JPMORGAN CHASE & CO - FORM 8-K - EX-99.1

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8-K - FORM 8-K - JPMORGAN CHASE & CO	y92806e8vk.htm

Exhibit 99.1

REVISED FINANCIAL SUPPLEMENT
(Business Segment Reorganization)

SIX QUARTER TREND THROUGH 2Q11
AND FULL YEARS OF 2008-2010



JPMORGAN CHASE & CO. TABLE OF CONTENTS


	Page(s)

Summary of Revisions		1

Business Detail
Line of Business Financial Highlights — Managed Basis		2

Retail Financial Services		3-4
Consumer & Business Banking		5
Mortgage Production and Servicing		6-7
Real Estate Portfolios		8-9

Card Services & Auto		10-13

Credit-Related Information		14-16

Non-GAAP Financial Measures		17



JPMORGAN CHASE & CO. Revised Financial Disclosure

JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) is furnishing this Current Report on Form 8-K to supplement financial disclosures related to changes to its business segments that became effective July 1, 2011. Commencing July 1, 2011, the Firm’s business segments have been reorganized as follows:

	•		Auto and Student Lending transferred from the current Retail Financial Services reportable/operating segment and will be reported with Card Services & Auto in a single reportable/operating segment.

	•		Retail Financial Services will continue as a reportable/operating segment, organized in two components: Consumer & Business Banking (formerly Retail Banking) and Mortgage Banking (including Mortgage Production and Servicing, and Real Estate Portfolios).

All prior period disclosures have been revised to conform with the current period presentation.

The chart below provides a mapping of the Firm’s prior reporting to the current presentation.

Page 1



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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
TOTAL NET REVENUE (FTE)
Investment Bank (a)	$	7,314		$	8,233		$	6,213		$	5,353		$	6,332		$	8,319		$	26,217		$	28,109		$	12,335
Retail Financial Services		7,142			5,466			7,699			6,814			6,964			6,970			28,447			29,797			21,155
Card Services & Auto		4,761			4,791			5,072			5,085			5,062			5,253			20,472			23,199			18,839
Commercial Banking		1,627			1,516			1,611			1,527			1,486			1,416			6,040			5,720			4,777
Treasury & Securities Services		1,932			1,840			1,913			1,831			1,881			1,756			7,381			7,344			8,134
Asset Management		2,537			2,406			2,613			2,172			2,068			2,131			8,984			7,965			7,584
Corporate/Private Equity (a)		2,097			1,539			1,601			1,553			1,820			2,327			7,301			6,513			(52	)

TOTAL NET REVENUE	$	27,410		$	25,791		$	26,722		$	24,335		$	25,613		$	28,172		$	104,842		$	108,647		$	72,772


TOTAL PRE-PROVISION PROFIT
Investment Bank (a)	$	2,982		$	3,217		$	2,012		$	1,649		$	1,810		$	3,481		$	8,952		$	12,708		$	(1,509	)
Retail Financial Services		1,871			566			3,228			2,644			3,019			3,073			11,964			14,285			10,278
Card Services & Auto		2,773			2,874			3,205			3,293			3,290			3,506			13,294			16,582			12,499
Commercial Banking		1,064			953			1,053			967			944			877			3,841			3,544			2,831
Treasury & Securities Services		479			463			443			421			482			431			1,777			2,066			2,911
Asset Management		743			746			836			684			663			689			2,872			2,492			2,286
Corporate/Private Equity (a)		656			977			(98	)		279			774			(9	)		946			4,618			(24	)

TOTAL PRE-PROVISION PROFIT	$	10,568		$	9,796		$	10,679		$	9,937		$	10,982		$	12,048		$	43,646		$	56,295		$	29,272


NET INCOME/(LOSS)
Investment Bank	$	2,057		$	2,370		$	1,501		$	1,286		$	1,381		$	2,471		$	6,639		$	6,899		$	(1,175	)
Retail Financial Services		383			(399	)		459			716			849			(296	)		1,728			(335	)		703
Card Services & Auto		1,110			1,534			1,548			926			536			(138	)		2,872			(1,793	)		957
Commercial Banking		607			546			530			471			693			390			2,084			1,271			1,439
Treasury & Securities Services		333			316			257			251			292			279			1,079			1,226			1,767
Asset Management		439			466			507			420			391			392			1,710			1,430			1,357
Corporate/Private Equity (b)		502			722			29			348			653			228			1,258			3,030			557

TOTAL NET INCOME	$	5,431		$	5,555		$	4,831		$	4,418		$	4,795		$	3,326		$	17,370		$	11,728		$	5,605


AVERAGE EQUITY (c)
Investment Bank	$	40,000		$	40,000		$	40,000		$	40,000		$	40,000		$	40,000		$	40,000		$	33,000		$	26,098
Retail Financial Services		25,000			25,000			24,600			24,600			24,600			24,600			24,600			22,457			16,070
Card Services & Auto		16,000			16,000			18,400			18,400			18,400			18,400			18,400			17,543			17,267
Commercial Banking		8,000			8,000			8,000			8,000			8,000			8,000			8,000			8,000			7,251
Treasury & Securities Services		7,000			7,000			6,500			6,500			6,500			6,500			6,500			5,000			3,751
Asset Management		6,500			6,500			6,500			6,500			6,500			6,500			6,500			7,000			5,645
Corporate/Private Equity		71,577			66,915			62,812			59,962			55,069			52,094			57,520			52,903			53,034

TOTAL AVERAGE EQUITY	$	174,077		$	169,415		$	166,812		$	163,962		$	159,069		$	156,094		$	161,520		$	145,903		$	129,116


RETURN ON EQUITY (c)
Investment Bank		21	%		24	%		15	%		13	%		14	%		25	%		17	%		21			(5)	%
Retail Financial Services		6			(6	)		7			12			14			(5	)		7			(1	)		4
Card Services & Auto		28			39			33			20			12			(3	)		16			(10	)		6
Commercial Banking		30			28			26			23			35			20			26			16			20
Treasury & Securities Services		19			18			16			15			18			17			17			25			47
Asset Management		27			29			31			26			24			24			26			20			24
JPMORGAN CHASE		12			13			11			10			12			8			10			6			4


(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)		Net income included an extraordinary gain of $76 million and $1.9 billion related to the Washington Mutual transaction for 2009 and 2008, respectively.

(c)		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 & Auto (“Card”) was reduced, largely reflecting runoff of the credit card portfolio 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 2


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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	813		$	736		$	728		$	743		$	765		$	825		$	3,061		$	3,897		$	2,466
Asset management, administration and commissions		499			485			454			441			431			450			1,776			1,665			1,502
Mortgage fees and related income		1,100			(489	)		1,609			705			886			655			3,855			3,794			3,621
Credit card income		572			537			524			502			479			450			1,955			1,634			939
Other income		131			111			128			143			166			143			580			424			217

Noninterest revenue		3,115			1,380			3,443			2,534			2,727			2,523			11,227			11,414			8,745
Net interest income		4,027			4,086			4,256			4,280			4,237			4,447			17,220			18,383			12,410

TOTAL NET REVENUE (a)		7,142			5,466			7,699			6,814			6,964			6,970			28,447			29,797			21,155

Provision for credit losses		994			1,199			2,418			1,397			1,545			3,559			8,919			14,754			9,033

NONINTEREST EXPENSE
Compensation expense		1,937			1,876			1,816			1,825			1,754			1,677			7,072			6,349			4,700
Noncompensation expense		3,274			2,964			2,587			2,276			2,122			2,150			9,135			8,834			5,781
Amortization of intangibles		60			60			68			69			69			70			276			329			396

