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

Exhibit 99.5

PRO FORMA COMBINED FINANCIAL SUPPLEMENT

SECOND QUARTER 2005

JPMORGAN CHASE & CO.
TABLE OF CONTENTS

	Page
Consolidated Results
Financial Highlights	3
Statements of Income — Reported Basis	4
Consolidated Balance Sheets	5
Condensed Average Balance Sheets and Annualized Yields	6
Reconciliation from Reported to Operating Basis Summary	7
Statements of Income — Operating Basis	8
Business Detail
Line of Business Financial Highlights — Operating Basis	9
Investment Bank	10
Retail Financial Services	13
Card Services — Managed Basis	17
Commercial Banking	20
Treasury & Securities Services	21
Asset & Wealth Management	23
Corporate	26
Consolidated Credit-Related Information	28
Supplemental Detail
Capital	33
Glossary of Terms	34
Appendix : Reconciliation from Reported to Operating Basis	36

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. (“JPMorgan Chase” or the “Firm”) and Bank One Corporation (“Bank One”) 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 company may have appeared had the two companies actually been merged as of the earliest date indicated and had such business segments existed in the combined company 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 and Bank One, as filed with the Securities and Exchange Commission.

     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 as of July 1, 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 cost savings obtained since July 1, 2004 or anticipated to be obtained in the future from the merger;
(iii)	any merger-related costs incurred since July 1, 2004 or anticipated to be incurred in the future in connection with the merger;
(iv)	the impact of any share repurchases since July 1, 2004;
(v)	any change in the allocation of the purchase price adjustments or of the fair value adjustments since July 1, 2004;
(vi)	any adjustments for changes in management accounting policies or the impact of any conformance of management accounting policies since July 1, 2004.

     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 actual results of operations or the financial position of the Firm since July 1, 2004 nor is it indicative of the results of operations or the financial position of the Firm in future periods.

Page 2

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
SELECTED INCOME STATEMENT DATA
Total Net Revenue	$	12,743		$	13,647		$	12,950		$	12,505		$	13,279			(7	)%		(4	)%	$	26,390		$	27,086			(3	)%
Provision for Credit Losses		587			427			1,157			1,169			248			37			137			1,014			401			153
Noninterest Expense		10,899			9,937			9,386			9,377			12,629			10			(14	)		20,836			21,741			(4	)
Net Income		994			2,264			1,666			1,418			433			(56	)		130			3,258			3,460			(6	)
Per Common Share:
Net Income Per Share — Diluted	$	0.28		$	0.63		$	0.46		$	0.39		$	0.12			(56	)		133		$	0.91		$	0.96			(5	)
Cash Dividends Declared Per Share		0.34			0.34			0.34			0.34			0.34			—			—			0.68			0.68			—
Book Value Per Share		29.95			29.78			29.61			29.42			29.06			1			3			29.95			29.06			3
Closing Share Price		35.32			34.60			39.01			39.73			38.77			2			(9	)		35.32			38.77			(9	)
Common Shares Outstanding:
Weighted-Average Diluted Shares Outstanding		3,548.3			3,569.8			3,602.0			3,592.0			3,588.6			(1	)		(1	)		3,559.0			3,589.0			(1	)
Common Shares Outstanding at Period-end		3,514.0			3,525.3			3,556.2			3,564.1			3,559.0			—			(1	)		3,514.0			3,559.0			(1	)
SELECTED RATIOS:
Return on Common Equity (“ROE”) (a)		4	%		9	%		6	%		5	%		2	%		(500	) bp		200	bp		6	%		7	%		(100	) bp
Return on Equity-Goodwill (“ROE-GW”) (a) (b)		6			15			11			9			3			(900	)		300			11			11			—
Return on Assets (“ROA”) (a) (c)		0.34			0.79			0.57			0.50			0.15			(45	)		19			0.56			0.61			(5	)
Tier 1 Capital Ratio		8.2	(d)		8.6			8.7			8.6			8.6			(40	)		(40	)
Total Capital Ratio		11.3	(d)		11.9			12.2			12.0			11.8			(60	)		(50	)
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,171,283		$	1,178,305		$	1,157,248		$	1,138,469		$	1,153,304			(1	)%		2	%
Wholesale Loans		149,588			137,401			135,067			132,344			133,011			9			12
Consumer Loans		266,437			265,268			267,047			261,357			225,557			—			18
Deposits		534,640			531,379			521,456			496,454			511,386			1			5
Common Stockholders’ Equity		105,246			105,001			105,314			104,844			103,439			—			2
Headcount		168,461			164,381			160,968			162,275			165,608			2			2
LINE OF BUSINESS EARNINGS
Investment Bank	$	606		$	1,325		$	660		$	627		$	1,016			(54	)		(40	)	$	1,931		$	2,367			(18	)%
Retail Financial Services		980			988			775			822			938			(1	)		4			1,968			1,682			17
Card Services		542			522			515			421			409			4			33			1,064			745			43
Commercial Banking		174			243			254			215			234			(28	)		(26	)		417			523			(20	)
Treasury & Securities Services		229			245			145			96			103			(7	)		122			474			196			142
Asset & Wealth Management		283			276			263			197			190			3			49			559			419			33
Corporate (e)		(486	)		(687	)		(296	)		(219	)		(103	)		29			(372	)		(1,173	)		(118	)		NM
Total Operating Earnings		2,328			2,912			2,316			2,159			2,787			(20	)		(16	)		5,240			5,814			(10	)
Reconciling Items (After-Tax):
Merger Costs		(173	)		(90	)		(324	)		(462	)		(60	)		92			188			(263	)		(60	)		338
Litigation Reserve Charge		(1,161	)		(558	)		—			—			(2,294	)		108			(49	)		(1,719	)		(2,294	)		(25	)
Accounting Policy Conformity		—			—			(326	)		(279	)		—			NM			NM			—			—			NM
Net Income	$	994		$	2,264		$	1,666		$	1,418		$	433			(56	)		130		$	3,258		$	3,460			(6	)

(a)	Based on annualized amounts.
(b)	Net income applicable to common stock divided by 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)	Represents Net income divided by Total average assets.
(d)	Estimated.
(e)	Includes Private Equity, Treasury, and corporate staff and other centrally managed expenses.

Page 3

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

													PRO FORMA													PRO FORMA
													COMBINED			2QTR 2005										COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change							Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005				2QTR 2004			2005			2004			2004
REVENUE
Investment Banking Fees	$	961		$	993		$	1,073		$	879		$	939			(3	)%			2	%		1,954			1,683			16	%
Trading Revenue (a)		387			1,859			611			408			968			(79	)			(60	)		2,246			2,745			(18	)
Lending & Deposit Related Fees		851			820			903			943			957			4				(11	)		1,671			1,898			(12	)
Asset Management, Administration and Commissions		2,541			2,498			2,330			2,185			2,302			2				10			5,039			4,662			8
Securities / Private Equity Gains (Losses)		407			(45	)		569			413			403		NM					1			362			990			(63	)
Mortgage Fees and Related Income		336			362			85			233			316			(7	)			6			698			509			37
Credit Card Income		1,763			1,734			1,822			1,782			1,686			2				5			3,497			3,242			8
Other Income		496			201			228			210			434			147				14			697			772			(10	)
Noninterest Revenue		7,742			8,422			7,621			7,053			8,005			(8	)			(3	)		16,164			16,501			(2	)
Interest Income		10,949			10,632			9,862			9,493			8,736			3				25			21,581			17,590			23
Interest Expense		5,948			5,407			4,533			4,041			3,462			10				72			11,355			7,005			62
Net Interest Income		5,001			5,225			5,329			5,452			5,274			(4	)			(5	)		10,226			10,585			(3	)
TOTAL NET REVENUE		12,743			13,647			12,950			12,505			13,279			(7	)			(4	)		26,390			27,086			(3	)
Provision for Credit Losses		587			427			1,157			1,169			248			37				137			1,014			401			153
NONINTEREST EXPENSE
Compensation Expense		4,266			4,702			4,211			4,050			4,227			(9	)			1			8,968			8,794			2
Occupancy Expense		580			525			609			604			596			10				(3	)		1,105			1,190			(7	)
Technology and Communications Expense		896			920			1,051			1,046			960			(3	)			(7	)		1,816			1,949			(7	)
Professional & Outside Services		1,130			1,074			1,191			1,103			1,106			5				2			2,204			2,303			(4	)
Marketing		537			483			428			506			521			11				3			1,020			1,010			1
Other Expense		954			805			981			920			1,037			19				(8	)		1,759			1,922			(8	)
Amortization of Intangibles		385			383			392			396			392			1				(2	)		768			783			(2	)
Total Noninterest Expense before Merger Costs and Litigation Reserve Charge		8,748			8,892			8,863			8,625			8,839			(2	)			(1	)		17,640			17,951			(2	)
Merger Costs		279			145			523			752			90			92				210			424			90			371
Litigation Reserve Charge		1,872			900			—			—			3,700			108				(49	)		2,772			3,700			(25	)
TOTAL NONINTEREST EXPENSE		10,899			9,937			9,386			9,377			12,629			10				(14	)		20,836			21,741			(4	)
Income before Income Tax Expense		1,257			3,283			2,407			1,959			402			(62	)			213			4,540			4,944			(8	)
Income Tax Expense (Benefit)		263			1,019			741			541			(31	)		(74	)		NM				1,282			1,484			(14	)
NET INCOME	$	994		$	2,264		$	1,666		$	1,418		$	433			(56	)			130		$	3,258		$	3,460			(6	)
NET INCOME APPLICABLE TO COMMON STOCK	$	991		$	2,259		$	1,653		$	1,405		$	420			(56	)			136		$	3,250		$	3,434			(5	)
NET INCOME PER COMMON SHARE
Basic Earnings per Share	$	0.28		$	0.64		$	0.47		$	0.40		$	0.12			(56	)			133		$	0.93		$	0.98			(5	)
Diluted Earnings per Share		0.28			0.63			0.46			0.39			0.12			(56	)			133			0.91			0.96			(5	)
Weighted-Average Basic Shares Outstanding		3,493.0			3,517.5			3,514.7			3,513.5			3,509.4			(1	)			—			3,505.2			3,506.6			—
Weighted-Average Diluted Shares Outstanding		3,548.3			3,569.8			3,602.0			3,592.0			3,588.6			(1	)			(1	)		3,559.0			3,589.0			(1	)
FINANCIAL RATIOS
ROE		4	%		9	%		6	%		5	%		2	%	(500		) bp	200			bp		6	%		7	%	(100		) bp
ROE-GW		6			15			11			9			3			(900	)			300			11			11			—
ROA		0.34			0.79			0.57			0.50			0.15			(45	)			19			0.56			0.61			(5	)
Effective Income Tax Rate		21			31			31			28			8			(1,000	)			1,300			28			30			(200	)
Overhead Ratio		86			73			72			75			95			1,300				(900	)		79			80			(100	)
Headcount		168,461			164,381			160,968			162,275			165,608			2	%			2	%		168,461			165,608			2	%

