JPMorgan Chase & Co. (JPM) 8-K Jpmorgan Chase Reports 2003 Fourth Quarter

Exhibit 99.2

PRESS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2003

TABLE OF CONTENTS

STATEMENT OF INCOME — REPORTED BASIS
CONSOLIDATED BALANCE SHEET
LINES OF BUSINESS FINANCIAL HIGHLIGHTS SUMMARY
STATEMENT OF INCOME — OPERATING BASIS
SEGMENT DETAIL
INVESTMENT BANK
	INVESTMENT BANK
TREASURY & SECURITIES SERVICES
	INVESTMENT MANAGEMENT & PRIVATE BANKING
FINANCIAL HIGHLIGHTS
INVESTMENT PORTFOLIO — PRIVATE AND PUBLIC SECURITIES
NONINTEREST REVENUE AND NONINTEREST EXPENSE DETAIL
CONDENSED AVERAGE BALANCE SHEET AND ANNUALIZED YIELDS
CREDIT-RELATED INFORMATION
	MARKET RISK — INVESTMENT BANK AVERAGE VAR
Glossary of Terms
Exhibit 12.1
Exhibit 12.2
Exhibit 99.1
Exhibit 99.2
Exhibit 99.3

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

	Page
JPMorgan Chase Consolidated
Statement of Income – Reported Basis	3
Consolidated Balance Sheet	4
Lines of Business Financial Highlights Summary	5
Statement of Income – Operating Basis	6
Reconciliation from Reported to Operating Basis	7
Segment Detail
Investment Bank	8
Business-Related Metrics	9
Treasury & Securities Services	10
Investment Management & Private Banking	11
JPMorgan Partners	12
Investment Portfolio – Private and Public Securities	13
Chase Financial Services	14
Business Financial Highlights	15
Business-Related Metrics	16
Supplemental Detail
Selected Noninterest Revenue and Noninterest Expense Detail	17
Condensed Average Balance Sheet and Annualized Yields	18
Credit-Related Information	19-23
Capital	24
Market Risk – Investment Bank Average Trading VAR	25
Glossary of Terms	26

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

Page 2

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

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
REVENUE
Investment Banking Fees	$	846		$	649		$	779		$	616		$	678			30	%		25	%	$	2,890		$	2,763			5	%
Trading Revenue		754			829			1,546			1,298			586			(9	)		29			4,427			2,675			65
Fees and Commissions		2,871			2,742			2,551			2,488			2,595			5			11			10,652			10,387			3
Private Equity Gains (Losses)		163			120			(29	)		(221	)		(68	)		36		NM				33			(746	)	NM
Securities Gains		29			164			768			485			747			(82	)		(96	)		1,446			1,563			(7	)
Mortgage Fees and Related Income (a)		140			8			311			433			(118	)	NM			NM				892			988			(10	)
Other Revenue		254			188			45			92			94			35			170			579			458			26
Total Noninterest Revenue		5,057			4,700			5,971			5,191			4,514			8			12			20,919			18,088			16
Interest Income		5,614			5,696			5,871			6,263			6,184			(1	)		(9	)		23,444			25,284			(7	)
Interest Expense		2,603			2,648			2,808			3,048			3,203			(2	)		(19	)		11,107			13,758			(19	)
Net Interest Income		3,011			3,048			3,063			3,215			2,981			(1	)		1			12,337			11,526			7
Revenue before Provision for Credit Losses		8,068			7,748			9,034			8,406			7,495			4			8			33,256			29,614			12
Provision for Credit Losses		139			223			435			743			921			(38	)		(85	)		1,540			4,331			(64	)
TOTAL NET REVENUE		7,929			7,525			8,599			7,663			6,574			5			21			31,716			25,283			25
EXPENSE
Compensation Expense		2,577			2,713			3,231			3,174			3,032			(5	)		(15	)		11,695			10,983			6
Occupancy Expense		482			391			543			496			425			23			13			1,912			1,606			19
Technology and Communications Expense		756			719			732			637			635			5			19			2,844			2,554			11
Other Expense		1,405			1,272			1,226			1,234			1,376			10			2			5,137			5,111			1
Surety Settlement and Litigation Reserve (b)		—			—			100			—			1,300		NM			NM				100			1,300			(92	)
Merger and Restructuring Costs		—			—			—			—			393		NM			NM				—			1,210		NM
TOTAL NONINTEREST EXPENSE		5,220			5,095			5,832			5,541			7,161			2			(27	)		21,688			22,764			(5	)
Income (Loss) before Income Tax Expense		2,709			2,430			2,767			2,122			(587	)		11		NM				10,028			2,519			298
Income Tax Expense (Benefit)		845			802			940			722			(200	)		5		NM				3,309			856			287
NET INCOME (LOSS)	$	1,864		$	1,628		$	1,827		$	1,400		$	(387	)		14		NM			$	6,719		$	1,663			304
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK	$	1,851		$	1,615		$	1,815		$	1,387		$	(399	)		15		NM			$	6,668		$	1,612			314
NET INCOME (LOSS) PER COMMON SHARE
Basic	$	0.92		$	0.80		$	0.90		$	0.69		$	(0.20	)		15		NM			$	3.32		$	0.81			310
Diluted		0.89			0.78			0.89			0.69			(0.20	)		14		NM				3.24			0.80			305
PERFORMANCE RATIOS (c)
Return on Average Assets		0.95	%		0.83	%		0.96	%		0.73	%	NM			12		bp	NM				0.87	%		0.23	%	64		bp
Return on Average Common Equity		17			15			17			13		NM				200		NM				16			4			1,200
FULL-TIME EQUIVALENT EMPLOYEES		93,453			92,940			92,256			93,878			94,335			1	%		(1	)%

(a)	Mortgage Fees and Related Income of $140 million in the fourth quarter of 2003 consists of operating noninterest revenue of $316 million and MSR hedging noninterest revenue of $(176) million. The operating component of Mortgage Fees and Related Income includes net Mortgage Servicing Fees and production-related noninterest revenue.
(b)	Included in the second quarter of 2003 was a $100 million addition to the Enron-related litigation reserve. In the fourth quarter of 2002, a $1,300 million (pre-tax) charge was recorded for the settlement of the Enron surety litigation and the establishment of a reserve for certain material litigation, proceedings and investigations.
(c)	Quarterly ratios are based on annualized amounts.

Page 3

J.P. MORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEET
(in millions)

																Dec 31, 2003
																Over (Under)
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Dec 31
	2003			2003			2003			2003			2002			2003			2002
ASSETS
Cash and Due from Banks	$	20,268		$	18,585		$	23,398		$	22,229		$	19,218			9	%		5	%
Deposits with Banks		10,175			10,601			10,393			6,896			8,942			(4	)		14
Federal Funds Sold and Securities Purchased under Resale Agreements		76,868			88,752			69,748			69,764			65,809			(13	)		17
Securities Borrowed		41,834			37,096			41,067			39,188			34,143			13			23
Trading Assets:
Debt and Equity Instruments		169,120			146,731			139,275			146,783			165,199			15			2
Derivative Receivables		83,751			83,787			93,602			86,649			83,102			—			1
Securities		60,244			65,152			82,549			85,178			84,463			(8	)		(29	)
Loans (Net of Allowance for Loan Losses)		214,995			231,448			222,307			212,256			211,014			(7	)		2
Private Equity Investments		7,250			7,797			7,901			8,170			8,228			(7	)		(12	)
Goodwill		8,511			8,134			8,132			8,122			8,096			5			5
Other Intangibles:
Mortgage Servicing Rights		4,781			4,007			2,967			3,235			3,230			19			48
Purchased Credit Card Relationships		1,014			1,078			1,141			1,205			1,269			(6	)		(20	)
All Other Intangibles		685			311			320			294			307			120			123
Other Assets		71,416			89,221			99,803			65,187			65,780			(20	)		9
TOTAL ASSETS (a)	$	770,912		$	792,700		$	802,603		$	755,156		$	758,800			(3	)		2
LIABILITIES
Deposits:
Noninterest-Bearing	$	79,465		$	81,865		$	88,096		$	77,822		$	82,029			(3	)		(3	)
Interest-Bearing		247,027			231,761			230,152			222,845			222,724			7			11
Total Deposits		326,492			313,626			318,248			300,667			304,753			4			7
Federal Funds Purchased and Securities Sold under Repurchase Agreements		113,466			131,959			155,330			160,221			169,483			(14	)		(33	)
Commercial Paper		14,284			14,790			12,382			14,039			16,591			(3	)		(14	)
Other Borrowed Funds		8,925			8,174			12,176			12,848			8,946			9			—
Trading Liabilities:
Debt and Equity Instruments		78,222			87,516			72,825			64,427			66,864			(11	)		17
Derivative Payables		71,226			68,285			72,831			64,804			66,227			4			8
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		45,066			54,333			64,072			46,776			38,440			(17	)		17
Beneficial Interests of Consolidated Variable Interest Entities		12,295			18,399			—			—			—			(33	)	NM
Long-Term Debt		48,014			43,945			43,371			42,851			39,751			9			21
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		6,768			6,716			1,108			—			—			1		NM
Guaranteed Preferred Beneficial Interests in Capital Debt Securities Issued by Consolidated Trusts		—			—			5,439			5,439			5,439		NM			NM
TOTAL LIABILITIES		724,758			747,743			757,782			712,072			716,494			(3	)		1
STOCKHOLDERS’ EQUITY
Preferred Stock		1,009			1,009			1,009			1,009			1,009			—			—
Common Stock		2,044			2,041			2,036			2,032			2,024			—			1
Capital Surplus		13,512			13,238			12,898			12,477			13,222			2			2
Retained Earnings		29,681			28,540			27,633			26,538			25,851			4			15
Accumulated Other Comprehensive Income		(30	)		187			1,293			1,113			1,227		NM			NM
Treasury Stock, at Cost		(62	)		(58	)		(48	)		(85	)		(1,027	)		(7	)		94
TOTAL STOCKHOLDERS’ EQUITY		46,154			44,957			44,821			43,084			42,306			3			9
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	770,912		$	792,700		$	802,603		$	755,156		$	758,800			(3	)		2

(a) Includes an incremental $10 billion and $15 billion at December 31, 2003 and September 30, 2003, respectively, related to variable interest entities that were consolidated during the third quarter of 2003 in accordance with FIN 46. Also includes approximately $2 billion at December 31, 2003 and $3 billion at September 30, 2003 related to variable interest entities consolidated prior to the third quarter of 2003 that continue to be consolidated in accordance with FIN 46.