TOTAL NONINTEREST EXPENSE		5,271			4,900			4,471			4,170			3,945			3,897			16,483			15,512			10,877


Income/(loss) before income tax expense/(benefit)		877			(633	)		810			1,247			1,474			(486	)		3,045			(469	)		1,245
Income tax expense/(benefit)		494			(234	)		351			531			625			(190	)		1,317			(134	)		542

NET INCOME/(LOSS)	$	383		$	(399	)	$	459		$	716		$	849		$	(296	)	$	1,728		$	(335	)	$	703


FINANCIAL RATIOS
ROE		6	%		(6)	%		7	%		12	%		14	%		(5)	%		7	%		(1)	%		4	%
Overhead ratio		74			90			58			61			57			56			58			52			51
Overhead ratio excluding core deposit intangibles (b)		73			89			57			60			56			55			57			51			50

SELECTED BALANCE SHEET DATA (period-end)
Assets	$	283,753		$	289,336		$	299,950		$	300,913		$	308,939		$	314,222		$	299,950		$	322,185		$	358,132
Loans:
Loans retained		241,127			247,128			253,904			260,647			267,959			276,588			253,904			280,246			312,063
Loans held-for-sale and loans at fair value (c)		13,558			12,234			14,863			13,032			12,350			8,974			14,863			12,920			8,174

Total loans		254,685			259,362			268,767			273,679			280,309			285,562			268,767			293,166			320,237
Deposits		378,371			379,605			369,925			363,295			359,112			361,607			369,925			356,614			359,823
Equity		25,000			25,000			24,600			24,600			24,600			24,600			24,600			22,457			22,457

SELECTED BALANCE SHEET DATA (average)
Assets		287,235			297,938			307,040			309,523			314,020			325,856			314,046			344,727			243,792
Loans:
Loans retained		244,030			250,443			257,500			264,467			272,934			281,011			268,902			296,959			202,208
Loans held-for-sale and loans at fair value (c)		14,613			17,519			18,877			15,571			12,627			14,455			15,395			16,236			14,560

Total loans		258,643			267,962			276,377			280,038			285,561			295,466			284,297			313,195			216,768
Deposits		378,932			371,787			367,032			361,668			361,156			356,120			361,525			366,996			257,784
Equity		25,000			25,000			24,600			24,600			24,600			24,600			24,600			22,457			16,070

Headcount		122,728			118,547			116,882			114,440			111,861			107,598			116,882			103,733			96,954


(a)		Total net revenue included tax-equivalent adjustments associated with tax-exempt loans to municipalities and other qualified entities of $1 million, $2 million, zero, $2 million, $3 million and $3 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and $8 million, $9 million and $6 million for full year 2010, 2009 and 2008, 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 Consumer & Business Banking’s CDI amortization expense related to prior business combination transactions of $60 million, $60 million, $68 million, $69 million, $69 million and $70 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and $276 million, $328 million and $394 million for full year 2010, 2009 and 2008, 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, $12.2 billion, $8.4 billion, $12.5 billion and $8.0 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, respectively. Average balances of these loans totaled $14.5 billion, $17.4 billion, $18.7 billion, $15.3 billion, $12.5 billion and $14.2 billion for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and $15.2 billion, $15.8 billion and $14.2 billion for full year 2010, 2009 and 2008, respectively.

Page 3


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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	1,069		$	1,199		$	1,970		$	1,397		$	1,591		$	2,263		$	7,221		$	9,233		$	4,263
Nonaccrual loans:
Nonaccrual loans retained		8,088			8,278			8,568			9,601			10,244			10,504			8,568			10,373			6,400
Nonaccrual loans held-for-sale and loans at fair value		142			150			145			166			176			217			145			234			236

Total nonaccrual loans (a)(b)(c)		8,230			8,428			8,713			9,767			10,420			10,721			8,713			10,607			6,636
Nonperforming assets (a)(b)(c)		9,175			9,632			9,999			11,155			11,625			11,851			9,999			11,761			8,819
Allowance for loan losses		15,479			15,554			15,554			15,106			15,106			15,154			15,554			13,734			8,177
Net charge-off rate (d)		1.76	%		1.94	%		3.04	%		2.10	%		2.34	%		3.27	%		2.69	%		3.11	%		2.11	%
Net charge-off rate excluding purchased credit-impaired (“PCI”) loans (d)(e)		2.46			2.72			4.25			2.94			3.27			4.57			3.76			4.36			2.37
Allowance for loan losses to ending loans retained (d)		6.42			6.29			6.13			5.80			5.64			5.48			6.13			4.90			2.62
Allowance for loan losses to ending loans retained excluding PCI loans (d)(e)		6.12			6.02			5.86			6.61			6.44			6.26			5.86			6.11			3.66
Allowance for loan losses to nonaccrual loans retained (a)(d)(e)		130			128			124			128			120			118			124			117			128
Nonaccrual loans to total loans		3.23			3.25			3.24			3.57			3.72			3.75			3.24			3.62			2.07
Nonaccrual loans to total loans excluding PCI loans (a)		4.43			4.47			4.45			4.91			5.12			5.20			4.45			5.01			2.87


(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, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, 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, $8.9 billion, $10.0 billion, $9.0 billion and $3.0 billion, respectively, that are 90 or more days past due; and (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.3 billion, $1.9 billion, $1.7 billion, $1.4 billion, $707 million, $579 million and $364 million, respectively. 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, $2.8 billion, $2.8 billion and $1.6 billion was recorded for these loans at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009, respectively, which has also been excluded from the applicable ratios. No allowance for loan losses was recorded for these loans at December 31, 2008. To date, no charge-offs have been recorded for these loans.

Page 4


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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
CONSUMER & BUSINESS BANKING
Noninterest revenue	$	1,889		$	1,757		$	1,716		$	1,692		$	1,689		$	1,747		$	6,844		$	7,204		$	5,001
Net interest income		2,706			2,659			2,693			2,744			2,712			2,735			10,884			10,864			7,704

Total net revenue		4,595			4,416			4,409			4,436			4,401			4,482			17,728			18,068			12,705
Provision for credit losses		42			119			69			173			160			228			630			1,176			466
Noninterest expense		2,713			2,799			2,676			2,798			2,640			2,603			10,717			10,421			7,307

Income before income tax expense		1,840			1,498			1,664			1,465			1,601			1,651			6,381			6,471			4,932

Net income	$	1,098		$	893		$	952		$	839		$	916		$	945		$	3,652		$	3,915		$	2,971


Overhead ratio		59	%		63	%		61	%		63	%		60	%		58	%		60	%		58	%		58	%
Overhead ratio excluding core deposit intangibles (a)		58			62			59			62			58			57			59			56			54

BUSINESS METRICS (in billions, except where otherwise noted)
Business banking origination volume (in millions)	$	1,573		$	1,425		$	1,435		$	1,126		$	1,222		$	905		$	4,688		$	2,299		$	5,531
End-of-period loans owned		17.1			17.0			16.8			16.6			16.6			16.8			16.8			17.0			18.7
End-of-period deposits:
Checking		136.3			137.5			131.7			124.2			123.6			124.0			131.7			123.2			115.0
Savings		182.1			180.3			170.6			166.4			165.8			167.4			170.6			156.1			142.1
Time and other		42.0			44.0			46.0			48.9			50.6			53.3			46.0			58.2			89.3

Total end-of-period deposits		360.4			361.8			348.3			339.5			340.0			344.7			348.3			337.5			346.4
Average loans owned		17.1			16.9			16.6			16.6			16.7			17.6			16.9			18.0			16.9
Average deposits:
Checking		136.6			132.0			126.6			123.5			123.7			120.1			123.5			116.6			79.3
Savings		180.9			175.1			168.7			166.2			166.8			162.6			166.1			151.9			113.1
Time and other		43.0			45.0			47.5			49.9			51.6			55.8			51.2			76.5			53.4

