JPMorgan Chase & Co. (JPM) 8-K Jpmorgan Chase and Bank One Report 2004 Second Quarter Results

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2004

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

	Page
Reported Basis
Consolidated Financial Highlights	3
Statement of Income — Reported Basis	4
Selected Noninterest Revenue and Noninterest Expense Detail	5
Consolidated Balance Sheet	6
Condensed Average Balance Sheet and Annualized Yields	7
Operating Basis
Statement of Income — Operating Basis	8
Reconciliation from Reported to Operating Basis	9
Lines of Business Financial Highlights Summary — Operating Basis	10
Investment Bank	11
Business-Related Metrics	12
Treasury & Securities Services	13
Investment Management & Private Banking	14
Assets Under Supervision	15
JPMorgan Partners	16
Investment Portfolio — Private and Public Securities	17
Chase Financial Services	18
Business Financial Highlights	19
Business-Related Metrics	20
Credit-Related Information	21-25
Supplemental Detail
Capital	26
Market Risk — Investment Bank Average Trading VAR	27
Glossary of Terms	28

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

Page 2

REPORTED BASIS

J.P. MORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share, ratio and employee data)

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
SELECTED INCOME STATEMENT DATA:
Revenue	$	8,599		$	8,977		$	8,068		$	7,748		$	9,034			(4	)%		(5	)%	$	17,576		$	17,440			1	%
Provision for Credit Losses		203			15			139			223			435			NM			(53	)		218			1,178			(81	)
Noninterest Expense		9,471			6,059			5,220			5,095			5,832			56			62			15,530			11,373			37
Net Income (Loss)		(548	)		1,930			1,864			1,628			1,827			NM			NM			1,382			3,227			(57	)
Per Common Share:
Net Income (Loss) per Share:
Basic	$	(0.27	)	$	0.94		$	0.92		$	0.80		$	0.90			NM			NM		$	0.67		$	1.60			(58	)
Diluted		(0.27	)		0.92			0.89			0.78			0.89			NM			NM			0.65			1.57			(59	)
Cash Dividends Declared per Share		0.34			0.34			0.34			0.34			0.34			—			—			0.68			0.68			—
Book Value per Share (Period-End)		21.52			22.62			22.10			21.55			21.53			(5	)		—
Closing Share Price		38.77			41.95			36.73			34.33			34.18			(8	)		13
Common Shares Outstanding:
Average:
Basic		2,042.8			2,032.3			2,016.2			2,012.2			2,005.6			1			2			2,037.6			2,002.8			2
Diluted		2,099.6			2,092.7			2,079.3			2,068.2			2,050.6			—			2			2,096.3			2,036.3			3
Common Shares at Period-End		2,087.5			2,081.7			2,042.6			2,039.2			2,035.1			—			3
SELECTED RATIOS:
Return on Average Common Equity (a)		NM			17	%		17	%		15	%		17	%		NM			NM			6	%		15	%		(900	)bp
Tier 1 Capital Ratio		8.2	%(b)		8.4			8.5			8.7			8.4			(20	)bp		(20	)bp
SELECTED BALANCE SHEET DATA (PERIOD-END):
Total Assets	$	817,763		$	801,078		$	770,912		$	792,700		$	802,603			2	%		2	%
Deposits		346,539			336,886			326,492			313,626			318,248			3			9
Common Stockholders’ Equity		44,932			47,092			45,145			43,948			43,812			(5	)		3
FULL-TIME EQUIVALENT EMPLOYEES		91,008			93,285			93,453			92,940			92,256			(2	)		(1	)
SEGMENT EARNINGS
Investment Bank	$	703		$	1,110		$	864		$	877		$	1,037			(37	)		(32	)	$	1,813		$	1,933			(6	)%
Treasury & Securities Services		121			119			143			140			111			2			9			240			223			8
Investment Management & Private Banking		93			116			100			79			58			(20	)		60			209			84			149
JPMorgan Partners		187			116			23			6			(96	)		61			NM			303			(318	)		NM
Chase Financial Services		620			427			560			432			853			45			(27	)		1,047			1,501			(30	)
Support Units and Corporate		82			42			174			94			(136	)		95			NM			124			(196	)		NM
Operating Earnings (c)	$	1,806		$	1,930		$	1,864		$	1,628		$	1,827			(6	)		(1	)	$	3,736		$	3,227			16

(a)	Based on annualized amounts.
(b)	Estimated
(c)	Refer to page 8 for a reconciliation between reported Net Income and Operating Earnings.

Page 3

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
REVENUE
Investment Banking Fees	$	893		$	692		$	846		$	649		$	779			29	%		15	%	$	1,585		$	1,395			14	%
Trading Revenue		873			1,720			754			829			1,546			(49	)		(44	)		2,593			2,844			(9	)
Fees and Commissions		2,968			2,933			2,871			2,742			2,551			1			16			5,901			5,039			17
Private Equity Gains (Losses)		421			306			163			120			(29	)		38			NM			727			(250	)		NM
Securities Gains		39			126			29			164			768			(69	)		(95	)		165			1,253			(87	)
Mortgage Fees and Related Income		327			244			140			8			311			34			5			571			744			(23	)
Other Revenue		253			126			254			188			45			101			462			379			137			177
Total Noninterest Revenue		5,774			6,147			5,057			4,700			5,971			(6	)		(3	)		11,921			11,162			7
Interest Income		5,453			5,478			5,614			5,696			5,871			—			(7	)		10,931			12,134			(10	)
Interest Expense		2,628			2,648			2,603			2,648			2,808			(1	)		(6	)		5,276			5,856			(10	)
Net Interest Income		2,825			2,830			3,011			3,048			3,063			—			(8	)		5,655			6,278			(10	)
Revenue before Provision for Credit Losses		8,599			8,977			8,068			7,748			9,034			(4	)		(5	)		17,576			17,440			1
Provision for Credit Losses		203			15			139			223			435			NM			(53	)		218			1,178			(81	)
TOTAL NET REVENUE		8,396			8,962			7,929			7,525			8,599			(6	)		(2	)		17,358			16,262			7
NONINTEREST EXPENSE
Compensation Expense		3,011			3,370			2,577			2,713			3,231			(11	)		(7	)		6,381			6,405			—
Occupancy Expense		440			431			482			391			543			2			(19	)		871			1,039			(16	)
Technology and Communications Expense		786			819			756			719			732			(4	)		7			1,605			1,369			17
Other Expense		1,444			1,439			1,405			1,272			1,226			—			18			2,883			2,460			17
Litigation Reserve (a)		3,700			—			—			—			100			NM			NM			3,700			100			NM
Merger Costs		90			—			—			—			—			NM			NM			90			—			NM
TOTAL NONINTEREST EXPENSE		9,471			6,059			5,220			5,095			5,832			56			62			15,530			11,373			37
Income (Loss) before Income Tax Expense		(1,075	)		2,903			2,709			2,430			2,767			NM			NM			1,828			4,889			(63	)
Income Tax Expense (Benefit)		(527	)		973			845			802			940			NM			NM			446			1,662			(73	)
NET INCOME (LOSS)	$	(548	)	$	1,930		$	1,864		$	1,628		$	1,827			NM			NM		$	1,382		$	3,227			(57	)
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK	$	(561	)	$	1,917		$	1,851		$	1,615		$	1,815			NM			NM		$	1,356		$	3,202			(58	)
NET INCOME (LOSS) PER COMMON SHARE
Basic	$	(0.27	)	$	0.94		$	0.92		$	0.80		$	0.90			NM			NM		$	0.67		$	1.60			(58	)
Diluted		(0.27	)		0.92			0.89			0.78			0.89			NM			NM			0.65			1.57			(59	)
FINANCIAL RATIOS
Return on Average Assets (b)		NM			1.01	%		0.95	%		0.83	%		0.96	%		NM			NM			0.35	%		0.84	%		(49	)bp
Return on Average Common Equity (b)		NM			17			17			15			17			NM			NM			6			15			(900	)
Common Dividend Payout Ratio		NM			38			38			44			40			NM			NM			106			44			6,200
Effective Income Tax Rate		49	%		34			31			33			34			1,500	bp		1,500	bp		24			34			(1,000	)
Overhead Ratio		110			67			65			66			65			4,300			4,500			88			65			2,300
FULL-TIME EQUIVALENT EMPLOYEES		91,008			93,285			93,453			92,940			92,256			(2	)%		(1	)%

(a)	Reflects a $3.7 billion and $100 million addition to the Litigation Reserve.
(b)	Based on annualized amounts.

Page 4

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

											2QTR 2004										YTD 2004
	2QTR		1QTR		4QTR		3QTR		2QTR		Change						Year-to-date				Change
	2004		2004		2003		2003		2003		1Q 2004			2Q 2003			2004		2003		2003
NONINTEREST REVENUE
Fees and Commissions:
Investment Management and Service Fees	$	668	$	668	$	618	$	573	$	508		—	%		31	%	$	1,336	$	1,053		27	%
Custody and Institutional Trust Service Fees		478		442		431		404		408		8			17			920		766		20
Credit Card Fees		767		734		825		756		698		4			10			1,501		1,390		8
Brokerage Commissions		350		401		316		310		296		(13	)		18			751		555		35
Lending-Related Service Fees		148		139		172		157		127		6			17			287		251		14
Deposit Service Fees		264		274		279		298		284		(4	)		(7	)		538		569		(5	)
Other Fees		293		275		230		244		230		7			27			568		455		25
Total	$	2,968	$	2,933	$	2,871	$	2,742	$	2,551		1			16		$	5,901	$	5,039		17
NONINTEREST EXPENSE
Other Expense:
Professional Services	$	329	$	372	$	394	$	325	$	324		(12	)		2		$	701	$	649		8
Outside Services		355		376		311		294		310		(6	)		15			731		582		26
Marketing		202		199		200		179		167		2			21			401		331		21
Travel and Entertainment		123		118		128		103		102		4			21			241		191		26
Amortization of Intangibles		79		79		74		73		73		—			8			158		147		7
All Other		356		295		298		298		250		21			42			651		560		16
Total	$	1,444	$	1,439	$	1,405	$	1,272	$	1,226		—			18		$	2,883	$	2,460		17

