JPMorgan Chase & Co. (JPM) 8-K/A Regulation FD Disclosure

Exhibit 99.3

2004 FOURTH QUARTER RESULTS AND
PRO FORMA COMBINED HISTORICAL
FINANCIAL SUPPLEMENT
FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003

JPMORGAN CHASE & CO.
TABLE OF CONTENTS

	Page
Consolidated Results
Financial Highlights		3
Statement of Income — Reported Basis		4
Consolidated Balance Sheet		5
Condensed Average Balance Sheet and Annualized Yields		6
Business Detail
Reconciliation from Reported to Operating Basis		7
Statement of Income — Operating Basis		8
Line of Business Financial Highlights — Operating Basis		9
Investment Bank		10
Retail Financial Services		12
Card Services		16
Commercial Banking		19
Treasury & Securities Services		20
Asset & Wealth Management		21
Corporate		23
Consolidated Credit-Related Information		25
Supplemental Detail
Capital		30
Glossary of Terms		31

Page 1

EXPLANATORY NOTE

     The unaudited pro forma combined historical financial information contained in this document is being furnished pursuant to Regulation FD in order to assist investors in understanding (i) how the financial information of JPMorgan Chase & Co. and Bank One Corporation may have appeared on a combined basis had the two companies actually been merged as of the earliest date indicated and (ii) how the financial information of the lines of business of the new combined company may have appeared had the two companies actually been merged as of the earliest date indicated.The information presented is intended to be supplementary financial information only and is not intended to be incorporated by reference into registration statements or reports filed by JPMorgan Chase & Co. under the Securities Act of 1933 or the Securities Exchange Act of 1934, as the case may be.

     The unaudited pro forma combined historical financial information has been derived from and should be read in conjunction with the historical financial statements and related notes of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) and Bank One Corporation (“Bank One”), as filed with the Securities and Exchange Commission.

     The pro forma historical lines of business information present the seven new business segments of the combined company as if these segments had existed for the combined company as of the earliest date indicated.

     The unaudited pro forma combined historical financial information includes (i) purchase price adjustments as of July 1, 2004, to reflect the merger as of such date of Bank One with JPMorgan Chase, (ii) estimated adjustments to record the assets and liabilities of Bank One at their respective fair values as of July 1, 2004, and (iii) adjustments for changes in management accounting policies. For more information about these purchase price and fair value adjustments, reference is made to the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2004.

     The unaudited pro forma combined historical financial information is presented for illustrative purposes only.This information does not include:

(i)	the impact of the sale of the Bank One corporate trust business to JPMorgan Chase;
(ii)	any future cost savings anticipated from the merger (including without limitation the previously announced $3.0 billion (pre-tax) of cost savings);
(iii)	merger-related costs anticipated to be incurred to combine the operations of JPMorgan Chase and Bank One, post June 30, 2004; and
(iv)	the impact of possible future revenue enhancements or share repurchases.

     Reclassifications of prior periods included in these pro forma combined historical financial statements reflect the conformity of certain management accounting policies; additional conformity of accounting policies and further reclassifications may be made in the future.

For the reasons stated above, the unaudited pro forma combined historical financial information included in this document does not necessarily indicate the combined results of operations or the combined financial position of the company that would have resulted had the merger actually been completed at the beginning of the applicable periods presented nor is it indicative of the results of operations in future periods or the future financial position of the company.

Page 2

JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share, ratio and headcount data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
SELECTED INCOME STATEMENT DATA
Total Net Revenue	$	12,950		$	12,505		$	13,279		$	13,807		$	12,495			4	%		4	%	$	52,541		$	50,681			4	%
Provision for Credit Losses		1,157			1,169			248			153			808			(1	)		43			2,727			3,570			(24	)
Noninterest Expense		9,386			9,377			12,629			9,112			8,304			—			13			40,504			33,136			22
Net Income		1,666			1,418			433			3,027			2,328			17			(28	)		6,544			9,330			(30	)
Per Common Share:
Net Income Per Share — Diluted	$	0.46		$	0.39		$	0.12		$	0.84		$	0.65			18			(29	)	$	1.81		$	2.61			(31	)
Cash Dividends Declared Per Share		0.34			0.34			0.34			0.34			0.34			—			—			1.36			1.36			—
Book Value Per Share		29.61			29.42			29.06			29.73			29.23			1			1
Closing Share Price		39.01			39.73			38.77			41.95			36.73			(2	)		6
Common Shares Outstanding:
Average — Diluted		3,602.0			3,592.0			3,588.6			3,590.4			3,560.5			—			1			3,593.0			3,553.3			1
Common Shares at Period-end		3,556.2			3,564.1			3,559.0			3,567.0			3,520.4			—			1
SELECTED RATIOS:
Return on Common Equity (“ROE”) (a)		6	%		5	%		2	%		12	%		9	%		100	bp		(300	) bp		6	%		9	%		(300	) bp
Return on Equity-Goodwill (“ROE-GW”) (a) (b)		11			9			3			20			16			200			(500	)		11			16			(500	)
Return on Assets (“ROA”) (a) (c)		0.57			0.50			0.15			1.08			0.84			7			(27	)		0.58			0.86			(28	)
Tier 1 Capital Ratio		8.7			8.6			8.6			8.8			8.8			10			(10	)
Total Capital Ratio		12.3			12.0			11.8			12.0			12.3			30			—
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,157,248		$	1,138,469		$	1,153,304		$	1,156,905		$	1,133,713			2	%		2	%
Wholesale Loans		135,067			132,344			133,011			133,831			133,184			2			1
Consumer Loans		267,047			261,357			225,557			218,924			217,326			2			23
Deposits		521,456			496,454			511,386			503,199			491,486			5			6
Common Stockholders’ Equity		105,314			104,844			103,439			106,041			102,915			—			2
Headcount		160,968			162,275			165,608			167,052			167,563			(1	)		(4	)
LINE OF BUSINESS EARNINGS
Investment Bank	$	660		$	627		$	1,016		$	1,351		$	1,157			5			(43	)	$	3,654		$	3,929			(7	)%
Retail Financial Services		775			822			938			744			429			(6	)		81			3,279			2,633			25
Card Services		515			421			409			336			396			22			30			1,681			1,368			23
Commercial Banking		254			215			234			289			225			18			13			992			832			19
Treasury & Securities Services		145			96			103			93			129			51			12			437			454			(4	)
Asset & Wealth Management		263			197			190			229			199			34			32			879			629			40
Corporate (d)		(296	)		(219	)		(103	)		(15	)		(207	)		(35	)		(43	)		(633	)		(515	)		(23	)
Total Operating Earnings		2,316			2,159			2,787			3,027			2,328			7			(1	)		10,289			9,330			10
Reconciling Items (After-Tax):
Merger Costs		(324	)		(462	)		(60	)		—			—			(30	)		NM			(846	)		—			NM
Litigation Reserve Charge		—			—			(2,294	)		—			—			NM			NM			(2,294	)		—			NM
Accounting Policy Conformity		(326	)		(279	)		—			—			—			(17	)		NM			(605	)		—			NM
Net Income	$	1,666		$	1,418		$	433		$	3,027		$	2,328			17			(28	)	$	6,544		$	9,330			(30	)

(a)	Based on annualized amounts.
(b)	Net income applicable to common stock / Total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating performance of the Firm. The Firm utilizes this measure to facilitate operating comparisons to other competitors.
(c)	U.S. GAAP earnings / Total average assets.
(d)	Includes Global Treasury, Private Equity, Support Units and the net effects remaining at the corporate level after the implementation of management accounting policies.

Page 3

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

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REVENUE
Investment Banking Fees	$	1,073		$	879		$	939		$	744		$	925			22	%		16	%	$	3,635		$	3,262			11	%
Trading Revenue (a)		611			408			968			1,777			777			50			(21	)		3,764			4,401			(14	)
Lending & Deposit Related Fees		903			943			957			941			953			(4	)		(5	)		3,744			3,667			2
Asset Management, Administration and Commissions		2,285			2,141			2,258			2,295			2,092			7			9			8,979			7,808			15
Securities / Private Equity Gains (Losses)		569			413			403			587			33			38			NM			1,972			1,637			20
Mortgage Fees and Related Income		130			277			360			258			171			(53	)		(24	)		1,025			1,005			2
Credit Card Income		1,822			1,782			1,686			1,556			1,762			2			3			6,846			6,424			7
Other Income		228			210			434			338			344			9			(34	)		1,210			762			59
Noninterest Revenue		7,621			7,053			8,005			8,496			7,057			8			8			31,175			28,966			8
Interest Income		9,862			9,493			8,736			8,854			8,906			4			11			36,945			36,552			1
Interest Expense		4,533			4,041			3,462			3,543			3,468			12			31			15,579			14,837			5
Net Interest Income		5,329			5,452			5,274			5,311			5,438			(2	)		(2	)		21,366			21,715			(2	)
TOTAL NET REVENUE		12,950			12,505			13,279			13,807			12,495			4			4			52,541			50,681			4
Provision for Credit Losses		1,157			1,169			248			153			808			(1	)		43			2,727			3,570			(24	)
NONINTEREST EXPENSE
Compensation Expense		4,211			4,050			4,227			4,567			3,691			4			14			17,055			16,122			6
Occupancy Expense		609			604			596			594			641			1			(5	)		2,403			2,534			(5	)
Technology and Communications Expense		1,051			1,046			960			989			933			—			13			4,046			3,525			15
Professional & Outside Services		1,191			1,103			1,106			1,197			1,153			8			3			4,597			4,268			8
Marketing		428			506			521			489			464			(15	)		(8	)		1,944			1,668			17
Other Expense		981			920			1,037			885			1,031			7			(5	)		3,823			3,372			13
Amortization of Intangibles		392			396			392			391			391			(1	)		—			1,571			1,547			2
Total Noninterest Expense before Merger Costs and		8,863			8,625			8,839			9,112			8,304			3			7			35,439			33,036			7
Litigation Reserve Charge
Merger Costs		523			752			90			—			—			(30	)		NM			1,365			—			NM
Litigation Reserve Charge		—			—			3,700			—			—			NM			NM			3,700			100			NM
TOTAL NONINTEREST EXPENSE		9,386			9,377			12,629			9,112			8,304			—			13			40,504			33,136			22
Income before Income Tax Expense		2,407			1,959			402			4,542			3,383			23			(29	)		9,310			13,975			(33	)
Income Tax Expense (Benefit)		741			541			(31	)		1,515			1,055			37			(30	)		2,766			4,645			(40	)
NET INCOME	$	1,666		$	1,418		$	433		$	3,027		$	2,328			17			(28	)	$	6,544		$	9,330			(30	)
NET INCOME APPLICABLE TO COMMON STOCK	$	1,653		$	1,405		$	420		$	3,014		$	2,315			18			(29	)	$	6,492		$	9,279			(30	)
NET INCOME PER COMMON SHARE
Basic Earnings per Share	$	0.47		$	0.40		$	0.12		$	0.86		$	0.67			18			(30	)	$	1.85		$	2.66			(30	)
Diluted Earnings per Share		0.46			0.39			0.12			0.84			0.65			18			(29	)		1.81			2.61			(31	)
Average Basic Shares		3,514.7			3,513.5			3,509.4			3,503.7			3,480.3			—			1			3,510.4			3,494.9			—
Average Diluted Shares		3,602.0			3,592.0			3,588.6			3,590.4			3,560.5			—			1			3,593.0			3,553.3			1
FINANCIAL RATIOS
ROE		6	%		5	%		2	%		12	%		9	%		100	bp		(300	) bp		6	%		9	%		(300	) bp
ROE-GW		11			9			3			20			16			200			(500	)		11			16			(500	)
ROA		0.57			0.50			0.15			1.08			0.84			7			(27	)		0.58			0.86			(28	)
Effective Income Tax Rate		31			28			8			33			31			300			—			30			33			(300	)
Overhead Ratio		72			75			95			66			66			(300	)		600			77			65			1,200
Headcount		160,968			162,275			165,608			167,052			167,563			(1	)%		(4	)%		160,968			167,563			(4	)

(a) Trading NII is not included in trading revenue. See page 10 for additional details.

Page 4

JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEET
(in millions)

																Dec 31, 2004
							PRO FORMA COMBINED									Change
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Dec 31
	2004			2004			2004			2004			2003			2004			2003
ASSETS
Cash and Due from Banks	$	35,168		$	30,815		$	38,193		$	35,094		$	37,356			14	%		(6	)%
Deposits with Banks		21,680			33,082			46,445			40,380			13,268			(34	)		63
Federal Funds Sold and Securities Purchased under Resale Agreements		101,354			96,031			112,236			87,501			87,996			6			15
Securities Borrowed		47,428			50,546			45,725			51,923			46,258			(6	)		3
Trading Assets:
Debt and Equity Instruments		222,832			214,852			190,772			198,269			180,705			4			23
Derivative Receivables (a)		65,982			57,795			55,086			63,898			88,959			14			(26	)
Securities		94,512			92,816			135,427			155,239			142,633			2			(34	)
Interests in Purchased Receivables		31,722			30,479			30,184			28,912			37,690			4			(16	)
Loans (Net of Allowance for Loan Losses)		394,794			386,208			351,478			345,312			342,515			2			15
Private Equity Investments		7,735			8,547			9,149			9,390			9,712			(10	)		(20	)
Accrued Interest and Accounts Receivable		21,409			19,876			21,712			19,947			18,638			8			15
Premises and Equipment		9,145			8,880			8,992			9,028			8,995			3			2
Goodwill		43,203			42,947			43,016			43,018			42,798			1			1
Other Intangible Assets:
Mortgage Servicing Rights		5,080			5,168			5,797			4,268			4,869			(2	)		4
Purchased Credit Card Relationships		3,878			4,055			4,527			4,608			4,704			(4	)		(18	)
All Other Intangibles		5,726			5,945			5,873			5,899			5,769			(4	)		(1	)
Other Assets		45,600			50,427			48,692			54,219			60,848			(10	)		(25	)
TOTAL ASSETS	$	1,157,248		$	1,138,469		$	1,153,304		$	1,156,905		$	1,133,713			2			2
LIABILITIES
Deposits:
U.S. Offices:
Noninterest-Bearing	$	129,257		$	122,054		$	130,740		$	123,891		$	117,471			6			10
Interest-Bearing		261,673			254,611			248,499			248,231			228,512			3			15
Non-U.S. Offices:
Noninterest-Bearing		6,931			7,259			7,867			8,321			6,539			(5	)		6
Interest-Bearing		123,595			112,530			124,280			122,756			138,964			10			(11	)
Total Deposits		521,456			496,454			511,386			503,199			491,486			5			6
Federal Funds Purchased and Securities Sold under Repurchase Agreements		127,787			167,313			159,875			163,329			134,039			(24	)		(5	)
Commercial Paper		12,605			10,307			15,370			15,707			14,617			22			(14	)
Other Borrowed Funds		9,039			9,454			11,920			14,177			15,804			(4	)		(43	)
Trading Liabilities:
Debt and Equity Instruments		87,942			78,767			82,625			82,843			81,840			12			7
Derivative Payables (a)		63,265			52,307			46,620			58,127			75,277			21			(16	)
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		68,443			61,198			67,766			59,416			56,740			12			21
Beneficial Interests Issued by Consolidated VIEs		48,061			45,840			44,873			44,295			51,869			5			(7	)
Long-Term Debt		95,422			91,754			90,693			94,102			93,589			4			2
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		10,296			11,745			10,045			6,732			6,768			(12	)		52
Insurance Policy and Claims Reserves		7,279			7,477			7,683			7,928			7,760			(3	)		(6	)
TOTAL LIABILITIES		1,051,595			1,032,616			1,048,856			1,049,855			1,029,789			2			2
STOCKHOLDERS’ EQUITY
Preferred Stock		339			1,009			1,009			1,009			1,009			(66	)		(66	)
Common Stock		3,585			3,576			3,560			3,553			2,044			—			75
Capital Surplus		72,801			72,183			71,469			71,677			71,281			1			2
Retained Earnings		30,209			29,779			29,596			30,878			29,682			1			2
Accumulated Other Comprehensive Income (Loss)		(208	)		(242	)		(911	)		177			(30	)		14			NM
Treasury Stock, at Cost		(1,073	)		(452	)		(275	)		(244	)		(62	)		(137	)		NM
TOTAL STOCKHOLDERS’ EQUITY		105,653			105,853			104,448			107,050			103,924			—			2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,157,248		$	1,138,469		$	1,153,304		$	1,156,905		$	1,133,713			2			2

(a) Effective January 1, 2004, the Firm elected to net cash paid and received under legally enforceable master netting agreements.