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

Page 4

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

													PRO FORMA			Jun 30, 2005
													COMBINED			Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2005			2005			2004			2004			2004			2005			2004
ASSETS
Cash and Due from Banks	$	35,092		$	37,593		$	35,168		$	30,815		$	38,193			(7	)%		(8	)%
Deposits with Banks		9,080			14,331			21,680			33,082			46,445			(37	)		(80	)
Federal Funds Sold and Securities Purchased under Resale Agreements		130,785			132,751			101,354			96,031			112,236			(1	)		17
Securities Borrowed		58,457			53,174			47,428			50,546			45,725			10			28
Trading Assets:
Debt and Equity Instruments		235,803			230,725			222,832			214,852			190,772			2			24
Derivative Receivables		55,015			60,388			65,982			57,795			55,086			(9	)		—
Securities		58,573			75,251			94,512			92,816			135,427			(22	)		(57	)
Interests in Purchased Receivables		27,887			28,484			31,722			30,479			30,184			(2	)		(8	)
Loans (Net of Allowance for Loan Losses)		409,231			395,734			394,794			386,208			351,478			3			16
Private Equity Investments		6,488			7,333			7,735			8,547			9,149			(12	)		(29	)
Accrued Interest and Accounts Receivable		24,245			21,098			21,409			19,876			21,712			15			12
Premises and Equipment		9,354			9,344			9,145			8,880			8,992			—			4
Goodwill		43,537			43,440			43,203			42,947			43,016			—			1
Other Intangible Assets:
Mortgage Servicing Rights		5,026			5,663			5,080			5,168			5,797			(11	)		(13	)
Purchased Credit Card Relationships		3,528			3,703			3,878			4,055			4,527			(5	)		(22	)
All Other Intangibles		5,319			5,514			5,726			5,945			5,873			(4	)		(9	)
Other Assets		53,863			53,779			45,600			50,427			48,692			—			11
TOTAL ASSETS	$	1,171,283		$	1,178,305		$	1,157,248		$	1,138,469		$	1,153,304			(1	)		2
LIABILITIES
Deposits:
U.S. Offices:
Noninterest-Bearing	$	138,025		$	130,533		$	129,257		$	122,054		$	130,740			6			6
Interest-Bearing		263,952			271,592			261,673			254,611			248,499			(3	)		6
Non-U.S. Offices:
Noninterest-Bearing		7,289			6,669			6,931			7,259			7,867			9			(7	)
Interest-Bearing		125,374			122,585			123,595			112,530			124,280			2			1
Total Deposits		534,640			531,379			521,456			496,454			511,386			1			5
Federal Funds Purchased and Securities Sold under Repurchase Agreements		137,350			137,062			127,787			167,313			159,875			—			(14	)
Commercial Paper		12,842			13,063			12,605			10,307			15,370			(2	)		(16	)
Other Borrowed Funds		12,716			10,124			9,039			9,454			11,920			26			7
Trading Liabilities:
Debt and Equity Instruments		83,011			96,090			87,942			78,767			82,625			(14	)		—
Derivative Payables		51,269			57,626			63,265			52,307			46,620			(11	)		10
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		77,064			72,183			75,722			68,675			75,449			7			2
Beneficial Interests Issued by Consolidated VIEs		43,826			44,827			48,061			45,840			44,873			(2	)		(2	)
Long-Term Debt		101,182			99,329			95,422			91,754			90,693			2			12
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		11,998			11,282			10,296			11,745			10,045			6			19
TOTAL LIABILITIES		1,065,898			1,072,965			1,051,595			1,032,616			1,048,856			(1	)		2
STOCKHOLDERS’ EQUITY
Preferred Stock		139			339			339			1,009			1,009			(59	)		(86	)
Common Stock		3,604			3,598			3,585			3,576			3,560			—			1
Capital Surplus		73,911			73,394			72,801			72,183			71,469			1			3
Retained Earnings		31,032			31,253			30,209			29,779			29,596			(1	)		5
Accumulated Other Comprehensive Income (Loss)		(61	)		(623	)		(208	)		(242	)		(911	)		90			93
Treasury Stock, at Cost		(3,240	)		(2,621	)		(1,073	)		(452	)		(275	)		(24	)		NM
TOTAL STOCKHOLDERS’ EQUITY		105,385			105,340			105,653			105,853			104,448			—			1
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,171,283		$	1,178,305		$	1,157,248		$	1,138,469		$	1,153,304			(1	)		2

Page 5

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	18,646		$	15,232		$	31,799		$	34,166		$	30,480			22	%		(39	)%	$	16,948		$	27,766			(39	)%
Federal Funds Sold and Securities Purchased under Resale Agreements		139,864			121,189			104,038			102,042			93,955			15			49			130,580			91,891			42
Securities Borrowed		60,207			52,449			47,663			47,087			55,778			15			8			56,349			53,803			5
Trading Assets — Debt Instruments		193,660			187,669			186,013			170,663			159,783			3			21			190,681			168,180			13
Securities		67,705			93,438			92,294			94,720			143,860			(28	)		(53	)		80,500			144,845			(44	)
Interests in Purchased Receivables		28,082			29,277			30,491			28,917			28,982			(4	)		(3	)		28,676			31,332			(8	)
Loans		404,318			398,494			400,841			390,753			359,871			1			12			401,422			355,530			13
Total Interest-Earning Assets		912,482			897,748			893,139			868,348			872,709			2			5			905,156			873,347			4
Trading Assets — Equity Instruments		43,935			43,717			35,803			30,275			38,934			—			13			43,827			29,468			49
All Other Noninterest-Earning Assets		219,616			221,353			225,946			218,712			232,608			(1	)		(6	)		220,479			231,885			(5	)
TOTAL ASSETS	$	1,176,033		$	1,162,818		$	1,154,888		$	1,117,335		$	1,144,251			1			3		$	1,169,462		$	1,134,700			3
LIABILITIES
Interest-Bearing Deposits	$	394,455		$	388,355		$	377,368		$	365,104		$	376,087			2			5		$	391,422		$	366,806			7
Federal Funds Purchased and Securities Sold under Repurchase Agreements		158,268			151,335			158,633			163,206			166,544			5			(5	)		154,821			164,414			(6	)
Commercial Paper		12,496			12,665			10,885			12,497			14,625			(1	)		(15	)		12,580			14,200			(11	)
Other Borrowings (a)		98,936			98,259			89,674			84,387			84,757			1			17			98,600			86,712			14
Beneficial Interests Issued by Consolidated VIEs		43,743			45,294			46,366			43,308			44,516			(3	)		(2	)		44,514			46,271			(4	)
Long-Term Debt		111,858			108,004			104,599			101,061			99,570			4			12			109,941			99,098			11
Total Interest-Bearing Liabilities		819,756			803,912			787,525			769,563			786,099			2			4			811,878			777,501			4
Noninterest-Bearing Liabilities		250,792			253,222			261,487			242,394			251,917			(1	)		—			252,000			251,409			—
TOTAL LIABILITIES		1,070,548			1,057,134			1,049,012			1,011,957			1,038,016			1			3			1,063,878			1,028,910			3
Preferred Stock		216			339			1,002			1,009			1,009			(36	)		(79	)		277			1,009			(73	)
Common Stockholders’ Equity		105,269			105,345			104,874			104,369			105,226			—			—			105,307			104,781			1
TOTAL STOCKHOLDERS’ EQUITY		105,485			105,684			105,876			105,378			106,235			—			(1	)		105,584			105,790			—
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$	1,176,033		$	1,162,818		$	1,154,888		$	1,117,335		$	1,144,251			1			3		$	1,169,462		$	1,134,700			3
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		4.08	%		4.11	%		2.60	%		1.53	%		1.72	%	(3		) bp	236		bp		4.09	%		1.73	%	236		bp
Federal Funds Sold and Securities Purchased under Resale Agreements		2.70			2.43			2.03			1.85			1.43			27			127			2.58			1.43			115
Securities Borrowed		2.08			1.71			1.34			1.01			0.67			37			141			1.91			0.73			118
Trading Assets — Debt Instruments		5.06			4.89			4.44			4.64			4.36			17			70			4.98			4.33			65
Securities		3.77			4.93			4.43			4.42			4.73			(116	)		(96	)		4.44			4.56			(12	)
Interests in Purchased Receivables		3.08			2.58			2.11			1.63			1.26			50			182			2.83			1.24			159
Loans		6.24			6.11			5.66			5.67			5.18			13			106			6.18			5.28			90
Total Interest-Earning Assets		4.85			4.83			4.40			4.33			4.00			2			85			4.84			4.04			80
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		2.39			2.09			1.76			1.44			1.29			30			110			2.24			1.33			91
Federal Funds Purchased and Securities Sold under Repurchase Agreements		2.69			2.48			1.96			1.53			1.18			21			151			2.59			1.21			138
Commercial Paper		2.42			2.00			1.65			1.08			0.77			42			165			2.21			0.75			146
Other Borrowings (a)		4.56			5.06			4.13			5.16			4.45			(50	)		11			4.81			4.47			34
Beneficial Interests Issued by Consolidated VIEs		2.92			2.44			1.97			1.58			1.46			48			146			2.68			1.36			132
Long-Term Debt		3.64			3.47			3.31			3.10			2.56			17			108			3.56			2.64			92
Total Interest-Bearing Liabilities		2.91			2.73			2.29			2.09			1.77			18			114			2.82			1.81			101
INTEREST RATE SPREAD		1.94	%		2.10	%		2.11	%		2.24	%		2.23	%		(16	)		(29	)		2.02	%		2.23	%		(21	)
NET YIELD ON INTEREST-EARNING ASSETS		2.24	%		2.39	%		2.38	%		2.48	%		2.42	%		(15	)		(18	)		2.31	%		2.42	%		(11	)
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		2.76	%		2.95	%		2.95	%		3.05	%		3.15	%		(19	)		(39	)		2.85	%		3.13	%		(28	)

(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 Firm’s and the lines 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, noninterest revenue on an operating basis 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 total net revenue, the Provision for credit losses, net charge-offs and loan receivables. JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance and overall financial 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 affect both the loan receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed loan receivables, JPMorgan Chase treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire managed credit card portfolio.

Operating basis also excludes merger costs, significant litigation reserve charges, and accounting policy conformity adjustments, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, are not indicative of trends) and do not provide meaningful comparisons with other periods.

Finally, commencing with the first quarter of 2005, Operating revenue (Noninterest Revenue and Net interest income) for each of the segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits are presented in the operating results on a basis comparable to taxable securities and investments. This allows management to assess the comparability of revenues arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within Income tax expense. The Corporate sector’s and the Firm’s operating revenue and income tax expense for the periods prior to the first quarter of 2005 have been restated to be similarly presented on a tax-equivalent basis. This restatement had no impact on the Corporate sector’s or the Firm’s operating results.

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

JPMorgan Chase prepares its Consolidated financial statements using accounting principles generally accepted in the United States of America (“U.S. GAAP”), which is referred to as “reported basis.” This presentation provides the reader with an understanding of the Firm’s results that can be consistently tracked from year to year and enables comparisons to the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews line-of-business results on an “operating basis,” which is a non-GAAP financial measure. The financial information that is presented on the following pages is presented on an operating basis; for additional information, see the previous page for a more detailed definition of operating basis and the Appendix.