Page 5

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

																Jun 30, 2004
																Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2004			2004			2003			2003			2003			2004			2003
ASSETS
Cash and Due from Banks	$	23,525		$	19,419		$	20,268		$	18,585		$	23,398			21	%		1	%
Deposits with Banks		39,135			35,600			10,175			10,601			10,393			10			277
Federal Funds Sold and Securities Purchased under Resale Agreements		100,851			79,414			76,868			88,752			69,748			27			45
Securities Borrowed		44,947			49,881			41,834			37,096			41,067			(10	)		9
Trading Assets:
Debt and Equity Instruments		187,640			189,549			169,120			146,731			139,275			(1	)		35
Derivative Receivables (a)		49,980			58,434			83,751			83,787			93,602			(14	)		(47	)
Securities		64,915			70,747			60,244			65,152			82,549			(8	)		(21	)
Loans (Net of Allowance for Loan Losses)		221,971			213,510			214,995			231,448			222,307			4			—
Private Equity Investments		6,663			7,097			7,250			7,797			7,901			(6	)		(16	)
Goodwill		8,731			8,730			8,511			8,134			8,132			—			7
Other Intangibles:
Mortgage Servicing Rights		5,707			4,189			4,781			4,007			2,967			36			92
Purchased Credit Card Relationships		893			953			1,014			1,078			1,141			(6	)		(22	)
All Other Intangibles		799			813			685			311			320			(2	)		150
Other Assets		62,006			62,742			71,416			89,221			99,803			(1	)		(38	)
TOTAL ASSETS	$	817,763		$	801,078		$	770,912		$	792,700		$	802,603			2			2
LIABILITIES
Deposits:
Noninterest-Bearing	$	95,292		$	87,428		$	79,465		$	81,865		$	88,096			9			8
Interest-Bearing		251,247			249,458			247,027			231,761			230,152			1			9
Total Deposits		346,539			336,886			326,492			313,626			318,248			3			9
Federal Funds Purchased and Securities Sold under Repurchase Agreements		152,619			148,526			113,466			131,959			155,330			3			(2	)
Commercial Paper		15,300			14,972			14,284			14,790			12,382			2			24
Other Borrowed Funds		9,435			10,414			8,925			8,174			12,176			(9	)		(23	)
Trading Liabilities:
Debt and Equity Instruments		82,338			80,303			78,222			87,516			72,825			3			13
Derivative Payables (a)		42,838			53,883			71,226			68,285			72,831			(20	)		(41	)
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		56,576			43,656			45,066			54,333			64,072			30			(12	)
Beneficial Interests Issued by Consolidated Variable Interest Entities (b)		6,562			7,543			12,295			18,399			—			(13	)		NM
Long-Term Debt		52,981			50,062			48,014			43,945			43,371			6			22
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		6,634			6,732			6,768			6,716			1,108			(1	)		499
Guaranteed Preferred Beneficial Interests in Capital Debt Securities Issued by Consolidated Trusts		—			—			—			—			5,439			NM			NM
TOTAL LIABILITIES		771,822			752,977			724,758			747,743			757,782			3			2
STOCKHOLDERS’ EQUITY
Preferred Stock		1,009			1,009			1,009			1,009			1,009			—			—
Common Stock		2,095			2,088			2,044			2,041			2,036			—			3
Capital Surplus		14,426			14,193			13,512			13,238			12,898			2			12
Retained Earnings		29,596			30,878			29,681			28,540			27,633			(4	)		7
Accumulated Other Comprehensive Income (Loss)		(910	)		177			(30	)		187			1,293			NM			NM
Treasury Stock, at Cost		(275	)		(244	)		(62	)		(58	)		(48	)		(13	)		(473	)
TOTAL STOCKHOLDERS’ EQUITY		45,941			48,101			46,154			44,957			44,821			(4	)		2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	817,763		$	801,078		$	770,912		$	792,700		$	802,603			2			2

(a)	Effective January 1, 2004, the Firm elected to net cash paid and received under credit support annexes to legally enforceable master netting agreements.
(b)	Not applicable for periods prior to the Firm’s adoption of FIN 46 on July 1, 2003.

Page 6

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	26,905		$	21,535		$	11,724		$	10,163		$	7,061			25	%		281	%	$	24,220		$	8,521			184	%
Federal Funds Sold and Securities Purchased under Resale Agreements		87,080			82,555			94,773			89,865			76,690			5			14			84,818			82,143			3
Securities Borrowed		54,233			48,609			40,371			40,019			42,160			12			29			51,421			40,417			27
Trading Assets — Debt and Equity Instruments		153,547			166,389			156,958			138,829			138,503			(8	)		11			159,968			150,064			7
Securities		64,149			63,992			63,903			75,032			86,830			—			(26	)		64,070			85,549			(25	)
Loans		225,344			217,478			230,795			237,508			219,950			4			2			221,411			217,927			2
Total Interest-Earning Assets		611,258			600,558			598,524			591,416			571,194			2			7			605,908			584,621			4
Noninterest-Earning Assets		191,612			170,760			179,995			191,010			193,461			12			(1	)		181,186			186,788			(3	)
TOTAL ASSETS	$	802,870		$	771,318		$	778,519		$	782,426		$	764,655			4			5		$	787,094		$	771,409			2
LIABILITIES
Interest-Bearing Deposits	$	254,034		$	238,206		$	237,636		$	221,539		$	225,950			7			12		$	246,120		$	225,671			9
Federal Funds Purchased and Securities Sold under Repurchase Agreements		155,335			145,370			141,089			148,132			164,386			7			(6	)		150,354			177,701			(15	)
Commercial Paper		14,283			13,153			13,293			13,088			12,929			9			10			13,718			13,588			1
Other Borrowings (a)		80,364			80,388			74,551			72,191			63,524			—			27			80,375			65,974			22
Beneficial Interests Issued by Consolidated Variable Interest Entities (b)		7,433			9,764			17,585			19,791			—			(24	)		NM			8,598			—			NM
Long-Term Debt		57,019			53,574			52,408			48,685			49,219			6			16			55,297			47,619			16
Total Interest-Bearing Liabilities		568,468			540,455			536,562			523,426			516,008			5			10			554,462			530,553			5
Noninterest-Bearing Liabilities		186,529			184,036			196,771			214,860			204,879			1			(9	)		185,282			197,536			(6	)
TOTAL LIABILITIES		754,997			724,491			733,333			738,286			720,887			4			5			739,744			728,089			2
Preferred Stock		1,009			1,009			1,009			1,009			1,009			—			—			1,009			1,009			—
Common Stockholders’ Equity		46,864			45,818			44,177			43,131			42,759			2			10			46,341			42,311			10
TOTAL STOCKHOLDERS’ EQUITY		47,873			46,827			45,186			44,140			43,768			2			9			47,350			43,320			9
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	802,870		$	771,318		$	778,519		$	782,426		$	764,655			4			5		$	787,094		$	771,409			2
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		1.68	%		1.62	%		2.88	%		0.93	%		2.39	%		6	bp		(71	)bp		1.66	%		2.50	%		(84	)bp
Federal Funds Sold and Securities Purchased under Resale Agreements		1.45			1.49			1.36			1.52			1.85			(4	)		(40	)		1.47			2.03			(56	)
Securities Borrowed		0.66			0.77			0.74			0.71			0.75			(11	)		(9	)		0.72			0.88			(16	)
Trading Assets		4.37			4.35			4.19			4.27			4.65			2			(28	)		4.36			4.65			(29	)
Securities		4.58			4.21			4.49			4.69			4.62			37			(4	)		4.40			4.62			(22	)
Loans		4.56			4.69			4.74			4.83			5.12			(13	)		(56	)		4.62			5.22			(60	)
Total Interest-Earning Assets		3.60			3.68			3.73			3.83			4.13			(8	)		(53	)		3.64			4.20			(56	)
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		1.28			1.37			1.33			1.41			1.69			(9	)		(41	)		1.33			1.80			(47	)
Federal Funds Purchased and Securities Sold under Repurchase Agreements		1.16			1.24			1.16			1.29			1.41			(8	)		(25	)		1.20			1.48			(28	)
Commercial Paper		0.98			0.96			0.98			1.00			1.22			2			(24	)		0.97			1.26			(29	)
Other Borrowings		4.47			4.57			4.91			5.12			5.39			(10	)		(92	)		4.52			5.18			(66	)
Beneficial Interests Issued by Consolidated Variable Interest Entities		2.04			1.60			1.36			0.92			—			44			NM			1.79			—			NM
Long-Term Debt		2.85			3.02			2.86			3.01			3.14			(17	)		(29	)		2.94			3.18			(24	)
Total Interest-Bearing Liabilities		1.86			1.97			1.92			2.01			2.18			(11	)		(32	)		1.91			2.23			(32	)
INTEREST RATE SPREAD		1.74	%		1.71	%		1.81	%		1.82	%		1.95	%		3			(21	)		1.73	%		1.97	%		(24	)
NET INTEREST MARGIN		1.87	%		1.90	%		2.00	%		2.05	%		2.16	%		(3	)		(29	)		1.89	%		2.18	%		(29	)
NET INTEREST MARGIN ADJUSTED FOR SECURITIZATIONS		2.19	%		2.22	%		2.32	%		2.36	%		2.47	%		(3	)		(28	)		2.21	%		2.48	%		(27	)

(a)	Includes securities sold but not yet purchased.
(b)	Not applicable for periods prior to the Firm’s adoption of FIN 46 on July 1, 2003.

Page 7

OPERATING BASIS

In addition to analyzing the Firm’s results on a reported basis, management reviews the line-of-business results on an “operating basis,” which is a non-GAAP financial measure. The definition of operating basis starts with the reported U.S. GAAP results. In the case of IB, operating basis includes in Trading Revenue net interest income related to trading activities. Trading activities generate revenues which are recorded for GAAP purposes in two line items on the income statement: Trading Revenue, which includes the mark-to-market gains or losses on trading positions; and Net Interest Income, which includes the interest income or expense related to those positions. Combining both the trading revenue and related net interest income enables management to evaluate IB’s trading activities, by considering all revenue related to these activities, and facilitates operating comparisons to other competitors. In the case of Chase Cardmember Services, operating or managed basis excludes the impact of credit card securitizations on revenue, the provision for credit losses, net charge-offs and receivables. JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance of the underlying credit card loans, both sold and not sold: as the same borrower is continuing to use the credit card for ongoing charges, a borrower’s credit performance will impact both the receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed receivables, JPMorgan Chase treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire managed credit card portfolio. Operating basis excludes the Litigation Reserve and Merger Costs, as management believes these items are not part of the Firm’s normal daily business operations and, therefore, not indicative of trends, and also do not provide meaningful comparisons with other periods.

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
OPERATING REVENUE
Investment Banking Fees	$	893		$	692		$	846		$	649		$	779			29	%		15	%	$	1,585		$	1,395			14	%
Trading-Related Revenue (Includes Trading NII)		1,312			2,296			1,272			1,278			2,025			(43	)		(35	)		3,608			4,006			(10	)
Fees and Commissions		2,832			2,784			2,687			2,569			2,429			2			17			5,616			4,748			18
Private Equity Gains (Losses)		421			306			163			120			(29	)		38			NM			727			(250	)		NM
Securities Gains		39			126			29			164			768			(69	)		(95	)		165			1,253			(87	)
Mortgage Fees and Related Income		327			244			140			8			311			34			5			571			744			(23	)
Other Revenue		208			87			225			174			21			139			NM			295			109			171
Net Interest Income (Excludes Trading NII)		3,053			2,915			3,168			3,257			3,210			5			(5	)		5,968			6,372			(6	)
TOTAL OPERATING REVENUE		9,085			9,450			8,530			8,219			9,514			(4	)		(5	)		18,535			18,377			1
OPERATING EXPENSE
Compensation Expense (a)		3,011			3,370			2,577			2,713			3,231			(11	)		(7	)		6,381			6,405			—
Noncompensation Expense (a) (b)		2,670			2,689			2,643			2,382			2,601			(1	)		3			5,359			4,968			8
TOTAL OPERATING EXPENSE		5,681			6,059			5,220			5,095			5,832			(6	)		(3	)		11,740			11,373			3
Operating Margin		3,404			3,391			3,310			3,124			3,682			—			(8	)		6,795			7,004			(3	)
Credit Costs		689			488			601			694			915			41			(25	)		1,177			2,115			(44	)
Operating Income before Income Tax Expense		2,715			2,903			2,709			2,430			2,767			(6	)		(2	)		5,618			4,889			15
Income Tax Expense		909			973			845			802			940			(7	)		(3	)		1,882			1,662			13
OPERATING EARNINGS	$	1,806		$	1,930		$	1,864		$	1,628		$	1,827			(6	)		(1	)	$	3,736		$	3,227			16
SELECTED METRICS
Diluted Earnings per Share	$	0.85		$	0.92		$	0.89		$	0.78		$	0.89			(8	)		(4	)	$	1.77		$	1.57			13
Return on Average Managed Assets (c) (e)		0.87	%		0.96	%		0.91	%		0.79	%		0.92	%		(9	)bp		(5	)bp		0.92	%		0.81	%		(11	)bp
Return on Average Allocated Capital (d) (e)		15			17			17			15			17			(200	)		(200	)		16			15			100
Compensation Expense as a % of Operating Revenue		33			36			30			33			34			(300	)		(100	)		34			35			(100	)
Noncompensation Expense as a % of Operating Revenue		29			28			31			29			27			100			200			29			27			200
Overhead Ratio		63			64			61			62			61			(100	)		200			63			62			100
RECONCILIATION OF NET INCOME (LOSS) TO OPERATING EARNINGS
Net Income (Loss)	$	(548	)	$	1,930		$	1,864		$	1,628		$	1,827			NM			NM		$	1,382		$	3,227			(57	)%
Reconciling Items (Net of Taxes):
Litigation Reserve		2,294			—			—			—			—			NM			NM			2,294			—			NM
Merger Costs		60			—			—			—			—			NM			NM			60			—			NM
Operating Earnings	$	1,806		$	1,930		$	1,864		$	1,628		$	1,827			(6	)%		(1	)%	$	3,736		$	3,227			16
EARNINGS PER SHARE — DILUTED
Net Income (Loss)	$	(0.27	)	$	0.92		$	0.89		$	0.78		$	0.89			NM			NM		$	0.65		$	1.57			(59	)
Reconciling Items (Net of Taxes):
Litigation Reserve		1.09			—			—			—			—			NM			NM			1.09			—			NM
Merger Costs		0.03			—			—			—			—			NM			NM			0.03			—			NM
Operating Earnings	$	0.85		$	0.92		$	0.89		$	0.78		$	0.89			(8	)		(4	)	$	1.77		$	1.57			13
RECONCILIATION OF OPERATING EARNINGS TO SHAREHOLDER VALUE ADDED
Operating Earnings	$	1,806		$	1,930		$	1,864		$	1,628		$	1,827			(6	)		(1	)	$	3,736		$	3,227			16
Less: Preferred Dividends		13			13			13			13			12			—			8			26			25			4
Earnings Applicable to Common Stock		1,793			1,917			1,851			1,615			1,815			(6	)		(1	)		3,710			3,202			16
Less: Cost of Capital (f)		1,398			1,367			1,337			1,304			1,279			2			9			2,765			2,518			10
Shareholder Value Added (g)	$	395		$	550		$	514		$	311		$	536			(28	)		(26	)	$	945		$	684			38
RECONCILIATION OF AVERAGE ASSETS TO AVERAGE MANAGED ASSETS
Average Assets	$	802,870		$	771,318		$	778,519		$	782,426		$	764,655			4			5		$	787,094		$	771,409			2
Average Credit Card Securitizations		33,026			33,357			33,445			32,497			31,665			(1	)		4			33,191			31,749			5
Average Managed Assets	$	835,896		$	804,675		$	811,964		$	814,923		$	796,320			4			5		$	820,285		$	803,158			2