Page 5

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

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full-Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	31,799		$	34,166		$	30,480		$	25,052		$	14,871			(7	)%		114	%	$	30,389		$	13,189			130	%
Federal Funds Sold and Securities Purchased under Resale Agreements		104,038			102,042			93,955			89,827			102,047			2			2			97,496			95,373			2
Securities Borrowed		47,663			47,087			55,778			51,828			46,267			1			3			50,571			45,952			10
Trading Assets — Debt and Equity Instruments		186,013			170,663			159,783			176,576			169,097			9			10			173,287			159,591			9
Securities		92,294			94,720			143,860			145,831			137,271			(3	)		(33	)		119,036			145,306			(18	)
Interests in Purchased Receivables		30,491			28,917			28,982			33,681			9,976			5			206			30,513			5,504			454
Loans		400,841			390,753			359,871			351,189			358,513			3			12			375,774			362,011			4
Total Interest-Earning Assets		893,139			868,348			872,709			873,984			838,042			3			7			877,066			826,926			6
Noninterest-Earning Assets		261,749			248,987			271,542			251,165			258,460			5			1			258,343			264,008			(2	)
TOTAL ASSETS	$	1,154,888		$	1,117,335		$	1,144,251		$	1,125,149		$	1,096,502			3			5		$	1,135,409		$	1,090,934			4
LIABILITIES
Interest-Bearing Deposits	$	377,368		$	365,104		$	376,087		$	357,525		$	354,970			3			6		$	369,033		$	343,998			7
Federal Funds Purchased and Securities Sold under Repurchase Agreements		158,633			163,206			166,544			162,284			162,580			(3	)		(2	)		162,657			181,475			(10	)
Commercial Paper		10,885			12,497			14,625			13,776			13,962			(13	)		(22	)		12,939			13,924			(7	)
Other Borrowings (a)		89,674			84,387			84,757			88,665			84,416			6			6			86,872			81,059			7
Beneficial Interests Issued by Consolidated VIEs		46,366			43,308			44,516			48,026			18,015			7			157			45,550			9,529			378
Long-Term Debt		104,599			101,060			99,570			98,627			98,170			4			7			100,974			95,365			6
Total Interest-Bearing Liabilities		787,525			769,562			786,099			768,903			732,113			2			8			778,025			725,350			7
Noninterest-Bearing Liabilities		261,487			242,395			251,917			250,901			261,735			8			—			251,677			264,633			(5	)
TOTAL LIABILITIES		1,049,012			1,011,957			1,038,016			1,019,804			993,848			4			6			1,029,702			989,983			4
Preferred Stock		1,002			1,009			1,009			1,009			1,009			(1	)		(1	)		1,007			1,009			—
Common Stockholders’ Equity		104,874			104,369			105,226			104,336			101,645			—			3			104,700			99,942			5
TOTAL STOCKHOLDERS’ EQUITY		105,876			105,378			106,235			105,345			102,654			—			3			105,707			100,951			5
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$	1,154,888		$	1,117,335		$	1,144,251		$	1,125,149		$	1,096,502			3			5		$	1,135,409		$	1,090,934			4
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		2.60	%		1.53	%		1.72	%		1.73	%		2.72	%		107	bp		(12	) bp		1.90	%		2.18	%		(28	) bp
Federal Funds Sold and Securities Purchased under Resale Agreements		2.03			1.85			1.43			1.43			1.34			18			69			1.70			1.66			4
Securities Borrowed		1.34			1.01			0.67			0.79			0.77			33			57			0.94			0.83			11
Trading Assets — Debt and Equity Instruments		4.44			4.64			4.35			4.32			4.14			(20	)		30			4.44			4.37			7
Securities		4.42			4.40			4.73			4.38			4.56			2			(14	)		4.50			4.53			(3	)
Interests in Purchased Receivables		2.11			1.63			1.26			1.23			1.31			48			80			1.55			1.16			39
Loans		5.71			5.77			5.28			5.49			5.55			(6	)		16			5.57			5.76			(19	)
Total Interest-Earning Assets		4.42			4.37			4.05			4.10			4.24			5			18			4.24			4.45			(21	)
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		2.01			1.64			1.45			1.53			1.53			37			48			1.66			1.75			(9	)
Federal Funds Purchased and Securities Sold under Repurchase Agreements		1.95			1.52			1.17			1.24			1.17			43			78			1.47			1.36			11
Commercial Paper		2.26			1.49			0.96			0.96			0.99			77			127			1.37			1.13			24
Other Borrowings		3.04			4.27			3.75			3.77			3.93			(123	)		(89	)		3.70			3.99			(29	)
Beneficial Interests Issued by Consolidated VIEs		1.97			1.58			1.46			1.26			1.33			39			64			1.57			1.11			46
Long-Term Debt		3.31			3.10			2.56			2.71			2.80			21			51			2.93			2.99			(6	)
Total Interest-Bearing Liabilities		2.29			2.09			1.77			1.85			1.88			20			41			2.00			2.05			(5	)
INTEREST RATE SPREAD		2.13	%		2.28	%		2.28	%		2.25	%		2.36	%		(15	)		(23	)		2.24	%		2.40	%		(16	)
NET INTEREST MARGIN		2.40	%		2.52	%		2.46	%		2.47	%		2.60	%		(12	)		(20	)		2.46	%		2.65	%		(19	)
NET INTEREST MARGIN ADJUSTED FOR SECURITIZATIONS		2.97	%		3.09	%		3.19	%		3.19	%		3.33	%		(12	)		(36	)		3.11	%		3.36	%		(25	)

(a) Includes securities sold but not yet purchased.

Page 6

OPERATING BASIS

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

JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO OPERATING BASIS
(in millions)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REPORTED
Revenue
Investment Banking Fees	$	1,073		$	879		$	939		$	744		$	925			22	%		16	%	$	3,635		$	3,262			11	%
Trading Revenue		611			408			968			1,777			777			50			(21	)		3,764			4,401			(14	)
Lending & Deposit Related Fees		903			943			957			941			953			(4	)		(5	)		3,744			3,667			2
Asset Management, Administration and Commissions		2,285			2,141			2,258			2,295			2,092			7			9			8,979			7,808			15
Securities / Private Equity Gains (Losses)		569			413			403			587			33			38			NM			1,972			1,637			20
Mortgage Fees and Related Income		130			277			360			258			171			(53	)		(24	)		1,025			1,005			2
Credit Card Income		1,822			1,782			1,686			1,556			1,762			2			3			6,846			6,424			7
Other Income		228			210			434			338			344			9			(34	)		1,210			762			59
Noninterest Revenue		7,621			7,053			8,005			8,496			7,057			8			8			31,175			28,966			8
Interest Income		9,862			9,493			8,736			8,854			8,906			4			11			36,945			36,552			1
Interest Expense		4,533			4,041			3,462			3,543			3,468			12			31			15,579			14,837			5
Net Interest Income		5,329			5,452			5,274			5,311			5,438			(2	)		(2	)		21,366			21,715			(2	)
Total Net Revenue		12,950			12,505			13,279			13,807			12,495			4			4			52,541			50,681			4
Provision for Credit Losses		1,157			1,169			248			153			808			(1	)		43			2,727			3,570			(24	)
Noninterest Expense
Merger Costs		523			752			90			—			—			(30	)		NM			1,365			—			NM
Litigation Reserve Charge		—			—			3,700			—			—			NM			NM			3,700			100			NM
All Other Noninterest Expense		8,863			8,625			8,839			9,112			8,304			3			7			35,439			33,036			7
Total Noninterest Expense		9,386			9,377			12,629			9,112			8,304			—			13			40,504			33,136			22
Income before Income Tax Expense		2,407			1,959			402			4,542			3,383			23			(29	)		9,310			13,975			(33	)
Income Tax Expense (Benefit)		741			541			(31	)		1,515			1,055			37			(30	)		2,766			4,645			(40	)
Net Income	$	1,666		$	1,418		$	433		$	3,027		$	2,328			17			(28	)	$	6,544		$	9,330			(30	)
RECONCILING ITEMS (a)
Revenue
Trading-Related Revenue (b)	$	511		$	424		$	439		$	576		$	518			21			(1	)	$	1,950		$	2,129			(8	)
Credit Card Income (c)		(786	)		(848	)		(711	)		(749	)		(798	)		7			2			(3,094	)		(3,023	)		(2	)
Other Income
Credit Card Securitizations (c)		1			(3	)		(45	)		(39	)		(31	)		NM			NM			(86	)		(72	)		(19	)
Accounting Policy Conformity (d)		—			118			—			—			—			NM			NM			118			—			NM
Total Other Income		1			115			(45	)		(39	)		(31	)		(99	)		NM			32			(72	)		NM
Net Interest Income:
Trading-Related (b)		(511	)		(424	)		(439	)		(576	)		(518	)		(21	)		1			(1,950	)		(2,129	)		8
Credit Card Securitizations (c)		1,796			1,779			2,114			2,112			2,136			1			(16	)		7,801			8,111			(4	)
Total Net Interest Income		1,285			1,355			1,675			1,536			1,618			(5	)		(21	)		5,851			5,982			(2	)
Total Net Revenue		1,011			1,046			1,358			1,324			1,307			(3	)		(23	)		4,739			5,016			(6	)
Provision for Credit Losses
Credit Card Securitizations (c)		1,011			928			1,358			1,324			1,307			9			(23	)		4,621			5,016			(8	)
Accounting Policy Conformity (d)		(525	)		(333	)		—			—			—			(58	)		NM			(858	)		—			NM
Total Provision for Credit Losses		486			595			1,358			1,324			1,307			(18	)		(63	)		3,763			5,016			(25	)
Noninterest Expense
Merger Costs (d)		(523	)		(752	)		(90	)		—			—			30			NM			(1,365	)		—			NM
Litigation Reserve Charge (d)		—			—			(3,700	)		—			—			NM			NM			(3,700	)		—			NM
All Other Noninterest Expense		—			—			—			—			—			NM			NM			—			—			NM
Total Noninterest Expense		(523	)		(752	)		(3,790	)		—			—			30			NM			(5,065	)		—			NM
Income before Income Tax Expense		1,048			1,203			3,790			—			—			(13	)		NM			6,041			—			NM
Income Tax Expense (Benefit)		398			462			1,436			—			—			(14	)		NM			2,296			—			NM
Net Income	$	650		$	741		$	2,354		$	—		$	—			(12	)		NM		$	3,745		$	—			NM

(a)	Represents only those line items on the Consolidated Statement of Income impacted by the reclassification of trading-related net interest income and the impact of credit card securitizations, as well as for the fourth, third and second quarters of 2004, the Merger Costs and Litigation Reserve Charge line items on the Consolidated Statement of Income, and the Accounting Policy Conformity Adjustments.
(b)	The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results. See page 10 for further information.
(c)	The impact of credit card securitizations impacts Card Services. See page 18 for further information.
(d)	The impact of the Merger Costs, the Litigation Reserve Charge and Accounting Policy Conformity Adjustment are excluded from Operating Earnings, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, not indicative of trends), and do not provide meaningful comparisons with other periods.

Page 7

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

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REVENUE
Investment Banking Fees	$	1,073		$	879		$	939		$	744		$	925			22	%		16	%	$	3,635		$	3,262			11	%
Trading-Related Revenue (Including Trading NII)		1,122			832			1,407			2,353			1,295			35			(13	)		5,714			6,530			(12	)
Lending & Deposit Related Fees		903			943			957			941			953			(4	)		(5	)		3,744			3,667			2
Asset Management, Administration and Commissions		2,285			2,141			2,258			2,295			2,092			7			9			8,979			7,808			15
Securities / Private Equity Gains (Losses)		569			413			403			587			33			38			NM			1,972			1,637			20
Mortgage Fees and Related Income		130			277			360			258			171			(53	)		(24	)		1,025			1,005			2
Credit Card Income		1,036			934			975			807			964			11			7			3,752			3,401			10
Other Income		229			325			389			299			313			(30	)		(27	)		1,242			690			80
Noninterest Revenue		7,347			6,744			7,688			8,284			6,746			9			9			30,063			28,000			7
Interest Income		11,223			11,036			10,561			10,544			10,692			2			5			43,364			43,192			—
Interest Expense		4,609			4,229			3,612			3,697			3,636			9			27			16,147			15,495			4
Net Interest Income		6,614			6,807			6,949			6,847			7,056			(3	)		(6	)		27,217			27,697			(2	)
TOTAL NET REVENUE		13,961			13,551			14,637			15,131			13,802			3			1			57,280			55,697			3
Managed Provision for Credit Losses		1,643			1,764			1,606			1,477			2,115			(7	)		(22	)		6,490			8,586			(24	)
NONINTEREST EXPENSE
Compensation Expense		4,211			4,050			4,227			4,567			3,691			4			14			17,055			16,122			6
Occupancy Expense		609			604			596			594			641			1			(5	)		2,403			2,534			(5	)
Technology and Communications Expense		1,051			1,046			960			989			933			—			13			4,046			3,525			15
Professional & Outside Services		1,191			1,103			1,106			1,197			1,153			8			3			4,597			4,268			8
Marketing		428			506			521			489			464			(15	)		(8	)		1,944			1,668			17
Other Expense		981			920			1,037			885			1,031			7			(5	)		3,823			3,472			10
Amortization of Intangibles		392			396			392			391			391			(1	)		—			1,571			1,547			2
TOTAL NONINTEREST EXPENSE		8,863			8,625			8,839			9,112			8,304			3			7			35,439			33,136			7
Operating Earnings before Income Tax Expense		3,455			3,162			4,192			4,542			3,383			9			2			15,351			13,975			10
Income Tax Expense		1,139			1,003			1,405			1,515			1,055			14			8			5,062			4,645			9
OPERATING EARNINGS	$	2,316		$	2,159		$	2,787		$	3,027		$	2,328			7			(1	)	$	10,289		$	9,330			10
Operating Earnings Per Common Share
Diluted EPS	$	0.64		$	0.60		$	0.77		$	0.84		$	0.65			7			(2	)	$	2.85		$	2.61			9
Operating Financial Ratios
ROE		9	%		8	%		11	%		12	%		9	%		100	bp		—	bp		10	%		9	%		100	bp
ROE-GW		15			14			18			20			16			100			(100	)		17			16			100
ROA		0.75			0.72			0.92			1.02			0.79			3			(4	)		0.85			0.80			5
Overhead Ratio		63			64			60			60			60			(100	)		300			62			59			300
RECONCILIATION OF OPERATING EARNINGS PER SHARE
TO NET INCOME PER SHARE — DILUTED
Operating Earnings	$	0.64		$	0.60		$	0.77		$	0.84		$	0.65			7	%		(2	)%	$	2.85		$	2.61			9	%
Reconciling Items (Net of Taxes):
Merger Costs		(0.09	)		(0.13	)		(0.02	)		—			—			31			NM			(0.24	)		—			NM
Litigation Reserve Charge		—			—			(0.63	)		—			—			NM			NM			(0.63	)		—			NM
Accounting Policy Conformity		(0.09	)		(0.08	)		—			—			—			(13	)		NM			(0.17	)		—			NM
Net Income	$	0.46		$	0.39		$	0.12		$	0.84		$	0.65			18			(29	)	$	1.81		$	2.61			(31	)