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
TOTAL NET REVENUE
Total Net Revenue — Reported	$	12,743		$	13,647		$	12,950		$	12,505		$	13,279			(7	)%		(4	)%	$	26,390		$	27,086			(3	)%
Impact of:
Credit Card Securitizations		930			917			1,011			928			1,358			1			(32	)		1,847			2,682			(31	)
Accounting Policy Conformity Adjustments		—			—			—			118			—		NM			NM				—			—		NM
Tax Equivalent Adjustments		227			176			188			28			139			29			63			403			264			53
Total Net Revenue — Operating	$	13,900		$	14,740		$	14,149		$	13,579		$	14,776			(6	)		(6	)	$	28,640		$	30,032			(5	)
PROVISION FOR CREDIT LOSSES
Provision for Credit Losses — Reported	$	587		$	427		$	1,157		$	1,169		$	248			37			137		$	1,014		$	401			153
Impact of:
Credit Card Securitizations		930			917			1,011			928			1,358			1			(32	)		1,847			2,682			(31	)
Accounting Policy Conformity Adjustments		—			—			(525	)		(333	)		—		NM			NM				—			—		NM
Provision for Credit Losses — Operating	$	1,517		$	1,344		$	1,643		$	1,764		$	1,606			13			(6	)	$	2,861		$	3,083			(7	)
TOTAL NONINTEREST EXPENSE
Total Noninterest Expense — Reported	$	10,899		$	9,937		$	9,386		$	9,377		$	12,629			10			(14	)	$	20,836		$	21,741			(4	)
Impact of:
Merger Costs		(279	)		(145	)		(523	)		(752	)		(90	)		(92	)		(210	)		(424	)		(90	)		(371	)
Litigation Reserve Charges		(1,872	)		(900	)		—			—			(3,700	)		(108	)		49			(2,772	)		(3,700	)		25
Total Noninterest Expense — Operating	$	8,748		$	8,892		$	8,863		$	8,625		$	8,839			(2	)		(1	)	$	17,640		$	17,951			(2	)
INCOME TAX EXPENSE
Income Tax Expense (Benefits) — Reported	$	263		$	1,019		$	741		$	541		$	(31	)		(74	)		NM		$	1,282		$	1,484			(14	)
Impact of:
Merger Costs		106			55			199			290			30			93			253			161			30			437
Litigation Reserve Charges		711			342			—			—			1,406			108			(49	)		1,053			1,406			(25	)
Accounting Policy Conformity Adjustments		—			—			199			172			—		NM			NM				—			—		NM
Tax Equivalent Adjustments		227			176			188			28			139			29			63			403			264			53
Income Tax Expense — Operating	$	1,307		$	1,592		$	1,327		$	1,031		$	1,544			(18	)		(15	)	$	2,899		$	3,184			(9	)
																				��
NET INCOME
Net Income — Reported	$	994		$	2,264		$	1,666		$	1,418		$	433			(56	)		130		$	3,258		$	3,460			(6	)
Impact of:
Merger Costs		173			90			324			462			60			92			188			263			60			338
Litigation Reserve Charges		1,161			558			—			—			2,294			108			(49	)		1,719			2,294			(25	)
Accounting Policy Conformity Adjustments		—			—			326			279			—		NM			NM				—			—		NM
Net Income — Operating	$	2,328		$	2,912		$	2,316		$	2,159		$	2,787			(20	)		(16	)	$	5,240		$	5,814			(10	)

Page 7

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
REVENUE
Investment Banking Fees	$	961		$	993		$	1,073		$	879		$	939			(3	)%		2	%	$	1,954		$	1,683			16	%
Trading-Related Revenue (Including Trading NII)		585			2,187			1,122			832			1,407			(73	)		(58	)		2,772			3,760			(26	)
Lending & Deposit Related Fees		851			820			903			943			957			4			(11	)		1,671			1,898			(12	)
Asset Management, Administration and Commissions		2,541			2,498			2,330			2,185			2,302			2			10			5,039			4,662			8
Securities / Private Equity Gains (Losses)		407			(45	)		569			413			403		NM				1			362			990			(63	)
Mortgage Fees and Related Income		336			362			85			233			316			(7	)		6			698			509			37
Credit Card Income		1,035			919			1,036			934			975			13			6			1,954			1,782			10
Other Income		639			316			407			389			559			102			14			955			1,018			(6	)
Noninterest Revenue		7,355			8,050			7,525			6,808			7,858			(9	)		(6	)		15,405			16,302			(6	)
Interest Income		13,054			12,592			11,233			11,000			10,530			4			24			25,646			21,039			22
Interest Expense		6,509			5,902			4,609			4,229			3,612			10			80			12,411			7,309			70
Net Interest Income		6,545			6,690			6,624			6,771			6,918			(2	)		(5	)		13,235			13,730			(4	)
TOTAL NET REVENUE		13,900			14,740			14,149			13,579			14,776			(6	)		(6	)		28,640			30,032			(5	)
Managed Provision for Credit Losses		1,517			1,344			1,643			1,764			1,606			13			(6	)		2,861			3,083			(7	)
NONINTEREST EXPENSE
Compensation Expense		4,266			4,702			4,211			4,050			4,227			(9	)		1			8,968			8,794			2
Occupancy Expense		580			525			609			604			596			10			(3	)		1,105			1,190			(7	)
Technology and Communications Expense		896			920			1,051			1,046			960			(3	)		(7	)		1,816			1,949			(7	)
Professional & Outside Services		1,130			1,074			1,191			1,103			1,106			5			2			2,204			2,303			(4	)
Marketing		537			483			428			506			521			11			3			1,020			1,010			1
Other Expense		954			805			981			920			1,037			19			(8	)		1,759			1,922			(8	)
Amortization of Intangibles		385			383			392			396			392			1			(2	)		768			783			(2	)
TOTAL NONINTEREST EXPENSE		8,748			8,892			8,863			8,625			8,839			(2	)		(1	)		17,640			17,951			(2	)
Operating Earnings before Income Tax Expense		3,635			4,504			3,643			3,190			4,331			(19	)		(16	)		8,139			8,998			(10	)
Income Tax Expense		1,307			1,592			1,327			1,031			1,544			(18	)		(15	)		2,899			3,184			(9	)
OPERATING EARNINGS	$	2,328		$	2,912		$	2,316		$	2,159		$	2,787			(20	)		(16	)	$	5,240		$	5,814			(10	)
Operating Earnings Per Common Share
Diluted EPS	$	0.66		$	0.81		$	0.64		$	0.60		$	0.77			(19	)		(14	)	$	1.47		$	1.61			(9	)
Operating Financial Ratios
ROE		9	%		11	%		9	%		8	%		11	%	(200		) bp	(200		) bp		10	%		11	%	(100		) bp
ROE-GW		15			19			15			14			18			(400	)		(300	)		17			19			(200	)
ROA		0.75			0.96			0.75			0.72			0.92			(21	)		(17	)		0.85			0.97			(12	)
Effective Income Tax Rate		36			35			36			32			36			100			—			36			35			100
Overhead Ratio		63			60			63			64			60			300			300			62			60			200
RECONCILIATION OF OPERATING EARNINGS PER SHARE TO NET INCOME PER SHARE — DILUTED
Operating Earnings	$	0.66		$	0.81		$	0.64		$	0.60		$	0.77			(19	)%		(14	)%	$	1.47		$	1.61			(9	)%
Reconciling Items (Net of Taxes):
Merger Costs		(0.05	)		(0.03	)		(0.09	)		(0.13	)		(0.02	)		(67	)		(150	)		(0.08	)		(0.02	)		(300	)
Litigation Reserve Charge		(0.33	)		(0.15	)		—			—			(0.63	)		(120	)		48			(0.48	)		(0.63	)		24
Accounting Policy Conformity		—			—			(0.09	)		(0.08	)		—		NM			NM				—			—		NM
Net Income	$	0.28		$	0.63		$	0.46		$	0.39		$	0.12			(56	)		133		$	0.91		$	0.96			(5	)

Page 8

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
REVENUE
Investment Bank	$	2,750		$	4,180		$	3,201		$	2,701		$	3,397			(34	) %		(19	) %	$	6,930		$	7,604			(9	) %
Retail Financial Services		3,799			3,847			3,545			3,800			3,947			(1	)		(4	)		7,646			7,731			(1	)
Card Services		3,886			3,779			3,830			3,771			3,776			3			3			7,665			7,400			4
Commercial Banking		900			850			885			833			866			6			4			1,750			1,699			3
Treasury & Securities Services		1,588			1,482			1,413			1,339			1,368			7			16			3,070			2,648			16
Asset & Wealth Management		1,343			1,361			1,310			1,193			1,185			(1	)		13			2,704			2,398			13
Corporate		(366	)		(759	)		(35	)		(58	)		237			52		NM				(1,125	)		552		NM
TOTAL NET REVENUE	$	13,900		$	14,740		$	14,149		$	13,579		$	14,776			(6	)		(6	)	$	28,640		$	30,032			(5	)
OPERATING EARNINGS
Investment Bank	$	606		$	1,325		$	660		$	627		$	1,016			(54	)		(40	)	$	1,931		$	2,367			(18	)
Retail Financial Services		980			988			775			822			938			(1	)		4			1,968			1,682			17
Card Services		542			522			515			421			409			4			33			1,064			745			43
Commercial Banking		174			243			254			215			234			(28	)		(26	)		417			523			(20	)
Treasury & Securities Services		229			245			145			96			103			(7	)		122			474			196			142
Asset & Wealth Management		283			276			263			197			190			3			49			559			419			33
Corporate		(486	)		(687	)		(296	)		(219	)		(103	)		29			(372	)		(1,173	)		(118	)	NM
TOTAL OPERATING EARNINGS	$	2,328		$	2,912		$	2,316		$	2,159		$	2,787			(20	)		(16	)	$	5,240		$	5,814			(10	)
AVERAGE EQUITY (a)
Investment Bank	$	20,000		$	20,000		$	20,000		$	20,000		$	20,000			—			—		$	20,000		$	20,000			—
Retail Financial Services		13,250			13,100			13,050			13,050			13,050			1			2			13,175			13,050			1
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			3,400			—			—			3,400			3,400			—
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			2,400			—			—			2,400			2,400			—
Corporate (b)		52,519			52,745			52,324			51,819			52,676			—			—			52,632			52,231			1
TOTAL AVERAGE EQUITY	$	105,269		$	105,345		$	104,874		$	104,369		$	105,226			—			—		$	105,307		$	104,781			1
RETURN ON EQUITY (a)
Investment Bank		12	%		27	%		13	%		12	%		20	%		(1,500	) bp	(800		) bp		19	%		24	%	(500		) bp
Retail Financial Services		30			31			24			25			29			(100	)		100			30			26			400
Card Services		18			18			17			14			14			—			400			18			13			500
Commercial Banking		21			29			30			25			28			(800	)		(700	)		25			31			(600	)
Treasury & Securities Services		48			52			30			20			22			(400	)		2,600			50			21			2,900
Asset & Wealth Management		47			47			44			33			32			—			1,500			47			35			1,200
JPMC ROE		9			11			9			8			11			(200	)		(200	)		10			11			(100	)
JPMC ROE-GW		15			19			15			14			18			(400	)		(300	)		17			19			(200	)

(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.

(b)

Effective with the third quarter of 2004, all goodwill is allocated to the Corporate line of business. Prior to the third quarter of 2004, goodwill was allocated to the various lines of business.

