JPMorgan Chase & Co. (JPM) 8-K Jpmorgan Chase Reports 2002 Third Quarter Results

Exhibit 99(b)

PRESS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2002

J.P. MORGAN CHASE & CO.
TABLE OF CONTENTS

	Page
JPMorgan Chase Consolidated
Statement of Income — Reported Basis		3
Lines of Business Financial Highlights Summary		4
Statement of Income — Operating Basis Excluding JPMorgan Partners		5
Statement of Income — Operating Basis		6
Reconciliation from Reported to Operating Basis		7
Segment Detail
Investment Bank		8
Treasury & Securities Services		9
Investment Management & Private Banking		10
JPMorgan Partners		11
Investment Portfolio — Private and Public Securities		12
Retail & Middle Market Financial Services		13
Business-Related Metrics		14
Supplemental Detail
Noninterest Revenue and Noninterest Expense Detail		15
Consolidated Balance Sheet		16
Condensed Average Balance Sheet and Annualized Yields		17
Credit-Related Information		18-20
Capital		21
Glossary of Terms		22

Page 2

J.P. MORGAN CHASE & CO.
STATEMENT OF INCOME — REPORTED BASIS
(in millions, except per share and ratio data)

		3QTR			2QTR			1QTR			4QTR			3QTR
		2002			2002			2002			2001			2001
REVENUE
Investment Banking Fees		$	545		$	785		$	755		$	931		$	811
Trading Revenue			(21	)		731			1,299			355			1,301
Fees and Commissions			3,005			2,885			2,584			2,493			2,397
Private Equity — Realized Gains (Losses)			(40	)		(10	)		(10	)		81			204
Private Equity — Unrealized Gains (Losses)			(275	)		(115	)		(228	)		(505	)		(311	)
Securities Gains			578			124			114			202			142
Other Revenue (a)			419			292			157			151			218
Total Noninterest Revenue			4,211			4,692			4,671			3,708			4,762
Interest Income			6,316			6,498			6,286			6,823			7,709
Interest Expense			3,580			3,616			3,359			3,879			5,050
Net Interest Income			2,736			2,882			2,927			2,944			2,659
Revenue before Provision for Credit Losses			6,947			7,574			7,598			6,652			7,421
Provision for Credit Losses (a)			1,836			821			753			1,468			745
	TOTAL NET REVENUE		5,111			6,753			6,845			5,184			6,676
EXPENSE
Compensation Expense			2,367			2,761			2,823			2,622			2,860
Occupancy Expense (b)			478			365			338			334			339
Technology and Communications Expense			625			629			665			640			663
Merger and Restructuring Costs			333			229			255			841			876
Amortization of Intangibles			80			92			69			187			182
Other Expense			1,168			1,118			1,208			1,128			1,087
	TOTAL NONINTEREST EXPENSE		5,051			5,194			5,358			5,752			6,007
Income (Loss) before Income Tax Expense and Effect of Accounting Change			60			1,559			1,487			(568	)		669
Income Tax Expense (Benefit)			20			531			505			(236	)		220
INCOME BEFORE EFFECT OF ACCOUNTING CHANGE			40			1,028			982			(332	)		449
Net Effect of Change in Accounting Principle			—			—			—			—			—
NET INCOME (LOSS)		$	40		$	1,028		$	982		$	(332	)	$	449
NET INCOME (LOSS) PER SHARE (c)
Basic		$	0.01		$	0.51		$	0.49		$	(0.18	)	$	0.22
Diluted			0.01			0.50			0.48			(0.18	)		0.22
PERFORMANCE RATIOS
Return on Average Assets			0.02	%		0.56	%		0.55	%	NM				0.24	%
Return on Average Common Equity			0.3			10.0			9.7		NM				4.2
FULL-TIME EQUIVALENT EMPLOYEES (d)			95,637			95,878			96,938			95,812			96,633

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002												YTD 2002
		Over (Under)						YEAR TO DATE						Over (Under)
		2Q 2002			3Q 2001			2002			2001			2001
REVENUE
Investment Banking Fees			(31	)%		(33	)%	$	2,085		$	2,681			(22	)%
Trading Revenue		NM			NM				2,009			4,563			(56	)
Fees and Commissions			4			25			8,474			6,988			21
Private Equity — Realized Gains (Losses)		NM			NM				(60	)		570		NM
Private Equity — Unrealized Gains (Losses)		NM				12			(618	)		(1,379	)		55
Securities Gains			366			307			816			664			23
Other Revenue (a)			43			92			868			747			16
Total Noninterest Revenue			(10	)		(12	)		13,574			14,834			(8	)
Interest Income			(3	)		(18	)		19,100			25,358			(25	)
Interest Expense			(1	)		(29	)		10,555			17,500			(40	)
Net Interest Income			(5	)		3			8,545			7,858			9
Revenue before Provision for Credit Losses			(8	)		(6	)		22,119			22,692			(3	)
Provision for Credit Losses (a)			124			146			3,410			1,714			99
	TOTAL NET REVENUE		(24	)		(23	)		18,709			20,978			(11	)
EXPENSE
Compensation Expense			(14	)		(17	)		7,951			9,222			(14	)
Occupancy Expense (b)			31			41			1,181			1,014			16
Technology and Communications Expense			(1	)		(6	)		1,919			1,991			(4	)
Merger and Restructuring Costs			45			(62	)		817			1,682			(51	)
Amortization of Intangibles			(13	)		(56	)		241			542			(56	)
Other Expense			4			7			3,494			3,393			3
	TOTAL NONINTEREST EXPENSE		(3	)		(16	)		15,603			17,844			(13	)
Income (Loss) before Income Tax Expense and Effect of Accounting Change			(96	)		(91	)		3,106			3,134			(1	)
Income Tax Expense (Benefit)			(96	)		(91	)		1,056			1,083			(2	)
INCOME BEFORE EFFECT OF ACCOUNTING CHANGE			(96	)		(91	)		2,050			2,051			—
Net Effect of Change in Accounting Principle		NM			NM				—			(25	)	NM
NET INCOME (LOSS)			(96	)		(91	)	$	2,050		$	2,026			1
NET INCOME (LOSS) PER SHARE (c)
Basic			(98	)		(95	)	$	1.01		$	1.00			1
Diluted			(98	)		(95	)		1.00			0.97			3
PERFORMANCE RATIOS
Return on Average Assets			(54	)bp		(22	)bp		0.38	%		0.37	%		1	bp
Return on Average Common Equity			(970	)		(390	)		6.5			6.4			10
FULL-TIME EQUIVALENT EMPLOYEES (d)			—	%		(1	)%

	Note: Prior periods have been restated to conform with current methodologies.
(a)	In the third quarter of 2002, the “Provision for Loan Losses” was re-named “Provision for Credit Losses” and now includes the aggregate amount of the provision for loan losses and provision for lending-related commitments. The prior period provision for lending-related commitments was re-classified from “Other Revenue” to the “Provision for Credit Losses” category.
(b)	In the third quarter of 2002, $98 million (pre-tax) in real estate reserves were recorded in “Occupancy Expense” on a reported basis and treated as a special item on an operating basis.
(c)	Basic and diluted earnings per share have been reduced by $0.01 in the first nine months of 2001 due to the impact of the adoption of SFAS 133 relating to the accounting for derivative instruments and hedging activities.
(d)	Represents actual period end amount for each respective quarter.

Page 3

J.P. MORGAN CHASE & CO.
LINES OF BUSINESS FINANCIAL HIGHLIGHTS SUMMARY
(in millions, except per share and ratio data)

		3QTR			2QTR			1QTR			4QTR			3QTR
		2002			2002			2002			2001			2001
OPERATING REVENUE
Investment Bank		$	2,433		$	3,098		$	3,610		$	3,083		$	3,541
Treasury & Securities Services			1,022			983			933			936			972
Investment Management & Private Banking			691			729			763			746			757
Retail & Middle Market Financial Services			3,732			3,468			3,119			2,923			2,843
Corporate (a)			(216	)		(186	)		(205	)		(321	)		(247	)
	OPERATING REVENUE EXCLUDING JPMP		7,662			8,092			8,220			7,367			7,866
JPMorgan Partners			(361	)		(184	)		(301	)		(451	)		(175	)
	OPERATING REVENUE (b)	$	7,301		$	7,908		$	7,919		$	6,916		$	7,691
EARNINGS
Investment Bank		$	(256	)	$	486		$	753		$	369		$	702
Treasury & Securities Services			212			174			142			157			172
Investment Management & Private Banking			98			111			126			97			124
Retail & Middle Market Financial Services			807			694			529			334			421
Corporate (a)			(252	)		(117	)		(154	)		(257	)		(133	)
	OPERATING EARNINGS EXCLUDING JPMP		609			1,348			1,396			700			1,286
JPMorgan Partners			(284	)		(169	)		(246	)		(344	)		(153	)
	OPERATING EARNINGS (b)		325			1,179			1,150			356			1,133
Special Items & Net Effect of Change in Acctng Principle			(285	)		(151	)		(168	)		(579	)		(587	)
Amortization of Goodwill, Net of Taxes			—			—			—			(109	)		(97	)
	NET INCOME (LOSS) (b)	$	40		$	1,028		$	982		$	(332	)	$	449
EARNINGS PER SHARE — DILUTED
OPERATING EARNINGS EXCLUDING JPMP		$	0.30		$	0.66		$	0.69		$	0.34		$	0.63
Impact of JPMP			(0.14	)		(0.08	)		(0.12	)		(0.17	)		(0.08	)
OPERATING EARNINGS (b)			0.16			0.58			0.57			0.17			0.55
Special Items & Net Effect of Change in Acctng Principle			(0.15	)		(0.08	)		(0.09	)		(0.29	)		(0.29	)
Amortization of Goodwill, Net of Taxes			—			—			—			(0.05	)		(0.04	)
	NET INCOME (LOSS) (b)	$	0.01		$	0.50		$	0.48		$	(0.18	)(c)	$	0.22
OPERATING RETURN ON COMMON EQUITY
Investment Bank		NM				10.4	%		16.0	%		7.7	%		15.1	%
Treasury & Securities Services			28.3	%		22.9			19.4			21.5			23.3
Investment Management & Private Banking			6.4			7.1			8.3			6.2			7.9
Retail & Middle Market Financial Services			30.4			26.6			21.0			13.8			17.8
OPERATING RETURN ON COMMON EQUITY (b)			2.9			11.4			11.4			3.3			10.7

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002												YTD 2002
		Over (Under)						YEAR TO DATE						Over (Under)
		2Q 2002			3Q 2001			2002			2001			2001
OPERATING REVENUE
Investment Bank			(21	)%		(31	)%	$	9,141		$	11,584			(21	)%
Treasury & Securities Services			4			5			2,938			2,885			2
Investment Management & Private Banking			(5	)		(9	)		2,183			2,436			(10	)
Retail & Middle Market Financial Services			8			31			10,319			8,194			26
Corporate (a)			(16	)		13			(607	)		(649	)		6
	OPERATING REVENUE EXCLUDING JPMP		(5	)		(3	)		23,974			24,450			(2	)
JPMorgan Partners			(96	)	NM				(846	)		(974	)		13
	OPERATING REVENUE (b)		(8	)		(5	)	$	23,128		$	23,476			(1	)
EARNINGS
Investment Bank		NM			NM			$	983		$	2,510			(61	)
Treasury & Securities Services			22			23			528			485			9
Investment Management & Private Banking			(12	)		(21	)		335			366			(8	)
Retail & Middle Market Financial Services			16			92			2,030			1,249			63
Corporate (a)		NM				(89	)		(523	)		(397	)		(32	)
	OPERATING EARNINGS EXCLUDING JPMP		(55	)		(53	)		3,353			4,213			(20	)
JPMorgan Partners			(68	)		(86	)		(699	)		(767	)		9
	OPERATING EARNINGS (b)		(72	)		(71	)		2,654			3,446			(23	)
Special Items & Net Effect of Change in Acctng Principle			(89	)		51			(604	)		(1,136	)		47
Amortization of Goodwill, Net of Taxes		NM			NM				—			(284	)	NM
	NET INCOME (LOSS) (b)		(96	)		(91	)	$	2,050		$	2,026			1
EARNINGS PER SHARE — DILUTED
OPERATING EARNINGS EXCLUDING JPMP			(55	)		(52	)	$	1.65		$	2.05			(20	)
Impact of JPMP			75			75			(0.35	)		(0.38	)		(8	)
OPERATING EARNINGS (b)			(72	)		(71	)		1.30			1.67			(22	)
Special Items & Net Effect of Change in Acctng Principle			(88	)		48			(0.30	)		(0.56	)		46
Amortization of Goodwill, Net of Taxes		NM			NM				—			(0.14	)	NM
NET INCOME (LOSS) (b)			(98	)		(95	)	$	1.00		$	0.97			3
OPERATING RETURN ON COMMON EQUITY
Investment Bank		NM			NM				7.0	%		17.5	%		(1,050	)bp
Treasury & Securities Services			540	bp		500	bp		23.6			21.8			180
Investment Management & Private Banking			(70	)		(150	)		7.2			7.6			(40	)
Retail & Middle Market Financial Services			380			1,260			26.1			18.3			780
OPERATING RETURN ON COMMON EQUITY (b)			(850	)		(780	)		8.5			10.9			(240	)

(a)	Includes Support Units and the effect remaining at the corporate level after the implementation of management accounting policies.
(b)	Represents consolidated JPMorgan Chase.
(c)	Diluted EPS is reported as $(0.18) which is the same as basic EPS, instead of $(0.17), since using diluted average shares outstanding would cause antidilution. As a result, the net loss earnings per share does not foot by $(0.01).

