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

Exhibit 99.3

FINANCIAL INFORMATION

SECOND QUARTER 2004

Consolidated Earnings	Page
Summary Earnings Information	2
Select Financial Information
Reported Basis	3
Managed Basis	4
Reconciliation of Consolidated Reported and Managed Data	5
Consolidated Statements of Income	7
Line of Business Information
Retail	9
Commercial Banking	12
Card Services
Reported Basis	15
Managed Basis	17
Reconciliation of Reported and Managed Data	19
Investment Management Group	21
Corporate	24
Consolidated Balance Sheet
Consolidated Balance Sheets	26
Credit Quality Statistics	27
Capital and Intangible Assets	29
Consolidated Average Balance Sheet, Yields & Rates
Reported Basis	30
Managed Basis	34
Other Items
Definitions	38

NOTES:

Refer to the 2003 Annual Report for definitions and methodologies. Line of business information is provided for analytical purposes and is based on management information systems, assumptions and methodologies that are under continual review.

1

Summary Earnings Information

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
NET INCOME by LOB($ millions)
Retail	$	485		$	482		$	398		$	392		$	373		$	3			1	%	$	112			30	%
Commercial Banking		420			425			376			363			252			(5	)		(1	)		168			67
Card Services		389			319			347			285			279			70			22			110			39
Investment Management Group		110			133			105			91			76			(23	)		(17	)		34			45
Corporate		(285	)		(127	)		(633	)		(257	)		(133	)		(158	)		N/M			(152	)		N/M
Income from continuing operations		1,119			1,232			593			874			847			(113	)		(9	)		272			32
Discontinued Operations
Income from discontinued operations		(5	)		1			604			14			14			(6	)		N/M			(19	)		N/M
Applicable income taxes		(1	)		—			219			5			5			(1	)		N/M			(6	)		N/M
Income from discontinued operations		(4	)		1			385			9			9			(5	)		N/M			(13	)		N/M
Net Income	$	1,115		$	1,233		$	978		$	883		$	856		$	(118	)		(10	)	$	259			30
Retail		43.3	%		39.1	%		67.1	%		44.9	%		44.0	%		4.2	%					(0.7	)%
Commercial Banking		37.5			34.5			63.4			41.5			29.8			3.0						7.7
Card Services		34.8			25.9			58.5			32.6			32.9			8.9						1.9
Investment Management Group		9.8			10.8			17.7			10.4			9.0			(1.0	)					0.8
Corporate		(25.4	)		(10.3	)		(106.7	)		(29.4	)		(15.7	)		(15.1	)					(9.7	)
Income from continuing operations		100.0			100.0			100.0			100.0			100.0
CAPITAL RATIOS
Tier 1 capital		10.0	%		10.2	%		10.0	%		9.8	%		9.7	%		(0.2	)%					0.3	%
Total capital		13.5			13.8			13.7			13.5			13.6			(0.3	)					(0.1	)
Leverage		8.5			8.1			8.8			8.4			8.7			0.4						(0.2	)
COMMON STOCK DATA
Average shares outstanding(millions)
Basic shares		1,111			1,115			1,109			1,115			1,132			(4	)		0	%		(21	)		(2	)%
Diluted shares		1,128			1,135			1,122			1,124			1,140			(7	)		(1	)		(12	)		(1	)
Basic earnings per share
Income from continuing operations	$	1.00		$	1.11		$	0.53		$	0.78		$	0.75		$	(0.11	)		(10	)	$	0.25			33
Income from discontinued operations		—			—			0.35			0.01			0.01			—			N/M			(0.01	)		N/M
Net Income	$	1.00		$	1.11		$	0.88		$	0.79		$	0.76		$	(0.11	)		(10	)	$	0.24			32
															��
Diluted earnings per share
Income from continuing operations	$	0.99		$	1.09		$	0.53		$	0.78		$	0.74		$	(0.10	)		(9	)	$	0.25			34
Income from discontinued operations		—			—			0.34			0.01			0.01			—			N/M			(0.01	)		N/M
Net Income	$	0.99		$	1.09		$	0.87		$	0.79		$	0.75		$	(0.10	)		(9	)	$	0.24			32
Cash dividends declared		0.45			0.45			0.25			0.25			0.21			0.00			—			0.24			N/M
Book value per share		21.67			21.86			20.92			20.05			19.70			(0.19	)		(1	)		1.97			10
Stock price, quarter-end		51.00			54.52			45.59			38.65			37.18			(3.52	)		(6	)		13.82			37
Headcount		70,993			71,039			71,196			71,240			72,323			(46	)		—			(1,330	)		(2	)

2

Select Financial Information — Reported Basis

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
INCOME STATEMENT DATA($ millions)
Total revenue, net of interest expense	$	4,392		$	4,565		$	4,113		$	4,084		$	4,072		$	(173	)		(4	)%	$	320			8	%
Net interest income — fully taxable-equivalent (“FTE”) basis (1)		2,186			2,249			2,154			2,127			2,009			(63	)		(3	)		177			9
Noninterest income		2,251			2,361			2,004			1,998			2,102			(110	)		(5	)		149			7
Total revenue, net of interest expense (“FTE”)		4,437			4,610			4,158			4,125			4,111			(173	)		(4	)		326			8
Provision for credit losses		49			141			672			416			461			(92	)		(65	)		(412	)		(89	)
Noninterest expense		2,744			2,663			2,656			2,421			2,403			81			3			341			14
Income from continuing operations		1,119			1,232			593			874			847			(113	)		(9	)		272			32
Discontinued Operations
Income from discontinued operations		(5	)		1			604			14			14			(6	)		N/M			(19	)		N/M
Applicable income taxes		(1	)		—			219			5			5			(1	)		N/M			(6	)		N/M
Income from discontinued operations		(4	)		1			385			9			9			(5	)		N/M			(13	)		N/M
Net Income	$	1,115		$	1,233		$	978		$	883		$	856		$	(118	)	$	(10	)	$	259		$	30
BALANCE SHEET DATA — ENDING BALANCES($ millions)
Loans	$	135,034		$	137,529		$	138,147		$	141,710		$	144,583			(2,495	)		(2	)%		(9,549	)		(7	)
Total assets		299,303			319,590			326,563			290,473			299,999			(20,287	)		(6	)		(696	)		—
Deposits		164,475			165,940			164,621			163,411			172,015			(1,465	)		(1	)		(7,540	)		(4	)
Long-term debt (2)		42,483			45,312			46,764			44,225			46,070			(2,829	)		(6	)		(3,587	)		(8	)
Common stockholders’ equity		24,156			24,598			23,419			22,411			22,257			(442	)		(2	)		1,899			9
Total stockholders’ equity		24,156			24,598			23,419			22,411			22,257			(442	)		(2	)		1,899			9
CREDIT QUALITY
Net charge-offs to average loans		0.65	%		0.78	%		3.11	%		1.50	%		1.35	%		(0.13	)%					(0.70	)%
Total net charge-offs($ millions)	$	224		$	272		$	1,084		$	540		$	489		$	(48	)		(18	)%	$	(265	)		(54	)%
Allowance for loan losses to period-end loans		2.46			2.63			2.75			2.98			2.95			(0.17	)					(0.49	)
Allowance for credit losses to period end-loans (3)		2.86			3.03			3.14			3.34			3.35			(0.17	)					(0.49	)
Nonperforming assets to related assets (4)		1.15			1.42			1.73			2.06			2.28			(0.27	)					(1.13	)
FINANCIAL PERFORMANCE
Return on average assets		1.47	%		1.56	%		1.38	%		1.23	%		1.24	%		(0.09	)%					0.23	%
Return on average common equity		18.7			20.5			16.8			15.8			15.3			(1.8	)					3.4
Net interest margin		3.30			3.25			3.50			3.45			3.37			0.05						(0.07	)
Efficiency ratio		61.8			57.8			63.9			58.7			58.5			4.0						3.3

NOTES:

(1)	Net interest income-FTE includes taxable equivalent adjustments of $45 million, $45 million, $45 million, $41 million, and $39 million for the quarters ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. Net interest income is presented rather than gross interest income and gross interest expense because the Corporation relies primarily on net interest income to assess performance.
(2)	Includes trust preferred capital securities.
(3)	The allowance for credit losses includes the allowance for loan losses of $3,123 million, $3,323 million, $3,472 million, $3,907 million, and $3,962 million and reserve for unfunded lending commitments and standby letters of credit which is included in other liabilities of $508 million, $508 million, $490 million, $467 million, and $536 million, each for the periods ending June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively.
(4)	Related assets consist of loans outstanding, including loans held for sale and other real estate owned.

3

Select Financial Information — Managed Basis

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
MANAGED FINANCIAL DATA($ millions)
Total managed revenue, net of interest expense	$	5,280		$	5,433		$	4,973		$	4,857		$	4,842		$	(153	)		(3	)%	$	438			9	%
Managed net interest income — fully taxable-equivalent (“FTE”) basis (1)(2)		3,462			3,523			3,429			3,318			3,165			(61	)		(2	)		297			9
Managed noninterest income (2)		1,863			1,955			1,589			1,580			1,716			(92	)		(5	)		147			9
Total managed revenue, net of interest expense (“FTE”)		5,325			5,478			5,018			4,898			4,881			(153	)		(3	)		444			9
Managed provision for credit losses		937			1,009			1,532			1,189			1,230			(72	)		(7	)		(293	)		(24	)
Managed noninterest expense		2,744			2,663			2,656			2,421			2,403			81			3			341			14
Managed income from continuing operations		1,119			1,232			593			874			847			(113	)		(9	)		272			32
Discontinued Operations
Income from discontinued operations		(5	)		1			604			14			14			(6	)		N/M			(19	)		N/M
Applicable income taxes		(1	)		—			219			5			5			(1	)		N/M			(6	)		N/M
Income from discontinued operations		(4	)		1			385			9			9			(5	)		N/M			(13	)		N/M
Managed income, net of expense before taxes	$	1,115		$	1,233		$	978		$	883		$	856		$	(118	)		(10	)	$	259			30
Memo: Managed credit card revenue		617			494			613			556			525			123			25			92			18
MANAGED BALANCE SHEET DATA — ENDING BALANCES($ millions)
Managed loans	$	200,825		$	199,283		$	202,440		$	201,758		$	204,829		$	1,542			1	%	$	(4,004	)		(2	)%
Managed total assets		334,917			353,859			363,663			327,236			335,831			(18,942	)		(5	)		(914	)		—
MANAGED CREDIT QUALITY RATIOS
Managed net charge-offs to average loans		2.22	%		2.27	%		3.87	%		2.60	%		2.47	%		(0.05	)%					(0.25	)%
Total managed net charge-offs($ millions)	$	1,112		$	1,140		$	1,944		$	1,313		$	1,258		$	(28	)		(2	)	$	(146	)		(12	)
FINANCIAL PERFORMANCE ON A MANAGED BASIS
Managed net interest margin		4.62	%		4.50	%		4.82	%		4.68	%		4.61	%		0.12	%					0.01	%
Managed efficiency ratio		51.5			48.6			52.9			49.4			49.2			2.9						2.3
MANAGED CAPITAL RATIO
Managed tangible common equity/managed tangible assets		6.4	%		6.2	%		5.7	%		6.0	%		5.9	%		0.2	%					0.5	%

NOTES:

The Corporation evaluates its Card Services line of business trends on a managed basis which assumes that securitized receivables are still on the balance sheet. The Corporation manages its Card Services operations on a managed basis because the receivables that are securitized are subject to underwriting standards comparable to the owned portfolio and are serviced by operating personnel without regard to ownership. The Corporation believes that investors should be informed, and often request information, about the credit performance of the entire managed portfolio in order to understand the quality of the Card Services originations and the related credit risks inherent in the owned portfolio and retained interests in securitizations. In addition, the Corporation funds its Card Services operations, reviews operating results and makes decisions about allocating resources, such as employees and capital on a managed basis. See “Loan Securitizations” on page 73 and Note 11, “Credit Card Securitizations,” of the December 31, 2003 Form 10-K for additional information related to the Corporation’s securitization activity.

(1)

Net interest income-FTE includes taxable equivalent adjustments of $45 million, $45 million, $45 million, $41 million, and $39 million for the quarters ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. Net interest income is presented rather than gross interest income and gross interest expense because the Corporation relies primarily on net interest income to assess performance.

(2)

On a reported basis, income earned on securitized loans is reported in credit card revenue and income earned on seller’s interest is reported in net interest income.