Page 9

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
INCOME STATEMENT
REVENUE
Investment Banking Fees:
Advisory	$	359		$	263		$	250		$	273		$	269			37	%		33	%	$	622		$	416			50	%
Equity Underwriting		104			239			213			170			223			(56	)		(53	)		343			402			(15	)
Debt Underwriting		502			483			617			468			445			4			13			985			862			14
Total Investment Banking Fees		965			985			1,080			911			937			(2	)		3			1,950			1,680			16
Trading-Related Revenue:
Fixed Income and Other		940			1,915			1,173			657			1,361			(51	)		(31	)		2,855			3,301			(14	)
Equities		(280	)		225			(42	)		220			(88	)		NM			(218	)		(55	)		245		NM
Credit Portfolio		(46	)		59			(44	)		(35	)		55		NM			NM				13			109			(88	)
Total Trading-Related Revenue (a)		614			2,199			1,087			842			1,328			(72	)		(54	)		2,813			3,655			(23	)
Lending & Deposit Related Fees		146			157			176			155			172			(7	)		(15	)		303			327			(7	)
Asset Management, Administration and Commissions		413			408			346			313			357			1			16			821			762			8
Other Income		270			127			178			91			128			113			111			397			233			70
Noninterest Revenue		2,408			3,876			2,867			2,312			2,922			(38	)		(18	)		6,284			6,657			(6	)
Net Interest Income (a)		342			304			334			389			475			13			(28	)		646			947			(32	)
TOTAL NET REVENUE (b)		2,750			4,180			3,201			2,701			3,397			(34	)		(19	)		6,930			7,604			(9	)
Provision for Credit Losses		(343	)		(366	)		(173	)		(151	)		(315	)		6			(9	)		(709	)		(618	)		(15	)
Credit Reimbursement from TSS (c)		38			38			43			43			43			—			(12	)		76			86			(12	)
NONINTEREST EXPENSE
Compensation Expense		1,192			1,616			1,389			992			1,240			(26	)		(4	)		2,808			2,732			3
Noncompensation Expense		986			909			1,001			932			935			8			5			1,895			1,871			1
TOTAL NONINTEREST EXPENSE		2,178			2,525			2,390			1,924			2,175			(14	)		—			4,703			4,603			2
Operating Earnings Before Income Tax Expense		953			2,059			1,027			971			1,580			(54	)		(40	)		3,012			3,705			(19	)
Income Tax Expense (Benefit)		347			734			367			344			564			(53	)		(38	)		1,081			1,338			(19	)
OPERATING EARNINGS	$	606		$	1,325		$	660		$	627		$	1,016			(54	)		(40	)	$	1,931		$	2,367			(18	)
FINANCIAL RATIOS
ROE		12	%		27	%		13	%		12	%		20	%	(1,500		) bp	(800		) bp		19	%		24	%	(500		) bp
ROA		0.41			0.95			0.49			0.50			0.81			(54	)		(40	)		0.67			0.95			(28	)
Overhead Ratio		79			60			75			71			64			1,900			1,500			68			61			700
Compensation Expense as a% of Total Net Revenue		43			39			43			37			37			400			600			41			36			500
REVENUE BY BUSINESS (d)
Investment Banking Fees	$	965		$	985		$	1,080		$	911		$	937			(2	) %		3	%	$	1,950		$	1,680			16	%
Fixed Income Markets		1,418			2,289			1,530			1,115			1,815			(38	)		(22	)		3,707			4,145			(11	)
Equities Markets		72			556			243			455			194			(87	)		(63	)		628			868			(28	)
Credit Portfolio		295			350			348			220			451			(16	)		(35	)		645			911			(29	)
Total Net Revenue	$	2,750		$	4,180		$	3,201		$	2,701		$	3,397			(34	)		(19	)	$	6,930		$	7,604			(9	)
REVENUE BY REGION
Americas	$	1,833		$	2,224		$	1,829		$	1,591		$	1,936			(18	)		(5	)	$	4,057		$	4,312			(6	)
Europe/Middle East/Africa		554			1,535			1,013			741			1,042			(64	)		(47	)		2,089			2,349			(11	)
Asia/Pacific		363			421			359			369			419			(14	)		(13	)		784			943			(17	)
Total Net Revenue	$	2,750		$	4,180		$	3,201		$	2,701		$	3,397			(34	)		(19	)	$	6,930		$	7,604			(9	)

(a)	Trading revenue, on a reported basis, excludes the impact of net interest income related to the IB’s trading activities; this income is recorded in Net interest income. However, in this presentation, to assess the profitability of the IB’s trading business, the Firm combines these revenues for segment reporting. The amount reclassified from Net interest income to Trading revenue was $207 million, $324 million, $511 million, $430 million and $427 million, during the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004, and June 30, 2004 and $531 million and $1.0 billion year-to-date June 30, 2005 and 2004 respectively.
(b)	Total net revenue includes tax-equivalent adjustments, primarily due to tax-exempt income from municipal bonds and income tax credits related to affordable housing investments, of $206 million, $155 million, $167 million, $9 million and $115 million for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004, and June 30, 2004, respectively. The year-to-date tax equivalent adjustments were $361 million and $215 million for 2005 and 2004, respectively.
(c)	TSS is charged a credit reimbursement related to certain exposures managed within the IB credit portfolio on behalf of clients shared with TSS.
(d)	See account details of Fixed Income Markets, Equities Markets and Credit Portfolio in the Composition of Revenues tables on page 12.

Page 10

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	592,383		$	566,778		$	533,898		$	496,347		$	503,396			5	%		18	%	$	579,651		$	499,963			16	%
Trading Assets — Debt and Equity Instruments		232,980			225,367			219,466			197,150			192,940			3			21			229,194			189,809			21
Trading Assets — Derivative Receivables		56,436			63,574			65,417			60,465			56,151			(11	)		1			59,985			58,907			2
Loans:
Credit Portfolio		30,435			29,236			31,289			31,129			33,876			4			(10	)		29,838			35,132			(15	)
Other Loans (a)		20,967			18,232			16,385			14,650			15,092			15			39			19,608			14,011			40
Total Loans (b)		51,402			47,468			47,674			45,779			48,968			8			5			49,446			49,143			1
Adjusted Assets (c)		453,895			445,840			432,085			401,010			398,643			2			14			449,845			398,058			13
Equity (d)		20,000			20,000			20,000			20,000			20,000			—			—			20,000			20,000			—
Headcount		19,269			17,993			17,478			17,420			17,795			7			8			19,269			17,795			8
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(47	)	$	(5	)	$	14		$	(16	)	$	3		NM			NM			$	(52	)	$	27		NM
Nonperforming Assets
— Nonperforming Loans (e)		711			814			954			1,075			1,345			(13	)		(47	)		711			1,345			(47	)
— Other Nonperforming Assets		235			242			242			246			339			(3	)		(31	)		235			339			(31	)
Allowance for Loan Losses		971			1,191			1,547			1,841			1,382			(18	)		(30	)		971			1,382			(30	)
Allowance for Lending Related Commitments		225			296			305			358			447			(24	)		(50	)		225			447			(50	)
Net Charge-off (Recovery) Rate (b)		(0.56	) %		(0.05	) %		0.14	%		(0.17	) %		0.03	%	(51		) bp	(59		) bp		(0.29	) %		0.12	%	(41		) bp
Allowance for Loan Losses to Average Loans (b)		2.90			3.03			3.87			4.78			3.16			(13	)		(26	)		2.67			3.17			(50	)
Allowance for Loan Losses to Nonperforming Loans (e)		137			147			163			172			103			(1,000	)		3,400			137			103			3,400
Nonperforming Loans to Average Loans		1.38			1.71			2.00			2.35			2.75			(33	)		(137	)		1.44			2.74			(130	)
MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR (f) (g)
Trading Activities:
Fixed Income (f)	$	82		$	57		$	68		$	80		NA				44	%	NM			$	70		NA			NM
Foreign Exchange		21			23			18			13		NA				(9	)	NM				22		NA			NM
Equities		45			18			20			25		NA				150		NM				32		NA			NM
Commodities and Other		15			10			9			10		NA				50		NM				12		NA			NM
Diversification		(61	)		(43	)		(42	)		(43	)	NA				(42	)	NM				(52	)	NA			NM
Total Trading VAR		102			65			73			85		NA				57		NM				84		NA			NM
Credit Portfolio VAR (g)		13			13			13			13		NA				—		NM				13		NA			NM
Diversification		(13	)		(8	)		(7	)		(9	)	NA				(63	)	NM				(11	)	NA				NM
Total Trading and Credit Portfolio VAR	$	102		$	70		$	79		$	89		NA				46		NM			$	86		NA			NM
	YTD			Full Year
	2005			2004
MARKET SHARES AND RANKINGS (h)
Global Debt, Equity and Equity-Related		6% / #5			7% / #3
Global Syndicated Loans		17% / #1			19% / #1
Global Long-Term Debt		6% / #4			7% / #2
Global Equity and Equity-Related		9% / #4			6% / #6
Global Announced M&A		22% / #3			25% / #2
U.S. Debt, Equity and Equity-Related		7% / #4			8% / #5
U.S. Syndicated Loans		31% /#1			32% / #1
U.S. Long-Term Debt		10% / #2			12% / #2
U.S. Equity and Equity-Related		8% / #5			8% / #6
U.S. Announced M&A		18% / #6			32% / #1

(a)	Other Loans consists of loans not directly managed by the Credit Portfolio Group and include (i) warehouse loans held as part of the IB’s mortgage-backed, asset-backed and other securitization businesses; (ii) loans held for principal investment purposes and (iii) certain other extension of loans that are directly managed outside of the Credit Portfolio Group.
(b)	Loans include loans held-for-sale of $17,871 million, $8,154 million, $7,684 million, $7,281 million and $5,259 million for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. The year-to-date average loans held for sale were $13,039 million and $5,501 million for 2005 and 2004, respectively. These amounts are not included in the allowance coverage ratios and net charge-off rates.
(c)	Adjusted assets, a non-GAAP financial measure, equals total assets minus (i) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased; (ii) assets of variable interest entities (VIEs) consolidated under FIN 46R; (iii) cash and securities segregated and on deposit for regulatory and other purposes; and (iv) 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.
(d)	Equity includes $15.1 billion of economic risk capital assigned to the IB for the quarter ended June 30, 2005.
(e)	Nonperforming loans include loans held-for-sale of $2 million, $2 million, $2 million, $4 million and $2 million at June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004, and June 30, 2004, respectively. These amounts are not included in the allowance coverage ratios.
(f)	Includes all mark-to-market trading activities, plus available-for-sale securities held for proprietary purposes.
(g)	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.
(h)	Source: 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 for the year ended December 31, 2004 are presented on a combined basis, as if the merger of JPMorgan Chase and Bank One had been in effect during the period.

Page 11

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

	SECOND QUARTER 2005
COMPOSITION OF REVENUES								Asset Management,
	Investment		Trading-Related			Lending & Deposit		Administration and
	Banking Fees		Revenue			Related Fees		Commissions		Other Income			Net Interest Income		Total Net Revenue
Investment Banking Fees	$	965	$	—		$	—	$	—	$	—		$	—	$	965
Fixed Income Markets		—		940			61		50		192			175		1,418
Equities Markets		—		(280	)		—		350		(17	)		19		72
Credit Portfolio		—		(46	)		85		13		95			148		295
Total Net Revenue	$	965	$	614		$	146	$	413	$	270		$	342	$	2,750

	PRO FORMA COMBINED
	SECOND QUARTER 2004
								Asset Management,
	Investment		Trading-Related			Lending & Deposit		Administration and
	Banking Fees		Revenue			Related Fees		Commissions		Other Income			Net Interest Income		Total Net Revenue
Investment Banking Fees	$	937	$	—		$	—	$	—	$	—		$	—	$	937
Fixed Income Markets		—		1,362			65		68		93			227		1,815
Equities Markets		—		(88	)		—		279		(24	)		27		194
Credit Portfolio		—		54			107		10		59			221		451
Total Net Revenue	$	937	$	1,328		$	172	$	357	$	128		$	475	$	3,397

	YEAR-TO-DATE 2005
								Asset Management,
	Investment		Trading-Related			Lending & Deposit		Administration and
	Banking Fees		Revenue			Related Fees		Commissions		Other Income			Net Interest Income		Total Net Revenue
Investment Banking Fees	$	1,950	$	—		$	—	$	—	$	—		$	—	$	1,950
Fixed Income Markets		—		2,855			126		114		296			316		3,707
Equities Markets		—		(55	)		—		683		(37	)		37		628
Credit Portfolio		—		13			177		24		138			293		645
Total Net Revenue	$	1,950	$	2,813		$	303	$	821	$	397		$	646	$	6,930

	PRO FORMA COMBINED
	YEAR-TO-DATE 2004
							Asset Management,
	Investment		Trading-Related		Lending & Deposit		Administration and
	Banking Fees		Revenue		Related Fees		Commissions		Other Income			Net Interest Income		Total Net Revenue
Investment Banking Fees	$	1,680	$	—	$	—	$	—	$	—		$	—	$	1,680
Fixed Income Markets		—		3,301		129		141		176			398		4,145
Equities Markets		—		245		—		604		(35	)		54		868
Credit Portfolio		—		109		198		17		92			495		911
Total Net Revenue	$	1,680	$	3,655	$	327	$	762	$	233		$	947	$	7,604