Page 8

JPMORGAN CHASE & CO.
LINE OF BUSINESS FINANCIAL HIGHLIGHTS — OPERATING BASIS
(in millions, except ratio data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REVENUE
Investment Bank	$	3,201		$	2,701		$	3,397		$	4,207		$	3,316			19	%		(3	)%	$	13,506		$	14,254			(5	)%
Retail Financial Services		3,545			3,800			3,947			3,784			3,666			(7	)		(3	)		15,076			14,770			2
Card Services		3,830			3,771			3,776			3,624			3,737			2			2			15,001			13,968			7
Commercial Banking		885			833			866			833			851			6			4			3,417			3,397			1
Treasury & Securities Services		1,413			1,339			1,368			1,280			1,270			6			11			5,400			4,772			13
Asset & Wealth Management		1,310			1,193			1,185			1,213			1,189			10			10			4,901			4,275			15
Corporate		(223	)		(86	)		98			190			(227	)		(159	)		2			(21	)		261			NM
TOTAL NET REVENUE	$	13,961		$	13,551		$	14,637		$	15,131		$	13,802			3			1		$	57,280		$	55,697			3
OPERATING EARNINGS
Investment Bank	$	660		$	627		$	1,016		$	1,351		$	1,157			5			(43	)	$	3,654		$	3,929			(7	)
Retail Financial Services		775			822			938			744			429			(6	)		81			3,279			2,633			25
Card Services		515			421			409			336			396			22			30			1,681			1,368			23
Commercial Banking		254			215			234			289			225			18			13			992			832			19
Treasury & Securities Services		145			96			103			93			129			51			12			437			454			(4	)
Asset & Wealth Management		263			197			190			229			199			34			32			879			629			40
Corporate		(296	)		(219	)		(103	)		(15	)		(207	)		(35	)		(43	)		(633	)		(515	)		(23	)
TOTAL OPERATING EARNINGS	$	2,316		$	2,159		$	2,787		$	3,027		$	2,328			7			(1	)	$	10,289		$	9,330			10
AVERAGE EQUITY (a)
Investment Bank	$	20,000		$	20,000		$	20,000		$	20,000		$	20,000			—			—		$	20,000		$	22,460			(11	)
Retail Financial Services		13,050			13,050			13,050			13,050			12,865			—			1			13,050			12,259			6
Card Services		11,800			11,800			11,800			11,800			11,800			—			—			11,800			11,800			—
Commercial Banking		3,400			3,400			3,400			3,400			3,859			—			(12	)		3,400			4,247			(20	)
Treasury & Securities Services		1,900			1,900			1,900			1,900			1,900			—			—			1,900			1,900			—
Asset & Wealth Management		2,400			2,400			2,400			2,400			2,465			—			(3	)		2,400			2,517			(5	)
Corporate (b)		52,324			51,819			52,676			51,786			48,756			1			7			52,150			44,759			17
TOTAL AVERAGE EQUITY	$	104,874		$	104,369		$	105,226		$	104,336		$	101,645			—			3		$	104,700		$	99,942			5
RETURN ON EQUITY (a)
Investment Bank		13	%		12	%		20	%		27	%		23	%		100	bp		(1,000	)bp		18	%		17	%		100	bp
Retail Financial Services		24			25			29			23			13			(100	)		1,100			25			21			400
Card Services		17			14			14			11			13			300			400			14			12			200
Commercial Banking		30			25			28			34			23			500			700			29			20			900
Treasury & Securities Services		30			20			22			20			27			1,000			300			23			24			(100	)
Asset & Wealth Management		44			33			32			38			32			1,100			1,200			37			25			1,200
JPMC ROE		9			8			11			12			9			100			—			10			9			100
JPMC ROE-GW		15			14			18			20			16			100			(100	)		17			16			100

(a)

As a result of the Merger, new capital allocation methodologies were implemented during the third quarter of 2004. The capital allocated to each line of business considers several factors: stand-alone peer comparables, economic risk measures and regulatory capital requirements. In addition, effective with the third quarter of 2004, goodwill, as well as the associated capital, is only allocated to the Corporate line of business. Prior periods have not been revised to reflect these new methodologies and also may not be comparable to the presentation beginning in the third quarter of 2004.

(b)

Includes goodwill.

Page 9

JPMORGAN CHASE & CO.
INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio and rankings data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE
Investment Banking Fees:
Advisory	$	250		$	273		$	269		$	147		$	161			(8	)%		55	%	$	939		$	646			45	%
Equity Underwriting		213			170			223			179			255			25			(16	)		785			707			11
Debt Underwriting		617			468			445			417			509			32			21			1,947			1,918			2
Total Investment Banking Fees		1,080			911			937			743			925			19			17			3,671			3,271			12
Trading-Related Revenue: (a)
Fixed Income and Other		1,173			657			1,361			1,940			1,208			79			(3	)		5,131			6,247			(18	)
Equities		(42	)		220			(88	)		333			93			NM			NM			423			558			(24	)
Credit Portfolio		(44	)		(35	)		55			54			(71	)		(26	)		38			30			(449	)		NM
Total Trading-Related Revenue		1,087			842			1,328			2,327			1,230			29			(12	)		5,584			6,356			(12	)
Lending & Deposit Related Fees		176			155			172			155			154			14			14			658			535			23
Asset Management, Administration and Commissions		346			313			357			405			333			11			4			1,421			1,317			8
Other Income		178			91			128			105			166			96			7			502			420			20
Noninterest Revenue		2,867			2,312			2,922			3,735			2,808			24			2			11,836			11,899			(1	)
Net Interest Income (a)		334			389			475			472			508			(14	)		(34	)		1,670			2,355			(29	)
TOTAL NET REVENUE (b)		3,201			2,701			3,397			4,207			3,316			19			(3	)		13,506			14,254			(5	)
Provision for Credit Losses		(173	)		(151	)		(315	)		(303	)		(396	)		(15	)		56			(942	)		(422	)		(123	)
Credit Reimbursement from TSS (c)		43			43			43			43			54			—			(20	)		172			216			(20	)
NONINTEREST EXPENSE
Compensation Expense		1,389			992			1,240			1,492			949			40			46			5,113			4,893			4
Noncompensation Expense		1,001			932			935			936			980			7			2			3,804			3,822			—
Amortization of Intangibles		—			—			—			—			—			NM			NM			—			—			NM
TOTAL NONINTEREST EXPENSE		2,390			1,924			2,175			2,428			1,929			24			24			8,917			8,715			2
Operating Earnings Before Income Tax Expense		1,027			971			1,580			2,125			1,837			6			(44	)		5,703			6,177			(8	)
Income Tax Expense (Benefit)		367			344			564			774			680			7			(46	)		2,049			2,248			(9	)
OPERATING EARNINGS	$	660		$	627		$	1,016		$	1,351		$	1,157			5			(43	)	$	3,654		$	3,929			(7	)
FINANCIAL RATIOS
ROE		13	%		12	%		20	%		27	%		23	%		100	bp		(1,000)	bp		18	%		17	%		100	bp
ROA		0.49			0.50			0.81			1.09			0.95			(1	)		(46	)		0.72			0.82			(10	)
Overhead Ratio		75			71			64			58			58			400			1,700			66			61			500
Compensation Expense as a % of Total Net Revenue		43			37			37			35			29			600			1,400			38			34			400

	Full Year		Full Year
	2004		2003
MARKET SHARE / RANKINGS (d)
Global Debt, Equity and Equity-Related		7% / #3		8% / #3
Global Syndicated Loans		20% / #1		20% / #1
Global Long-Term Debt		7% / #2		8% / #2
Global Equity and Equity-Related		6% / #6		8% / #4
Global Announced M&A		26% / #2		16% / #4
U.S. Debt, Equity and Equity-Related		8% / #5		9% / #3
U.S. Syndicated Loans		32% / #1		35% / #1
U.S. Long-Term Debt		12% / #2		10% / #3
U.S. Equity and Equity-Related		8% / #6		11% / #4
U.S. Announced M&A		33% / #1		13% / #8

(a)	Trading revenue, on a reported basis, excludes the impact of net interest income related to IB’s trading activities; this income is recorded in Net interest income. However, in this presentation, to assess the profitability of IB’s trading business, the Firm combines these revenues for segment reporting. The amount reclassified from Net interest income to Trading revenue was $511 million, $430 million, $427 million, $581 million and $512 million during the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, and $1.9 billion and $2.1 billion for full year 2004 and 2003, respectively.
(b)	Total net revenue includes tax equivalent adjustments of $167 million, $9 million, $115 million, $100 million, and $73 million as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively. The full year tax equivalent adjustments were $391 million and $245 million for the year ending December 31, 2004 and 2003, respectively.
(c)	Management has charged Treasury & Securities Services (“TSS”) a credit reimbursement, which is the pre-tax amount of earnings, less cost of capital, related to certain exposures managed within the IB credit portfolio on behalf of clients shared with TSS.
(d)	Derived from Thomson Financial Securities Data. Global announced M&A is based on rank value; all other rankings are based on proceeds, with full credit to each book manager/equal if joint. Because of joint assignments, market share of all participants will add up to more than 100%. The market share and rankings are presented on a combined basis reflecting the merger of JPMorgan Chase and Bank One, as disclosed by Thomson Financial Securities Data.

Page 10

JPMORGAN CHASE & CO.
INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REVENUE BY BUSINESS
Investment Banking	$	1,080		$	911		$	937		$	743		$	925			19	%		17	%	$	3,671		$	3,271			12	%
Fixed Income Markets		1,530			1,115			1,815			2,330			1,557			37			(2	)		6,790			7,771			(13	)
Equities Markets		243			455			194			674			346			(47	)		(30	)		1,566			1,526			3
Credit Portfolio		348			220			451			460			488			58			(29	)		1,479			1,686			(12	)
Total Net Revenue	$	3,201		$	2,701		$	3,397		$	4,207		$	3,316			19			(3	)	$	13,506		$	14,254			(5	)
REVENUE BY REGION
Americas	$	1,829		$	1,591		$	1,936		$	2,376		$	2,109			15			(13	)	$	7,732		$	8,708			(11	)
Europe/Middle East/Africa		1,013			741			1,042			1,307			914			37			11			4,103			4,405			(7	)
Asia/Pacific		359			369			419			524			293			(3	)		23			1,671			1,141			46
Total Net Revenue	$	3,201		$	2,701		$	3,397		$	4,207		$	3,316			19			(3	)	$	13,506		$	14,254			(5	)
SELECTED BALANCE SHEET (Average)
Total Assets	$	533,898		$	496,347		$	503,396		$	496,529		$	482,958			8			11		$	507,584		$	476,586			7
Trading Assets — Debt and Equity Instruments		182,060			166,795			165,930			193,386			180,750			9			1			177,028			166,729			6
Trading Assets — Derivative Receivables		65,417			60,465			56,151			61,664			82,432			8			(21	)		60,935			87,650			(30	)
Loans (a)		47,674			45,779			48,968			49,318			50,915			4			(6	)		47,928			57,720			(17	)
Adjusted Assets (b)		432,085			401,010			398,643			397,473			406,644			8			6			407,353			402,507			1
Equity (c)		20,000			20,000			20,000			20,000			20,000			—			—			20,000			22,460			(11	)
Headcount		17,478			17,420			17,795			17,088			16,957			—			3			17,478			16,957			3
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	14		$	(16	)	$	3		$	24		$	5			NM			180		$	25		$	877			(97	)
Nonperforming Assets
- Nonperforming Loans (d)		954			1,075			1,345			1,703			1,991			(11	)		(52	)		954			1,991			(52	)
- Other Nonperforming Assets		242			246			339			357			370			(2	)		(35	)		242			370			(35	)
Allowance for Loan Losses		1,547			1,841			1,382			1,698			2,019			(16	)		(23	)		1,547			2,019			(23	)
Allowance for Lending Related Commitments		305			358			447			479			485			(15	)		(37	)		305			485			(37	)
Net Charge-off Rate (a)		0.14	%		(0.17	)%		0.03	%		0.22	%		0.04	%		31	bp		10	bp		0.06	%		1.64	%		(158	)bp
Allowance for Loan Losses to Average Loans (a)		3.87			4.78			3.16			3.90			4.33			(91	)		(46	)		3.73			3.77			(4	)
Allowance for Loan Losses to Nonperforming Loans (d)		163			172			103			101			103			(900	)		6,000			163			103			6,000
Nonperforming Loans to Average Loans		2.00			2.35			2.75			3.45			3.91			(35	)		(191	)		1.99			3.45			(146	)
MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR (e) (f)
Trading Activities:
Fixed Income (e)	$	68		$	80			NA			NA			NA			(15	)%		NM			NA			NA			NM
Foreign Exchange		18			13			NA			NA			NA			38			NM			NA			NA			NM
Equities		20			25			NA			NA			NA			(20	)		NM			NA			NA			NM
Commodities and Other		9			10			NA			NA			NA			(10	)		NM			NA			NA			NM
Diversification		(42	)		(43	)		NA			NA			NA			2			NM			NA			NA			NM
Total Trading VAR		73			85			NA			NA			NA			(14	)		NM			NA			NA			NM
Credit Portfolio VAR (f)		13			13			NA			NA			NA			—			NM			NA			NA			NM
Diversification		(7	)		(9	)		NA			NA			NA			22			NM			NA			NA			NM
Total Trading and Credit Portfolio VAR	$	79		$	89			NA			NA			NA			(11	)		NM			NA			NA			NM

(a)	Loans include loans held for sale of $7,684 million, $7,281 million, $5,259 million, $5,742 million, and $4,279 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively. The full year average loans held for sale were $6,492 million and $4,201 million for 2004 and 2003, respectively. These amounts are not included in the allowance coverage ratios and net charge-off rates.
(b)	Adjusted assets equals total assets minus (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased, (2) assets of VIEs consolidated under FIN 46R, (3) cash and securities segregated and on deposit for regulatory and other purposes and (4) goodwill and intangibles. The amount of adjusted assets is presented to assist the reader in comparing the IB’s asset and capital levels to other investment banks in the securities industry. Asset to equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. The IB believes an adjusted asset amount, which excludes certain assets considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.
(c)	Equity includes $15.6 billion of economic risk capital assigned to the IB for the full year ended December 31, 2004.
(d)	Nonpeforming loans include loans held for sale of $2 million, $4 million, $2 million, $30 million, and $30 million, as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(e)	Includes all mark-to-market trading activities, plus available-for-sale securities held for IB investing purposes.
(f)	Includes VAR on derivative credit valuation adjustments, credit valuation adjustment hedges and mark-to-market loan hedges, which are reported in Trading Revenue. This VAR does not include the accrual loan portfolio, which is not marked to market.