Total average deposits		360.5			352.1			342.8			339.6			342.1			338.5			340.8			345.0			245.8
Deposit margin		2.83	%		2.88	%		2.96	%		3.04	%		3.01	%		2.98	%		3.00	%		2.92	%		2.87	%
Average assets	$	29.0		$	29.4		$	29.1		$	28.5		$	29.2		$	30.4		$	29.3		$	29.8		$	27.1

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs		117			119			169			173			206			182			730			876			364
Net charge-off rate		2.74	%		2.86	%		4.04	%		4.13	%		4.95	%		4.19	%		4.32	%		4.87	%		2.15	%
Nonperforming assets	$	784		$	822		$	846		$	913		$	920		$	872		$	846		$	839		$	424

RETAIL BRANCH BUSINESS METRICS
Investment sales volume		6,334			6,584			6,069			5,798			5,756			5,956			23,579			21,784			17,640

Number of:
Branches		5,340			5,292			5,268			5,192			5,159			5,155			5,268			5,154			5,474
ATMs		16,443			16,265			16,145			15,815			15,654			15,549			16,145			15,406			14,568
Personal bankers		23,308			21,875			21,715			21,438			20,170			19,003			21,715			17,991			15,825
Sales specialists		7,630			7,336			7,196			7,123			6,785			6,315			7,196			5,912			5,661
Active online customers (in thousands)		18,085			18,318			17,744			17,167			16,584			16,208			17,744			15,424			11,710
Checking accounts (in thousands)		26,266			26,622			27,252			27,014			26,351			25,830			27,252			25,712			24,499


(a)		Consumer & Business 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 Consumer & Business Banking’s CDI amortization expense related to prior business combination transactions of $60 million, $60 million, $68 million, $69 million, $69 million and $70 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and $276 million, $328 million and $394 million for full year 2010, 2009 and 2008, respectively.

Page 5


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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
MORTGAGE PRODUCTION AND SERVICING
Noninterest revenue	$	1,206		$	(385	)	$	1,717		$	821		$	986		$	744		$	4,268		$	4,236		$	4,029
Net interest income		124			271			244			232			212			216			904			973			479

Total net revenue		1,330			(114	)		1,961			1,053			1,198			960			5,172			5,209			4,508
Provision for credit losses		(2	)		4			12			27			13			6			58			15			6
Noninterest expense		2,187			1,746			1,382			982			900			875			4,139			3,244			2,681

Income/(loss) before income tax expense/(benefit)		(855	)		(1,864	)		567			44			285			79			975			1,950			1,821

Net income/(loss)	$	(649	)	$	(1,130	)	$	330		$	25		$	169		$	45		$	569		$	1,199		$	1,120


Overhead ratio		164	%	NM %				70	%		93	%		75	%		91	%		80	%		62	%		59	%

BUSINESS METRICS (in billions)
End-of-period loans owned:
Prime mortgage, including option ARMs (a)(b)	$	14.3		$	14.1		$	14.2		$	13.8		$	13.2		$	13.7		$	14.2		$	11.9		$	6.5

Average loans owned:
Prime mortgage, including option ARMs (a)(c)		14.1			14.0			13.9			13.6			13.6			12.5			13.4			8.8			4.3

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries):
Prime mortgage, including option ARMs		(2	)		4			12			10			13			6			41			14			5

Net charge-off/(recovery) rate:
Prime mortgage, including option ARMs (c)		(0.06)	%		0.12	%		0.35	%		0.30	%		0.39	%		0.20	%		0.31	%		0.17	%		0.13	%

30+ day delinquency rate (b)(d)		3.30			3.21			3.44			3.40			3.22			2.89			3.44			2.89			4.49
Nonperforming assets (e)(f)	$	662		$	658		$	729		$	786		$	731		$	666		$	729		$	575		$	608


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

(b)		End-of-period loans owned includes loans held-for-sale of $221 million, $188 million, $154 million, $428 million, $185 million, $558 million, $450 million and $206 million at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, respectively. These amounts are excluded when calculating the 30+ day delinquency rate.

(c)		Average loans owned includes loans held-for-sale of $76 million, $133 million, $185 million, $226 million, $114 million and $291 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and $204 million, $388 million and $352 million for full year 2010, 2009 and 2008, respectively. No allowance for loan losses was recorded for these loans. These amounts are excluded when calculating the net charge-off rate.

(d)		Excludes mortgage loans insured by U.S. government agencies of $10.1 billion, $9.5 billion, $10.3 billion, $10.2 billion, $9.8 billion, $10.6 billion, $9.7 billion and $3.5 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(e)		At June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, 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, $8.9 billion, $10.0 billion, $9.0 billion and $3.0 billion, respectively, that are 90 or more days past due; and (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.3 billion, $1.9 billion, $1.7 billion, $1.4 billion, $707 million, $579 million and $364 million, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(f)		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 Production and Servicing.

Page 6


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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
MORTGAGE PRODUCTION AND SERVICING (continued)
Origination volume:
Mortgage origination volume by channel
Retail	$	20.7		$	21.0		$	22.9		$	19.2		$	15.3		$	11.4		$	68.8		$	53.9		$	41.1
Wholesale (a)		0.1			0.2			0.3			0.2			0.4			0.4			1.3			3.6			26.7
Correspondent (a)		10.3			13.5			25.5			19.1			14.7			16.0			75.3			81.0			58.2
CNT (negotiated transactions)		2.9			1.5			2.1			2.4			1.8			3.9			10.2			12.2			43.0

Total mortgage origination volume		34.0			36.2			50.8			40.9			32.2			31.7			155.6			150.7			169.0


Application volume:
Mortgage application volume by channel
Retail		33.6			31.3			32.4			34.6			27.8			20.3			115.1			90.9			89.1
Wholesale (a)		0.3			0.3			0.4			0.6			0.6			0.8			2.4			4.9			58.6
Correspondent (a)		14.9			13.6			24.9			30.7			23.5			18.2			97.3			110.8			86.9

Total mortgage application volume		48.8			45.2			57.7			65.9			51.9			39.3			214.8			206.6			234.6


Average mortgage loans held-for-sale and loans at fair value (b)		14.6			17.5			18.9			15.6			12.6			14.5			15.4			16.2			14.6
Average assets		58.1			61.4			62.7			58.5			54.5			55.3			57.8			51.3			37.4
Repurchase reserve (ending)		3.2			3.2			3.0			3.0			2.0			1.6			3.0			1.4			1.0
Third-party mortgage loans serviced (ending)		940.8			955.0			967.5			1,012.7			1,055.2			1,075.0			967.5			1,082.1			1,172.6
Third-party mortgage loans serviced (average)		947.0			958.7			981.7			1,028.6			1,063.7			1,076.4			1,037.6			1,119.1			774.9
MSR net carrying value (ending)		12.2			13.1			13.6			10.3			11.8			15.5			13.6			15.5			9.3
Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending)		1.30	%		1.37	%		1.41	%		1.02	%		1.12	%		1.44	%		1.41	%		1.43	%		0.79	%
Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average)		0.43			0.45			0.46			0.44			0.45			0.42			0.44			0.44			0.42
MSR revenue multiple (c)		3.02x			3.04x			3.07x			2.32x			2.49x			3.43x			3.20x			3.25x			1.88x

SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions)
Net production revenue:
Production revenue	$	767		$	679		$	1,098		$	1,233		$	676		$	433		$	3,440		$	2,115		$	1,150
Repurchase losses		(223	)		(420	)		(349	)		(1,464	)		(667	)		(432	)		(2,912	)		(1,612	)		(252	)