(a)	Includes severance and other related costs associated with expense containment programs.
(b)	Includes Occupancy Expense, Technology and Communications Expense, Other Expense and, in the second quarter of 2003, Litigation Reserve.
(c)	Represents operating earnings as a percentage of average managed assets.
(d)	Represents operating earnings less preferred dividends as a percentage of average common equity.
(e)	Based on annualized amounts.
(f)	A 12% (after-tax) cost of capital, based on average allocated capital, is used by the Firm. To derive shareholder value added for the business segments, a 12% (after-tax) cost of capital is deducted from each business segment’s net income, except for JPMorgan Partners, which is charged a 15% (after-tax) cost of capital.
(g)	Management uses the SVA framework as its primary measure of profitability for the Firm and each of its business segments. To derive SVA, the Firm applies a cost of capital to each business segment. The capital elements and resultant capital charges provide the businesses and investors with a financial framework by which to evaluate the trade-off between the use of capital by each business unit versus its return to shareholders. JPMorgan Chase varies the amount of capital attributed to lines of business based on its estimate of the economic risk capital required by the line of business as a result of the credit, market, operational and business risk for each particular line of business and private equity risk for JPMorgan Partners. JPMorgan Chase believes this risk-adjusted approach to economic capital compensates for differing levels of risk across businesses, and therefore a constant 12% cost of capital can be applied across businesses with differing levels of risk. The cost of capital for JPMorgan Partners is 15%, because JPMorgan Chase believes that the business risk for JPMP is so sufficiently differentiated that, even after risk-adjustment, a higher cost of capital is warranted. Capital charges are an integral part of the SVA measurement for each business. Under the Firm’s model, average common equity is either underallocated or overallocated to the business segments, as compared with the Firm’s total common stockholders’ equity. The revenue and SVA impact of this over/under allocation is reported under Support Units and Corporate.

Page 8

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
REPORTED
Revenue
Investment Banking Fees	$	893		$	692		$	846		$	649		$	779			29	%		15	%	$	1,585		$	1,395			14	%
Trading Revenue		873			1,720			754			829			1,546			(49	)		(44	)		2,593			2,844			(9	)
Fees and Commissions		2,968			2,933			2,871			2,742			2,551			1			16			5,901			5,039			17
Private Equity Gains (Losses)		421			306			163			120			(29	)		38			NM			727			(250	)		NM
Securities Gains		39			126			29			164			768			(69	)		(95	)		165			1,253			(87	)
Mortgage Fees and Related Income		327			244			140			8			311			34			5			571			744			(23	)
Other Revenue		253			126			254			188			45			101			462			379			137			177
Net Interest Income		2,825			2,830			3,011			3,048			3,063			—			(8	)		5,655			6,278			(10	)
Total Revenue		8,599			8,977			8,068			7,748			9,034			(4	)		(5	)		17,576			17,440			1
Noninterest Expense
Litigation Reserve		3,700			—			—			—			100			NM			NM			3,700			100			NM
Merger Costs		90			—			—			—			—			NM			NM			90			—			NM
All Other Noninterest Expense		5,681			6,059			5,220			5,095			5,732			(6	)		(1	)		11,740			11,273			4
Total Noninterest Expense		9,471			6,059			5,220			5,095			5,832			56			62			15,530			11,373			37
Operating Margin		(872	)		2,918			2,848			2,653			3,202			NM			NM			2,046			6,067			(66	)
Provision for Credit Losses		203			15			139			223			435			NM			(53	)		218			1,178			(81	)
Income (Loss) before Income Tax Expense		(1,075	)		2,903			2,709			2,430			2,767			NM			NM			1,828			4,889			(63	)
Income Tax Expense (Benefit)		(527	)		973			845			802			940			NM			NM			446			1,662			(73	)
Net Income (Loss)	$	(548	)	$	1,930		$	1,864		$	1,628		$	1,827			NM			NM		$	1,382		$	3,227			(57	)
RECONCILING ITEMS (a)
Revenue
Trading-Related Revenue (b)	$	439		$	576		$	518		$	449		$	479			(24	)		(8	)	$	1,015		$	1,162			(13	)
Fees and Commissions (c)		(136	)		(149	)		(184	)		(173	)		(122	)		(9	)		11			(285	)		(291	)		(2	)
Other Revenue (c)		(45	)		(39	)		(29	)		(14	)		(24	)		15			88			(84	)		(28	)		200
Net Interest Income:
Trading-Related (b)		(439	)		(576	)		(518	)		(449	)		(479	)		(24	)		(8	)		(1,015	)		(1,162	)		(13	)
Credit Card Securitizations (c)		667			661			675			658			626			1			7			1,328			1,256			6
Total Net Interest Income		228			85			157			209			147			168			55			313			94			233
Total Revenue		486			473			462			471			480			3			1			959			937			2
Noninterest Expense
Litigation Reserve (d)		(3,700	)		—			—			—			—			NM			NM			(3,700	)		—			NM
Merger Costs (d)		(90	)		—			—			—			—			NM			NM			(90	)		—			NM
All Other Noninterest Expense		—			—			—			—			—			NM			NM			—			—			NM
Total Noninterest Expense		(3,790	)		—			—			—			—			NM			NM			(3,790	)		—			NM
Operating Margin		4,276			473			462			471			480			NM			NM			4,749			937			407
Securitized Credit Losses (c)		486			473			462			471			480			3			1			959			937			2
Income before Income Tax Expense		3,790			—			—			—			—			NM			NM			3,790			—			NM
Income Tax Expense		1,436			—			—			—			—			NM			NM			1,436			—			NM
Net Income	$	2,354		$	—		$	—		$	—		$	—			NM			NM		$	2,354		$	—			NM
OPERATING
Revenue
Investment Banking Fees	$	893		$	692		$	846		$	649		$	779			29			15		$	1,585		$	1,395			14
Trading-Related Revenue (Includes Trading NII)		1,312			2,296			1,272			1,278			2,025			(43	)		(35	)		3,608			4,006			(10	)
Fees and Commissions		2,832			2,784			2,687			2,569			2,429			2			17			5,616			4,748			18
Private Equity Gains (Losses)		421			306			163			120			(29	)		38			NM			727			(250	)		NM
Securities Gains		39			126			29			164			768			(69	)		(95	)		165			1,253			(87	)
Mortgage Fees and Related Income		327			244			140			8			311			34			5			571			744			(23	)
Other Revenue		208			87			225			174			21			139			NM			295			109			171
Net Interest Income (Excludes Trading NII)		3,053			2,915			3,168			3,257			3,210			5			(5	)		5,968			6,372			(6	)
Total Operating Revenue		9,085			9,450			8,530			8,219			9,514			(4	)		(5	)		18,535			18,377			1
Noninterest Expense
Litigation Reserve		—			—			—			—			100			NM			NM			—			100			NM
Merger Costs		—			—			—			—			—			NM			NM			—			—			NM
All Other Noninterest Expense		5,681			6,059			5,220			5,095			5,732			(6	)		(1	)		11,740			11,273			4
Total Noninterest Expense		5,681			6,059			5,220			5,095			5,832			(6	)		(3	)		11,740			11,373			3
Operating Margin		3,404			3,391			3,310			3,124			3,682			—			(8	)		6,795			7,004			(3	)
Credit Costs		689			488			601			694			915			41			(25	)		1,177			2,115			(44	)
Income before Income Tax Expense		2,715			2,903			2,709			2,430			2,767			(6	)		(2	)		5,618			4,889			15
Income Tax Expense		909			973			845			802			940			(7	)		(3	)		1,882			1,662			13
Operating Earnings	$	1,806		$	1,930		$	1,864		$	1,628		$	1,827			(6	)		(1	)	$	3,736		$	3,227			16

(a)	Represents only those line items on the Consolidated Statement of Income impacted by the reclassification of trading-related net interest income and the impact of credit card securitizations, as well as for the second quarter of 2004, the Litigation reserve and Merger costs line items on the Consolidated Statement of Income.
(b)	The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results. See page 11 for further information.
(c)	The impact of credit card securitizations impacts Chase Cardmember Services. See page 19 for further information.
(d)	The impact of the Litigation Reserve and Merger Costs are excluded from Operating Earnings, as management believes these items are not part of the Firm’s normal daily business operations and, therefore, not indicative of trends, and also do not provide meaningful comparisons with other periods.