4

Reconciliation of Consolidated Reported and Managed Data

	2004						2003
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr
INCOME STATEMENT DATA($ millions)
Total revenue, net of interest expense
Reported data for the period	$	4,392		$	4,565		$	4,113		$	4,084		$	4,072
Securitization adjustments		888			868			860			773			770
Total managed revenue, net of interest expense		5,280			5,433			4,973			4,857			4,842
Net interest income — FTE
Reported data for the period		2,186			2,249			2,154			2,127			2,009
Securitization adjustments		1,276			1,274			1,275			1,191			1,156
Managed net interest income — FTE		3,462			3,523			3,429			3,318			3,165
Noninterest income
Reported data for the period		2,251			2,361			2,004			1,998			2,102
Securitization adjustments		(388	)		(406	)		(415	)		(418	)		(386	)
Managed noninterest income		1,863			1,955			1,589			1,580			1,716
Total revenue, net of interest expense — FTE
Reported data for the period		4,437			4,610			4,158			4,125			4,111
Securitization adjustments		888			868			860			773			770
Total managed revenue, net of interest expense — FTE		5,325			5,478			5,018			4,898			4,881
Provision for credit losses
Reported data for the period		49			141			672			416			461
Securitization adjustments		888			868			860			773			769
Managed provision for credit losses		937			1,009			1,532			1,189			1,230
Credit card revenue
Reported data for the period		1,005			900			1,028			974			911
Securitization adjustments		(388	)		(406	)		(415	)		(418	)		(386	)
Managed credit card revenue		617			494			613			556			525
BALANCE SHEET — ENDING BALANCES($ millions)
Loans
Reported	$	135,034		$	137,529		$	138,147		$	141,710		$	144,583
Securitization adjustments		65,791			61,754			64,293			60,048			60,246
Managed loans		200,825			199,283			202,440			201,758			204,829
Total assets
Reported		299,303			319,590			326,563			290,473			299,999
Securitization adjustments		35,614			34,269			37,100			36,763			35,832
Managed total assets		334,917			353,859			363,663			327,236			335,831

5

Reconciliation of Consolidated Reported and Managed Data

	2004						2003
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr
BALANCE SHEET — AVERAGE BALANCES($ millions)
Investment securities
Reported	$	82,120		$	84,350		$	75,779		$	71,738		$	66,735
Securitization adjustments		(28,236	)		(25,798	)		(23,058	)		(21,255	)		(22,722	)
Managed investment securities		53,884			58,552			52,721			50,483			44,013
Loans
Reported		136,932			138,652			139,741			144,162			144,635
Securitization adjustments		63,137			62,281			61,074			57,858			58,945
Managed loans		200,069			200,933			200,815			202,020			203,580
Other assets
Reported		42,138			42,697			41,089			43,090			41,452
Securitization adjustments		(945	)		(854	)		(705	)		(574	)		(559	)
Managed other assets		41,193			41,843			40,384			42,516			40,893
Total assets
Reported		305,144			317,593			281,746			283,676			276,809
Securitization adjustments		33,956			35,629			37,311			36,029			35,664
Managed total assets		339,100			353,222			319,057			319,705			312,473
Other short-term borrowings
Reported		38,917			44,454			10,935			11,216			13,413
Securitization adjustments		33,956			35,629			37,311			36,029			35,664
Managed other short-term borrowings		72,873			80,083			48,246			47,245			49,077
Total liabilities and stockholders’ equity
Reported		305,144			317,593			281,746			283,676			276,809
Securitization adjustments		33,956			35,629			37,311			36,029			35,664
Managed total liabilities and equity		339,100			353,222			319,057			319,705			312,473
CREDIT QUALITY($ millions)
Net charge-offs
Reported data for the period		224			272			1,084			540			489
Securitization adjustments		888			868			860			773			769
Managed net charge-offs		1,112			1,140			1,944			1,313			1,258

NOTES:

The Corporation evaluates its Card Services line of business trends on a managed basis which assumes that securitized receivables have not been sold and are still on the balance sheet. The Corporation manages its Card Services operations on a managed basis because the receivables that are securitized are subject to underwriting standards comparable to the owned portfolio and are serviced by operating personnel without regard to ownership. The Corporation believes that investors should be informed, and often request information, about the credit performance of the entire managed portfolio in order to understand the quality of the Card Services originations and the related credit risks inherent in the owned portfolio and retained interests in securitizations. In addition, the Corporation funds its Card Services operations, reviews operating results and makes decisions about allocating resources, such as employees and capital, on a managed basis. See “Loan Securitizations” on page 73 and Note 11, “Credit Card Securitizations,” of the December 31, 2003 Form 10-K for additional information related to the Corporation’s securitization activity.

6

Consolidated Statements of Income

	2004					2003									Change from
	2nd Qtr			1st Qtr		4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
															Amt			%			Amt			%
INCOME STATEMENT DATA($ millions)
Net Interest Income
Interest income	$	3,173		$	3,297	$	3,172		$	3,172		$	3,130		$	(124	)		(4	)%	$	43			1	%
Interest expense		1,032			1,093		1,063			1,086			1,160			(61	)		(6	)		(128	)		(11	)
Total net interest income		2,141			2,204		2,109			2,086			1,970			(63	)		(3	)		171			9
Noninterest Income
Banking fees and commissions		452			486		456			441			458			(34	)		(7	)		(6	)		(1	)
Credit card revenue		1,005			900		1,028			974			911			105			12			94			10
Service charges on deposits		440			421		432			433			413			19			5			27			7
Fiduciary and investment management fees		182			192		171			164			161			(10	)		(5	)		21			13
Investment securities gains (losses)		(64	)		129		(167	)		68			152			(193	)		N/M			(216	)		N/M
Trading gains (losses)		96			56		23			23			(76	)		40			71			172			N/M
Other income (loss)		140			177		61			(105	)		83			(37	)		(21	)		57			69
Total noninterest income		2,251			2,361		2,004			1,998			2,102			(110	)		(5	)		149			7
Total revenue, net of interest expense		4,392			4,565		4,113			4,084			4,072			(173	)		(4	)		320			8
Provision for credit losses		49			141		672			416			461			(92	)		(65	)		(412	)		(89	)
Noninterest Expense
Salaries and employee benefits		1,303			1,280		1,186			1,193			1,213			23			2			90			7
Occupancy		169			178		174			175			166			(9	)		(5	)		3			2
Equipment		122			117		126			119			117			5			4			5			4
Outside service fees and processing		299			322		315			290			282			(23	)		(7	)		17			6
Marketing and development		319			290		263			253			215			29			10			104			48
Telecommunication		54			55		53			58			54			(1	)		(2	)		—			—
Other intangible amortization		34			33		39			34			32			1			3			2			6
Other expense		444			388		500			299			324			56			14			120			37
Total noninterest expense		2,744			2,663		2,656			2,421			2,403			81			3			341			14
Income from continuing operations		1,599			1,761		785			1,247			1,208			(162	)		(9	)		391			32
Applicable income taxes		480			529		192			373			361			(49	)		(9	)		119			33
Income from continuing operations, net of taxes	$	1,119		$	1,232	$	593		$	874		$	847		$	(113	)		(9	)%	$	272			(32	)%
Discontinued Operations
Income from discontinued operations	$	(5	)	$	1	$	604		$	14		$	14		$	(6	)		N/M		$	(19	)		N/M
Applicable income taxes		(1	)		—		219			5			5			(1	)		N/M			(6	)		N/M
Income from discontinued operations, net of taxes	$	(4	)	$	1	$	385		$	9		$	9		$	(5	)		N/M		$	(13	)		N/M
Net Income	$	1,115		$	1,233	$	978		$	883		$	856		$	(118	)		(10	)%	$	259			30	%
Basic earnings per share
Income from continuing operations, net of taxes	$	1.00		$	1.11	$	0.53		$	0.78		$	0.75		$	(0.11	)		(10	)%	$	0.25			33	%
Income from discontinued operations, net of taxes		—			—		0.35			0.01			0.01			—			N/M			(0.01	)		N/M
Net Income	$	1.00		$	1.11	$	0.88		$	0.79		$	0.76		$	(0.11	)		(10	)%	$	0.24			32	%
Diluted earnings per share
Income from continuing operations, net of taxes	$	0.99		$	1.09	$	0.53		$	0.78		$	0.74		$	(0.10	)		(9	)%	$	0.25			34	%
Income from discontinued operations, net of taxes		—			—		0.34			0.01			0.01			—			N/M			(0.01	)		N/M
Net Income	$	0.99		$	1.09	$	0.87		$	0.79		$	0.75		$	(0.10	)		(9	)%	$	0.24			32	%
Average shares outstanding(millions)
Basic		1,111			1,115		1,109			1,115			1,132			(4	)		0	%		(21	)		(2	)%
Diluted		1,128			1,135		1,122			1,124			1,140			(7	)		(1	)		(12	)		(1	)

7

Consolidated Statement of Income — YTD — Reported Basis

	Six Months Ended
	2004			2003			Change
							Amt			%
INCOME STATEMENT DATA($ millions)
Interest income	$	6,470		$	6,317		$	153			2	%
Interest expense		2,125			2,363			(238	)		(10	)
Total net interest income		4,345			3,954			391			10
Banking fees and commissions		938			898			40			4
Credit card revenue		1,905			1,762			143			8
Service charges on deposits		861			796			65			8
Fiduciary and investment management fees		374			321			53			17
Investment securities gains (losses)		65			221			(156	)		(71	)
Trading gains (losses)		152			(72	)		224			N/M
Other income (loss)		317			135			182			N/M
Total noninterest income		4,612			4,061			551			14
Total revenue, net of interest expense		8,957			8,015			942			12
Provision for credit losses		190			957			(767	)		(80	)
Salaries and employee benefits		2,583			2,386			197			8
Occupancy		347			330			17			5
Equipment		239			228			11			5
Outside service fees and processing		621			548			73			13
Marketing and development		609			441			168			38
Telecommunication		109			102			7			7
Other intangible amortization		67			64			3			5
Other expense		832			601			231			38
Total noninterest expense		5,407			4,700			707			15
Income before income taxes		3,360			2,358			1,002			42
Applicable income taxes		1,009			700			309			44
Income from continuing operations	$	2,351		$	1,658		$	693			42	%
Discontinued Operations
Income from discontinued operations	$	(4	)	$	25		$	(29	)		N/M
Applicable income taxes		(1	)		9			(10	)		N/M
Income from discontinued operations	$	(3	)	$	16		$	(19	)		N/M
Net Income	$	2,348		$	1,674		$	674			40	%
Basic earnings per share
Income from continuing operations	$	2.11		$	1.45		$	0.66			46	%
Income from discontinued operations, net		—			0.01			(0.01	)		N/M
Net Income	$	2.11		$	1.46		$	0.65			45	%
Diluted earnings per share
Income from continuing operations	$	2.08		$	1.44		$	0.64			44	%
Income from discontinued operations, net		—			0.01			(0.01	)		N/M
Net Income	$	2.08		$	1.45		$	0.63			43	%
Average shares outstanding(millions)
Basic		1,113			1,142			(29	)		(3	)%
Diluted		1,131			1,150			(19	)		(2	)

8

Retail Line of Business Information

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
INCOME STATEMENT DATA($ millions)
Net interest income — FTE (1)	$	1,178		$	1,241		$	1,121		$	1,102		$	1,077		$	(63	)		(5	)%	$	101			9	%
Banking fees and commissions		168			189			158			170			175			(21	)		(11	)		(7	)		(4	)
Credit card revenue		65			56			52			53			59			9			16			6			10
Service charges on deposits		245			232			239			242			225			13			6			20			9
Other income		48			10			19			28			2			38			N/M			46			N/M
Total noninterest income		526			487			468			493			461			39			8			65			14
Total revenue, net of interest expense		1,704			1,728			1,589			1,595			1,538			(24	)		(1	)		166			11
Provision for credit losses		81			114			142			139			108			(33	)		(29	)		(27	)		(25	)
Salaries and employee benefits		413			404			374			390			407			9			2			6			1
Other expense		444			450			445			449			435			(6	)		(1	)		9			2
Total noninterest expense		857			854			819			839			842			3			—			15			2
Income before income taxes		766			760			628			617			588			6			1			178			30
Applicable income taxes		281			278			230			225			215			3			1			66			31
Net income	$	485		$	482		$	398		$	392		$	373		$	3			1	%	$	112			30	%
FINANCIAL PERFORMANCE
Return on average common equity		41	%		41	%		33	%		33	%		31	%		0	%					10	%
Efficiency ratio		50			49			52			53			55			1						(5	)
Headcount		31,057			31,468			31,264			30,867			31,812			(411	)		(1	)		(755	)		(2	)
ENDING BALANCES($ millions)
Small business commercial	$	10,551		$	10,387		$	10,216		$	10,122		$	10,050		$	164			2	%	$	501			5	%
Home equity		29,142			27,685			26,432			25,252			23,863			1,457			5			5,279			22
Vehicle		13,087			13,548			13,571			13,841			13,873			(461	)		(3	)		(786	)		(6	)
Other personal loans		4,760			6,006			6,016			6,199			5,919			(1,246	)		(21	)		(1,159	)		(20	)
Total loans (2)		57,540			57,626			56,235			55,414			53,705			(86	)		—			3,835			7
Assets		60,130			60,109			58,772			58,080			56,900			21			—			3,230			6
Demand deposits		31,651			31,509			30,587			29,642			29,280			142			—			2,371			8
Savings		43,822			42,893			41,093			40,581			40,066			929			2			3,756			9
Core deposits		75,473			74,402			71,680			70,223			69,346			1,071			1			6,127			9
Time		16,570			17,140			17,881			18,616			19,486			(570	)		(3	)		(2,916	)		(15	)
Total deposits		92,043			91,542			89,561			88,839			88,832			501			1			3,211			4
Equity		4,774			4,774			4,774			4,774			4,774			—			—			—			—

9

Retail Line of Business Information

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
AVERAGE BALANCES($ millions)
Small business commercial	$	10,495		$	10,347		$	10,142		$	10,126		$	10,010		$	148			1	%	$	485			5	%
Home equity		28,366			26,957			25,790			24,499			22,807			1,409			5			5,559			24
Vehicle		13,371			13,606			13,672			13,962			13,989			(235	)		(2	)		(618	)		(4	)
Other personal loans		5,141			6,350			5,995			6,147			6,087			(1,209	)		(19	)		(946	)		(16	)
Total loans		57,373			57,260			55,599			54,734			52,893			113			—			4,480			8
Assets		59,939			59,725			58,087			57,467			56,261			214			—			3,678			7
Demand deposits		31,879			30,928			30,124			29,632			28,809			951			3			3,070			11
Savings		43,404			41,887			41,041			40,354			40,107			1,517			4			3,297			8
Core deposits		75,283			72,815			71,165			69,986			68,916			2,468			3			6,367			9
Time		16,799			17,506			18,260			18,985			20,095			(707	)		(4	)		(3,296	)		(16	)
Total deposits		92,082			90,321			89,425			88,971			89,011			1,761			2			3,071			3
Equity		4,774			4,774			4,774			4,774			4,774			—			—			—			—
CREDIT QUALITY($ millions)
Net charge-offs
Small business commercial	$	13		$	9		$	17		$	14		$	16		$	4			44	%	$	(3	)		(19	)%
Home equity		19			20			24			47			27			(1	)		(5	)		(8	)		(30	)
Vehicle		35			53			67			56			46			(18	)		(34	)		(11	)		(24	)
Other personal loans		16			13			40			27			24			3			23			(8	)		(33	)
Total net charge-offs		83			95			148			144			113			(12	)		(13	)		(30	)		(27	)
Net charge-off ratios
Small business commercial		0.50	%		0.35	%		0.67	%		0.55	%		0.64	%		0.15	%					(0.14	)%
Home equity		0.27			0.30			0.37			0.77			0.47			(0.03	)					(0.20	)
Vehicle		1.05			1.56			1.96			1.60			1.32			(0.51	)					(0.27	)
Other personal loans		1.24			0.82			2.67			1.76			1.58			0.42						(0.34	)
Total net charge-off ratio		0.58			0.66			1.06			1.05			0.85			(0.08	)					(0.27	)
Nonperforming assets
Commercial	$	226		$	239		$	250		$	268		$	255		$	(13	)		(5	)%	$	(29	)		(11	)%
Consumer		250			265			290			305			315			(15	)		(6	)		(65	)		(21	)
Total nonperforming loans (3)		476			504			540			573			570			(28	)		(6	)		(94	)		(16	)
Other, including other real estate owned (“OREO”)		46			57			77			117			218			(11	)		(19	)		(172	)		(79	)
Total nonperforming assets		522			561			617			690			788			(39	)		(7	)		(266	)		(34	)
Allowance for loan losses ($ millions)		688			690			677			683			688			(2	)		—			—			—
Allowance for loan losses to period-end loans (2)		1.23	%		1.26	%		1.26	%		1.29	%		1.33	%		(0.03	)%					(0.10	)%
Allowance for loan losses to nonperforming loans (3)		146			137			126			120			121			9						25
Nonperforming assets to related assets		0.91			0.97			1.10			1.24			1.46			(0.06	)					(0.55	)