Page 4

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

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
OPERATING REVENUE
Investment Bank	$	3,044		$	3,166		$	4,208		$	4,022		$	3,317			(4	)%		(8	)%	$	14,440		$	12,498			16	%
Treasury & Securities Services		1,074			1,007			980			931			939			7			14			3,992			3,892			3
Investment Management & Private Banking		822			737			678			641			652			12			26			2,878			2,839			1
JPMorgan Partners		105			71			(80	)		(286	)		(91	)		48		NM				(190	)		(976	)		81
Chase Financial Services		3,609			3,356			3,975			3,692			3,331			8			8			14,632			13,426			9
Support Units and Corporate		(124	)		(118	)		(247	)		(137	)		(223	)		(5	)		44			(626	)		(626	)		—
OPERATING REVENUE	$	8,530		$	8,219		$	9,514		$	8,863		$	7,925			4			8		$	35,126		$	31,053			13
EARNINGS
Investment Bank	$	860		$	880		$	1,041		$	904		$	341			(2	)		152		$	3,685		$	1,303			183
Treasury & Securities Services		147			143			114			116			128			3			15			520			621			(16	)
Investment Management & Private Banking		100			81			59			28			12			23		NM				268			261			3
JPMorgan Partners		22			5			(97	)		(223	)		(100	)		340		NM				(293	)		(808	)		64
Chase Financial Services		560			433			853			649			456			29			23			2,495			2,320			8
Support Units and Corporate (a)		175			86			(143	)		(74	)		(107	)		103		NM				44			(313	)	NM
OPERATING EARNINGS		1,864			1,628			1,827			1,400			730			14			155			6,719			3,384			99
Special Items (Net of Taxes):
Real Estate Charge		—			—			—			—			—		NM			NM				—			(65	)	NM
Surety Settlement and Litigation Reserve		—			—			—			—			(858	)	NM			NM				—			(858	)	NM
Merger and Restructuring Costs		—			—			—			—			(259	)	NM			NM				—			(798	)	NM
NET INCOME (LOSS)	$	1,864		$	1,628		$	1,827		$	1,400		$	(387	)		14		NM			$	6,719		$	1,663			304
AVERAGE ALLOCATED CAPITAL
Investment Bank	$	16,864		$	18,876		$	20,059		$	20,783		$	20,320			(11	)		(17	)	$	19,134		$	19,915			(4	)
Treasury & Securities Services		2,719			2,603			2,765			2,757			2,720			4			—			2,711			2,688			1
Investment Management & Private Banking		5,413			5,485			5,481			5,438			5,540			(1	)		(2	)		5,454			5,643			(3	)
JPMorgan Partners		5,541			5,721			5,916			5,985			6,102			(3	)		(9	)		5,789			6,293			(8	)
Chase Financial Services		8,955			8,925			8,647			8,465			8,510			—			5			8,750			8,612			2
Support Units and Corporate		4,685			1,521			(109	)		(1,570	)		(1,222	)		208		NM				1,150			(1,783	)	NM
TOTAL ALLOCATED CAPITAL	$	44,177		$	43,131		$	42,759		$	41,858		$	41,970			2			5		$	42,988		$	41,368			4
EARNINGS PER SHARE — DILUTED
OPERATING EARNINGS	$	0.89		$	0.78		$	0.89		$	0.69		$	0.36			14			147		$	3.24		$	1.66			95
Special Items (Net of Taxes):
Real Estate Charge		—			—			—			—			—		NM			NM				—			(0.03	)	NM
Surety Settlement and Litigation Reserve		—			—			—			—			(0.43	)	NM			NM				—			(0.43	)	NM
Merger and Restructuring Costs		—			—			—			—			(0.13	)	NM			NM				—			(0.40	)	NM
NET INCOME (LOSS)	$	0.89		$	0.78		$	0.89		$	0.69		$	(0.20	)		14		NM			$	3.24		$	0.80			305
OPERATING RETURN ON ALLOCATED CAPITAL
Investment Bank		20	%		18	%		21	%		18	%		7	%		200	bp		1,300	bp		19	%		6	%		1,300	bp
Treasury & Securities Services		21			22			16			17			19			(100	)		200			19			23			(400	)
Investment Management & Private Banking		7			6			4			2			1			100			600			5			5			—
Chase Financial Services		25			19			39			31			21			600			400			28			27			100
OPERATING RETURN ON COMMON EQUITY		17			15			17			13			7			200			1,000			16			8			800

Note: For a reconciliation from reported to operating basis, see page 7.

(a) Line of business results for the first three quarters of 2003 and all of 2002 were restated to reflect the allocation of certain revenues and expenses previously reported in Support Units and Corporate. The line of business results were restated by $(245) million for the first three quarters of 2003 and by $(166) million for the full year 2002. There was no impact on the Firm’s overall earnings.

Page 5

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

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
OPERATING REVENUE
Investment Banking Fees	$	846		$	649		$	779		$	616		$	678			30	%		25	%	$	2,890		$	2,763			5	%
Trading-Related Revenue (Includes Trading NII)		1,272			1,278			2,025			1,981			1,254			—			1			6,556			4,555			44
Fees and Commissions		2,687			2,569			2,429			2,319			2,365			5			14			10,004			9,689			3
Private Equity Gains (Losses)		163			120			(29	)		(221	)		(68	)		36			NM			33			(746	)		NM
Securities Gains		29			164			768			485			747			(82	)		(96	)		1,446			1,563			(7	)
Mortgage Fees and Related Income		140			8			311			433			(118	)		NM			NM			892			988			(10	)
Other Revenue		225			174			21			88			107			29			110			508			422			20
Net Interest Income (Excludes Trading NII)		3,168			3,257			3,210			3,162			2,960			(3	)		7			12,797			11,819			8
TOTAL OPERATING REVENUE		8,530			8,219			9,514			8,863			7,925			4			8			35,126			31,053			13
OPERATING EXPENSE
Compensation Expense (a)		2,577			2,713			3,231			3,174			3,032			(5	)		(15	)		11,695			10,983			6
Noncompensation Expense (a) (b)		2,643			2,382			2,601			2,367			2,436			11			8			9,993			9,173			9
TOTAL OPERATING EXPENSE		5,220			5,095			5,832			5,541			5,468			2			(5	)		21,688			20,156			8
Credit Costs		601			694			915			1,200			1,351			(13	)		(56	)		3,410			5,770			(41	)
Corporate Credit Allocation		—			—			—			—			—			NM			NM			—			—			NM
Operating Income before Income Tax Expense		2,709			2,430			2,767			2,122			1,106			11			145			10,028			5,127			96
Income Tax Expense		845			802			940			722			376			5			125			3,309			1,743			90
OPERATING EARNINGS	$	1,864		$	1,628		$	1,827		$	1,400		$	730			14			155		$	6,719		$	3,384			99
OPERATING BASIS
Diluted Earnings per Share	$	0.89		$	0.78		$	0.89		$	0.69		$	0.36			14			147		$	3.24		$	1.66			95
Shareholder Value Added (c)		514			311			536			148			(551	)		65			NM			1,509			(1,631	)		NM
Return on Average Managed Assets (d)		0.91	%		0.79	%		0.92	%		0.70	%		0.37	%	12		bp		54	bp		0.83	%		0.45	%		38	bp
Return on Average Common Equity (d)		17			15			17			13			7			200			1,000			16			8			800
Common Dividend Payout Ratio		38			44			40			50			96			(600	)		(5,800	)		43			83			(4,000	)
Effective Income Tax Rate		31			33			34			34			34			(200	)		(300	)		33			34			(100	)
Compensation Expense as a % of Operating Revenue		30			33			34			36			38			(300	)		(800	)		33			35			(200	)
Noncompensation Expense as a % of Operating Revenue		31			29			27			27			31			200			—			28			30			(200	)
Overhead Ratio		61			62			61			63			69			(100	)		(800	)		62			65			(300	)
Shareholder Value Added: (c)
Net Income (Loss)	$	1,864		$	1,628		$	1,827		$	1,400		$	(387	)		14	%		NM		$	6,719		$	1,663			304	%
Special Items (Net of Taxes):
Real Estate Charge		—			—			—			—			—			NM			NM			—			65			NM
Surety Settlement and Litigation Reserve		—			—			—			—			858			NM			NM			—			858			NM
Merger and Restructuring Costs		—			—			—			—			259			NM			NM			—			798			NM
Operating Earnings		1,864			1,628			1,827			1,400			730			14			155	%		6,719			3,384			99
Less: Preferred Dividends		13			13			12			13			12			—			8			51			51			—
Adjusted Operating Earnings		1,851			1,615			1,815			1,387			718			15			158			6,668			3,333			100
Less: Cost of Capital (e)		1,337			1,304			1,279			1,239			1,269			3			5			5,159			4,964			4
Total Shareholder Value Added	$	514		$	311		$	536		$	148		$	(551	)		65			NM		$	1,509		$	(1,631	)		NM
Return on Average Managed Assets:
Operating Earnings	$	1,864		$	1,628		$	1,827		$	1,400		$	730			14			155		$	6,719		$	3,384			99
Average Managed Assets
Average Assets	$	778,519		$	782,426		$	764,655		$	778,238		$	755,166			—			3		$	775,978		$	733,357			6
Average Credit Card Securitizations		33,445			32,497			31,665			31,834			30,556			3			9			32,365			26,519			22
Average Managed Assets	$	811,964		$	814,923		$	796,320		$	810,072		$	785,722			—			3		$	808,343		$	759,876			6

(a)	Includes severance and other related costs associated with expense containment programs implemented in 2002.
(b)	Includes Occupancy Expense, Technology and Communications Expense, Other Expense and, in the second quarter of 2003, Surety Settlement and Litigation Reserve.
(c)	The Firm uses the shareholder value added (“SVA”) framework to measure performance of its business segments. To derive SVA, a non-GAAP financial measure, the Firm applies a cost of capital to each business segment. The capital elements and resultant capital charges provide the businesses with the financial framework to evaluate the trade-off between the use of capital by each business unit versus its return to shareholders. The table above provides a reconciliation of net income on a consolidated basis to the Firm’s SVA.
(d)	Quarterly ratios are based on annualized amounts.
(e)	A 12% (after-tax) cost of capital, based on average economic capital, is used by the Firm. To derive shareholder value added for the business segments, a 12% (after-tax) cost of capital is applied for each business segment, except for JPMorgan Partners, which is charged a 15% (after-tax) cost of capital.

Page 6

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

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
REVENUE
TRADING REVENUE
Reported	$	754		$	829		$	1,546		$	1,298		$	586			(9	)%		29	%	$	4,427		$	2,675			65	%
Trading-Related NII		518			449			479			683			668			15			(22	)		2,129			1,880			13
Operating	$	1,272		$	1,278		$	2,025		$	1,981		$	1,254			—			1		$	6,556		$	4,555			44
CREDIT CARD FEES (a)
Reported	$	825		$	756		$	698		$	692		$	807			9			2		$	2,971		$	2,869			4
Credit Card Securitizations		(184	)		(173	)		(122	)		(169	)		(230	)		(6	)		20			(648	)		(698	)		7
Operating	$	641		$	583		$	576		$	523		$	577			10			11		$	2,323		$	2,171			7
OTHER REVENUE
Reported	$	254		$	188		$	45		$	92		$	94			35			170		$	579		$	458			26
Credit Card Securitizations		(29	)		(14	)		(24	)		(4	)		13			(107	)		NM			(71	)		(36	)		(97	)
Operating	$	225		$	174		$	21		$	88		$	107			29			110		$	508		$	422			20
NET INTEREST INCOME
Reported	$	3,011		$	3,048		$	3,063		$	3,215		$	2,981			(1	)		1		$	12,337		$	11,526			7
Credit Card Securitizations		675			658			626			630			647			3			4			2,589			2,173			19
Trading-Related NII		(518	)		(449	)		(479	)		(683	)		(668	)		(15	)		22			(2,129	)		(1,880	)		(13	)
Operating	$	3,168		$	3,257		$	3,210		$	3,162		$	2,960			(3	)		7		$	12,797		$	11,819			8
TOTAL REVENUE
Reported	$	8,068		$	7,748		$	9,034		$	8,406		$	7,495			4			8		$	33,256		$	29,614			12
Credit Card Securitizations		462			471			480			457			430			(2	)		7			1,870			1,439			30
Total Operating Revenue	$	8,530		$	8,219		$	9,514		$	8,863		$	7,925			4			8		$	35,126		$	31,053			13
NONINTEREST EXPENSE
Reported	$	5,220		$	5,095		$	5,832		$	5,541		$	7,161			2			(27	)	$	21,688		$	22,764			(5	)
Real Estate Reserves		—			—			—			—			—		NM			NM				—			(98	)	NM
Surety Settlement and Litigation Reserve		—			—			—			—			(1,300	)	NM			NM				—			(1,300	)	NM
Merger and Restructuring Costs		—			—			—			—			(393	)	NM			NM				—			(1,210	)	NM
Total Operating Expense	$	5,220		$	5,095		$	5,832		$	5,541		$	5,468			2			(5	)	$	21,688		$	20,156			8
CREDIT COSTS
Provision for Credit Losses — Reported	$	139		$	223		$	435		$	743		$	921			(38	)		(85	)	$	1,540		$	4,331			(64	)
Credit Card Securitizations		462			471			480			457			430			(2	)		7			1,870			1,439			30
Credit Costs — Operating	$	601		$	694		$	915		$	1,200		$	1,351			(13	)		(56	)	$	3,410		$	5,770			(41	)

(a) Included in Fees and Commissions.

