JPMorgan Chase & Co. (JPM) 8-K Restatement of Business Segment Financial Results and Capital

EXHIBIT 99.1

RESTATEMENT OF BUSINESS SEGMENT FINANCIAL RESULTS AND CAPITAL

FULL YEAR 2000 – 2002

FIVE QUARTER TREND: FIRST QUARTER 2002 – FIRST QUARTER 2003

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

	Page
Lines of Business Restatement Summary		3
Lines of Business Financial Highlights Summary		4
Segment Detail
Investment Bank		5
Business-Related Metrics		6
Treasury & Securities Services		7
Investment Management & Private Banking		8
JPMorgan Partners		9
Chase Financial Services		10
Supports Units and Corporate		11
Capital
Available Versus Required Economic Capital		12
Glossary of Terms		13

Page 2

J.P. MORGAN CHASE & CO.
LINES OF BUSINESS RESTATEMENT SUMMARY
(in millions, except ratios)

		BEFORE RESTATEMENT (a)									AFTER RESTATEMENT (b)
Year Ended December 31,		2002			2001			2000			2002			2001			2000
OPERATING REVENUE
Investment Bank		$	12,399		$	14,671		$	15,692		$	12,645		$	14,873		$	15,837
Treasury & Securities Services			4,046			3,978			3,930			3,903			3,821			3,781
Investment Management & Private Banking			2,868			3,226			3,543			2,841			3,197			3,520
JPMorgan Partners			(954	)		(1,470	)		786			(943	)		(1,435	)		849
Chase Financial Services			13,541			10,951			10,059			13,457			10,870			9,973
Support Units and Corporate			(847	)		(964	)		(965	)		(850	)		(934	)		(915	)
	OPERATING REVENUE (c)		31,053			30,392			33,045			31,053			30,392			33,045
Impact of Credit Card Securitizations			(1,439	)		(1,048	)		(990	)		(1,439	)		(1,048	)		(990	)
Impact of Special Items			—			—			1,131			—			—			1,131
	REPORTED REVENUE (c)	$	29,614		$	29,344		$	33,186		$	29,614		$	29,344		$	33,186
OPERATING EARNINGS (d)
Investment Bank		$	1,365		$	2,918		$	3,522		$	1,383		$	2,929		$	3,506
Treasury & Securities Services			677			632			671			631			607			668
Investment Management & Private Banking			384			479			613			262			363			544
JPMorgan Partners			(789	)		(1,116	)		262			(787	)		(1,098	)		299
Chase Financial Services			2,490			1,538			1,638			2,362			1,451			1,540
Support Units and Corporate			(743	)		(649	)		(530	)		(467	)		(450	)		(381	)
	OPERATING EARNINGS (c)		3,384			3,802			6,176			3,384			3,802			6,176
Impact of Merger and Restructuring Costs and Special Items			(1,721	)		(1,715	)		(200	)		(1,721	)		(1,715	)		(200	)
Impact of Pre-SFAS 142 Goodwill Amortization		NA				(393	)		(249	)	NA				(393	)		(249	)
	NET INCOME (c)	$	1,663		$	1,694		$	5,727		$	1,663		$	1,694		$	5,727
AVERAGE ECONOMIC CAPITAL
Investment Bank		$	18,323		$	18,964		$	18,335		$	19,907		$	20,196		$	18,450
Treasury & Securities Services			2,998			2,958			2,883			2,694			2,910			2,911
Investment Management & Private Banking			6,115			6,275			4,447			5,643			5,781			4,105
JPMorgan Partners			5,454			6,475			7,590			6,293			7,557			8,932
Chase Financial Services			10,293			9,118			8,668			8,618			7,740			7,701
Support Units and Corporate			(1,815	)		(2,266	)		(5,747	)		(1,787	)		(2,660	)		(5,923	)
	TOTAL ECONOMIC CAPITAL (c) (e)	$	41,368		$	41,524		$	36,176		$	41,368		$	41,524		$	36,176
SHAREHOLDER VALUE ADDED
Investment Bank		$	(853	)	$	615		$	1,280		$	(1,028	)	$	475		$	1,247
Treasury & Securities Services			313			272			319			306			255			314
Investment Management & Private Banking			(357	)		(284	)		70			(421	)		(339	)		42
JPMorgan Partners			(1,614	)		(2,097	)		(894	)		(1,738	)		(2,243	)		(1,061	)
Chase Financial Services			1,242			430			578			1,318			510			598
Support Units and Corporate			(362	)		(183	)		386			(68	)		95			599
	TOTAL SHAREHOLDER VALUE ADDED (c) (f)	$	(1,631	)	$	(1,247	)	$	1,739		$	(1,631	)	$	(1,247	)	$	1,739
OPERATING RETURN ON ECONOMIC CAPITAL
Investment Bank			7	%		15	%		19	%		7	%		14	%		19	%
Treasury & Securities Services			23			21			23			23			21			23
Investment Management & Private Banking			6			8			14			5			6			13
Chase Financial Services			24			17			19			27			19			20
	OPERATING RETURN ON ECONOMIC CAPITAL (c)		8			9			17			8			9			17

[Additional columns below]