Page 4

J.P. MORGAN CHASE & CO.
STATEMENT OF INCOME — OPERATING BASIS EXCLUDING JPMORGAN
PARTNERS (in millions, except per share and ratio data)

		3QTR			2QTR			1QTR			4QTR			3QTR
		2002			2002			2002			2001			2001
OPERATING REVENUE
Investment Banking Fees		$	545		$	785		$	755		$	932		$	812
Trading-Related Revenue (Including Trading NII)			363			1,123			1,710			896			1,608
Fees and Commissions			2,749			2,725			2,466			2,297			2,289
Private Equity — Realized Gains (Losses)			1			1			3			(26	)		—
Private Equity — Unrealized Gains (Losses)			(17	)		(1	)		14			—			(5	)
Securities Gains			578			124			114			202			142
Other Revenue			416			278			133			158			206
Net Interest Income (Excluding Trading NII)			3,027			3,057			3,025			2,908			2,814
	TOTAL OPERATING REVENUE		7,662			8,092			8,220			7,367			7,866
OPERATING EXPENSE
Compensation Expense			2,330			2,724			2,782			2,583			2,825
Noncompensation Expense			2,202			2,157			2,233			2,085			2,092
	TOTAL OPERATING EXPENSE		4,532			4,881			5,015			4,668			4,917
Credit Costs			2,190			1,155			1,074			1,732			1,015
Operating Income before Taxes			940			2,056			2,131			967			1,934
Income Taxes			331			708			735			267			648
OPERATING EARNINGS		$	609		$	1,348		$	1,396		$	700		$	1,286
OPERATING BASIS
Diluted Earnings per Share		$	0.30		$	0.66		$	0.69		$	0.34		$	0.63
Return on Common Equity			6.4	%		15.2	%		16.2	%		7.7	%		14.3	%
Overhead Ratio			59			60			61			63			63
Compensation Expense as a % of Operating Revenue			30			34			34			35			36
Noncompensation Expense as a % of Operating Revenue			29			27			27			28			27

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002												YTD 2002
		Over (Under)						YEAR TO DATE						Over (Under)
		2Q 2002			3Q 2001			2002			2001			2001
OPERATING REVENUE
Investment Banking Fees			(31	)%		(33	)%	$	2,085		$	2,682			(22	)%
Trading-Related Revenue (Including Trading NII)			(68	)		(77	)		3,196			5,343			(40	)
Fees and Commissions			1			20			7,940			6,761			17
Private Equity — Realized Gains (Losses)			—		NM				5			2			150
Private Equity — Unrealized Gains (Losses)		NM			NM				(4	)		(26	)		85
Securities Gains			366			307			816			664			23
Other Revenue			50			102			827			737			12
Net Interest Income (Excluding Trading NII)			(1	)		8			9,109			8,287			10
	TOTAL OPERATING REVENUE		(5	)		(3	)		23,974			24,450			(2	)
OPERATING EXPENSE
Compensation Expense			(14	)		(18	)		7,836			9,110			(14	)
Noncompensation Expense			2			5			6,592			6,380			3
	TOTAL OPERATING EXPENSE		(7	)		(8	)		14,428			15,490			(7	)
Credit Costs			90			116			4,419			2,498			77
Operating Income before Taxes			(54	)		(51	)		5,127			6,462			(21	)
Income Taxes			(53	)		(49	)		1,774			2,249			(21	)
OPERATING EARNINGS			(55	)		(53	)	$	3,353		$	4,213			(20	)
OPERATING BASIS
Diluted Earnings per Share			(55	)		(52	)	$	1.65		$	2.05			(20	)
Return on Common Equity			(880	)bp		(790	)bp		12.5	%		16.0	%		(350	)bp
Overhead Ratio			(100	)		(400	)		60			63			(300	)
Compensation Expense as a % of Operating Revenue			(400	)		(600	)		33			37			(400	)
Noncompensation Expense as a % of Operating Revenue			200			200			27			26			100

Page 5

J.P. MORGAN CHASE & CO.
STATEMENT OF INCOME — OPERATING BASIS
(in millions, except per share and ratio data)

		3QTR			2QTR			1QTR			4QTR			3QTR
		2002			2002			2002			2001			2001
OPERATING REVENUE
Investment Banking Fees		$	545		$	785		$	755		$	931		$	811
Trading-Related Revenue (Including Trading NII)			365			1,136			1,720			904			1,614
Fees and Commissions			2,768			2,745			2,493			2,340			2,297
Private Equity — Realized Gains (Losses)			(40	)		(10	)		(10	)		81			204
Private Equity — Unrealized Gains (Losses)			(275	)		(115	)		(228	)		(505	)		(311	)
Securities Gains			578			124			114			202			142
Other Revenue			409			273			137			138			209
Net Interest Income (Excluding Trading NII)			2,951			2,970			2,938			2,825			2,725
	TOTAL OPERATING REVENUE		7,301			7,908			7,919			6,916			7,691
OPERATING EXPENSE
Compensation Expense			2,367			2,761			2,823			2,622			2,860
Noncompensation Expense			2,253			2,204			2,280			2,138			2,125
	TOTAL OPERATING EXPENSE		4,620			4,965			5,103			4,760			4,985
Credit Costs			2,190			1,155			1,074			1,732			1,015
Operating Income before Taxes			491			1,788			1,742			424			1,691
Income Taxes			166			609			592			68			558
OPERATING EARNINGS		$	325		$	1,179		$	1,150		$	356		$	1,133
OPERATING BASIS
Diluted Earnings per Share		$	0.16		$	0.58		$	0.57		$	0.17		$	0.55
SVA			(964	)		(57	)		(59	)		(915	)		(136	)
Return on Managed Assets			0.17	%		0.62	%		0.63	%		0.19	%		0.59	%
Return on Common Equity			2.9			11.4			11.4			3.3			10.7
Overhead Ratio			63			63			64			69			65
Common Dividend Payout Ratio			222			59			60			199			61
Effective Tax Rate			34			34			34			16			33
Compensation Expense as a % of Operating Revenue			32			35			36			38			37
Noncompensation Expense as a % of Operating Revenue			31			28			29			31			28

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002												YTD 2002
		Over (Under)						YEAR TO DATE						Over (Under)
		2Q 2002			3Q 2001			2002			2001			2001
OPERATING REVENUE
Investment Banking Fees			(31	)%		(33	)%	$	2,085		$	2,681			(22	)%
Trading-Related Revenue (Including Trading NII)			(68	)		(77	)		3,221			5,375			(40	)
Fees and Commissions			1			21			8,006			6,801			18
Private Equity — Realized Gains (Losses)		NM			NM				(60	)		570		NM
Private Equity — Unrealized Gains (Losses)		NM				12			(618	)		(1,379	)		55
Securities Gains			366			307			816			664			23
Other Revenue			50			96			819			743			10
Net Interest Income (Excluding Trading NII)			(1	)		8			8,859			8,021			10
	TOTAL OPERATING REVENUE		(8	)		(5	)		23,128			23,476			(1	)
OPERATING EXPENSE
Compensation Expense			(14	)		(17	)		7,951			9,222			(14	)
Noncompensation Expense			2			6			6,737			6,506			4
	TOTAL OPERATING EXPENSE		(7	)		(7	)		14,688			15,728			(7	)
Credit Costs			90			116			4,419			2,498			77
Operating Income before Taxes			(73	)		(71	)		4,021			5,250			(23	)
Income Taxes			(73	)		(70	)		1,367			1,804			(24	)
OPERATING EARNINGS			(72	)		(71	)	$	2,654		$	3,446			(23	)
OPERATING BASIS
Diluted Earnings per Share			(72	)		(71	)	$	1.30		$	1.67			(22	)
SVA		NM			NM				(1,080	)		(332	)	NM
Return on Managed Assets			(45	)bp		(42	)bp		0.47	%		0.61	%		(14	)bp
Return on Common Equity			(850	)		(780	)		8.5			10.9			(240	)
Overhead Ratio			—			(200	)		64			67			(300	)
Common Dividend Payout Ratio		NM			NM				79			60			1,900
Effective Tax Rate			—			100			34			34			—
Compensation Expense as a % of Operating Revenue			(300	)		(500	)		34			39			(500	)
Noncompensation Expense as a % of Operating Revenue			300			300			29			28			100

Note: Prior periods have been restated to conform with current methodologies.

Page 6

J.P. MORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO OPERATING BASIS
(in millions)

		3QTR			2QTR			1QTR			4QTR			3QTR
		2002			2002			2002			2001			2001
REVENUE
TRADING REVENUE
	Reported	$	(21	)	$	731		$	1,299		$	355		$	1,301
	Trading-Related NII		386			405			421			549			313
	Operating	$	365		$	1,136		$	1,720		$	904		$	1,614
CREDIT CARD REVENUE (a)
	Reported	$	806		$	669		$	587		$	662		$	548
	Credit Card Securitizations		(237	)		(140	)		(91	)		(153	)		(100	)
	Operating	$	569		$	529		$	496		$	509		$	448
OTHER REVENUE
	Reported	$	419		$	292		$	157		$	151		$	218
	Credit Card Securitizations		(10	)		(19	)		(20	)		(13	)		(9	)
	Operating	$	409		$	273		$	137		$	138		$	209
NET INTEREST INCOME
	Reported	$	2,736		$	2,882		$	2,927		$	2,944		$	2,659
	Credit Card Securitizations		601			493			432			430			379
	Trading-Related NII		(386	)		(405	)		(421	)		(549	)		(313	)
	Operating	$	2,951		$	2,970		$	2,938		$	2,825		$	2,725
TOTAL REVENUE
	Reported	$	6,947		$	7,574		$	7,598		$	6,652		$	7,421
	Credit Card Securitizations		354			334			321			264			270
	Total Operating Revenue	$	7,301		$	7,908		$	7,919		$	6,916		$	7,691
EXPENSE
	Reported	$	5,051		$	5,194		$	5,358		$	5,752		$	6,007
	Merger and Restructuring Costs		(333	)		(229	)		(255	)		(841	)		(876	)
	Real Estate Reserves		(98	)		—			—			—			—
	Amortization of Goodwill		—			—			—			(151	)		(146	)
	Operating Expense	$	4,620		$	4,965		$	5,103		$	4,760		$	4,985
CREDIT COSTS
	Provision for Credit Losses — Reported	$	1,836		$	821		$	753		$	1,468		$	745
	Credit Card Securitizations		354			334			321			264			270
	Credit Costs — Operating	$	2,190		$	1,155		$	1,074		$	1,732		$	1,015