Page 7

SEGMENT DETAIL

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

																4QTR 2003														2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)							FULL YEAR							Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002				2003				2002			2002
OPERATING INCOME STATEMENT
REVENUE:
Trading Revenue (Includes Trading NII):
Fixed Income and Other	$	1,110		$	1,160		$	1,868		$	1,732		$	1,299			(4	)%		(15	)%		$	5,870			$	4,468			31	%
Equities		94			95		��	160			199			(31	)		(1	)	NM					548				11		NM
		1,204			1,255			2,028			1,931			1,268			(4	)		(5	)			6,418				4,479			43
Investment Banking Fees		834			636			765			620			650			31			28				2,855				2,696			6
Net Interest Income		463			539			586			689			635			(14	)		(27	)			2,277				2,642			(14	)
Fees and Commissions		437			426			403			380			370			3			18				1,646				1,619			2
Securities Gains		13			225			445			382			376			(94	)		(97	)			1,065				1,076			(1	)
All Other Revenue		93			85			(19	)		20			18			9			417				179				(14	)	NM
TOTAL OPERATING REVENUE		3,044			3,166			4,208			4,022			3,317			(4	)		(8	)			14,440				12,498			16
EXPENSE:
Compensation Expense		836			977			1,392			1,322			1,064			(14	)		(21	)			4,527				3,974			14
Noncompensation Expense		937			853			945			861			881			10			6				3,596				3,451			4
Operating Expense (Excl. Severance and Related Costs)		1,773			1,830			2,337			2,183			1,945			(3	)		(9	)			8,123				7,425			9
Severance and Related Costs		67			26			150			104			338		158				(80	)			347				587			(41	)
TOTAL OPERATING EXPENSE		1,840			1,856			2,487			2,287			2,283			(1	)		(19	)			8,470				8,012			6
Operating Margin		1,204			1,310			1,721			1,735			1,034			(8	)		16				5,970				4,486			33
Credit Costs		(241	)		(181	)		(5	)		246			489			(33	)	NM					(181	)			2,393		NM
Corporate Credit Allocation		(5	)		(10	)		(9	)		(12	)		(18	)		50			72				(36	)			(82	)		56
Operating Income Before Income Tax Expense		1,440			1,481			1,717			1,477			527			(3	)		173				6,115				2,011			204
Income Tax Expense		580			601			676			573			186			(3	)		212				2,430				708			243
OPERATING EARNINGS	$	860		$	880		$	1,041		$	904		$	341			(2	)		152			$	3,685			$	1,303			183
Average Allocated Capital	$	16,864		$	18,876		$	20,059		$	20,783		$	20,320			(11	)		(17	)		$	19,134			$	19,915			(4	)
Average Assets		510,874			512,030			495,113			525,708			515,668			—			(1	)			510,894				495,464			3
Shareholder Value Added		344			304			436			284			(279	)		13		NM					1,368				(1,109	)	NM
Return on Allocated Capital		20	%		18	%		21	%		18	%		7	%	200bp			1,300bp					19	%			6	%	1,300bp
Overhead Ratio		60			59			59			57			69			100			(900	)			59				64			(500	)
Overhead Ratio Excl. Severance and Related Costs		58			58			56			54			59			—			(100	)			56				59			(300	)
Compensation Expense as a % of Operating Revenue Excl. Severance and Related Costs		27			31			33			33			32			(400	)		(500	)			31				32			(100	)
FULL-TIME EQUIVALENT EMPLOYEES		14,772			14,491			14,464			14,619			15,145			2	%		(2	)%
Shareholder Value Added:
Operating Earnings	$	860		$	880		$	1,041		$	904		$	341			(2	)		152			$	3,685			$	1,303			183	%
Less: Preferred Dividends		6			5			5			6			5			20			20				22				22			—
Adjusted Operating Earnings		854			875			1,036			898			336			(2	)		154				3,663				1,281			186
Less: Cost of Capital		510			571			600			614			615			(11	)		(17	)			2,295				2,390			(4	)
Total Shareholder Value Added	$	344		$	304		$	436		$	284		$	(279	)		13		NM			$		1,368		$		(1,109	)	NM

Page 8

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

											4QTR 2003										2003
	4QTR		3QTR		2QTR		1QTR		4QTR		Over (Under)						FULL YEAR				Over (Under)
	2003		2003		2003		2003		2002		3Q 2003			4Q 2002			2003		2002		2002
BUSINESS REVENUE:
INVESTMENT BANKING FEES
Advisory	$	157	$	161	$	162	$	160	$	216		(2	)%		(27	)%	$	640	$	743		(14	)%
Equity Underwriting		254		173		163		107		88		47			189			697		470		48
Debt Underwriting		423		302		440		353		346		40			22			1,518		1,483		2
TOTAL		834		636		765		620		650		31			28			2,855		2,696		6
CAPITAL MARKETS & LENDING
Fixed Income		1,365		1,437		2,160		1,977		1,568		(5	)		(13	)		6,939		5,487		26
Global Treasury		142		365		620		599		571		(61	)		(75	)		1,726		1,815		(5	)
Credit Portfolio		362		389		275		395		339		(7	)		7			1,421		1,506		(6	)
Equities		341		339		388		431		189		1			80			1,499		994		51
TOTAL		2,210		2,530		3,443		3,402		2,667		(13	)		(17	)		11,585		9,802		18
TOTAL OPERATING REVENUE	$	3,044	$	3,166	$	4,208	$	4,022	$	3,317		(4	)		(8	)	$	14,440	$	12,498		16
MEMO:
CAPITAL MARKETS & LENDING TOTAL RETURN REVENUE (a)
Fixed Income	$	1,454	$	1,512	$	2,096	$	1,939	$	1,484		(4	)		(2	)	$	7,001	$	5,466		28
Global Treasury		221		491		437		535		467		(55	)		(53	)		1,684		1,513		11
Credit Portfolio		362		389		275		395		339		(7	)		7			1,421		1,506		(6	)
Equities		341		339		388		431		189		1			80			1,499		994		51
TOTAL	$	2,378	$	2,731	$	3,196	$	3,300	$	2,479		(13	)		(4	)	$	11,605	$	9,479		22
MARKET SHARE / RANKINGS: (b)
Global Syndicated Loans		17% / #1		14% / #1		23% / #1		14% / #1		20% / #1								18% / #1		23% / #1
Global Investment-Grade Bonds		8% / #2		8% / #2		8% / #2		8% / #2		8% / #2								8% / #2		9% / #2
Euro-Denominated Corporate International Bonds		5% / #8		7% / #3		5% / #7		4% / #10		7% / #4								5% / #6		6% / #4
Global Equity and Equity-Related		7% / #6		9% / #4		9% / #4		10% / #3		3% / #9								9% / #4		4% / #8
U.S. Equity and Equity-Related		10% / #4		7% / #6		12% / #4		16% / #1		5% / #7								11% / #4		6% / #6
Global Announced M&A		11% / #9		17% / #3		14% / #6		22% / #2		16% / #5								16% / #5		14% / #5

(a)	Total return revenue, a non-GAAP financial measure, represents operating revenue plus the change in unrealized gains or losses on investment securities and hedges (included in comprehensive income) and internally transfer-priced assets and liabilities.
(b)	Derived from Thomson Financial Securities Data, which reflects subsequent updates to prior-period information. Global announced M&A is based on rank value; all other rankings are based on proceeds, with full credit to each book manager/equal if joint.

Page 9

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

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions	$	676		$	655		$	632		$	599		$	581			3	%		16	%	$	2,562		$	2,412			6	%
Net Interest Income		307			311			307			294			311			(1	)		(1	)		1,219			1,224			—
All Other Revenue		91			41			41			38			47			122			94			211			256			(18	)
TOTAL OPERATING REVENUE		1,074			1,007			980			931			939			7			14			3,992			3,892			3
EXPENSE:
Compensation Expense		323			312			312			314			279			4			16			1,261			1,163			8
Noncompensation Expense		499			474			477			445			468			5			7			1,895			1,814			4
Operating Expense (Excl. Severance and Related Costs)		822			786			789			759			747			5			10			3,156			2,977			6
Severance and Related Costs		23			10			24			4			5			130			360			61			17			259
TOTAL OPERATING EXPENSE		845			796			813			763			752			6			12			3,217			2,994			7
Operating Margin		229			211			167			168			187			9			22			775			898			(14	)
Credit Costs		—			(1	)		1			1			2		NM			NM				1			1			—
Corporate Credit Allocation		5			10			9			12			18			(50	)		(72	)		36			82			(56	)
Operating Income Before Income Tax Expense		234			222			175			179			203			5			15			810			979			(17	)
Income Tax Expense		87			79			61			63			75			10			16			290			358			(19	)
OPERATING EARNINGS	$	147		$	143		$	114		$	116		$	128			3			15		$	520		$	621			(16	)
Average Allocated Capital	$	2,719		$	2,603		$	2,765		$	2,757		$	2,720			4			—		$	2,711		$	2,688			1
Average Assets		20,925			18,078			19,381			17,562			19,279			16			9			18,993			17,780			7
Shareholder Value Added		64			63			30			35			45			2			42			192			296			(35	)
Return on Allocated Capital		21	%		22	%		16	%		17	%		19	%		(100	)bp		200	bp		19	%		23	%		(400	)bp
Overhead Ratio		79			79			83			82			80			—			(100	)		81			77			400
Assets under Custody (in billions)	$	7,597		$	6,926		$	6,777		$	6,269		$	6,336			10	%		20	%
FULL-TIME EQUIVALENT EMPLOYEES		14,616			14,294			14,393			14,349			14,440			2			1
Shareholder Value Added:
Operating Earnings	$	147		$	143		$	114		$	116		$	128			3			15		$	520		$	621			(16	)%
Less: Preferred Dividends		1			1			—			1			—			—		NM				3			2			50
Adjusted Operating Earnings		146			142			114			115			128			3			14			517			619			(16	)
Less: Cost of Capital		82			79			84			80			83			4			(1	)		325			323			1
Total Shareholder Value Added	$	64		$	63		$	30		$	35		$	45			2			42		$	192		$	296			(35	)
OPERATING REVENUE BY BUSINESS:
Treasury Services	$	487		$	497		$	468		$	475		$	469			(2	)		4		$	1,927		$	1,818			6
Investor Services		381			370			360			338			334			3			14			1,449			1,513			(4	)
Institutional Trust Services		253			234			238			203			224			8			13			928			864			7
Other		(47	)		(94	)		(86	)		(85	)		(88	)		50			47			(312	)		(303	)		(3	)
Total Treasury & Securities Services	$	1,074		$	1,007		$	980		$	931		$	939			7			14		$	3,992		$	3,892			3