Page 9

J.P. MORGAN CHASE & CO.
LINES OF BUSINESS FINANCIAL HIGHLIGHTS SUMMARY — OPERATING BASIS
(in millions, except ratio data)

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
OPERATING REVENUE
Investment Bank	$	3,116		$	3,980		$	3,046		$	3,160		$	4,203			(22	)%		(26	)%	$	7,096		$	8,212			(14	)%
Treasury & Securities Services		1,187			1,106			1,071			1,007			979			7			21			2,293			1,905			20
Investment Management & Private Banking		805			824			822			737			677			(2	)		19			1,629			1,319			24
JPMorgan Partners		350			249			106			71			(80	)		41			NM			599			(367	)		NM
Chase Financial Services		3,684			3,414			3,609			3,355			3,975			8			(7	)		7,098			7,668			(7	)
Support Units and Corporate		(57	)		(123	)		(124	)		(111	)		(240	)		54			76			(180	)		(360	)		50
OPERATING REVENUE	$	9,085		$	9,450		$	8,530		$	8,219		$	9,514			(4	)		(5	)	$	18,535		$	18,377			1
OPERATING EARNINGS
Investment Bank	$	703		$	1,110		$	864		$	877		$	1,037			(37	)		(32	)	$	1,813		$	1,933			(6	)
Treasury & Securities Services		121			119			143			140			111			2			9			240			223			8
Investment Management & Private Banking		93			116			100			79			58			(20	)		60			209			84			149
JPMorgan Partners		187			116			23			6			(96	)		61			NM			303			(318	)		NM
Chase Financial Services		620			427			560			432			853			45			(27	)		1,047			1,501			(30	)
Support Units and Corporate		82			42			174			94			(136	)		95			NM			124			(196	)		NM
OPERATING EARNINGS	$	1,806	(a)	$	1,930		$	1,864		$	1,628		$	1,827			(6	)		(1	)	$	3,736		$	3,227			16
AVERAGE ALLOCATED CAPITAL
Investment Bank	$	14,999		$	15,973		$	16,966		$	18,937		$	20,130			(6	)		(25	)	$	15,486		$	20,499			(24	)
Treasury & Securities Services		3,197			3,183			2,734			2,616			2,779			—			15			3,190			2,776			15
Investment Management & Private Banking		5,369			5,470			5,466			5,537			5,533			(2	)		(3	)		5,420			5,508			(2	)
JPMorgan Partners		4,547			4,899			5,541			5,721			5,916			(7	)		(23	)		4,723			5,950			(21	)
Chase Financial Services		9,143			9,413			8,972			8,948			8,687			(3	)		5			9,278			8,589			8
TOTAL CAPITAL ALLOCATED TO BUSINESS SEGMENTS		37,255			38,938			39,679			41,759			43,045			(4	)		(13	)		38,097			43,322			(12	)
Support Units and Corporate		9,609			6,880			4,498			1,372			(286	)		40			NM			8,244			(1,011	)		NM
TOTAL AVERAGE ALLOCATED CAPITAL	$	46,864		$	45,818		$	44,177		$	43,131		$	42,759			2			10		$	46,341		$	42,311			10
RETURN ON AVERAGE ALLOCATED CAPITAL
Investment Bank		19	%		28	%		20	%		18	%		21	%		(900	)bp		(200	)bp		23	%		19	%		400	bp
Treasury & Securities Services		15			15			21			21			16			—			(100	)		15			16			(100	)
Investment Management & Private Banking		7			8			7			6			4			(100	)		300			8			3			500
JPMorgan Partners		16			9			2			—			NM			700			NM			13			NM			NM
Chase Financial Services		27			18			25			19			39			900			(1,200	)		23			35			(1,200	)
RETURN ON AVERAGE COMMON EQUITY		15			17			17			15			17			(200	)		(200	)		16			15			100

(a) Excludes the after-tax impact of the $3.7 billion Litigation Reserve and $90 million of Merger Costs. See the Operating Basis section for a discussion of the non-GAAP adjustments to reported Net Income.

Page 10

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
OPERATING INCOME STATEMENT
REVENUE:
Trading Revenue (Includes Trading NII):  (a)
Equities	$	(88	)	$	333		$	94		$	95		$	160			NM			NM		$	245		$	359			(32	)%
Fixed Income and Other		1,345			1,936			1,113			1,160			1,868			(31	)%		(28	)%		3,281			3,600			(9	)
		1,257			2,269			1,207			1,255			2,028			(45	)		(38	)		3,526			3,959			(11	)
Investment Banking Fees		883			682			834			636			765			29			15			1,565			1,385			13
Net Interest Income		399			374			463			538			585			7			(32	)		773			1,276			(39	)
Fees and Commissions		455			485			437			425			402			(6	)		13			940			780			21
Securities Gains		43			129			13			225			445			(67	)		(90	)		172			828			(79	)
All Other Revenue		79			41			92			81			(22	)		93			NM			120			(16	)		NM
TOTAL OPERATING REVENUE		3,116			3,980			3,046			3,160			4,203			(22	)		(26	)		7,096			8,212			(14	)
EXPENSE:
Compensation Expense		1,160			1,401			825			970			1,384			(17	)		(16	)		2,561			2,697			(5	)
Noncompensation Expense		933			942			943			860			955			(1	)		(2	)		1,875			1,825			3
Operating Expense (Excl. Nonmerger-related Severance & Related Costs)		2,093			2,343			1,768			1,830			2,339			(11	)		(11	)		4,436			4,522			(2	)
Nonmerger-related Severance & Related Costs		17			19			67			26			150			(11	)		(89	)		36			254			(86	)
TOTAL OPERATING EXPENSE		2,110			2,362			1,835			1,856			2,489			(11	)		(15	)		4,472			4,776			(6	)
Operating Margin		1,006			1,618			1,211			1,304			1,714			(38	)		(41	)		2,624			3,436			(24	)
Credit Costs		(128	)		(188	)		(241	)		(181	)		(5	)		32			NM			(316	)		241			NM
Corporate Credit Allocation		2			2			(5	)		(10	)		(9	)		—			NM			4			(21	)		NM
Operating Income Before Income Tax Expense		1,136			1,808			1,447			1,475			1,710			(37	)		(34	)		2,944			3,174			(7	)
Income Tax Expense		433			698			583			598			673			(38	)		(36	)		1,131			1,241			(9	)
OPERATING EARNINGS	$	703		$	1,110		$	864		$	877		$	1,037			(37	)		(32	)	$	1,813		$	1,933			(6	)
Average Allocated Capital	$	14,999		$	15,973		$	16,966		$	18,937		$	20,130			(6	)		(25	)	$	15,486		$	20,499			(24	)
Average Assets		536,265			513,553			511,333			512,017			495,213			4			8			524,909			510,405			3
Return on Average Allocated Capital		19	%		28	%		20	%		18	%		21	%		(900	)bp		(200	)bp		23	%		19	%		400	bp
Overhead Ratio		68			59			60			59			59			900			900			63			58			500
Overhead Ratio Excl. Severance and Related Costs		67			59			58			58			56			800			1,100			63			55			800
Compensation Expense as a % of Operating Revenue		38			36			28			31			34			200			400			37			34			300
Excl. Severance and Related Costs		37			35			27			31			33			200			400			36			33			300
FULL-TIME EQUIVALENT EMPLOYEES		15,197			14,814			14,574			14,296			14,270			3	%		6	%
Shareholder Value Added:
Operating Earnings	$	703		$	1,110		$	864		$	877		$	1,037			(37	)		(32	)	$	1,813		$	1,933			(6	)%
Less: Preferred Dividends		4			5			5			5			5			(20	)		(20	)		9			10			(10	)
Earnings Applicable to Common Stock		699			1,105			859			872			1,032			(37	)		(32	)		1,804			1,923			(6	)
Less: Cost of Capital		448			476			513			573			603			(6	)		(26	)		924			1,220			(24	)
Total Shareholder Value Added	$	251		$	629		$	346		$	299		$	429			(60	)		(41	)	$	880		$	703			25

(a) Trading revenue, on a reported basis, excludes the impact of net interest income related to IB’s trading activities; this income is recorded within Net interest income. However, in assessing the profitability of IB’s trading business, the Firm combines these revenues for segment reporting. The amount reclassified from Net interest income to Trading revenue was $439 million, $576 million, $513 million, $451 million, and $484 million during the quarters ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively.

Page 11

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

													2QTR 2004												YTD 2004
	2QTR		1QTR			4QTR		3QTR		2QTR			Change						Year-to-date						Change
	2004		2004			2003		2003		2003			1Q 2004			2Q 2003			2004			2003			2003
BUSINESS REVENUE:
INVESTMENT BANKING FEES
Underwriting:
Equity Underwriting	$	221	$	177		$	254	$	173	$	163			25	%		36	%	$	398		$	271			47	%
Debt Underwriting		394		358			423		302		440			10			(10	)		752			792			(5	)
Total Underwriting		615		535			677		475		603			15			2			1,150			1,063			8
Advisory		268		147			157		161		162			82			65			415			322			29
TOTAL INVESTMENT BANKING FEES		883		682			834		636		765			29			15			1,565			1,385			13
MARKETS & LENDING
Fixed Income		1,550		2,068			1,366		1,432		2,156			(25	)		(28	)		3,618			4,120			(12	)
Equities		193		673			342		339		388			(71	)		(50	)		866			819			6
Credit Portfolio		315		345			361		389		274			(9	)		15			660			669			(1	)
TOTAL MARKETS & LENDING		2,058		3,086			2,069		2,160		2,818			(33	)		(27	)		5,144			5,608			(8	)
TOTAL REVENUE (EXCLUDING GLOBAL TREASURY)		2,941		3,768			2,903		2,796		3,583			(22	)		(18	)		6,709			6,993			(4	)
Global Treasury		175		212			143		364		620			(17	)		(72	)		387			1,219			(68	)
TOTAL REVENUE	$	3,116	$	3,980		$	3,046	$	3,160	$	4,203			(22	)		(26	)	$	7,096		$	8,212			(14	)
MEMO:
GLOBAL TREASURY
Total Revenue	$	175	$	212		$	143	$	364	$	620			(17	)		(72	)	$	387		$	1,219			(68	)
Total-Return Adjustments		135		(229	)		79		127		(183	)		NM			NM			(94	)		(247	)		62
Total-Return Revenue (a)	$	310	$	(17	)	$	222	$	491	$	437			NM			(29	)	$	293		$	972			(70	)
			Full Year
	YTD 2004			2003
MARKET SHARE / RANKINGS: (b)
Global Syndicated Loans		22%  /  #1		20%  /  #1
Global Investment-Grade Bonds		8%  /  #2		9%  /  #2
Global Equity and Equity-Related		6%  /  #7		8%  /  #4
U.S. Equity and Equity-Related		8%  /  #4		11%  /  #4
Global Announced M&A		23%  /  #5		15%  /  #4

(a)

Total-return revenue (“TRR”), a non-GAAP financial measure, represents revenue plus the change in unrealized gains or losses on investment securities and hedges (included in Other comprehensive income) and internally transfer-priced assets and liabilities. TRR is a supplemental performance measure used by management to analyze performance of Global Treasury on an economic basis. Management believes the TRR measure is meaningful, because it measures all positions on a mark-to-market basis, thereby reflecting the true economic value of positions in the portfolio. This performance measure is consistent with the manner in which the portfolio is managed, as it removes the timing differences that result from applying the various GAAP accounting policies.

(b)

Derived from Thomson Financial Securities Data, which reflect 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. Because of joint assignments, market share of all participants will add up to more than 100%. As disclosed by Thomson Financial, the market shares and rankings are presented on a combined basis reflecting the merger of JPMorgan Chase and Bank One.

Page 12

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions	$	791		$	745		$	676		$	654		$	632			6	%		25	%	$	1,536		$	1,230			25	%
Net Interest Income		323			313			304			311			307			3			5			636			597			7
All Other Revenue		73			48			91			42			40			52			83			121			78			55
TOTAL OPERATING REVENUE		1,187			1,106			1,071			1,007			979			7			21			2,293			1,905			20
EXPENSE:
Compensation Expense		348			343			322			309			309			1			13			691			622			11
Noncompensation Expense		642			571			504			480			482			12			33			1,213			930			30
Operating Expense (Excl. Nonmerger-related Severance & Related Costs)		990			914			826			789			791			8			25			1,904			1,552			23
Nonmerger-related Severance & Related Costs		10			7			23			10			24			43			(58	)		17			28			(39	)
TOTAL OPERATING EXPENSE		1,000			921			849			799			815			9			23			1,921			1,580			22
Operating Margin		187			185			222			208			164			1			14			372			325			14
Credit Costs		3			1			—			—			1			200			200			4			2			100
Corporate Credit Allocation		(2	)		(2	)		5			10			9			—			NM			(4	)		21			NM
Operating Income Before Income Tax Expense		182			182			227			218			172			—			6			364			344			6
Income Tax Expense		61			63			84			78			61			(3	)		—			124			121			2
OPERATING EARNINGS	$	121		$	119		$	143		$	140		$	111			2			9		$	240		$	223			8
Average Allocated Capital	$	3,197		$	3,183		$	2,734		$	2,616		$	2,779			—			15		$	3,190		$	2,776			15
Average Assets		21,623			19,785			20,525			18,037			19,334			9			12			20,704			18,426			12
Average Deposits		111,619			99,489			89,647			87,121			79,974			12			40			105,554			77,264			37
Return on Average Allocated Capital		15	%		15	%		21	%		21	%		16	%		—	bp		(100	)bp		15	%		16	%		(100	)bp
Overhead Ratio		84			83			79			79			83			100			100			84			83			100
Assets under Custody (in billions)	$	7,980		$	8,001		$	7,597		$	6,926		$	6,777			—	%		18	%
FULL-TIME EQUIVALENT EMPLOYEES		14,404			14,749			14,530			14,185			14,273			(2	)		1
Shareholder Value Added:
Operating Earnings	$	121		$	119		$	143		$	140		$	111			2			9		$	240		$	223			8	%
Less: Preferred Dividends		1			1			1			—			—			—			NM			2			1			100
Earnings Applicable to Common Stock		120			118			142			140			111			2			8			238			222			7
Less: Cost of Capital		95			96			82			80			83			(1	)		14			191			165			16
Total Shareholder Value Added	$	25		$	22		$	60		$	60		$	28			14			(11	)	$	47		$	57			(18	)
OPERATING REVENUE BY BUSINESS:
Treasury Services	$	544		$	537		$	485		$	497		$	468			1			16		$	1,081		$	942			15
Investor Services		455			399			381			370			360			14			26			854			701			22
Institutional Trust Services		274			257			252			233			238			7			15			531			437			22
Other		(86	)		(87	)		(47	)		(93	)		(87	)		1			1			(173	)		(175	)		1
Total Treasury & Securities Services	$	1,187		$	1,106		$	1,071		$	1,007		$	979			7			21		$	2,293		$	1,905			20