Page 12

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	358		$	340		$	373		$	395		$	375			5	%		(5	) %	$	698		$	733			(5	) %
Asset Management, Administration and Commissions (a)		369			394			368			375			370			(6	)		—			763			777			(2	)
Securities / Private Equity Gains (Losses)		—			10			(89	)		6			—		NM			NM				10			—		NM
Mortgage Fees and Related Income (a)		341			368			117			211			366			(7	)		(7	)		709			577			23
Credit Card Income		105			94			97			89			89			12			18			199			164			21
Other Income		68			(12	)		27			18			65		NM				5			56			69			(19	)
Noninterest Revenue		1,241			1,194			893			1,094			1,265			4			(2	)		2,435			2,320			5
Net Interest Income		2,558			2,653			2,652			2,706			2,608			(4	)		(2	)		5,211			5,233			—
TOTAL NET REVENUE		3,799			3,847			3,545			3,800			3,873			(1	)		(2	)		7,646			7,553			1
Provision for Credit Losses		94			94			78			239			175			—			(46	)		188			372			(49	)
NONINTEREST EXPENSE
Compensation Expense		820			822			807			855			840			—			(2	)		1,642			1,737			(5	)
Noncompensation Expense		1,181			1,215			1,276			1,250			1,297			(3	)		(9	)		2,396			2,646			(9	)
Amortization of Intangibles		125			125			132			133			133			—			(6	)		250			266			(6	)
TOTAL NONINTEREST EXPENSE		2,126			2,162			2,215			2,238			2,270			(2	)		(6	)		4,288			4,649			(8	)
Operating Earnings before Income Tax Expense and Non-Core Portfolio Actions		1,579			1,591			1,252			1,323			1,428			(1	)		11			3,170			2,532			25
Income Tax Expense (Benefit)		599			603			477			501			536			(1	)		12			1,202			949			27
Operating Earnings before Non-Core Portfolio Actions		980			988			775			822			892			(1	)		10			1,968			1,583			24
Non-Core Portfolio Actions: (b)
Impacts to:
Other Income		—			—			—			—			74		NM			NM				—			178		NM
Provision for Credit Losses		—			—			—			—			—		NM			NM				—			18		NM
Total Non-Core Portfolio Actions		—			—			—			—			74		NM			NM				—			160		NM
Income Tax Expense (Benefit)		—			—			—			—			28		NM			NM				—			61		NM
Operating Earnings from Non-Core Portfolio Actions		—			—			—			—			46		NM			NM				—			99		NM
OPERATING EARNINGS	$	980		$	988		$	775		$	822		$	938			(1	)		4		$	1,968		$	1,682			17
FINANCIAL RATIOS
ROE		30	%		31	%		24	%		25	%		29	%	(100		) bp	100		bp		30	%		26	%	400		bp
ROA		1.74			1.78			1.35			1.44			1.67			(4	)		7			1.76			1.51			25
Overhead Ratio		56			56			62			59			58			—			(200	)		56			60			(400	)
SELECTED BALANCE SHEETS (Ending)
Total Assets	$	223,391		$	224,562		$	226,560		$	227,952		$	225,646			(1	) %		(1	) %	$	223,391		$	225,646			(1	) %
Loans (c)		197,927			199,215			202,473			201,116			196,576			(1	)		1			197,927			196,576			1
Core Deposits (d)		159,702			162,241			156,885			154,589			156,009			(2	)		2			159,702			156,009			2
Total Deposits		185,558			187,225			182,372			180,307			182,682			(1	)		2			185,558			182,682			2
SELECTED BALANCE SHEETS (Average)
Total Assets	$	225,574		$	225,120		$	228,647		$	227,716		$	226,193			—			—		$	225,348		$	223,309			1
Loans (e)		197,707			198,494			202,419			198,244			195,912			—			1			198,098			193,131			3
Core Deposits (d)		161,044			159,682			159,015			158,800			160,870			1			—			160,367			156,913			2
Total Deposits		186,523			184,336			183,105			183,501			186,591			1			—			185,435			183,128			1
Equity		13,250			13,100			13,050			13,050			13,050			1			2			13,175			13,050			1
Headcount		59,631			59,322			59,632			60,691			62,704			1			(5	)		59,631			62,704			(5	)
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	114		$	152		$	606		$	219		$	176			(25	)		(35	)	$	266		$	412			(35	)
Nonperforming Loans (f)		1,132			1,150			1,161			1,308			1,282			(2	)		(12	)		1,132			1,282			(12	)
Nonperforming Assets		1,319			1,351			1,385			1,557			1,551			(2	)		(15	)		1,319			1,551			(15	)
Allowance for Loan Losses		1,135			1,168			1,228			1,764			1,907			(3	)		(40	)		1,135			1,907			(40	)
Net Charge-off Rate (e)		0.25	%		0.34	%		1.28	%		0.47	%		0.40	%	(9		) bp	(15		) bp		0.29	%		0.48	%	(19		) bp
Allowance for Loan Losses to Ending Loans (c)		0.61			0.64			0.67			0.94			1.07			(3	)		(46	)		0.61			1.07			(46	)
Allowance for Loan Losses to Nonperforming Loans (f)		103			104			107			143			168			(100	)		(6,500	)		103			168			(6,500	)
Nonperforming Loans to Total Loans		0.57			0.58			0.57			0.65			0.65			(1	)		(8	)		0.57			0.65			(8	)

(a)	Reflects the transfer of certain insurance revenues from Mortgage Fees and Related Income to Asset Management, Administration and Commissions.
(b)	Includes gains on loan sales, valuation adjustments and loan loss reserve increases on the Bank One brokered home equity portfolio.
(c)	End-of-period loans include loans held-for-sale of $13,112 million, $16,532 million, $18,022 million, $12,816 million and $17,782 million at June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004, and June 30, 2004, respectively. These amounts are not included in the allowance coverage ratios.
(d)	Includes demand and savings deposits.
(e)	Average loans include loans held-for-sale of $14,620 million, $15,861 million, $13,534 million, $14,479 million and $19,818 million for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004, and June 30, 2004, respectively. The year-to-date average loans held-for-sale were $15,237 million and $20,492 million for 2005 and 2004, respectively. These amounts are not included in the net charge-off rate.
(f)	Nonperforming loans include loans held-for-sale of $26 million, $31 million, $13 million, $74 million and $144 million at June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004, and June 30, 2004, respectively. These amounts are not included in the allowance coverage ratios.

Page 13

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
RETAIL BUSINESSES
HOME FINANCE
PRIME PRODUCTION AND SERVICING
Production	$	135		$	228		$	196		$	168		$	224			(41	) %		(40	) %	$	363		$	431			(16	) %
Servicing:
Mortgage Servicing Revenue, Net of Amortization		142			146			169			134			184			(3	)		(23	)		288			329			(12	)
MSR Risk Management Results		166			106			(187	)		153			94			57			77			272			148			84
Total Net Revenue		443			480			178			455			502			(8	)		(12	)		923			908			2
Noninterest Expense		229			229			266			296			276			—			(17	)		458			579			(21	)
Operating Earnings		136			158			(56	)		103			143			(14	)		(5	)		294			206			43
CONSUMER REAL ESTATE LENDING
Total Net Revenue	$	707		$	713		$	725		$	704		$	774			(1	)		(9	)	$	1,420		$	1,477			(4	)
Provision for Credit Losses		38			30			(20	)		65			78			27			(51	)		68			123			(45	)
Noninterest Expense		234			238			283			264			265			(2	)		(12	)		472			567			(17	)
Operating Earnings		277			284			295			237			275			(2	)		1			561			506			11
TOTAL HOME FINANCE
Total Net Revenue	$	1,150		$	1,193		$	903		$	1,159		$	1,276			(4	)		(10	)		2,343			2,385			(2	)
Provision for Credit Losses		38			30			(20	)		65			78			27			(51	)		68			123			(45	)
Noninterest Expense		463			467			549			560			541			(1	)		(14	)		930			1,146			(19	)
Operating Earnings		413			442			239			340			418			(7	)		(1	)		855			712			20
Origination Volume by Channel (in billions)
Retail	$	22.8		$	18.3		$	18.5		$	19.7		$	27.2			25			(16	)	$	41.1		$	47.2			(13	)
Wholesale		13.2			10.7			11.7			11.6			15.7			23			(16	)		23.9			25.2			(5	)
Correspondent		3.6			2.3			4.2			5.4			7.9			57			(54	)		5.9			13.2			(55	)
Correspondent Negotiated Transactions		7.1			7.2			10.0			11.3			12.4			(1	)		(43	)		14.3			20.1			(29	)
Total		46.7			38.5			44.4			48.0			63.2			21			(26	)		85.2			105.7			(19	)
Origination Volume by Business (in billions)
Mortgage	$	30.9		$	26.6		$	32.4		$	34.1		$	47.9			16			(35	)	$	57.5		$	79.4			(28	)
Home Equity		15.8			11.9			12.0			13.9			15.3			33			3			27.7			26.3			5
Total		46.7			38.5			44.4			48.0			63.2			21			(26	)		85.2			105.7			(19	)
Business Metrics (in billions)
Loans Serviced — Mortgage (Ending) (a)	$	501.7		$	495.8		$	492.5		$	486.8		$	476.0			1			5		$	501.7		$	476			5
MSR Net Carrying Value (Ending)		5.0			5.7			5.1			5.2			5.8			(12	)		(14	)		5.0			5.8			(14	)
End of Period Loans Owned
Mortgage Loans Held-for-Sale		11.2			9.6			14.2			9.5			14.0			17			(20	)		11.2			14.0			(20	)
Mortgage Loans Retained		47.4			46.0			42.6			46.5			42.5			3			12			47.4			42.5			12
Home Equity and Other Loans		72.3			68.8			67.9			67.3			63.6			5			14			72.3			63.6			14
Total End of Period Loans Owned		130.9			124.4			124.7			123.3			120.1			5			9			130.9			120.1			9
Average Loans Owned
Mortgage Loans Held-for-Sale		10.5			11.4			10.1			10.9			15.0			(8	)		(30	)		10.9			14.2			(23	)
Mortgage Loans Retained		47.0			44.3			44.6			44.0			39.9			6			18			45.7			38.7			18
Home Equity and Other Loans		69.1			66.5			70.1			66.2			62.4			4			11			67.8			60.8			12
Total Average Loans Owned		126.6			122.2			124.8			121.1			117.3			4			8			124.4			113.7			9
Overhead Ratio		40	%		39	%		61	%		48	%		42	%	100		bp	(200		) bp		40	%		48	%	(800		) bp
Credit Quality Statistics
30+ Day Delinquency Rate (b)		1.17	%		1.15	%		1.27	%		1.50	%		1.39	%		2			(22	)		1.17	%		1.39	%		(22	)
Net Charge-offs
Mortgage	$	8		$	6		$	5		$	6		$	5			33	%		60	%	$	14		$	9			56	%
Home Equity and Other Loans		30			35			449			57			62			(14	)		(52	)		65			163			(60	)
Total Net Charge-offs		38			41			454			63			67			(7	)		(43	)		79			172			(54	)
Net Charge-off Rate
Mortgage		0.07	%		0.05	%		0.04	%		0.05	%		0.05	%	2		bp	2		bp		0.06	%		0.05	%	1		bp
Home Equity and Other Loans		0.17			0.21			2.55			0.34			0.40			(4	)		(23	)		0.19			0.54			(35	)
Total Net Charge-off Rate (c)		0.13			0.15			1.57			0.23			0.27			(2	)		(14	)		0.14			0.35			(21	)
Nonperforming Assets	$	799		$	841		$	844		$	997		$	987			(5	) %		(19	) %	$	799		$	987			(19	) %

(a)	Includes prime first mortgage loans and subprime loans.
(b)	Excludes delinquencies related to loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by government agencies of $0.7 billion, $0.7 billion, $0.9 billion, $0.9 billion, $1.1 billion for June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004 respectively. These amounts are excluded as reimbursement is proceeding normally.
(c)	Excludes mortgage loans held for sale.