Page 10

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

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions	$	617		$	572		$	508		$	510		$	506			8	%		22	%	$	2,207		$	2,176			1	%
Net Interest Income		119			116			117			115			107			3			11			467			446			5
All Other Revenue		86			49			53			16			39			76			121			204			217			(6	)
TOTAL OPERATING REVENUE		822			737			678			641			652			12			26			2,878			2,839			1
EXPENSE:
Compensation Expense		305			313			290			285			311			(3	)		(2	)		1,193			1,125			6
Noncompensation Expense		330			307			299			299			314			7			5			1,235			1,221			1
TOTAL OPERATING EXPENSE		635			620			589			584			625			2			2			2,428			2,346			3
Operating Margin		187			117			89			57			27			60		NM				450			493			(9	)
Credit Costs		36			(7	)		—			6			13		NM				177			35			85			(59	)
Operating Income Before Income Tax Expense		151			124			89			51			14			22		NM				415			408			2
Income Tax Expense		51			43			30			23			2			19		NM				147			147			—
OPERATING EARNINGS	$	100		$	81		$	59		$	28		$	12			23		NM			$	268		$	261			3
Average Allocated Capital	$	5,413		$	5,485		$	5,481		$	5,438		$	5,540			(1	)		(2	)	$	5,454		$	5,643			(3	)
Average Goodwill Capital		4,095			4,097			4,096			4,101			4,115			—			—			4,097			4,116			—
Average Assets		34,032			33,198			33,929			33,582			33,522			3			2			33,685			35,729			(6	)
Shareholder Value Added		(66	)		(87	)		(107	)		(134	)		(157	)		24			58			(394	)		(423	)		7
Tangible Shareholder Value Added		62			40			18			(12	)		(30	)		55		NM				108			84			29
Return on Allocated Capital		7	%		6	%		4	%		2	%		1	%		100	bp		600	bp		5	%		5	%		—	bp
Return on Tangible Allocated Capital		31			23			17			8			4			800			2,700			20			18			200
Overhead Ratio		77			84			87			91			96			(700	)		(1,900	)		84			83			100
Pre-Tax Margin Ratio		18			17			13			8			2			100			1,600			14			14			—
FULL-TIME EQUIVALENT EMPLOYEES		7,756			7,716			7,884			7,510			7,827			1	%		(1	)%
Shareholder Value Added:
Operating Earnings	$	100		$	81		$	59		$	28		$	12			23		NM			$	268		$	261			3	%
Less: Preferred Dividends		2			2			1			2			1			—			100			7			7			—
Adjusted Operating Earnings		98			79			58			26			11			24		NM				261			254			3
Less: Cost of Capital		164			166			165			160			168			(1	)		(2	)		655			677			(3	)
Total Shareholder Value Added		(66	)		(87	)		(107	)		(134	)		(157	)		24			58			(394	)		(423	)		7
Add: Goodwill Exclusion Impact		128			127			125			122			127			1			1			502			507			(1	)
Tangible SVA (a)	$	62		$	40		$	18		$	(12	)	$	(30	)		55		NM			$	108		$	84			29
ASSETS UNDER SUPERVISION (in billions)
Client Segment:
Retail	$	101	(b)	$	88		$	84		$	72		$	80			15			26
Private Banking		138	(b)		132			130			125			130			5			6
Institutional		320	(b)		307			298			298			305			4			5
Assets under Management		559	(b)		527			512			495			515			6			9
Custody / Brokerage / Administration /Deposits		199	(b)		193			182			127			129			3			54
Assets under Supervision	$	758	(b)	$	720		$	694		$	622		$	644			5			18
Geographic Region:
Americas	$	360	(b)	$	348		$	348		$	350		$	362			3			(1	)
Europe and Asia		199	(b)		179			164			145			153			11			30
Assets under Management		559	(b)		527			512			495			515			6			9
Custody /Brokerage / Administration /Deposits		199	(b)		193			182			127			129			3			54
Assets under Supervision	$	758	(b)	$	720		$	694		$	622		$	644			5			18
Product Class:
Liquidity	$	160	(b)	$	149		$	140		$	144		$	144			7			11
Fixed Income		144	(b)		146			150			144			149			(1	)		(3	)
Equities and Other		255	(b)		232			222			207			222			10			15
Assets under Management		559	(b)		527			512			495			515			6			9
Custody /Brokerage / Administration /Deposits		199	(b)		193			182			127			129			3			54
Assets under Supervision	$	758	(b)	$	720		$	694		$	622		$	644			5			18

(a)	In addition to shareholder value added (“SVA”), the Firm uses tangible SVA, a non-GAAP financial measure, as an additional measure of the economics of the IMPB business segment. To derive tangible SVA, the impact of goodwill is excluded.
(b)	Estimated

Page 11

J.P. MORGAN CHASE & CO.
JPMORGAN PARTNERS
FINANCIAL HIGHLIGHTS
(in millions, except employees)

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
Direct Investments:
Realized Cash Gains (Net)	$	202		$	134		$	153		$	46		$	144			51	%		40	%	$	535		$	452			18	%
Write-downs / Write-offs		(52	)		1			(177	)		(176	)		(225	)	NM				77			(404	)		(825	)		51
Mark-to-Market Gains (Losses) (a)		48			26			147			(6	)		108			85			(56	)		215			(210	)	NM
Total Direct Investments		198			161			123			(136	)		27			23		NM				346			(583	)	NM
Private Third-Party Fund Investments (Net)		(39	)		(41	)		(145	)		(94	)		(80	)		5			51			(319	)		(150	)		(113	)
Total Private Equity Gains (Losses) (b)		159			120			(22	)		(230	)		(53	)		33		NM				27			(733	)	NM
Net Interest Income (Loss)		(64	)		(61	)		(67	)		(72	)		(66	)		(5	)		3			(264	)		(302	)		13
Fees and Other Revenue		10			12			9			16			28			(17	)		(64	)		47			59			(20	)
TOTAL OPERATING REVENUE		105			71			(80	)		(286	)		(91	)		48		NM				(190	)		(976	)		81
EXPENSE:
Compensation Expense		34			32			35			34			23			6			48			135			128			5
Noncompensation Expense		38			33			38			31			46			15			(17	)		140			171			(18	)
TOTAL OPERATING EXPENSE		72			65			73			65			69			11			4			275			299			(8	)
Operating Income (Loss) Before Income Tax Expense		33			6			(153	)		(351	)		(160	)		450		NM				(465	)		(1,275	)		64
Income Tax Expense (Benefit)		11			1			(56	)		(128	)		(60	)	NM			NM				(172	)		(467	)		63
OPERATING EARNINGS (LOSS)	$	22		$	5		$	(97	)	$	(223	)	$	(100	)		340		NM			$	(293)		$	(808	)		64
Average Allocated Capital	$	5,541		$	5,721		$	5,916		$	5,985		$	6,102			(3	)		(9	)	$	5,789		$	6,293			(8	)
Average Assets		8,199			8,653			9,008			9,428			9,629			(5	)		(15	)		8,818			9,677			(9	)
Shareholder Value Added		(189	)		(213	)		(320	)		(447	)		(333	)		11			43			(1,169	)		(1,759	)		34
FULL-TIME EQUIVALENT EMPLOYEES		316			325			329			342			357			(3	)		(11	)
Shareholder Value Added:
Operating Earnings	$	22		$	5		$	(97	)	$	(223	)	$	(100	)		340		NM			$	(293)		$	(808	)		64
Less: Preferred Dividends		2			2			1			2			2			—			—			7			7			—
Adjusted Operating Earnings		20			3			(98	)		(225	)		(102	)	NM			NM				(300	)		(815	)		63
Less: Cost of Capital		209			216			222			222			231			(3	)		(10	)		869			944			(8	)
Total Shareholder Value Added	$	(189	)	$	(213	)	$	(320	)	$	(447	)	$	(333	)		11			43		$	(1,169	)	$	(1,759	)		34

(a)	Includes mark-to-market gains (losses) and reversals of mark-to-market gains (losses) due to public securities sales.
(b)	Includes the impact of portfolio hedging activities.

Page 12

J.P. MORGAN CHASE & CO.
JPMORGAN PARTNERS
INVESTMENT PORTFOLIO — PRIVATE AND PUBLIC SECURITIES
(in millions, except ratios)

 

																Dec 31, 2003
																Over (Under)
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Dec 31
	2003			2003			2003			2003			2002			2003			2002
PORTFOLIO INFORMATION
Public Securities (51 companies) (a)(b)
Carrying Value	$	643		$	705		$	591		$	478		$	520			(9	)%		24	%
Cost		451			560			531			624			663			(19	)		(32	)
Private Direct Securities (822 companies) (b)
Carrying Value		5,508			5,686			5,766			5,912			5,865			(3	)		(6	)
Cost		6,960			7,188			7,351			7,439			7,316			(3	)		(5	)
Private Third-Party Fund Investments (252 funds) (b)(c)
Carrying Value		1,099			1,406			1,544			1,780			1,843			(22	)		(40	)
Cost		1,736			2,020			2,121			2,360			2,333			(14	)		(26	)
Total Investment Portfolio — Carrying Value	$	7,250		$	7,797		$	7,901		$	8,170		$	8,228			(7	)		(12	)
Total Investment Portfolio — Cost	$	9,147		$	9,768		$	10,003		$	10,423		$	10,312			(6	)		(11	)
% of Portfolio to the Firm’s Common Equity (d)		15	%		17	%		18	%		20	%		20	%	(200)		bp	(500)		bp
																					��

(a)	The quoted public value was $1.0 billion at December 31, 2003.
(b)	Represents the number of companies and funds at December 31, 2003.
(c)	Unfunded commitments to private third-party equity funds were $1.3 billion at December 31, 2003.
(d)	For purposes of calculating this ratio, the JPMP carrying value excludes the post-December 31, 2002 impact of public mark-to-market valuation adjustments, and the Firm’s common equity excludes SFAS 115 equity balances.