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002												YTD 2002
		Over (Under)						YEAR TO DATE						Over (Under)
	��	2Q 2002			3Q 2001			2002			2001			2001
REVENUE
TRADING REVENUE
	Reported	NM			NM			$	2,009		$	4,563			(56	)%
	Trading-Related NII		(5	)%		23	%		1,212			812			49
	Operating		(68	)		(77	)	$	3,221		$	5,375			(40	)
CREDIT CARD REVENUE (a)
	Reported		20			47		$	2,062		$	1,446			43
	Credit Card Securitizations		(69	)	NM				(468	)		(187	)	NM
	Operating		8			27		$	1,594		$	1,259			27
OTHER REVENUE
	Reported		43			92		$	868		$	747			16
	Credit Card Securitizations		(47	)		11			(49	)		(4	)	NM
	Operating		50			96		$	819		$	743			10
NET INTEREST INCOME
	Reported		(5	)		3		$	8,545		$	7,858			9
	Credit Card Securitizations		22			59			1,526			975			57
	Trading-Related NII		5			(23	)		(1,212	)		(812	)		(49	)
	Operating		(1	)		8		$	8,859		$	8,021			10
TOTAL REVENUE
	Reported		(8	)		(6	)	$	22,119		$	22,692			(3	)
	Credit Card Securitizations		6			31			1,009			784			29
	Total Operating Revenue		(8	)		(5	)	$	23,128		$	23,476			(1	)
EXPENSE
	Reported		(3	)		(16	)	$	15,603		$	17,844			(13	)
	Merger and Restructuring Costs		45			(62	)		(817	)		(1,682	)		(51	)
	Real Estate Reserves	NM			NM				(98	)		—		NM
	Amortization of Goodwill	NM			NM				—			(434	)	NM
	Operating Expense		(7	)		(7	)	$	14,688		$	15,728			(7	)
CREDIT COSTS
	Provision for Credit Losses — Reported		124			146		$	3,410		$	1,714			99
	Credit Card Securitizations		6			31			1,009			784			29
	Credit Costs — Operating		90			116		$	4,419		$	2,498			77

(a) Included in Fees and Commissions.

SEGMENT DETAIL

 
J.P. MORGAN CHASE & CO.
INVESTMENT BANK
FINANCIAL HIGHLIGHTS

(in millions, except ratios)

			3QTR			2QTR			1QTR			4QTR			3QTR
OPERATING INCOME STATEMENT			2002			2002			2002			2001			2001
REVENUE:
Trading Revenue (Including Trading NII):
		Fixed Income and Other	$	624		$	1,022		$	1,493		$	957		$	1,262
		Equities		(254	)		95			201			63			239
				370			1,117			1,694			1,020			1,501
Investment Banking Fees				533			786			741			934			809
Net Interest Income				649			641			717			788			761
Fees and Commissions				418			416			379			362			346
Securities Gains				465			108			127			165			141
All Other Revenue				(2	)		30			(48	)		(186	)		(17	)
	TOTAL OPERATING REVENUE			2,433			3,098			3,610			3,083			3,541
EXPENSE:
Compensation Expense				790			1,156			1,179			1,134			1,252
Noncompensation Expense				857			869			932			744			893
	TOTAL OPERATING EXPENSE			1,647			2,025			2,111			1,878			2,145
Operating Margin				786			1,073			1,499			1,205			1,396
Credit Costs				1,316			306			282			617			268
Operating Income (Loss) Before Taxes				(530	)		767			1,217			588			1,128
Income Taxes (Benefit)				(274	)		281			464			219			426
OPERATING EARNINGS (LOSS)			$	(256	)	$	486		$	753		$	369		$	702
Average Common Equity			$	18,248		$	18,574		$	19,021		$	18,836		$	18,335
Average Assets				493,657			503,029			467,160			510,625			513,140
SVA				(812	)		(74	)		185			(206	)		143
Return on Common Equity				NM			10.4	%		16.0	%		7.7	%		15.1	%
Overhead Ratio				68	%		65			58			61			61
Compensation Expense as a % of Operating Revenue				32			37			33			37			35
BUSINESS REVENUE:
INVESTMENT BANKING FEES
		Advisory	$	141		$	195		$	193		$	269		$	333
		Underwriting and Other Fees		392			591			548			665			476
TOTAL				533			786			741			934			809
CAPITAL MARKETS
		Fixed Income		1,298			1,667			2,043			1,345			1,906
		Treasury		610			269			385			487			364
		Equities		(8	)		376			441			317			462
TOTAL				1,900			2,312			2,869			2,149			2,732
TOTAL OPERATING REVENUE			$	2,433		$	3,098		$	3,610		$	3,083		$	3,541
MEMO:
CAPITAL MARKETS TOTAL RETURN REVENUE (a)
		Fixed Income	$	1,332		$	1,739		$	2,000		$	1,376		$	1,893
		Treasury		363			214			469			309			(19	)
		Equities		(8	)		376			441			317			462
TOTAL			$	1,687		$	2,329		$	2,910		$	2,002		$	2,336
MARKET SHARE / RANKINGS: (b)
Global Syndicated Loans				21.6%/#1			27.9%/#1			21.6%/#1			24.4%/#1			21.7%/#1
U.S. Investment Grade Bonds				14.3%/#2			17.6%/#2			15.9%/#2			13.2%/#2			14.7%/#2
Euro-Denominated Corporate International Bonds				4.8%/#9			5.3%/#7			5.8%/#4			6.1%/#6			9.5%/#1
Global Equity and Equity-Related				1.8%/#12			6.1%/#7			4.8%/#6			5.0%/#8			5.1%/#7
U.S. Equity and Equity-Related				3.9%/#7			8.4%/#6			4.5%/#7			7.7%/#5			5.5%/#7
Global Announced M&A				14.5%/#4			18.6%/#3			13.7%/#8			25.7%/#3			31.2%/#5

[Additional columns below]

[Continued from above table, first column(s) repeated]

			3QTR 2002												YTD 2002
			Over (Under)						YEAR TO DATE						Over (Under)
OPERATING INCOME STATEMENT			2Q 2002			3Q 2001			2002			2001			2001
REVENUE:
Trading Revenue (Including Trading NII):
		Fixed Income and Other		(39	) %		(51	) %	$	3,139		$	4,020			(22	)  %
		Equities		NM			NM			42			1,127			(96	)
				(67	)		(75	)		3,181			5,147			(38	)
Investment Banking Fees				(32	)		(34	)		2,060			2,667			(23	)
Net Interest Income				1			(15	)		2,007			2,158			(7	)
Fees and Commissions				—			21			1,213			1,123			8
Securities Gains				331			230			700			373			88
All Other Revenue				NM			88			(20	)		116			NM
	TOTAL OPERATING REVENUE			(21	)		(31	)		9,141			11,584			(21	)
EXPENSE:
Compensation Expense				(32	)		(37	)		3,125			4,199			(26	)
Noncompensation Expense				(1	)		(4	)		2,658			2,784			(5	)
	TOTAL OPERATING EXPENSE			(19	)		(23	)		5,783			6,983			(17	)
Operating Margin				(27	)		(44	)		3,358			4,601			(27	)
Credit Costs				330			391			1,904			530			259
Operating Income (Loss) Before Taxes				NM			NM			1,454			4,071			(64	)
Income Taxes (Benefit)				NM			NM			471			1,561			(70	)
OPERATING EARNINGS (LOSS)				NM			NM		$	983		$	2,510			(61	)
Average Common Equity				(2	)		—		$	18,611		$	19,043			(2	)
Average Assets				(2	)		(4	)		488,046			510,185			(4	)
SVA				NM			NM			(701	)		779			NM
Return on Common Equity				NM			NM			7.0	%		17.5	%		(1,050	) bp
Overhead Ratio				300	bp		700	bp		63			60			300
Compensation Expense as a % of Operating Revenue				(500	)		(300	)		34			36			(200	)
BUSINESS REVENUE:
INVESTMENT BANKING FEES
		Advisory		(28	) %		(58	) %	$	529		$	979			(46	) %
		Underwriting and Other Fees		(34	)		(18	)		1,531			1,688			(9	)
TOTAL				(32	)		(34	)		2,060			2,667			(23	)
CAPITAL MARKETS
		Fixed Income		(22	)		(32	)		5,008			5,961			(16	)
		Treasury		127			68			1,264			1,034			22
		Equities		NM			NM			809			1,922			(58	)
TOTAL				(18	)		(30	)		7,081			8,917			(21	)
TOTAL OPERATING REVENUE				(21	)		(31	)	$	9,141		$	11,584			(21	)
MEMO:
CAPITAL MARKETS TOTAL RETURN REVENUE (a)
		Fixed Income		(23	)		(30	)	$	5,071		$	6,017			(16	)
		Treasury		70			NM			1,046			641			63
		Equities		NM			NM			809			1,922			(58	)
TOTAL				(28	)		(28	)	$	6,926		$	8,580			(19	)
MARKET SHARE / RANKINGS: (b)
Global Syndicated Loans										24.2%/#1			26.7%/#1
U.S. Investment Grade Bonds										16.1%/#2			14.5%/#2
Euro-Denominated Corporate International Bonds										5.4%/#4			7.4%/#2
Global Equity and Equity-Related										4.8%/#8			2.8%/#9
U.S. Equity and Equity-Related										5.9%/#7			2.3%/#8
Global Announced M&A										15.8%/#4			20.8%/#5

Note: Prior periods have been restated to conform with current methodologies.

(a)	Total return revenues include operating revenues plus the unrealized gains or losses on assets and liabilities in activities, primarily treasury, which are accounted for under accrual accounting.
(b)	Derived from Thomson Financial Securities Data which reflect subsequent updates to prior period information. Global announced M&A based on rank value; all others based on proceeds, with full credit to each book manager/equal if joint.

Page 8

 
J.P. MORGAN CHASE & CO.
TREASURY & SECURITIES SERVICES
FINANCIAL HIGHLIGHTS

(in millions, except ratios)

		3QTR			2QTR			1QTR			4QTR			3QTR
OPERATING INCOME STATEMENT		2002			2002			2002			2001			2001
REVENUE:
Fees and Commissions		$	595		$	608		$	586		$	564		$	554
Net Interest Income			326			322			313			328			355
All Other Revenue			101			53			34			44			63
	TOTAL OPERATING REVENUE		1,022			983			933			936			972
EXPENSE:
Compensation Expense			290			301			304			275			288
Noncompensation Expense			407			414			409			419			418
	TOTAL OPERATING EXPENSE		697			715			713			694			706
Operating Margin			325			268			220			242			266
Credit Costs			—			(1	)		1			4			1
Operating Income Before Taxes			325			269			219			238			265
Income Taxes			113			95			77			81			93
OPERATING EARNINGS		$	212		$	174		$	142		$	157		$	172
Average Common Equity		$	2,958		$	3,033		$	2,953		$	2,876		$	2,910
Average Assets			15,311			18,306			16,281			17,744			18,301
SVA			122			82			54			69			83
Return on Common Equity			28.3	%		22.9	%		19.4	%		21.5	%		23.3	%
Overhead Ratio			68			73			76			74			73
OPERATING REVENUE BY BUSINESS:
	Treasury Services	$	356		$	329		$	333		$	349		$	344
	Investor Services		394			428			392			392			434
	Institutional Trust Services		220			221			202			190			189
	Other		52			5			6			5			5
	Total Treasury & Securities Services	$	1,022		$	983		$	933		$	936		$	972

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002												YTD 2002
		Over (Under)						YEAR TO DATE						Over (Under)
OPERATING INCOME STATEMENT		2Q 2002			3Q 2001			2002			2001			2001
REVENUE:
Fees and Commissions			(2	)  %		7	%	$	1,789		$	1,667			7	%
Net Interest Income			1			(8	)		961			1,049			(8	)
All Other Revenue			91			60			188			169			11
	TOTAL OPERATING REVENUE		4			5			2,938			2,885			2
EXPENSE:
Compensation Expense			(4	)		1			895			876			2
Noncompensation Expense			(2	)		(3	)		1,230			1,257			(2	)
	TOTAL OPERATING EXPENSE		(3	)		(1	)		2,125			2,133			—
Operating Margin			21			22			813			752			8
Credit Costs			NM			NM			—			4			NM
Operating Income Before Taxes			21			23			813			748			9
Income Taxes			19			22			285			263			8
OPERATING EARNINGS			22			23		$	528		$	485			9
Average Common Equity			(2	)		2		$	2,982		$	2,949			1
Average Assets			(16	)		(16	)		16,629			17,938			(7	)
SVA			49			47			258			217			19
Return on Common Equity			540	bp		500	bp		23.6	%		21.8	%		180	bp
Overhead Ratio			(500	)		(500	)		72			74			(200	)
OPERATING REVENUE BY BUSINESS:
	Treasury Services		8	%		3	%	$	1,018		$	997			2	%
	Investor Services		(8	)		(9	)		1,214			1,296			(6	)
	Institutional Trust Services		—			16			643			577			11
	Other		NM			NM			63			15			320
	Total Treasury & Securities Services		4			5		$	2,938		$	2,885			2

Note: Prior periods have been restated to conform with current methodologies.