Page 13

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions	$	644		$	657		$	617		$	572		$	508			(2	)%		27	%	$	1,301		$	1,018			28	%
Net Interest Income		113			117			118			116			117			(3	)		(3	)		230			232			(1	)
All Other Revenue		48			50			87			49			52			(4	)		(8	)		98			69			42
TOTAL OPERATING REVENUE		805			824			822			737			677			(2	)		19			1,629			1,319			24
EXPENSE:
Compensation Expense		337			322			299			307			294			5			15			659			579			14
Noncompensation Expense		327			312			315			305			289			5			13			639			584			9
Operating Expense (Excl. Nonmerger-related Severance & Related Costs)		664			634			614			612			583			5			14			1,298			1,163			12
Nonmerger-related Severance & Related Costs		5			1			19			11			7			400			(29	)		6			14			(57	)
TOTAL OPERATING EXPENSE		669			635			633			623			590			5			13			1,304			1,177			11
Operating Margin		136			189			189			114			87			(28	)		56			325			142			129
Credit Costs		(4	)		10			36			(7	)		—		NM			NM				6			6			—
Operating Income Before Income Tax Expense		140			179			153			121			87			(22	)		61			319			136			135
Income Tax Expense		47			63			53			42			29			(25	)		62			110			52			112
OPERATING EARNINGS	$	93		$	116		$	100		$	79		$	58			(20	)		60		$	209		$	84			149
Average Tangible Allocated Capital	$	1,212		$	1,316		$	1,318		$	1,389		$	1,385			(8	)		(12	)	$	1,264		$	1,361			(7	)
Average Goodwill Capital		4,157			4,154			4,148			4,148			4,148			—			—			4,156			4,147			—
Average Allocated Capital		5,369			5,470			5,466			5,537			5,533			(2	)		(3	)		5,420			5,508			(2	)
Average Assets		35,054			35,263			34,108			33,255			33,987			(1	)		3			35,158			33,811			4
Return on Tangible Allocated Capital (a)		31	%		36	%		31	%		23	%		17	%		(500	)bp		1,400	bp		34	%		12	%		2,200	bp
Return on Average Allocated Capital		7			8			7			6			4			(100	)		300			8			3			500
Overhead Ratio		83			77			77			85			87			600			(400	)		80			89			(900	)
FULL-TIME EQUIVALENT EMPLOYEES		7,954			7,940			7,872			7,849			8,027			—	%		(1	)%
Shareholder Value Added:
Operating Earnings	$	93		$	116		$	100		$	79		$	58			(20	)		60		$	209		$	84			149	%
Less: Preferred Dividends		2			2			2			2			2			—			—			4			3			33
Earnings Applicable to Common Stock		91			114			98			77			56			(20	)		63			205			81			153
Less: Cost of Tangible Allocated Capital		33			36			36			39			39			(8	)		(15	)		69			78			(12	)
Tangible Shareholder Value Added (a)		58			78			62			38			17			(26	)		241			136			3		NM
Less: Cost of Goodwill Capital		127			127			129			128			126			—			1			254			250			2
Shareholder Value Added	$	(69	)	$	(49	)	$	(67	)	$	(90	)	$	(109	)		(41	)		37		$	(118	)	$	(247	)		52

(a) The Firm uses return on tangible allocated capital and tangible shareholder value added, non-GAAP financial measures, as two of several measures to evaluate the economics of the IMPB business segment. Return on tangible allocated capital and tangible shareholder value added measure return on an economic capital basis (that is, on a basis that takes into account the operational, business, credit and other risks to which this business is exposed, including the level of assets) but excludes the capital allocated for goodwill. The Firm utilizes these measures to facilitate operating comparisons of IMPB to other competitors.

Page 14

J.P. MORGAN CHASE & CO.
INVESTMENT MANAGEMENT & PRIVATE BANKING
ASSETS UNDER SUPERVISION (a)
(in billions)

														2QTR 2004
	2QTR			1QTR		4QTR			3QTR		2QTR			Change
	2004(b)			2004		2003			2003		2003			1Q 2004			2Q 2003
Asset Class:
Liquidity	$	151		$	164	$	160		$	149	$	140			(8	)%		8	%
Fixed Income		145			144		144			146		150			1			(3	)
Equities and Other		274			276		255			232		222			(1	)		23
Assets under Management		570			584		559			527		512			(2	)		11
Custody / Brokerage / Administration / Deposits		218			213		199			193		182			2			20
Total Assets under Supervision	$	788		$	797	$	758		$	720	$	694			(1	)		14
Client Segment:
Retail
Assets under Management	$	107		$	112	$	101		$	88	$	84			(4	)		27
Custody / Brokerage / Administration / Deposits		80			78		71			66		61			3			31
Assets under Supervision		187			190		172			154		145			(2	)		29
Private Bank
Assets under Management		139			141		138			132		130			(1	)		7
Custody / Brokerage / Administration / Deposits		138			135		128			127		121			2			14
Assets under Supervision		277			276		266			259		251			—			10
Institutional
Assets under Management		324			331		320			307		298			(2	)		9
Total Assets under Supervision	$	788		$	797	$	758		$	720	$	694			(1	)		14
Geographic Region:
Americas
Assets under Management	$	362		$	370	$	360		$	348	$	348			(2	)		4
Custody / Brokerage / Administration / Deposits		186			183		170			165		155			2			20
Assets under Supervision		548			553		530			513		503			(1	)		9
Europe, Middle East & Africa and Asia/Pacific
Assets under Management		208			214		199			179		164			(3	)		27
Custody / Brokerage / Administration / Deposits		32			30		29			28		27			7			19
Assets under Supervision		240			244		228			207		191			(2	)		26
Total Assets under Supervision	$	788		$	797	$	758		$	720	$	694			(1	)		14
Assets Under Supervision Rollforward:
Beginning Balance	$	797		$	758	$	720		$	694	$	622			5			28
Net Asset Flows		(2	)		14		(2	)		4		(9	)	NM				78
Market / Other Impact (c)		(7	)		25		40			22		81		NM			NM
Ending Balance	$	788		$	797	$	758		$	720	$	694			(1	)		14

(a)	Excludes assets under management of American Century.
(b)	Estimated
(c)	Other includes the acquisition of American Century Retirement Plan Services Inc. in the second quarter of 2003.

Page 15

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
OPERATING INCOME STATEMENT
REVENUE:
Direct Investments:
Realized Gains	$	402		$	302		$	202		$	134		$	153			33	%		163	%	$	704		$	199			254	%
Write-ups / (Write-downs / Write-offs)		(27	)		(23	)		(52	)		1			(177	)		(17	)		85			(50	)		(353	)		86
Mark-to-Market Gains (Losses) (a)		(1	)		25			48			26			147		NM			NM				24			141			(83	)
Total Direct Investments		374			304			198			161			123			23			204			678			(13	)	NM
Private Third-Party Fund Investments		18			(8	)		(39	)		(41	)		(145	)	NM			NM				10			(239	)	NM
Total Private Equity Gains (Losses) (b)		392			296			159			120			(22	)		32		NM				688			(252	)	NM
Net Interest Income (Loss)		(53	)		(59	)		(64	)		(61	)		(67	)		10			21			(112	)		(138	)		19
Fees and Other Revenue		11			12			11			12			9			(8	)		22			23			23			—
TOTAL OPERATING REVENUE		350			249			106			71			(80	)		41		NM				599			(367	)	NM
EXPENSE:
Compensation Expense		36			38			33			31			34			(5	)		6			74			67			10
Noncompensation Expense		32			31			38			32			38			3			(16	)		63			67			(6	)
TOTAL OPERATING EXPENSE		68			69			71			63			72			(1	)		(6	)		137			134			2
Operating Income (Loss) Before Income Tax Expense		282			180			35			8			(152	)		57		NM				462			(501	)	NM
Income Tax Expense (Benefit)		95			64			12			2			(56	)		48		NM				159			(183	)	NM
OPERATING EARNINGS (LOSS)	$	187		$	116		$	23		$	6		$	(96	)		61		NM			$	303		$	(318	)	NM
Average Allocated Capital	$	4,547		$	4,899		$	5,541		$	5,721		$	5,916			(7	)		(23	)	$	4,723		$	5,950			(21	)
Average Assets		7,270			7,769			8,199			8,653			9,008			(6	)		(19	)		7,520			9,217			(18	)
Return on Average Allocated Capital		16	%		9	%		2	%		—	%		NM			700	bp	NM				13	%		NM		NM
FULL-TIME EQUIVALENT EMPLOYEES		288			296			309			318			322			(3	)%		(11	)%
Shareholder Value Added:
Operating Earnings (Loss)	$	187		$	116		$	23		$	6		$	(96	)		61		NM			$	303		$	(318	)	NM
Less: Preferred Dividends		2			1			2			2			2			100			—			3			4			(25	)
Earnings (Loss) Applicable to Common Stock		185			115			21			4			(98	)		61		NM				300			(322	)	NM
Less: Cost of Capital		169			184			209			216			221			(8	)		(24	)		353			442			(20	)
Total Shareholder Value Added	$	16		$	(69	)	$	(188	)	$	(212	)	$	(319	)	NM			NM			$	(53	)	$	(764	)		93

(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 16

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

											Jun 30, 2004
											Change
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
	2004		2004		2003		2003		2003		2004			2003
PORTFOLIO INFORMATION
Public Securities (47 companies)(a)
Carrying Value	$	811	$	697	$	643	$	705	$	591		16	%		37	%
Cost		566		520		451		560		531		9			7
Quoted Public Value		1,306		1,107		994		1,083		868		18			50
Private Direct Securities (783 companies)(a)
Carrying Value		4,821		5,177		5,508		5,686		5,766		(7	)		(16	)
Cost		6,307		6,562		6,960		7,188		7,351		(4	)		(14	)
Private Third-Party Fund Investments (201 funds)(a)(b)
Carrying Value		751		961		1,099		1,406		1,544		(22	)		(51	)
Cost		1,208		1,512		1,736		2,020		2,121		(20	)		(43	)
Total Investment Portfolio — Carrying Value	$	6,383	$	6,835	$	7,250	$	7,797	$	7,901		(7	)		(19	)
Total Investment Portfolio — Cost	$	8,081	$	8,594	$	9,147	$	9,768	$	10,003		(6	)		(19	)

(a)	Represents the number of companies and funds at June 30, 2004.
(b)	Unfunded commitments to private equity funds were $850 million at June 30, 2004.