Page 13

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

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
Net Interest Income	$	2,447		$	2,471		$	2,402		$	2,300		$	2,111			(1	)%		16	%	$	9,620		$	8,225			17	%
Fees and Commissions		947			897			892			825			917			6			3			3,561			3,489			2
Securities Gains (Losses)		18			(62	)		323			103			375		NM				(95	)		382			493			(23	)
Mortgage Fees and Related Income (a)		140			8			311			433			(118	)	NM			NM				892			988			(10	)
All Other Revenue		57			42			47			31			46			36			24			177			231			(23	)
TOTAL OPERATING REVENUE		3,609			3,356			3,975			3,692			3,331			8			8			14,632			13,426			9
EXPENSE:
Compensation Expense		700			692			757			721			610			1			15			2,870			2,536			13
Noncompensation Expense		1,111			1,073			1,053			1,062			1,092			4			2			4,299			3,943			9
Operating Expense (Excl. Severance and Related Costs)		1,811			1,765			1,810			1,783			1,702			3			6			7,169			6,479			11
Severance and Related Costs		53			27			2			13			25			96			112			95			99			(4	)
TOTAL OPERATING EXPENSE		1,864			1,792			1,812			1,796			1,727			4			8			7,264			6,578			10
Operating Margin		1,745			1,564			2,163			1,896			1,604			12			9			7,368			6,848			8
Credit Costs		854			883			817			877			874			(3	)		(2	)		3,431			3,159			9
Operating Income Before Income Tax Expense		891			681			1,346			1,019			730			31			22			3,937			3,689			7
Income Tax Expense		331			248			493			370			274			33			21			1,442			1,369			5
OPERATING EARNINGS	$	560		$	433		$	853		$	649		$	456			29			23		$	2,495		$	2,320			8
Average Allocated Capital	$	8,955		$	8,925		$	8,647		$	8,465		$	8,510			—			5		$	8,750		$	8,612			2
Average Managed Loans		192,383			192,819			183,525			174,040			165,176			—			16			185,761			155,926			19
Average Managed Assets (b)		217,633			223,370			217,275			202,328			188,466			(3	)		15			215,216			179,635			20
Shareholder Value Added		286			160			592			396			197			79			45			1,434			1,276			12
Return on Allocated Capital		25	%		19	%		39	%		31	%		21	%	600		bp	400		bp		28	%		27	%	100		bp
Overhead Ratio		52			53			46			49			52			(100	)		—			50			49			100
FULL-TIME EQUIVALENT EMPLOYEES		46,155			46,231			45,268			44,312			43,543			—	%		6	%
Shareholder Value Added:
Operating Earnings	$	560		$	433		$	853		$	649		$	456			29			23		$	2,495		$	2,320			8	%
Less: Preferred Dividends		3			3			2			3			2			—			50			11			10			10
Adjusted Operating Earnings		557			430			851			646			454			30			23			2,484			2,310			8
Less: Cost of Capital		271			270			259			250			257			—			5			1,050			1,034			2
Total Shareholder Value Added	$	286		$	160		$	592		$	396		$	197			79			45		$	1,434		$	1,276			12

(a)	Mortgage Fees and Related Income of $140 million in the fourth quarter of 2003 consists of operating noninterest revenue of $316 million and MSR hedging noninterest revenue of $(176) million. The operating component of Mortgage Fees and Related Income includes net Mortgage Servicing Fees and production-related noninterest revenue.
(b)	Includes credit card receivables that have been securitized.

Page 14

J.P. MORGAN CHASE & CO.
CHASE FINANCIAL SERVICES
BUSINESS FINANCIAL HIGHLIGHTS
(in millions)

														4QTR 2003										2003
	4QTR			3QTR			2QTR		1QTR		4QTR			Over (Under)						FULL YEAR				Over (Under)
	2003			2003			2003		2003		2002			3Q 2003			4Q 2002			2003		2002		2002
CHASE FINANCIAL SERVICES’ BUSINESSES
CHASE HOME FINANCE:
Operating Revenue:
Operating Revenue (Excl. MSR Hedging Revenue) (a)	$	950		$	688		$	1,100	$	1,062	$	731			38	%		30	%	$	3,800	$	2,751		38	%
MSR Hedging Revenue (a)		(83	)		(6	)		233		86		(84	)	NM				1			230		177		30
Total	$	867		$	682		$	1,333	$	1,148	$	647			27			34		$	4,030	$	2,928		38
Operating Expense		484			445			400		382		394			9			23			1,711		1,341		28
Operating Earnings		238			118			562		423		143			102			66			1,341		908		48
CHASE CARDMEMBER SERVICES:
Operating Revenue	$	1,620		$	1,570		$	1,512	$	1,460	$	1,565			3			4		$	6,162	$	5,939		4
Operating Expense		561			557			544		540		608			1			(8	)		2,202		2,156		2
Operating Earnings		171			198			165		145		137			(14	)		25			679		662		3
CHASE AUTO FINANCE:
Operating Revenue	$	207		$	216		$	221	$	198	$	186			(4	)		11		$	842	$	683		23
Operating Expense		77			74			73		68		65			4			18			292		248		18
Operating Earnings		53			49			67		36		35			8			51			205		166		23
CHASE REGIONAL BANKING:
Operating Revenue	$	653		$	636		$	656	$	631	$	693			3			(6	)	$	2,576	$	2,828		(9	)
Operating Expense		645			580			583		575		567			11			14			2,383		2,229		7
Operating Earnings		(5	)		12			35		28		77		NM			NM				70		354		(80	)
CHASE MIDDLE MARKET:
Operating Revenue	$	358		$	362		$	351	$	359	$	355			(1	)		1		$	1,430	$	1,451		(1	)
Operating Expense		209			228			221		213		225			(8	)		(7	)		871		841		4
Operating Earnings		93			66			78		87		54			41			72			324		315		3

(a) MSR represents Mortgage Servicing Rights.

Page 15

J.P. MORGAN CHASE & CO.
CHASE FINANCIAL SERVICES
BUSINESS-RELATED METRICS
(in billions, except ratios and where otherwise noted)

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
Chase Home Finance
Origination Volume by Channel:
Retail, Wholesale and Correspondent	$	37		$	68		$	55		$	41		$	40			(46	)%		(8	)%	$	201		$	113			78	%
Correspondent Negotiated Transactions		14			25			23			21			21			(44	)		(33	)		83			43			93
Origination Volume by Product:
First Mortgage		44			86			72			58			57			(49	)		(23	)		260			142			83
Home Equity		7			7			6			4			4			—			75			24			14			71
Loans Serviced (EOP)		470			455			437			432			426			3			10			470			426			10
End-of-Period Outstandings		73.7			85.8			74.5			67.3			63.6			(14	)		16			73.7			63.6			16
Total Average Loans Owned		79.4			80.6			71.2			64.4			59.7			(1	)		33			74.1			56.2			32
Number of Customers (in millions)		4.1			4.0			3.9			4.0			4.0			2			2			4.1			4.0			2
MSR Carrying Value		4.8			4.0			3.0			3.2			3.2			20			50			4.8			3.2			50
30+ Day Delinquency Rate		1.81	%		2.05	%		2.23	%		2.31	%		3.07	%	(24		) bp	(126		) bp		1.81	%		3.07	%	(126		) bp
Net Charge-Off Ratio		0.19			0.15			0.18			0.20			0.27			4			(8	)		0.18			0.25			(7	)
Overhead Ratio		56			65			30			33			61			(900	)		(500	)		42			46			(400	)
Chase Cardmember Services — Managed Basis
End-of-Period Outstandings	$	52.3		$	50.9		$	51.0		$	50.6		$	51.1			3	%		2	%	$	52.3		$	51.1			2	%
Average Outstandings		51.1			50.9			50.7			50.9			50.7			—			1			50.9			49.1			4
Total Volume (a)		23.9			22.9			22.2			20.7			21.2			4			13			89.7			84.0			7
New Accounts (in millions)		1.0			1.1			1.0			1.1			1.0			(9	)		—			4.2			3.7			14
Active Accounts (in millions)		16.5			16.3			16.4			16.5			16.5			1			—			16.5			16.5			—
Total Accounts (in millions)		30.8			30.6			30.3			29.8			29.2			1			5			30.8			29.2			5
30+ Day Delinquency Rate		4.68	%		4.62	%		4.40	%		4.59	%		4.67	%		6	bp		1	bp		4.68	%		4.67	%		1	bp
Net Charge-Off Ratio		5.76			5.83			6.02			5.95			5.71		(7		)	5				5.89			5.89		—
Overhead Ratio		35			35			36			37			39			—			(400	)		36			36			—
Chase Auto Finance
Loan and Lease Receivables	$	43.2		$	42.8		$	41.7		$	41.1		$	37.4			1	%		16	%	$	43.2		$	37.4			16	%
Average Loan and Lease Receivables		43.5			42.1			41.7			39.6			35.8			3			22			41.7			31.7			32
Automobile Origination Volume (b)		5.5			7.0			7.9			7.4			6.8			(21	)		(19	)		27.8			25.3			10
Automobile Market Share (Year-to-date)		6.3	%(d)		6.6	%		6.8	%		6.7	%		5.7	%	(30		) bp	60		bp		6.3	%(d)		5.7	%	60		bp
30+ Day Delinquency Rate		1.46			1.16			1.14			1.27			1.54			30			(8	)		1.46			1.54			(8	)
Net Charge-Off Ratio		0.39			0.41			0.37			0.48			0.53			(2	)		(14	)		0.41			0.51			(10	)
Overhead Ratio		37			34			33			34			35			300			200			35			36			(100	)
Chase Regional Banking
Total Average Deposits	$	77.1		$	76.0		$	74.5		$	72.6		$	70.1			1	%		10	%	$	75.1		$	69.8			8	%
Total Client Assets (c)		111.1	(d)		109.5			108.1			105.3			102.6			1			8			108.7			103.6			5
Number of Branches		529			528			527			527			528			—			—			529			528			—
Number of ATMs		1,730			1,740			1,735			1,870			1,876			(1	)		(8	)		1,730			1,876			(8	)
Overhead Ratio		99	%		91	%		89	%		91	%		82	%	800		bp	1,700		bp		93	%		79	%	1,400		bp
Chase Middle Market
Total Average Loans	$	13.5		$	14.3		$	14.3		$	14.3		$	14.1			(6	)%		(4	)%	$	14.1		$	13.7			3	%
Total Average Deposits		28.7			28.9			26.9			28.0			25.8			(1	)		11			28.2			24.1			17
Nonperforming Average Loans as a % of Total Average Loans		1.00	%		1.12	%		1.24	%		1.41	%		1.51	%	(12		) bp	(51		) bp		1.19	%		1.89	%	(70		) bp
Net Charge-Off Ratio		0.16			0.61			0.40			0.75			1.22			(45	)		(106	)		0.49			0.78			(29	)
Overhead Ratio		58			63			63			59			63			(500	)		(500	)		61			58			300

(a)	Sum of total customer purchases, cash advances and balance transfers.
(b)	Excludes amounts related to Chase Education Finance.
(c)	Deposits, money market funds, and/or investment assets (including annuities).
(d)	Estimated

Page 16

SUPPLEMENTAL DETAIL

J.P. MORGAN CHASE & CO
SELECTED NONINTEREST REVENUE AND NONINTEREST EXPENSE DETAIL ON A REPORTED BASIS
(in millions)