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

		CHANGE
Year Ended December 31,		2002			2001			2000
OPERATING REVENUE
Investment Bank		$	246		$	202		$	145
Treasury & Securities Services			(143	)		(157	)		(149	)
Investment Management & Private Banking			(27	)		(29	)		(23	)
JPMorgan Partners			11			35			63
Chase Financial Services			(84	)		(81	)		(86	)
Support Units and Corporate			(3	)		30			50
	OPERATING REVENUE (c)		—			—			—
Impact of Credit Card Securitizations			—			—			—
Impact of Special Items			—			—			—
	REPORTED REVENUE (c)		—			—			—
OPERATING EARNINGS (d)
Investment Bank			18			11			(16	)
Treasury & Securities Services			(46	)		(25	)		(3	)
Investment Management & Private Banking			(122	)		(116	)		(69	)
JPMorgan Partners			2			18			37
Chase Financial Services			(128	)		(87	)		(98	)
Support Units and Corporate			276			199			149
	OPERATING EARNINGS (c)		—			—			—
Impact of Merger and Restructuring Costs and Special Items			—			—			—
Impact of Pre-SFAS 142 Goodwill Amortization			—			—			—
	NET INCOME (c)		—			—			—
AVERAGE ECONOMIC CAPITAL
Investment Bank			1,584			1,232			115
Treasury & Securities Services			(304	)		(48	)		28
Investment Management & Private Banking			(472	)		(494	)		(342	)
JPMorgan Partners			839			1,082			1,342
Chase Financial Services			(1,675	)		(1,378	)		(967	)
Support Units and Corporate			28			(394	)		(176	)
	TOTAL ECONOMIC CAPITAL (c) (e)		—			—			—
SHAREHOLDER VALUE ADDED
Investment Bank			(175	)		(140	)		(33	)
Treasury & Securities Services			(7	)		(17	)		(5	)
Investment Management & Private Banking			(64	)		(55	)		(28	)
JPMorgan Partners			(124	)		(146	)		(167	)
Chase Financial Services			76			80			20
Support Units and Corporate			294			278			213
	TOTAL SHAREHOLDER VALUE ADDED (c) (f)		—			—			—
OPERATING RETURN ON ECONOMIC CAPITAL
Investment Bank			—	bp		(100	) bp		—	bp
Treasury & Securities Services			—			—			—
Investment Management & Private Banking			(100	)		(200	)		(100	)
Chase Financial Services			300			200			100
	OPERATING RETURN ON ECONOMIC CAPITAL (c)		—			—			—

(a)	Reflects the original reported results as disclosed in the 2002 JPMorgan Chase Annual Report.
(b)	Reflects results after the restatement as discussed in Item 9 (and Item 12) of this Form 8-K.
(c)	Represents consolidated JPMorgan Chase.
(d)	For a discussion of the Firm’s approach regarding operating earnings, see footnote (b) on page 4.
(e)	Represents the Firm’s average common stockholders’ equity.
(f)	For a reconciliation of net income to shareholder value added, see Exhibit 99.2.

Page 3

J.P. MORGAN CHASE & CO.
LINES OF BUSINESS FINANCIAL HIGHLIGHTS SUMMARY – RESTATED
(in millions, except ratios)

																	1QTR 2003
																	Over (Under)
		1QTR			4QTR			3QTR			2QTR			1QTR
		2003			2002			2002			2002			2002			4Q 2002			1Q 2002
OPERATING REVENUE
Investment Bank		$	4,068		$	3,355		$	2,481		$	3,154		$	3,655			21	%		11	%
Treasury & Securities Services			935			941			1,029			991			942			(1	)		(1	)
Investment Management & Private Banking			643			652			695			729			765			(1	)		(16	)
JPMorgan Partners			(278	)		(83	)		(359	)		(193	)		(308	)		(235	)		10
Chase Financial Services			3,696			3,334			3,668			3,400			3,055			11			21
Support Units and Corporate			(201	)		(274	)		(213	)		(173	)		(190	)		27			(6	)
	OPERATING REVENUE (a)		8,863			7,925			7,301			7,908			7,919			12			12
Impact of Credit Card Securitizations			(457	)		(430	)		(354	)		(334	)		(321	)		(6	)		(42	)
Impact of Special Items			—			—			—			—			—			NM			NM
	REPORTED REVENUE (a)	$	8,406		$	7,495		$	6,947		$	7,574		$	7,598			12			11
OPERATING EARNINGS (b)
Investment Bank		$	946		$	363		$	(256	)	$	507		$	769			161			23
Treasury & Securities Services			131			129			201			165			136			2			(4	)
Investment Management & Private Banking			36			12			68			82			100			200			(64	)
JPMorgan Partners			(217	)		(96	)		(278	)		(168	)		(245	)		(126	)		11
Chase Financial Services			677			467			760			649			486			45			39
Support Units and Corporate			(173	)		(145	)		(170	)		(56	)		(96	)		(19	)		(80	)
	OPERATING EARNINGS (a)		1,400			730			325			1,179			1,150			92			22
Impact of Merger and Restructuring Costs and Special Items			—			(1,117	)		(285	)		(151	)		(168	)		NM			NM
Impact of Pre-SFAS 142 Goodwill Amortization			NA			NA			NA			NA			NA			NA			NA
	NET INCOME (a)	$	1,400		$	(387	)	$	40		$	1,028		$	982		NM				43
OPERATING RETURN ON ECONOMIC CAPITAL
Investment Bank			18	%		7	%		NM			10	%		15	%		1,100	bp		300	bp
Treasury & Securities Services			19			19			31	%		25			20			—			(100	)
Investment Management & Private Banking			3			1			5			6			7			200			(400	)
Chase Financial Services			32			22			35			30			23			1,000			900
OPERATING RETURN ON ECONOMIC CAPITAL (a)			13			7			3			11			11			600			200

[Additional columns below]