10

Retail Line of Business Information

	2004				2003						Change from
	2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr		1Q04						2Q03
											Amt			%			Amt		%
DISTRIBUTION
Number of
Banking centers		1,866		1,845		1,841		1,810		1,803		21			1	%		63		3	%
ATMs		4,628		4,569		4,394		4,350		4,093		59			1			535		13
Relationship bankers		3,673		3,614		3,600		3,139		2,823		59			2			850		30
On-line customers(thousands)		2,918		2,693		2,436		2,184		1,922		225			8			996		52
Personal demand accounts(thousands)		5,063		4,908		4,773		4,684		4,541		155			3			522		11
Business demand accounts(thousands)		529		520		513		508		501		9			2			28		6
Debit cards issued(thousands)		5,627		5,447		5,216		5,104		4,946		180			3			681		14
RETAIL BROKERAGE($ millions)
Mutual fund sales	$	833	$	896	$	622	$	671	$	774	$	(63	)		(7	)%	$	59		8	%
Annuity sales		937		821		864		895		759		116			14			178		23
Total investment sales volume		1,770		1,717		1,486		1,566		1,533		53			3			237		15
Market value customer assets — end of period($ billions)		35.2		34.6		33.7		31.9		30.5		0.6			2			4.7		15
Number of customers — end of period(thousands)		738		734		721		707		694		4			1			44		6
Number of dedicated investment sales representatives		1,014		1,063		973		902		874		(49	)		(5	)		140		16

NOTES:

(1)	Net interest income-FTE includes taxable equivalent adjustments of $6 million, $6 million, $5 million, $6 million, and $6 million for the quarters ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively.
(2)	Loans includes loans held for sale of $1,562 million, $2,686 million, $2,496 million, $2,480 million, and $2,067 million, at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. These amounts are not included in allowance coverage statistics.
(3)	Nonperforming loans includes loans held for sale of $5 million, $2 million, $2 million, $2 million, and $2 million, at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. These amounts are not included in allowance coverage statistics.

11

Commercial Banking Line of Business Information

	2004						2003 (8)									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
INCOME STATEMENT DATA($ millions)
Net interest income — FTE (1)	$	557		$	570		$	586		$	574		$	571		$	(13	)		(2	)%	$	(14	)		(2	)%
Banking fees and commissions		173			182			185			198			234			(9	)		(5	)		(61	)		(26	)
Credit card revenue		33			31			28			27			27			2			6			6			22
Service charges on deposits		191			185			188			186			185			6			3			6			3
Fiduciary and investment management fees		—			1			1			—			(1	)		(1	)		N/M			1			N/M
Investment securities gains (losses)		25			7			6			31			(2	)		18			N/M			27			N/M
Trading gains (losses)		71			53			32			30			(75	)		18			34			146			N/M
Other income (loss)		(20	)		(28	)		—			(24	)		(3	)		8			29			(17	)		N/M
Total noninterest income		473			431			440			448			365			42			10			108			30
Total revenue, net of interest expense		1,030			1,001			1,026			1,022			936			29			3			94			10
Provision for credit losses		(187	)		(188	)		(109	)		(51	)		10			1			1			(197	)		N/M
Salaries and employee benefits (2)		326			314			325			297			295			12			4			31			10
Other expense (2)		319			291			302			286			306			28			10			13			4
Total noninterest expense		645			605			627			583			601			40			7			44			7
Income before income taxes		572			584			508			490			325			(12	)		(2	)		247			76
Applicable income taxes		152			159			132			127			73			(7	)		(4	)		79			N/M
Net Income	$	420		$	425		$	376		$	363		$	252		$	(5	)		(1	)%	$	168			67	%
Memo — Revenue by activity
Lending-related revenue	$	461		$	415		$	471		$	454		$	434		$	46			11	%	$	27			6	%
Credit derivative hedge portfolio		(6	)		8			(35	)		(51	)		(143	)		(14	)		N/M			137			96
Global treasury services		407			394			405			405			395			13			3			12			3
Capital markets (3)		178			202			202			234			253			(24	)		(12	)		(75	)		(30	)
Other		(10	)		(18	)		(17	)		(20	)		(3	)		8			44			(7	)		N/M
FINANCIAL PERFORMANCE
Return on average common equity		23	%		23	%		20	%		19	%		14	%		0	%					9	%
Efficiency ratio		63			60			61			57			64			3						(1	)
Efficiency ratio excluding credit derivative hedge portfolio		62			61			59			54			56			1						6
Headcount:
Corporate banking (including capital markets)		2,452			2,630			2,686			2,650			2,640			(178	)		(7	)%		(188	)		(7	)%
Middle market		2,423			2,426			2,507			2,551			2,491			(3	)		—			(68	)		(3	)
Global treasury services (2)		2,689			2,795			3,313			3,234			3,239			(106	)		(4	)		(550	)		(17	)
Operations, technology and other administration		1,916			2,002			1,946			1,930			2,048			(86	)		(4	)		(132	)		(6	)
Total headcount		9,480			9,853			10,452			10,365			10,418			(373	)		(4	)		(938	)		(9	)

12

Commercial Banking Line of Business Information

	2004						2003 (8)									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
ENDING BALANCES($ millions)
Loans (4)	$	52,027		$	52,661		$	53,752		$	54,493		$	57,775		$	(634	)		(1	)%	$	(5,748	)		(10	)%
Interests in purchased receivables (5)		30,184			28,912			32,938			—			—			1,272			4			30,184			N/M
Investment securities (5)		9,804			10,884			10,035			3,806			2,815			(1,080	)		(10	)		6,989			N/M
Assets		113,972			126,501			137,289			103,265			109,147			(12,529	)		(10	)		4,825			4
Demand deposits		24,342			26,150			26,348			27,287			30,324			(1,808	)		(7	)		(5,982	)		(20	)
Savings		14,911			13,622			12,263			11,269			9,332			1,289			9			5,579			60
Time		835			843			922			1,024			9,110			(8	)		(1	)		(8,275	)		(91	)
Foreign offices		10,173			11,222			12,223			11,619			10,838			(1,049	)		(9	)		(665	)		(6	)
Total deposits		50,261			51,837			51,756			51,199			59,604			(1,576	)		(3	)		(9,343	)		(16	)
Short-term borrowings (5)		35,832			36,772			40,717			3,783			4,507			(940	)		(3	)		31,325			N/M
Equity		7,451			7,451			7,451			7,451			7,451			—			—			—			—
AVERAGE BALANCES($ millions)
Loans	$	52,763		$	53,321		$	53,634		$	55,090		$	58,046		$	(558	)		(1	)%	$	(5,283	)		(9	)%
Interests in purchased receivables (5)		28,982			31,145			358			—			—			(2,163	)		(7	)		28,982			N/M
Investment securities (5)		10,054			9,873			3,629			2,928			1,920			181			2			8,134			N/M
Assets		120,128			130,946			97,758			101,403			99,249			(10,818	)		(8	)		20,879			21
Demand deposits		24,551			24,973			24,846			25,929			24,402			(422	)		(2	)		149			1
Savings		14,645			12,982			11,669			10,983			10,005			1,663			13			4,640			46
Time		856			915			987			2,968			3,529			(59	)		(6	)		(2,673	)		(76	)
Foreign offices		10,819			11,445			10,737			10,413			10,443			(626	)		(5	)		376			4
Total deposits		50,871			50,315			48,239			50,293			48,379			556			1			2,492			5
Short-term borrowings (5)		35,673			39,036			4,433			3,490			3,888			(3,363	)		(9	)		31,785			N/M
Equity		7,451			7,451			7,451			7,451			7,451			—			—			—			—
CREDIT QUALITY($ millions)
Net charge-offs (recoveries)	$	(12	)	$	(8	)	$	66		$	99		$	105		$	(4	)		(50	)%	$	(117	)		N/M
Net charge-off (recovery) ratio		(0.09	)%		(0.06	)%		0.49	%		0.72	%		0.72	%		(0.03	)%					(0.81	)%
Nonperforming assets
Nonperforming loans (6)	$	625		$	820		$	1,036		$	1,387		$	1,693		$	(195	)		(24	)%	$	(1,068	)		(63	)%
Other, including other real estate owned (“OREO”)		18			16			22			40			22			2			13			(4	)		(18	)
Total nonperforming assets		643			836			1,058			1,427			1,715			(193	)		(23	)		(1,072	)		(63	)
Allowance for loan losses
Allowance for loan losses		1,771			1,971			2,161			2,359			2,440			(200	)		(10	)		(669	)		(27	)
Allowance for loan losses to period-end loans (4)		3.41	%		3.78	%		4.06	%		4.37	%		4.25	%		(0.37	)%					(0.84	)%
Allowance for loan losses to nonperforming loans (6)		288			240			209			170			145			48						143
Allowance for credit losses(7)
Allowance for credit losses		2,271			2,471			2,651			2,826			2,976			(200	)		(8	)		(705	)		(24	)
Allowance for credit losses to period-end loans (4)		4.37	%		4.74	%		4.98	%		5.23	%		5.18	%		(0.37	)%					(0.81	)%
Allowance for credit losses to nonperforming loans (6)		369			301			257			204			176			68						193
Nonperforming assets to related assets		1.24			1.59			1.97			2.62			2.97			(0.35	)					(1.73	)

13

Commercial Banking Line of Business Information

	2004						2003 (8)									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
CORPORATE BANKING($ millions)
Ending balances
Loans	$	24,536		$	25,835		$	27,123		$	27,375		$	29,319		$	(1,299	)		(5	)%	$	(4,783	)		(16	)%
Interests in purchased receivables (5)		30,184			28,912			32,938			—			—			1,272			4			30,184			N/M
Investment securities (5)		9,759			10,839			10,007			3,769			2,774			(1,080	)		(10	)		6,985			N/M
Deposits		21,238			22,855			23,685			24,414			32,730			(1,617	)		(7	)		(11,492	)		(35	)
Short-term borrowings (5)		35,832			36,772			40,717			3,783			4,507			(940	)		(3	)		31,325			N/M
Average balances
Loans		25,662			26,756			27,043			27,544			29,222			(1,094	)		(4	)		(3,560	)		(12	)
Interests in purchased receivables (5)		28,982			31,145			358			—			—			(2,163	)		(7	)		28,982			N/M
Investment securities (5)		9,997			9,813			3,583			2,890			1,879			184			2			8,118			N/M
Deposits		22,471			22,913			22,849			25,221			24,251			(442	)		(2	)		(1,780	)		(7	)
Short-term borrowings (5)		35,673			39,036			4,433			3,490			3,888			(3,363	)		(9	)		31,785			N/M
Credit Quality
Net charge-offs (recoveries) ($ millions)	$	(13	)	$	(19	)	$	28		$	56		$	63		$	6			32	%	$	(76	)		N/M
Net charge-off (recovery) ratio		(0.20	)%		(0.28	)%		0.41	%		0.81	%		0.86	%		0.08	%					(1.06	)%
Nonperforming loans ($ millions)	$	164		$	236		$	321		$	526		$	705		$	(72	)		(31	)%	$	(541	)		(77	)%
Nonperforming loans to total loans		0.67	%		0.91	%		1.18	%		1.92	%		2.40	%		(0.24	)%					(1.73	)%
Syndications
Lead arranger deals
Volume($ billions)	$	15.8		$	16.8		$	14.4		$	15.3		$	15.9		$	(1.0	)		(6	)%	$	(0.1	)		(1	)%
Number of transactions		87			72			100			76			95			15			21			(8	)		(8	)
League table standing — rank		5			4			4			4			4			1						1
League table standing — market share		3	%		9	%		6	%		7	%		6	%		(6	)%					(3	)%
MIDDLE MARKET BANKING($ millions)
Loans
Ending balance	$	27,491		$	26,826		$	26,629		$	27,118		$	28,456		$	665			2	%	$	(965	)		(3	)%
Average balance		27,101			26,565			26,591			27,546			28,824			536			2			(1,723	)		(6	)
Deposits
Ending balance		29,023			28,982			28,071			26,785			26,874			41			—			2,149			8
Average balance		28,400			27,402			25,390			25,072			24,128			998			4			4,272			18
Credit Quality
Net charge-offs ($ millions)	$	1		$	11		$	38		$	43		$	42		$	(10	)		(91	)%	$	(41	)		(98	)%
Net charge-off ratio		0.01	%		0.17	%		0.57	%		0.62	%		0.58	%		(0.16	)%					(0.57	)%
Nonperforming loans ($ millions)	$	461		$	584		$	715		$	861		$	988		$	(123	)		(21	)%	$	(527	)		(53	)%
Nonperforming loans to total loans		1.68	%		2.18	%		2.69	%		3.18	%		3.47	%		(0.50	)%					(1.79	)%

NOTES:

(1)	Net interest income-FTE includes taxable equivalent adjustments of $31 million, $32 million, $30 million, $28 million, and $25 million for the quarters ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively.
(2)	Reflects the transfer of lock box operations to the Corporate line of business during the first quarter of 2004.
(3)	Capital markets includes trading income and underwriting, syndicated lending and advisory fees.
(4)	Loans includes loans held for sale of $60 million, $497 million, $544 million, $471 million, and $327 million, at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. These amounts are not included in allowance coverage statistics.
(5)	Impacted by the adoption of FIN No. 46.
(6)	Nonperforming loans includes loans held for sale of $9 million, $0, $3 million, $3 million, and $6 million, at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. These amounts are not included in allowance coverage statistics.
(7)	The allowance for credit losses includes the allowance for loan losses of $1,771 million, $1,971 million, $2,161 million, $2,359 million, and $2,440 million and reserve for unfunded lending commitments and standby letters of credit which is included in other liabilities of $500 million, $500 million, $490 million, $467 million, and $536 million, each for the periods ending June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively.
(8)	Prior period data has been adjusted for the transfer of community development activities from the Corporate line of business.