Page 9

 
J.P. MORGAN CHASE & CO.
INVESTMENT MANAGEMENT & PRIVATE BANKING
FINANCIAL HIGHLIGHTS

(in millions, except ratios)

			3QTR				2QTR			1QTR			4QTR			3QTR
OPERATING INCOME STATEMENT			2002				2002			2002			2001			2001
REVENUE:
Fees and Commissions			$	510			$	551		$	581		$	566		$	569
Net Interest Income				124				123			120			143			138
All Other Revenue				57				55			62			37			50
		TOTAL OPERATING REVENUE		691				729			763			746			757
EXPENSE:
Compensation Expense				263				258			283			285			299
Noncompensation Expense				288				311			295			314			292
		TOTAL OPERATING EXPENSE		551				569			578			599			591
Operating Margin				140				160			185			147			166
Credit Costs				25				23			23			30			3
Operating Income Before Taxes				115				137			162			117			163
Income Taxes				17				26			36			20			39
OPERATING EARNINGS			$	98			$	111		$	126		$	97		$	124
Average Common Equity			$	6,008			$	6,172		$	6,095		$	6,096		$	6,145
Average Assets				34,746				36,285			37,825			36,405			36,658
SVA				(85	)			(76	)		(56	)		(89	)		(63	)
Return on Common Equity				6.4	%			7.1	%		8.3	%		6.2	%		7.9	%
Overhead Ratio				80				78			76			80			78
(in billions)
ASSETS UNDER MANAGEMENT (a) (b)			$	492	(c	)	$	541		$	581		$	602		$	582
	Private Banking			118	(c	)		132			139			138			135
	Institutional			313	(c	)		341			373			404			390
	Retail			61	(c	)		68			69			60			57
ASSETS UNDER MANAGEMENT			$	492	(c	)	$	541		$	581		$	602		$	582
	Americas			343	(c	)		375			417			438			421
	Europe and Asia			149	(c	)		166			164			164			161
ASSETS UNDER MANAGEMENT			$	492	(c	)	$	541		$	581		$	602		$	582
	Fixed Income and Cash			283	(c	)		293			312			328			313
	Equities and Other			209	(c	)		248			269			274			269
CLIENT POSITIONS (b) (d)
	Private Banking		$	241	(c	)	$	277		$	276		$	299		$	300

[Additional columns below]

[Continued from above table, first column(s) repeated]

			3QTR 2002												YTD 2002
			Over (Under)						YEAR TO DATE						Over (Under)
OPERATING INCOME STATEMENT			2Q 2002			3Q 2001			2002			2001			2001
REVENUE:
Fees and Commissions				(7	)%		(10	)%	$	1,642		$	1,794			(8	)%
Net Interest Income				1			(10	)		367			443			(17	)
All Other Revenue				4			14			174			199			(13	)
		TOTAL OPERATING REVENUE		(5	)		(9	)		2,183			2,436			(10	)
EXPENSE:
Compensation Expense				2			(12	)		804			1,014			(21	)
Noncompensation Expense				(7	)		(1	)		894			940			(5	)
		TOTAL OPERATING EXPENSE		(3	)		(7	)		1,698			1,954			(13	)
Operating Margin				(13	)		(16	)		485			482			1
Credit Costs				9			NM			71			5			NM
Operating Income Before Taxes				(16	)		(29	)		414			477			(13	)
Income Taxes				(35	)		(56	)		79			111			(29	)
OPERATING EARNINGS				(12	)		(21	)	$	335		$	366			(8	)
Average Common Equity				(3	)		(2	)	$	6,091		$	6,324			(4	)
Average Assets				(4	)		(5	)		36,274			36,921			(2	)
SVA				(12	)		(35	)		(217	)		(210	)		(3	)
Return on Common Equity				(70	)bp		(150	)bp		7.2	%		7.6	%		(40	)bp
Overhead Ratio				200			200			78			80			(200	)
(in billions)
ASSETS UNDER MANAGEMENT (a) (b)				(9	)%		(15	)%
	Private Banking			(11	)		(13	)
	Institutional			(8	)		(20	)
	Retail			(10	)		7
ASSETS UNDER MANAGEMENT				(9	)		(15	)
	Americas			(9	)		(19	)
	Europe and Asia			(10	)		(7	)
ASSETS UNDER MANAGEMENT				(9	)		(15	)
	Fixed Income and Cash			(3	)		(10	)
	Equities and Other			(16	)		(22	)
CLIENT POSITIONS (b) (d)
	Private Banking			(13	)		(20	)

Note: Prior periods have been restated to conform with current methodologies.

(a)	Assets under management represent assets actively managed by Investment Management & Private Banking on behalf of institutional and Private Banking clients. Excludes assets managed at American Century Companies Inc.
(b)	Assets under management and client positions restated for transfer of certain clients to RMMFS.
(c)	Estimated
(d)	Client Positions represent assets under management as well as custody, restricted stock, deposit, brokerage and loan accounts.

Page 10

 
J.P. MORGAN CHASE & CO.
JPMORGAN PARTNERS
FINANCIAL HIGHLIGHTS

(in millions, except ratios)

				3QTR			2QTR			1QTR			4QTR			3QTR
				2002			2002			2002			2001			2001
OPERATING INCOME STATEMENT
REVENUE:
Private Equity:
			Realized Gains (Losses)	$	(41	)	$	(11	)	$	(13	)	$	107		$	204
			Unrealized Gains (Losses)		(258	)		(114	)		(242	)		(505	)		(306	)
Total Private Equity Gains (Losses)					(299	)		(125	)		(255	)		(398	)		(102	)
Net Interest Income (Loss)					(76	)		(87	)		(87	)		(83	)		(89	)
Fees and Other Revenue					14			28			41			30			16
		TOTAL OPERATING REVENUE			(361	)		(184	)		(301	)		(451	)		(175	)
EXPENSE:
Compensation Expense					37			37			41			39			35
Noncompensation Expense					51			47			47			53			33
	TOTAL OPERATING EXPENSE				88			84			88			92			68
Operating Income (Loss) Before Taxes					(449	)		(268	)		(389	)		(543	)		(243	)
Income Taxes (Benefit)					(165	)		(99	)		(143	)		(199	)		(90	)
OPERATING EARNINGS (LOSS)				$	(284	)	$	(169	)	$	(246	)	$	(344	)	$	(153	)
Average Common Equity				$	5,389		$	5,493		$	5,709		$	6,131		$	6,121
Average Assets					10,095			10,279			10,687			11,734			11,368
SVA					(489	)		(376	)		(459	)		(578	)		(386	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

				3QTR 2002												YTD2002
				Over (Under)						YEAR TO DATE						Over (Under)
				2Q 2002			3Q 2001			2002			2001			2001
OPERATING INCOME STATEMENT
REVENUE:
Private Equity:
			Realized Gains (Losses)		NM			NM		$	(65	)	$	568		NM
			Unrealized Gains (Losses)		NM			16	%		(614	)		(1,353	)		55	%
Total Private Equity Gains (Losses)					NM			NM			(679	)		(785	)		14
Net Interest Income (Loss)					13	%		15			(250	)		(266	)		6
Fees and Other Revenue					(50	)		(13	)		83			77			8
		TOTAL OPERATING REVENUE			(96	)		NM			(846	)		(974	)		13
EXPENSE:
Compensation Expense					—			6			115			112			3
Noncompensation Expense					9			55			145			126			15
	TOTAL OPERATING EXPENSE				5			29			260			238			9
Operating Income (Loss) Before Taxes					(68	)		(85	)		(1,106	)		(1,212	)		9
Income Taxes (Benefit)					(67	)		(83	)		(407	)		(445	)		9
OPERATING EARNINGS (LOSS)					(68	)		(86	)	$	(699	)	$	(767	)		9
Average Common Equity					(2	)		(12	)	$	5,529		$	6,617			(16	)
Average Assets					(2	)		(11	)		10,351			12,410			(17	)
SVA					(30	)		(27	)		(1,324	)		(1,517	)		13

Note: Prior periods have been restated to conform with current methodologies.

Page 11

J.P. MORGAN CHASE & CO
JPMORGAN PARTNERS
INVESTMENT PORTFOLIO — PRIVATE AND PUBLIC SECURITIES

(in millions, except ratios)

		Sep 30th		Jun 30th		Mar 31st		Dec 31st		Sep 30th
		2002		2002		2002		2001		2001
PORTFOLIO INFORMATION
Public Securities (110 companies)(a)(b)
	Carrying Value	$	488	$	695	$	705	$	998	$	1,149
	Cost		764		860		809		802		829
Private Direct Securities (960 companies)(b)
	Carrying Value		5,694		5,707		6,054		6,289		6,371
	Cost		7,186		7,066		7,317		7,544		7,322
Private Fund Investments (326 funds)(b)
	Carrying Value		1,831		1,827		1,794		1,910		2,108
	Cost		2,216		2,164		2,119		2,182		2,217
Total Investment Portfolio — Carrying Value		$	8,013	$	8,229	$	8,553	$	9,197	$	9,628
Total Investment Portfolio — Cost		$	10,166	$	10,090	$	10,245	$	10,528	$	10,368

[Additional columns below]

[Continued from above table, first column(s) repeated]

		Sep 30, 2002
		Over (Under)
		Jun 30, 02			Sep 30, 01
PORTFOLIO INFORMATION
Public Securities (110 companies)(a)(b)
	Carrying Value		(30	)%		(58	)%
	Cost		(11	)		(8	)
Private Direct Securities (960 companies)(b)
	Carrying Value		—			(11	)
	Cost		2			(2	)
Private Fund Investments (326 funds)(b)
	Carrying Value		—			(13	)
	Cost		2			—
Total Investment Portfolio — Carrying Value			(3	)		(17	)
Total Investment Portfolio — Cost			1			(2	)

Public Securities Investments at September 30, 2002
(dollars and shares in millions)

					Quoted
					Public
		Symbol	Shares		Value		Cost
JetBlue Airways Corporation		JBLU		3.4	$	139	$	20
Encore Acquisition Company		EAC		4.9		81		34
Fisher Scientific International, Inc.		FSH		2.4		72		21
Guitar Center Inc.		GTRC		3.3		61		35
Triton PCS Holdings, Inc.		TPC		16.0		33		70
United Auto Group, Inc.		UAG		2.2		30		25
AT&T Wireless Services, Inc. (c)		AWE		7.0		29		5
1-800-FLOWERS.COM, Inc.		FLWS		3.9		27		14
dj Orthopedics, Inc.		DJO		5.9		23		54
Lin TV Corp		TVL		0.9		21		27
	Top Ten Public Securities				$	516	$	305
Other Public Securities (100 companies)						204		459
	Total Public Securities(110 companies)				$	720	$	764

(a)	Publicly traded positions only.
(b)	Represents the number of companies and funds at September 30, 2002.
(c)	Does not include 3.3 million shares held directly by the holding company, received upon distribution from JPMP.