Net production revenue		544			259			749			(231	)		9			1			528			503			898
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue		1,011			1,052			1,129			1,153			1,186			1,107			4,575			4,942			3,258
Other changes in MSR asset fair value		(478	)		(563	)		(555	)		(604	)		(620	)		(605	)		(2,384	)		(3,279	)		(2,052	)

Total operating revenue		533			489			574			549			566			502			2,191			1,663			1,206
Risk management:
Changes in MSR asset fair value due to inputs or assumptions in model		(960	)		(751	)		2,909			(1,497	)		(3,584	)		(96	)		(2,268	)		5,804			(6,849	)
Derivative valuation adjustments and other		983			(486	)		(2,623	)		1,884			3,895			248			3,404			(4,176	)		8,366

Total risk management		23			(1,237	)		286			387			311			152			1,136			1,628			1,517

Total net mortgage servicing revenue		556			(748	)		860			936			877			654			3,327			3,291			2,723

Mortgage fees and related income	$	1,100		$	(489	)	$	1,609		$	705		$	886		$	655		$	3,855		$	3,794		$	3,621


(a)		Includes rural housing loans sourced through brokers and correspondents, which are underwritten under Rural Housing Authority 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, $12.5 billion and $14.2 billion for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and $15.2 billion, $15.8 billion and $14.2 billion for full year 2010, 2009 and 2008, 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																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	20		$	8		$	10		$	21		$	52		$	32		$	115		$	(26	)	$	(285	)
Net interest income		1,197			1,156			1,319			1,304			1,313			1,496			5,432			6,546			4,227

Total net revenue		1,217			1,164			1,329			1,325			1,365			1,528			5,547			6,520			3,942
Provision for credit losses		954			1,076			2,337			1,197			1,372			3,325			8,231			13,563			8,561
Noninterest expense		371			355			413			390			405			419			1,627			1,847			889

Income/(loss) before income tax expense/(benefit)		(108	)		(267	)		(1,421	)		(262	)		(412	)		(2,216	)		(4,311	)		(8,890	)		(5,508	)

Net income/(loss)	$	(66	)	$	(162	)	$	(823	)	$	(148	)	$	(236	)	$	(1,286	)	$	(2,493	)	$	(5,449	)	$	(3,388	)


Overhead ratio		30	%		30	%		31	%		29	%		30	%		27	%		29	%		28	%		23	%

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		$	97.7		$	88.4		$	101.4		$	114.3
Prime mortgage, including option ARMs		47.0			48.5			49.8			51.3			53.1			55.4			49.8			56.0			67.7
Subprime mortgage		10.4			10.8			11.3			12.0			12.6			13.2			11.3			12.5			15.3
Other		0.8			0.8			0.8			0.9			1.0			1.0			0.8			0.7			0.9

Total end-of-period loans owned		140.9			145.4			150.3			155.9			161.5			167.3			150.3			170.6			198.2
Average loans owned:
Home equity		84.0			86.9			90.2			93.3			96.3			99.5			94.8			108.3			99.9
Prime mortgage, including option ARMs		47.6			49.3			50.7			52.2			54.3			56.6			53.4			62.3			43.0
Subprime mortgage		10.7			11.1			11.8			12.3			13.1			13.8			12.7			13.9			15.3
Other		0.8			0.8			0.9			1.0			1.0			1.1			1.0			0.8			0.9

Total average loans owned		143.1			148.1			153.6			158.8			164.7			171.0			161.9			185.3			159.1
PCI LOANS (a)
End-of-period loans owned:
Home equity		23.5			24.0			24.5			25.0			25.5			26.0			24.5			26.5			28.6
Prime mortgage		16.2			16.7			17.3			17.9			18.5			19.2			17.3			19.7			21.8
Subprime mortgage		5.2			5.3			5.4			5.5			5.6			5.8			5.4			6.0			6.8
Option ARMs		24.1			24.8			25.6			26.4			27.3			28.3			25.6			29.0			31.6

Total end-of-period loans owned		69.0			70.8			72.8			74.8			76.9			79.3			72.8			81.2			88.8
Average loans owned:
Home equity		23.7			24.2			24.7			25.2			25.7			26.2			25.5			27.6			7.1
Prime mortgage		16.5			17.0			17.6			18.2			18.8			19.5			18.5			20.8			5.4
Subprime mortgage		5.2			5.3			5.4			5.6			5.8			5.9			5.7			6.3			1.7
Option ARMs		24.4			25.1			25.9			26.7			27.7			28.6			27.2			30.5			8.0

Total average loans owned		69.8			71.6			73.6			75.7			78.0			80.2			76.9			85.2			22.2
TOTAL REAL ESTATE PORTFOLIOS
End-of-period loans owned:
Home equity		106.2			109.3			112.9			116.7			120.3			123.7			112.9			127.9			142.9
Prime mortgage, including option ARMs		87.3			90.0			92.7			95.6			98.9			102.9			92.7			104.7			121.1
Subprime mortgage		15.6			16.1			16.7			17.5			18.2			19.0			16.7			18.5			22.1
Other		0.8			0.8			0.8			0.9			1.0			1.0			0.8			0.7			0.9

Total end-of-period loans owned		209.9			216.2			223.1			230.7			238.4			246.6			223.1			251.8			287.0
Average loans owned:
Home equity		107.7			111.1			114.9			118.5			122.0			125.7			120.3			135.9			107.0
Prime mortgage, including option ARMs		88.5			91.4			94.2			97.1			100.8			104.7			99.1			113.6			56.4
Subprime mortgage		15.9			16.4			17.2			17.9			18.9			19.7			18.4			20.2			17.0
Other		0.8			0.8			0.9			1.0			1.0			1.1			1.0			0.8			0.9

Total average loans owned		212.9			219.7			227.2			234.5			242.7			251.2			238.8			270.5			181.3
Average assets		200.1			207.2			215.3			222.5			230.3			240.2			227.0			263.6			179.3
Home equity origination volume		0.3			0.2			0.3			0.3			0.3			0.3			1.2			2.4			16.3


(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.

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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
REAL ESTATE PORTFOLIOS (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding PCI loans (a)(b)
Home equity	$	592		$	720		$	792		$	730		$	796		$	1,126		$	3,444		$	4,682		$	2,391
Prime mortgage, including option ARMs		198			161			558			266			273			476			1,573			1,935			521
Subprime mortgage		156			186			429			206			282			457			1,374			1,648			933
Other		8			9			10			12			21			16			59			78			49

Total net charge-offs		954			1,076			1,789			1,214			1,372			2,075			6,450			8,343			3,894
Net charge-off rate excluding PCI loans (a)(b)
Home equity		2.83	%		3.36	%		3.48	%		3.10	%		3.32	%		4.59	%		3.63	%		4.32	%		2.39	%
Prime mortgage, including option ARMs		1.67			1.32			4.37			2.02			2.02			3.41			2.95			3.11			1.21
Subprime mortgage		5.85			6.80			14.42			6.64			8.63			13.43			10.82			11.86			6.10
Other		4.01			4.56			4.41			4.76			8.42			5.90			5.90			9.75			5.44
Total net charge-off rate excluding PCI loans		2.67			2.95			4.62			3.03			3.34			4.92			3.98			4.50			2.45
Net charge-off rate — reported
Home equity		2.20			2.63			2.73			2.44			2.62			3.63			2.86			3.45			2.23
Prime mortgage, including option ARMs		0.90			0.71			2.35			1.09			1.09			1.84			1.59			1.70			0.92
Subprime mortgage		3.94			4.60			9.90			4.57			5.98			9.41			7.47			8.16			5.49
Other		4.01			4.56			4.41			4.76			8.42			5.90			5.90			9.75			5.44
Total net charge-off rate — reported		1.80			1.99			3.12			2.05			2.27			3.35			2.70			3.08			2.15

30+ day delinquency rate excluding PCI loans (c)		5.98			6.22			6.45			6.77			6.88			7.28			6.45			7.73			4.97
Allowance for loan losses	$	14,659		$	14,659		$	14,659		$	14,111		$	14,127		$	14,127		$	14,659		$	12,752		$	7,510
Nonperforming assets (d)(e)		7,729			8,152			8,424			9,456			9,974			10,313			8,424			10,347			7,787
Allowance for loan losses to ending loans retained		6.98	%		6.78	%		6.57	%		6.12	%		5.93	%		5.73	%		6.57	%		5.06	%		2.62	%
Allowance for loan losses to ending loans retained excluding PCI loans (a)		6.90			6.68			6.47			7.25			7.01			6.76			6.47			6.55			3.79


(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, $2.8 billion, $2.8 billion and $1.6 billion was recorded for these loans at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009, respectively, which has also been excluded from the applicable ratios. No allowance for loan losses was recorded for these loans at December 31, 2008. 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%, 27.91%, 28.49%, 27.62% and 17.89% at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, 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 Production and Servicing.