14

Card Services Line of Business Information — Reported Basis (1)

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
INCOME STATEMENT DATA($ millions)
Net interest income — FTE	$	538		$	483		$	414		$	414		$	332		$	55			11	%	$	206			62	%
Banking fees and commissions		6			5			9			5			9			1			20			(3	)		(33	)
Credit card revenue		907			813			947			895			825			94			12			82			10
Other income (loss)		(12	)		24			(24	)		(12	)		34			(36	)		N/M			(46	)		N/M
Total noninterest income		901			842			932			888			868			59			7			33			4
Total revenue, net of interest expense		1,439			1,325			1,346			1,302			1,200			114			9			239			20
Provision for credit losses		140			171			168			246			182			(31	)		(18	)		(42	)		(23	)
Salaries and employee benefits		166			167			158			157			156			(1	)		(1	)		10			6
Other expense		505			474			457			436			408			31			7			97			24
Total noninterest expense		671			641			615			593			564			30			5			107			19
Income before income taxes		628			513			563			463			454			115			22			174			38
Applicable income taxes		239			194			216			178			175			45			23			64			37
Net income	$	389		$	319		$	347		$	285		$	279		$	70			22	%	$	110			39	%
Memo: Net securitization gains (amortization)	$	(1	)	$	1		$	(27	)	$	(13	)	$	17		$	(2	)		N/M		$	(18	)		N/M
FINANCIAL PERFORMANCE (2)
Return on average common equity		25	%		20	%		22	%		18	%		18	%		5	%					7	%
Efficiency ratio		47			48			46			46			47			(1	)					—
Headcount		11,455			10,591			10,374			10,366			10,751			864			8			704			7
ENDING BALANCES($ millions)
Owned loans
Held in portfolio	$	7,310		$	7,069		$	6,447		$	6,449		$	6,308		$	241			3	%	$	1,002			16	%
Held for sale (3)		4,406			5,395			5,588			7,729			7,782			(989	)		(18	)		(3,376	)		(43	)
Total owned loans		11,716			12,464			12,035			14,178			14,090			(748	)		(6	)		(2,374	)		(17	)
Seller’s interest and accrued interest receivable		30,177			27,485			27,193			23,285			24,414			2,692			10			5,763			24
Total receivables		41,893			39,949			39,228			37,463			38,504			1,944			5			3,389			9
Memo: Securitized loans		35,614			34,269			37,100			36,763			35,832			1,345			4			(218	)		(1	)
Assets		47,710			45,421			44,792			42,768			43,597			2,289			5			4,113			9
Equity		6,361			6,361			6,361			6,361			6,361			—			—			—			—

15

Card Services Line of Business Information — Reported Basis (1)

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
AVERAGE BALANCES($ millions)
Owned loans
Held in portfolio	$	7,265		$	6,757		$	6,452		$	6,440		$	7,085		$	508			8	%	$	180			3	%
Held for sale (3)		5,245			5,596			7,064			10,001			7,005			(351	)		(6	)		(1,760	)		(25	)
Total owned loans		12,510			12,353			13,516			16,441			14,090			157			1			(1,580	)		(11	)
Seller’s interest and accrued interest receivable		29,181			26,652			23,763			21,829			23,281			2,529			9			5,900			25
Total receivables		41,691			39,005			37,279			38,270			37,371			2,686			7			4,320			12
Memo: Securitized loans		33,956			35,629			37,311			36,029			35,664			(1,673	)		(5	)		(1,708	)		(5	)
Assets		46,754			44,500			42,360			43,105			42,886			2,254			5			3,868			9
Equity		6,361			6,361			6,361			6,361			6,361			—			—			—			—
CREDIT QUALITY($ millions)
Net charge-offs	$	140		$	131		$	153		$	211		$	182		$	9			7	%	$	(42	)		(23	)%
Net charge-off ratio (4)		4.48	%		4.24	%		4.62	%		5.13	%		5.17	%		0.24	%					(0.69	)%
Delinquency ratios
30+ days		2.71			3.05			3.31			3.82			3.22			(0.34	)					(0.51	)
90+ days		1.27			1.46			1.55			1.78			1.49			(0.19	)					(0.22	)
Allowance for loan losses	$	486		$	486		$	446		$	431		$	396		$	—			0	%	$	90			23	%
Allowance for loan losses to period-end loans held in portfolio		6.65	%		6.88	%		6.92	%		6.68	%		6.28	%		(0.23	)%					0.37	%
OTHER DATA
Charge volume($ billions)	$	47.1		$	42.0		$	45.5		$	42.8		$	40.5		$	5.1			12	%	$	6.6			16	%
Net accounts opened(thousands)(5)		9,257			985			885			895			1,823			8,272			N/M			7,434			N/M
Credit cards issued(thousands)		60,813			51,775			50,839			51,500			52,073			9,038			17			8,740			17
Number of cardmemberservices.com customers(millions)		6.3			5.8			5.3			4.7			4.2			0.5			9			2.1			50
Paymentech, Inc.
Bank card volume($ billions)	$	48.4		$	45.0		$	46.1		$	41.1		$	39.0		$	3.4			8	%	$	9.4			24	%
Total transactions (millions)		2,055			1,957			1,967			1,770			1,697			98			5			358			21

NOTES:

(1)	On a reported basis, income earned on securitized loans is reported in credit card revenue and income earned on Seller’s Interest is reported in net interest income. On a managed basis, net interest income, noninterest income and provision for credit losses are reported in their respective income statement lines.
(2)	See Card Services line of business results on a managed basis in the financial supplement for financial performance ratios on a managed basis.
(3)	Held for sale amounts are not included in allowance coverage statistics.
(4)	Includes net charge-offs related to loans held for sale of $3 million for the quarter ended December 31, 2003, which is recorded in noninterest income.
(5)	Net accounts opened includes originations, purchases and sales.

16

Card Services Line of Business Information — Managed Basis (1)

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
MANAGED FINANCIAL DATA($ millions)
Managed net interest income — FTE	$	1,814		$	1,757		$	1,689		$	1,605		$	1,488		$	57			3	%	$	326			22	%
Managed banking fees and commissions		6			5			9			5			9			1			20			(3	)		(33	)
Managed credit card revenue		519			407			532			477			438			112			28			81			18
Managed other income (loss)		(12	)		24			(24	)		(12	)		34			(36	)		N/M			(46	)		N/M
Total managed noninterest income		513			436			517			470			481			77			18			32			7
Total managed revenue, net of interest expense		2,327			2,193			2,206			2,075			1,969			134			6			358			18
Managed provision for credit losses		1,028			1,039			1,028			1,019			951			(11	)		(1	)		77			8
Managed salaries and employee benefits		166			167			158			157			156			(1	)		(1	)		10			6
Managed other expense		505			474			457			436			408			31			7			97			24
Total managed noninterest expense		671			641			615			593			564			30			5			107			19
Managed income, net of expense, before taxes	$	628		$	513		$	563		$	463		$	454		$	115			22	%	$	174			38	%
Memo: Net managed securitization gains (amortization)	$	(1	)	$	1		$	(27	)	$	(13	)	$	17		$	(2	)		N/M		$	(18	)		N/M
FINANCIAL PERFORMANCE ON A MANAGED BASIS:
Percentage of average managed outstandings
Managed net interest income — FTE		9.64	%		9.47	%		8.98	%		8.57	%		8.17	%		0.17	%					1.47	%
Managed provision for credit losses		5.47			5.60			5.47			5.44			5.22			(0.13	)					0.25
Managed noninterest income		2.74			2.35			2.75			2.51			2.64			0.39						0.10
Managed risk adjusted margin		6.91			6.22			6.26			5.64			5.59			0.69						1.32
Managed noninterest expense		3.57			3.46			3.27			3.17			3.10			0.11						0.47
Managed income, net of expense before taxes — FTE		3.34			2.76			2.99			2.47			2.49			0.58						0.85
Managed return on average common equity		25	%		20	%		22	%		18	%		18	%		5	%					7	%
Managed efficiency ratio		29			29			28			29			29			—						—
Managed headcount		11,455			10,591			10,374			10,366			10,751			864			8			704			7
ENDING MANAGED BALANCES($ millions)
Held in portfolio	$	7,310		$	7,069		$	6,447		$	6,449		$	6,308		$	241			3	%	$	1,002			16	%
Held for sale (2)		4,406			5,395			5,588			7,729			7,782			(989	)		(18	)		(3,376	)		(43	)
Securitized		35,614			34,269			37,100			36,763			35,832			1,345			4			(218	)		(1	)
Seller’s interest and accrued interest receivable		30,177			27,485			27,193			23,285			24,414			2,692			10			5,763			24
Total managed loans		77,507			74,218			76,328			74,226			74,336			3,289			4			3,171			4
Managed assets		83,324			79,690			81,892			79,531			79,429			3,634			5			3,895			5
Managed equity		6,361			6,361			6,361			6,361			6,361			—			—			—			—

17

Card Services Line of Business Information — Managed Basis (1)

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
AVERAGE MANAGED BALANCES($ millions)
Held in portfolio	$	7,265		$	6,757		$	6,452		$	6,440		$	7,085		$	508			8	%	$	180			3	%
Held for sale (2)		5,245			5,596			7,064			10,001			7,005			(351	)		(6	)		(1,760	)		(25	)
Securitized		33,956			35,629			37,311			36,029			35,664			(1,673	)		(5	)		(1,708	)		(5	)
Seller’s interest and accrued interest receivable		29,181			26,652			23,763			21,829			23,281			2,529			9			5,900			25
Total managed loans		75,647			74,634			74,590			74,299			73,035			1,013			1			2,612			4
Managed assets		80,710			80,129			79,671			79,134			78,550			581			1			2,160			3
Managed equity		6,361			6,361			6,361			6,361			6,361			—			—			—			—
MANAGED CREDIT QUALITY($ millions)
Managed net charge-offs	$	1,028		$	999		$	1,013		$	984		$	951		$	29			3	%	$	77			8	%
Annualized managed net charge-off ratio		5.44	%		5.35	%		5.43	%		5.30	%		5.21	%		0.09	%					0.23	%
Managed 12 month lagged		5.63			5.45			5.71			5.77			5.77			0.18						(0.14	)
Managed Delinquency ratios
30+ days		3.37			3.75			3.90			3.98			3.95			(0.38	)					(0.58	)
90+ days		1.60			1.82			1.85			1.85			1.85			(0.22	)					(0.25	)
																											��
Managed allowance for loan losses	$	486		$	486		$	446		$	431		$	396		$	—			0	%	$	90			23	%
Managed allowance for loan losses to period-end loans held in portfolio		6.65	%		6.88	%		6.92	%		6.68	%		6.28	%		(0.23	)%					0.37	%
REPORTED OTHER DATA
Charge volume($ billions)	$	47.1		$	42.0		$	45.5		$	42.8		$	40.5		$	5.1			12	%	$	6.6			16	%
Net accounts opened(thousands)(3)		9,257			985			885			895			1,823			8,272			N/M			7,434			N/M
Credit cards issued(thousands)		60,813			51,775			50,839			51,500			52,073			9,038			17			8,740			17
Number of cardmemberservices.com customers(millions)		6.3			5.8			5.3			4.7			4.2			0.5			9			2.1			50
Paymentech, Inc.
Bank card volume($ billions)	$	48.4		$	45.0		$	46.1		$	41.1		$	39.0		$	3.4			8	%	$	9.4			24	%
Total transactions (millions)		2,055			1,957			1,967			1,770			1,697			98			5			358			21

NOTES:

(1)	On a reported basis, income earned on securitized loans is reported in credit card revenue and income earned on Seller’s Interest is reported in net interest income. On a managed basis, net interest income, non-interest income and provision are reported in their respective income statement lines.
(2)	Held for sale amounts are not included in allowance coverage statistics.
(3)	Net accounts opened includes originations, purchases and sales.