Page 11

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	373		$	395		$	375		$	358		$	371			(6	)%		1	%	$	1,501		$	1,419			6	%
Asset Management, Administration and Commissions		323			331			338			357			318			(2	)		2			1,349			1,202			12
Securities / Private Equity Gains (Losses)		(89	)		6			—			—			18			NM			NM			(83	)		383			NM
Mortgage Fees and Related Income		162			255			398			261			172			(36	)		(6	)		1,076			998			8
Credit Card Income		97			89			89			75			75			9			29			350			323			8
Other Income		27			18			65			4			16			50			69			114			(19	)		NM
Noninterest Revenue		893			1,094			1,265			1,055			970			(18	)		(8	)		4,307			4,306			—
Net Interest Income		2,652			2,706			2,608			2,625			2,696			(2	)		(2	)		10,591			10,464			1
TOTAL NET REVENUE		3,545			3,800			3,873			3,680			3,666			(7	)		(3	)		14,898			14,770			1
Provision for Credit Losses		78			239			175			197			270			(67	)		(71	)		689			1,323			(48	)
NONINTEREST EXPENSE
Compensation Expense		807			855			840			897			802			(6	)		1			3,399			3,147			8
Noncompensation Expense		1,276			1,250			1,297			1,349			1,352			2			(6	)		5,172			5,059			2
Amortization of Intangibles		132			133			133			133			133			(1	)		(1	)		531			532			—
TOTAL NONINTEREST EXPENSE		2,215			2,238			2,270			2,379			2,287			(1	)		(3	)		9,102			8,738			4
Operating Earnings before Income Tax Expense and Non-Core Portfolio Actions		1,252			1,323			1,428			1,104			1,109			(5	)		13			5,107			4,709			8
Income Tax Expense (Benefit)		477			501			536			413			423			(5	)		13			1,927			1,766			9
Operating Earnings before Non-Core Portfolio Actions		775			822			892			691			686			(6	)		13			3,180			2,943			8
Non-Core Portfolio Actions: (a)
Impacts to:
Other Income		—			—			74			104			—			NM			NM			178			—			NM
Provision for Credit Losses		—			—			—			18			415			NM			NM			18			500			(96	)
Total Non-Core Portfolio Actions		—			—			74			86			(415	)		NM			NM			160			(500	)		NM
Income Tax Expense (Benefit)		—			—			28			33			(158	)		NM			NM			61			(190	)		NM
Operating Earnings from Non-Core Portfolio Actions		—			—			46			53			(257	)		NM			NM			99			(310	)		NM
OPERATING EARNINGS	$	775		$	822		$	938		$	744		$	429			(6	)		81		$	3,279		$	2,633			25
FINANCIAL RATIOS
ROE		24	%		25	%		29	%		23	%		13	%		(100	)bp		1,100	bp		25	%		21	%		400	bp
ROA		1.35			1.44			1.67			1.36			0.74			(9	)		61			1.45			1.17			28
Overhead Ratio		62			59			58			63			62			300			—			60			59			100
SELECTED BALANCE SHEET (Ending)
Total Assets	$	226,560		$	227,952		$	225,646		$	217,191		$	217,855			(1	)%		4	%	$	226,560		$	217,855			4	%
Loans (b)		202,473			201,116			196,576			189,737			187,783			1			8			202,473			187,783			8
Core Deposits (c)		157,256			154,986			156,375			156,709			148,398			1			6			157,256			148,398			6
Total Deposits		182,765			180,727			183,084			183,786			176,451			1			4			182,765			176,451			4
SELECTED BALANCE SHEET (Average)
Total Assets	$	228,647		$	227,716		$	226,193		$	220,424		$	231,045			—			(1	)	$	225,758		$	224,354			1
Loans (d)		202,419			198,244			195,912			190,350			196,446			2			3			196,750			189,897			4
Core Deposits (c)		159,385			159,197			161,237			153,275			150,888			—			6			158,279			150,162			5
Total Deposits		183,498			183,921			186,994			180,019			178,558			—			3			183,608			179,748			2
Equity		13,050			13,050			13,050			13,050			12,865			—			1			13,050			12,259			6
Headcount		59,632			60,691			62,704			64,015			64,799			(2	)		(8	)		59,632			64,799			(8	)
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (e)	$	606		$	219		$	176		$	236		$	969			177			(37	)	$	1,237		$	1,875			(34	)
Nonperforming Loans		1,161			1,308			1,282			1,483			1,692			(11	)		(31	)		1,161			1,692			(31	)
Nonperforming Assets		1,385			1,557			1,551			1,796			2,053			(11	)		(33	)		1,385			2,053			(33	)
Allowance for Loan Losses		1,228			1,764			1,907			1,909			1,937			(30	)		(37	)		1,228			1,937			(37	)
Net Charge-off Rate (d)		1.28	%		0.47	%		0.40	%		0.56	%		2.26	%		81	bp		(98	)bp		0.69	%		1.16	%		(47	)bp
Allowance for Loan Losses to Ending Loans (b)		0.67			0.94			1.07			1.12			1.18			(27	)		(51	)		0.67			1.18			(51	)
Allowance for Loan Losses to Nonperforming Loans (f)		107			143			168			153			138			(3,600	)		(3,100	)		107			138			(3,100	)
Nonperforming Loans to Total Loans		0.57			0.65			0.65			0.78			0.90			(8	)		(33	)		0.57			0.90			(33	)

(a)	Includes gains on loan sales, valuation adjustments and loan loss reserve increases on the Bank One brokered home equity portfolio.
(b)	End of period loans include loans held for sale of $18,022 million, $12,816 million, $17,782 million, $19,499 million, and $23,390 million at December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(c)	Includes demand and savings deposits.
(d)	Average loans include loans held for sale of $13,534 million, $14,479 million, $19,818 million, $21,165 million, and $25,998 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale are $17,231 million and $28,160 million for 2004 and 2003, respectively. These amounts are not included in the net charge-off rate.
(e)	Includes $406 million of net charge-offs related to the Manufactured Home Loan portfolio in the fourth quarter of 2004 and $652 million of net charge-offs related to the non-core Bank One brokered home equity portfolio in the fourth quarter of 2003.
(f)	Nonperforming loans include loans held for sale of $13 million, $74 million, $144 million, $233 million, and $286 million at December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.

Page 12

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
RETAIL BUSINESSES
HOME FINANCE
PRIME PRODUCTION AND SERVICING
Production	$	196		$	168		$	224		$	207		$	344			17	%		(43	)%	$	795		$	1,483			(46	)%
Servicing:
Mortgage Servicing Revenue, net of amortization		169			134			184			145			159			26			6			632			501			26
MSR, net of hedging		(187	)		153			94			54			(2	)		NM			NM			114			801			(86	)
Total Net Revenue		178			455			502			406			501			(61	)		(64	)		1,541			2,785			(45	)
Noninterest Expense		266			296			276			303			323			(10	)		(18	)		1,141			1,174			(3	)
Operating Earnings		(56	)		103			143			63			112			NM			NM			253			1,016			(75	)
CONSUMER REAL ESTATE LENDING
Total Net Revenue	$	725		$	704		$	774		$	703		$	672			3			8		$	2,906		$	2,444			19
Provision for Credit Losses		(20	)		65			78			45			114			NM			NM			168			690			(76	)
Noninterest Expense		283			264			265			302			280			7			1			1,114			1,034			8
Operating Earnings		295			237			275			231			174			24			70			1,038			466			123
TOTAL HOME FINANCE
Total Net Revenue	$	903		$	1,159		$	1,276		$	1,109		$	1,173			(22	)		(23	)		4,447			5,229			(15	)
Provision for Credit Losses		(20	)		65			78			45			114			NM			NM			168			690			(76	)
Noninterest Expense		549			560			541			605			603			(2	)		(9	)		2,255			2,208			2
Operating Earnings		239			340			418			294			286			(30	)		(16	)		1,291			1,482			(13	)
Origination Volume by Channel (in billions)
Retail	$	18.5		$	19.7		$	27.2		$	20.0		$	21.2			(6	)		(13	)	$	85.4		$	112.5			(24	)
Wholesale		11.7			11.6			15.7			9.5			11.2			1			4			48.5			67.4			(28	)
Correspondent		4.2			5.4			7.9			5.3			9.3			(22	)		(55	)		22.8			44.5			(49	)
Correspondent Negotiated Transactions		10.0			11.3			12.4			7.7			14.0			(12	)		(29	)		41.4			83.3			(50	)
Total		44.4			48.0			63.2			42.5			55.7			(8	)		(20	)		198.1			307.7			(36	)
Origination Volume by Business (in billions)
Mortgage	$	32.4		$	34.1		$	47.9		$	31.5		$	44.1			(5	)		(27	)	$	145.9		$	265.4			(45	)
Home Equity		12.0			13.9			15.3			11.0			11.6			(14	)		3			52.2			42.3			23
Total		44.4			48.0			63.2			42.5			55.7			(8	)		(20	)		198.1			307.7			(36	)
Business Metrics (in billions)
Loans Serviced (Ending)	$	562.0		$	553.5		$	538.9		$	521.2		$	516.2			2			9		$	562.0		$	516.2			9
MSR Net Carrying Value (Ending)		5.1			5.2			5.8			4.3			4.9			(2	)		4			5.1			4.9			4
End of Period Loans Owned
Mortgage Loans Held for Sale		14.2			9.5			14.0			13.3			16.3			49			(13	)		14.2			16.3			(13	)
Mortgage Loans Retained		42.6			46.5			42.5			38.6			36.7			(8	)		16			42.6			36.7			16
Home Equity and Other Loans		67.9			67.3			63.6			59.4			57.7			1			18			67.9			57.7			18
Total End of Period Loans Owned		124.7			123.3			120.1			111.3			110.7			1			13			124.7			110.7			13
Average Loans Owned
Mortgage Loans Held for Sale		10.1			10.9			15.0			13.4			20.6			(7	)		(51	)		12.3			24.5			(50	)
Mortgage Loans Retained		44.6			44.0			39.9			37.4			40.4			1			10			41.5			33.2			25
Home Equity and Other Loans		70.1			66.2			62.4			59.2			57.0			6			23			64.3			55.1			17
Total Average Loans Owned		124.8			121.1			117.3			110.0			118.0			3			6			118.1			112.8			5
Overhead Ratio		61	%		48	%		42	%		55	%		51	%		1,300	bp		1,000	bp		51	%		42	%		900	bp
Credit Quality Statistics
30+ Day Delinquency Rate		1.27	%		1.50	%		1.39	%		1.59	%		2.07	%		(23	)		(80	)		1.27	%		2.07	%		(80	)
Net Charge-offs
Mortgage	$	5		$	6		$	5		$	4		$	28			(17	)%		(82	)%	$	20		$	55			(64	)%
Home Equity and Other Loans (a)		449			57			62			101			110			NM			308			669			532			26
Total Net Charge-offs		454			63			67			105			138			NM			229			689			587			17
Net Charge-off Rate
Mortgage		0.04	%		0.05	%		0.05	%		0.04	%		0.27	%		(1	)bp		(23	)bp		0.05	%		0.17	%		(12	)bp
Home Equity and Other Loans		2.55			0.34			0.40			0.69			0.77			221			178			1.04			0.97			7
Total Net Charge-off Rate (b)		1.57			0.23			0.27			0.45			0.57			134			100			0.65			0.66			(1	)
Nonperforming Assets	$	844		$	997		$	987		$	1,220		$	1,419			(15	)%		(41	)%	$	844		$	1,419			(41	)%

(a)	Fourth quarter and full year 2004 includes $406 million of net charge-offs related to the Manufactured Home Loan portfolio.
(b)	Excludes mortgage loans held for sale.

Page 13

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
RETAIL BUSINESSES, CONTINUED
CONSUMER & SMALL BUSINESS BANKING
Total Net Revenue	$	2,105		$	2,076		$	1,969		$	2,007		$	1,896			1	%		11	%	$	8,157		$	7,489			9	%
Provision for Credit Losses		39			79			37			57			38			(51	)		3			212			159			33
Noninterest Expense		1,362			1,379			1,432			1,479			1,380			(1	)		(1	)		5,652			5,605			1
Operating Earnings		430			377			308			290			292			14			47			1,405			1,060			33
Business Metrics (in billions)
End of Period Balances
Small Business Loans	$	12.5		$	12.4		$	12.4		$	12.2		$	12.1			1			3		$	12.5		$	12.1			3
Consumer and Other Loans (a)		2.2			2.3			1.0			1.0			0.8			(4	)		175			2.2			0.8			175
Total Loans		14.7			14.7			13.4			13.2			12.9			—			14			14.7			12.9			14
Core Deposits (b)		146.7			144.9			145.7			144.1			138.2			1			6			146.7			138.2			6
Total Deposits		172.2			170.6			172.0			171.2			166.3			1			4			172.2			166.3			4
Average Balances
Small Business Loans		12.4			12.4			12.4			12.2			11.9			—			4			12.4			11.8			5
Consumer and Other Loans (a)		2.2			2.3			2.2			2.6			2.3			(4	)		(4	)		2.3			2.5			(8	)
Total Loans		14.6			14.7			14.6			14.8			14.2			(1	)		3			14.7			14.3			3
Core Deposits (b)		148.1			148.2			148.2			143.5			139.0			—			7			147.0			134.4			9
Total Deposits		172.2			172.9			173.8			170.1			166.4			—			3			172.1			163.6			5
Number of:
Branches		2,508			2,467			2,435			2,409			2,402			41	#		106	#		2,508			2,402			106	#
ATMs		6,650			6,587			6,549			6,496			6,325			63			325			6,650			6,325			325
Personal Bankers		5,324			5,341			5,417			5,421			5,420			(17	)		(96	)		5,324			5,420			(96	)
Personal Checking Accounts (in thousands)		7,286			7,222			7,045			6,892			6,757			64			529			7,286			6,757			529
Business Checking Accounts (in thousands)		894			891			881			870			860			3			34			894			860			34
Online Registered Customers (in thousands)		6,587			6,084			NA			NA			NA			503			NM			6,587			NA			NM
Debit Cards Issued (in thousands)		8,392			8,282			8,057			7,815			7,597			110			795			8,392			7,597			795
Overhead Ratio		65	%		66	%		73	%		74	%		73	%		(100	)bp		(800	)bp		69	%		75	%		(600	)bp
Retail Brokerage Business Metrics
Investment Sales Volume	$	2,770		$	2,563		$	2,893		$	2,717		$	2,596			8	%		7	%	$	10,943		$	10,182			7	%
Number of Dedicated Investment Sales Representatives		1,364			1,393			1,404			1,440			1,322			(2	)		3			1,364			1,322			3
Credit Quality Statistics
Net Charge-offs
Small Business	$	32		$	24		$	29		$	20		$	31			33			3		$	105		$	119			(12	)
Consumer and Other Loans		24			36			11			7			18			(33	)		33			78			38			105
Total Net Charge-Offs		56			60			40			27			49			(7	)		14			183			157			17
Net Charge-off Rate
Small Business		1.03	%		0.77	%		0.94	%		0.66	%		1.03	%		26	bp		—	bp		0.85	%		1.01	%		(16	)bp
Consumer and Other Loans		4.34			6.23			2.01			1.08			3.10			(189	)		124			3.39			1.52			187
Total Net Charge-Off Rate		1.53			1.62			1.10			0.73			1.37			(9	)		16			1.24			1.10			14
Nonperforming Assets	$	299		$	313		$	317		$	327		$	336			(4	)%		(11	)%	$	299		$	336			(11	)%

(a)	Primarily community development loans.
(b)	Includes demand and savings deposits.