Page 9


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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008

INCOME STATEMENT (a)(b)
REVENUE
Credit card income	$	1,123		$	898		$	928		$	864		$	909		$	813		$	3,514		$	3,613		$	2,768
All other income (c)		183			149			177			196			217			174			764			93			561

Noninterest revenue		1,306			1,047			1,105			1,060			1,126			987			4,278			3,706			3,329
Net interest income		3,455			3,744			3,967			4,025			3,936			4,266			16,194			19,493			15,510

TOTAL NET REVENUE (d)		4,761			4,791			5,072			5,085			5,062			5,253			20,472			23,199			18,839

Provision for credit losses		944			353			709			1,784			2,391			3,686			8,570			19,648			10,931

NONINTEREST EXPENSE
Compensation expense		448			459			407			406			415			423			1,651			1,739			1,495
Noncompensation expense		1,436			1,352			1,346			1,280			1,233			1,201			5,060			4,362			4,187
Amortization of intangibles		104			106			114			106			124			123			467			516			658

TOTAL NONINTEREST EXPENSE		1,988			1,917			1,867			1,792			1,772			1,747			7,178			6,617			6,340


Income/(loss) before income tax expense/(benefit)		1,829			2,521			2,496			1,509			899			(180	)		4,724			(3,066	)		1,568
Income tax expense/(benefit)		719			987			948			583			363			(42	)		1,852			(1,273	)		611

NET INCOME/(LOSS)	$	1,110		$	1,534		$	1,548		$	926		$	536		$	(138	)	$	2,872		$	(1,793	)	$	957


Memo: Net securitization income/(loss)	NA			NA			NA			NA			NA			NA			NA			$	(474	)	$	(183	)

FINANCIAL RATIOS (a)(b)
ROE		28	%		39	%		33	%		20	%		12	%		(3)	%		16	%		(10)	%		6	%
Overhead ratio		42			40			37			35			35			33			35			29			34

SELECTED BALANCE SHEET DATA (period-end) (a)
Loans:
Credit card	$	125,523		$	128,803		$	137,676		$	136,436		$	142,994		$	149,260		$	137,676		$	78,786		$	104,746
Auto		46,796			47,411			48,367			48,186			47,548			47,381			48,367			46,031			42,603
Student		14,003			14,288			14,454			14,687			15,071			17,355			14,454			15,747			15,942

Total loans on balance sheets		186,322			190,502			200,497			199,309			205,613			213,996			200,497			140,564			163,291
Securitized credit card loans (b)	NA			NA			NA			NA			NA			NA			NA				84,626			85,571

Total loans (e)		186,322			190,502			200,497			199,309			205,613			213,996			200,497			225,190			248,862
Equity		16,000			16,000			18,400			18,400			18,400			18,400			18,400			17,543			17,543

SELECTED BALANCE SHEET DATA (average) (a)
Total assets	$	198,044		$	204,441		$	205,286		$	207,474		$	214,702		$	224,979		$	213,041		$	255,519		$	234,361
Loans:
Credit card		125,038			132,537			135,585			140,059			146,302			155,790			144,367			87,029			83,293
Auto		46,966			47,690			48,347			47,726			47,455			46,867			47,603			43,558			43,757
Student		14,135			14,410			14,566			14,824			16,718			17,719			15,945			16,108			13,614

Total loans on balance sheets		186,139			194,637			198,498			202,609			210,475			220,376			207,915			146,695			140,664
Securitized credit card loans (b)	NA			NA			NA			NA			NA			NA			NA				85,378			79,566

Total loans (f)		186,139			194,637			198,498			202,609			210,475			220,376			207,915			232,073			220,230
Equity		16,000			16,000			18,400			18,400			18,400			18,400			18,400			17,543			17,267

Headcount (g)		26,874			26,777			25,733			26,382			26,547			27,496			25,733			27,914			29,078


(a)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to Card. 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)		Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. For further details regarding the Firm’s application and impact of the new guidance, see note (a) on page 17.

(c)		Includes the impact of revenue sharing agreements with other JPMorgan Chase business segments. For periods prior to January 1, 2010, also includes net securitization income/(loss).

(d)		Total net revenue included tax-equivalent adjustments associated with tax-exempt loans to certain qualified entities of $1 million, $1 million, $1 million, $2 million, $2 million and $2 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and $7 million, $13 million and $17 million for full year 2010, 2009 and 2008, respectively.

(e)		Total period-end loans include loans held-for-sale of $4.0 billion, $2.2 billion, $39 million, $249 million, $2.3 billion, $1.7 billion and $1.8 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, 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.

(f)		Total average loans include loans held-for-sale of $276 million, $3.0 billion, $593 million, $112 million, $1.8 billion, and $2.6 billion for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, and March 31, 2010, respectively, and $1.3 billion, $1.8 billion and $2.5 billion for full year 2010, 2009 and 2008, respectively. These amounts are excluded when calculating the net charge-off rate.

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

NA:		Not applicable

Page 10


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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
CREDIT DATA AND QUALITY STATISTICS (a)(b)
Net charge-offs
Card	$	1,810		$	2,226		$	2,671		$	3,133		$	3,721		$	4,512		$	14,037		$	16,077		$	8,159
Auto		19			47			71			67			58			102			298			627			568
Student		135			80			118			84			112			73			387			253			46

Total net charge-offs		1,964			2,353			2,860			3,284			3,891			4,687			14,722			16,957			8,773
Net charge-off rate (c)
Card (d)		5.82	%		6.97	%		7.85	%		8.87	%		10.20	%		11.75	%		9.73	%		9.33	%		5.01	%
Auto		0.16			0.40			0.58			0.56			0.49			0.88			0.63			1.44			1.30
Student (e)		3.83			2.25			3.22			2.27			3.01			1.96			2.61			1.77			0.41
Total net charge-off rate		4.24			4.98			5.73			6.43			7.48			8.73			7.12			7.37			4.03
Delinquency rates (c)
30+ day delinquency rate
Card (f)		2.98			3.57			4.14			4.57			4.96			5.62			4.14			6.28			4.97
Auto		0.98			0.97			1.22			0.97			0.94			1.08			1.22			1.63			2.26
Student (g)(h)		1.70			2.01			1.53			1.77			1.43			1.74			1.53			1.50			0.63
Total 30+ day deliquency rate		2.38			2.79			3.23			3.49			3.77			4.33			3.23			5.02			4.26
90+ day delinquency rate — Card (f)		1.55			1.93			2.25			2.41			2.76			3.15			2.25			3.59			2.34

Nonperforming assets (i)	$	233		$	275		$	269		$	268		$	285		$	343		$	269		$	340		$	262
Allowance for loan losses
Card (j)		8,042			9,041			11,034			13,029			14,524			16,032			11,034			9,672			7,692
Auto and Student		879			899			899			1,048			1,046			1,046			899			1,042			741