												4QTR 2003										2003
	4QTR		3QTR		2QTR		1QTR		4QTR			Over (Under)						FULL YEAR				Over (Under)
	2003		2003		2003		2003		2002			3Q 2003			4Q 2002			2003		2002		2002
NONINTEREST REVENUE
Investment Banking Fees:
Underwriting and Other:
Equity	$	255	$	173	$	163	$	108	$	84			47	%		204	%	$	699	$	464		51	%
Debt		430		317		460		342		361			36			19			1,549		1,543		—
Total Underwriting and Other		685		490		623		450		445			40			54			2,248		2,007		12
Advisory		161		159		156		166		233			1			(31	)		642		756		(15	)
Total	$	846	$	649	$	779	$	616	$	678			30			25		$	2,890	$	2,763		5
Trading-Related Revenue: (a)
Equities	$	141	$	108	$	151	$	194	$	(20	)		31		NM			$	594	$	112		430
Fixed Income and Other		1,131		1,170		1,874		1,787		1,274			(3	)		(11	)		5,962		4,443		34
Total	$	1,272	$	1,278	$	2,025	$	1,981	$	1,254			—			1		$	6,556	$	4,555		44
Fees and Commissions:
Investment Management and Service Fees	$	618	$	573	$	508	$	545	$	534			8			16		$	2,244	$	2,322		(3	)
Custody and Institutional Trust Service Fees		431		404		408		358		352			7			22			1,601		1,529		5
Credit Card Fees		825		756		698		692		807			9			2			2,971		2,869		4
Brokerage Commissions		316		310		296		259		250			2			26			1,181		1,139		4
Lending-Related Service Fees		172		157		127		124		160			10			8			580		546		6
Deposit Service Fees		279		298		284		285		277			(6	)		1			1,146		1,128		2
Other Fees		230		244		230		225		215			(6	)		7			929		854		9
Total	$	2,871	$	2,742	$	2,551	$	2,488	$	2,595			5			11		$	10,652	$	10,387		3
NONINTEREST EXPENSE
Other Expense:
Professional Services	$	394	$	325	$	324	$	325	$	378			21			4		$	1,368	$	1,303		5
Outside Services		311		294		310		272		249			6			25			1,187		994		19
Marketing		200		179		167		164		220			12			(9	)		710		689		3
Travel and Entertainment		128		103		102		89		96			24			33			422		411		3
Amortization of Intangibles		74		73		73		74		82			1			(10	)		294		323		(9	)
All Other		298		298		250		310		351			—			(15	)		1,156		1,391		(17	)
Total	$	1,405	$	1,272	$	1,226	$	1,234	$	1,376			10			2		$	5,137	$	5,111		1

(a) Includes trading-related net interest income. See reconciliation from reported to operating basis on page 7.

Page 17

J.P. MORGAN CHASE & CO. CONDENSED AVERAGE BALANCE SHEET AND ANNUALIZED YIELDS
(in millions, except rates)

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	11,724		$	10,163		$	7,061		$	9,998		$	13,074			15	%		(10	)%	$	9,742		$	11,945			(18	)%
Federal Funds Sold and Securities Purchased under Resale Agreements		94,773			89,865			76,690			87,657			88,974			5			7			87,273			84,194			4
Securities Borrowed		40,371			40,019			42,160			38,654			40,673			1			(1	)		40,305			42,703			(6	)
Trading Assets		156,958			138,829			138,503			161,753			151,994			13			3			148,970			137,272			9
Securities		63,903			75,032			86,830			84,254			77,126			(15	)		(17	)		77,442			67,065			15
Loans		230,795			237,508			219,950			215,882			211,489			(3	)		9			226,106			211,432			7
Total Interest-Earning Assets		598,524			591,416			571,194			598,198			583,330			1			3			589,838			554,611			6
Noninterest-Earning Assets		179,995			191,010			193,461			180,040			171,836			(6	)		5			186,140			178,746			4
TOTAL ASSETS	$	778,519		$	782,426		$	764,655		$	778,238		$	755,166			—			3		$	775,978		$	733,357			6
LIABILITIES
Interest-Bearing Deposits	$	237,636		$	221,539		$	225,950		$	225,389		$	215,061			7			10		$	227,645		$	217,417			5
Federal Funds Purchased and Securities Sold under Repurchase Agreements		141,089			148,132			164,386			191,163			182,526			(5	)		(23	)		161,020			168,428			(4	)
Commercial Paper		13,293			13,088			12,929			14,254			13,469			2			(1	)		13,387			16,134			(17	)
Other Borrowings (a)		74,551			72,191			63,524			68,453			65,591			3			14			69,703			69,393			—
Beneficial Interests of Consolidated Variable Interest Entities		17,585			19,791			—			—			—			(11	)	NM				9,421			—		NM
Long-Term Debt		52,408			48,685			49,219			46,001			44,621			8			17			49,095			43,927			12
Total Interest-Bearing Liabilities		536,562			523,426			516,008			545,260			521,268			3			3			530,271			515,299			3
Noninterest-Bearing Liabilities		196,771			214,860			204,879			190,111			190,919			(8	)		3			201,710			175,594			15
TOTAL LIABILITIES		733,333			738,286			720,887			735,371			712,187			(1	)		3			731,981			690,893			6
PREFERRED STOCK OF SUBSIDIARY (b)		—			—			—			—			—		NM			NM				—			87		NM
Preferred Stock		1,009			1,009			1,009			1,009			1,009			—			—			1,009			1,009			—
Common Stockholders’ Equity		44,177			43,131			42,759			41,858			41,970			2			5			42,988			41,368			4
TOTAL STOCKHOLDERS’ EQUITY		45,186			44,140			43,768			42,867			42,979			2			5			43,997			42,377			4
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY AND STOCKHOLDERS’ EQUITY	$	778,519		$	782,426		$	764,655		$	778,238		$	755,166			—			3		$	775,978		$	733,357			6
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		2.88	%		0.93	%		2.39	%		2.58	%		1.48	%		195	bp		140	bp		2.20	%		2.54	%		(34	)bp
Federal Funds Sold and Securities Purchased under Resale Agreements		1.36			1.52			1.85			2.19			2.33			(16	)		(97	)		1.72			2.47			(75	)
Securities Borrowed		0.74			0.71			0.75			1.02			1.42			3			(68	)		0.80			1.59			(79	)
Trading Assets		4.19			4.27			4.65			4.64			4.64			(8	)		(45	)		4.44			4.96			(52	)
Securities		4.49			4.69			4.62			4.64			4.58			(20	)		(9	)		4.62			5.10			(48	)
Loans		4.74			4.83			5.12			5.32			5.29			(9	)		(55	)		4.99			5.71			(72	)
Total Interest-Earning Assets		3.73			3.83			4.13			4.26			4.22			(10	)		(49	)		3.98			4.57			(59	)
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		1.33			1.41			1.69			1.92			2.17			(8	)		(84	)		1.58			2.42			(84	)
Federal Funds Purchased and Securities Sold under Repurchase Agreements		1.16			1.29			1.41			1.54			1.71			(13	)		(55	)		1.37			1.97			(60	)
Commercial Paper		0.98			1.00			1.22			1.30			1.53			(2	)		(55	)		1.13			1.74			(61	)
Other Borrowings		4.91			5.12			5.39			4.99			4.69			(21	)		22			5.09			4.96			13
Beneficial Interests of Consolidated Variable Interest Entities		1.36			0.92			—			—			—			44			136			1.13			—			113
Long-Term Debt		2.86			3.01			3.14			3.23			3.68			(15	)		(82	)		3.05			3.34			(29	)
Total Interest-Bearing Liabilities		1.92			2.01			2.18			2.27			2.44			(9	)		(52	)		2.09			2.67			(58	)
INTEREST RATE SPREAD		1.81	%		1.82	%		1.95	%		1.99	%		1.78	%		(1	)		3			1.89	%		1.90	%		(1	)
NET INTEREST MARGIN		2.00	%		2.05	%		2.16	%		2.19	%		2.04	%		(5	)		(4	)		2.10	%		2.09	%		1
NET INTEREST MARGIN ADJUSTED FOR SECURITIZATIONS		2.32	%		2.36	%		2.47	%		2.49	%		2.36	%		(4	)		(4	)		2.41	%		2.37	%		4

(a)	Includes securities sold but not yet purchased.
(b)	On February 28, 2002, all outstanding shares were redeemed.

Page 18

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

													December 31, 2003
													Over (Under)
	Dec 31			Sep 30			Jun 30		Mar 31		Dec 31		Sep 30			Dec 31
	2003			2003			2003		2003		2002		2003			2002
CREDIT EXPOSURE
COMMERCIAL
Loans — U.S. (a)	$	52,024		$	58,082		$	55,693	$	54,156	$	56,667		(10	)%		(8	)%
Loans — Non-U.S		31,073			30,326			35,363		34,290		34,881		2			(11	)
Total Commercial Loans		83,097			88,408			91,056		88,446		91,548		(6	)		(9	)
Derivative Receivables		83,751			83,787			93,602		86,649		83,102		—			1
Other Receivables		108			108			108		108		108		—			—
TOTAL COMMERCIAL CREDIT-RELATED ASSETS		166,956			172,303			184,766		175,203		174,758		(3	)		(4	)
Lending-Related Commitments (b)		215,758	(d)		209,042	(e)		229,119		230,698		238,120		3			(9	)
TOTAL COMMERCIAL CREDIT EXPOSURE		382,714			381,345			413,885		405,901		412,878		—			(7	)
CONSUMER
1-4 Family Residential Mortgages — First Liens		54,460			68,873			57,593		51,711		49,357		(21	)		10
Home Equity		19,252			16,981			17,327		15,363		14,643		13			31
1-4 Family Residential Mortgages		73,712			85,854			74,920		67,074		64,000		(14	)		15
Credit Card — Reported (c)		16,793			16,015			16,578		17,509		19,677		5			(15	)
Credit Card Securitizations (c)		34,856			34,315			33,789		32,377		30,722		2			13
Credit Card — Managed		51,649			50,330			50,367		49,886		50,399		3			2
Automobile Financings		38,695			38,867			38,151		36,865		33,615		—			15
Other Consumer		7,221			7,057			6,689		7,577		7,524		2			(4	)
TOTAL MANAGED CONSUMER LOANS		171,277			182,108			170,127		161,402		155,538		(6	)		10
TOTAL CREDIT PORTFOLIO	$	553,991		$	563,453		$	584,012	$	567,303	$	568,416		(2	)		(3	)

(a)	Includes $5.8 billion and $10.9 billion at December 31, 2003 and September 30, 2003, respectively, of exposure related to consolidated variable interest entities in accordance with FIN 46, of which $4.8 billion and $10.4 billion, respectively, is associated with multi-seller asset-backed commercial paper conduits.
(b)	Includes unused advised lines of credit of $19 billion at December 31, 2003.
(c)	At December 31, 2003, credit card securitizations includes $1.1 billion of accrued interest and fees on securitized credit card loans that were classified in Other Assets, consistent with the FASB Staff Position, Accounting for Accrued Interest Receivable Related to Securitized and Sold Receivables under SFAS 140. Prior to March 31, 2003, these balances were classified in Credit Card Loans.
(d)	Total commitments related to asset-backed commercial paper conduits consolidated in accordance with FIN 46 are $9.8 billion at December 31, 2003, of which $3.5 billion is included in Lending-Related Commitments. The remaining $6.3 billion of commitments to these variable interest entities were excluded as their underlying assets are reported as follows: $4.8 billion in Loans-U.S., and $1.5 billion in Available-for-Sale Securities.
(e)	Total commitments related to asset-backed commercial paper conduits consolidated in accordance with FIN 46 are $18.7 billion at September 30, 2003, of which $6.8 billion is included in Lending-Related Commitments. The remaining $11.9 billion of commitments to these variable interest entities were excluded as their underlying assets are reported as follows: $10.4 billion in Loans-U.S., and $1.5 billion in Available-for-Sale Securities.