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

											2002
		FULL YEAR									Over (Under)
		2002			2001			2000			2001
OPERATING REVENUE
Investment Bank		$	12,645		$	14,873		$	15,837			(15	)%
Treasury & Securities Services			3,903			3,821			3,781			2
Investment Management & Private Banking			2,841			3,197			3,520			(11	)
JPMorgan Partners			(943	)		(1,435	)		849			34
Chase Financial Services			13,457			10,870			9,973			24
Support Units and Corporate			(850	)		(934	)		(915	)		9
	OPERATING REVENUE (a)		31,053			30,392			33,045			2
Impact of Credit Card Securitizations			(1,439	)		(1,048	)		(990	)		(37	)
Impact of Special Items			—			—			1,131			NM
	REPORTED REVENUE (a)	$	29,614		$	29,344		$	33,186			1
OPERATING EARNINGS (b)
Investment Bank		$	1,383		$	2,929		$	3,506			(53	)
Treasury & Securities Services			631			607			668			4
Investment Management & Private Banking			262			363			544			(28	)
JPMorgan Partners			(787	)		(1,098	)		299			28
Chase Financial Services			2,362			1,451			1,540			63
Support Units and Corporate			(467	)		(450	)		(381	)		(4	)
	OPERATING EARNINGS (a)		3,384			3,802			6,176			(11	)
Impact of Merger and Restructuring Costs and Special Items			(1,721	)		(1,715	)		(200	)		—
Impact of Pre-SFAS 142 Goodwill Amortization			NA			(393	)		(249	)		NA
	NET INCOME (a)	$	1,663		$	1,694		$	5,727			(2	)
OPERATING RETURN ON ECONOMIC CAPITAL
Investment Bank			7	%		14	%		19	%		(700	) bp
Treasury & Securities Services			23			21			23			200
Investment Management & Private Banking			5			6			13			(100	)
Chase Financial Services			27			19			20			800
OPERATING RETURN ON ECONOMIC CAPITAL (a)			8			9			17			(100	)

(a)

Represents consolidated JPMorgan Chase.

(b)

In addition to analyzing the Firm’s results on a reported basis, management looks at operating earnings (or “operating basis”) to assess each of its businesses and to measure overall Firm results against targeted goals. The definition of operating basis starts with the reported U.S. GAAP (accounting principles generally accepted in the United States of America) results and then excludes the impact of merger and restructuring costs, credit card securitizations, the amortization of goodwill and special items (which management defined as significant nonrecurring gains or losses of $75 million or more during 2002 and $50 million or more prior to 2002). Both restructuring charges and special items are viewed by management as transactions that are not part of the Firm’s normal daily business operations or are unusual in nature and therefore are not indicative of trends. For a more detailed explanation of how the Firm looks at results on an “operating basis,” see Reconciliation from Reported Results to Operating Basis on page 29 of JPMorgan Chase’s March 31, 2003, Quarterly Report on Form 10-Q and on page 22 of JPMorgan Chase’s 2002 Annual Report.

Page 4

SEGMENT DETAIL

J.P. MORGAN CHASE & CO.
INVESTMENT BANK
FINANCIAL HIGHLIGHTS – RESTATED
(in millions, except ratios)

																	1QTR 2003
																	Over (Under)
		1QTR			4QTR			3QTR			2QTR			1QTR
		2003			2002			2002			2002			2002			4Q 2002			1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Trading Revenue (Includes Trading NII):
	Fixed Income and Other	$	1,730		$	1,298		$	631		$	1,034		$	1,503			33	%		15	%
	Equities		199			(33	)		(254	)		96			201		NM				(1	)
			1,929			1,265			377			1,130			1,704			52			13
Investment Banking Fees			620			650			529			781			736			(5	)		(16	)
Net Interest Income			735			674			681			681			757			9			(3	)
Fees and Commissions			380			370			432			429			388			3			(2	)
Securities Gains			383			376			465			108			127			2			202
All Other Revenue			21			20			(3	)		25			(57	)		5		NM
	TOTAL OPERATING REVENUE		4,068			3,355			2,481			3,154			3,655			21			11
EXPENSE:
Compensation Expense			1,321			1,065			721			1,057			1,130			24			17
Noncompensation Expense			836			882			848			820			905			(5	)		(8	)
	Operating Expense (Excludes Severance and Related Costs)		2,157			1,947			1,569			1,877			2,035			11			6
Severance and Related Costs			104			337			79			124			47			(69	)		121
	TOTAL OPERATING EXPENSE		2,261			2,284			1,648			2,001			2,082			(1	)		9
Operating Margin			1,807			1,071			833			1,153			1,573			69			15
Credit Costs			245			489			1,316			306			282			(50	)		(13	)
Corporate Credit Allocation			(14	)		(19	)		(25	)		(21	)		(22	)		26			36
Operating Income (Loss) Before Income Tax Expense			1,548			563			(508	)		826			1,269			175			22
Income Tax Expense (Benefit)			602			200			(252	)		319			500			201			20
OPERATING EARNINGS (LOSS)		$	946		$	363		$	(256	)	$	507		$	769			161			23
Average Economic Capital		$	20,825		$	20,317		$	19,443		$	19,638		$	20,233			3			3
Average Assets			525,613			515,614			494,699			503,339			467,616			2			12
Shareholder Value Added			324			(258	)		(849	)		(86	)		165		NM				96
Return on Economic Capital			18	%		7	%		NM			10	%		15	%		1,100	bp		300	bp
Overhead Ratio			56			68			66	%		63			57			(1,200	)		(100	)
Overhead Ratio Excl. Severance and Related Costs			53			58			63			60			56			(500	)		(300	)
Compensation Expense as a % of Operating Revenue Excl. Severance and Related Costs			32			32			29			34			31			—			100

[Additional columns below]