Total allowance for loan losses		8,921			9,940			11,933			14,077			15,570			17,078			11,933			10,714			8,433
Allowance for loan losses to period-end loans
Card (f)(j)(k)		6.41	%		7.24	%		8.14	%		9.55	%		10.16	%		10.74	%		8.14	%		12.28	%		7.34	%
Auto and Student (g)		1.45			1.46			1.43			1.67			1.68			1.68			1.43			1.73			1.31
Total allowance for loan losses to period-end loans		4.79			5.33			6.02			7.06			7.58			8.07			6.02			7.72			5.22

BUSINESS METRICS
Card, excluding Commercial Card (a)
Sales volume (in billions)	$	85.5		$	77.5		$	85.9		$	79.6		$	78.1		$	69.4		$	313.0		$	294.1		$	298.5
New accounts opened		2.0			2.6			3.4			2.7			2.7			2.5			11.3			10.2			14.9
Open accounts		65.4	(m)		91.9			90.7			89.0			88.9			88.9			90.7			93.3			109.5
Merchant Services (l)
Bank card volume (in billions)	$	137.3		$	125.7		$	127.2		$	117.0		$	117.1		$	108.0		$	469.3		$	409.7		$	713.9
Total transactions (in billions)		5.9			5.6			5.6			5.2			5.0			4.7			20.5			18.0			21.4
Auto and Student
Origination volume (in billions)
Auto	$	5.4		$	4.8		$	4.8		$	6.1		$	5.8		$	6.3		$	23.0		$	23.7		$	19.4
Student		—			0.1			—			0.2			0.1			1.6			1.9			4.2			6.9


(a)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to Card. 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)		Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. For further details regarding the Firm’s application and impact of the new guidance, see note (a) on page 17.

(c)		Results reflect the impact of fair value accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust (“WMMT”) in the second quarter of 2009. Periods after the first quarter of 2010 were not affected.

(d)		Average loans included 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 $148 million for full year 2010. There were no loans held-for-sale for all other periods. 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 9.72% for full year 2010.

(e)		Average loans included loans held-for-sale of $7 million, $112 million, $1.8 billion and $2.6 billion for the quarters ended December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and $1.1 billion, $1.8 billion and $2.5 billion for full year 2010, 2009 and 2008, respectively. There were no loans held-for-sale for all other periods. These amounts are excluded when calculating the net charge-off rate.

(f)		Period-end loans included 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 for all other periods. 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.

(g)		Period-end loans included loans held-for-sale of $39 million, $249 million, $2.3 billion, $1.7 billion and $1.8 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, respectively. There were no loans held-for sale for all other periods. These amounts are excluded when calculating the allowance for loan losses to period-end loans and the 30+ day delinquency rate.

(h)		Excludes student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $968 million, $1.0 billion, $1.1 billion, $1.0 billion, $988 million, $965 million, $942 million and $824 million at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(i)		At June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, nonperforming assets excluded student loans insured by U.S. government agencies under the FFELP of $558 million, $615 million, $625 million, $572 million, $447 million, $581 million, $542 million and $437 million, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(j)		Based on loans on the Consolidated Balance Sheets.

(k)		Includes $1.0 billion of loans at December 31, 2009, held by the WMMT, which were consolidated onto the Card balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of December 31, 2009. Excluding these loans, the allowance for loan losses to period-end loans was 12.43% as of December 31, 2009.

(l)		The Chase Paymentech Solutions joint venture was dissolved effective November 1, 2008. JPMorgan Chase retained approximately 51% of the business and operates the business under the name Chase Paymentech Solutions. For the period January 1 through October 31, 2008, the data presented represents activity for the Chase Paymentech Solutions joint venture, and for the period November 1, 2008 through June 30, 2011, the data presented represents activity for Chase Paymentech Solutions.

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

Page 11


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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
SUPPLEMENTAL INFORMATION (a)(b)
Card, excluding Washington Mutual portfolio
Loans (period-end)	$	113,766		$	116,395		$	123,943		$	121,932		$	127,379		$	132,056		$	123,943		$	143,759		$	162,067
Average loans		112,984			119,411			121,493			124,933			129,847			137,183			128,312			148,765			155,895
Net interest income (c)		8.60	%		9.09	%		9.16	%		8.98	%		8.47	%		8.86	%		8.86	%		8.97	%		8.16	%
Net revenue (c)		12.01			11.57			11.78			11.33			10.91			10.90			11.22			10.63			9.81
Risk adjusted margin (c)(d)		8.71			10.28			10.26			6.76			4.21			2.43			5.81			1.39			3.93
Net charge-off rate (e)		5.22			6.13			7.08			8.06			9.02			10.54			8.72			8.45			4.92
30+ day delinquency rate		2.71			3.22			3.66			4.13			4.48			4.99			3.66			5.52			4.36
90+ day delinquency rate		1.41			1.71			1.98			2.16			2.47			2.74			1.98			3.13			2.09

Card, excluding Washington Mutual and Commercial Card portfolios
Loans (period-end)	$	112,366		$	115,016		$	123,943		$	121,932		$	127,379		$	132,056		$	123,943		$	143,759		$	162,067
Average loans		111,641			118,145			121,493			124,933			129,847			137,183			128,312			148,765			155,895
Net interest income (c)		8.77	%		9.25	%		9.16	%		8.98	%		8.47	%		8.86	%		8.86	%		8.97	%		8.16	%
Net revenue (c)		11.95			11.51			11.78			11.33			10.91			10.90			11.22			10.63			9.81
Risk adjusted margin (c)(d)		8.61			10.21			10.26			6.76			4.21			2.43			5.81			1.39			3.93
Net charge-off rate (e)		5.28			6.20			7.08			8.06			9.02			10.54			8.72			8.45			4.92
30+ day delinquency rate		2.73			3.25			3.66			4.13			4.48			4.99			3.66			5.52			4.36
90+ day delinquency rate		1.42			1.73			1.98			2.16			2.47			2.74			1.98			3.13			2.09


(a)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to Card. 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)		Supplemental information is provided for Card, 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.

(c)		As a percentage of average loans.

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

(e)		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 $148 million for full year 2010, and are included when calculating the net charge-off rate. There were no loans held-for-sale for all other periods.

Page 12



JPMORGAN CHASE & CO. CARD SERVICES & AUTO — RECONCILIATION FROM REPORTED TO MANAGED SUMMARY (a) FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data)


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008

INCOME STATEMENT DATA
Credit card income
Reported	$	1,123		$	898		$	928		$	864		$	909		$	813		$	3,514		$	5,107		$	6,082
Securitization adjustments (a)	NA			NA			NA			NA			NA			NA			NA				(1,494	)		(3,314	)

Managed credit card income	$	1,123		$	898		$	928		$	864		$	909		$	813		$	3,514		$	3,613		$	2,768


Net interest income
Reported	$	3,454		$	3,743		$	3,966		$	4,023		$	3,934		$	4,264		$	16,187		$	11,543		$	8,576
Securitization adjustments (a)	NA			NA			NA			NA			NA			NA			NA				7,937			6,917
Fully tax-equivalent adjustments		1			1			1			2			2			2			7			13			17

Managed net interest income	$	3,455		$	3,744		$	3,967		$	4,025		$	3,936		$	4,266		$	16,194		$	19,493		$	15,510


Total net revenue
Reported	$	4,760		$	4,790		$	5,071		$	5,083		$	5,060		$	5,251		$	20,465		$	16,743		$	15,219
Securitization adjustments (a)	NA			NA			NA			NA			NA			NA			NA				6,443			3,603
Fully tax-equivalent adjustments		1			1			1			2			2			2			7			13			17