Page 19

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

																					Dec 31, 2003
																					Over (Under)
	Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Sep 30			Dec 31
	2003				2003				2003				2003				2002				2003			2002
COMMERCIAL CREDIT EXPOSURE
Credit Exposure (a)	$	382,714	100	%	$	381,345	100	%	$	413,885	100	%	$	405,901	100	%	$	412,878	100	%		—	%		(7	)%
Risk Profile of Credit Exposure:
Investment-Grade		316,075	83	%(c)		316,544	83	%(c)		345,331	83	%		332,602	82	%		331,319	80	%		—			(5	)
Noninvestment-Grade:
Noncriticized		57,782	15	%		53,457	14	%		55,711	14	%		58,731	14	%		64,981	16	%		8			(11	)
Criticized Performing		6,487	1	%		8,378	2	%		9,496	2	%		10,897	3	%		12,509	3	%		(23	)		(48	)
Criticized Nonperforming (b)		2,370	1	%		2,966	1	%		3,347	1	%		3,671	1	%		4,069	1	%		(20	)		(42	)

Note: The risk profile is based on JPMorgan Chase’s internal risk ratings, which generally correspond to the following ratings as defined by Standard & Poor’s / Moody’s:

Investment-Grade: AAA / Aaa to BBB- / Baa3
Noninvestment-Grade: BB+ / Ba1 to B- / B3
Criticized: CCC+ / Caa1 & below

(a)	Credit exposure is net of risk participations and does not reflect the benefit of credit derivative hedges or liquid collateral held against derivatives contracts.
(b)	Nonperforming assets exclude nonaccrual HFS loans; HFS loans are carried at the lower of cost or market and declines in value are recorded in Other Revenue.
(c)	Investment-Grade includes $5.8 billion and $10.9 billion at December 31, 2003 and September 30, 2003, respectively, of loan exposure related to consolidated variable interest entities in accordance with FIN 46.

Page 20

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

																Dec 31, 2003
																Over (Under)
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Dec 31
	2003			2003			2003			2003			2002			2003			2002
NONPERFORMING ASSETS AND RATIOS
COMMERCIAL
Loans — U.S.	$	1,085		$	1,360		$	1,810		$	2,029		$	2,059			(20)	%		(47)	%
Loans — Non-U.S.		924			1,238			1,153			1,257			1,613			(25	)		(43	)
Total Commercial Loans		2,009			2,598			2,963			3,286			3,672			(23	)		(45	)
Derivative Receivables		253			260			276			277			289			(3	)		(12	)
Other Receivables		108			108			108			108			108			—			—
TOTAL COMMERCIAL CREDIT EXPOSURE		2,370			2,966			3,347			3,671			4,069			(20	)		(42	)
CONSUMER
1-4 Family Residential Mortgages — First Liens		249			263			251			249			259			(5	)		(4	)
Home Equity		55			54			52			54			53			2			4
1-4 Family Residential Mortgages		304			317			303			303			312			(4	)		(3	)
Credit Card — Reported		11			13			13			14			15			(15	)		(27	)
Credit Card Securitizations		—			—			—			—			—		NM			NM
Credit Card — Managed		11			13			13			14			15			(15	)		(27	)
Automobile Financings		119			113			111			112			118			5			1
Other Consumer		66			70			66			66			76			(6	)		(13	)
TOTAL MANAGED CONSUMER LOANS		500			513			493			495			521			(3	)		(4	)
Assets Acquired in Loan Satisfactions		216			203			227			225			190			6			14
TOTAL CREDIT PORTFOLIO (a)	$	3,086		$	3,682		$	4,067		$	4,391		$	4,780			(16	)		(35	)
TOTAL NONPERFORMING ASSETS TO TOTAL ASSETS		0.40	%		0.46	%		0.51	%		0.58	%		0.63	%		(6	)bp		(23	)bp
PAST DUE 90 DAYS AND OVER AND ACCRUING
COMMERCIAL
Loans — U.S.	$	41		$	35		$	35		$	37		$	57			17	%		(28)	%
Loans — Non-U.S.		5			2			—			2			—			150		NM
Derivative Receivables		—			—			—			—			—		NM			NM
TOTAL COMMERCIAL CREDIT EXPOSURE		46			37			35			39			57			24			(19	)
CONSUMER
1-4 Family Residential Mortgages — First Liens		—			—			—			—			—		NM			NM
Home Equity		—			—			—			—			—		NM			NM
1-4 Family Residential Mortgages		—			—			—			—			—		NM			NM
Credit Card — Reported (b)		248			229			229			269			451			8			(45	)
Credit Card Securitizations (b)		879			814			792			808			630			8			40
Credit Card — Managed		1,127			1,043			1,021			1,077			1,081			8			4
Automobile Financings		—			—			—			—			—		NM			NM
Other Consumer		21			21			21			22			22			—			(5	)
TOTAL MANAGED CONSUMER LOANS		1,148			1,064			1,042			1,099			1,103			8			4
TOTAL CREDIT PORTFOLIO	$	1,194		$	1,101		$	1,077		$	1,138		$	1,160			8			3

(a)

Nonperforming assets exclude nonaccrual loans held for sale (“HFS”) of $97 million at December 31, 2003. HFS loans are carried at the lower of cost or market, and declines in value are recorded in Other Revenue.

(b)

At December 31, 2003, credit card securitizations includes $166 million of accrued interest and fees on securitized credit card loans past due 90 days and over and accruing that were classified in Other Assets, consistent with the FASB Staff Position, Accounting for Accrued Interest Receivable Related to Securitized and Sold Receivables under SFAS 140. Prior to March 31, 2003, these balances were classified in Credit Card Loans.

Page 21

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

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
NET CHARGE-OFFS
COMMERCIAL
Loans — U.S	$	1		$	194		$	185		$	118		$	226			(99)	%		(100)	%	$	498		$	921			(46)	%
Loans — Non-U.S		7			65			72			174			208			(89	)		(97	)		318			960			(67	)
Total Commercial Loans		8			259			257			292			434			(97	)		(98	)		816			1,881			(57	)
Lending-Related Commitments		—			—			—			—			212		NM			NM				—			212		NM
TOTAL COMMERCIAL CREDIT EXPOSURE		8			259			257			292			646			(97	)		(99	)		816			2,093			(61	)
CONSUMER
1-4 Family Residential Mortgages — First Liens		9			4			5			5			11			125			(18	)		23			49			(53	)
Home Equity		1			1			6			2			4			—			(75	)		10			7			43
1-4 Family Residential Mortgages		10			5			11			7			15			100			(33	)		33			56			(41	)
Credit Card — Reported		266			263			268			275			286			1			(7	)		1,072			1,389			(23	)
Credit Card Securitizations		462			471			480			457			430			(2	)		7			1,870			1,439			30
Credit Card — Managed		728			734			748			732			716			(1	)		2			2,942			2,828			4
Automobile Financings		43			43			39			46			47			—			(9	)		171			161			6
Other Consumer		47			44			39			50			54			7			(13	)		180			189			(5	)
TOTAL MANAGED CONSUMER LOANS		828			826			837			835			832			—			—			3,326			3,234			3
TOTAL CREDIT PORTFOLIO	$	836		$	1,085		$	1,094		$	1,127		$	1,478			(23	)		(43	)	$	4,142		$	5,327			(22	)
NET CHARGE-OFF RATES — ANNUALIZED
COMMERCIAL
Loans — U.S. (a)		0.01	%		1.21	%		1.40	%		0.86	%		1.61	%		(120	)bp		(160	)bp		0.87	%		1.52	%		(65	)bp
Loans — Non-U.S		0.09			0.84			0.88			2.07			2.30			(75	)		(221	)		0.99			2.63			(164	)
Total Commercial Loans (a)		0.04			1.09			1.20			1.32			1.88			(105	)		(184	)		0.91			1.93			(102	)
Lending-Related Commitments		—			—			—			—			0.35			—			(35	)		—			0.09			(9	)
TOTAL COMMERCIAL CREDIT EXPOSURE		0.01			0.33			0.33			0.37			0.78			(32	)		(77	)		0.26			0.62			(36	)
CONSUMER
1-4 Family Residential Mortgages — First Liens		0.06			0.02			0.04			0.04			0.09			4			(3	)		0.04			0.11			(7	)
Home Equity		0.02			0.02			0.15			0.05			0.11			—			(9	)		0.06			0.05			1
1-4 Family Residential Mortgages		0.05			0.02			0.06			0.04			0.10			3			(5	)		0.04			0.10			(6	)
Credit Card — Reported		6.66			6.26			6.22			6.17			5.90			40			76			6.32			6.42			(10	)
Credit Card Securitizations		5.31			5.57			5.90			5.82			5.58			(26	)		(27	)		5.64			5.43			21
Credit Card — Managed		5.74			5.80			6.01			5.95			5.70			(6	)		4			5.87			5.87			—
Automobile Financings		0.43			0.45			0.41			0.53			0.58			(2	)		(15	)		0.45			0.57			(12	)
Other Consumer		2.56			2.53			2.15			2.54			2.77			3			(21	)		2.45			2.41			4
TOTAL MANAGED CONSUMER LOANS		1.85			1.86			2.01			2.14			2.20			(1	)		(35	)		1.96			2.30			(34	)
TOTAL MANAGED LOANS		1.25			1.59			1.74			1.85			2.08			(34	)		(83	)		1.60			2.15			(55	)
TOTAL CREDIT PORTFOLIO		0.69			0.88			0.91			0.95			1.22			(19	)		(53	)		0.86			1.11			(25	)

(a) Reflects the impact of consolidated variable interest entities in accordance with FIN 46. Excluding the exposures related to the FIN 46 adoption, the net charge-off rate would have been unchanged for the fourth quarter of 2003, and 1.49% for Loans-U.S. and 1.24% for Total Commercial Loans for the third quarter of 2003.