18

Card Services — Reconciliation of Reported and Managed Data

	2004						2003
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr
INCOME STATEMENT DATA($ millions)
Net interest income — FTE
Reported data for the period	$	538		$	483		$	414		$	414		$	332
Securitization adjustments		1,276			1,274			1,275			1,191			1,156
Managed net interest income		1,814			1,757			1,689			1,605			1,488
Credit card revenue
Reported data for the period	$	907		$	813		$	947		$	895		$	825
Securitization adjustments		(388	)		(406	)		(415	)		(418	)		(387	)
Managed credit card revenue		519			407			532			477			438
Noninterest income
Reported data for the period	$	901		$	842		$	932		$	888		$	868
Securitization adjustments		(388	)		(406	)		(415	)		(418	)		(387	)
Managed noninterest income		513			436			517			470			481
Total revenue, net of interest expense
Reported data for the period	$	1,439		$	1,325		$	1,346		$	1,302		$	1,200
Securitization adjustments		888			868			860			773			769
Total Managed revenue, net of interest expense		2,327			2,193			2,206			2,075			1,969
Provision for credit losses
Reported data for the period	$	140		$	171		$	168		$	246		$	182
Securitization adjustments		888			868			860			773			769
Managed provision for credit losses		1,028			1,039			1,028			1,019			951
BALANCE SHEET — ENDING BALANCES($ millions)
Owned loans
Held in portfolio	$	7,310		$	7,069		$	6,447		$	6,449		$	6,308
Held for sale		4,406			5,395			5,588			7,729			7,782
Total owned loans		11,716			12,464			12,035			14,178			14,090
Seller’s interest and accrued interest receivable		30,177			27,485			27,193			23,285			24,414
Total on balance sheet loans		41,893			39,949			39,228			37,463			38,504
Securitized loans		35,614			34,269			37,100			36,763			35,832
Total managed loans		77,507			74,218			76,328			74,226			74,336
Total assets
Reported	$	47,710		$	45,421		$	44,792		$	42,768		$	43,597
Securitization adjustments		35,614			34,269			37,100			36,763			35,832
Managed assets		83,324			79,690			81,892			79,531			79,429

19

Card Services — Reconciliation of Reported and Managed Data

	2004				2003
	2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
BALANCE SHEET — AVERAGE BALANCES($ millions)
Owned loans
Held in portfolio	$	7,265	$	6,757	$	6,452	$	6,440	$	7,085
Held for sale		5,245		5,596		7,064		10,001		7,005
Total owned loans		12,510		12,353		13,516		16,441		14,090
Seller’s interest and accrued interest receivable		29,181		26,652		23,763		21,829		23,281
Total on balance sheet loans		41,691		39,005		37,279		38,270		37,371
Securitized loans		33,956		35,629		37,311		36,029		35,664
Total managed loans		75,647		74,634		74,590		74,299		73,035
Total assets
Reported	$	46,754	$	44,500	$	42,360	$	43,105	$	42,886
Securitization adjustments		33,956		35,629		37,311		36,029		35,664
Managed assets		80,710		80,129		79,671		79,134		78,550
CREDIT QUALITY($ millions)
Net charge-offs
Reported data for the period	$	140	$	131	$	153	$	211	$	182
Securitization adjustments		888		868		860		773		769
Managed net charge-offs		1,028		999		1,013		984		951

NOTES:

The Corporation evaluates its Card Services line of business trends on a managed basis which assumes that securitized receivables are still on the balance sheet. The Corporation manages its Card Services operations on a managed basis because the receivables that are securitized are subject to underwriting standards comparable to the owned portfolio and are serviced by operating personnel without regard to ownership. The Corporation believes that investors should be informed, and often request information, about the credit performance of the entire managed portfolio in order to understand the quality of the Card Services originations and the related credit risks inherent in the owned portfolio and retained interests in securitizations. In addition, the Corporation funds its Card Services operations, reviews operating results and makes decisions about allocating resources, such as employees and capital, on a managed basis. See “Loan Securitizations” on page 73 and Note 11, “Credit Card Securitizations,” of the December 31, 2003 Form 10-K for additional information related to the Corporation’s securitization activity.

20

Investment Management Group Line of Business Information

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
INCOME STATEMENT DATA($ millions)
Net interest income — FTE	$	168		$	169		$	162		$	115		$	90		$	(1	)		(1	)%	$	78			87	%
Banking fees and commissions		119			124			119			88			70			(5	)		(4	)		49			70
Service charges on deposits		4			5			4			5			4			(1	)		(20	)		—			—
Fiduciary and investment management fees		176			185			162			156			154			(9	)		(5	)		22			14
Other income		25			29			29			8			2			(4	)		(14	)		23			N/M
Total noninterest income		324			343			314			257			230			(19	)		(6	)		94			41
Total revenue, net of interest expense		492			512			476			372			320			(20	)		(4	)		172			54
Provision for credit losses		—			(2	)		—			4			6			2			N/M			(6	)		N/M
Salaries and employee benefits		113			110			119			114			109			3			3			4			4
Other expense		205			193			191			110			84			12			6			121			N/M
Total noninterest expense		318			303			310			224			193			15			5			125			65
Income before income taxes		174			211			166			144			121			(37	)		(18	)		53			44
Applicable income taxes		64			78			61			53			45			(14	)		(18	)		19			42
Net Income	$	110		$	133		$	105		$	91		$	76		$	(23	)		(17	)%	$	34			45	%
FINANCIAL PERFORMANCE
Return on average common equity		28	%		34	%		27	%		31	%		32	%		(6	)%					(4	)%
Efficiency ratio		65			59			65			60			60			6						5
Headcount		4,050			4,046			4,845			4,949			4,086			4			—			(36	)		(1	)
ENDING BALANCES($ millions)
Commercial	$	3,424		$	3,348		$	3,236		$	3,153		$	3,014			76			2			410			14
Consumer		4,476			4,258			4,144			4,002			3,565		$	218			5		$	911			26
Total Loans		7,900			7,606			7,380			7,155			6,579			294			4			1,321			20
Assets		16,077			16,256			15,839			15,656			8,163			(179	)		(1	)		7,914			97
Demand deposits		1,793			1,608			1,702			971			2,036			185			12			(243	)		(12	)
Savings		10,661			10,033			9,414			8,327			7,812			628			6			2,849			36
Time		557			592			597			621			655			(35	)		(6	)		(98	)		(15	)
Foreign offices		287			226			290			219			255			61			27			32			13
Total deposits		13,298			12,459			12,003			10,138			10,758			839			7			2,540			24
Insurance Policy and Claims Reserves		6,476			6,783			6,712			6,496			219			(307	)		(5	)		6,257			N/M
Equity		1,554			1,554			1,554			1,553			953			—			—			601			63

21

Investment Management Group Line of Business Information

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
AVERAGE BALANCES($ millions)
Commercial	$	3,373		$	3,283		$	3,159		$	2,996		$	3,034		$	90			3	%	$	339			11	%
Consumer		4,326			4,118			4,070			3,669			3,556			208			5			770			22
Total Loans		7,699			7,401			7,229			6,665			6,590			298			4			1,109			17
Assets		15,878			15,567			15,669			10,700			8,263			311			2			7,615			92
Demand deposits		1,673			1,716			1,734			2,019			1,765			(43	)		(3	)		(92	)		(5	)
Savings		10,414			9,569			8,893			8,032			7,678			845			9			2,736			36
Time		574			586			611			633			692			(12	)		(2	)		(118	)		(17	)
Foreign offices		216			157			165			165			184			59			38			32			17
Total deposits		12,877			12,028			11,403			10,849			10,319			849			7			2,558			25
Insurance Policy and Claims Reserves		6,682			6,747			6,607			2,265			221			(65	)		(1	)		6,461			N/M
Equity		1,554			1,554			1,554			1,149			954			—			—			600			63
CREDIT QUALITY($ millions)
Net charge-offs (recoveries)
Commercial	$	(1	)	$	(2	)	$	(1	)	$	5		$	4		$	1			50	%	$	(5	)		N/M
Consumer		1			—			1			(1	)		2			1			N/M			(1	)		(50	)
Total net charge-offs (recoveries)		—			(2	)		—			4			6			2			N/M			(6	)		N/M
Net charge-off (recovery) ratios
Commercial		(0.12	)%		(0.24	)%		(0.13	)%		0.67	%		0.53	%		0.12	%					(0.65	)%
Consumer		0.09			—			0.10			(0.11	)		0.22			0.09						(0.13	)
Total net charge-off (recovery) ratio		—			(0.11	)		—			0.24			0.36			0.11						(0.36	)
Nonperforming assets
Commercial	$	23		$	28		$	32		$	60		$	67		$	(5	)		(18	)%	$	(44	)		(66	)%
Consumer		19			16			10			14			13			3			19			6			46
Total nonperforming loans		42			44			42			74			80			(2	)		(5	)		(38	)		(48	)
Other, including other real estate owned (“OREO”)		15			17			18			1			2			(2	)		(12	)		13			N/M
Total nonperforming assets		57			61			60			75			82			(4	)		(7	)		(25	)		(30	)
Allowance for loan losses		38			38			40			40			40			—			—			(2	)		(5	)
Allowance for loan losses to period-end loans		0.48	%		0.50	%		0.54	%		0.56	%		0.61	%		(0.02	)%					(0.13	)%
Allowance for loan losses to nonperforming loans		90			86			95			54			50			4						40
Nonperforming assets to related assets		0.72			0.80			0.81			1.05			1.25			(0.08	)					(0.53	)
ASSETS UNDER MANAGEMENT
ENDING BALANCES($ millions)
Mutual Funds	$	102,073		$	102,891		$	105,489		$	100,646		$	102,494		$	(818	)		(1	)%	$	(421	)		0	%
Other		80,691			85,379			81,499			74,902			68,395			(4,688	)		(5	)		12,296			18
Total		182,764			188,270			186,988			175,548			170,889			(5,506	)		(3	)		11,875			7
By type
Money market		65,570			69,970			72,433			70,820			78,457			(4,400	)		(6	)		(12,887	)		(16	)
Equity		52,602			52,255			50,574			42,150			40,584			347			1			12,018			30
Fixed income		64,592			66,045			63,981			62,578			51,848			(1,453	)		(2	)		12,744			25
Total		182,764			188,270			186,988			175,548			170,889			(5,506	)		(3	)		11,875			7

22

Investment Management Group Line of Business Information

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
By channel
Private client services		44,285			45,190			44,992			42,970			43,236			(905	)		(2	)		1,049			2
Retail brokerage		8,952			8,924			8,623			8,139			7,924			28			—			1,028			13
Institutional		94,646			100,077			97,568			95,856			89,891			(5,431	)		(5	)		4,755			5
Commercial cash sweep		6,303			6,581			8,134			8,581			7,949			(278	)		(4	)		(1,646	)		(21	)
Capital markets		3,827			3,917			3,631			2,935			3,049			(90	)		(2	)		778			26
External (1)		10,970			9,896			10,315			8,525			11,073			1,074			11			(103	)		(1	)
All other direct (2)		13,781			13,685			13,725			8,542			7,767			96			1			6,014			77
Total		182,764			188,270			186,988			175,548			170,889			(5,506	)		(3	)		11,875			7
MORNINGSTAR RANKINGS
% of customer assets in funds ranked 4 or better		53	%		51	%		48	%		54	%		53	%		2	%					0	%
% of customer assets in funds ranked 3 or better		86			84			87			88			91			2						(5	)
PRIVATE CLIENT SERVICES($ millions)
Number of private client advisors		632			640			646			664			662			(8	)		(1	)		(30	)		(5	)
Number of private client offices		89			90			89			89			89			(1	)		(1	)		—			—
Total client assets — end of period (3)	$	67,557		$	68,271		$	67,675		$	64,307		$	64,270		$	(714	)		(1	)%	$	3,287			5	%
Ending balances
Loans		7,488			7,198			6,919			6,604			6,483			290			4			1,005			16
Deposits		13,031			12,322			11,747			10,548			10,071			709			6			2,960			29
Average balances
Loans		7,313			7,020			6,762			6,492			6,543			293			4			770			12
Deposits		12,659			11,744			10,976			10,125			9,752			915			8			2,907			30
INSURANCE GROUP($ millions)
Consolidated gross insurance-related revenue (4)	$	259		$	257		$	253		$	160		$	118		$	2			1	%	$	141			N/M
Ending Balances
Invested assets		5,614			6,247			6,079			6,042			407			(633	)		(10	)		5,207			N/M
Policy loans		399			402			411			415			—			(3	)		(1	)		399			N/M
Policies in-force — direct / assumed(thousands)(5)		2,081			1,993			2,006			2,031			935			88			4			1,146			N/M
Insurance in-force — direct / assumed		239,160			235,815			231,533			228,076			12,514			3,345			1			226,646			N/M
Insurance in-force — retained		42,223			41,885			42,596			42,966			12,513			338			1			29,710			N/M
Insurance policy and claims reserves		6,476			6,783			6,712			6,496			219			(307	)		(5	)		6,257			N/M
A.M. Best rating (6)		A			A			A			A			—			—			—			—			—

NOTES:

(1)	Includes broker/dealers, trust companies and registered investment advisors that sell, or offer, One Group Funds.
(2)	One Group funds invested in other One Group funds and other mutual funds sub-advised.
(3)	Fiduciary, brokerage, and other related assets (managed and non-managed).
(4)	Includes insurance revenues recorded in other lines of business.
(5)	Prior period data has been adjusted to conform to current period presentation.
(6)	A.M. Best maintained A ratings with a stable outlook.