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

											2002
		FULL YEAR									Over (Under)
		2002			2001			2000			2001
OPERATING INCOME STATEMENT
REVENUE:
Trading Revenue (Includes Trading NII):
	Fixed Income and Other	$	4,466		$	5,013		$	5,122			(11	)%
	Equities		10			1,190			1,636			(99	)
			4,476			6,203			6,758			(28	)
Investment Banking Fees			2,696			3,591			4,345			(25	)
Net Interest Income			2,793			3,112			2,563			(10	)
Fees and Commissions			1,619			1,501			1,537			8
Securities Gains			1,076			538			(8	)		100
All Other Revenue			(15	)		(72	)		642			79
	TOTAL OPERATING REVENUE		12,645			14,873			15,837			(15	)
EXPENSE:
Compensation Expense			3,973			5,278			6,240			(25	)
Noncompensation Expense			3,455			3,509			3,593			(2	)
	Operating Expense (Excludes Severance and Related Costs)		7,428			8,787			9,833			(15	)
Severance and Related Costs			587			—			—		NM
	TOTAL OPERATING EXPENSE		8,015			8,787			9,833			(9	)
Operating Margin			4,630			6,086			6,004			(24	)
Credit Costs			2,393			1,159			246			106
Corporate Credit Allocation			(87	)		(98	)		(124	)		11
Operating Income (Loss) Before Income Tax Expense			2,150			4,829			5,634			(55	)
Income Tax Expense (Benefit)			767			1,900			2,128			(60	)
OPERATING EARNINGS (LOSS)		$	1,383		$	2,929		$	3,506			(53	)
Average Economic Capital		$	19,907		$	20,196		$	18,450			(1	)
Average Assets			495,447			510,668			470,036			(3	)
Shareholder Value Added			(1,028	)		475			1,247		NM
Return on Economic Capital			7	%		14	%		19	%		(700	) bp
Overhead Ratio			63			59			62			400
Overhead Ratio Excl. Severance and Related Costs			59			59			62			—
Compensation Expense as a % of Operating Revenue Excl. Severance and Related Costs			31			35			39			(400	)

Page 5

J.P. MORGAN CHASE & CO.
INVESTMENT BANK
BUSINESS-RELATED METRICS – RESTATED
(in millions)

													1QTR 2003
													Over (Under)
		1QTR		4QTR		3QTR			2QTR		1QTR
		2003		2002		2002			2002		2002		4Q 2002			1Q 2002
BUSINESS REVENUE:
INVESTMENT BANKING FEES
	Advisory	$	160	$	216	$	139		$	194	$	194		(26	)%		(18	)%
	Underwriting and Other Fees		460		434		390			587		542		6			(15	)
TOTAL			620		650		529			781		736		(5	)		(16	)
CAPITAL MARKETS & LENDING
	Fixed Income		1,992		1,580		909			1,289		1,763		26			13
	Treasury		607		578		607			269		385		5			58
	Credit Portfolio		413		356		440			442		329		16			26
	Equities		436		191		(4	)		373		442		128			(1	)
TOTAL			3,448		2,705		1,952			2,373		2,919		27			18
TOTAL OPERATING REVENUE		$	4,068	$	3,355	$	2,481		$	3,154	$	3,655		21			11
MEMO:
CAPITAL MARKETS & LENDING TOTAL RETURN REVENUE (a)
	Fixed Income	$	1,954	$	1,497	$	943		$	1,362	$	1,721		31			14
	Treasury		536		464		364			215		470		16			14
	Credit Portfolio		413		356		440			442		329		16			26
	Equities		436		191		(4	)		373		442		128			(1	)
TOTAL		$	3,339	$	2,508	$	1,743		$	2,392	$	2,962		33			13

[Additional columns below]

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

								2002
		FULL YEAR						Over (Under)
		2002		2001		2000		2001
BUSINESS REVENUE:
INVESTMENT BANKING FEES
	Advisory	$	743	$	1,248	$	1,802		(40	)%
	Underwriting and Other Fees		1,953		2,343		2,543		(17	)
TOTAL			2,696		3,591		4,345		(25	)
CAPITAL MARKETS & LENDING
	Fixed Income		5,541		6,294		5,940		(12	)
	Treasury		1,839		1,520		619		21
	Credit Portfolio		1,567		1,227		2,268		28
	Equities		1,002		2,241		2,665		(55	)
TOTAL			9,949		11,282		11,492		(12	)
TOTAL OPERATING REVENUE		$	12,645	$	14,873	$	15,837		(15	)
MEMO:
CAPITAL MARKETS & LENDING TOTAL RETURN REVENUE (a)
	Fixed Income	$	5,523	$	6,380	$	6,083		(13	)
	Treasury		1,513		949		1,078		59
	Credit Portfolio		1,567		1,227		2,268		28
	Equities		1,002		2,241		2,665		(55	)
TOTAL		$	9,605	$	10,797	$	12,094		(11	)

(a) Total return revenue includes operating revenues plus the unrealized gains or losses on third-party or internally transfer-priced assets and liabilities, primarily in fixed income and treasury activities, which are not accounted for on a mark-to-market basis through earnings.