Page 14

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
RETAIL BUSINESSES
AUTO & EDUCATION FINANCE
Total Net Revenue	$	364		$	397		$	454		$	382		$	421			(8	)%		(14	)%	$	1,597		$	1,724			(7	)%
Provision for Credit Losses		59			95			60			95			118			(38	)		(50	)		309			474			(35	)
Noninterest Expense		166			163			159			160			160			2			4			648			638			2
Operating Earnings		84			85			144			77			88			(1	)		(5	)		390			376			4
Business Metrics (in billions)
End of Period Loans and Lease Receivables
Loans Outstanding	$	54.6		$	53.7		$	53.0		$	54.3		$	52.7			2			4		$	54.6		$	52.7			4
Lease Receivables		8.0			8.9			9.7			10.5			11.1			(10	)		(28	)		8.0			11.1			(28	)
Total End of Period Loans and Lease Receivables		62.6			62.6			62.7			64.8			63.8			—			(2	)		62.6			63.8			(2	)
Average Loans and Lease Receivables
Loans Outstanding (Average) (a)	$	54.2		$	52.9		$	53.9		$	54.5		$	52.4			2			3		$	53.9		$	50.4			7
Lease Receivables (Average)		8.4			9.2			10.1			10.7			11.4			(9	)		(26	)		9.6			12.2			(21	)
Total Average Loans and Lease Receivables (a)		62.6			62.1			64.0			65.2			63.8			1			(2	)		63.5			62.6			1
Overhead Ratio		46	%		41	%		35	%		42	%		38	%		500	bp		800	bp		41	%		37	%		400	bp
Credit Quality Statistics
30+ Day Delinquency Rate		1.55	%		1.38	%		1.30	%		1.26	%		1.71	%		17			(16	)		1.55	%		1.71	%		(16	)
Net Charge-offs
Loans	$	85		$	83		$	57		$	85		$	110			2	%		(23	)%	$	310		$	388			(20	)%
Lease Receivables		11			13			12			19			20			(15	)		(45	)		55			91			(40	)
Total Net Charge-offs		96			96			69			104			130			—			(26	)		365			479			(24	)
Net Charge-off Rate
Loans (a)		0.67	%		0.65	%		0.45	%		0.69	%		0.89	%		2	bp		(22)	bp		0.61	%		0.82	%		(21	)bp
Lease Receivables		0.52			0.56			0.48			0.71			0.70			(4	)		(18	)		0.57			0.75			(18	)
Total Net Charge-off Rate (a)		0.65			0.64			0.45			0.69			0.86			1			(21	)		0.61			0.81			(20	)
Nonperforming assets	$	242		$	247		$	247		$	249		$	298			(2	)%		(19	)%	$	242		$	298			(19	)%
INSURANCE
Total Net Revenue	$	173		$	168		$	174		$	182		$	176			3			(2	)	$	697		$	328			113
Noninterest Expense		138			136			138			135			144			1			(4	)		547			287			91
Operating Earnings		22			20			22			30			20			10			10			94			25			276
Memo:
Consolidated Gross Insurance-Related Revenue (b)		421			429			424			413			412			(2	)		2			1,687			1,259			34
Business Metrics — Ending Balances
Invested Assets	$	7,368		$	7,489		$	7,343		$	7,957		$	7,638			(2	)		(4	)	$	7,368		$	7,638			(4	)
Policy Loans		397			398			399			402			411			—			(3	)		397			411			(3	)
Insurance Policy and Claims Reserves		7,279			7,477			7,683			7,928			7,760			(3	)		(6	)		7,279			7,760			(6	)
Term Life Premiums — First Year Annualized		13			15			15			13			15			(13	)		(13	)		56			20			180
Proprietary Annuity Sales		35			39			74			76			80			(10	)		(56	)		224			548			(59	)
Policies in Force — Direct / Assumed (in thousands)		2,611			2,633			2,689			2,615			2,637			(1	)		(1	)		2,611			2,637			(1	)
Insurance in Force — Direct / Assumed		277,827			274,390			272,932			268,976			263,525			1			5			277,827			263,525			5
Insurance in Force — Retained		80,691			76,727			75,995			75,046			74,588			5			8			80,691			74,588			8
A.M. Best Rating		A			A			A			A			A									A			A

(a)

Average loans include loans held for sale of $3.4 billion, $2.2 billion, $2.6 billion, $4.7 billion, and $3.5 billion for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale were $3.2 billion and $3.2 billion for 2004 and 2003, respectively. These are not included in the net charge-off rate.

(b)

Includes revenue reported in the results of other businesses.

Page 15

JPMORGAN CHASE & CO.
CARD SERVICES — MANAGED BASIS
FINANCIAL HIGHLIGHTS
(in millions, except ratio data and where otherwise noted)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE
Asset Management, Administration and Commissions	$	—		$	26		$	26		$	25		$	27			NM	%		NM	%	$	77		$	112			(31	)%
Credit Card Income		886			784			823			678			839			13			6			3,171			2,922			9
Other Income		31			44			32			66			35			(30	)		(11	)		173			171			1
Noninterest Revenue		917			854			881			769			901			7			2			3,421			3,205			7
Net Interest Income		2,913			2,917			2,895			2,855			2,836			—			3			11,580			10,763			8
TOTAL NET REVENUE		3,830			3,771			3,776			3,624			3,737			2			2			15,001			13,968			7
Managed Provision for Credit Losses		1,735			1,662			1,757			1,725			1,801			4			(4	)		6,879			6,791			1
NONINTEREST EXPENSE
Compensation Expense		270			317			315			323			302			(15	)		(11	)		1,225			1,203			2
Noncompensation Expense		825			926			864			853			805			(11	)		2			3,468			3,020			15
Amortization of Intangibles		187			194			187			187			195			(4	)		(4	)		755			765			(1	)
TOTAL NONINTEREST EXPENSE		1,282			1,437			1,366			1,363			1,302			(11	)		(2	)		5,448			4,988			9
Operating Earnings Before Income Tax Expense		813			672			653			536			634			21			28			2,674			2,189			22
Income Tax Expense		298			251			244			200			238			19			25			993			821			21
OPERATING EARNINGS	$	515		$	421		$	409		$	336		$	396			22			30		$	1,681		$	1,368			23
Memo: Net Securitization Gains (Amortization)	$	—		$	(2	)	$	(2	)	$	2		$	(19	)		NM			NM		$	(2	)	$	(6	)		67
FINANCIAL METRICS
ROE		17	%		14	%		14	%		11	%		13	%		300	bp		400	bp		14	%		12	%		200	bp
Overhead Ratio		33			38			36			38			35			(500	)		(200	)		36			36			—
% of Average Managed Outstandings:
Net Interest Income		8.79			8.90			9.17			9.10			8.96			(11	)		(17	)		8.99			8.63			36
Managed Provision for Credit Losses		5.24			5.07			5.57			5.50			5.69			17			(45	)		5.34			5.45			(11	)
Noninterest Revenue		2.77			2.61			2.79			2.45			2.85			16			(8	)		2.66			2.57			9
Risk Adjusted Margin		6.32			6.44			6.40			6.05			6.11			(12	)		21			6.30			5.76			54
Noninterest Expense		3.87			4.39			4.33			4.34			4.11			(52	)		(24	)		4.23			4.00			23
Pre-tax Income		2.45			2.05			2.07			1.71			2.00			40			45			2.08			1.76			32
Operating Earnings		1.55			1.28			1.30			1.07			1.25			27			30			1.30			1.10			20
BUSINESS METRICS
Charge Volume (in billions)	$	75.3		$	73.3		$	70.6		$	63.5		$	68.9			3	%		9	%	$	282.7		$	255.3			11	%
Net Accounts Opened (in thousands) (a)		2,729			2,755			10,269			2,011			1,908			(1	)		43			17,764			8,755			103
Credit Cards Issued (in thousands)		94,285			95,946			96,343			87,014			85,942			(2	)		10			94,285			85,942			10
Number of Registered Internet Customers (in millions)		13.6			12.4			11.5			9.9			8.9			10			53			13.6			8.9			53
Merchant Acquiring Business
Bank Card Volume (in billions)	$	135.9		$	123.5		$	119.3		$	110.1		$	119.2			10			14		$	488.8		$	423.1			16
Total Transactions (in millions)		4,462			3,972			3,926			3,714			3,934			12			13			16,074			14,174			13

(a) Net accounts opened includes originations, purchases and sales.

Page 16

JPMORGAN CHASE & CO.
CARD SERVICES — MANAGED BASIS
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheet	$	64,575		$	60,241		$	28,981		$	29,187		$	29,543			7	%		119	%	$	64,575		$	29,543			119	%
Securitized Loans		70,795			71,256			69,752			68,747			71,956			(1	)		(2	)		70,795			71,956			(2	)
Seller’s Interest and Accrued Interest Receivable (a)		—			—			30,177			27,485			27,193			NM			NM			—			27,193			NM
Managed Loans	$	135,370		$	131,497		$	128,910		$	125,419		$	128,692			3			5		$	135,370		$	128,692			5
SELECTED AVERAGE BALANCES
Managed Assets	$	138,013		$	136,753		$	134,141		$	133,797		$	133,077			1			4		$	135,685		$	132,342			3
Loans:
Loans on Balance Sheet	$	61,317		$	59,386		$	29,748		$	29,473		$	30,042			3			104		$	45,065		$	31,799			42
Securitized Loans		70,505			70,980			68,008			70,054			71,814			(1	)		(2	)		69,892			69,069			1
Seller’s Interest and Accrued Interest Receivable (a)		—			—			29,181			26,652			23,763			NM	��		NM			13,882			23,820			(42	)
Managed Loans	$	131,822		$	130,366		$	126,937		$	126,179		$	125,619			1			5		$	128,839		$	124,688			3
Equity		11,800			11,800			11,800			11,800			11,800			—			—			11,800			11,800			—
Headcount		19,598			20,473			21,433			21,432			20,992			(4	)		(7	)		19,598			20,992			(7	)
CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,735		$	1,598		$	1,754		$	1,722		$	1,736			9			—		$	6,809		$	6,834			—
Net Charge-off Rate		5.24	%		4.88	%		5.56	%		5.49	%		5.48	%		36	bp		(24	)bp		5.28	%		5.48	%		(20	)bp
12 Month Lagged		5.49			5.08			5.70			5.58			5.67			41			(18	)		5.46			5.85			(39	)
Delinquency ratios
30+ days		3.70	%		3.81	%		3.72	%		4.02	%		4.21	%		(11	)		(51	)		3.70	%		4.21	%		(51	)
90+ days		1.72			1.75			1.73			1.95			1.99			(3	)		(27	)		1.72			1.99			(27	)
Allowance for Loan Losses	$	2,994		$	2,273		$	1,677		$	1,674		$	1,671			32	%		79	%	$	2,994		$	1,671			79	%
Allowance for Loan Losses to Period-end Loans (b)		4.64	%		3.77	%		5.79	%		5.74	%		5.66	%		87	bp		(102	)bp		4.64	%		5.66	%		(102	)bp

(a)	Due to the decertification of seller’s interest effective July 1, 2004, seller’s interest is reported in Loans on the Consolidated balance sheet for all periods subsequent to June 30, 2004.
(b)	The heritage Bank One seller’s interest was decertificated effective July 1, 2004, and is reported in Loans on the Consolidated balance sheet. As a result, the Allowance for Loan Losses to Period-end Loans ratio beginning September 30, 2004, declined as the remaining portion of the decertificated seller’s interest was recorded at fair value without a corresponding allowance for loan loss.

Page 17

JPMORGAN CHASE & CO.
CARD RECONCILIATION OF REPORTED AND MANAGED DATA
(in millions)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Data for the Period	$	1,672		$	1,632		$	1,534		$	1,427		$	1,637			2	%		2	%	$	6,265		$	5,945			5	%
Securitization Adjustments		(786	)		(848	)		(711	)		(749	)		(798	)		7			2			(3,094	)		(3,023	)		(2	)
Managed Credit Card Income	$	886		$	784		$	823		$	678		$	839			13			6		$	3,171		$	2,922			9
Other Income
Reported Data for the Period	$	30		$	47		$	77		$	105		$	66			(36	)		(55	)	$	259		$	243			7
Securitization Adjustments		1			(3	)		(45	)		(39	)		(31	)		NM			NM			(86	)		(72	)		(19	)
Managed Other Income	$	31		$	44		$	32		$	66		$	35			(30	)		(11	)	$	173		$	171			1
Net Interest Income
Reported Data for the Period	$	1,117		$	1,138		$	781		$	743		$	700			(2	)		60		$	3,779		$	2,652			42
Securitization Adjustments		1,796			1,779			2,114			2,112			2,136			1			(16	)		7,801			8,111			(4	)
Managed Net Interest Income	$	2,913		$	2,917		$	2,895		$	2,855		$	2,836			—			3		$	11,580		$	10,763			8
Total Net Revenue (b)
Reported Data for the Period	$	2,819		$	2,843		$	2,418		$	2,300		$	2,430			(1	)		16		$	10,380		$	8,952			16
Securitization Adjustments		1,011			928			1,358			1,324			1,307			9			(23	)		4,621			5,016			(8	)
Managed Total Net Revenue	$	3,830		$	3,771		$	3,776		$	3,624		$	3,737			2			2		$	15,001		$	13,968			7
Provision for Credit Losses
Reported Data for the Period	$	724		$	734		$	399		$	401		$	494			(1	)		47		$	2,258		$	1,775			27
Securitization Adjustments		1,011			928			1,358			1,324			1,307			9			(23	)		4,621			5,016			(8	)
Managed Provision for Credit Losses	$	1,735		$	1,662		$	1,757		$	1,725		$	1,801			4			(4	)	$	6,879		$	6,791			1
BALANCE SHEET — AVERAGE BALANCES
Total Average Assets
Reported Data for the Period	$	69,485		$	67,718		$	66,133		$	63,743		$	61,263			3			13		$	66,780		$	63,273			6
Securitization Adjustments		68,528			69,035			68,008			70,054			71,814			(1	)		(5	)		68,905			69,069			—
Managed Average Assets	$	138,013		$	136,753		$	134,141		$	133,797		$	133,077			1			4		$	135,685		$	132,342			3
CREDIT QUALITY STATISTICS
Net Charge-offs
Reported Net Charge-offs Data for the period	$	724		$	670		$	396		$	398		$	429			8			69		$	2,188		$	1,818			20
Securitization Adjustments		1,011			928			1,358			1,324			1,307			9			(23	)		4,621			5,016			(8	)
Managed Net Charge-offs	$	1,735		$	1,598		$	1,754		$	1,722		$	1,736			9			—		$	6,809		$	6,834			—

(a)

JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance of the underlying credit card loans, both sold and not sold: as the same borrower is continuing to use the credit card for ongoing charges, a borrower’s credit performance will impact both the receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed receivables, JPMorgan Chase treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire managed credit card portfolio. Operating results exclude the impact of credit card securitizations on revenue, the provision for credit losses, net charge-offs and receivables. Securitization does not change reported net income versus operating earnings; however, it does affect the classification of items on the Consolidated statement of income.

(b)

Includes Credit Card Income, Other Income and Net Interest Income.