Page 17

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
OPERATING INCOME STATEMENT
REVENUE:
Net Interest Income	$	2,307		$	2,244		$	2,447		$	2,470		$	2,402			3	%		(4	)%	$	4,551		$	4,702			(3	)%
Fees and Commissions		937			876			948			897			893			7			5			1,813			1,718			6
Securities Gains (Losses)		—			—			18			(62	)		323		NM			NM				—			426		NM
Mortgage Fees and Related Income		355			241			137			8			310			47			15			596			742			(20	)
All Other Revenue		85			53			59			42			47			60			81			138			80			73
TOTAL OPERATING REVENUE		3,684			3,414			3,609			3,355			3,975			8			(7	)		7,098			7,668			(7	)
EXPENSE:
Compensation Expense		736			765			698			691			756			(4	)		(3	)		1,501			1,475			2
Noncompensation Expense		1,105			1,170			1,113			1,075			1,054			(6	)		5			2,275			2,118			7
Operating Expense (Excl. Nonmerger-related Severance & Related Costs)		1,841			1,935			1,811			1,766			1,810			(5	)		2			3,776			3,593			5
Nonmerger-related Severance & Related Costs		16			64			53			26			2			(75	)	NM				80			17			371
TOTAL OPERATING EXPENSE		1,857			1,999			1,864			1,792			1,812			(7	)		2			3,856			3,610			7
Operating Margin		1,827			1,415			1,745			1,563			2,163			29			(16	)		3,242			4,058			(20	)
Credit Costs		845			748			855			884			817			13			3			1,593			1,693			(6	)
Operating Income Before Income Tax Expense		982			667			890			679			1,346			47			(27	)		1,649			2,365			(30	)
Income Tax Expense		362			240			330			247			493			51			(27	)		602			864			(30	)
OPERATING EARNINGS	$	620		$	427		$	560		$	432		$	853			45			(27	)	$	1,047		$	1,501			(30	)
Average Allocated Capital	$	9,143		$	9,413		$	8,972		$	8,948		$	8,687			(3	)		5		$	9,278		$	8,589			8
Average Deposits		117,439			111,228			108,703			115,151			109,945			6			7			114,334			107,970			6
Return on Average Allocated Capital		27	%		18	%		25	%		19	%		39	%		900	bp		(1,200	)bp		23	%		35	%		(1,200	)bp
Overhead Ratio		50			59			52			53			46			(900	)		400			54			47			700
FULL-TIME EQUIVALENT EMPLOYEES		43,235			45,292			46,095			46,168			45,204			(5	)%		(4	)%
				��
Shareholder Value Added:
Operating Earnings	$	620		$	427		$	560		$	432		$	853			45			(27	)	$	1,047		$	1,501			(30	)%
Less: Preferred Dividends		3			3			3			3			2			—			50			6			5			20
Earnings Applicable to Common Stock		617			424			557			429			851			46			(27	)		1,041			1,496			(30	)
Less: Cost of Capital		273			281			271			270			260			(3	)		5			554			511			8
Total Shareholder Value Added	$	344		$	143		$	286		$	159		$	591			141			(42	)	$	487		$	985			(51	)
RECONCILIATION OF AVERAGE REPORTED LOANS TO AVERAGE MANAGED LOANS
Average Reported Loans	$	161,296		$	153,416		$	158,923		$	160,324		$	151,861			5			6		$	157,356		$	147,062			7
Average Credit Card Securitizations		33,026			33,357			33,445			32,497			31,665			(1	)		4			33,191			31,749			5
Average Managed Loans	$	194,322		$	186,773		$	192,368		$	192,821		$	183,526			4			6		$	190,547		$	178,811			7
RECONCILIATION OF AVERAGE REPORTED ASSETS TO AVERAGE MANAGED ASSETS
Average Reported Assets	$	182,181		$	174,218		$	184,215		$	190,927		$	185,673			5			(2	)	$	178,188		$	178,163			—
Average Credit Card Securitizations		33,026			33,357			33,445			32,497			31,665			(1	)		4			33,191			31,749			5
Average Managed Assets	$	215,207		$	207,575		$	217,660		$	223,424		$	217,338			4			(1	)	$	211,379		$	209,912			1

Page 18

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

														2QTR 2004											YTD 2004
	2QTR		1QTR			4QTR			3QTR			2QTR		Change						Year-to-date					Change
	2004		2004			2003			2003			2003		1Q 2004			2Q 2003			2004			2003		2003
CHASE FINANCIAL SERVICES’ BUSINESSES
CHASE HOME FINANCE:
Operating Revenue:
Operating Revenue (Excl. MSR Risk Management Revenue) (a)	$	925	$	819		$	950		$	687		$	1,099		13	%		(16	)%	$	1,744		$	2,160		(19	)%
MSR Risk Management Revenue (a)		40		(7	)		(83	)		(6	)		233		NM			(83	)		33			319		(90	)
Total	$	965	$	812		$	867		$	681		$	1,332		19			(28	)	$	1,777		$	2,479		(28	)
Operating Expense		424		478			484			444			400		(11	)		6			902			781		15
Operating Earnings		321		221			238			118			561		45			(43	)		542			985		(45	)
CHASE CARDMEMBER SERVICES — REPORTED:
Revenue	$	1,106	$	1,090		$	1,158		$	1,099		$	1,032		1			7		$	2,196		$	2,036		8
Expense		570		605			561			557			543		(6	)		5			1,175			1,082		9
Provision for Credit Losses		263		232			330			234			232		13			13			495			470		5
Net Income		176		162			172			198			165		9			7			338			311		9
CHASE CARDMEMBER SERVICES — OPERATING: (b)
Revenue	$	1,592	$	1,563		$	1,620		$	1,570		$	1,512		2			5		$	3,155		$	2,973		6
Expense		570		605			561			557			543		(6	)		5			1,175			1,082		9
Credit Costs		749		705			792			705			712		6			5			1,454			1,407		3
Earnings		176		162			172			198			165		9			7			338			311		9
CHASE AUTO FINANCE:
Operating Revenue	$	218	$	166		$	207		$	216		$	221		31			(1	)	$	384		$	419		(8	)
Operating Expense		80		80			77			74			73		—			10			160			141		13
Operating Earnings		72		30			53			49			67		140			7			102			104		(2	)
CHASE REGIONAL BANKING:
Operating Revenue	$	654	$	635		$	653		$	636		$	656		3			—		$	1,289		$	1,287		—
Operating Expense		619		635			646			581			585		(3	)		6			1,254			1,162		8
Operating Earnings (Loss)		10		(15	)		(6	)		11			34		NM			(71	)		(5	)		61		NM
CHASE MIDDLE MARKET:
Operating Revenue	$	357	$	344		$	359		$	362		$	353		4			1		$	701		$	715		(2	)
Operating Expense		213		218			210			229			222		(2	)		(4	)		431			438		(2	)
Operating Earnings		73		81			92			66			78		(10	)		(6	)		154			165		(7	)

(a)	MSR represents Mortgage Servicing Rights.
(b)	See page 9 for a reconciliation of JPMorgan Chase’s results on a reported basis to the operating basis.

Page 19

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

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
Chase Home Finance
Origination Volume by Channel: Retail, Wholesale and Correspondent	$	44.4		$	30.1		$	37.0		$	67.9		$	55.1			48	%		(19	)%	$	74.5		$	96.0			(22)	%
Correspondent Negotiated Transactions		12.4			7.7			14.0			25.8			22.5			61			(45	)		20.1			43.6			(54	)
Total		56.8			37.8			51.0			93.7			77.6			50			(27	)		94.6			139.6			(32	)
Origination Volume by Product: First Mortgage		47.0			31.1			43.7			86.3			71.8			51			(35	)		78.1			129.6			(40	)
Home Equity		9.8			6.7			7.3			7.4			5.8			46			69			16.5			10.0			65
Total		56.8			37.8			51.0			93.7			77.6			50			(27	)		94.6			139.6			(32	)
Loans Serviced		493			475			470			455			437			4			13			493			437			13
End-of-Period Outstandings		83.2			75.0			73.7			85.8			74.5			11			12			83.2			74.5			12
Total Average Loans Owned		79.2			72.1			79.4			80.6			71.2			10			11			75.6			67.1			13
Number of Customers (in millions)		4.2			4.1			4.1			4.0			3.9			2			8			4.2			3.9			8
MSR Carrying Value		5.7			4.2			4.8			4.0			3.0			36			90			5.7			3.0			90
30+ Day Delinquency Rate		1.18	%		1.32	%		1.81	%		2.05	%		2.23	%		(14	)bp		(105	)bp		1.18	%		2.23	%		(105	)bp
Net Charge-Off Ratio		0.14			0.16			0.19			0.15			0.18			(2	)		(4	)		0.15			0.19			(4	)
Overhead Ratio		44			59			56			65			30			(1,500	)		1,400			51			32			1,900
Chase Cardmember Services — Reported Basis
Average Outstandings	$	17.3		$	17.2		$	16.6		$	17.3		$	18.1			1	%		(4	)%	$	17.2		$	18.5			(7)	%
30+ Day Delinquency Rate		3.07	%		3.18	%		3.34	%		3.33	%		3.20	%		(11	)bp		(13	)bp		3.07	%		3.20	%		(13	)bp
Net Charge-Off Ratio		6.05			6.33			6.68			6.28			6.25			(28	)		(20	)		6.19			6.21			(2	)
Overhead Ratio		52			56			48			51			53			(400	)		(100	)		54			53			100
Chase Cardmember Services — Managed Basis
End-of-Period Outstandings	$	51.3		$	51.0		$	52.3		$	50.9		$	51.0			1	%		1	%	$	51.3		$	51.0			1	%
Average Outstandings		51.3			51.6			51.1			50.9			50.7			(1	)		1			51.5			50.8			1
Total Volume (a)		24.1			22.0			23.9			22.9			22.2			10			9			46.1			42.9			7
New Accounts (in millions)		1.0			1.0			1.0			1.1			1.0			—			—			2.0			2.1			(5	)
Active Accounts (in millions)		16.4			16.5			16.5			16.3			16.4			(1	)		—			16.4			16.4			—
Total Accounts (in millions)		31.0			30.8			30.8			30.6			30.3			1			2			31.0			30.3			2
Credit Cards Issued		35.7			35.4			35.3			34.8			34.3			1			4			35.7			34.3			4
30+ Day Delinquency Rate		4.27	%		4.43	%		4.68	%		4.62	%		4.40	%		(16	)bp		(13	)bp		4.27	%		4.40	%		(13	)bp
Net Charge-Off Ratio		5.84			5.80			5.76			5.83			6.02			4			(18	)		5.82			5.99			(17	)
Overhead Ratio		36			39			35			35			36			(300	)		—			37			36			100
Chase Auto Finance
Loan and Lease Receivables	$	43.5		$	44.0		$	43.2		$	42.8		$	41.7			(1	)%		4	%	$	43.5		$	41.7			4	%
Average Loan and Lease Receivables		44.1			44.3			43.5			42.1			41.7			—			6			44.2			40.7			9
Automobile Origination Volume (b)		5.4			6.8			5.5			7.0			7.9			(21	)		(32	)		12.2			15.3			(20	)
Automobile Market Share (Year-to-Date)		5.6	%		6.1	%		6.1	%		6.6	%		6.8	%		(50	)bp		(120	)bp		5.6	%(d)		6.8	%		(120	)bp
30+ Day Delinquency Rate		1.06			1.10			1.46			1.16			1.14			(4	)		(8	)		1.06			1.14			(8	)
Net Charge-Off Ratio		0.28			0.36			0.39			0.41			0.37			(8	)		(9	)		0.32			0.42			(10	)
Overhead Ratio		37			48			37			34			33			(1,100	)		400			42			34			800
Chase Regional Banking
Total Average Deposits	$	81.9		$	79.9		$	77.1		$	76.0		$	74.5			3	%		10	%	$	80.9		$	73.6			10	%
Total Client Assets (c)		117.9			118.4			111.1			109.5			108.1			—			9			118.2			107.0			10
Number of Branches / Banking Centers		536			532			529			528			527			1			2			536			527			2
Number of ATMs		1,711			1,718			1,730			1,740			1,735			—			(1	)		1,711			1,735			(1	)
Overhead Ratio		95	%		100	%		99	%		91	%		89	%		(500	)bp		600	bp		97	%		90	%		700	bp
Chase Middle Market
Total Average Loans	$	14.7		$	13.8		$	13.5		$	14.3		$	14.3			7	%		3	%	$	14.3		$	14.3			—	%
Total Average Deposits		33.0			31.6			28.9			29.1			27.2			4			21			32.3			27.9			16
Nonperforming Average Loans as a % of Total Average Loans		1.03	%		0.91	%		1.00	%		1.12	%		1.24	%		12	bp		(21	)bp		0.97	%		1.32	%		(35	)bp
Net Charge-Off Ratio		0.81			(0.03	)		0.16			0.61			0.40			NM			41			0.41			0.58			(17	)
Overhead Ratio		60			63			58			63			63			(300	)		(300	)		61			61			—

(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).