Page 12

J.P. MORGAN CHASE & CO
RETAIL & MIDDLE MARKET FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS

(in millions, except ratios)

	3QTR			2QTR				1QTR			4QTR			3QTR
	2002			2002				2002			2001			2001
OPERATING INCOME STATEMENT
REVENUE:
Net Interest Income	$	2,159		$	2,124			$	2,032		$	1,843		$	1,801
Fees and Commissions		1,247			1,150				912			796			807
Securities Gains		112			19				(13	)		61			1
All Other Revenue		214			175				188			223			234
TOTAL OPERATING REVENUE		3,732			3,468				3,119			2,923			2,843
EXPENSE:
Compensation Expense		678			670				646			601			616
Noncompensation Expense		969			951				892			875			831
TOTAL OPERATING EXPENSE		1,647			1,621				1,538			1,476			1,447
Operating Margin		2,085			1,847				1,581			1,447			1,396
Credit Costs		823			736				726			926			722
Operating Income Before Taxes		1,262			1,111				855			521			674
Income Taxes		455			417				326			187			253
OPERATING EARNINGS	$	807		$	694			$	529		$	334		$	421
Average Common Equity	$	10,497		$	10,436			$	10,149		$	9,489		$	9,343
Average Managed Assets (a)		179,489			176,176				176,325			166,858			165,118
SVA		487			379				225			44			136
Return on Common Equity		30.4	%		26.6	%	��		21.0	%		13.8	%		17.8	%
Overhead Ratio		44			47				49			50			51
RETAIL & MIDDLE MARKET FINANCIAL SERVICES’ BUSINESSES
CARDMEMBER SERVICES:
Operating Revenues	$	1,563		$	1,492			$	1,358		$	1,261		$	1,148
Operating Earnings		246			179				151			176			129
HOME FINANCE:
Operating Revenues	$	974		$	773			$	529		$	443		$	468
Operating Earnings		393			268				134			89			122
REGIONAL BANKING GROUP:
Operating Revenues	$	689		$	702			$	719		$	734		$	766
Operating Earnings		87			103				128			109			123
MIDDLE MARKETS:
Operating Revenues	$	326		$	316			$	322		$	303		$	310
Operating Earnings		91			89				79			63			72
AUTO FINANCE:
Operating Revenues	$	167		$	167			$	172		$	164		$	140
Operating Earnings		27			82				33			36			33

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002												YTD 2002
		Over (Under)						YEAR TO DATE						Over (Under)
		2Q 2002			3Q 2001			2002			2001			2001
OPERATING INCOME STATEMENT
REVENUE:
Net Interest Income			2	%		20	%	$	6,315		$	5,189			22	%
Fees and Commissions			8			55			3,309			2,145			54
Securities Gains		NM			NM				118			317			(63	)
All Other Revenue			22			(9	)		577			543			6
	TOTAL OPERATING REVENUE		8			31			10,319			8,194			26
EXPENSE:
Compensation Expense			1			10			1,994			1,771			13
Noncompensation Expense			2			17			2,812			2,461			14
	TOTAL OPERATING EXPENSE		2			14			4,806			4,232			14
Operating Margin			13			49			5,513			3,962			39
Credit Costs			12			14			2,285			1,948			17
Operating Income Before Taxes			14			87			3,228			2,014			60
Income Taxes			9			80			1,198			765			57
OPERATING EARNINGS			16			92		$	2,030		$	1,249			63
Average Common Equity			1			12		$	10,362		$	9,032			15
Average Managed Assets (a)			2			9			177,342			162,572			9
SVA			28			258			1,091			427			156
Return on Common Equity			380	bp		1,260	bp		26.1	%		18.3	%		780	bp
Overhead Ratio			(300	)		(700	)		47			52			(500	)
RETAIL & MIDDLE MARKET FINANCIAL SERVICES’ BUSINESSES
CARDMEMBER SERVICES:
Operating Revenues			5	%		36	%	$	4,413		$	3,220			37	%
Operating Earnings			37			91			576			336			71
HOME FINANCE:
Operating Revenues			26			108		$	2,276		$	1,245			83
Operating Earnings			47			222			795			313			154
REGIONAL BANKING GROUP:
Operating Revenues			(2	)		(10	)	$	2,110		$	2,322			(9	)
Operating Earnings			(16	)		(29	)		318			377			(16	)
MIDDLE MARKETS:
Operating Revenues			3			5		$	964		$	934			3
Operating Earnings			2			26			259			194			34
AUTO FINANCE:
Operating Revenues			—			19		$	506		$	388			30
Operating Earnings			(67	)		(18	)		142			92			54

	Note: Prior periods have been restated to conform with current methodologies.
(a)	Excludes the impact of credit card securitizations.

Page 13

J.P. MORGAN CHASE & CO
RETAIL & MIDDLE MARKET FINANCIAL SERVICES
BUSINESS-RELATED METRICS

		3QTR			2QTR			1QTR			4QTR			3QTR
		2002			2002			2002			2001			2001
Cardmember Services — Managed Basis
End-of-Period Outstandings (in billions)		$	51.1		$	49.5		$	48.9		$	41.6		$	38.9
Total Purchases & Cash Advances (a) (in billions)			23.0			20.9			18.9			20.3			17.9
Total Accounts (in millions)			28.6			28.1			27.7			23.9			23.4
Net Charge-Off Ratio			5.59	%		6.41	%		5.82	%		5.56	%		5.74	%
Overhead Ratio			34			34			34			34			34
Regional Banking Group
Total Average Deposits (in billions)		$	70.1		$	69.9		$	69.1		$	66.3		$	65.6
Total Average Assets Under Management (b) (in billions)			103.1	(c)		104.7			104.8			103.5			102.6
Number of Branches			533			533			538			531			533
Number of ATMs			1,884			1,878			1,895			1,907			1,875
Number of Online Customers (in thousands)			1,128			1,066			1,003			937			876
Overhead Ratio			75	%		74	%		73	%		72	%		69	%
Home Finance
Originations (in billions)		$	35.4		$	26.5		$	32.7		$	50.4		$	47.4
Loans Serviced (in billions)			434	(c)		436			426			430			427
Total Average Loans Owned (in billions)			54.2			54.1			56.9			57.3			57.0
Number of Customers (in millions)			4.0	(c)		4.1			4.0			4.0			4.1
Net Charge-Off Ratio			0.21	%		0.30	%		0.21	%		0.21	%		0.20	%
Overhead Ratio			31			39			55			63			54
Middle Markets
Total Average Loans (in billions)		$	13.7		$	13.5		$	13.6		$	14.1		$	14.3
Total Average Deposits (in billions)			24.0			24.0			22.7			20.1			18.1
Nonperforming Average Loans as a
	% of Total Average Loans		1.95	%		1.89	%		2.20	%		2.21	%		2.19	%
Overhead Ratio			49			53			52			58			53
Auto Finance
Loan and Lease Receivables (in billions)		$	33.2		$	29.3		$	28.8		$	28.4		$	27.2
Origination Volume (in billions)			7.6			5.2			5.8			5.6			5.2
Market Share			5.8	%(c)		4.6	%		5.2	%		5.2	%		4.2	%
Net Charge-Off Ratio			0.59			0.38			0.53			0.70			0.49
Overhead Ratio			35			35			34			33			37

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002												YTD 2002
		Over (Under)						YEAR TO DATE						Over (Under)
		2Q 2002			3Q 2001			2002			2001			2001
Cardmember Services — Managed Basis
End-of-Period Outstandings (in billions)			3	%		31	%	$	51.1		$	38.9			31	%
Total Purchases & Cash Advances (a) (in billions)			10			28			62.8			51.9			21
Total Accounts (in millions)			2			22			28.6			23.4			22
Net Charge-Off Ratio			(82	)bp		(15	)bp		5.93	%		5.47	%		46	bp
Overhead Ratio			—			—			34			35			(100	)
Regional Banking Group
Total Average Deposits (in billions)			—	%		7	%	$	69.7		$	65.7			6	%
Total Average Assets Under Management (b) (in billions)			(2	)		—			104.1			102.5			2
Number of Branches			—			—			533			533			—
Number of ATMs			—			—			1,884			1,875			—
Number of Online Customers (in thousands)			6			29			1,128			876			29
Overhead Ratio			100	bp		600	bp		74	%		69	%		500	bp
Home Finance
Originations (in billions)			34	%		(25	)%	$	94.6		$	132.6			(29	)%
Loans Serviced (in billions)			—			2			434			427			2
Total Average Loans Owned (in billions)			—			(5	)		55.5			53.8			3
Number of Customers (in millions)			(2	)		(2	)		4.0			4.1			(2	)
Net Charge-Off Ratio			(9	)bp		1	bp		0.24	%		0.17	%		7	bp
Overhead Ratio			(800	)		(2,300	)		39			57			(1,800	)
Middle Markets
Total Average Loans (in billions)			1	%		(4	)%	$	13.6		$	14.4			(6	)%
Total Average Deposits (in billions)			—			33			23.6			17.9			32
Nonperforming Average Loans as a
	% of Total Average Loans		6	bp		(24	)bp		2.01	%		2.39	%		(38	)bp
Overhead Ratio			(400	)		(400	)		51			54			(300	)
Auto Finance
Loan and Lease Receivables (in billions)			13	%		22	%	$	33.2		$	27.2			22	%
Origination Volume (in billions)			46			46			18.6			14.3			30
Market Share			120	bp		160	bp		5.8	%		4.2	%		160	bp
Net Charge-Off Ratio			21			10			0.50			0.47			3
Overhead Ratio			—			(200	)		34			38			(400	)

	Note: Prior periods have been restated to conform with current methodologies.
(a)	Sum of total customer purchases, cash advances and balance transfers.
(b)	Assets under management includes deposits.
(c)	Estimated

Page 14

SUPPLEMENTAL DETAIL

J.P. MORGAN CHASE & CO

NONINTEREST REVENUE AND NONINTEREST EXPENSE DETAIL ON A REPORTED BASIS

(in millions)

		3QTR			2QTR		1QTR		4QTR			3QTR
		2002			2002		2002		2001			2001
NONINTEREST REVENUE
Investment Banking Fees:
	Advisory	$	143		$	189	$	191	$	271		$	329
	Underwriting and Other Fees		402			596		564		660			482
	Total	$	545		$	785	$	755	$	931		$	811
Trading-Related Revenue: (a)
	Equities	$	(211	)	$	120	$	223	$	101		$	251
	Fixed Income and Other		576			1,016		1,497		803			1,363
	Total	$	365		$	1,136	$	1,720	$	904		$	1,614
Fees and Commissions:
	Investment Management, Custody and Processing Services	$	923		$	981	$	992	$	987		$	960
	Credit Card Revenue		806			669		587		662			548
	Brokerage and Investment Services		321			333		304		305			268
	Mortgage Servicing Fees, Net of Amortization and Writedowns		323			257		48		(81	)		9
	Other Lending-Related Service Fees		128			128		130		118			125
	Deposit Service Charges		288			273		290		277			262
	Other Fees		216			244		233		225			225
	Total	$	3,005		$	2,885	$	2,584	$	2,493		$	2,397
Other Revenue: (b)
	Residential Mortgage Origination/Sales Activities	$	213		$	146	$	100	$	162		$	157
	All Other Revenue		206			146		57		(11	)		61
	Total	$	419		$	292	$	157	$	151		$	218
NONINTEREST EXPENSE
Other Expense:
Professional Services		$	307		$	311	$	307	$	289		$	267
Outside Services			256			240		249		213			232
Marketing			179			144		146		179			137
Travel and Entertainment			102			112		101		78			116
All Other			324			311		405		369			335
Total		$	1,168		$	1,118	$	1,208	$	1,128		$	1,087