Page 14

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
RETAIL BUSINESSES, CONTINUED
CONSUMER & SMALL BUSINESS BANKING
Noninterest Revenue	$	741		$	729		$	710		$	734		$	722			2	%		3	%	$	1,470		$	1,414			4	%
Net Interest Income		1,364			1,428			1,395			1,342			1,247			(4	)		9			2,792			2,562			9
Total Net Revenue		2,105			2,157			2,105			2,076			1,969			(2	)		7			4,262			3,976			7
Provision for Credit Losses		25			36			39			79			37			(31	)		(32	)		61			94			(35	)
Noninterest Expense		1,362			1,339			1,362			1,379			1,432			2			(5	)		2,701			2,911			(7	)
Operating Earnings		437			477			430			377			308			(8	)		42			914			598			53
Business Metrics (in billions)
End-of-Period Balances
Small Business Loans	$	12.5		$	12.4		$	12.5		$	12.4		$	12.4			1			1		$	12.5		$	12.4			1
Consumer and Other Loans (a)		1.8			2.2			2.2			2.3			1.0			(18	)		80			1.8			1.0			80
Total Loans		14.3			14.6			14.7			14.7			13.4			(2	)		7			14.3			13.4			7
Core Deposits (b)		147.9			150.8			146.3			144.5			145.3			(2	)		2			147.9			145.3			2
Total Deposits		173.7			175.7			171.8			170.2			171.6			(1	)		1			173.7			171.6			1
Average Balances
Small Business Loans		12.4			12.4			12.4			12.4			12.4			—			—			12.4			12.3			1
Consumer and Other Loans (a)		1.9			2.6			2.2			2.3			2.2			(27	)		(14	)		2.3			2.4			(4	)
Total Loans		14.3			15.0			14.6			14.7			14.6			(5	)		(2	)		14.7			14.7			—
Core Deposits (b)		149.3			149.3			147.8			147.8			147.8			—			1			149.3			145.5			3
Total Deposits		174.8			173.9			171.8			172.5			173.3			1			1			174.4			171.5			2
Number of:
Branches		2,539			2,517			2,508			2,467			2,435			22	#		104	#		2,539			2,435			104	#
ATMs		6,961			6,687			6,650			6,587			6,549			274			412			6,961			6,549			412
Personal Bankers		6,258			5,798			5,750			5,744			5,783			460			475			6,258			5,783			475
Personal Checking Accounts (in thousands)		7,662			7,445			7,286			7,222			7,045			217			617			7,662			7,045			617
Business Checking Accounts (in thousands)		918			905			894			891			881			13			37			918			881			37
Active Online Customers (in thousands)		4,053			3,671			3,359			3,152			NA			382			NM			4,053			NA			NM
Debit Cards Issued (in thousands)		8,834			8,596			8,392			8,282			8,057			238			777			8,834			8,057			777
Overhead Ratio		65	%		62	%		65	%		66	%		73	%		300	bp		(800	)bp		63	%		73	%		(1,000	)bp
Retail Brokerage Business Metrics
Investment Sales Volume	$	2,907		$	2,870		$	2,770		$	2,563		$	2,818			1	%		3	%	$	5,777		$	5,478			5	%
Number of Dedicated Investment Sales Representatives		1,422			1,352			1,364			1,393			1,404			5			1			1,422			1,404			1
Credit Data and Quality Statistics
Net Charge-offs
Small Business	$	25		$	19		$	32		$	24		$	29			32			(14	)	$	44		$	49			(10	)
Consumer and Other Loans		4			9			24			36			11			(56	)		(64	)		13			18			(28	)
Total Net Charge-Offs		29			28			56			60			40			4			(28	)		57			67			(15	)
Net Charge-off Rate
Small Business		0.81	%		0.62	%		1.03	%		0.77	%		0.94	%		19	bp		(13	)bp		0.72	%		0.80	%		(8	)bp
Consumer and Other Loans		0.84			1.40			4.34			6.23			2.01			(56	)		(117	)		1.14			1.51			(37	)
Total Net Charge-Off Rate		0.81			0.76			1.53			1.62			1.10			5			(29	)		0.78			0.92			(14	)
Nonperforming Assets	$	284		$	293		$	299		$	313		$	317			(3	)%		(10	)%	$	284		$	317			(10	)%

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

Page 15

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
RETAIL BUSINESSES
AUTO & EDUCATION FINANCE
Total Net Revenue	$	395		$	324		$	364		$	397		$	454			22	%		(13	)%	$	719		$	836			(14	)%
Provision for Credit Losses		31			28			59			95			60			11			(48	)		59			155			(62	)
Noninterest Expense		170			205			166			163			159			(17	)		7			375			319			18
Operating Earnings		118			55			84			85			144			115			(18	)		173			221			(22	)
Business Metrics (in billions)
End-of-Period Loans and Lease Receivables
Loans Outstanding	$	46.2		$	52.8		$	54.6		$	53.7		$	53.0			(13	)		(13	)	$	46.2		$	53.0			(13	)
Lease Receivables		6.1			7.0			8.0			8.9			9.7			(13	)		(37	)		6.1			9.7			(37	)
Total End-of-Period Loans and Lease Receivables		52.3			59.8			62.6			62.6			62.7			(13	)		(17	)		52.3			62.7			(17	)
Average Loans and Lease Receivables
Loans Outstanding (Average) (a)	$	49.8		$	53.3		$	54.2		$	52.9		$	53.9			(7	)		(8	)	$	51.5		$	54.2			(5	)
Lease Receivables (Average)		6.6			7.6			8.4			9.2			10.1			(13	)		(35	)		7.1			10.4			(32	)
Total Average Loans and Lease Receivables (a)		56.4			60.9			62.6			62.1			64.0			(7	)		(12	)		58.6			64.6			(9	)
Overhead Ratio		43	%		63	%		46	%		41	%		35	%		(2,000	)bp		800	bp		52	%		38	%		1,400	bp
Credit Quality Statistics
30+ Day Delinquency Rate		1.46	%		1.33	%		1.55	%		1.38	%		1.30	%		13			16			1.46	%		1.30	%		16
Net Charge-offs
Loans	$	45		$	74		$	85		$	83		$	57			(39	)%		(21	)%	$	119		$	142			(16	)%
Lease Receivables		2			9			11			13			12			(78	)		(83	)		11			31			(65	)
Total Net Charge-offs		47			83			96			96			69			(43	)		(32	)		130			173			(25	)
Net Charge-off Rate
Loans (a)		0.39	%		0.61	%		0.67	%		0.65	%		0.45	%		(22	)bp		(6	)bp		0.51	%		0.57	%		(6	)bp
Lease Receivables		0.12			0.48			0.52			0.56			0.48			(36	)		(36	)		0.31			0.60			(29	)
Total Net Charge-off Rate (a)		0.36			0.60			0.65			0.64			0.45			(24	)		(9	)		0.48			0.57			(9	)
Nonperforming Assets	$	236		$	217		$	242		$	247		$	247			9	%		(4	)%	$	236		$	247			(4	)%
INSURANCE
Total Net Revenue	$	149		$	173		$	173		$	168		$	174			(14	)		(14	)	$	322		$	356			(10	)
Noninterest Expense		131			151			138			136			138			(13	)		(5	)		282			273			3
Operating Earnings		12			14			22			20			22			(14	)		(45	)		26			52			(50	)
Memo:
Consolidated Gross Insurance-Related Revenue (b)		404			416			421			429			424			(3	)		(5	)		820			837			(2	)
Business Metrics — Ending Balances
Invested Assets	$	7,641		$	7,349		$	7,368		$	7,489		$	7,343			4			4		$	7,641		$	7,343			4
Policy Loans		394			394			397			398			399			—			(1	)		394			399			(1	)
Insurance Policy and Claims Reserves		7,562			7,337			7,279			7,477			7,683			3			(2	)		7,562			7,683			(2	)
Term Life Premiums — First Year Annualized		16			14			13			15			15			14			7			30			28			7
Term Life Premiums — First Year Annualized and Renewals		122			110			119			115			117			11			4			232			221			5
Proprietary Annuity Sales		282			119			35			39			74			137			281			401			150			167
Number of Policies in Force — Direct / Assumed (in thousands)		2,454			2,540			2,611			2,633			2,689			(3	)		(9	)		2,454			2,689			(9	)
Insurance in Force — Direct / Assumed		280,176			280,082			277,827			274,390			272,932			—			3			280,176			272,932			3
Insurance in Force — Retained		83,324			83,799			80,691			76,727			75,995			(1	)		10			83,324			75,995			10
A.M. Best Rating		A			A			A			A			A									A			A

(a)

Average loans include loans held-for-sale of $4.1 billion, $4.5 billion, $3.4 billion, $2.2 billion and $2.6 billion for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004, and June 30, 2004, respectively. The year-to-date average loans held-for-sale were $4.3 billion and $3.7 billion for 2005 and 2004, respectively. These are not included in the net charge-off rate.

(b)

Includes revenue reported in the results of other businesses.

Page 16

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
INCOME STATEMENT
REVENUE
Asset Management, Administration and Commissions	$	—		$	—		$	—		$	26		$	26			NM			NM		$	—		$	51			NM
Credit Card Income		868			761			886			784			823			14	%		5	%		1,629			1,501			9	%
Other Income		42			11			31			44			32			282			31			53			98			(46	)
Noninterest Revenue		910			772			917			854			881			18			3			1,682			1,650			2
Net Interest Income		2,976			3,007			2,913			2,917			2,895			(1	)		3			5,983			5,750			4
TOTAL NET REVENUE		3,886			3,779			3,830			3,771			3,776			3			3			7,665			7,400			4
Provision for Credit Losses		1,641			1,636			1,735			1,662			1,757			—			(7	)		3,277			3,482			(6	)
NONINTEREST EXPENSE
Compensation Expense		291			285			270			317			315			2			(8	)		576			638			(10	)
Noncompensation Expense		904			839			825			926			864			8			5			1,743			1,717			2
Amortization of Intangibles		188			189			187			194			187			(1	)		1			377			374			1
TOTAL NONINTEREST EXPENSE		1,383			1,313			1,282			1,437			1,366			5			1			2,696			2,729			(1	)
Operating Earnings Before Income Tax Expense		862			830			813			672			653			4			32			1,692			1,189			42
Income Tax Expense		320			308			298			251			244			4			31			628			444			41
OPERATING EARNINGS	$	542		$	522		$	515		$	421		$	409			4			33		$	1,064		$	745			43
Memo: Net Securitization Gains (Amortization)	$	15		$	(12	)	$	—		$	(2	)	$	(2	)		NM			NM		$	3		$	—			NM
FINANCIAL METRICS
ROE		18	%		18	%		17	%		14	%		14	%		—	bp		400	bp		18	%		13	%		500	bp
Overhead Ratio		36			35			33			38			36			100			—			35			37			(200	)
% of Average Managed Outstandings:
Net Interest Income		8.83			9.13			8.79			8.90			9.17			(30	)		(34	)		8.98			9.14			(16	)
Provision for Credit Losses		4.87			4.97			5.24			5.07			5.57			(10	)		(70	)		4.92			5.53			(61	)
Noninterest Revenue		2.70			2.34			2.77			2.61			2.79			36			(9	)		2.52			2.62			(10	)
Risk Adjusted Margin (a)		6.66			6.51			6.32			6.44			6.40			15			26			6.58			6.23			35
Noninterest Expense		4.10			3.99			3.87			4.39			4.33			11			(23	)		4.05			4.34			(29	)
Pre-tax Income		2.56			2.52			2.45			2.05			2.07			4			49			2.54			1.89			65
Operating Earnings		1.61			1.58			1.55			1.28			1.30			3			31			1.60			1.18			42
BUSINESS METRICS
Charge Volume (in billions)	$	75.6		$	70.3		$	75.3		$	73.3		$	70.6			8	%		7	%	$	145.9		$	134.1			9	%
Net Accounts Opened (in thousands)		2,789			2,744			2,729			2,755			10,269			2			(73	)		5,533			12,280			(55	)
Credit Cards Issued (in thousands)		95,465			94,367			94,285			95,946			96,343			1			(1	)		95,465			96,343			(1	)
Number of Registered Internet Customers (in millions)		12.0			10.9			13.6			12.4			11.5			10			4			12.0			11.5			4
Merchant Acquiring Business
Bank Card Volume (in billions)	$	141.2		$	125.1		$	135.9		$	123.5		$	119.3			13			18		$	266.3		$	229.4			16
Total Transactions (in millions)		4,735			4,285			4,462			3,972			3,926			11			21			9,020			7,640			18

(a) Represents Total net revenue less Provision for credit losses.