Page 22

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

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
SUMMARY OF CHANGES IN THE ALLOWANCE
LOANS:
Beginning Balance	$	4,753		$	5,087		$	5,215		$	5,350		$	5,263			(7	)%		(10	)%	$	5,350		$	4,524			18	%
Net Charge-Offs		(374	)		(614	)		(614	)		(670	)		(836	)		39			55			(2,272	)		(3,676	)		38
Provision for Loan Losses		144			278			487			670			921			(48	)		(84	)		1,579			4,039			(61	)
Other		—			2			(1	)		(135	)		2		NM			NM				(134	)		463		NM
Ending Balance	$	4,523		$	4,753		$	5,087		$	5,215		$	5,350			(5	)		(15	)	$	4,523		$	5,350			(15	)
LENDING-RELATED COMMITMENTS:
Beginning Balance	$	329		$	384		$	436		$	363		$	573			(14	)		(43	)	$	363		$	282			29
Net Charge-Offs		—			—			—			—			(212	)	NM			NM				—			(212	)	NM
Provision for Lending-Related Commitments		(5	)		(55	)		(52	)		73			—			91		NM				(39	)		292		NM
Other		—			—			—			—			2		NM			NM				—			1		NM
Ending Balance	$	324		$	329		$	384		$	436		$	363			(2	)		(11	)	$	324		$	363			(11	)
ALLOWANCE COMPONENTS AND RATIOS
LOANS:
Commercial — Specific	$	917		$	1,096		$	1,371		$	1,528		$	1,603			(16	)		(43	)
Commercial — Expected		454			481			548			590			613			(6	)		(26	)
Total Commercial		1,371			1,577			1,919			2,118			2,216			(13	)		(38	)
Consumer Expected		2,257			2,234			2,226			2,255			2,360			1			(4	)
Total Specific and Expected		3,628			3,811			4,145			4,373			4,576			(5	)		(21	)
Residual Component		895			942			942			842			774			(5	)		16
Total Allowance for Loan Losses	$	4,523		$	4,753		$	5,087		$	5,215		$	5,350			(5	)		(15	)
LENDING-RELATED COMMITMENTS:
Commercial — Specific	$	172		$	187		$	252		$	305		$	237			(8	)		(27	)
Commercial — Expected		105			95			85			84			87			11			21
Total Specific and Expected		277			282			337			389			324			(2	)		(15	)
Residual Component		47			47			47			47			39			—			21
Total Allowance for Lending-Related Commitments	$	324		$	329		$	384		$	436		$	363			(2	)		(11	)
Total Allowance for Credit Losses	$	4,847		$	5,082		$	5,471		$	5,651		$	5,713			(5	)		(15	)
Allowance for Loan Losses to Total Loans		2.06	%(a)		2.01	%(a)		2.24	%		2.40	%		2.47	%	5		bp	(41		)bp
Allowance for Loan Losses to Total Nonperforming Loans		180			153			147			138			128			2,700			5,200
Allowance for Loan Losses to Total Nonperforming Assets		147			129			125			119			112			1,800			3,500
CREDIT COSTS
Loans:
Commercial	$	(197	)	$	(85	)	$	58		$	194		$	526			(132	)%	NM			$	(30	)	$	2,371		NM
Consumer		388			363			329			411			395			7			(2	)%		1,491			1,589			(6	)
Total Specific and Expected		191			278			387			605			921			(31	)		(79	)		1,461			3,960			(63	)
Residual Component		(47	)		—			100			65			—		NM			NM				118			79			49
Total Provision for Loan Losses		144			278			487			670			921			(48	)		(84	)		1,579			4,039			(61	)
Lending-Related Commitments:
Commercial		(5	)		(55	)		(52	)		65			25			91		NM				(47	)		309		NM
Residual Component		—			—			—			8			(25	)	NM			NM				8			(17	)	NM
Total Provision for Lending-Related Commitments		(5	)		(55	)		(52	)		73			—			91		NM				(39	)		292		NM
Provision for Credit Losses		139			223			435			743			921			(38	)		(85	)		1,540			4,331			(64	)
Securitized Credit Losses		462			471			480			457			430			(2	)		7			1,870			1,439			30
Total Managed Credit Costs	$	601		$	694		$	915		$	1,200		$	1,351			(13	)		(56	)	$	3,410		$	5,770			(41	)

(a) Reflects the impact of consolidated variable interest entities in accordance with FIN 46. Excluding the exposures related to the FIN 46 adoption, the ratio would have been 2.12% and 2.11% at December 31, 2003 and September 30, 2003, respectively.

Page 23

J.P. MORGAN CHASE & CO.
CAPITAL

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
AVAILABLE VERSUS REQUIRED AVERAGE CAPITAL
(in billions)
Common Stockholders’ Equity	$	44.2	(a)	$	43.1		$	42.8		$	41.9		$	42.0			3	%		5	%	$	43.0	(a)	$	41.4			4	%
Economic Risk Capital
Credit Risk		10.6	(a)		12.6			14.4			15.1			14.7			(16	)		(28	)		13.1	(a)		14.0			(6	)
Market Risk		4.6	(a)		5.0			4.3			4.2			4.1			(8	)		12			4.5	(a)		4.7			(4	)
Operational Risk		3.5	(a)		3.4			3.5			3.5			3.5			3			—			3.5	(a)		3.5			—
Business Risk		1.7	(a)		1.7			1.7			1.7			1.8			—			(6	)		1.7	(a)		1.8			(6	)
Private Equity Risk		5.2	(a)		5.4			5.4			5.4			5.5			(4	)		(5	)		5.4	(a)		5.8			(7	)
Economic Risk Capital		25.6	(a)		28.1			29.3			29.9			29.6			(9	)		(14	)		28.2	(a)		29.8			(5	)
Goodwill / Intangibles		9.1	(a)		8.8			8.9			8.9			8.9			3			2			8.9	(a)		8.8			1
Asset Capital Tax		4.0	(a)		4.1			3.9			4.0			3.9			(2	)		3			4.1	(a)		3.9			5
Capital Against Nonrisk Factors		13.1	(a)		12.9			12.8			12.9			12.8			2			2			13.0	(a)		12.7			2
Total Capital Allocated to Business Activities		38.7			41.0			42.1			42.8			42.4			(6	)		(9	)		41.2			42.5			(3	)
Diversification Effect		(5.0	)(a)		(5.3	)		(5.0	)		(5.0	)		(4.9	)		6			(2	)		(5.1	)(a)		(5.3	)		4
Total Required Internal Capital		33.7	(a)		35.7			37.1			37.8			37.5			(6	)		(10	)		36.1	(a)		37.2			(3	)
Firm Capital in Excess of Required Capital	$	10.5	(a)	$	7.4		$	5.7		$	4.1		$	4.5			42			133		$	6.9	(a)	$	4.2			64
COMMON SHARES OUTSTANDING
(in millions)
Basic Weighted — Average Shares Outstanding		2,016.2			2,012.2			2,005.6			1,999.8			1,990.0			—			1			2,008.6			1,984.3			1
Diluted Weighted — Average Shares Outstanding		2,079.3			2,068.2			2,050.6			2,021.9			2,008.5			1			4			2,055.1			2,009.1			2
Common Shares Outstanding — at Period End		2,042.6			2,039.2			2,035.1			2,030.0			1,998.7			—			2
CASH DIVIDENDS DECLARED PER SHARE	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34			—			—		$	1.36		$	1.36			—
BOOK VALUE PER SHARE		22.10			21.55			21.53			20.73			20.66			3			7
SHARE PRICE
High	$	36.99		$	38.26		$	36.52		$	28.29		$	26.14			(3	)		42		$	38.26		$	39.68			(4	)
Low		34.45			32.40			23.75			20.13			15.26			6			126			20.13			15.26			32
Close		36.73			34.33			34.18			23.71			24.00			7			53
CAPITAL RATIOS
(in millions, except ratios)
Tier 1 Capital	$	43,139	(a)	$	42,533		$	41,115		$	38,442		$	37,570			1			15
Total Capital		59,761	(a)		59,455			58,848			55,702			54,495			1			10
Risk-Weighted Assets		511,896	(a)		490,590			491,500	(b)		455,549			455,948			4			12
Adjusted Average Assets		765,541	(a)		770,707			751,376			764,677			741,862			(1	)		3
Tier 1 Capital Ratio		8.4	%(a)		8.7	%		8.4	%(b)		8.4	%		8.2	%	(30		)bp	20		bp
Total Capital Ratio		11.7	(a)		12.1			12.0	(b)		12.2			12.0			(40	)		(30	)
Tier 1 Leverage Ratio		5.6	(a)		5.5			5.5			5.0			5.1			10			50

(a)	Estimated
(b)	The Firm changed the way it calculates risk-weighted assets during the third quarter of 2003. The June 30, 2003 Tier 1 and Total Capital ratios of 8.4% and 12.0%, respectively, are calculated on the same basis as for September 30, 2003. The June 30, 2003 Tier 1 and Total Capital ratios were previously reported as 8.7% and 12.4%, respectively. Prior quarters have not been restated.

Page 24

J.P. MORGAN CHASE & CO.
MARKET RISK — INVESTMENT BANK AVERAGE TRADING VAR

																4QTR 2003												2003
	4QTR			3QTR			2QTR			1QTR			4QTR			Over (Under)						FULL YEAR						Over (Under)
(in millions)	2003			2003			2003			2003			2002			3Q 2003			4Q 2002			2003			2002			2002
IB Trading Portfolio:
Interest Rate	$	75.8		$	65.8		$	60.5		$	53.5		$	66.4			15	%		14	%	$	63.9		$	67.6			(5	)%
Foreign Exchange		20.3			14.8			15.2			17.3			14.0			37			45			16.8			11.6			45
Equities		40.9			12.0			9.2			11.0			8.5			241			381			18.2			14.4			26
Commodities		2.7			3.5			3.1			2.2			2.1			(23	)		29			2.9			3.6			(19	)
Hedge Fund Investment		5.4			5.9			4.5			3.5			3.4			(8	)		59			4.8			3.2			50
Less: Portfolio Diversification		(50.6	)		(33.5	)		(34.3	)		(34.1	)		(27.8	)		(51	)		(82	)		(38.0	)		(28.8	)		(32	)
Total Investment Bank Trading VAR	$	94.5		$	68.5		$	58.2		$	53.4		$	66.6			38			42		$	68.6		$	71.6			(4	)

Page 25

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

Assets Under Management:Represent assets actively managed by Investment Management & Private Banking on behalf of institutional, retail and private banking clients. Excludes assets managed at American Century Companies, Inc., in which the Firm has a 44% ownership interest.

Assets Under Supervision:Represent assets under management as well as custody, brokerage, administration and deposit accounts.

Average Allocated Capital:Represents the portion of average common stockholders’ equity allocated to the business segments, based on their respective risks. The total average allocated capital of all business segments equals the total average common stockholders’ equity of the Firm.

Average Goodwill Capital:The Firm allocates capital to businesses equal to 100% of the carrying value of goodwill. Average goodwill capital is equal to the average carrying value of goodwill.

Average Managed Assets:Includes credit card receivables that have been securitized.

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.

FIN 46:FASB Interpretation No. 46, “Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin No. 51.”

JPMorgan Partners (“JPMP”):JPMorgan Chase’s private equity business. The fair value of public investments held by JPMP are marked-to-market at the quoted public value. To determine the carrying values of these investments, JPMP incorporates the use of liquidity discounts to take into account the fact that it cannot immediately realize or hedge the quoted public values as a result of regulatory, corporate and/or contractual sales restrictions imposed on these holdings. Private investments are initially valued based on cost. The carrying values of private investments are adjusted from cost to reflect both positive and negative changes evidenced by financing events with third-party capital providers. In addition, these investments are subject to ongoing impairment reviews by JPMP’s senior investment professionals. A variety of factors are reviewed and monitored to assess impairment including, but not limited to, operating performance and future expectations, comparable industry valuations of public companies, changes in market outlook and changes in the third-party financing environment.

Managed Credit Card Receivables or Managed Basis:Refers to credit card receivables on the Firm’s balance sheet plus credit card receivables that have been securitized.

NM:Not meaningful

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

Other Consumer Loans:Consists of manufactured housing loans, installment loans (direct and indirect types of consumer finance), student loans, unsecured revolving lines of credit and non-U.S. consumer loans.

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

Reported Basis:Financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reported basis includes the impact of credit card securitizations, merger and restructuring costs and special items.

Return on Tangible Allocated Capital:Operating earnings less preferred dividends as a percentage of average allocated capital, excluding the impact of goodwill.

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.

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

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

Tangible Shareholder Value Added:SVA less the impact of goodwill on operating earnings and capital charges.

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

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

Page 26