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002											YTD 2002
		Over (Under)						YEAR TO DATE					Over (Under)
		2Q 2002			3Q 2001			2002		2001			2001
NONINTEREST REVENUE
Investment Banking Fees:
	Advisory		(24	)%		(57	)%	$	523	$	977			(46	)%
	Underwriting and Other Fees		(33	)		(17	)		1,562		1,704			(8	)
	Total		(31	)		(33	)	$	2,085	$	2,681			(22	)
Trading-Related Revenue: (a)
	Equities	NM			NM			$	132	$	1,206			(89	)
	Fixed Income and Other		(43	)		(58	)		3,089		4,169			(26	)
	Total		(68	)		(77	)	$	3,221	$	5,375			(40	)
Fees and Commissions:
	Investment Management, Custody and Processing Services		(6	)		(4	)	$	2,896	$	2,964			(2	)
	Credit Card Revenue		20			47			2,062		1,446			43
	Brokerage and Investment Services		(4	)		20			958		939			2
	Mortgage Servicing Fees, Net of Amortization and Writedowns		26		NM				628		(149	)	NM
	Other Lending-Related Service Fees		—			2			386		377			2
	Deposit Service Charges		5			10			851		746			14
	Other Fees		(11	)		(4	)		693		665			4
	Total		4			25		$	8,474	$	6,988			21
Other Revenue: (b)
	Residential Mortgage Origination/Sales Activities		46			36		$	459	$	414			11
	All Other Revenue		41			238			409		333			23
	Total		43			92		$	868	$	747			16
NONINTEREST EXPENSE
Other Expense:
Professional Services			(1	)		15		$	925	$	850			9
Outside Services			7			10			745		675			10
Marketing			24			31			469		422			11
Travel and Entertainment			(9	)		(12	)		315		375			(16	)
All Other			4			(3	)		1,040		1,071			(3	)
Total			4			7		$	3,494	$	3,393			3

	Note: Prior periods have been restated to conform with current methodologies.
(a)	Includes trading-related net interest income. See reconciliation from reported to operating basis on page 7.
(b)	In the third quarter of 2002, the “Provision for Loan Losses” was re-named “Provision for Credit Losses” and now includes the aggregate amount of the provision for loan losses and provision for lending-related commitments. The prior period provision for lending-related commitments was re-classified from “Other Revenue” to the “Provision for Credit Losses” category.

Page 15

J.P. MORGAN CHASE & CO

CONSOLIDATED BALANCE SHEET

(in millions)

			Sep 30th			Jun 30th			Mar 31st			Dec 31st			Sep 30th
			2002			2002			2002			2001			2001
ASSETS
Cash and Due from Banks			$	18,159		$	21,878		$	22,637		$	22,600		$	22,299
Deposits with Banks				13,447			10,517			9,691			12,743			9,341
Federal Funds Sold and Securities Purchased under Resale Agreements				63,748			71,740			76,719			63,727			78,997
Securities Borrowed				35,283			48,429			40,880			36,580			37,499
Trading Assets:
	Debt and Equity Instruments			151,264			159,746			144,992			118,248			165,143
	Derivative Receivables			87,518			69,858			63,224			71,157			85,407
Securities				79,768			64,526			61,225			59,760			66,468
Loans (Net of Allowance for Loan Losses)				206,215			207,080			209,541			212,920			219,411
Private Equity Investments				8,013			8,229			8,553			9,197			9,628
Goodwill				8,108			8,089			8,055			8,336			8,477
Other Intangibles:
	Mortgage Servicing Rights			3,606			5,689			6,918			6,579			5,731
	Purchased Credit Card Relationships			1,337			1,426			1,508			519			542
	All Other Intangibles			311			313			327			44			64
Other Assets				64,982			63,026			58,238			71,165			90,293
TOTAL ASSETS			$	741,759		$	740,546		$	712,508		$	693,575		$	799,300
LIABILITIES
Deposits:
	Noninterest-Bearing		$	74,724		$	73,529		$	72,659		$	76,974		$	72,734
	Interest-Bearing			217,447			220,300			209,378			216,676			208,870
		Total Deposits		292,171			293,829			282,037			293,650			281,604
Federal Funds Purchased and Securities Sold under Repurchase Agreements				154,745			162,656			152,837			128,445			181,775
Commercial Paper				13,775			14,561			23,726			18,510			19,299
Other Borrowed Funds				12,646			17,352			16,968			10,835			21,941
Trading Liabilities:
	Debt and Equity Instruments			71,607			67,952			71,141			52,988			58,594
	Derivative Payables			70,593			55,575			44,997			56,063			70,817
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)				38,233			38,083			36,910			47,813			75,231
Long-Term Debt				39,113			42,363			37,322			39,183			42,315
Guaranteed Preferred Beneficial Interests in the Firm’s Junior Subordinated Deferrable Interest Debentures				5,439			5,439			5,439			4,439			4,439
TOTAL LIABILITIES				698,322			697,810			671,377			651,926			756,015
PREFERRED STOCK OF SUBSIDIARY				—			—			—			550			550
STOCKHOLDERS’ EQUITY
Preferred Stock				1,009			1,009			1,009			1,009			1,009
Common Stock				2,023			2,020			2,016			1,997			1,993
Capital Surplus				13,113			13,111			12,783			12,495			12,244
Retained Earnings				26,940			27,605			27,278			26,993			28,021
Accumulated Other Comprehensive Income (Loss)				1,465			79			(909	)		(442	)		267
Treasury Stock, at Cost				(1,113	)		(1,088	)		(1,046	)		(953	)		(799	)
TOTAL STOCKHOLDERS’ EQUITY				43,437			42,736			41,131			41,099			42,735
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY AND STOCKHOLDERS’ EQUITY			$	741,759		$	740,546		$	712,508		$	693,575		$	799,300

[Additional columns below]

[Continued from above table, first column(s) repeated]

			Sep 30, 2002
			Over (Under)
			Jun 30, 02			Sep 30, 01
ASSETS
Cash and Due from Banks				(17	)%		(19	)%
Deposits with Banks				28			44
Federal Funds Sold and Securities Purchased under Resale Agreements				(11	)		(19	)
Securities Borrowed				(27	)		(6	)
Trading Assets:
	Debt and Equity Instruments			(5	)		(8	)
	Derivative Receivables			25			2
Securities				24			20
Loans (Net of Allowance for Loan Losses)				—			(6	)
Private Equity Investments				(3	)		(17	)
Goodwill				—			(4	)
Other Intangibles:
	Mortgage Servicing Rights			(37	)		(37	)
	Purchased Credit Card Relationships			(6	)		147
	All Other Intangibles			(1	)		386
Other Assets				3			(28	)
TOTAL ASSETS				—			(7	)
LIABILITIES
Deposits:
	Noninterest-Bearing			2			3
	Interest-Bearing			(1	)		4
		Total Deposits		(1	)		4
Federal Funds Purchased and Securities Sold under Repurchase Agreements				(5	)		(15	)
Commercial Paper				(5	)		(29	)
Other Borrowed Funds				(27	)		(42	)
Trading Liabilities:
	Debt and Equity Instruments			5			22
	Derivative Payables			27			—
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)				—			(49	)
Long-Term Debt				(8	)		(8	)
Guaranteed Preferred Beneficial Interests in the Firm’s Junior Subordinated Deferrable Interest Debentures				—			23
TOTAL LIABILITIES				—			(8	)
PREFERRED STOCK OF SUBSIDIARY			NM			NM
STOCKHOLDERS’ EQUITY
Preferred Stock				—			—
Common Stock				—			2
Capital Surplus				—			7
Retained Earnings				(2	)		(4	)
Accumulated Other Comprehensive Income (Loss)			NM			NM
Treasury Stock, at Cost				(2	)		(39	)
TOTAL STOCKHOLDERS’ EQUITY				2			2
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY AND STOCKHOLDERS’ EQUITY				—			(7	)

Note: Prior periods have been restated to conform with current methodologies.

Page 16

 
J.P. MORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEET AND ANNUALIZED YIELDS

(in millions, except rates)

			3QTR			2QTR			1QTR			4QTR			3QTR
			2002			2002			2002			2001			2001
AVERAGE BALANCES
ASSETS
Deposits with Banks			$	13,071		$	9,287		$	12,326		$	10,810		$	8,583
Federal Funds Sold and Securities Purchased under Resale Agreements				83,402			83,317			81,004			85,582			80,396
Securities and Trading Assets				205,232			201,512			180,951			188,988			200,161
Securities Borrowed				41,881			46,537			41,739			39,213			38,122
Loans				205,037			211,495			217,847			218,625			224,125
		Total Interest-Earning Assets		548,623			552,148			533,867			543,218			551,387
Noninterest-Earning Assets				175,743			182,798			184,779			196,557			185,891
TOTAL ASSETS			$	724,366		$	734,946		$	718,646		$	739,775		$	737,278
LIABILITIES
Interest-Bearing Deposits			$	214,932		$	221,687		$	218,049		$	223,314		$	207,430
Federal Funds Purchased and Securities Sold under Repurchase Agreements				170,266			166,919			153,662			164,714			170,708
Commercial Paper				13,740			18,514			18,901			17,134			21,307
Other Borrowings (a)				66,014			78,614			67,408			55,388			67,218
Long-Term Debt				45,525			42,482			43,046			44,964			44,788
	Total Interest-Bearing Liabilities			510,477			528,216			501,066			505,514			511,451
Noninterest-Bearing Liabilities				170,712			164,832			175,800			191,098			182,757
TOTAL LIABILITIES				681,189			693,048			676,866			696,612			694,208
PREFERRED STOCK OF SUBSIDIARY				—			—			354			550			550
Preferred Stock				1,009			1,009			1,009			1,009			1,017
Common Stockholders’ Equity				42,168			40,889			40,417			41,604			41,503
TOTAL STOCKHOLDERS’ EQUITY				43,177			41,898			41,426			42,613			42,520
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY AND STOCKHOLDERS’ EQUITY			$	724,366		$	734,946		$	718,646		$	739,775		$	737,278
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks				2.65	%		3.31	%		2.96	%		3.76	%		4.64	%
Federal Funds Sold and Securities Purchased under Resale Agreements				2.52			2.58			2.45			3.18			4.19
Securities and Trading Assets				4.98			5.18			5.35			5.40			5.51
Securities Borrowed				1.70			1.49			1.77			2.00			3.17
Loans				5.73			5.95			5.87			5.97			6.54
		Total Interest-Earning Assets		4.58			4.74			4.79			5.00			5.56
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits				2.62			2.38			2.49			2.52			3.48
Federal Funds Purchased and Securities Sold under Repurchase Agreements				2.06			2.06			2.07			2.63			3.81
Commercial Paper				1.81			1.84			1.76			2.30			3.53
Other Borrowings				5.06			5.24			4.81			6.17			5.31
Long-Term Debt				3.22			3.10			3.35			3.58			4.43
	Total Interest-Bearing Liabilities			2.78			2.75			2.72			3.04			3.92
TOTAL INVESTABLE FUNDS				2.59			2.63			2.55			2.83			3.63
INTEREST RATE SPREAD				1.80	%		1.99	%		2.07	%		1.96	%		1.64	%
NET INTEREST MARGIN				1.99	%		2.11	%		2.24	%		2.17	%		1.93	%
NET INTEREST MARGIN ADJUSTED FOR SECURITIZATIONS				2.31	%		2.36	%		2.47	%		2.39	%		2.13	%

[Additional columns below]

[Continued from above table, first column(s) repeated]