Page 17

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheets	$	68,510		$	66,053		$	64,575		$	60,241		$	28,981			4	%		136	%	$	68,510		$	28,981			136	%
Securitized Loans		68,808			67,328			70,795			71,256			69,752			2			(1	)		68,808			69,752			(1	)
Seller’s Interest and Accrued Interest Receivable (a)		—			—			—			—			30,177			NM			NM			—			30,177			NM
Managed Loans	$	137,318		$	133,381		$	135,370		$	131,497		$	128,910			3			7		$	137,318		$	128,910			7
SELECTED AVERAGE BALANCES
Managed Assets	$	140,741		$	138,512		$	138,013		$	136,753		$	134,141			2			5		$	139,632		$	133,969			4
Loans:
Loans on Balance Sheets	$	67,131		$	64,218		$	61,317		$	59,386		$	29,748			5			126		$	65,683		$	29,611			122
Securitized Loans		68,075			69,370			70,505			70,980			68,008			(2	)		—			68,718			69,031			—
Seller’s Interest and Accrued Interest Receivable (a)		—			—			—			—			29,181			NM			NM			—			27,916			NM
Managed Loans	$	135,206		$	133,588		$	131,822		$	130,366		$	126,937			1			7		$	134,401		$	126,558			6
Equity		11,800			11,800			11,800			11,800			11,800			—			—			11,800			11,800			—
Headcount		20,647			20,137			19,598			20,473			21,433			3	%		(4	)%		20,647			21,433			(4	)%
CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,641		$	1,590		$	1,735		$	1,598		$	1,754			3			(6	)	$	3,231		$	3,476			(7	)
Net Charge-off Rate		4.87	%		4.83	%		5.24	%		4.88	%		5.56	%		4	bp		(69	)bp		4.85	%		5.52	%		(67	)bp
12 Month Lagged		5.19			5.11			5.49			5.08			5.70			8			(51	)		5.15			5.64			(49	)
Delinquency ratios
30+ days		3.34	%		3.54	%		3.70	%		3.81	%		3.72	%		(20	)		(38	)		3.34	%		3.72	%		(38	)
90+ days		1.54			1.71			1.72			1.75			1.73			(17	)		(19	)		1.54			1.73			(19	)
Allowance for Loan Losses	$	3,055		$	3,040		$	2,994		$	2,273		$	1,677			—	%		82	%	$	3,055		$	1,677			82	%
Allowance for Loan Losses to Period-end Loans (b)		4.46			4.60	%		4.64	%		3.77	%		5.79	%		(14	)bp		(133	)bp		4.46	%		5.79	%		(133	)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 18

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Data for the Period	$	1,596		$	1,576		$	1,672		$	1,632		$	1,534			1	%		4	%	$	3,172		$	2,961			7	%
Securitization Adjustments		(728	)		(815	)		(786	)		(848	)		(711	)		11			(2	)		(1,543	)		(1,460	)		(6	)
Managed Credit Card Income	$	868		$	761		$	886		$	784		$	823			14			5		$	1,629		$	1,501			9
Other Income
Reported Data for the Period	$	42		$	11		$	30		$	47		$	77			282			(45	)	$	53		$	182			(71	)
Securitization Adjustments		—			—			1			(3	)		(45	)		NM			NM			—			(84	)		NM
Managed Other Income	$	42		$	11		$	31		$	44		$	32			282			31		$	53		$	98			(46	)
Net Interest Income
Reported Data for the Period	$	1,318		$	1,275		$	1,117		$	1,138		$	781			3			69		$	2,593		$	1,524			70
Securitization Adjustments		1,658			1,732			1,796			1,779			2,114			(4	)		(22	)		3,390			4,226			(20	)
Managed Net Interest Income	$	2,976		$	3,007		$	2,913		$	2,917		$	2,895			(1	)		3		$	5,983		$	5,750			4
Total Net Revenue (b)
Reported Data for the Period	$	2,956		$	2,862		$	2,819		$	2,843		$	2,418			3			22		$	5,818		$	4,718			23
Securitization Adjustments		930			917			1,011			928			1,358			1			(32	)		1,847			2,682			(31	)
Managed Total Net Revenue	$	3,886		$	3,779		$	3,830		$	3,771		$	3,776			3			3		$	7,665		$	7,400			4
Provision for Credit Losses
Reported Data for the Period	$	711		$	719		$	724		$	734		$	399			(1	)		78		$	1,430		$	800			79
Securitization Adjustments		930			917			1,011			928			1,358			1			(32	)		1,847			2,682			(31	)
Managed Provision for Credit Losses	$	1,641		$	1,636		$	1,735		$	1,662		$	1,757			—			(7	)	$	3,277		$	3,482			(6	)
BALANCE SHEETS — AVERAGE BALANCES
Total Average Assets
Reported Data for the Period	$	74,515		$	71,003		$	69,485		$	67,718		$	66,133			5			13		$	72,768		$	64,938			12
Securitization Adjustments		66,226			67,509			68,528			69,035			68,008			(2	)		(3	)		66,864			69,031			(3	)
Managed Average Assets	$	140,741		$	138,512		$	138,013		$	136,753		$	134,141			2			5		$	139,632		$	133,969			4
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)
Reported Net Charge-offs Data for the period	$	711		$	673		$	724		$	670		$	396			6			80		$	1,384		$	794			74
Securitization Adjustments		930			917			1,011			928			1,358			1			(32	)		1,847			2,682			(31	)
Managed Net Charge-offs	$	1,641		$	1,590		$	1,735		$	1,598		$	1,754			3			(6	)	$	3,231		$	3,476			(7	)

(a)

JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance and overall financial 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 affect both the loan receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed loan 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 Total net revenue, the Provision for credit losses, net charge-offs and loan receivables. Securitization does not change reported net income versus operating earnings; however, it does affect the classification of items on the Consolidated statements of income.

(b)

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

Page 19

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	143		$	142		$	147		$	162		$	168			1	%		(15	)%	$	285		$	330			(14	)%
Asset Management, Administration and Commissions		15			15			12			12			10			—			50			30			21			43
Other Income (a)		94			68			103			51			95			38			(1	)		162			172			(6	)
Noninterest Revenue		252			225			262			225			273			12			(8	)		477			523			(9	)
Net Interest Income		648			625			623			608			593			4			9			1,273			1,176			8
TOTAL NET REVENUE		900			850			885			833			866			6			4			1,750			1,699			3
Provision for Credit Losses		142			(6	)		21			14			18			NM			NM			136			(68	)		NM
NONINTEREST EXPENSE
Compensation Expense		160			163			153			176			167			(2	)		(4	)		323			325			(1	)
Noncompensation Expense		296			278			281			286			286			6			3			574			560			3
Amortization of Intangibles		17			17			17			18			18			—			(6	)		34			36			(6	)
TOTAL NONINTEREST EXPENSE		473			458			451			480			471			3			—			931			921			1
Operating Earnings Before Income Tax Expense		285			398			413			339			377			(28	)		(24	)		683			846			(19	)
Income Tax Expense		111			155			159			124			143			(28	)		(22	)		266			323			(18	)
OPERATING EARNINGS	$	174		$	243		$	254		$	215		$	234			(28	)		(26	)	$	417		$	523			(20	)
MEMO:
Revenue by Product:
Lending	$	285		$	269		$	280		$	314		$	314			6			(9	)	$	554		$	626			(12	)
Treasury Services		558			542			528			499			485			3			15			1,100			961			14
Investment Banking		62			40			61			24			49			55			27			102			94			9
Other		(5	)		(1	)		16			(4	)		18			(400	)		NM			(6	)		18			NM
Total Commercial Banking Revenue	$	900		$	850		$	885		$	833		$	866			6			4		$	1,750		$	1,699			3
Revenue by Business:
Middle Market	$	594		$	572		$	571		$	551		$	562			4			6		$	1,166		$	1,105			6
Corporate Banking		138			123			142			109			134			12			3			261			262			—
Real Estate		131			119			133			123			135			10			(3	)		250			254			(2	)
Other		37			36			39			50			35			3			6			73			78			(6	)
Total Commercial Banking Revenue	$	900		$	850		$	885		$	833		$	866			6			4		$	1,750		$	1,699			3
FINANCIAL RATIOS
ROE		21	%		29	%		30	%		25	%		28	%		(800	)bp		(700	)bp		25	%		31	%		(600	)bp
ROA		1.25			1.79			1.81			1.53			1.70			(54	)		(45	)		1.51			1.92			(41	)
Overhead Ratio		53			54			51			58			54			(100	)		(100	)		53			54			(100	)
SELECTED BALANCE SHEETS (Average)
Total Assets	$	55,963		$	55,080		$	55,837		$	55,957		$	55,268			2	%		1	%	$	55,524		$	54,774			1	%
Loans and Leases		51,184			49,969			50,469			50,324			49,727			2			3			50,580			49,293			3
Liability Balances (b)		72,498			71,613			69,360			69,944			69,827			1			4			72,058			68,222			6
Equity		3,400			3,400			3,400			3,400			3,400			—			—			3,400			3,400			—
MEMO:
Loans by Business:
Middle Market	$	31,051		$	30,216		$	29,997		$	29,307		$	28,803			3			8		$	30,636		$	28,570			7
Corporate Banking		6,239			5,788			6,109			6,087			5,861			8			6			6,015			5,900			2
Real Estate		10,169			10,345			10,679			11,646			11,384			(2	)		(11	)		10,256			11,060			(7	)
Other		3,725			3,620			3,684			3,284			3,679			3			1			3,673			3,763			(2	)
Total Commercial Banking Loans	$	51,184		$	49,969		$	50,469		$	50,324		$	49,727			2			3		$	50,580		$	49,293			3
Headcount		4,474			4,495			4,555			4,595			4,586			—			(2	)		4,474			4,586			(2	)
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(3	)	$	2		$	45		$	(13	)	$	30			NM			NM		$	(1	)	$	30			NM
Nonperforming Loans		434			433			527			579			614			—			(29	)		434			614			(29	)
Allowance for Loan Losses		1,431			1,312			1,322			1,350			1,219			9			17			1,431			1,219			17
Allowance for Lending-Related Commitments		196			170			169			164			258			15			(24	)		196			258			(24	)
Net Charge-off (Recovery) Rate		(0.02	)%		0.02	%		0.35	%		(0.10	)%		0.24	%		(4	)bp		(26	)bp	$	—	%		0.12	%		(12	)bp
Allowance for Loan Losses to Average Loans		2.80			2.63			2.62			2.68			2.45			17			35			2.83			2.47			36
Allowance for Loan Losses to Nonperforming Loans		330			303			251			233			201			2,700			12,900			330			199			13,100
Nonperforming Loans to Average Loans		0.85			0.87			1.04			1.15			1.23			(2	)		(38	)		0.86			1.25			(39	)

(a)	IB-related and commercial card revenues are included in Other Income.
(b)	Liability balances include deposits and deposits that are swept to on-balance sheet liabilities.