Page 20

CREDIT-RELATED INFORMATION

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

											Jun 30, 2004
											Change
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
	2004		2004		2003		2003		2003		2004			2003
CREDIT EXPOSURE
Commercial Loans:
Loans — U.S.	$	47,747	$	47,273	$	52,024	$	58,082	$	55,693		1	%		(14	)%
Loans — Non-U.S.		31,492		31,942		31,073		30,326		35,363		(1	)		(11	)
Total Commercial Loans — Reported		79,239		79,215		83,097		88,408		91,056		—			(13	)
Consumer Loans:
1-4 Family Residential Mortgages — First Liens		59,188		54,284		54,460		68,873		57,593		9			3
Home Equity		25,146		21,617		19,252		16,981		17,327		16			45
1-4 Family Residential Mortgages		84,334		75,901		73,712		85,854		74,920		11			13
Credit Card — Reported		16,462		15,975		16,793		16,015		16,578		3			(1	)
Automobile Financings		39,456		39,118		38,695		38,867		38,151		1			3
Other Consumer		6,447		7,421		7,221		7,057		6,689		(13	)		(4	)
Total Consumer Loans — Reported		146,699		138,415		136,421		147,793		136,338		6			8
Total Loans — Reported		225,938		217,630		219,518		236,201		227,394		4			(1	)
Credit Card Securitizations		34,138		34,478		34,856		34,315		33,789		(1	)		1
Total Loans — Managed		260,076		252,108		254,374		270,516		261,183		3			—
Derivative Receivables (a)		49,980		58,434		83,751		83,787		93,602		(14	)		(47	)
Other Receivables		108		108		108		108		108		—			—
Commercial Lending-Related Commitments (b)		215,636		218,287		215,758		209,042		229,119		(1	)		(6	)
TOTAL (c)	$	525,800	$	528,937	$	553,991	$	563,453	$	584,012		(1	)		(10	)
Memo: Total by Category Total Commercial Exposure (d)	$	344,963	$	356,044	$	382,714	$	381,345	$	413,885		(3	)		(17	)
Total Consumer Managed Loans (c) (e)		180,837		172,893		171,277		182,108		170,127		5			6
Total	$	525,800	$	528,937	$	553,991	$	563,453	$	584,012		(1	)		(10	)

(a)	Effective January 1, 2004, derivative receivables Credit exposure takes into account net cash received under credit support annexes to legally enforceable master netting agreements.
(b)	Includes unused advised lines of credit of $21 billion at June 30, 2004.
(c)	Excludes consumer lending-related commitments.
(d)	Represents Total Commercial Loans, Derivative Receivables, Other Receivables and Commercial Lending-Related Commitments.
(e)	Represents Total Consumer Loans plus Credit Card Securitizations.

Page 21

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

																					Jun 30, 2004
																					Change
	Jun 30				Mar 31				Dec 31				Sep 30				Jun 30				Mar 31			Jun 30
	2004				2004				2003				2003				2003				2004			2003
COMMERCIAL CREDIT EXPOSURE
Total Commercial Loans	$	79,239			$	79,215			$	83,097			$	88,408			$	91,056				—	%		(13	)%
Derivative Receivables		49,980				58,434				83,751				83,787				93,602				(14	)		(47	)
Other Receivables		108				108				108				108				108				—			—
Commercial Lending-Related Commitments		215,636				218,287				215,758				209,042				229,119				(1	)		(6	)
Credit Exposure (a)	$	344,963	100	%	$	356,044	100	%	$	382,714	100	%	$	381,345	100	%	$	413,885	100	%		(3	)		(17	)
Risk Profile of Credit Exposure:
Investment-Grade	$	285,302	83	%	$	293,458	82	%	$	316,053	83	%	$	316,523	83	%	$	345,330	83	%		(3	)		(17	)
Noninvestment-Grade:
Noncriticized		53,304	15	%		54,868	15	%		57,782	15	%		53,457	14	%		55,711	14	%		(3	)		(4	)
Criticized Performing		4,163	1	%		5,224	2	%		6,457	1	%		8,240	2	%		9,479	2	%		(20	)		(56	)
Criticized Nonperforming		1,820	1	%		2,163	1	%		2,400	1	%		3,104	1	%		3,364	1	%		(16	)		(46	)
Purchased Held for Sale Commercial Loans (b)		374	0	%		331	0	%		22	0	%		21	0	%		1	0	%		13			NM

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 Noncriticized: BB+ / Ba1 to B- / B3
	Criticized: CCC+ / Caa1 & below
(a)	Credit exposure is net of risk participations, and effective January 1, 2004, the Firm elected to net cash paid and received under credit support annexes to legally enforceable master netting agreements. Credit exposure does not reflect the benefit of credit derivative hedges or, prior to January 1, 2004, liquid collateral held against derivatives contracts.
(b)	Represents distressed commercial loans purchased as part of the IB’s proprietary investing activities.

Page 22

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

																Jun 30, 2004
																Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2004			2004			2003			2003			2003			2004			2003
NONPERFORMING ASSETS AND RATIOS
Commercial Loans:
Loans — U.S.	$	774		$	976		$	1,092		$	1,465		$	1,827			(21	)%		(58	)%
Loans — Non-U.S.		715			839			947			1,271			1,153			(15	)		(38	)
TOTAL COMMERCIAL LOANS (EXCLUDING PURCHASED HFS LOANS)		1,489			1,815			2,039			2,736			2,980			(18	)		(50	)
Consumer Loans:
1-4 Family Residential Mortgages — First Liens		253			285			291			293			275			(11	)		(8	)
Home Equity		52			59			58			57			55			(12	)		(5	)
Total Residential Loans		305			344			349			350			330			(11	)		(8	)
Credit Card — Reported		9			10			11			13			13			(10	)		(31	)
Automobile Financings		111			107			119			113			111			4			—
Other Consumer		55			58			66			70			66			(5	)		(17	)
TOTAL CONSUMER LOANS		480			519			545			546			520			(8	)		(8	)
TOTAL LOANS (EXCLUDING PURCHASED HFS COMMERCIAL LOANS)		1,969			2,334			2,584			3,282			3,500			(16	)		(44	)
Derivative Receivables		223			240			253			260			276			(7	)		(19	)
Other Receivables		108			108			108			108			108			—			—
Assets Acquired in Loan Satisfactions		182			200			216			203			227			(9	)		(20	)
TOTAL NONPERFORMING ASSETS (EXCLUDING PURCHASED HFS COMMERCIAL LOANS)	$	2,482		$	2,882		$	3,161		$	3,853		$	4,111			(14	)		(40	)
PURCHASED HELD FOR SALE COMMERCIAL LOANS(a)	$	374		$	331		$	22		$	21		$	1			13			NM
TOTAL NONPERFORMING ASSETS (EXCLUDING PURCHASED HFS COMMERCIAL LOANS) TO TOTAL ASSETS		0.30	%		0.36	%		0.41	%		0.49	%		0.51	%		(6	)bp		(21	)bp
PAST DUE 90 DAYS AND OVER AND ACCRUING
Commercial Loans:
Loans — U.S.	$	7		$	56		$	41		$	35		$	35			(88	)%		(80	)%
Loans — Non-U.S.		5			26			5			2			—			(81	)		NM
TOTAL COMMERCIAL LOANS — REPORTED		12			82			46			37			35			(85	)		(66	)
Consumer Loans:
1-4 Family Residential Mortgages — First Liens		—			—			—			—			—			NM			NM
Home Equity		—			—			—			—			—			NM			NM
Total Residential Loans		—			—			—			—			—			NM			NM
Credit Card — Reported		214			230			248			229			229			(7	)		(7	)
Automobile Financings		—			—			—			—			—			NM			NM
Other Consumer		19			19			21			21			21			—			(10	)
TOTAL CONSUMER LOANS — REPORTED		233			249			269			250			250			(6	)		(7	)
TOTAL LOANS — REPORTED		245			331			315			287			285			(26	)		(14	)
Credit Card Securitizations		766			854			879			814			792			(10	)		(3	)
TOTAL LOANS — MANAGED		1,011			1,185			1,194			1,101			1,077			(15	)		(6	)
Derivative Receivables		—			—			—			—			—			NM			NM
TOTAL CREDIT PORTFOLIO	$	1,011		$	1,185		$	1,194		$	1,101		$	1,077			(15	)		(6	)

(a) Represents distressed commercial loans purchased as part of the IB’s proprietary investing activities.

Page 23

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

(in millions, except rates)

																2QTR 2004											YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date					Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003		2003
NET CHARGE-OFFS
Commercial Loans:
Loans — U.S.	$	106		$	11		$	1		$	194		$	185			NM			(43	)%	$	117		$	303		(61	)%
Loans — Non-U.S.		(34	)		91			7			65			72			NM			NM			57			246		(77	)
Total Commercial Loans — Reported		72			102			8			259			257			(29	)%		(72	)		174			549		(68	)
Consumer Loans:
1-4 Family Residential Mortgages — First Liens		4			2			9			4			5			100			(20	)		6			10		(40	)
Home Equity		2			3			1			1			6			(33	)		(67	)		5			8		(38	)
Total Residential Loans		6			5			10			5			11			20			(45	)		11			18		(39	)
Credit Card — Reported		247			257			266			263			268			(4	)		(8	)		504			543		(7	)
Automobile Financings		31			40			43			43			39			(23	)		(21	)		71			85		(16	)
Other Consumer		36			40			47			44			39			(10	)		(8	)		76			89		(15	)
Total Consumer Loans — Reported		320			342			366			355			357			(6	)		(10	)		662			735		(10	)
Total Loans — Reported		392			444			374			614			614			(12	)		(36	)		836			1,284		(35	)
Credit Card Securitizations		486			473			462			471			480			3			1			959			937		2
Total Loans — Managed		878			917			836			1,085			1,094			(4	)		(20	)		1,795			2,221		(19	)
Commercial Lending-Related Commitments		—			—			—			—			—			NM			NM			—			—		NM
TOTAL CREDIT PORTFOLIO	$	878		$	917		$	836		$	1,085		$	1,094			(4	)		(20	)	$	1,795		$	2,221		(19	)
NET CHARGE-OFF RATES — ANNUALIZED
Commercial Loans:
Loans — U.S.		0.84	%		0.09	%		0.01	%		1.21	%		1.40	%		75	bp		(56	)bp		0.47	%		1.13		(66	)bp
Loans — Non-U.S.		(0.44	)		1.18			0.09			0.84			0.88			NM			NM			0.37			1.48		(111	)
Total Commercial Loans — Reported		0.35			0.50			0.04			1.09			1.20			(15	)		(85	)		0.43			1.26		(83	)
Consumer Loans:
1-4 Family Residential Mortgages — First Liens		0.03			0.02			0.06			0.02			0.04			1			(1	)		0.02			0.04		(2	)
Home Equity		0.03			0.06			0.02			0.02			0.15			(3	)		(12	)		0.05			0.10		(5	)
Total Residential Loans		0.03			0.03			0.05			0.02			0.06			—			(3	)		0.03			0.05		(2	)
Credit Card — Reported		6.03			6.30			6.66			6.26			6.22			(27	)		(19	)		6.17			6.19		(2	)
Automobile Financings		0.31			0.41			0.43			0.45			0.41			(10	)		(10	)		0.36			0.47		(11	)
Other Consumer		2.05			2.06			2.56			2.53			2.15			(1	)		(10	)		2.05			2.35		(30	)
Total Consumer Loans — Reported		0.90			1.01			1.02			0.98			1.07			(11	)		(17	)		0.95			1.14		(19	)
Total Loans — Reported		0.70			0.82			0.64			1.03			1.12			(12	)		(42	)		0.76			1.19		(43	)
Credit Card Securitizations		5.74			5.53			5.31			5.57			5.90			21			(16	)		5.63			5.85		(22	)
Total Loans — Managed		1.36			1.46			1.25			1.59			1.74			(10	)		(38	)		1.41			1.79		(38	)
Lending-Related Commitments		—			—			—			—			—			—			—			—			—		—
TOTAL CREDIT PORTFOLIO		0.74			0.79			0.69			0.88			0.91			(5	)		(17	)		0.76			0.93		(17	)
Memo: Credit Card — Managed		5.83			5.78			5.74			5.80			6.01			5			(18	)		5.81			5.97		(16	)