			3QTR 2002												YTD 2002
			Over (Under)						YEAR TO DATE						Over (Under)
			2Q 2002			3Q 2001			2002			2001			2001
AVERAGE BALANCES
ASSETS
Deposits with Banks				41	%		52	%	$	11,564		$	8,549			35	%
Federal Funds Sold and Securities Purchased under Resale Agreements				—			4			82,583			83,254			(1	)
Securities and Trading Assets				2			3			195,986			198,587			(1	)
Securities Borrowed				(10	)		10			43,387			37,799			15
Loans				(3	)		(9	)		211,413			220,253			(4	)
		Total Interest-Earning Assets		(1	)		(1	)		544,933			548,442			(1	)
Noninterest-Earning Assets				(4	)		(5	)		181,074			186,249			(3	)
TOTAL ASSETS				(1	)		(2	)	$	726,007		$	734,691			(1	)
LIABILITIES
Interest-Bearing Deposits				(3	)		4		$	218,211		$	213,355			2
Federal Funds Purchased and Securities Sold under Repurchase Agreements				2			—			163,677			163,569			—
Commercial Paper				(26	)		(36	)		17,033			19,042			(11	)
Other Borrowings (a)				(16	)		(2	)		70,673			66,941			6
Long-Term Debt				7			2			43,693			45,792			(5	)
	Total Interest-Bearing Liabilities			(3	)		—			513,287			508,699			1
Noninterest-Bearing Liabilities				4			(7	)		170,430			182,699			(7	)
TOTAL LIABILITIES				(2	)		(2	)		683,717			691,398			(1	)
PREFERRED STOCK OF SUBSIDIARY			NM			NM				117			550			(79	)
Preferred Stock				—			(1	)		1,009			1,246			(19	)
Common Stockholders’ Equity				3			2			41,164			41,497			(1	)
TOTAL STOCKHOLDERS’ EQUITY				3			2			42,173			42,743			(1	)
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY AND STOCKHOLDERS’ EQUITY				(1	)		(2	)	$	726,007		$	734,691			(1	)
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks				(66	) bp		(199	) bp		2.94	%		5.48	%		(254	) bp
Federal Funds Sold and Securities Purchased under Resale Agreements				(6	)		(167	)		2.52			5.01			(249	)
Securities and Trading Assets				(20	)		(53	)		5.16			5.75			(59	)
Securities Borrowed				21			(147	)		1.65			4.05			(240	)
Loans				(22	)		(81	)		5.85			7.44			(159	)
		Total Interest-Earning Assets		(16	)		(98	)		4.70			6.20			(150	)
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits				24			(86	)		2.50			4.12			(162	)
Federal Funds Purchased and Securities Sold under Repurchase Agreements				—			(175	)		2.06			4.55			(249	)
Commercial Paper				(3	)		(172	)		1.80			4.56			(276	)
Other Borrowings				(18	)		(25	)		5.05			5.66			(61	)
Long-Term Debt				12			(121	)		3.22			5.48			(226	)
	Total Interest-Bearing Liabilities			3			(114	)		2.75			4.60			(185	)
TOTAL INVESTABLE FUNDS				(4	)		(104	)		2.59			4.27			(168	)
INTEREST RATE SPREAD				(19	)		16			1.95	%		1.60	%		35
NET INTEREST MARGIN				(12	)		6			2.11	%		1.93	%		18
NET INTEREST MARGIN ADJUSTED FOR SECURITIZATIONS				(5	)		18			2.38	%		2.10	%		28

(a) Includes securities sold but not yet purchased.

Page 17

 
J.P. MORGAN CHASE & CO.
CREDIT-RELATED INFORMATION

(in millions, except ratios)

																September 30, 2002
																Over (Under)
	Sep 30th			Jun 30th			Mar 31st			Dec 31st			Sep 30th
	2002			2002			2002			2001			2001			Jun 30, 02			Sep 30, 01
CREDIT-RELATED ASSETS
COMMERCIAL LOANS
Domestic Commercial	$	62,901		$	67,124		$	64,068		$	66,436		$	77,712			(6	)%		(19	)%
Foreign Commercial		34,585			37,577			37,684			38,428			38,866			(8	)		(11	)
Total Commercial Loans		97,486			104,701			101,752			104,864			116,578			(7	)		(16	)
Derivative and FX Contracts		87,518			69,858			63,224			71,157			85,407			25			2
TOTAL COMMERCIAL CREDIT-RELATED		185,004			174,559			164,976			176,021			201,985			6			(8	)
CONSUMER LOANS
Credit Card — Reported		20,508			21,036			24,746			19,387			19,255			(3	)		7
Credit Card — Securitizations		29,843			27,499			23,225			21,424			18,724			9			59
Credit Card — Managed		50,351			48,535			47,971			40,811			37,979			4			33
1-4 Family Residential Mortgages		55,675			52,669			54,460			59,430			55,160			6			1
Auto Financings		30,612			26,666			26,002			25,667			24,448			15			25
Other Consumer (a)		7,197			7,014			7,586			8,096			7,844			3			(8	)
TOTAL MANAGED CONSUMER LOANS		143,835			134,884			136,019			134,004			125,431			7			15
TOTAL MANAGED CREDIT-RELATED ASSETS	$	328,839		$	309,443		$	300,995		$	310,025		$	327,416			6			—
NONPERFORMING ASSETS AND RATIOS
COMMERCIAL LOANS
Domestic Commercial	$	1,865		$	1,402		$	1,399		$	1,275		$	1,438			33			30
Foreign Commercial		1,731			1,110			960			722			580			56			198
Total Commercial Loans		3,596			2,512			2,359			1,997			2,018			43			78
Derivative and FX Contracts		169			144			155			170			46			17			267
TOTAL		3,765			2,656			2,514			2,167			2,064			42			82
CONSUMER LOANS
Credit Card — Reported		17			18			19			22			23			(6	)		(26	)
Credit Card — Securitizations		—			—			—			—			—		NM			NM
Credit Card — Managed		17			18			19			22			23			(6	)		(26	)
1-4 Family Residential Mortgages		314			275			351			280			273			14			15
Auto Financings		108			103			98			118			110			5			(2	)
Other Consumer (a)		68			54			66			79			53			26			28
Total Consumer Loans		507			450			534			499			459			13			10
TOTAL		4,272			3,106			3,048			2,666			2,523			38			69
Assets Acquired in Loan Satisfactions		140			142			130			124			123			(1	)		14
TOTAL		4,412			3,248			3,178			2,790			2,646			36			67
Other Receivables (b)		1,130			1,130			1,130			1,130			—			—		NM
TOTAL NONPERFORMING ASSETS	$	5,542	(c)	$	4,378		$	4,308		$	3,920		$	2,646			27			109
TOTAL NONPERFORMING ASSETS TO TOTAL ASSETS		0.75	%		0.59	%		0.60	%		0.57	%		0.33	%		16	bp		42	bp
PAST DUE 90 DAYS AND OVER AND ACCRUING
COMMERCIAL LOANS
Domestic Commercial	$	32		$	29		$	42		$	30		$	19			10	%		68	%
Foreign Commercial		1			2			10			5			44			(50	)		(98	)
TOTAL COMMERCIAL CREDIT-RELATED		33			31			52			35			63			6			(48	)
CONSUMER LOANS
Credit Card — Reported		447			505			619			449			394			(11	)		13
Credit Card — Securitizations		526			457			478			457			348			15			51
Credit Card — Managed		973			962			1,097			906			742			1			31
1-4 Family Residential Mortgages		1			—			—			—			—		NM			NM
Auto Financings		—			—			—			1			1		NM			NM
Other Consumer (a)		26			37			45			36			28			(30	)		(7	)
TOTAL CONSUMER LOANS		1,000			999			1,142			943			771			—			30
TOTAL CR.-REL. ACCRUING ASSETS PAST DUE 90 DAYS	$	1,033		$	1,030		$	1,194		$	978		$	834			—			24

(a)	Consists of installment loans (direct and indirect types of consumer finance), student loans, unsecured revolving lines of credit and foreign consumer loans.
(b)	This amount relates to the Enron-related surety receivables and letter of credit, which are the subject of litigation with credit-worthy entities. These receivables are classified in Other Assets at September 30, 2002 and June 30, 2002.
(c)	Nonperforming assets have not been reduced for credit protection (single name credit default swaps and collateralized loan obligations) relating to nonperforming counterparties in amounts aggregating $49 million. Nonperforming assets exclude nonaccrual loans held for sale (“HFS”) of $38 million. HFS loans are carried at the lower of cost or market and declines in value are recorded in Other Revenue.

Page 18

 
J.P. MORGAN CHASE & CO.
CREDIT-RELATED INFORMATION (CONT.)

(in millions, except ratios)

		3QTR			2QTR			1QTR			4QTR			3QTR
		2002			2002			2002			2001			2001
NET CHARGE-OFFS
COMMERCIAL LOANS
Domestic Commercial		$	307		$	181		$	207		$	388		$	126
Foreign Commercial			527			112			113			45			63
TOTAL COMMERCIAL LOANS			834			293			320			433			189
CONSUMER LOANS
Credit Card — Reported			333			433			337			274			264
Credit Card — Securitizations			354			334			321			264			270
Credit Card — Managed			687			767			658			538			534
1-4 Family Residential Mortgages			7			21			13			18			15
Auto Financings			47			29			38			50			32
Other Consumer			45			45			45			43			45
TOTAL CONSUMER LOANS			786			862			754			649			626
TOTAL MANAGED NET CHARGE-OFFS		$	1,620		$	1,155		$	1,074		$	1,082		$	815
NET CHARGE-OFF RATES — ANNUALIZED
COMMERCIAL LOANS
Domestic Commercial			1.95	%		1.13	%		1.24	%		2.04	%		0.59	%
Foreign Commercial			6.66			1.24			1.34			0.53			0.79
TOTAL COMMERCIAL LOANS			3.53			1.17			1.27			1.58			0.65
CONSUMER LOANS
Credit Card — Reported			6.27			7.67			5.78			5.74			5.47
Credit Card — Securitizations			4.95			5.30			5.98			5.23			5.82
Credit Card — Managed			5.51			6.42			5.87			5.48			5.64
1-4 Family Residential Mortgages			0.05			0.16			0.09			0.12			0.10
Auto Financings			0.64			0.43			0.58			0.79			0.53
Other Consumer			2.53			2.35			2.16			2.12			2.33
TOTAL CONSUMER LOANS			2.23			2.53			2.22			1.98			1.96
TOTAL MANAGED NET CHARGE-OFF RATES			2.75			1.96			1.82			1.80			1.33
ALLOWANCE FOR LOAN LOSSES AND RATIOS
Allowance for Loan Losses (a)		$	5,263		$	5,006		$	5,005		$	4,524		$	3,874
	To Total Loans		2.49	%		2.36	%		2.33	%		2.08	%		1.74	%
	To Total Nonperforming Loans		128			169			173			181			156
	To Total Nonperforming Assets		95			114			116			115			146
ALLOWANCE COMPONENTS (a)
Commercial Specific and Expected		$	2,079		$	1,806		$	1,798		$	1,724		$	1,768
Consumer Expected			2,365			2,387			2,518			2,105			1,694
Total Specific and Expected			4,444			4,193			4,316			3,829			3,462
Residual Component			819			813			689			695			412
Total		$	5,263		$	5,006		$	5,005		$	4,524		$	3,874

[Additional columns below]

[Continued from above table, first column(s) repeated]