Page 6

J.P. MORGAN CHASE & CO.
TREASURY & SECURITIES SERVICES
FINANCIAL HIGHLIGHTS – RESTATED
(in millions, except ratios)

																	1QTR 2003
																	Over (Under)
		1QTR			4QTR			3QTR			2QTR			1QTR
		2003			2002			2002			2002			2002			4Q 2002			1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions		$	598		$	581		$	605		$	621		$	606			3	%		(1	)%
Net Interest Income			299			314			312			310			301			(5	)		(1	)
All Other Revenue			38			46			112			60			35			(17	)		9
	TOTAL OPERATING REVENUE		935			941			1,029			991			942			(1	)		(1	)
EXPENSE:
Compensation Expense			319			285			290			302			304			12			5
Noncompensation Expense			425			467			450			449			445			(9	)		(4	)
	TOTAL OPERATING EXPENSE		744			752			740			751			749			(1	)		(1	)
Operating Margin			191			189			289			240			193			1			(1	)
Credit Costs			1			2			(1	)		(1	)		1			(50	)		—
Corporate Credit Allocation			14			19			25			21			22			(26	)		(36	)
Operating Income Before Income Tax Expense			204			206			315			262			214			(1	)		(5	)
Income Tax Expense			73			77			114			97			78			(5	)		(6	)
OPERATING EARNINGS		$	131		$	129		$	201		$	165		$	136			2			(4	)
Average Economic Capital		$	2,759		$	2,720		$	2,603		$	2,662		$	2,792			1			(1	)
Average Assets			17,504			19,279			15,943			18,919			16,978			(9	)		3
Shareholder Value Added			49			46			122			85			53			7			(8	)
Return on Economic Capital			19	%		19	%		31	%		25	%		20	%		—	bp		(100	) bp
Overhead Ratio			80			80			72			76			80			—			—
OPERATING REVENUE BY BUSINESS:
	Treasury Services	$	479		$	470		$	467		$	440		$	447			2	%		7	%
	Investor Services		340			334			384			416			381			2			(11	)
	Institutional Trust Services		205			225			221			222			203			(9	)		1
	Other		(89	)		(88	)		(43	)		(87	)		(89	)		(1	)		—
	Total Treasury & Securities Services	$	935		$	941		$	1,029		$	991		$	942			(1	)		(1	)

[Additional columns below]

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

											2002
		FULL YEAR									Over (Under)
		2002			2001			2000			2001
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions		$	2,413		$	2,291		$	2,095			5	%
Net Interest Income			1,237			1,316			1,390			(6	)
All Other Revenue			253			214			296			18
	TOTAL OPERATING REVENUE		3,903			3,821			3,781			2
EXPENSE:
Compensation Expense			1,181			1,153			1,061			2
Noncompensation Expense			1,811			1,809			1,769			—
	TOTAL OPERATING EXPENSE		2,992			2,962			2,830			1
Operating Margin			911			859			951			6
Credit Costs			1			7			4			(86	)
Corporate Credit Allocation			87			98			124			(11	)
Operating Income Before Income Tax Expense			997			950			1,071			5
Income Tax Expense			366			343			403			7
OPERATING EARNINGS		$	631		$	607		$	668			4
Average Economic Capital		$	2,694		$	2,910		$	2,911			(7	)
Average Assets			17,781			18,553			16,555			(4	)
Shareholder Value Added			306			255			314			20
Return on Economic Capital			23	%		21	%		23	%		200	bp
Overhead Ratio			77			78			75			(100	)
OPERATING REVENUE BY BUSINESS:
	Treasury Services	$	1,824		$	1,724		$	1,708			6	%
	Investor Services		1,515			1,650			1,720			(8	)
	Institutional Trust Services		871			760			656			15
	Other		(307	)		(313	)		(303	)		2
	Total Treasury & Securities Services	$	3,903		$	3,821		$	3,781			2

Page 7

J.P. MORGAN CHASE & CO.
INVESTMENT MANAGEMENT & PRIVATE BANKING
FINANCIAL HIGHLIGHTS – RESTATED
(in millions, except ratios)

																	1QTR 2003
																	Over (Under)
		1QTR			4QTR			3QTR			2QTR			1QTR
		2003			2002			2002			2002			2002			4Q 2002			1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions		$	511		$	507		$	519		$	560		$	590			1	%		(13	)%
Net Interest Income			116			107			117			113			112			8			4
All Other Revenue			16			38			59			56			63			(58	)		(75	)
	TOTAL OPERATING REVENUE		643			652			695			729			765			(1	)		(16	)
EXPENSE:
Compensation Expense			285			311			267			261			286			(8	)		—
Noncompensation Expense			289			315			296			315			295			(8	)		(2	)
	TOTAL OPERATING EXPENSE		574			626			563			576			581			(8	)		(1	)
Operating Margin			69			26			132			153			184			165			(63	)
Credit Costs			6			12			26			23			23			(50	)		(74	)
Operating Income Before Income Tax Expense			63			14			106			130			161			350			(61	)
Income Tax Expense			27			2			38			48			61		NM				(56	)
OPERATING EARNINGS		$	36		$	12		$	68		$	82		$	100			200			(64	)
Average Economic Capital		$	5,432		$	5,540		$	5,607		$	5,741		$	5,686			(2	)		(4	)
Average Assets			32,346			33,522			34,968			36,478			38,007			(4	)		(15	)
Shareholder Value Added			(126	)		(155	)		(104	)		(92	)		(70	)		19			(80	)
Tangible Shareholder Value Added			(1	)		(28	)		26			37			59			96		NM
Return on Economic Capital			3	%		1	%		5	%		6	%		7	%	200		bp	(400		) bp
Tangible Return on Economic Capital			12			5			19			21			27			700			(1,500	)
Overhead Ratio			89			96			81			79			76			(700	)		1,300
Pre-Tax Margin Ratio			10			2			15			18			21			800			(1,100	)

[Additional columns below]