Managed total net revenue	$	4,761		$	4,791		$	5,072		$	5,085		$	5,062		$	5,253		$	20,472		$	23,199		$	18,839


Provision for credit losses
Reported	$	944		$	353		$	709		$	1,784		$	2,391		$	3,686		$	8,570		$	13,205		$	7,328
Securitization adjustments (a)	NA			NA			NA			NA			NA			NA			NA				6,443			3,603

Managed provision for credit losses	$	944		$	353		$	709		$	1,784		$	2,391		$	3,686		$	8,570		$	19,648		$	10,931


Income tax expense/(benefit)
Reported	$	718		$	986		$	947		$	581		$	361		$	(44	)	$	1,845		$	(1,286	)	$	594
Fully tax-equivalent adjustments		1			1			1			2			2			2			7			13			17

Managed income tax expense/(benefit)	$	719		$	987		$	948		$	583		$	363		$	(42	)	$	1,852		$	(1,273	)	$	611


BALANCE SHEETS — AVERAGE BALANCES
Total average assets
Reported	$	198,044		$	204,441		$	205,286		$	207,474		$	214,702		$	224,979		$	213,041		$	173,286		$	157,457
Securitization adjustments (a)	NA			NA			NA			NA			NA			NA			NA				82,233			76,904

Managed average assets	$	198,044		$	204,441		$	205,286		$	207,474		$	214,702		$	224,979		$	213,041		$	255,519		$	234,361


CREDIT DATA AND QUALITY STATISTICS
Net charge-offs
Reported	$	1,964		$	2,353		$	2,860		$	3,284		$	3,891		$	4,687		$	14,722		$	10,514		$	5,170
Securitization adjustments (a)	NA			NA			NA			NA			NA			NA			NA				6,443			3,603

Managed net charge-offs	$	1,964		$	2,353		$	2,860		$	3,284		$	3,891		$	4,687		$	14,722		$	16,957		$	8,773

Net charge-off rates
Reported		4.24	%		4.98	%		5.73	%		6.43	%		7.48	%		8.73	%		7.12	%		7.26	%		3.74	%
Securitized (a)	NA			NA			NA			NA			NA			NA			NA				7.55			4.53
Managed net charge-off rate		4.24			4.98			5.73			6.43			7.48			8.73			7.12			7.37			4.03


(a)		Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. As a result of the consolidation of the credit card securitization trusts, reported and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. For further details regarding the Firm’s application and impact of the new guidance, as well as additional information on managed basis, see note (a) on page 17.

NA: Not applicable.

Page 13



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


	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Dec 31
	2011			2011			2010			2010			2010			2010			2009			2008
NONPERFORMING ASSETS AND RATIOS
Wholesale
Loans retained	$	3,362		$	4,578		$	5,510		$	5,231		$	5,285		$	5,895		$	6,559		$	2,350
Loans held-for-sale and loans at fair value		214			289			496			409			375			331			345			32

Total wholesale loans		3,576			4,867			6,006			5,640			5,660			6,226			6,904			2,382


Consumer, excluding credit card
Home equity		1,308			1,263			1,263			1,251			1,211			1,427			1,665			1,394
Prime mortgage, including option ARMs		4,024			4,166			4,320			4,857			5,062			4,927			4,667			1,905
Subprime mortgage		2,058			2,106			2,210			2,649			3,115			3,331			3,248			2,690
Auto		111			120			141			145			155			174			177			148
Business banking		770			810			832			895			905			859			826			417
Student and other		79			107			67			64			68			103			74			13

Total consumer, excluding credit card		8,350			8,572			8,833			9,861			10,516			10,821			10,657			6,567

Total credit card		2			2			2			2			3			3			3			4

Total consumer nonaccrual loans (a)(b)		8,352			8,574			8,835			9,863			10,519			10,824			10,660			6,571

Total nonaccrual loans (c)		11,928			13,441			14,841			15,503			16,179			17,050			17,564			8,953


Derivative receivables		22			21			34			255			315			363			529			1,079
Assets acquired in loan satisfactions		1,290			1,524			1,682			1,898			1,662			1,606			1,648			2,682

Total nonperforming assets (a)		13,240			14,986			16,557			17,656			18,156			19,019			19,741			12,714
Wholesale lending-related commitments (d)		793			895			1,005			1,344			1,195			1,552			1,577			233

Total (a)	$	14,033		$	15,881		$	17,562		$	19,000		$	19,351		$	20,571		$	21,318		$	12,947


Total nonaccrual loans to total loans		1.73	%		1.96	%		2.14	%		2.25	%		2.31	%		2.39	%		2.77	%		1.20	%
Total wholesale nonaccrual loans to total wholesale loans		1.44			2.06			2.64			2.56			2.61			2.91			3.38			0.91
Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans		2.65			2.67			2.70			2.96			3.10			3.09			3.04			1.74

NONPERFORMING ASSETS BY LOB
Investment Bank	$	1,788		$	2,741		$	3,770		$	2,789		$	2,726		$	3,289		$	4,236		$	2,501
Retail Financial Services (b)		9,033			9,482			9,854			10,989			11,449			11,634			11,527			8,583
Card Services & Auto		233			275			269			268			285			343			340			262
Commercial Banking		1,831			2,134			2,197			3,227			3,285			3,186			2,989			1,142
Treasury & Securities Services		3			11			12			14			14			14			14			30
Asset Management		264			263			382			299			337			498			582			172
Corporate/Private Equity (e)		88			80			73			70			60			55			53			24

TOTAL	$	13,240		$	14,986		$	16,557		$	17,656		$	18,156		$	19,019		$	19,741		$	12,714


(a)		At June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and December 31, 2008, 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, $8.9 billion, $10.0 billion, $9.0 billion and $3.0 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, $1.4 billion, $707 million, $579 million and $364 million, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $558 million, $615 million, $625 million, $572 million, $447 million, $581 million, $542 million and $437 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)		Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. For further details regarding the Firm’s application and impact of the new guidance, see note (a) on page 17.

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

(e)		Predominantly relates to retained prime mortgage loans.

Page 14



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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	29,750		$	32,266		$	34,161		$	35,836		$	38,186		$	31,602		$	31,602		$	23,164		$	9,234
Cumulative effect of change in accounting principles (a)		—			—			—			—			—			7,494			7,494			—			—
Acquired allowance resulting from the Washington Mutual transaction		—			—			—			—			—			—			—			—			2,535
Net charge-offs (a)		3,103			3,720			5,104			4,945			5,714			7,910			23,673			22,965			9,835
Provision for loan losses (a)		1,872			1,196			3,207			3,244			3,380			6,991			16,822			31,735			21,237
Other (b)		1			8			2			26			(16	)		9			21			(332	)		(7	)

Ending balance	$	28,520		$	29,750		$	32,266		$	34,161		$	35,836		$	38,186		$	32,266		$	31,602		$	23,164


ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	688		$	717		$	873		$	912		$	940		$	939		$	939		$	659		$	850
Cumulative effect of change in accounting principles (a)		—			—			—			—			—			(18	)		(18	)		—			—
Provision for lending-related commitments		(62	)		(27	)		(164	)		(21	)		(17	)		19			(183	)		280			(258	)
Other		—			(2	)		8			(18	)		(11	)		—			(21	)		—			67

Ending balance	$	626		$	688		$	717		$	873		$	912		$	940		$	717		$	939		$	659


ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank (a)	$	1,178		$	1,330		$	1,863		$	1,976		$	2,149		$	2,601		$	1,863		$	3,756		$	3,444
Retail Financial Services (a)		15,479			15,554			15,554			15,106			15,106			15,154			15,554			13,734			8,177
Card Services & Auto (a)		8,921			9,940			11,933			14,077			15,570			17,078			11,933			10,714			8,433
Commercial Banking		2,614			2,577			2,552			2,661			2,686			3,007			2,552			3,025			2,826
Treasury & Securities Services		74			69			65			54			48			57			65			88			74
Asset Management		222			257			267			257			250			261			267			269			191
Corporate/Private Equity		32			23			32			30			27			28			32			16			19

Total	$	28,520		$	29,750		$	32,266		$	34,161		$	35,836		$	38,186		$	32,266		$	31,602		$	23,164


(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.

