FICO scores, and past due status.

Receivables from customers: Primarily represents margin loans to prime and retail brokerage customers which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets for the wholesale lines of business.

Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments.

Retained loans: Loans that are held-for-investment excluding loans held-for-sale and loans at fair value.

Risk-weighted assets (“RWA”): Risk-weighted assets consist of on- and off-balance sheet assets that are assigned to one of several broad risk categories and weighted by factors representing their risk and potential for default. On-balance sheet assets are risk-weighted based on the perceived credit risk associated with the obligor or counterparty, the nature of any collateral, and the guarantor, if any. Off-balance sheet assets such as lending-related commitments, guarantees, derivatives and other applicable off-balance sheet positions are risk-weighted by multiplying the contractual amount by the appropriate credit conversion factor to determine the on-balance sheet credit equivalent amount, which is then risk-weighted based on the same factors used for on-balance sheet assets. Risk-weighted assets also incorporate a measure for the market risk related to applicable trading assets-debt and equity instruments, and foreign exchange and commodity derivatives. The resulting risk-weighted values for each of the risk categories are then aggregated to determine total risk-weighted assets.

Taxable-equivalent basis: Total net revenue for each of the business segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to fully taxable securities and investments. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense.

Troubled debt restructuring (“TDR”): Occurs when the Firm modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty.

U.S. GAAP: Accounting principles generally accepted in the United States of America.

Value-at-risk (“VaR”): A measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.

Washington Mutual transaction: On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank (“Washington Mutual”) from the FDIC. For additional information, see Note 2 on pages 166-170 of JPMorgan Chase’s 2010 Annual Report.

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JPMORGAN CHASE & CO. GLOSSARY OF TERMS

INVESTMENT BANK (IB)

IB’s revenue comprises the following:

Investment banking fees include advisory, equity underwriting, bond underwriting and loan syndication fees.

Fixed income markets primarily include revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets.

Equities markets primarily include revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and Prime Services.

Credit portfolio revenue includes net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring, for IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

RETAIL FINANCIAL SERVICES (RFS)

Description of selected business metrics within Retail Banking:

Personal bankers – Retail branch office personnel who acquire, retain and expand new and existing customer relationships by assessing customer needs and recommending and selling appropriate banking products and services.

Sales specialists – Retail branch office personnel who specialize in the marketing of a single product, including mortgages, investments, and business banking, by partnering with the personal bankers.

Mortgage banking revenue comprises the following:

Net production revenue includes net gains or losses on originations and sales of prime and subprime mortgage loans, other production-related fees and losses related to the repurchase of previously-sold loans.

Net mortgage servicing revenue includes the following components:

Operating revenue comprises:

	•		All gross income earned from servicing third-party mortgage loans, including stated service fees, excess service fees, late fees and other ancillary fees; and

	•		Modeled servicing portfolio runoff (or time decay).

Risk management comprises:

	•		Changes in the fair value of the MSR asset due to market-based inputs, such as interest rates and volatility, as well as updates to assumptions used in the MSR valuation model; and

	•		Derivative valuation adjustments and other, which represents changes in the fair value of derivative instruments used to offset the impact of changes in the market-based inputs to the MSR valuation model.

RFS (continued)

Mortgage origination channels comprise the following:

Retail – Borrowers who are buying or refinancing a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.

Wholesale – A third-party mortgage broker refers loan applications to a mortgage banker at the Firm. Brokers are independent loan originators that specialize in finding and counseling borrowers but do not provide funding for loans. The Firm exited the broker channel during 2008.

Correspondent – Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.

Correspondent negotiated transactions (“CNTs”) – These transactions occur when mid- to large-sized mortgage lenders, banks and bank-owned mortgage companies sell servicing to the Firm on an as-originated basis, and exclude purchased bulk servicing transactions. These transactions supplement traditional production channels and provide growth opportunities in the servicing portfolio in stable and periods of rising interest rates.

Deposit margin: Represents deposit-related net interest income expressed as a percentage of average deposits.