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

												2002
			FULL YEAR									Over (Under)
			2002			2001			2000			2001
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions			$	2,176		$	2,399		$	2,315			(9	)%
Net Interest Income				449			557			683			(19	)
All Other Revenue				216			241			522			(10	)
		TOTAL OPERATING REVENUE		2,841			3,197			3,520			(11	)
EXPENSE:
Compensation Expense				1,125			1,302			1,416			(14	)
Noncompensation Expense				1,221			1,264			1,172			(3	)
	TOTAL OPERATING EXPENSE			2,346			2,566			2,588			(9	)
Operating Margin				495			631			932			(22	)
Credit Costs				84			36			25			133
Operating Income Before Income Tax Expense				411			595			907			(31	)
Income Tax Expense				149			232			363			(36	)
OPERATING EARNINGS			$	262		$	363		$	544			(28	)
Average Economic Capital			$	5,643		$	5,781		$	4,105			(2	)
Average Assets				35,729			36,896			33,674			(3	)
Shareholder Value Added				(421	)		(339	)		42			(24	)
Tangible Shareholder Value Added				94			172			305			(45	)
Return on Economic Capital				5	%		6	%		13	%	(100		) bp
Tangible Return on Economic Capital				18			23			29			(500	)
Overhead Ratio				83			80			74			300
Pre-Tax Margin Ratio				14			19			26			(500	)

Page 8

J.P. MORGAN CHASE & CO.
JPMORGAN PARTNERS
FINANCIAL HIGHLIGHTS – RESTATED
(in millions)

																			1QTR 2003
																			Over (Under)
				1QTR			4QTR			3QTR			2QTR			1QTR
				2003			2002			2002			2002			2002			4Q 2002			1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Direct Investments:
	Realized Cash Gains (Net)			$	46		$	144		$	91		$	91		$	126			(68	)%		(63	)%
	Write-downs / Write-offs				(176	)		(225	)		(210	)		(206	)		(184	)		22			4
	Mark-to-Market				(6	)		108			(120	)		(20	)		(178	)	NM				97
			Total Direct Investments		(136	)		27			(239	)		(135	)		(236	)	NM				42
Third Party Funds (Net)					(94	)		(80	)		(60	)		9			(19	)		(18	)		(395	)
Total Private Equity Gains (Losses)					(230	)		(53	)		(299	)		(126	)		(255	)		(334	)		10
Net Interest Income (Loss)					(62	)		(58	)		(63	)		(74	)		(73	)		(7	)		15
Fees and Other Revenue					14			28			3			7			20			(50	)		(30	)
			TOTAL OPERATING REVENUE		(278	)		(83	)		(359	)		(193	)		(308	)		(235	)		10
EXPENSE:
Compensation Expense					34			24			33			34			37			42			(8	)
Noncompensation Expense					29			45			46			39			41			(36	)		(29	)
		TOTAL OPERATING EXPENSE			63			69			79			73			78			(9	)		(19	)
Operating Income (Loss) Before Income Tax Expense					(341	)		(152	)		(438	)		(266	)		(386	)		(124	)		12
Income Tax Expense (Benefit)					(124	)		(56	)		(160	)		(98	)		(141	)		(121	)		12
OPERATING EARNINGS (LOSS)				$	(217	)	$	(96	)	$	(278	)	$	(168	)	$	(245	)		(126	)		11
Average Economic Capital				$	5,985		$	6,102		$	6,183		$	6,330		$	6,565			(2	)		(9	)
Average Assets					9,428			9,629			9,404			9,611			10,074			(2	)		(6	)
Shareholder Value Added					(440	)		(327	)		(514	)		(407	)		(490	)		(35	)		10

[Additional columns below]

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

													2002
				FULL YEAR									Over (Under)
				2002			2001			2000			2001
OPERATING INCOME STATEMENT
REVENUE:
Direct Investments:
	Realized Cash Gains (Net)			$	452		$	957		$	2,009			(53	)%
	Write-downs / Write-offs				(825	)		(1,415	)		(296	)		42
	Mark-to-Market				(210	)		(522	)		(1,096	)		60
			Total Direct Investments		(583	)		(980	)		617			41
Third Party Funds (Net)					(150	)		(203	)		380			26
Total Private Equity Gains (Losses)					(733	)		(1,183	)		997			38
Net Interest Income (Loss)					(268	)		(273	)		(237	)		2
Fees and Other Revenue					58			21			89			176
			TOTAL OPERATING REVENUE		(943	)		(1,435	)		849			34
EXPENSE:
Compensation Expense					128			144			162			(11	)
Noncompensation Expense					171			149			234			15
		TOTAL OPERATING EXPENSE			299			293			396			2
Operating Income (Loss) Before Income Tax Expense					(1,242	)		(1,728	)		453			28
Income Tax Expense (Benefit)					(455	)		(630	)		154			28
OPERATING EARNINGS (LOSS)				$	(787	)	$	(1,098	)	$	299			28
Average Economic Capital				$	6,293		$	7,557		$	8,932			(17	)
Average Assets					9,677			11,698			13,345			(17	)
Shareholder Value Added					(1,738	)		(2,243	)		(1,061	)		23

Page 9

J.P. MORGAN CHASE & CO.
CHASE FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS – RESTATED
(in millions, except ratios)