Page 18

JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED							2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year							Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003				2003
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	147		$	162		$	168		$	162		$	169			(9	)%		(13	)%	$	639		$	725				(12	)%
Asset Management, Administration and Commissions		12			12			10			11			11			—			9			45			48				(6	)
Other Income		103			51			95			77			75			102			37			326			258				26
Noninterest Revenue		262			225			273			250			255			16			3			1,010			1,031				(2	)
Net Interest Income		623			608			593			583			596			2			5			2,407			2,366				2
TOTAL NET REVENUE		885			833			866			833			851			6			4			3,417			3,397				1
Provision for Credit Losses		21			14			18			(86	)		33			50			(36	)		(33	)		211				NM
NONINTEREST EXPENSE
Compensation Expense		153			176			167			158			152			(13	)		1			654			611				7
Noncompensation Expense		281			286			286			274			281			(2	)		—			1,127			1,149				(2	)
Amortization of Intangibles		17			18			18			18			18			(6	)		(6	)		71			75				(5	)
TOTAL NONINTEREST EXPENSE		451			480			471			450			451			(6	)		—			1,852			1,835				1
Operating Earnings Before Income Tax Expense		413			339			377			469			367			22			13			1,598			1,351				18
Income Tax Expense		159			124			143			180			142			28			12			606			519				17
OPERATING EARNINGS	$	254		$	215		$	234		$	289		$	225			18			13		$	992		$	832				19
MEMO:
Revenue by:
Lending	$	280		$	314		$	314		$	312		$	325			(11	)		(14	)	$	1,220		$	1,359				(10	)
Treasury & Securities Services		528			499			485			476			474			6			11			1,988			1,878				6
Investment Banking		61			24			49			45			51			154			20			179			164				9
Other		16			(4	)		18			—			1			NM			NM			30			(4	)			NM
Total Commercial Banking Revenue	$	885		$	833		$	866		$	833		$	851			6			4		$	3,417		$	3,397				1
FINANCIAL RATIOS
ROE		30	%		25	%		28	%		34	%		23	%		500	bp		700	bp		29	%		20	%			900	bp
ROA		1.81			1.53			1.70			2.14			1.64			28			17			1.79			1.46				33
Overhead Ratio		51			58			54			54			53			(700	)		(200	)		54			54				—
SELECTED BALANCE SHEET (Average)
Total Assets	$	55,837		$	55,957		$	55,268		$	54,279		$	54,359			—	%		3	%	$	55,338		$	56,907				(3	)%
Loans and Leases (a)		50,469			50,324			49,727			48,858			48,874			—			3			49,848			51,242				(3	)
Deposits		66,719			64,796			67,695			64,324			59,875			3			11			65,883			56,971				16
Equity		3,400			3,400			3,400			3,400			3,859			—			(12	)		3,400			4,247				(20	)
Headcount		4,555			4,595			4,586			4,625			4,694			(1	)		(3	)		4,555			4,694		��		(3	)
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	45		$	(13	)	$	30		$	—		$	51			NM			(12	)	$	62		$	273				(77	)
Nonperforming Loans (b)		527			579			614			780			875			(9	)		(40	)		527			875				(40	)
Allowance for Loan Losses		1,322			1,350			1,219			1,223			1,300			(2	)		2			1,322			1,300				2
Allowance for Lending Related Commitments		169			164			258			262			270			3			(37	)		169			270				(37	)
Net Charge-off Rate		0.35	%		(0.10	)%		0.24	%		—	%		0.41	%		45	bp		(6	)bp		0.12	%		0.53	%			(41	)bp
Allowance for Loan Losses to Average Loans		2.62			2.68			2.45			2.50			2.66			(6	)		(4	)		2.65			2.54				11
Allowance for Loan Losses to Nonperforming Loans (b)		251			233			201			157			149			1,800			10,200			251			149				10,200
Nonperforming Loans to Average Loans		1.04			1.15			1.23			1.60			1.79			(11	)		(75	)		1.06			1.71				(65	)

(a)	Includes a $411 million reclass from investment securities in the fourth quarter of 2004.
(b)	Nonperforming loans include loans held for sale of $9 million and $3 million, as of June 30, 2004 and December 31, 2003, respectively. There were no nonperforming loans held for sale as of December 31, 2004, September 30, 2004 and March 31, 2004. These amounts are not included in the allowance coverage ratios.

Page 19

JPMORGAN CHASE & CO.
TREASURY & SECURITIES SERVICES
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)

							PRO FORMA COMBINED									4QTR 2004							PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change							Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003				2004			2003			2003
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	200		$	218		$	243		$	245		$	243			(8	)%		(18	)%		$	906		$	937			(3	)%
Asset Management, Administration and Commissions		630			600			645			601			551			5			14				2,476			2,055			20
Other Income		112			103			109			85			123			9			(9	)			409			341			20
Noninterest Revenue		942			921			997			931			917			2			3				3,791			3,333			14
Net Interest Income		471			418			371			349			353			13			33				1,609			1,439			12
TOTAL NET REVENUE		1,413			1,339			1,368			1,280			1,270			6			11				5,400			4,772			13
Provision for Credit Losses		3			—			3			1			3			NM			—				7			11			(36	)
Credit Reimbursement to IB (a)		(43	)		(43	)		(43	)		(43	)		(54	)		—			20				(172	)		(216	)		20
NONINTEREST EXPENSE
Compensation Expense		471			472			466			470			452			—			4				1,879			1,748			7
Noncompensation Expense		643			654			678			599			540			(2	)		19				2,574			2,034			27
Amortization of Intangibles		32			30			31			32			25			7			28				125			91			37
TOTAL NONINTEREST EXPENSE		1,146			1,156			1,175			1,101			1,017			(1	)		13				4,578			3,873			18
Operating Earnings before Income Tax Expense		221			140			147			135			196			58			13				643			672			(4	)
Income Tax Expense (Benefit)		76			44			44			42			67			73			13				206			218			(6	)
OPERATING EARNINGS	$	145		$	96		$	103		$	93		$	129			51			12			$	437		$	454			(4	)
REVENUE BY BUSINESS
Treasury Services (b)	$	642		$	629		$	584		$	566		$	526			2			22			$	2,421		$	2,065			17
Investor Services		454			404			470			413			396			12			15				1,741			1,502			16
Institutional Trust Services		317			306			314			301			348			4			(9	)			1,238			1,205			3
TOTAL NET REVENUE	$	1,413		$	1,339		$	1,368		$	1,280		$	1,270			6			11			$	5,400		$	4,772			13
MEMO
Treasury Services Firmwide Revenue (b)	$	1,238		$	1,205		$	1,164		$	1,131		$	1,095			3			13			$	4,738		$	4,388			8
Treasury & Securities Services Firmwide Revenue (b)		2,009			1,915			1,948			1,845			1,839			5			9				7,717			7,095			9
FINANCIAL RATIOS
ROE		30	%		20	%		22	%		20	%		27	%		1,000	bp		300	bp			23	%		24	%		(100	)bp
Overhead Ratio		81			86			86			86			80			(500	)		100				85			81			400
MEMO
Treasury Services Firmwide Overhead Ratio (c)		61			59			64			67			63			200			(200	)			63			61			200
Treasury & Securities Services Firmwide Overhead Ratio (c)		69			72			72			72			68			(300	)		100				71			68			300
BUSINESS METRICS																						��
Assets under Custody (in billions)	$	9,137		$	8,261		$	7,980		$	8,001		$	7,597			11	%		20	%		$	9,137		$	7,597			20	%
Corporate Trust Securities under Administration (in billions) (d)		6,593			6,569			6,464			6,611			6,320			—			4				6,593			6,320			4
SELECTED BALANCE SHEET (Average)
Total Assets	$	28,538		$	24,831		$	26,745		$	25,141		$	26,610			15			7			$	26,316		$	24,951			5
Loans		9,988			8,457			8,272			7,524			7,775			18			28				8,564			7,319			17
Deposits
U.S. Deposits		101,351			90,466			85,828			79,168			74,030			12			37				89,240			70,911			26
Non-U.S. Deposits		48,726			48,234			48,994			45,656			41,548			1			17				47,906			40,126			19
Total Deposits		150,077			138,700			134,822			124,824			115,578			8			30				137,146			111,037			24
Equity		1,900			1,900			1,900			1,900			1,900			—			—				1,900			1,900			—
MEMO
Treasury Services Firmwide Deposits (e)		125,345			121,123			124,818			120,364			112,952			3			11				122,914			111,017			11
Treasury & Securities Services Firmwide Deposits (e)		211,988			198,860			198,067			186,179			173,047			7			23				198,810			165,792			20
Headcount		22,612			22,246			22,393			22,821			22,673			2			—				22,612			22,673			—

(a)	Management has charged TSS a credit reimbursement, which is the pre-tax amount of earnings, less cost of capital, related to certain exposures managed within the Investment Bank (“IB”) credit portfolio on behalf of clients shared with TSS.
(b)	TSS and Treasury Services (“TS”) firmwide revenues include TS revenues recorded in certain other lines of business. Revenue associated with Treasury Services’ customers who are also customers of the Commercial Banking, Consumer & Small Business Banking and Asset & Wealth Management lines of business are reported in these other lines of business and are excluded from Treasury Services as follows:

					PRO FORMA COMBINED						4QTR 2004						PRO FORMA COMBINED				2004
	4QTR		3QTR		2QTR		1QTR		4QTR		Change						Full Year				Change
	2004		2004		2004		2004		2003		3Q 2004			4Q 2003			2004		2003		2003
Treasury Services Revenue Reported in Commercial Banking	$	528	$	499	$	485	$	476	$	474		6	%		11	%	$	1,988	$	1,878		6	%
Treasury Services Revenue Reported in Other Lines of Business		68		77		95		89		95		(12	)		(28	)		329		445		(26	)

Note: Foreign Exchange revenues are apportioned between TSS and the Investment Bank and only TSS’s share is included in TSS Firmwide Revenue.
(c)	TSS and TS Firmwide Overhead Ratios have been calculated based on the Firmwide Revenues described in footnote (b) and TSS or TS expenses, respectively, including those allocated to certain other lines of business.
(d)	Corporate Trust Securities under Administration include debt held in trust on behalf of third parties and debt serviced as agent.
(e)	TSS and TS Firmwide Deposits include TS’ deposits recorded in certain other lines of business. Deposits associated with Treasury Services’ customers who are also customers of the Commercial Banking line of businesses are reported in that line of business and are excluded from Treasury Services.

Page 20

JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data, and where otherwise noted)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	10		$	10		$	9		$	10		$	11			—	%		(9	)%	$	39		$	44			(11	)%
Asset Management, Administration and Commissions		952			859			886			911			844			11			13			3,608			3,072			17
Other Income		60			55			49			52			89			9			(33	)		216			213			1
Noninterest Revenue		1,022			924			944			973			944			11			8			3,863			3,329			16
Net Interest Income		288			269			241			240			245			7			18			1,038			946			10
TOTAL NET REVENUE		1,310			1,193			1,185			1,213			1,189			10			10			4,901			4,275			15
Provision for Credit Losses		(21	)		1			(5	)		9			37			NM			NM			(16	)		48			NM
NONINTEREST EXPENSE
Compensation Expense		459			452			448			428			409			2			12			1,787			1,626			10
Noncompensation Expense		436			409			423			394			413			7			6			1,662			1,520			9
Amortization of Intangibles		24			23			23			23			22			4			9			93			88			6
TOTAL NONINTEREST EXPENSE		919			884			894			845			844			4			9			3,542			3,234			10
Operating Earnings before Income Tax Expense		412			308			296			359			308			34			34			1,375			993			38
Income Tax Expense (Benefit)		149			111			106			130			109			34			37			496			364			36
OPERATING EARNINGS	$	263		$	197		$	190		$	229		$	199			34			32		$	879		$	629			40
FINANCIAL RATIOS
ROE		44	%		33	%		32	%		38	%		32	%		1,100	bp		1,200	bp		37	%		25	%		1,200	bp
Overhead Ratio		70			74			75			70			71			(400	)		(100	)		72			76			(400	)
Pre-Tax Margin Ratio (a)		31			26			25			30			26			500			500			28			23			500
BUSINESS METRICS
Number of:
Client Advisors		1,226			1,230			1,209			1,239			1,261			—	%		(3	)%		1,226			1,261			(3	)%
Brown Co Average Daily Trades		30,521			23,969			28,702			36,470			31,369			27			(3	)		29,901			27,150			10
Retirement Planning Services Participants		918,000			874,000			844,000			816,000			756,000			5			21			918,000			756,000			21
Star Rankings: (b)
% of Customer Assets in Funds Ranked 4 or Better		48	%		56	%		52	%		50	%		48	%		(14	)		—			48	%		48	%		—
% of Customer Assets in Funds Ranked 3 or Better		81			80			78			78			75			1			8			81			75			8
REVENUE BY CLIENT SEGMENT
Institutional	$	296		$	287		$	269		$	281		$	264			3			12		$	1,133		$	968			17
Private Bank		427			383			388			394			406			11			5			1,592			1,515			5
Private Client Services		260			251			241			254			237			4			10			1,006			920			9
Retail		327			272			287			284			282			20			16			1,170			872			34
Total Net Revenue	$	1,310		$	1,193		$	1,185		$	1,213		$	1,189			10			10		$	4,901		$	4,275			15
SELECTED BALANCE SHEET (Average)
Total Assets	$	40,689		$	39,882		$	40,223		$	40,171		$	38,765			2			5		$	40,241		$	38,337			5
Loans		25,966			25,408			24,943			24,130			23,618			2			10			25,115			23,333			8
Deposits		43,022			38,520			36,552			34,792			32,722			12			31			38,236			30,884			24
Equity		2,400			2,400			2,400			2,400			2,465			—			(3	)		2,400			2,517			(5	)
Headcount		12,287			12,368			12,311			12,180			12,374			(1	)		(1	)		12,287			12,374			(1	)
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	5		$	6		$	6		$	53		$	1			(17	)		400		$	70		$	21			233
Nonperforming Loans		79			125			144			159			215			(37	)		(63	)		79			215			(63	)
Allowance for Loan Losses		216			241			114			124			170			(10	)		27			216			170			27
Allowance for Lending Related Commitments		5			5			4			5			4			—			25			5			4			25
Net Charge-off Rate		0.08	%		0.09	%		0.10	%		0.88	%		0.02	%		(1	)bp		6	bp		0.28	%		0.09	%		19	bp
Allowance for Loan Losses to Average Loans		0.83			0.95			0.46			0.51			0.72			(12	)		11			0.86			0.73			13
Allowance for Loan Losses to Nonperforming Loans		273			193			79			78			79			8,000			19,400			273			79			19,400
Nonperforming Loans to Average Loans		0.30			0.49			0.58			0.66			0.91			(19	)		(61	)		0.31			0.92			(61	)

(a)	Pre-tax margin represents Operating Earnings before Income Taxes / Total Net Revenue, which is a comprehensive measure of pre-tax performance and is another basis by which AWM management evaluates its performance and that of its competitors. Pre-tax margin is an effective measure of AWM’s earnings after all costs are taken into consideration.
(b)	Derived from Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.