(b)		Other predominantly includes a reclassification in 2009 related to the issuance and retention of securities from the Chase Issuance Trust.

Page 15



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


	QUARTERLY TRENDS																		FULL YEAR
	2Q11			1Q11			4Q10			3Q10			2Q10			1Q10			2010			2009			2008
BY LINE OF BUSINESS
Provision for loan losses
Investment Bank	$	(142	)	$	(409	)	$	(140	)	$	(158	)	$	(418	)	$	(477	)	$	(1,193	)	$	2,154		$	2,216
Retail Financial Services		994			1,199			2,418			1,397			1,545			3,559			8,919			14,768			9,035
Card Services & Auto		944			353			710			1,787			2,391			3,688			8,576			13,201			7,327
Commercial Banking		73			51			184			192			(143	)		204			437			1,314			505
Treasury & Securities Services		5			7			11			6			(8	)		(31	)		(22	)		34			52
Asset Management		7			5			22			23			15			31			91			183			87
Corporate/Private Equity		(9	)		(10	)		2			(3	)		(2	)		17			14			81			2,015

Total provision for loan losses	$	1,872		$	1,196		$	3,207		$	3,244		$	3,380		$	6,991		$	16,822		$	31,735		$	21,237


Provision for lending-related commitments
Investment Bank	$	(41	)	$	(20	)	$	(131	)	$	16		$	93		$	15		$	(7	)	$	125		$	(201	)
Retail Financial Services		—			—			—			—			—			—			—			(14	)		(2	)
Card Services & Auto		—			—			(1	)		(3	)		—			(2	)		(6	)		4			1
Commercial Banking		(19	)		(4	)		(32	)		(26	)		(92	)		10			(140	)		140			(41	)
Treasury & Securities Services		(7	)		(3	)		(1	)		(8	)		(8	)		(8	)		(25	)		21			30
Asset Management		5			—			1			—			(10	)		4			(5	)		5			(2	)
Corporate/Private Equity		—			—			—			—			—			—			—			(1	)		(43	)

Total provision for lending-related commitments	$	(62	)	$	(27	)	$	(164	)	$	(21	)	$	(17	)	$	19		$	(183	)	$	280		$	(258	)


Provision for credit losses
Investment Bank	$	(183	)	$	(429	)	$	(271	)	$	(142	)	$	(325	)	$	(462	)	$	(1,200	)	$	2,279		$	2,015
Retail Financial Services		994			1,199			2,418			1,397			1,545			3,559			8,919			14,754			9,033
Card Services & Auto		944			353			709			1,784			2,391			3,686			8,570			13,205			7,328
Commercial Banking		54			47			152			166			(235	)		214			297			1,454			464
Treasury & Securities Services		(2	)		4			10			(2	)		(16	)		(39	)		(47	)		55			82
Asset Management		12			5			23			23			5			35			86			188			85
Corporate/Private Equity		(9	)		(10	)		2			(3	)		(2	)		17			14			80			1,972

Total provision for credit losses		1,810			1,169			3,043			3,223			3,363			7,010			16,639			32,015			20,979
Card Services & Auto — securitized (a)(b)		NA			NA			NA			NA			NA			NA			NA			6,443			3,612

Managed provision for credit losses (a)	$	1,810		$	1,169		$	3,043		$	3,223		$	3,363		$	7,010		$	16,639		$	38,458		$	24,591



BY PORTFOLIO SEGMENT
Provision for loan losses
Wholesale	$	(55	)	$	(359	)	$	77		$	62		$	(555	)	$	(257	)	$	(673	)	$	3,684		$	3,536
Consumer, excluding credit card (b)		1,117			1,329			2,459			1,549			1,714			3,736			9,458			16,032			10,659
Credit card (b)		810			226			671			1,633			2,221			3,512			8,037			12,019			7,042

Total provision for loan losses	$	1,872		$	1,196		$	3,207		$	3,244		$	3,380		$	6,991		$	16,822		$	31,735		$	21,237


Provision for lending-related commitments
Wholesale	$	(62	)	$	(27	)	$	(163	)	$	(18	)	$	(17	)	$	21		$	(177	)	$	290		$	(209	)
Consumer, excluding credit card (b)		—			—			(1	)		(3	)		—			(2	)		(6	)		(10	)		(49	)
Credit card (b)		—			—			—			—			—			—			—			—			—

Total provision for lending-related commitments	$	(62	)	$	(27	)	$	(164	)	$	(21	)	$	(17	)	$	19		$	(183	)	$	280		$	(258	)


Provision for credit losses
Wholesale	$	(117	)	$	(386	)	$	(86	)	$	44		$	(572	)	$	(236	)	$	(850	)	$	3,974		$	3,327
Consumer, excluding credit card (b)		1,117			1,329			2,458			1,546			1,714			3,734			9,452			16,022			10,610
Credit card (b)		810			226			671			1,633			2,221			3,512			8,037			12,019			7,042

Total provision for credit losses		1,810			1,169			3,043			3,223			3,363			7,010			16,639			32,015			20,979
Credit card — securitized (a)		NA			NA			NA			NA			NA			NA			NA			6,443			3,612

Managed provision for credit losses (a)	$	1,810		$	1,169		$	3,043		$	3,223		$	3,363		$	7,010		$	16,639		$	38,458		$	24,591


(a)		Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. As a result of the consolidation of the credit card securitization trusts, reported and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. For further details regarding the Firm’s application and impact of the new guidance, see note (a) on page 17.

(b)		Includes adjustments to the provision for credit losses recognized in the Corporate/Private Equity segment related to the Washington Mutual transaction in 2008.

NA: Not applicable.

Page 16


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 these 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.

Prior to January 1, 2010, the Firm’s managed-basis presentation also included certain reclassification adjustments that assumed credit card loans securitized by Card remained on the balance sheet. Effective January 1, 2010, the Firm adopted new accounting guidance that required the Firm to consolidate its Firm-sponsored credit card securitization trusts. The income, expense and credit costs associated with these securitization activities are now recorded in the Consolidated Statements of Income in the same classifications that were previously used to report such items on a managed basis. As a result of the consolidation of the credit card securitization trusts, reported and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010.

As noted above, the presentation in 2009 and 2008 of Card results on a managed basis assumed that credit card loans that had been securitized and sold in accordance with U.S. GAAP remained on the Consolidated Balance Sheets, and that the earnings on the securitized loans were classified in the same manner as the earnings on retained loans recorded on the Consolidated Balance Sheets. JPMorgan Chase had used this managed basis information to evaluate the credit performance and overall financial performance of the entire managed credit card portfolio. Operations were funded and decisions were made about allocating resources, such as employees and capital, based on managed financial information. In addition, the same underwriting standards and ongoing risk monitoring are used for both loans on the Consolidated Balance Sheets and securitized loans. Although securitizations result in the sale of credit card receivables to a trust, JPMorgan Chase retains the ongoing customer relationships, as the customers may continue to use their credit cards; accordingly, the customer’s credit performance affects both the securitized loans and the loans retained on the Consolidated Balance Sheets. JPMorgan Chase believed that this managed-basis information was useful to investors, as it enabled them to understand both the credit risks associated with the loans reported on the Consolidated Balance Sheets and the Firm’s retained interests in securitized loans.

(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.

Page 17

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