23

Corporate Line of Business Information

	2004						2003 (5)									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
INCOME STATEMENT DATA($ millions)
Net interest income (expense) — FTE (1)	$	(255	)	$	(214	)	$	(129	)	$	(78	)	$	(61	)	$	(41	)		(19	)%	$	(194	)		N/M
Banking fees and commissions		(14	)		(14	)		(15	)		(20	)		(30	)		—			—			16			53
Credit card revenue		—			—			1			(1	)		—			—			N/M			—			N/M
Service charges on deposits		—			(1	)		1			—			(1	)		1			N/M			1			N/M
Fiduciary and investment management fees		6			6			8			8			8			—			—			(2	)		(25	)
Investment securities gains (losses)		(89	)		122			(173	)		37			154			(211	)		N/M			(243	)		N/M
Trading gains (losses)		25			3			(9	)		(7	)		(1	)		22			N/M			26			N/M
Other income (loss)		99			142			37			(105	)		48			(43	)		(30	)		51			N/M
Total noninterest (loss) income		27			258			(150	)		(88	)		178			(231	)		(90	)		(151	)		(85	)
Total revenue, net of interest expense		(228	)		44			(279	)		(166	)		117			(272	)		N/M			(345	)		N/M
Provision for credit losses		15			46			471			78			155			(31	)		(67	)		(140	)		(90	)
Salaries and employee benefits (2)		285			285			210			235			246			—			—			39			16
Other expense (income) (2)		(32	)		(25	)		75			(53	)		(43	)		(7	)		(28	)		11			25
Total noninterest expense		253			260			285			182			203			(7	)		(3	)		50			25
Loss before income tax benefit		(496	)		(262	)		(1,035	)		(426	)		(241	)		(234	)		(89	)		(255	)		N/M
Applicable income tax benefit		(211	)		(135	)		(402	)		(169	)		(108	)		(76	)		(56	)		(103	)		(95	)
Income (Loss) from continuing operations, net of tax benefit	$	(285	)		(127	)		(633	)		(257	)		(133	)	$	(158	)		N/M		$	(152	)		N/M
Discontinued Operations
Income from discontinued operations		(5	)		1			604			14			14			(6	)		N/M			(19	)		N/M
Applicable income taxes		(1	)		—			219			5			5			(1	)		N/M			(6	)		N/M
Income from discontinued operations, net of taxes	$	(4	)		1			385			9			9		$	(5	)		N/M		$	(13	)		N/M
Net loss	$	(289	)	$	(126	)	$	(248	)	$	(248	)	$	(124	)	$	(163	)		N/M		$	(165	)		N/M
Headcount (2)		14,951			15,081			14,261			14,693			15,256			(130	)		(1	)%		(305	)		(2	)%
ENDING BALANCES($ millions)
Loans (3)	$	5,851		$	7,172		$	8,745		$	10,470		$	12,434		$	(1,321	)		(18	)%	$	(6,583	)		(53	)%
Assets		61,414			71,303			69,871			70,704			82,192			(9,889	)		(14	)		(20,778	)		(25	)
Memo
Treasury investments		25,587			40,362			39,281			40,545			45,258			(14,775	)		(37	)		(19,671	)		(43	)
Principal investments		2,960			2,914			3,213			2,912			2,600			46			2			360			14
Deposits		8,873			10,102			11,301			13,235			12,821			(1,229	)		(12	)		(3,948	)		(31	)
Equity		4,016			4,458			3,279			2,272			2,718			(442	)		(10	)		1,298			48

24

Corporate Line of Business Information

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
AVERAGE BALANCES($ millions)
Loans	$	6,587		$	8,317		$	9,763		$	11,232		$	13,016		$	(1,730	)		(21	)%	$	(6,429	)		(49	)%
Assets		62,445			66,855			67,872			71,001			70,150			(4,410	)		(7	)		(7,705	)		(11	)
Deposits		9,080			10,333			11,053			12,321			12,598			(1,253	)		(12	)		(3,518	)		(28	)
Equity		3,871			4,027			2,977			2,477			2,922			(156	)		(4	)		949			32
CREDIT QUALITY($ millions)
Net charge-offs		13			56			717			82			83			(43	)		(77	)		(70	)		(84	)
Nonperforming assets
Nonperforming loans (4)		287			433			582			673			719			(146	)		(34	)		(432	)		(60	)
Other, including other real estate owned (“OREO”)		49			66			78			56			3			(17	)		(26	)		46			N/M
Total nonperforming assets		336			499			660			729			722			(163	)		(33	)		(386	)		(53	)
Allowance for loan losses($ millions)		140			138			148			394			398			2			1			(258	)		(65	)
Allowance for loan losses to period-end loans		3.64	%		2.94	%		2.76	%		3.77	%		3.21	%		0.70	%					0.43	%
Allowance for loan losses to nonperforming loans (4)		73			55			43			59			56			18						17
Nonperforming assets to related assets		5.69			6.89			7.48			6.93			5.81			(1.20	)					(0.12	)

NOTES:

(1)	Net interest income-FTE includes taxable equivalent adjustments of $8 million, $7 million, $10 million, $7 million, and $9 million for the quarters ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively.
(2)	Reflects the transfer of certain technology and operations functions from Commercial Banking and Investment Management Group during the first quarter of 2004.
(3)	Loans include loans held for sale of $2,003 million, $2,479 million, $3,389 million, $17 million, and $18 million, at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. These amounts are not included in allowance coverage statistics.
(4)	Nonperforming loans include loans held for sale of $95 million, $181 million, $239 million, $5 million and $3 million at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. These amounts are not included in allowance coverage statistics.
(5)	Prior period data has been adjusted for the transfer of community development activities to the Commercial Banking line of business.

25

Consolidated Balance Sheets — Reported Basis

	2004						2003									Change from
	June 30			Mar 31			Dec 31			Sept 30			June 30			Mar 31, 2004						June 30, 2003
																Amt			%			Amt			%
ASSETS($ millions)
Cash and due from banks	$	14,669		$	15,675		$	17,089		$	16,814		$	19,529		$	(1,006	)		(6	)%	$	(4,860	)		(25	)%
Interest-bearing due from banks		7,310			4,780			3,093			3,486			5,909			2,530			53			1,401			24
Federal funds sold and securities purchased under resale agreements		12,163			10,129			15,551			13,786			21,639			2,034			20			(9,476	)		(44	)
Trading assets		3,132			8,721			11,584			13,626			11,478			(5,589	)		(64	)		(8,346	)		(73	)
Derivative product assets		5,105			5,464			5,208			5,603			5,343			(359	)		(7	)		(238	)		(4	)
Investment securities		73,097			86,884			84,951			76,145			75,177			(13,787	)		(16	)		(2,080	)		(3	)
Interests in purchased receivables		30,184			28,912			32,938			—			—			1,272			4			30,184			N/M
Loans (1)		135,034			137,529			138,147			141,710			144,583			(2,495	)		(2	)		(9,549	)		(7	)
Allowance for loan losses		(3,123	)		(3,323	)		(3,472	)		(3,907	)		(3,962	)		200			6			839			21
Loans, net		131,911			134,206			134,675			137,803			140,621			(2,295	)		(2	)		(8,710	)		(6	)
Premises and equipment		3,174			3,061			2,960			2,731			2,605			113			4			569			22
Goodwill		2,057			2,061			2,061			2,005			1,893			(4	)		—			164			9
Other intangible assets		697			717			758			804			777			(20	)		(3	)		(80	)		(10	)
Other assets		15,804			18,980			15,695			17,670			15,028			(3,176	)		(17	)		776			5
Total assets	$	299,303		$	319,590		$	326,563		$	290,473		$	299,999		$	(20,287	)		(6	)%	$	(696	)		0	%
LIABILITIES($ millions)
Deposits:
Demand	$	21,495		$	23,710		$	24,485		$	25,191		$	34,361		$	(2,215	)		(9	)%	$	(12,866	)		(37	)%
Savings		107,056			103,671			99,175			96,170			95,221			3,385			3			11,835			12
Time		21,226			22,054			22,942			24,263			25,977			(828	)		(4	)		(4,751	)		(18	)
Foreign offices		14,698			16,505			18,019			17,787			16,456			(1,807	)		(11	)		(1,758	)		(11	)
Total deposits		164,475			165,940			164,621			163,411			172,015			(1,465	)		(1	)		(7,540	)		(4	)
Federal funds purchased and securities sold under repurchase agreements		7,256			14,803			20,573			24,464			25,382			(7,547	)		(51	)		(18,126	)		(71	)
Other short-term borrowings		38,317			41,042			47,740			11,098			13,526			(2,725	)		(7	)		24,791			N/M
Long-term debt		42,483			45,312			46,764			44,225			46,070			(2,829	)		(6	)		(3,587	)		(8	)
Insurance policy and claims reserves		6,476			6,783			6,713			6,496			219			(307	)		(5	)		6,257			N/M
Derivative product liabilities		3,782			4,244			4,050			4,688			4,188			(462	)		(11	)		(406	)		(10	)
Other liabilities		12,358			16,868			12,683			13,680			16,342			(4,510	)		(27	)		(3,984	)		(24	)
Total liabilities		275,147			294,992			303,144			268,062			277,742			(19,845	)		(7	)		(2,595	)		(1	)
STOCKHOLDERS’ EQUITY($ millions)
Common stock	$	12		$	12		$	12		$	12		$	12		$	—			0	%	$	—			0	%
Surplus		10,533			10,518			10,290			10,254			10,240			15			—			293			3
Retained earnings		16,850			16,242			15,514			14,816			14,213			608			4			2,637			19
Accumulated other adjustments to stockholders’ equity		(192	)		340			127			(75	)		(76	)		(532	)		N/M			(116	)		N/M
Deferred compensation		(277	)		(332	)		(189	)		(220	)		(245	)		55			17			(32	)		(13	)
Treasury stock		(2,770	)		(2,182	)		(2,335	)		(2,376	)		(1,887	)		(588	)		(27	)		(883	)		(47	)
Total stockholders’ equity		24,156			24,598			23,419			22,411			22,257			(442	)		(2	)		1,899			9
Total liabilities and stockholders’ equity	$	299,303		$	319,590		$	326,563		$	290,473		$	299,999		$	(20,287	)		(6	)%	$	(696	)		0	%
Common Shares — period-end(millions)
Issued		1,181			1,181			1,181			1,181			1,181			—			—			—			—
Treasury shares		66			56			61			63			51			10			18			15			29
Outstanding		1,115			1,125			1,120			1,118			1,130			(10	)		(1	)		(15	)		(1	)

NOTES:

(1) Loans include loans held for sale of $8.0 billion, $11.1 billion, $12.0 billion, $10.7 billion, and $10.2 billion, at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. These amounts are not included in allowance coverage ratios.

26

Credit Quality Statistics — Reported Basis

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
($ millions)
Provision for credit losses	$	49		$	141		$	672		$	416		$	461		$	(92	)		(65	)%	$	(412	)		(89	)%
Gross charge-offs		328			385			1,206			642			618			(57	)		(15	)		(290	)		(47	)
Recoveries		104			113			122			102			129			(9	)		(8	)		(25	)		(19	)
Total net charge-offs		224			272			1,084			540			489			(48	)		(18	)		(265	)		(54	)
Net charge-offs (recoveries)
Retail		83			95			148			144			113			(12	)		(13	)		(30	)		(27	)
Commercial Banking
Corporate Banking		(13	)		(19	)		28			56			63			6			32			(76	)		N/M
Middle Market Banking		1			11			38			43			42			(10	)		(91	)		(41	)		(98	)
Total Commercial Banking		(12	)		(8	)		66			99			105			(4	)		(50	)		(117	)		N/M
Card Services		140			131			153			211			182			9			7			(42	)		(23	)
Investment Management Group		—			(2	)		—			4			6			2			N/M			(6	)		N/M
Corporate		13			56			717			82			83			(43	)		(77	)		(70	)		(84	)
Total net charge-offs		224			272			1,084			540			489			(48	)		(18	)		(265	)		(54	)
Memo: Card Services — Managed Basis		1,028			999			1,013			984			951			29			3			77			8
Net charge-off (recovery) ratios
Retail		0.58	%		0.66	%		1.06	%		1.05	%		0.85	%		(0.08	)%					(0.27	)%
Commercial Banking:
Corporate Banking		(0.20	)		(0.28	)		0.41			0.81			0.86			0.08						(1.06	)
Middle Market Banking		0.01			0.17			0.57			0.62			0.58			(0.16	)					(0.57	)
Total Commercial Banking		(0.09	)		(0.06	)		0.49			0.72			0.72			(0.03	)					(0.81	)
Card Services		4.48			4.24			4.62			5.13			5.17			0.24						(0.69	)
Investment Management Group		—			(0.11	)		—			0.24			0.36			0.11						(0.36	)
Corporate		0.79			2.69			29.38			2.92			2.55			(1.90	)					(1.76	)
Total net charge-off (recovery) ratio		0.65			0.78			3.11			1.50			1.35			(0.13	)					(0.70	)
Memo: Card Services — Managed Basis		5.44			5.35			5.43			5.30			5.21			0.09						0.23
Allowance for loan losses — period-end	$	3,123		$	3,323		$	3,472		$	3,907		$	3,962		$	(200	)		(6	)%	$	(839	)		(21	)%
Allowance for credit losses — period-end (2)		3,631			3,831			3,962			4,374			4,498			(200	)		(5	)		(867	)		(19	)

27

Credit Quality Statistics — Reported Basis

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
($ millions)
Nonperforming assets — period-end
Nonperforming loans
Retail	$	476		$	504		$	540		$	573		$	570			(28	)		(6	)		(94	)		(16	)
Commercial Banking
Corporate Banking		164			236			321			526			705			(72	)		(31	)		(541	)		(77	)
Middle Market Banking		461			584			715			861			988			(123	)		(21	)		(527	)		(53	)
Total Commercial Banking		625			820			1,036			1,387			1,693			(195	)		(24	)		(1,068	)		(63	)
Investment Management Group		42			44			42			74			80			(2	)		(5	)		(38	)		(48	)
Corporate		287			433			582			673			719			(146	)		(34	)		(432	)		(60	)
Total nonperforming loans (1)		1,430			1,801			2,200			2,707			3,062			(371	)		(21	)		(1,632	)		(53	)
Other, including other real estate owned		128			156			195			214			245			(28	)		(18	)		(117	)		(48	)
Total nonperforming assets	$	1,558		$	1,957		$	2,395		$	2,921		$	3,307		$	(399	)		(20	)%	$	(1,749	)		(53	)%
Nonperforming assets to related assets		1.15	%		1.42	%		1.73	%		2.06	%		2.28	%		(0.27	)%					(1.13	)%
Allowance for loan losses to period-end loans		2.46			2.63			2.75			2.98			2.95			(0.17	)					(0.49	)
Allowance for loan losses to nonperforming loans (1)		236			205			178			145			130			31						106
Allowance for credit losses to period-end loans (2)		2.86			3.03			3.14			3.34			3.35			(0.17	)					(0.49	)
Allowance for credit losses to nonperforming loans (1) (2)		275			237			203			162			147			38						128
Credit card delinquency rate
Reported Basis
30+ days		2.71			3.05			3.31			3.82			3.22			(0.34	)					(0.51	)
90+ days		1.27			1.46			1.55			1.78			1.49			(0.19	)					(0.22	)
Managed Basis
30+ days		3.37			3.75			3.90			3.98			3.95			(0.38	)					(0.58	)
90+ days		1.60			1.82			1.85			1.85			1.85			(0.22	)					(0.25	)
COMMERCIAL LOAN SALES($ millions)
Loans sold and loans transferred to loans
held for sale
Nonperforming loans	$	—		$	55		$	36		$	132		$	28		$	(55	)		N/M		$	(28	)		N/M
Other loans with credit related losses		18			59			241			121			217			(41	)		(69	)		(199	)		(92	)
Other loans		460			128			105			4			41			332			N/M			419			N/M
Total	$	478		$	242		$	382		$	257		$	286		$	236			98	%	$	192			67	%
Impact of sales, transfers to loans held for sale
and valuation adjustments on held for sale
Charge-offs on loans sold and transferred to held
for sale: (3) (4)
Nonperforming loans	$	—		$	7		$	3		$	22		$	1		$	(7	)		N/M		$	(1	)		N/M
Other loans with credit related losses		—			1			6			11			21			(1	)		N/M			(21	)		N/M
Total charge-offs to allowance		—			8			9			33			22			(8	)		N/M			(22	)		N/M
(Gains) on loans sold and held for sale		(12	)		(14	)		(34	)		(25	)		(14	)		2			14			2			14
Total	$	(12	)	$	(6	)	$	(25	)	$	8		$	8		$	(6	)		N/M		$	(20	)		N/M