																	1QTR 2003
																	Over (Under)
		1QTR			4QTR			3QTR			2QTR			1QTR
		2003			2002			2002			2002			2002			4Q 2002			1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Net Interest Income		$	2,319		$	2,128		$	2,107		$	2,072		$	1,986			9	%		17	%
Fees and Commissions			935			603			1,233			1,134			894			55			5
Securities Gains (Losses)			102			375			112			19			(13	)		(73	)	NM
All Other Revenue			340			228			216			175			188			49			81
	TOTAL OPERATING REVENUE		3,696			3,334			3,668			3,400			3,055			11			21
EXPENSE:
Compensation Expense			733			634			677			668			645			16			14
Noncompensation Expense			1,021			1,078			981			958			899			(5	)		14
	TOTAL OPERATING EXPENSE		1,754			1,712			1,658			1,626			1,544			2			14
Operating Margin			1,942			1,622			2,010			1,774			1,511			20			29
Credit Costs			877			875			823			736			726			—			21
Operating Income Before Income Tax Expense			1,065			747			1,187			1,038			785			43			36
Income Tax Expense			388			280			427			389			299			39			30
OPERATING EARNINGS		$	677		$	467		$	760		$	649		$	486			45			39
Average Economic Capital		$	8,469		$	8,516		$	8,637		$	8,716		$	8,606			(1	)		(2	)
Average Managed Assets (a)			202,341			188,478			178,825			175,555			175,593			7			15
Shareholder Value Added			424			207			496			386			229			105			85
Return on Economic Capital			32	%		22	%		35	%		30	%		23	%		1,000	bp		900	bp
Overhead Ratio			47			51			45			48			51			(400	)		(400	)
CHASE FINANCIAL SERVICES’ BUSINESSES
CHASE HOME FINANCE:
Operating Revenue		$	1,137		$	637		$	971		$	770		$	527			78	%		116	%
Operating Expense			361			380			312			312			297			(5	)		22
Operating Earnings			431			146			385			261			128			195			237
Overhead Ratio			32	%		60	%		32	%		41	%		56	%		(2,800	) bp		(2,400	) bp
CHASE CARDMEMBER SERVICES:
Operating Revenue		$	1,469		$	1,571		$	1,557		$	1,486		$	1,352			(6	)%		9	%
Operating Expense			535			610			547			523			481			(12	)		11
Operating Earnings			153			140			232			166			138			9			11
Overhead Ratio			36	%		39	%		35	%		35	%		36	%		(300	) bp		—	bp
CHASE AUTO FINANCE:
Operating Revenue		$	199		$	187		$	165		$	165		$	171			6	%		16	%
Operating Expense			67			65			61			61			61			3			10
Operating Earnings			39			36			24			79			30			8			30
Overhead Ratio			34	%		35	%		37	%		37	%		36	%		(100	) bp		(200	) bp
CHASE REGIONAL BANKING:
Operating Revenue		$	632		$	694		$	699		$	713		$	727			(9	)%		(13	)%
Operating Expense			564			565			550			553			558			—			1
Operating Earnings			36			79			76			90			114			(54	)		(68	)
Overhead Ratio			89	%		82	%		79	%		78	%		77	%		700	bp		1,200	bp
CHASE MIDDLE MARKET:
Operating Revenue		$	364		$	358		$	377		$	362		$	371			2	%		(2	)%
Operating Expense			210			225			201			210			206			(7	)		2
Operating Earnings			91			57			94			90			83			60			10
Overhead Ratio			58	%		63	%		53	%		58	%		56	%		(500	) bp		200	bp

[Additional columns below]

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

											2002
		FULL YEAR									Over (Under)
		2002			2001			2000			2001
OPERATING INCOME STATEMENT
REVENUE:
Net Interest Income		$	8,293		$	6,832		$	6,098			21	%
Fees and Commissions			3,864			2,894			3,216			34
Securities Gains (Losses)			493			378			252			30
All Other Revenue			807			766			407			5
	TOTAL OPERATING REVENUE		13,457			10,870			9,973			24
EXPENSE:
Compensation Expense			2,624			2,368			2,218			11
Noncompensation Expense			3,916			3,308			3,153			18
	TOTAL OPERATING EXPENSE		6,540			5,676			5,371			15
Operating Margin			6,917			5,194			4,602			33
Credit Costs			3,160			2,874			2,094			10
Operating Income Before Income Tax Expense			3,757			2,320			2,508			62
Income Tax Expense			1,395			869			968			61
OPERATING EARNINGS		$	2,362		$	1,451		$	1,540			63
Average Economic Capital		$	8,618		$	7,740		$	7,701			11
Average Managed Assets (a)			179,646			163,001			146,966			10
Shareholder Value Added			1,318			510			598			158
Return on Economic Capital			27	%		19	%		20	%		800	bp
Overhead Ratio			49			52			54			(300	)
CHASE FINANCIAL SERVICES’ BUSINESSES
CHASE HOME FINANCE:
Operating Revenue		$	2,905		$	1,678		$	1,326			73	%
Operating Expense			1,301			993			796			31
Operating Earnings			920			394			309			134
Overhead Ratio			45	%		59	%		60	%		(1,400	) bp
CHASE CARDMEMBER SERVICES:
Operating Revenue		$	5,966		$	4,453		$	3,805			34	%
Operating Expense			2,161			1,598			1,429			35
Operating Earnings			676			478			410			41
Overhead Ratio			36	%		36	%		38	%		—	bp
CHASE AUTO FINANCE:
Operating Revenue		$	688		$	544		$	333			26	%
Operating Expense			248			202			178			23
Operating Earnings			169			123			38			37
Overhead Ratio			36	%		37	%		54	%		(100	) bp
CHASE REGIONAL BANKING:
Operating Revenue		$	2,833		$	3,091		$	3,148			(8	)%
Operating Expense			2,226			2,183			2,195			2
Operating Earnings			359			475			494			(24	)
Overhead Ratio			79	%		71	%		70	%		800	bp
CHASE MIDDLE MARKET:
Operating Revenue		$	1,468		$	1,413		$	1,420			4	%
Operating Expense			842			813			805			4
Operating Earnings			324			275			316			18
Overhead Ratio			57	%		58	%		57	%		(100	) bp

(a) Includes credit card receivables that have been securitized.