Page 24

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

(in millions, except rates)

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
SUMMARY OF CHANGES IN THE ALLOWANCE
LOANS:
Beginning Balance	$	4,120		$	4,523		$	4,753		$	5,087		$	5,215			(9	)%		(21	)%	$	4,523		$	5,350			(15)	%
Net Charge-Offs		(392	)		(444	)		(374	)		(614	)		(614	)		12			36			(836	)		(1,284	)		35
Provision for Loan Losses		240			42			144			278			487			471			(51	)		282			1,157			(76	)
Other		(1	)		(1	)		—			2			(1	)		—			—			(2	)		(136	)		99
Ending Balance	$	3,967		$	4,120		$	4,523		$	4,753		$	5,087			(4	)		(22	)	$	3,967		$	5,087			(22	)
LENDING-RELATED COMMITMENTS:
Beginning Balance	$	297		$	324		$	329		$	384		$	436			(8	)		(32	)	$	324		$	363			(11	)
Net Charge-Offs		—			—			—			—			—			NM			NM			—			—			NM
Provision for Lending-Related Commitments		(37	)		(27	)		(5	)		(55	)		(52	)		(37	)		29			(64	)		21			NM
Other		—			—			—			—			—			NM			NM			—			—			NM
Ending Balance	$	260		$	297		$	324		$	329		$	384			(12	)		(32	)	$	260		$	384			(32	)
ALLOWANCE COMPONENTS AND RATIOS
LOANS:
Commercial — Specific	$	549		$	716		$	917		$	1,096		$	1,371			(23	)		(60	)
Commercial — Expected		452			411			454			481			548			10			(18	)
Total Commercial		1,001			1,127			1,371			1,577			1,919			(11	)		(48	)
Consumer Expected		2,180			2,177			2,257			2,234			2,226			—			(2	)
Total Specific and Expected		3,181			3,304			3,628			3,811			4,145			(4	)		(23	)
Residual Component		786			816			895			942			942			(4	)		(17	)
Total Allowance for Loan Losses	$	3,967		$	4,120		$	4,523		$	4,753		$	5,087			(4	)		(22	)
LENDING-RELATED COMMITMENTS:
Commercial — Specific	$	114		$	146		$	172		$	187		$	252			(22	)		(55	)
Commercial — Expected		99			104			105			95			85			(5	)		16
Total Specific and Expected		213			250			277			282			337			(15	)		(37	)
Residual Component		47			47			47			47			47			—			—
Total Allowance for Lending-Related Commitments	$	260		$	297		$	324		$	329		$	384			(12	)		(32	)
Total Allowance for Credit Losses	$	4,227		$	4,417		$	4,847		$	5,082		$	5,471			(4	)		(23	)
Allowance for Loan Losses to Total Loans (a)		1.76	%		1.90	%		2.06	%		2.01	%		2.24	%		(14	)bp		(48	)bp
Allowance for Loan Losses to Total Nonperforming Loans(a)		201			177			175			145			145			2,400			5,600
Allowance for Loan Losses to Total Nonperforming Assets (a)		160			143			143			123			124			1,700			3,600
CREDIT COSTS
Loans:
Commercial	$	(53	)	$	(141	)	$	(197	)	$	(85	)	$	58			62	%		NM		$	(194	)	$	252			NM
Consumer		323			262			388			363			329			23			(2	)%		585			740			(21	)%
Total Specific and Expected		270			121			191			278			387			123			(30	)		391			992			(61	)
Residual Component		(30	)		(79	)		(47	)		—			100			62			NM			(109	)		165			NM
Total Provision for Loan Losses		240			42			144			278			487			471			(51	)		282			1,157			(76	)
Lending-Related Commitments:
Commercial		(37	)		(27	)		(5	)		(55	)		(52	)		(37	)		29			(64	)		13			NM
Residual Component		—			—			—			—			—			NM			NM			—			8			NM
Total Provision for Lending-Related Commitments		(37	)		(27	)		(5	)		(55	)		(52	)		(37	)		29			(64	)		21			NM
Provision for Credit Losses		203			15			139			223			435			NM			(53	)		218			1,178			(81	)
Securitized Credit Losses		486			473			462			471			480			3			1			959			937			2
Total Managed Credit Costs	$	689		$	488		$	601		$	694		$	915			41			(25	)	$	1,177		$	2,115			(44	)

(a) Excludes purchased held for sale commercial loans.

Page 25

SUPPLEMENTAL DETAIL

J.P. MORGAN CHASE & CO.
CAPITAL

																2QTR 2004												YTD 2004
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
AVAILABLE VERSUS REQUIRED AVERAGE CAPITAL
(in billions)
Common Stockholders’ Equity	$	46.9		$	45.8		$	44.2		$	43.1		$	42.8			2	%		10	%	$	46.3		$	42.3			9	%
Economic Risk Capital
Credit Risk		8.2	(a)		9.5			10.6			12.6			14.4			(14	)		(43	)		8.9	(a)		14.7			(39	)
Market Risk		5.8	(a)		5.6			4.7			5.0			4.3			4			35			5.7	(a)		4.3			33
Operational Risk		3.2	(a)		3.4			3.5			3.4			3.5			(6	)		(9	)		3.3	(a)		3.5			(6	)
Business Risk		1.7	(a)		1.7			1.7			1.7			1.7			—			—			1.7	(a)		1.7			—
Private Equity Risk		4.2	(a)		4.6			5.2			5.4			5.4			(9	)		(22	)		4.3	(a)		5.4			(20	)
Economic Risk Capital		23.1	(a)		24.8			25.7			28.1			29.3			(7	)		(21	)		23.9	(a)		29.6			(19	)
Goodwill / Intangibles		9.6	(a)		9.5			9.1			8.8			8.9			1			8			9.5	(a)		8.9			7
Asset Capital Tax		4.1	(a)		3.9			4.0			4.1			3.9			5			5			4.0	(a)		4.0			—
Capital Against Nonrisk Factors		13.7	(a)		13.4			13.1			12.9			12.8			2			7			13.5	(a)		12.9			5
Total Capital Allocated to Business Activities		36.8	(a)		38.2			38.8			41.0			42.1			(4	)		(13	)		37.4			42.5			(12	)
Diversification Effect		(5.1	)(a)		(5.3	)		(5.1	)		(5.3	)		(5.0	)		(4	)		2			(5.2	)(a)		(5.1	)		(2	)
Total Required Internal Capital		31.7	(a)		32.9			33.7			35.7			37.1			(4	)		(15	)		32.2	(a)		37.4			(14	)
Firm Capital in Excess of Required Capital	$	15.2	(a)	$	12.9		$	10.5		$	7.4		$	5.7			18			167		$	14.1	(a)	$	4.9			188
COMMON SHARES OUTSTANDING
(in millions)
Basic Weighted-Average Shares Outstanding		2,042.8			2,032.3			2,016.2			2,012.2			2,005.6			1			2			2,037.6			2,002.8			2
Diluted Weighted-Average Shares Outstanding		2,099.6			2,092.7			2,079.3			2,068.2			2,050.6			—			2			2,096.3			2,036.3			3
Common Shares Outstanding — at Period-End		2,087.5			2,081.7			2,042.6			2,039.2			2,035.1			—			3
CASH DIVIDENDS DECLARED PER SHARE	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34			—			—		$	0.68		$	0.68			—
BOOK VALUE PER SHARE		21.52			22.62			22.10			21.55			21.53			(5	)		—
SHARE PRICE
High	$	42.57		$	43.84		$	36.99		$	38.26		$	36.52			(3	)		17		$	43.84		$	36.52			20
Low		34.62			36.30			34.45			32.40			23.75			(5	)		46			34.62			20.13			72
Close		38.77			41.95			36.73			34.33			34.18			(8	)		13
CAPITAL RATIOS
(in millions, except ratios)
Tier 1 Capital		43,537	(a)	$	44,686		$	43,167		$	42,533		$	41,115			(3	)		6
Total Capital		59,357	(a)		60,898			59,816			59,455			58,848	(b)		(3	)		1
Risk-Weighted Assets		530,180	(a)		534,971			507,456			490,590			491,500			(1	)		8
Adjusted Average Assets		790,390	(a)		758,260			765,910			770,707			751,376			4			5
Tier 1 Capital Ratio		8.2%	(a)		8.4	%		8.5	%		8.7	%		8.4	%(b)		(20	)bp		(20	)bp
Total Capital Ratio		11.2	(a)		11.4			11.8			12.1			12.0	(b)		(20	)		(80	)
Tier 1 Leverage Ratio		5.5	(a)		5.9			5.6			5.5			5.5			(40	)		—

(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 26

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

																2QTR 2004												YTD 2004
(in millions)	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2004			2004			2003			2003			2003			1Q 2004			2Q 2003			2004			2003			2003
IB Trading Portfolio:
Interest Rate	$	89.7		$	84.0		$	75.8		$	65.8		$	60.5			7	%		48	%	$	86.9		$	57.1			52	%
Foreign Exchange		16.3			22.2			20.3			14.8			15.2			(27	)		7			19.2			16.2			19
Equities		28.6			40.6			40.9			12.0			9.2			(30	)		211			34.5			10.1			242
Commodities		2.8			2.5			2.7			3.5			3.1			12			(10	)		2.6			2.7			(4	)
Hedge Fund Investment		5.2			5.7			5.4			5.9			4.5			(9	)		16			5.5			4.0			38
Less: Portfolio Diversification		(41.3	)		(49.5	)		(50.6	)		(33.5	)		(34.3	)		(17	)		20			(45.4	)		(34.2	)		(33	)
Total Investment Bank Trading VAR	$	101.3		$	105.5		$	94.5		$	68.5		$	58.2			(4	)		74		$	103.3		$	55.9			85

Page 27

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

Assets Under Management:Represent assets 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 43% 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.

Average Tangible Allocated Capital:Average allocated capital less the average capital allocated for goodwill.

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:Financial Accounting Standards Board Interpretation No. 46, “Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin No. 51.”

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

NM:Not meaningful

Operating (Managed) Basis or Operating Earnings:In addition to analyzing the Firm’s results on a reported basis, management looks at results on an “operating basis”, which is a non-GAAP measure. The definition of operating basis starts with the reported U.S. GAAP results. In the case of the Investment Bank, the operating basis includes the reclassification of net interest income related to trading activities to Trading Revenue. In the case of Chase Financial Services and Chase Cardmember Services, “operating” or “managed” basis excludes the impact of credit card securitizations. Operating basis excludes the Litigation Reserve and Merger Costs, as management believes these items are not part of the Firm’s normal daily business operations and, therefore, not indicative of trends, and also do not provide meaningful comparisons with other periods.

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:Noninterest expense as a percentage of revenue before provision for credit losses.

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.

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

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, and have not been subjected to auditing procedures sufficient to permit an independent certified public accountant to express an opinion.

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

Page 28