NOTES:

(1)	Nonperforming loans include loans held for sale of $109 million, $183 million, $244 million, $10 million, and $11 million at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively. These amounts are not included in allowance coverage statistics.
(2)	The allowance for credit losses includes the allowance for loan losses of $3,123 million, $3,323 million, $3,472 million, $3,907 million, and $3,962 million and reserve for unfunded lending commitments and standby letters of credit which is included in other liabilities of $508 million, $508 million, $490 million, $467 million, and $536 million, at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively.
(3)	These charge-offs are included in Commercial Banking net charge-offs.
(4)	When loans are reclassified to loans held for sale appropriate charge-offs are recorded. Subsequent write-downs in market value on loans held for sale are reflected in other income / loss.

28

Capital and Intangible Assets

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
SELECTED CAPITAL RATIOS
Regulatory risk-based capital
Tier 1 capital	$	25,593		$	25,462		$	24,499		$	23,708		$	23,721		$	131			(1	)%	$	1,872			8	%
Tier 2 capital		8,910			8,954			9,135			9,180			9,316			(44	)		—			(406	)		(4	)
Total capital	$	34,503		$	34,416		$	33,634		$	32,888		$	33,037		$	87			0	%	$	1,466			4	%
Total risk-weighted assets	$	255,385		$	249,247		$	245,441		$	243,130		$	243,779		$	6,138			2	%	$	11,606			5	%
Risk-based capital ratios
Tier 1		10.0	%		10.2	%		10.0	%		9.8	%		9.7	%		(0.2	)%					0.3	%
Total		13.5			13.8			13.7			13.5			13.6			(0.3	)					(0.1	)
Leverage ratio		8.5			8.1			8.8			8.4			8.7			0.4						(0.2	)
INTANGIBLE ASSETS($ millions)
Goodwill	$	2,057		$	2,061		$	2,061		$	2,005		$	1,893		$	(4	)		0	%	$	164			9	%
Other nonqualifying intangibles		262			281			290			302			303			(19	)		(7	)		(41	)		(14	)
Subtotal		2,319			2,342			2,351			2,307			2,196			(23	)		(1	)		123			6
Qualifying intangibles		435			436			468			502			474			(1	)		—			(39	)		(8	)
Total intangibles	$	2,754		$	2,778		$	2,819		$	2,809		$	2,670		$	(24	)		(1	)%	$	84			3	%

29

Average Balance Sheets, Yields & Rates — Reported Basis

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
AVERAGE BALANCE SHEET($ millions)
Assets
Short-term investments	$	11,994		$	14,008		$	16,316		$	17,029		$	17,775		$	(2,014	)		(14	)%	$	(5,781	)		(33	)%
Trading assets		6,236			10,187			12,139			11,669			10,211			(3,951	)		(39	)		(3,975	)		(39	)
Investment securities
U.S. government and federal agency		32,991			37,483			35,817			36,937			33,356			(4,492	)		(12	)		(365	)		(1	)
States and political subdivisions		972			1,311			1,300			1,278			1,237			(339	)		(26	)		(265	)		(21	)
Other		48,157			45,556			38,662			33,523			32,142			2,601			6			16,015			50
Total investment securities		82,120			84,350			75,779			71,738			66,735			(2,230	)		(3	)		15,385			23
Interests in purchased receivables (1)		28,982			31,145			358			—			—			(2,163	)		(7	)		28,982			N/M
Loans (2)		136,932			138,652			139,741			144,162			144,635			(1,720	)		(1	)		(7,703	)		(5	)
Total earning assets		266,264			278,342			244,333			244,598			239,356			(12,078	)		(4	)		26,908			11
Allowance for loan losses		(3,258	)		(3,446	)		(3,676	)		(4,012	)		(3,999	)		188			5			741			19
Other assets — nonearning		42,138			42,697			41,089			43,090			41,452			(559	)		(1	)		686			2
Total assets	$	305,144		$	317,593		$	281,746		$	283,676		$	276,809		$	(12,449	)		(4	)%	$	28,335			10	%
Liabilities and Stockholders’ Equity
Deposits — interest-bearing (3)
Savings	$	11,211		$	10,732		$	10,483		$	10,453		$	10,260		$	479			4	%	$	951			9	%
Money market		72,689			69,419			66,925			64,728			62,881			3,270			5			9,808			16
Time		21,602			22,467			23,471			25,014			27,104			(865	)		(4	)		(5,502	)		(20	)
Foreign offices (4)		14,947			16,328			16,085			16,244			15,985			(1,381	)		(8	)		(1,038	)		(6	)
Total deposits — interest-bearing		120,449			118,946			116,964			116,439			116,230			1,503			1			4,219			4
Federal funds purchased and securities sold under repurchase agreements		11,209			16,914			21,491			23,003			20,383			(5,705	)		(34	)		(9,174	)		(45	)
Other short-term borrowings (1)		38,917			44,454			10,935			11,216			13,413			(5,537	)		(12	)		25,504			N/M
Long-term debt (5)		43,975			46,285			44,313			45,248			45,014			(2,310	)		(5	)		(1,039	)		(2	)
Total interest-bearing liabilities		214,550			226,599			193,703			195,906			195,040			(12,049	)		(5	)		19,510			10
Noninterest-bearing deposits		44,461			44,051			43,156			45,995			44,077			410			1			384			1
Other liabilities		22,122			22,776			21,770			19,563			15,230			(654	)		(3	)		6,892			45
Common stockholders’ equity		24,011			24,167			23,117			22,212			22,462			(156	)		(1	)		1,549			7
Total liabilities and equity	$	305,144		$	317,593		$	281,746		$	283,676		$	276,809		$	(12,449	)		(4	)%	$	28,335			10	%

30

Average Balance Sheets, Yields & Rates — Reported Basis

	2004				2003						Change from
	2nd Qtr		1st Qtr		4th Qtr			3rd Qtr		2nd Qtr	1Q04						2Q03
											Amt			%			Amt			%
INCOME / EXPENSE($ millions)
Assets
Short-term investments	$	39	$	40	$	43	$	41	$	50	$	(1	)		(3	)%	$	(11	)		(22	)%
Trading assets (6)		62		95		107		100		87		(33	)		(35	)		(25	)		(29	)
Investment securities (6)
U.S. government and federal agency		473		455		393		366		336		18			4			137			41
States and political subdivisions		17		21		22		21		21		(4	)		(19	)		(4	)		(19	)
Other		565		557		538		466		444		8			1			121			27
Total investment securities		1,055		1,033		953		853		801		22			2			254			32
Interests in purchased receivables (1)		90		93		—		—		—		(3	)		(3	)		90			N/M
Loans (2) (6)		1,972		2,081		2,114		2,219		2,231		(109	)		(5	)		(259	)		(12	)
Total earning assets	$	3,218	$	3,342	$	3,217	$	3,213	$	3,169	$	(124	)		(4	)%	$	49			2	%
Liabilities
Deposits — interest-bearing (3)
Savings	$	13	$	13	$	13	$	19	$	14	$	—			0	%	$	(1	)		(7	)%
Money market		187		171		166		154		171		16			9			16			9
Time		210		227		231		251		274		(17	)		(7	)		(64	)		(23	)
Foreign offices (4)		54		61		59		59		65		(7	)		(11	)		(11	)		(17	)
Total deposits — interest-bearing		464		472		469		483		524		(8	)		(2	)		(60	)		(11	)
Federal funds purchased and securities sold
under repurchase agreements		38		53		66		70		73		(15	)		(28	)		(35	)		(48	)
Other short-term borrowings (1)		147		171		83		81		90		(24	)		(14	)		57			63
Long-term debt (5)		383		397		445		452		473		(14	)		(4	)		(90	)		(19	)
Total interest-bearing liabilities	$	1,032	$	1,093	$	1,063	$	1,086	$	1,160	$	(61	)		(6	)%	$	(128	)		(11	)%
Interest income	$	3,218	$	3,342	$	3,217	$	3,213	$	3,169	$	(124	)		(4	)%	$	49			2	%
Interest expense		1,032		1,093		1,063		1,086		1,160		(61	)		(6	)		(128	)		(11	)
Net interest income	$	2,186	$	2,249	$	2,154	$	2,127	$	2,009	$	(63	)		(3	)%	$	177			9	%

31

Average Balance Sheets, Yields & Rates — Reported Basis

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04				2Q03
																Amt			%	Amt			%
YIELDS AND RATES
Assets
Short-term investments		1.31	%		1.15	%		1.05	%		0.96	%		1.13	%		0.16	%			0.18	%
Trading assets (6)		4.00			3.75			3.50			3.40			3.42			0.25				0.58
Investment securities (6)
U.S. government and federal agency		5.77			4.88			4.35			3.93			4.04			0.89				1.73
States and political subdivisions		7.03			6.44			6.71			6.52			6.81			0.59				0.22
Other		4.72			4.92			5.52			5.52			5.54			(0.20	)			(0.82	)
Total investment securities		5.17			4.93			4.99			4.72			4.81			0.24				0.36
Interests in purchased receivables (1)		1.25			1.20			—			—			—			0.05				1.25
Loans (2)		5.79			6.04			6.00			6.11			6.19			(0.25	)			(0.40	)
Total earning assets		4.86			4.83			5.22			5.21			5.31			0.03				(0.45	)
Liabilities
Deposits — interest-bearing (3)
Savings		0.47			0.49			0.49			0.72			0.55			(0.02	)			(0.08	)
Money market		1.03			0.99			0.98			0.94			1.09			0.04				(0.06	)
Time		3.91			4.06			3.90			3.98			4.05			(0.15	)			(0.14	)
Foreign offices (4)		1.45			1.50			1.46			1.44			1.63			(0.05	)			(0.18	)
Total deposits — interest-bearing		1.55			1.60			1.59			1.65			1.81			(0.05	)			(0.26	)
Federal funds purchased and securities sold
under repurchase agreements		1.36			1.26			1.22			1.21			1.44			0.10				(0.08	)
Other short-term borrowings (1)		1.52			1.55			3.01			2.87			2.69			(0.03	)			(1.17	)
Long-term debt (5)		3.50			3.45			3.98			3.96			4.21			0.05				(0.71	)
Total interest-bearing liabilities		1.93			1.94			2.18			2.20			2.39			(0.01	)			(0.46	)
Interest income/earning assets		4.86			4.83			5.22			5.21			5.31			0.03				(0.45	)
Interest expense/earning assets		1.56			1.58			1.72			1.76			1.94			(0.02	)			(0.38	)
Net interest margin		3.30	%		3.25	%		3.50	%		3.45	%		3.37	%		0.05	%			(0.07	)%

NOTES:

(1)	Impacted by the adoption of FIN 46.
(2)	Nonperforming loans are included in average balances used to determine average rate.
(3)	On a consolidated basis, demand deposits are routinely swept into money market deposits. On a line of business basis, balances are presented without the impact of the sweeps. Certain prior data has been adjusted to conform with current period presentation.
(4)	Includes international banking facility deposit balances in domestic offices and balances of Edge Act and overseas offices.
(5)	Includes trust preferred capital securities.
(6)	Includes tax-equivalent adjustments based on federal income tax rate of 35%.

32

Average Balance Sheets, Yields & Rates — YTD — Reported Basis

	Six Months Ended June 30
	2004								2003
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
AVERAGE BALANCE SHEET($ millions)
Assets
Short-term investments	$	13,001		$	79		1.22	%	$	17,723		$	104		1.18	%
Trading assets (1)		8,212			157		3.84			9,318			161		3.48
Investment securities (1)
U.S. government and federal agency		35,237			928		5.30			31,206			616		3.98
States and political subdivisions		1,142			38		6.69			1,203			41		6.87
Other		46,856			1,122		4.82			33,489			925		5.57
Total investment securities		83,235			2,088		5.04			65,898			1,582		4.84
Interests in purchased receivables		30,063			183		1.22			—			—		—
Loans (2)		137,792			4,053		5.92			145,522			4,546		6.30
Total earning assets		272,303		$	6,560		4.84			238,461		$	6,393		5.41
Allowance for loan losses		(3,352	)							(3,979	)
Other assets — nonearning		42,417								40,179
Total assets	$	311,368							$	274,661
Liabilities and Stockholders’ Equity
Deposits — interest-bearing (3)
Savings	$	10,972		$	26		0.48	%	$	9,963		$	28		0.57	%
Money market		71,054			358		1.01			60,409			345		1.15
Time		22,034			437		3.99			28,246			580		4.14
Foreign offices (4)		15,636			115		1.48			15,149			126		1.68
Total deposits — interest-bearing		119,696			936		1.57			113,767			1,079		1.91
Federal funds purchased and securities sold
under repurchase agreements		14,062			91		1.30			18,634			135		1.46
Other short-term borrowings		41,685			318		1.53			12,925			177		2.76
Long-term debt (5)		45,130			780		3.48			44,823			972		4.37
Total interest-bearing liabilities		220,573		$	2,125		1.94			190,149		$	2,363		2.51
Noninterest-bearing deposits		44,257								46,815
Other liabilities		22,449								15,156
Common stockholders’ equity		24,089								22,541
Total liabilities and equity	$	311,368							$	274,661
Interest income/earning assets				$	6,560		4.84					$	6,393		5.41
Interest expense/earning assets					2,125		1.56						2,363		2.00
Net interest margin				$	4,435		3.28	%				$	4,030		3.41	%

NOTES:

(1)	Includes tax-equivalent adjustments based on federal income tax rate of 35%.
(2)	Nonperforming loans are included in average balances used to determine average rate.
(3)	On a consolidated basis, demand deposits are routinely swept overnight into money market deposits. On a line of business basis, balances are presented without the impact of the sweeps. Certain prior period data has been adjusted to conform with current period presentation.
(4)	Includes international banking facility deposit balances in domestic offices and balances of Edge Act and overseas offices.
(5)	Includes trust preferred capital securities.