CARD SERVICES (CS)

Description of selected business metrics within CS:

Sales volume – Dollar amount of cardmember purchases, net of returns.

Open accounts – Cardmember accounts with charging privileges.

Merchant acquiring business – A business that processes bank card transactions for merchants.

Bank card volume – Dollar amount of transactions processed for merchants.

Total transactions – Number of transactions and authorizations processed for merchants.

Commercial Card provides a wide range of payment services to corporate and public sector clients worldwide through the commercial card products. Services include procurement, corporate travel and entertainment, expense management services, and Business-to-Business payment solutions.

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JPMORGAN CHASE & CO. GLOSSARY OF TERMS

COMMERCIAL BANKING (CB)

CB Client Segments:

1.		Middle Market Banking covers corporate, municipal, financial institution and not-for-profit clients, with annual revenue generally ranging between $10 million and $500 million.

2.		Corporate Client Banking covers clients with annual revenue generally ranging between $500 million and $2 billion and focuses on clients that have broader investment banking needs.

3.		Commercial Term Lending primarily provides term financing to real estate investors/owners for multi-family properties as well as financing office, retail and industrial properties.

4.		Real Estate Banking provides full-service banking to investors and developers of institutional-grade real estate properties.

5.		Other primarily includes lending and investment activity within the Community Development Banking and Chase Capital segments.

CB Revenue:

1.		Lending includes a variety of financing alternatives, which are primarily provided on a basis secured by receivables, inventory, equipment, real estate or other assets. Products include term loans, revolving lines of credit, bridge financing, asset-based structures, leases, commercial card products and standby letters of credit.

2.		Treasury services includes a broad range of products and services enabling clients to transfer, invest and manage the receipt and disbursement of funds, while providing the related information reporting. These products and services include U.S. dollar and multi-currency clearing, ACH, lockbox, disbursement and reconciliation services, check deposits, other check and currency-related services, trade finance and logistics solutions, deposit products, sweeps and money market mutual funds.

3.		Investment banking products provide clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through loan syndications, investment-grade debt, asset-backed securities, private placements, high-yield bonds, equity underwriting, advisory, interest rate derivatives, foreign exchange hedges and securities sales.

4.		Other product revenue primarily includes tax-equivalent adjustments generated from Community Development Banking segment activity and certain income derived from principal transactions.

Description of selected business metrics within CB:

1.		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.

2.		IB revenue, gross represents total revenue related to investment banking products sold to CB clients.

TREASURY & SECURITIES SERVICES (TSS)

Treasury & Securities Services firmwide metrics include certain TSS product revenue and liability balances reported in other lines of business related to customers who are also customers of those other lines of business. In order to capture the firmwide impact of Treasury Services 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 management’s view, in order to understand the aggregate TSS business.

Description of a business metric within TSS:

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.

ASSET MANAGEMENT (AM)

Assets under management – Represent assets actively managed by AM on behalf of Private Banking, Institutional, and Retail clients. Includes ”committed capital not called”, on which AM earns fees. Excludes assets managed by American Century Companies, Inc. in which the Firm has a 40% ownership interest at June 30, 2011.

Assets under supervision – Represents assets under management, as well as custody, brokerage, administration and deposit accounts.

Multi-asset – Any fund or account that allocates assets under management to more than one asset class (e.g., long-term fixed income, equity, cash, real assets, private equity or hedge funds).

Alternative assets – The following types of assets constitute alternative investments – hedge funds, currency, real estate and private equity.

AM’s client segments comprise the following:

Institutional brings comprehensive global investment services – including asset management, pension analytics, asset/liability management and active risk budgeting strategies – to corporate and public institutions, endowments, foundations, not-for-profit organizations and governments worldwide.

Retail provides worldwide investment management services and retirement planning and administration through third-party and direct distribution of a full range of investment vehicles.

Private Banking offers investment advice and wealth management services to high- and ultra-high-net-worth individuals, families, money managers, business owners and small corporations worldwide, including investment management, capital markets and risk management, tax and estate planning, banking, capital raising and specialty-wealth advisory services.

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