Page 21

JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions, except ranking data)

						PRO FORMA COMBINED								4QTR 2004						PRO FORMA COMBINED					2004
	4QTR		3QTR			2QTR			1QTR		4QTR			Change						Full Year					Change
	2004		2004			2004			2004		2003			3Q 2004			4Q 2003			2004		2003			2003
Asset Class
Liquidity	$	232	$	210		$	216		$	228	$	228			10	%		2	%	$	232	$	228			2	%
Fixed Income		171		174			180			185		181			(2	)		(6	)		171		181			(6	)
Equities, Balanced and Other		388		351			355			359		335			11			16			388		335			16
Assets under Management		791		735			751			772		744			8			6			791		744			6
Custody / Brokerage / Administration / Deposits		478		434			428			415		397			10			20			478		397			20
Total Assets under Supervision	$	1,269	$	1,169		$	1,179		$	1,187	$	1,141			9			11		$	1,269	$	1,141			11
Client Segment
Institutional
Assets under Management	$	466	$	426		$	436		$	449	$	436			9			7		$	466	$	436			7
Custody / Brokerage / Administration / Deposits		184		170			170			164		160			8			15			184		160			15
Assets under Supervision		650		596			606			613		596			9			9			650		596			9
Private Bank
Assets under Management		139		136			139			141		138			2			1			139		138			1
Custody / Brokerage / Administration / Deposits		165		143			138			135		128			15			29			165		128			29
Assets under Supervision		304		279			277			276		266			9			14			304		266			14
Private Client Services
Assets under Management		53		51			51			52		52			4			2			53		52			2
Custody / Brokerage / Administration / Deposits		41		40			40			39		38			2			8			41		38			8
Assets under Supervision		94		91			91			91		90			3			4			94		90			4
Retail
Assets under Management		133		122			125			129		117			9			14			133		117			14
Custody / Brokerage / Administration / Deposits		88		81			80			78		72			9			22			88		72			22
Assets under Supervision		221		203			205			207		189			9			17			221		189			17
Total Assets under Supervision	$	1,269	$	1,169		$	1,179		$	1,187	$	1,141			9			11		$	1,269	$	1,141			11
Geographic Region
Americas
Assets under Management	$	562	$	531		$	546		$	560	$	548			6			3		$	562	$	548			3
Custody / Brokerage / Administration / Deposits		444		404			396			385		362			10			23			444		362			23
Assets under Supervision		1,006		935			942			945		910			8			11			1,006		910			11
International
Assets under Management		229		204			205			212		196			12			17			229		196			17
Custody / Brokerage / Administration / Deposits		34		30			32			30		35			13			(3	)		34		35			(3	)
Assets under Supervision		263		234			237			242		231			12			14			263		231			14
Total Assets under Supervision	$	1,269	$	1,169		$	1,179		$	1,187	$	1,141			9			11		$	1,269	$	1,141			11
Memo:
Mutual Funds Assets:
Liquidity	$	183	$	163		$	173		$	175	$	178			12			3		$	183	$	179			3
Fixed Income		41		48			49			50		49			(15	)		(16	)		41		49			(16	)
Equities, Balanced and Other		104		97			96			99		88			7			18			104		88			18
Total Mutual Funds Assets	$	328	$	308		$	318		$	324	$	315			6			4		$	328	$	315			4
Assets Under Supervision Rollforward
Beginning Balance	$	1,169	$	1,179		$	1,187		$	1,141	$	1,087			(1	)%		8	%	$	1,141	$	974			17	%
Net Asset Flows		18		(7	)		—			14		(1	)		NM			NM			25		(9	)		NM
Market / Other Impact (a)		82		(3	)		(8	)		32		55			NM			49			103		176			(41	)
Ending Balance	$	1,269	$	1,169		$	1,179		$	1,187	$	1,141			9			11		$	1,269	$	1,141			11

(a) Other reflects the acquisition of a majority interest in Highbridge Capital Management in the fourth quarter of 2004 ($7 billion), and the acquisition of RPS ($41 billion) in the second quarter of 2003.

Page 22

JPMORGAN CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS
(in millions, except headcount data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
Revenue
Securities / Private Equity Gains (Losses)	$	584		$	347		$	343		$	561		$	(9	)		68	%		NM		$	1,835		$	1,131			62	%
Other Income		(140	)		67			(11	)		(94	)		(40	)		NM			(250	)%		(178	)		(234	)		24
Noninterest Revenue		444			414			332			467			(49	)		7			NM			1,657			897			85
Net Interest Income		(667	)		(500	)		(234	)		(277	)		(178	)		(33	)		(275	)		(1,678	)		(636	)		(164	)
TOTAL NET REVENUE		(223	)		(86	)		98			190			(227	)		(159	)		2			(21	)		261			NM
Provision for Credit Losses		—			(1	)		(27	)		(84	)		(48	)		NM			NM			(112	)		124			NM
Noninterest Expense
Compensation Expense		662			786			751			799			625			(16	)		6			2,998			2,894			4
Noncompensation Expense		1,215			1,146			1,200			1,199			1,228			6			(1	)		4,760			4,506			6
Net Expenses Allocated to Other Businesses		(1,417	)		(1,426	)		(1,463	)		(1,452	)		(1,379	)		1			(3	)		(5,758	)		(5,647	)		(2	)
TOTAL NONINTEREST EXPENSE		460			506			488			546			474			(9	)		(3	)		2,000			1,753			14
Operating Earnings before Income Tax Expense		(683	)		(591	)		(363	)		(272	)		(653	)		(16	)		(5	)		(1,909	)		(1,616	)		(18	)
Income Tax Expense (Benefit)		(387	)		(372	)		(260	)		(257	)		(446	)		(4	)		13			(1,276	)		(1,101	)		(16	)
OPERATING EARNINGS	$	(296	)	$	(219	)	$	(103	)	$	(15	)	$	(207	)		(35	)		(43	)	$	(633	)	$	(515	)		(23	)
SELECTED AVERAGE BALANCE SHEET
Short-term Investments (a)	$	19,252		$	26,432		$	14,669		$	5,878		$	7,905			(27	)		144		$	16,593		$	8,297			100
Investment Portfolio (b)		69,604			71,050			93,259			98,541			95,359			(2	)		(27	)		83,532			104,035			(20	)
Goodwill (c)		42,980			42,958			43,030			42,942			42,555			—			1			42,978			42,279			2
Total Assets		197,794			204,884			225,267			223,793			200,443			(3	)		(1	)		212,871			205,723			3
Headcount		24,806			24,482			24,386			24,891			25,074			1			(1	)		24,806			25,074			(1	)
TREASURY
Securities Gains (Losses) (d)	$	77		$	109		$	(54	)	$	226		$	(267	)		(29	)		NM		$	358		$	740			(52	)
Investment Portfolio (Average)	$	63,362		$	65,508		$	85,460		$	89,248		$	86,097			(3	)		(26	)	$	75,832		$	94,233			(20	)

(a)	Represents federal funds sold, securities borrowed, trading assets — debt and equity instruments and trading assets — derivative receivables.
(b)	Represents investment securities and private equity investments.
(c)	All goodwill is allocated to the Corporate line of business.
(d)	Excludes gains/losses on securities used to manage risk associated with mortgage servicing rights.

Page 23

JPMORGAN CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
PRIVATE EQUITY
Private Equity Gains (Losses)
Direct Investments
Realized Gains	$	442		$	277		$	411		$	340		$	290			60	%		52	%	$	1,470		$	674			118	%
Write-ups / (Write-downs)		(111	)		(31	)		(54	)		(69	)		(207	)		(258	)		46			(265	)		(447	)		41
Mark-to-Market Gains (Losses)		167			(27	)		13			39			67			NM			149			192			247			(22	)
Total Direct Investments		498			219			370			310			150			127			232			1,397			474			195
Third-Party Fund Investments		8			16			22			23			72			(50	)		(89	)		69			(114	)		NM
Total Private Equity Gains (Losses)		506			235			392			333			222			115			128			1,466			360			307
Other Income		16			14			10			9			10			14			60			49			46			7
Net Interest Income		(70	)		(89	)		(98	)		(113	)		(112	)		21			38			(370	)		(456	)		19
Total Net Revenue		452			160			304			229			120			183			277			1,145			(50	)		NM
Total Noninterest Expense		79			73			79			78			87			8			(9	)		309			298			4
Operating Earnings before Income Tax Expense		373			87			225			151			33			329			NM			836			(348	)		NM
Income Tax Expense (Benefit)		134			27			75			54			11			396			NM			290			(129	)		NM
OPERATING EARNINGS	$	239		$	60		$	150		$	97		$	22			298			NM		$	546		$	(219	)		NM
Private Equity Portfolio Information
Direct Investments
Public Securities
Carrying Value	$	1,170		$	958		$	936		$	809		$	741			22			58
Cost		744			675			623			578			509			10			46
Quoted Public Value		1,758			1,415			1,431			1,239			1,109			24			59
Private Direct Securities
Carrying Value		5,686			6,011			6,140			6,424			6,980			(5	)		(19	)
Cost		7,178			7,551			7,757			7,924			8,429			(5	)		(15	)
Third-Party Fund Investments
Carrying Value		641			1,138			1,559			1,803			1,896			(44	)		(66	)
Cost		1,042			1,761			2,161			2,447			2,614			(41	)		(60	)
Total Private Equity Portfolio — Carrying Value	$	7,497		$	8,107		$	8,635		$	9,036		$	9,617			(8	)		(22	)
Total Private Equity Portfolio — Cost	$	8,964		$	9,987		$	10,541		$	10,949		$	11,552			(10	)		(22	)

Page 24

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)

											Dec 31, 2004
					PRO FORMA COMBINED						Change
	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30			Dec 31
	2004		2004		2004		2004		2003		2004			2003
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	99,868	$	99,451	$	99,860	$	99,455	$	99,352		—	%		1	%
Loans — Non-U.S.		35,199		32,893		33,151		34,376		33,832		7			4
TOTAL WHOLESALE LOANS — REPORTED		135,067		132,344		133,011		133,831		133,184		2			1
CONSUMER (b)
Consumer Real Estate
Home Finance — Home Equity & Other		67,837		67,368		63,598		59,437		57,710		1			18
Home Finance — Mortgage		56,816		56,035		56,502		51,881		53,006		1			7
Auto & Education Finance		62,712		62,587		62,671		64,784		63,754		—			(2	)
Small Business & Other Consumer		15,107		15,126		13,805		13,635		13,313		—			13
Credit Card Receivables — Reported		64,575		60,241		28,981		29,187		29,543		7			119
TOTAL CONSUMER LOANS — REPORTED		267,047		261,357		225,557		218,924		217,326		2			23
TOTAL LOANS — REPORTED		402,114		393,701		358,568		352,755		350,510		2			15
Credit Card Securitizations		70,795		71,256		99,929		96,232		99,149		(1	)		(29	)
TOTAL LOANS — MANAGED		472,909		464,957		458,497		448,987		449,659		2			5
Derivative Receivables (c)		65,982		57,795		55,086		63,898		88,959		14			(26	)
Interests in Purchased Receivables (d)		31,722		30,479		30,184		28,912		37,690		4			(16	)
Other Receivables		—		—		108		108		108		NM			NM
TOTAL CREDIT-RELATED ASSETS		570,613		553,231		543,875		541,905		576,416		3			(1	)
Wholesale Lending-Related Commitments		309,399		315,946		321,615		333,655		324,030		(2	)		(5	)
TOTAL	$	880,012	$	869,177	$	865,490	$	875,560	$	900,446		1			(2	)
Memo: Total by Category
Total Wholesale Exposure (e)	$	542,170	$	536,564	$	540,004	$	560,404	$	583,971		1			(7	)
Total Consumer Managed Loans (f)		337,842		332,613		325,486		315,156		316,475		2			7
Total	$	880,012	$	869,177	$	865,490	$	875,560	$	900,446		1			(2	)
WHOLESALE CREDIT EXPOSURE
Credit Exposure	$	542,170	$	536,564	$	540,004	$	560,404	$	583,971		1			(7	)
Risk Profile of Credit Exposure:
Investment-Grade		441,930		429,198		NA		NA		NA		3			NM
Noninvestment-Grade:
Performing		98,074		104,990		NA		NA		NA		(7	)		NM
Nonperforming		1,815		2,021		NA		NA		NA		(10	)		NM
Purchased Held for Sale Commercial Loans (g)		351		355		NA		NA		NA		(1	)		NM

(a)	Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset & Wealth Management.
(b)	Includes Retail Financial Services and Card Services.
(c)	These amounts include the effect of legally enforceable master netting agreements. Effective January 1, 2004, the Firm elected to net cash paid and received under legally enforceable master netting agreements. Prior periods were not restated.
(d)	These represent undivided interests in pools of receivables and similar types of assets.
(e)	Represents Total Wholesale Loans, Derivative Receivables, Interests in Purchased Receivables, Other Receivables and Wholesale Lending-Related Commitments.
(f)	Represents Total Consumer Loans plus Credit Card Securitizations, excluding consumer lending-related commitments.
(g)	Represents distressed wholesale loans purchased as part of the IB’s proprietary investing activities.
Note:	The risk profile is based on JPMorgan Chase’s internal risk ratings, which generally correspond to the following ratings as defined by Standard & Poor’s / Moody’s:
	Investment-Grade: AAA / Aaa to BBB- / Baa3
	Noninvestment-Grade: BB+ / Ba1 and below

Page 25

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)

																Dec 31, 2004
							PRO FORMA COMBINED									Change
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Dec 31
	2004			2004			2004			2004			2003			2004			2003
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS
Loans — U.S.	$	1,228		$	1,405		$	1,382		$	1,786		$	2,108			(13	)%		(42	)%
Loans — Non-U.S.		346			378			726			856			973			(8	)		(64	)
TOTAL WHOLESALE LOANS — REPORTED (a)		1,574			1,783			2,108			2,642			3,081			(12	)		(49	)
CONSUMER LOANS
Consumer Real Estate		673			789			750			944			1,103			(15	)		(39	)
Auto & Education Finance		193			211			221			220			264			(9	)		(27	)
Small Business & Other Consumer		295			308			311			319			325			(4	)		(9	)
Credit Card Receivables — Reported		8			9			9			10			11			(11	)		(27	)
TOTAL CONSUMER LOANS — REPORTED		1,169			1,317			1,291			1,493			1,703			(11	)		(31	)
TOTAL LOANS REPORTED (a)		2,743			3,100			3,399			4,135			4,784			(12	)		(43	)
Derivative Receivables		241			238			223			240			253			1			(5	)
Other Receivables		—			—			108			108			108			NM			NM
Assets Acquired in Loan Satisfactions		247			299			320			369			422			(17	)		(41	)
TOTAL NONPERFORMING ASSETS (a)	$	3,231		$	3,637		$	4,050		$	4,852		$	5,567			(11	)		(42	)
PURCHASED HELD FOR SALE WHOLESALE LOANS (b)	$	351		$	355		$	374		$	331		$	22			(1	)		NM
TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.68	%		0.79	%		0.95	%		1.17	%		1.36	%		(11	)bp		(68	)bp
									��
NONPERFORMING ASSETS BY LOB
Investment Bank	$	1,196		$	1,321		$	1,684		$	2,060		$	2,361			(9	)%		(49	)%
Retail Financial Services		1,385			1,557			1,551			1,796			2,053			(11	)		(33	)
Card Services		8			9			9			10			11			(11	)		(27	)
Commercial Banking		547			606			642			810			909			(10	)		(40	)
Treasury & Securities Services		14			4			5			—			—			250			NM
Asset and Wealth Management		81			140			159			176			233			(42	)		(65	)
Total	$	3,231		$	3,637		$	4,050		$	4,852		$	5,567			(11	)		(42	)

(a)	Excludes purchased held-for-sale (“HFS”) wholesale loans.
(b)	Represents distressed wholesale loans purchased as part of the IB’s proprietary investing activities.