		3QTR 2002												YTD 2002
		Over (Under)						YEAR TO DATE						Over (Under)
		2Q 2002			3Q 2001			2002			2001			2001
NET CHARGE-OFFS
COMMERCIAL LOANS
Domestic Commercial			70	%		144	%	$	695		$	429			62	%
Foreign Commercial			371		NM				752			120		NM
TOTAL COMMERCIAL LOANS			185			341			1,447			549			164
CONSUMER LOANS
Credit Card — Reported			(23	)		26			1,103			716			54
Credit Card — Securitizations			6			31			1,009			784			29
Credit Card — Managed			(10	)		29			2,112			1,500			41
1-4 Family Residential Mortgages			(67	)		(53	)		41			32			28
Auto Financings			62			47			114			87			31
Other Consumer			—			—			135			133			2
TOTAL CONSUMER LOANS			(9	)		26			2,402			1,752			37
TOTAL MANAGED NET CHARGE-OFFS			40			99		$	3,849		$	2,301			67
NET CHARGE-OFF RATES — ANNUALIZED
COMMERCIAL LOANS
Domestic Commercial			82	bp		136	bp		1.43	%		0.70	%		73	bp
Foreign Commercial			542			587			2.97			0.49			248
TOTAL COMMERCIAL LOANS			236			288			1.96			0.64			132
CONSUMER LOANS
Credit Card — Reported			(140	)		80			6.57			4.88			169
Credit Card — Securitizations			(35	)		(87	)		5.36			6.06			(70	)
Credit Card — Managed			(91	)		(13	)		5.93			5.43			50
1-4 Family Residential Mortgages			(11	)		(5	)		0.10			0.08			2
Auto Financings			21			11			0.55			0.52			3
Other Consumer			18			20			2.34			2.18			16
TOTAL CONSUMER LOANS			(30	)		27			2.33			1.90			43
TOTAL MANAGED NET CHARGE-OFF RATES			79			142			2.18			1.30			88
ALLOWANCE FOR LOAN LOSSES AND RATIOS
Allowance for Loan Losses (a)			5	%		36	%
	To Total Loans		13	bp		75	bp
	To Total Nonperforming Loans		(4,100	)		(2,800	)
	To Total Nonperforming Assets		(1,900	)		(5,100	)
ALLOWANCE COMPONENTS (a)
Commercial Specific and Expected			15	%		18	%
Consumer Expected			(1	)		40
Total Specific and Expected			6			28
Residual Component			1			99
Total			5			36

(a) Represents period end balances for each respective quarter.

Page 19

J.P. MORGAN CHASE & CO.
CREDIT-RELATED INFORMATION (CONT.)
(in millions)

			Sep 30th		Jun 30th		Dec 31st
			2002		2002		2001
TELECOM AND RELATED INDUSTRIES (a)
CREDIT-RELATED ASSETS
	Investment Grade		$	4,226	$	4,733	$	4,050
	Non-Investment Grade:
		Non-Criticized		2,887		3,179		3,553
		Criticized, Performing		962		940		1,107
		Nonperforming		752		315		236
	Total Non-Investment Grade			4,601		4,434		4,896
Total Credit-Related Assets			$	8,827	$	9,167	$	8,946
COMMITMENTS
	Investment Grade		$	5,881	$	6,944	$	7,191
	Non-Investment Grade:
		Non-Criticized		2,041		2,686		3,494
		Criticized, Performing		1,459		1,176		799
	Total Non-Investment Grade			3,500		3,862		4,293
Total Commitments			$	9,381	$	10,806	$	11,484
CABLE INDUSTRY
CREDIT-RELATED ASSETS
	Investment Grade		$	1,095	$	700	$	1,057
	Non-Investment Grade:
		Non-Criticized		807		1,474		1,896
		Criticized, Performing		1,441		996		63
		Nonperforming		394		98		39
	Total Non-Investment Grade			2,642		2,568		1,998
Total Credit-Related Assets			$	3,737	$	3,268	$	3,055
COMMITMENTS
	Investment Grade		$	818	$	671	$	926
	Non-Investment Grade:
		Non-Criticized		578		404		997
		Criticized, Performing		294		213		39
	Total Non-Investment Grade			872		617		1,036
Total Commitments			$	1,690	$	1,288	$	1,962
MERCHANT ENERGY AND RELATED INDUSTRIES (b)
CREDIT-RELATED ASSETS
	Investment Grade		$	859	$	600	$	640
	Non-Investment Grade:
		Non-Criticized		546		771		723
		Criticized, Performing		659		130		43
		Nonperforming		170		20		—
	Total Non-Investment Grade			1,375		921		766
Total Credit-Related Assets			$	2,234	$	1,521	$	1,406
COMMITMENTS
	Investment Grade		$	2,611	$	3,082	$	3,207
	Non-Investment Grade:
		Non-Criticized		650		1,370		946
		Criticized, Performing		746		228		50
	Total Non-Investment Grade			1,396		1,598		996
Total Commitments			$	4,007	$	4,680	$	4,203

Note — Investment grade: JPMorgan Chase’s internal risk assessment which generally represents a risk profile similar to that of a BBB-/Baa3 or better rating as defined by independent rating agencies, such as Standard & Poor’s or Moody’s.

Criticized: JPMorgan Chase’s internal risk assessment which generally represents a risk profile similar to that of a CCC+/Caa1 or below rating as defined by these independent rating agencies.

(a)	JPMorgan Chase currently presents “Telecom and Related Industries” which includes other companies with an interdependence upon the telecommunications sector. Prior periods presented herein are on a comparable basis.
(b)	These amounts exclude Enron-related exposure.

Page 20

J.P. MORGAN CHASE & CO.
CAPITAL

																3QTR 2002
																Over (Under)
	3QTR			2QTR			1QTR			4QTR			3QTR
	2002			2002			2002			2001			2001			2Q 2002			3Q 2001
SOURCES AND USES OF TIER 1 CAPITAL (in billions)
Sources of Free Cash Flow
Operating Earnings Less Dividends	$	(0.4	) (a)	$	0.5		$	0.5		$	(0.3	)	$	0.4		NM			NM
Preferred Stock and Equivalents/Other Items		(0.1	) (a)		(0.5	)		0.2			(0.7	)		(0.4	)		80	%		75	%
Capital for Internal Asset Growth		(0.2	) (a)		0.6			0.5			1.4			(1.3	)	NM				85
Total Sources of Free Cash Flow	$	(0.7	)	$	0.6		$	1.2		$	0.4		$	(1.3	)	NM				(46	)
Uses of Free Cash Flow
Increases (Decreases) in Capital Ratios	$	(0.7)	(a)	$	0.9		$	1.4		$	0.5		$	(1.8	)	NM				61
Acquisitions		—	(a)		—			—			—			—		NM			NM
Repurchases Net of Stock Issuances		—	(a)		(0.3	)		(0.2	)		(0.1	)		0.5		NM			NM
Total Uses of Free Cash Flow	$	(0.7	)	$	0.6		$	1.2		$	0.4		$	(1.3	)	NM				46
COMMON SHARES OUTSTANDING (in millions)
Basic Weighted-Average Shares Outstanding		1,986.0			1,982.6			1,978.2			1,969.6			1,975.3			—			1
Diluted Weighted-Average Shares Outstanding		2,005.8			2,016.0			2,005.8			2,007.4			2,020.9			(1	)		(1	)
Common Shares Outstanding — at Period End		1,995.9			1,993.4			1,990.2			1,973.4			1,972.9			—			1
CASH DIVIDENDS DECLARED PER SHARE	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34			—			—
BOOK VALUE PER SHARE		21.26			20.93			20.16			20.32			21.15			2			1
SHARE PRICE
High	$	33.68		$	38.75		$	39.68		$	40.95		$	46.01			(13	)		(27	)
Low		17.86			30.15			26.70			31.30			29.04			(41	)		(38	)
Close		18.99			33.92			35.65			36.35			34.15			(44	)		(44	)
CAPITAL RATIOS
Tier I Capital Ratio		8.6	%(a)		8.8	%		8.6	%		8.3	%		8.2	%		(20	)bp		40	bp
Total Capital Ratio		12.3	(a)		12.7			12.5			11.9			11.6			(40	)		70
Tier I Leverage Ratio		5.4	(a)		5.4			5.4			5.2			5.3			—			10

[Additional columns below]

[Continued from above table, first column(s) repeated]

								YTD 2002
		YEAR TO DATE						Over (Under)
		2002			2001			2001
SOURCES AND USES OF TIER 1 CAPITAL (in billions)
Sources of Free Cash Flow
Operating Earnings Less Dividends		$	0.6	(a)	$	1.3				(54	)%
Preferred Stock and Equivalents/Other Items			(0.4	)(a)		(0.8	)			50
Capital for Internal Asset Growth			0.9	(a)		(2.3	)		NM
Total Sources of Free Cash Flow		$	1.1		$	(1.8	)		NM
Uses of Free Cash Flow
Increases (Decreases) in Capital Ratios		$	1.6	(a)	$	(1.4	)		NM
Acquisitions			—	(a)		0.1			NM
Repurchases Net of Stock Issuances			(0.5	)(a)		(0.5	)			—
Total Uses of Free Cash Flow		$	1.1		$	(1.8	)		NM
COMMON SHARES OUTSTANDING (in millions)
Basic Weighted-Average Shares Outstanding			1,982.3			1,973.5				—
Diluted Weighted-Average Shares Outstanding			2,009.3			2,028.9				(1	)
Common Shares Outstanding — at Period End			1,995.9			1,972.9				1
CASH DIVIDENDS DECLARED PER SHARE		$	1.02		$	1.02				—
BOOK VALUE PER SHARE
SHARE PRICE
	High	$	39.68		$	59.19				(33	)
	Low		17.86			29.04				(38	)
	Close		18.99			34.15				(44	)
CAPITAL RATIOS
Tier I Capital Ratio
Total Capital Ratio
Tier I Leverage Ratio

         Note: Prior periods have been restated to conform with current methodologies.

(a) Estimated

Page 21

J.P. MORGAN CHASE & CO.
Glossary of Terms

Average Managed Assets: Excludes the impact of credit card securitizations.

bp: Denotes basis points; 100 bp equals 1%.

Corporate: Includes Support Units and the effect remaining at the corporate level after the implementation of management accounting policies.

JPMorgan Partners (“JPMP”): JPMorgan Chase’s private equity business. Public securities held by JPMP are marked-to-market at the quoted public value less liquidity discounts, with the resulting unrealized gains/losses included in the income statement. JPMP’s valuation policy for public securities incorporates the use of liquidity discounts and price averaging methodologies in certain circumstances to take into account the fact that JPMP cannot immediately realize the quoted public values as a result of the regulatory, corporate and contractual sales restrictions generally imposed on these holdings. Private investments are initially carried at cost, which is viewed as an approximation of fair value. The carrying value of private investments is adjusted to reflect valuation changes resulting from unaffiliated party transactions and for evidence of a decline in value.

Managed Credit Card Receivables or Managed Basis: JPMorgan Chase uses this terminology to refer to its credit card receivables on the balance sheet plus securitized credit card receivables.

NM: Not meaningful

Operating Basis or Operating Earnings: Reported results excluding the impact of merger and restructuring costs, special items, credit card securitizations and the amortization of goodwill.

Other Consumer Loans: Consists of installment loans (direct and indirect types of consumer finance), student loans, unsecured lines of credit and foreign consumer.

Overhead Ratio: Operating expense (excluding merger and restructuring costs and special items) as a percentage of the operating revenues.

Reported Basis: Financial statements prepared under generally accepted accounting principles. The reported basis includes the impact of credit card securitizations, merger and restructuring costs, special items, and the net effect of the change in accounting principle.

Segment Results- All periods are on a comparable basis, although restatements may occur in future periods to reflect further alignment of management accounting policies or changes in organizational structures between businesses.

SFAS 133: As a result of the adoption of Statement of Financial Accounting Standards (“SFAS”) No. 133 “Accounting for Derivative Instruments and Hedging Activities”, net income for the first nine months of 2001 includes the cumulative effect of a transition adjustment of $(25) million, net of taxes. The impact on each of basic and diluted earnings per share was $(0.01).

SFAS 142: Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets.”

Shareholder Value Added (“SVA”): Represents operating earnings minus preferred dividends and an explicit charge for capital.

Special Items: Includes merger and restructuring costs and special items.

Trading-Related Revenue: Includes net interest income (“NII”) attributable to trading activities.

Unaudited: The financial statements and information included throughout this document are unaudited.

Page 22