33

Average Balance Sheets, Yields & Rates — Managed Basis

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04						2Q03
																Amt			%			Amt			%
AVERAGE BALANCE SHEET($ millions)
Assets
Short-term investments	$	11,994		$	14,008		$	16,316		$	17,029		$	17,775		$	(2,014	)		(14	)%	$	(5,781	)		(33	)%
Trading assets		6,236			10,187			12,139			11,669			10,211			(3,951	)		(39	)		(3,975	)		(39	)
Investment securities U.S. government and federal agency		32,991			37,483			35,817			36,937			33,356			(4,492	)		(12	)		(365	)		(1	)
States and political subdivisions		972			1,311			1,300			1,278			1,237			(339	)		(26	)		(265	)		(21	)
Other		19,921			19,758			15,604			12,268			9,420			163			1			10,501			N/M
Total investment securities		53,884			58,552			52,721			50,483			44,013			(4,668	)		(8	)		9,871			22
Interests in purchased receivables (1)		28,982			31,145			358			—			—			(2,163	)		(7	)		28,982			N/M
Managed loans (2)		200,069			200,933			200,815			202,020			203,580			(864	)		—			(3,511	)		(2	)
Total managed earning assets		301,165			314,825			282,349			281,201			275,579			(13,660	)		(4	)		25,586			9
Allowance for loan losses		(3,258	)		(3,446	)		(3,676	)		(4,012	)		(3,999	)		188			5			741			19
Other assets — nonearning		41,193			41,843			40,384			42,516			40,893			(650	)		(2	)		300			1
Managed total assets	$	339,100		$	353,222		$	319,057		$	319,705		$	312,473		$	(14,122	)		(4	)%	$	26,627			9	%
Liabilities and Stockholders’ Equity
Deposits — interest-bearing (3) Savings	$	11,211		$	10,732		$	10,483		$	10,453		$	10,260		$	479			4	%	$	951			9	%
Money market		72,689			69,419			66,925			64,728			62,881			3,270			5			9,808			16
Time		21,602			22,467			23,471			25,014			27,104			(865	)		(4	)		(5,502	)		(20	)
Foreign offices (4)		14,947			16,328			16,085			16,244			15,985			(1,381	)		(8	)		(1,038	)		(6	)
Total deposits — interest-bearing		120,449			118,946			116,964			116,439			116,230			1,503			1			4,219			4
Federal funds purchased and securities sold under repurchase agreements		11,209			16,914			21,491			23,003			20,383			(5,705	)		(34	)		(9,174	)		(45	)
Managed other short-term borrowings (1)		72,873			80,083			48,246			47,245			49,077			(7,210	)		(9	)		23,796			48
Long-term debt (5)		43,975			46,285			44,313			45,248			45,014			(2,310	)		(5	)		(1,039	)		(2	)
Total managed interest-bearing liabilities		248,506			262,228			231,014			231,935			230,704			(13,722	)		(5	)		17,802			8
Noninterest-bearing deposits		44,461			44,051			43,156			45,995			44,077			410			1			384			1
Other liabilities		22,122			22,776			21,770			19,563			15,230			(654	)		(3	)		6,892			45
Common stockholders’ equity		24,011			24,167			23,117			22,212			22,462			(156	)		(1	)		1,549			7
Total managed liabilities and equity	$	339,100		$	353,222		$	319,057		$	319,705		$	312,473		$	(14,122	)		(4	)%	$	26,627			9	%

34

Average Balance Sheets, Yields & Rates — Managed Basis

	2004				2003						Change from
	2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr		1Q04						2Q03
											Amt			%			Amt			%
INCOME / EXPENSE($ millions)
Assets
Short-term investments	$	39	$	40	$	43	$	41	$	50	$	(1	)		(3	)%	$	(11	)		(22	)%
Trading assets (6)		62		95		107		100		87		(33	)		(35	)		(25	)		(29	)
Investment securities (6)
U.S. government and federal agency		473		455		393		366		336		18			4			137			41
States and political subdivisions		17		21		22		21		21		(4	)		(19	)		(4	)		(19	)
Other		100		134		161		115		80		(34	)		(25	)		20			25
Total investment securities		590		610		576		502		437		(20	)		(3	)		153			35
Interests in purchased receivables (1)		90		93		—		—		—		(3	)		(3	)		90			N/M
Managed loans (2) (6)		3,863		3,932		3,933		3,920		3,916		(69	)		(2	)		(53	)		(1	)
Total managed earning assets	$	4,644	$	4,770	$	4,659	$	4,563	$	4,490	$	(126	)		(3	)%	$	154			3	%
Liabilities
Deposits — interest-bearing (3)
Savings	$	13	$	13	$	13	$	19	$	14	$	—			0	%	$	(1	)		(7	)%
Money market		187		171		166		154		171		16			9			16			9
Time		210		227		231		251		274		(17	)		(7	)		(64	)		(23	)
Foreign offices (4)		54		61		59		59		65		(7	)		(11	)		(11	)		(17	)
Total deposits — interest-bearing		464		472		469		483		524		(8	)		(2	)		(60	)		(11	)
Federal funds purchased and securities sold under repurchase agreements		38		53		66		70		73		(15	)		(28	)		(35	)		(48	)
Managed other short-term borrowings (1)		297		325		250		240		255		(28	)		(9	)		42			16
Long-term debt (5)		383		397		445		452		473		(14	)		(4	)		(90	)		(19	)
Total managed interest-bearing liabilities	$	1,182	$	1,247	$	1,230	$	1,245	$	1,325	$	(65	)		(5	)%	$	(143	)		(11	)%
Managed interest income	$	4,644	$	4,770	$	4,659	$	4,563	$	4,490	$	(126	)		(3	)%	$	154			3	%
Managed interest expense		1,182		1,247		1,230		1,245		1,325		(65	)		(5	)		(143	)		(11	)
Managed net interest income	$	3,462	$	3,523	$	3,429	$	3,318	$	3,165	$	(61	)		(2	)%	$	297			9	%

35

Average Balance Sheets, Yields & Rates — Managed Basis

	2004						2003									Change from
	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1Q04				2Q03
																Amt			%	Amt			%
YIELDS AND RATES
Assets
Short-term investments		1.31	%		1.15	%		1.05	%		0.96	%		1.13	%		0.16	%			0.18	%
Trading assets (6)		4.00			3.75			3.50			3.40			3.42			0.25				0.58
Investment securities (6)
U.S. government and federal agency		5.77			4.88			4.35			3.93			4.04			0.89				1.73
States and political subdivisions		7.03			6.44			6.71			6.52			6.81			0.59				0.22
Other		2.02			2.73			4.09			3.72			3.41			(0.71	)			(1.39	)
Total investment securities		4.40			4.19			4.33			3.95			3.98			0.21				0.42
Interests in purchased receivables (1)		1.25			1.20			—			—			—			0.05				1.25
Managed loans (2)		7.77			7.87			7.77			7.70			7.72			(0.10	)			0.05
Total managed earning assets		6.20			6.09			6.55			6.44			6.54			0.11				(0.34	)
Liabilities
Deposits — interest-bearing (3)
Savings		0.47			0.49			0.49			0.72			0.55			(0.02	)			(0.08	)
Money market		1.03			0.99			0.98			0.94			1.09			0.04				(0.06	)
Time		3.91			4.06			3.90			3.98			4.05			(0.15	)			(0.14	)
Foreign offices (4)		1.45			1.50			1.46			1.44			1.63			(0.05	)			(0.18	)
Total deposits — interest-bearing		1.55			1.60			1.59			1.65			1.81			(0.05	)			(0.26	)
Federal funds purchased and securities sold
under repurchase agreements		1.36			1.26			1.22			1.21			1.44			0.10				(0.08	)
Managed other short-term borrowings (1)		1.64			1.63			2.06			2.02			2.08			0.01				(0.44	)
Long-term debt (5)		3.50			3.45			3.98			3.96			4.21			0.05				(0.71	)
Total managed interest-bearing liabilities		1.91			1.91			2.11			2.13			2.30			—				(0.39	)
Managed interest income/managed earning assets		6.20			6.09			6.55			6.44			6.54			0.11				(0.34	)
Managed interest expense/managed earning assets		1.58			1.59			1.73			1.76			1.93			(0.01	)			(0.35	)
Managed net interest margin		4.62	%		4.50	%		4.82	%		4.68	%		4.61	%		0.12	%			0.01	%

NOTES:

(1)	Impacted by the adoption of FIN 46.
(2)	Nonperforming loans are included in average balances used to determine average rate.
(3)	On a consolidated basis, demand deposits are routinely swept into money market deposits. On a line of business basis, balances are presented without the impact of the sweeps. Certain prior data has been adjusted to conform with current period presentation.
(4)	Includes international banking facility deposit balances in domestic offices and balances of Edge Act and overseas offices.
(5)	Includes trust preferred capital securities.
(6)	Includes tax-equivalent adjustments based on federal income tax rate of 35%.

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Average Balance Sheets, Yields & Rates — YTD — Managed Basis

	Six Months Ended June 30
	2004								2003
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Rate			Balance			Expense		Rate
AVERAGE BALANCE SHEET($ millions)
Assets
Short-term investments	$	13,001		$	79		1.22	%	$	17,723		$	104		1.18	%
Trading assets (1)		8,212			157		3.84			9,318			161		3.48
Investment securities (1)
U.S. government and federal agency		35,237			928		5.30			31,206			616		3.98
States and political subdivisions		1,142			38		6.69			1,203			41		6.87
Other		19,839			234		2.37			9,190			156		3.42
Total investment securities		56,218			1,200		4.29			41,599			813		3.94
Interests in purchased receivables		30,063			183		1.22			—			—		—
Loans (1) (2)		200,501			7,795		7.82			205,499			7,970		7.82
Total earning assets		307,995		$	9,414		6.15			274,139		$	9,048		6.66
Allowance for loan losses		(3,352	)							(3,979	)
Other assets — nonearning		41,518								39,617
Total assets	$	346,161							$	309,777
Liabilities and Stockholders’ Equity
Deposits — interest-bearing (3)
Savings	$	10,972		$	26		0.48	%	$	9,963		$	28		0.57	%
Money market		71,054			358		1.01			60,409			345		1.15
Time		22,034			437		3.99			28,246			580		4.14
Foreign offices (4)		15,636			115		1.48			15,149			126		1.68
Total deposits — interest-bearing		119,696			936		1.57			113,767			1,079		1.91
Federal funds purchased and securities sold under repurchase agreements		14,062			91		1.30			18,634			135		1.46
Other short-term borrowings		76,478			622		1.64			48,041			508		2.13
Long-term debt (5)		45,130			780		3.48			44,823			972		4.37
Total interest-bearing liabilities		255,366		$	2,429		1.91			225,265		$	2,694		2.41
Noninterest-bearing deposits		44,257								46,815
Other liabilities		22,449								15,156
Common stockholders’ equity		24,089								22,541
Total liabilities and equity	$	346,161							$	309,777
Interest income/earning assets				$	9,414		6.15					$	9,048		6.66
Interest expense/earning assets					2,429		1.59						2,694		1.99
Net interest margin				$	6,985		4.56	%				$	6,354		4.67	%

NOTES:

(1)	Includes tax-equivalent adjustments based on federal income tax rate of 35%.
(2)	Nonperforming loans are included in average balances used to determine average rate.
(3)	On a consolidated basis, demand deposits are routinely swept overnight into money market deposits. On a line of business basis, balances are presented without the impact of the sweeps. Certain prior period data has been adjusted to conform with current period presentation.
(4)	Includes international banking facility deposit balances in domestic offices and balances of Edge Act and overseas offices.
(5)	Includes trust preferred capital securities.

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Definitions of Key Terms

GLOSSARY FOR SELECTED NONINTEREST INCOME CATEGORIES
Banking fees and commissions	Insurance fees, documentary fees, commitment fees, mutual fund commissions, leasing fees, safe deposit fees, official checks fees, ATM interchange and miscellaneous other fee revenue.
Credit card revenue	Related to Card Services, consumer and small business credit card fees; related to Retail, debit card fees; and related to Commercial, Commercial card fees.
Fiduciary and investment management fees	Asset management fees, personal trust fees and advisory fees.
Fully Taxable Equivalent (“FTE”)	Net interest income and tax expense in the income statement is grossed up for tax-exempt securities in order to present results on a basis comparable to taxable securities.
Investment security gains (losses)	Venture capital and investment securities (losses).
Other income (loss)	Net securitization gains (losses), net gains (losses) on Corporation transactions and/or asset sales/dispositions.
Service charges on deposits	Deficient balance fees, non-sufficient funds/overdraft fees and other service related fees.
Trading	Realized and unrealized mark-to-market changes from trading assets, derivative financial instruments and foreign exchange products.

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