Page 26

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
GROSS CHARGE-OFFS
Wholesale Loans	$	123		$	80		$	208		$	208		$	274			54	%		(55	)%	$	619		$	1,730			(64	)%
Consumer (Excluding Card)		658			269			244			314			1,034			145			(36	)		1,485			2,135			(30	)
Credit Card Receivables — Reported		784			760			434			437			470			3			67			2,415			2,015			20
Total Loans — Reported		1,565			1,109			886			959			1,778			41			(12	)		4,519			5,880			(23	)
Credit Card Securitizations		1,126			1,039			1,507			1,479			1,458			8			(23	)		5,151			5,652			(9	)
Total Loans — Managed		2,691			2,148			2,393			2,438			3,236			25			(17	)		9,670			11,532			(16	)
RECOVERIES
Wholesale Loans		55			104			167			130			217			(47	)		(75	)		456			559			(18	)
Consumer (Excluding Card)		52			50			68			78			65			4			(20	)		248			260			(5	)
Credit Card Receivables — Reported		60			90			38			39			41			(33	)		46			227			197			15
Total Loans — Reported		167			244			273			247			323			(32	)		(48	)		931			1,016			(8	)
Credit Card Securitizations		115			111			149			155			151			4			(24	)		530			636			(17	)
Total Loans — Managed		282			355			422			402			474			(21	)		(41	)		1,461			1,652			(12	)
NET CHARGE-OFFS
Wholesale Loans		68			(24	)		41			78			57			NM			19			163			1,171			(86	)
Consumer (Excluding Card)		606			219			176			236			969			177			(37	)		1,237			1,875			(34	)
Credit Card Receivables — Reported		724			670			396			398			429			8			69			2,188			1,818			20
Total Loans — Reported		1,398			865			613			712			1,455			62			(4	)		3,588			4,864			(26	)
Credit Card Securitizations		1,011			928			1,358			1,324			1,307			9			(23	)		4,621			5,016			(8	)
Total Loans — Managed	$	2,409		$	1,793		$	1,971		$	2,036		$	2,762			34			(13	)	$	8,209		$	9,880			(17	)
NET CHARGE-OFF RATES — ANNUALIZED
Wholesale Loans (a)		0.21	%		(0.08	)%		0.13	%		0.25	%		0.18	%		29	bp		3	bp		0.13	%		0.86	%		(73	)bp
Consumer (Excluding Card) (b)		1.28			0.47			0.40			0.56			2.26			81			(98	)		0.69			1.16			(47	)
Credit Card Receivables — Reported		4.70			4.49			5.35			5.43			5.67			21			(97	)		4.86			5.72			(86	)
Total Loans — Reported (a) (b)		1.47			0.93			0.74			0.89			1.76			54			(29	)		1.02			1.48			(46	)
Credit Card Securitizations		5.70			5.20			5.62			5.51			5.43			50			27			5.52			5.40			12
Total Loans — Managed (a) (b)		2.13			1.62			1.85			1.95			2.59			51			(46	)		1.88			2.34			(46	)
Memo: Credit Card — Managed		5.24			4.88			5.56			5.49			5.48			36			(24	)		5.28			5.48			(20	)

(a)

Wholesale loans held for sale were $7,684 million, $7,281 million, $5,259 million, $5,742 million, and $4,279 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale were $6,492 million and $4,201 million for 2004 and 2003, respectively. These amounts are not included in the net charge-off rates.

(b)

Average consumer loans (excluding Card) held for sale were $13,534 million, $14,479 million, $19,818 million, $21,165 million, and $25,998 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale were $17,231 million and $28,160 million for 2004 and 2003, respectively. These amounts are not included in the net charge-off rates.

Page 27

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	7,493		$	7,090		$	7,443		$	7,995		$	8,660			6	%		(13	)%	$	7,995		$	9,273			(14	)%
Net Charge-Offs		(1,398	)		(865	)		(613	)		(712	)		(1,455	)		(62	)		4			(3,588	)		(4,864	)		26
Provision for Loan Losses (a)		1,206			1,395			285			162			790			(14	)		53			3,048			3,721			(18	)
Other		19			(127	)(b)		(25	)		(2	)		—			NM			NM			(135	)		(135	)		—
Ending Balance	$	7,320		$	7,493		$	7,090		$	7,443		$	7,995			(2	)		(8	)	$	7,320		$	7,995			(8	)
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	541		$	768		$	805		$	814		$	796			(30	)		(32	)	$	814		$	965			(16	)
Provision for Lending-Related Commitments (c)		(49	)		(226	)		(37	)		(9	)		18			78			NM			(321	)		(151	)		(113	)
Other		—			(1	)		—			—			—			NM			NM			(1	)		—			NM
Ending Balance	$	492		$	541		$	768		$	805		$	814			(9	)		(40	)	$	492		$	814			(40	)
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset Specific	$	469		$	498		NA			NA			NA				(6	)		NM
Expected Loss		1,639			1,832		NA			NA			NA				(11	)		NM
Stress		990			1,126		NA			NA			NA				(12	)		NM
Total Wholesale		3,098			3,456			3,506			3,860			4,387			(10	)		(29	)
Consumer
Expected Loss		3,169			3,159		NA			NA			NA				—			NM
Stress		1,053			878		NA			NA			NA				20			NM
Total Consumer		4,222			4,037			3,584			3,583			3,608			5			17
Total Allowance for Loan Losses		7,320			7,493			7,090			7,443			7,995			(2	)		(8	)
ALLOWANCE FOR LENDING-RELATED COMMITMENTS		492			541			768			805			814			(9	)		(40	)
Total Allowance for Credit Losses	$	7,812		$	8,034		$	7,858		$	8,248		$	8,809			(3	)		(11	)
Wholesale Allowance for Loan Losses to Total Wholesale Loans (d)		2.43	%		2.76	%		2.74	%		3.01	%		3.40	%		(33	)bp		(97	)bp
Consumer Allowance for Loan Losses to Total Consumer Loans (e)		1.70			1.62			1.72			1.80			1.86			8			(16	)
Allowance for Loan Losses to Total Loans (d) (e)		1.94			2.01			2.11			2.27			2.48			(7	)		(54	)
Allowance for Loan Losses to Total Nonperforming Loans (f)		268			248			219			192			179			2,000			8,900
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,547		$	1,841		$	1,382		$	1,698		$	2,019			(16	)%		(23	)%
Retail Financial Services		1,228			1,764			1,907			1,909			1,937			(30	)		(37	)
Card Services		2,994			2,273			1,677			1,674			1,671			32			79
Commercial Banking		1,322			1,350			1,219			1,223			1,300			(2	)		2
Treasury & Securities Services		9			9			2			2			2			—			350
Asset and Wealth Management		216			241			114			124			170			(10	)		27
Corporate		4			15			789			813			896			(73	)		(100	)
Total	$	7,320		$	7,493		$	7,090		$	7,443		$	7,995			(2	)		(8	)

(a)	Includes $525 million, $560 million and $1,085 million related to accounting policy conformity in the fourth quarter, third quarter and full year 2004.
(b)	Related to the transfer of the allowance for accrued interest and fees on reported and securitized credit card loans.
(c)	Includes $(227) million related to accounting policy conformity in the third quarter 2004.
(d)	Loans held for sale were $7,684 million, $7,281 million, $5,259 million, $5,742 million, and $4,279 million, as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(e)	Loans held for sale were $18,022 million, $12,816 million, $17,782 million, $19,499 million, and $23,390 million, as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(f)	Nonperforming loans held for sale were $15 million, $78 million, $155 million, $263 million, and $319 million, as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003 respectively. These amounts are not included in the allowance coverage ratios.

Page 28

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	(120	)	$	(148	)	$	(283	)	$	(297	)	$	(389	)		19	%		69	%	$	(848	)	$	(275	)		(208	)%
Commercial Banking		17			10			22			(78	)		10			70			70			(29	)		224			NM
Treasury & Securities Services		3			—			3			1			3			NM			—			7			10			(30	)
Asset & Wealth Management		(21	)		1			(4	)		8			37			NM			NM			(16	)		49			NM
Corporate		—			(1	)		(27	)		(83	)		(48	)		NM			NM			(111	)		116			NM
Total Wholesale		(121	)		(138	)		(289	)		(449	)		(387	)		12			69			(997	)		124			NM
Retail Financial Services		78			239			175			210			683			(67	)		(89	)		702			1,822			(61	)
Card Services		724			734			399			401			494			(1	)		47			2,258			1,775			27
Total Consumer		802			973			574			611			1,177			(18	)		(32	)		2,960			3,597			(18	)
Accounting Policy Conformity (a)		525			560			—			—			—			(6	)		NM			1,085			—			NM
Total Provision for Loan Losses		1,206			1,395			285			162			790			(14	)		53			3,048			3,721			(18	)
LENDING-RELATED COMMITMENTS
Investment Bank	$	(53	)	$	(3	)	$	(32	)	$	(6	)	$	(7	)		NM			NM		$	(94	)	$	(147	)		36
Commercial Banking		4			4			(4	)		(8	)		23			—			(83	)		(4	)		(13	)		69
Treasury & Securities Services		—			—			—			—			—			NM			NM			—			1			NM
Asset & Wealth Management		—			—			(1	)		1			—			NM			NM			—			(1	)		NM
Corporate		—			—			—			(1	)		—			NM			NM			(1	)		8			NM
Total Wholesale		(49	)		1			(37	)		(14	)		16			NM			NM			(99	)		(152	)		35
Retail Financial Services		—			—			—			5			2			NM			NM			5			1			400
Card Services		—			—			—			—			—			NM			NM			—			—			NM
Total Consumer		—			—			—			5			2			NM			NM			5			1			400
Accounting Policy Conformity		—			(227	)		—			—			—			NM			NM			(227	)		—			NM
Total Provision for Lending-Related Commitments		(49	)		(226	)		(37	)		(9	)		18			78			NM			(321	)		(151	)		(113	)
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	(173	)	$	(151	)	$	(315	)	$	(303	)	$	(396	)		(15	)		56		$	(942	)	$	(422	)		(123	)
Commercial Banking		21			14			18			(86	)		33			50			(36	)		(33	)		211			NM
Treasury & Securities Services		3			—			3			1			3			NM			—			7			11			(36	)
Asset & Wealth Management		(21	)		1			(5	)		9			37			NM			NM			(16	)		48			NM
Corporate		—			(1	)		(27	)		(84	)		(48	)		NM			NM			(112	)		124			NM
Total Wholesale		(170	)		(137	)		(326	)		(463	)		(371	)		(24	)		54			(1,096	)		(28	)		NM
Retail Financial Services		78			239			175			215			685			(67	)		(89	)		707			1,823			(61	)
Card Services		724			734			399			401			494			(1	)		47			2,258			1,775			27
Total Consumer		802			973			574			616			1,179			(18	)		(32	)		2,965			3,598			(18	)
Accounting Policy Conformity		525			333			—			—			—			58			NM			858			—			NM
Total Provision for Credit Losses		1,157			1,169			248			153			808			(1	)		43			2,727			3,570			(24	)
Securitized Credit Losses		1,011			928			1,358			1,324			1,307			9			(23	)		4,621			5,016			(8	)
Accounting Policy Conformity		(525	)		(333	)		—			—			—			(58	)		NM			(858	)		—			NM
Managed Provision for Credit Losses	$	1,643		$	1,764		$	1,606		$	1,477		$	2,115			(7	)		(22	)	$	6,490		$	8,586			(24	)

(a) Reflects an increase of $721 million for both the fourth quarter and third quarter of 2004 and $1.4 billion for full year 2004, as a result of the decertification of heritage Bank One seller’s interest in credit card securitizations, partially offset by a $196 million, $161 million and $357 million decrease in the allowance to conform methodologies for the fourth quarter of 2004, third quarter of 2004 and full year 2004, respectively.

Page 29

JPMORGAN CHASE & CO.
CAPITAL
(in millions, except ratio and per share data)

							PRO FORMA COMBINED									4QTR 2004						PRO FORMA COMBINED						2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
COMMON SHARES OUTSTANDING
Basic Weighted-Average Shares Outstanding		3,514.7			3,513.5			3,509.4			3,503.7			3,480.3			—	%		1	%		3,510.4			3,494.9			—	%
Diluted Weighted-Average Shares Outstanding		3,602.0			3,592.0			3,588.6			3,590.4			3,560.5			—			1			3,593.0			3,553.3			1
Common Shares Outstanding — at Period End		3,556.2			3,564.1			3,559.0			3,567.0			3,520.4			—			1
Cash Dividends Declared per Share	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34			—			—		$	1.36		$	1.36			—
Book Value per Share		29.61			29.42			29.06			29.73			29.23			1			1
Dividend Payout		74	%		87	%		292	%		41	%		43	%		(1,300	)bp		3,100	bp		75	%		42	%		3,300	bp
SHARE PRICE
High	$	40.45		$	40.25		$	42.57		$	43.84		$	36.99			—	%		9	%	$	43.84		$	38.26			15	%
Low		36.32			35.50			34.62			36.30			34.45			2			5			34.62			20.13			72
Close		39.01			39.73			38.77			41.95			36.73			(2	)		6
STOCK REPURCHASE PROGRAM (b)
Aggregate Repurchases	$	599.8		$	137.9			NM			NM			NM								$	737.7			NM
Common Shares Repurchased		15.8			3.5			NM			NM			NM									19.3			NM
Average Purchase Price	$	38.01		$	39.42			NM			NM			NM								$	38.27			NM
CAPITAL RATIOS
Tier 1 Capital	$	68,621	(a)	$	69,309		$	67,850		$	69,282		$	66,710			(1	)		3
Total Capital		96,807	(a)		96,666			92,916			95,059			93,293			—			4
Risk-Weighted Assets		786,887	(a)		803,464			790,701			789,718			757,905			(2	)		4
Adjusted Average Assets		1,102,519	(a)		1,065,244			1,094,028			1,073,166			1,045,807			3			5
Tier 1 Capital Ratio		8.7	%(a)		8.6	%		8.6	%		8.8	%		8.8	%		10	bp		(10	)bp
Total Capital Ratio		12.3	(a)		12.0			11.8			12.0			12.3			30			—
Tier 1 Leverage Ratio		6.2	(a)		6.5			6.2			6.5			6.4			(30	)		(20	)
INTANGIBLE ASSETS
Goodwill	$	43,203		$	42,947		$	43,016		$	43,018		$	42,798			1	%		1	%
Mortgage Servicing Rights		5,080			5,168			5,797			4,268			4,869			(2	)		4
Purchased Credit Card Relationships		3,878			4,055			4,527			4,608			4,704			(4	)		(18	)
All Other Intangibles		5,726			5,945			5,873			5,899			5,769			(4	)		(1	)
Total Intangibles	$	57,887		$	58,115		$	59,213		$	57,793		$	58,140			—			—

(a) Estimated

(b) Excludes commission costs.

Page 30

JPMORGAN CHASE & CO.
Glossary of Terms

Assets Under Management:Represent assets actively managed by Asset & Wealth Management on behalf of institutional, private banking, private client services and retail clients. Excludes assets managed at American Century Companies, Inc., in which the Firm has a 43% ownership interest.

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

Average Managed Assets:Refers to total assets on the Firm’s balance sheet plus credit card receivables that have been securitized.

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

Contractual Credit Card Charge-off:In accordance with the Federal Financial Institutions Examination Council Policy, credit card loans are charged-off at the earlier of 180 days past due or within 60 days from receiving notification of the filing of a bankruptcy.

Corporate:Includes Global Treasury, Private Equity, Support Units and the net effects remaining at the Corporate level after the implementation of management accounting policies.

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

NA:Data is not available for the period presented due to systems constraints or changes in methodology.

NM:Not meaningful

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

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

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

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

Special Items:Includes merger costs, litigation reserve charge, accounting policy conformity adjustments and other special items.

Unaudited:The financial statements and information included throughout this document are unaudited and have not been subjected to auditing procedures sufficient to permit an independent certified public accountant to express an opinion.

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

Page 31