Page 10

J.P. MORGAN CHASE & CO.
SUPPORT UNITS AND CORPORATE
FINANCIAL HIGHLIGHTS – RESTATED
(in millions)

																1QTR 2003
																Over (Under)
	1QTR			4QTR			3QTR			2QTR			1QTR
	2003			2002			2002			2002			2002			4Q 2002			1Q 2002
OPERATING INCOME STATEMENT
OPERATING REVENUE	$	(201	)	$	(274	)	$	(213	)	$	(173	)	$	(190	)		27	%		(6	)%
OPERATING EXPENSE		145			25			(68	)		(62	)		69			480			110
Credit Costs		71			(27	)		26			91			42		NM				69
Pre-Tax Loss		(417	)		(272	)		(171	)		(202	)		(301	)		(53	)		(39	)
Income Tax Benefit		(244	)		(127	)		(1	)		(146	)		(205	)		(92	)		(19	)
OPERATING EARNINGS (LOSS)	$	(173	)	$	(145	)	$	(170	)	$	(56	)	$	(96	)		(19	)		(80	)
Average Economic Capital	$	(1,612	)	$	(1,225	)	$	(305	)	$	(2,198	)	$	(3,465	)		(32	)		53
Average Assets		22,840			19,200			18,875			16,333			32,143			19			(29	)
Shareholder Value Added		(83	)		(64	)		(115	)		57			54			(30	)	NM

[Additional columns below]

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

										2002
	FULL YEAR									Over (Under)
	2002			2001			2000			2001
OPERATING INCOME STATEMENT
OPERATING REVENUE	$	(850	)	$	(934	)	$	(915	)		9	%
OPERATING EXPENSE		(36	)		204			240		NM
Credit Costs		132			154			1			(14	)
Pre-Tax Loss		(946	)		(1,292	)		(1,156	)		27
Income Tax Benefit		(479	)		(842	)		(775	)		43
OPERATING EARNINGS (LOSS)	$	(467	)	$	(450	)	$	(381	)		(4	)
Average Economic Capital	$	(1,787	)	$	(2,660	)	$	(5,923	)		33
Average Assets		21,596			13,132			15,004			64
Shareholder Value Added		(68	)		95			599		NM

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CAPITAL

J.P. MORGAN CHASE & CO.
AVAILABLE VERSUS REQUIRED ECONOMIC CAPITAL
(in billions)

				BEFORE RESTATEMENT									AFTER RESTATEMENT
Year Ended December 31,				2002			2001			2000			2002			2001			2000
Common Stockholders’ Equity				$	41.4		$	41.5		$	36.2		$	41.4		$	41.5		$	36.2
Required Economic Capital
		Credit Risk			13.1			12.8			12.4			14.0			13.7			13.6
		Market Risk			4.8			4.6			4.5			4.7			4.5			4.5
		Operating Risk			8.7			8.8			9.2			—			—			—
		Operational Risk			—			—			—			3.5			3.5			3.5
		Business Risk			—			—			—			1.8			1.8			1.8
		Private Equity Risk			5.1			6.4			7.2			5.8			7.2			8.2
			Economic Risk Capital		31.7			32.6			33.3			29.8			30.7			31.6
		Goodwill / Intangibles			8.8			8.5			6.1			8.8			8.5			6.1
		Asset Capital Tax			3.8			3.9			3.8			3.9			3.9			3.8
			Capital Against Nonrisk Factors		12.6			12.4			9.9			12.7			12.4			9.9
	Diversification Effect				(7.0	)		(7.2	)		(7.3	)		(5.3	)		(5.5	)		(5.6	)
	Total Required Economic Capital				37.3			37.8			35.9			37.2			37.6			35.9
	Capital in Excess of Required Economic Capital			$	4.1		$	3.7		$	0.3		$	4.2		$	3.9		$	0.3

				QUARTERLY AVERAGES															1QTR 2003
				1QTR			4QTR			3QTR			2QTR			1QTR			Over (Under)
AFTER RESTATEMENT				2003			2002			2002			2002			2002			4Q 2002			1Q 2002
Common Stockholders’ Equity				$	41.9		$	42.0		$	42.2		$	40.9		$	40.4			—	%		4	%
Required Economic Capital
		Credit Risk			15.1			14.7			13.5			13.5			14.3			3			6
		Market Risk			4.2			4.1			4.8			4.9			5.3			2			(21	)
		Operational Risk			3.5			3.5			3.5			3.5			3.5			—			—
		Business Risk			1.7			1.8			1.8			1.8			1.8			(6	)		(6	)
		Private Equity Risk			5.4			5.5			5.7			5.9			5.9			(2	)		(8	)
			Economic Risk Capital		29.9			29.6			29.3			29.6			30.8			1			(3	)
		Goodwill / Intangibles			8.9			8.9			8.9			8.9			8.6			—			3
		Asset Capital Tax			4.0			3.9			3.8			3.9			3.8			3			5
			Capital Against Nonrisk Factors		12.9			12.8			12.7			12.8			12.4			1			4
	Diversification Effect				(5.0	)		(4.9	)		(5.3	)		(5.4	)		(5.7	)		(2	)		12
	Total Required Economic Capital				37.8			37.5			36.7			37.0			37.5			1			1
	Capital in Excess of Required Economic Capital			$	4.1		$	4.5		$	5.5		$	3.9		$	2.9			(9	)		41

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

Average Economic Capital: Represents the portion of average common stockholders’ equity allocated to the business segments. The total average economic capital of all business segments equals the total average common stockholders’ equity of the Firm.	Tangible Return on Economic Capital: Excludes the impact of goodwill on operating earnings and average common equity.
bp: Denotes basis points; 100 bp equals 1%.	Tangible Shareholder Value Added: Excludes the impact of goodwill on operating earnings and capital charges.
NA: Not applicable
NM: Not meaningful

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