Page 20

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	197		$	170		$	200		$	218		$	243			16	%		(19	)%	$	367		$	488			(25	)%
Asset Management, Administration and Commissions		736			692			630			600			645			6			14			1,428			1,246			15
Other Income		145			124			112			103			109			17			33			269			194			39
Noninterest Revenue		1,078			986			942			921			997			9			8			2,064			1,928			7
Net Interest Income		510			496			471			418			371			3			37			1,006			720			40
TOTAL NET REVENUE		1,588			1,482			1,413			1,339			1,368			7			16			3,070			2,648			16
Provision for Credit Losses		2			(3	)		3			—			3			NM			(33	)		(1	)		4			NM
Credit Reimbursement to IB (a)		(38	)		(38	)		(43	)		(43	)		(43	)		—			12			(76	)		(86	)		12
NONINTEREST EXPENSE
Compensation Expense		522			504			471			472			466			4			12			1,026			936			10
Noncompensation Expense		642			532			643			654			678			21			(5	)		1,174			1,277			(8	)
Amortization of Intangibles		30			29			32			30			31			3			(3	)		59			63			(6	)
TOTAL NONINTEREST EXPENSE		1,194			1,065			1,146			1,156			1,175			12			2			2,259			2,276			(1	)
Operating Earnings before Income Tax Expense		354			382			221			140			147			(7	)		141			736			282			161
Income Tax Expense		125			137			76			44			44			(9	)		184			262			86			205
OPERATING EARNINGS	$	229		$	245		$	145		$	96		$	103			(7	)		122		$	474		$	196			142
REVENUE BY BUSINESS
Treasury Services (“TS”)	$	682		$	618		$	642		$	629		$	584			10			17		$	1,300		$	1,150			13
Investor Services (“IS”)		544			508			454			404			470			7			16			1,052			883			19
Institutional Trust Services (“ITS”)		362			356			317			306			314			2			15			718			615			17
TOTAL NET REVENUE	$	1,588		$	1,482		$	1,413		$	1,339		$	1,368			7			16		$	3,070		$	2,648			16
FINANCIAL RATIOS
ROE		48	%		52	%		30	%		20	%		22	%		(400	)bp		2,600	bp		50	%		21	%		2,900	bp
Overhead Ratio		75			72			81			86			86			300			(1,100	)		74			86			(1,200	)
Pre-tax Margin Ratio (b)		22			26			16			10			11			(400	)		1,100			24			11			1,300
BUSINESS METRICS
Assets under Custody (in billions) (c)	$	10,190		$	10,154		$	9,300		$	8,427		$	8,149			—	%		25	%	$	10,190		$	8,149			25	%
Corporate Trust Securities under Administration (in billions) (d)		6,704			6,745			6,676			6,569			6,464			(1	)		4			6,704			6,464			4
Number of:
ACH transactions originated (in millions)		727			699			693			651			603			4			21			1,426			1,165			22
Total US$ Clearing Volume (in thousands)		24,200			21,705			22,590			21,781			21,856			11			11			45,905			42,990			7
Total Non-US$ Clearing Volume (in thousands)		13,372			11,587			11,131			10,490			10,907			15			23			24,959			21,462			16
Wholesale Check Volume (in millions)		921			877			NA			NA			NA			5			NM			1,798			NA			NM
Wholesale Cards Issued (in thousands)(e)		12,075			11,834			11,787			11,260			10,780			2			12			23,909			21,032			14
SELECTED BALANCE SHEETS (Average)
Total Assets	$	26,437		$	27,033		$	28,538		$	24,831		$	26,745			(2	)		(1	)	$	26,733		$	25,943			3
Loans		9,956			10,091			9,988			8,457			8,272			(1	)		20			10,023			7,898			27
Liability Balances (f)		164,036			154,673			147,789			136,606			132,688			6			24			159,380			127,686			25
Equity		1,900			1,900			1,900			1,900			1,900			—			—			1,900			1,900			—
Headcount		23,871			23,073			22,612			22,246			22,393			3			7			23,871			22,393			7
FIRMWIDE DISCLOSURES
Treasury Services Firmwide Revenue (g)	$	1,314		$	1,237		$	1,238		$	1,205		$	1,164			6			13		$	2,551		$	2,295			11
Treasury & Securities Services Firmwide Revenue (g)		2,220			2,101			2,009			1,915			1,948			6			14			4,321			3,793			14
Treasury Services Firmwide Overhead Ratio (h)		54	%		56	%		61	%		59	%		64	%		(200	)bp		(1,000	)bp		55	%		66	%		(1,100	)bp
Treasury & Securities Services Firmwide Overhead Ratio (h)		66			63			69			72			72			300			(600	)		64			72			(800	)
Treasury Services Firmwide Liability Balances (i)	$	138,058		$	133,770		$	130,505		$	125,813		$	129,266			3	%		7	%	$	135,926		$	126,376			8	%
Treasury & Securities Services Firmwide Liability Balances (i)		236,534			226,286			217,149			203,550			202,515			5			17			231,438			195,908			18

Page 21

JPMORGAN CHASE & CO.
TREASURY & SECURITIES SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions)

FOOTNOTES

(a)	TSS is charged a credit reimbursement related to certain exposures managed within the IB credit portfolio on behalf of clients shared with TSS.
(b)	Pre-tax margin represents Operating Earnings before Income Taxes divided by Total Net Revenue, which is a comprehensive measure of pre-tax performance and is another basis by which TSS management evaluates its performance and that of its competitors. Pre-tax margin is an effective measure of TSS’ earnings after all operating costs are taken into consideration.
(c)	Beginning March 31, 2005, assets under custody include an estimated $400 billion of ITS assets under custody that have not been included previously. At June 30, 2005 approximately 5% of total assets under custody were trust related.
(d)	Corporate Trust Securities under Administration include debt held in trust on behalf of third parties and debt serviced as agent.
(e)	Wholesale cards issued include domestic commercial card, stored value card, prepaid card, and government electronic benefit card products.
(f)	Liability balances include deposits and deposits swept to on-balance sheet liabilities.

FIRMWIDE DISCLOSURES

Treasury & Securities Services firmwide metrics include certain TSS product revenues and liability balances reported in other lines of business for customers who are also customers of those lines of business. In order to capture the firmwide impact of TS and TSS products and revenues, management reviews firmwide metrics such as liability balances, revenues and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.

(g)	Firmwide revenues include TS revenues recorded in the Commercial Banking, Consumer & Small Business Banking and Asset & Wealth Management lines of business (see below) and exclude FX revenues recorded in the IB for TSS-related FX activity. TSS firmwide FX revenue, which includes FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of the IB, was $96 million and $90 million for the quarters ended June 30, 2005 and March 31, 2005, respectively.
(h)	Overhead ratios have been calculated based on firmwide revenues and TSS and TS expenses, respectively, including those allocated to certain other lines of business. FX revenues and expenses recorded in the IB for TSS-related FX activity are not included in this ratio.
(i)	Firmwide liability balances include TS’ liability balances recorded in certain other lines of business. Liability balances associated with TS customers who are also customers of the Commercial Banking line of business are not included in TS liability balances.

									PRO FORMA										PRO FORMA
									COMBINED		2QTR 2005								COMBINED		YTD 2005
	2QTR		1QTR		4QTR		3QTR		2QTR		Change						Year-to-date				Change
	2005		2005		2004		2004		2004		1QTR 2005			2QTR 2004			2005		2004		2004
Treasury Services Revenue Reported in Commercial Banking	$	558	$	542	$	528	$	499	$	485		3	%		15	%	$	1,100	$	961		14	%
Treasury Services Revenue Reported in Other Lines of Business		74		77		68		77		95		(4	)		(22	)		151		184		(18	)

Page 22

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	6		$	9		$	10		$	10		$	9			(33	)%		(33	)%	$	15		$	19			(21	)%
Asset Management, Administration and Commissions		994			975			952			859			886			2			12			1,969			1,797			10
Other Income		69			95			60			55			49			(27	)		41			164			101			62
Noninterest Revenue		1,069			1,079			1,022			924			944			(1	)		13			2,148			1,917			12
Net Interest Income		274			282			288			269			241			(3	)		14			556			481			16
TOTAL NET REVENUE		1,343			1,361			1,310			1,193			1,185			(1	)		13			2,704			2,398			13
Provision for Credit Losses		(20	)		(7	)		(21	)		1			(5	)		(186	)		(300	)		(27	)		4		NM
NONINTEREST EXPENSE
Compensation Expense		509			538			459			452			448			(5	)		14			1,047			876			20
Noncompensation Expense		383			371			436			409			423			3			(9	)		754			817			(8	)
Amortization of Intangibles		25			25			24			23			23			—			9			50			46			9
TOTAL NONINTEREST EXPENSE		917			934			919			884			894			(2	)		3			1,851			1,739			6
Operating Earnings before Income Tax Expense		446			434			412			308			296			3			51			880			655			34
Income Tax Expense		163			158			149			111			106			3			54			321			236			36
OPERATING EARNINGS	$	283		$	276		$	263		$	197		$	190			3			49		$	559		$	419			33
FINANCIAL RATIOS
ROE		47	%		47	%		44	%		33	%		32	%	—		bp	1,500		bp		47	%		35	%	1,200		bp
Overhead Ratio		68			69			70			74			75			(100	)		(700	)		68			73			(500	)
Pre-tax Margin Ratio (a)		33			32			31			26			25			100			800			33			27			600
BUSINESS METRICS
Number of:
Client Advisors		1,409			1,390			1,333			1,334			1,323			1	%		7	%		1,409			1,323			7	%
Brown Co Average Daily Trades		26,267			29,753			30,521			23,969			28,702			(12	)		(8	)		28,010			32,586			(14	)
Retirement Planning Services Participants		1,210,000			1,181,000			918,000			874,000			844,000			2			43			1,210,000			844,000			43
Star Rankings: (b)
% of Customer Assets in Funds Ranked 4 or Better		50	%		48	%		48	%		56	%		52	%		4			(4	)		50	%		52	%		(4	)
% of Customer Assets in Funds Ranked 3 or Better		80	%		79	%		81	%		80	%		78	%		1			3			80	%		78	%		3
Funds Quartile Ranking (1YR) : (c)
% of AUM in 1st and 2nd Quartiles		75	%		71	%		66	%		63	%		56	%		6			34			75	%		56	%		34
REVENUE BY CLIENT SEGMENT
Private Bank	$	409		$	422		$	427		$	383		$	388			(3	)		5		$	831		$	782			6
Retail		363			346			358			292			315			5			15			709			623			14
Institutional		313			322			265			267			241			(3	)		30			635			498			28
Private Client Services		258			271			260			251			241			(5	)		7			529			495			7
Total Net Revenue	$	1,343		$	1,361		$	1,310		$	1,193		$	1,185			(1	)		13		$	2,704		$	2,398			13
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	42,001		$	39,716		$	40,689		$	39,882		$	40,223			6			4		$	40,865		$	40,197			2
Loans		26,572			26,357			25,966			25,408			24,943			1			7			26,465			24,536			8
Deposits (d)		40,774			42,043			43,415			38,940			36,954			(3	)		10			41,405			36,050			15
Equity		2,400			2,400			2,400			2,400			2,400			—			—			2,400			2,400			—
Headcount		12,455			12,378			12,287			12,368			12,311			1			1			12,455			12,311			1
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(2	)	$	(6	)	$	5		$	6		$	6			67		NM			$	(8	)	$	59		NM
Nonperforming Loans		100			78			79			125			144			28			(31	)		100			144			(31	)
Allowance for Loan Losses		195			214			216			241			114			(9	)		71			195			114			71
Allowance for Lending Related Commitments		3			5			5			5			4			(40	)		(25	)		3			4			(25	)
Net Charge-off (Recovery) Rate		(0.03	)%		(0.09	)%		0.08	%		0.09	%		0.10	%	6		bp	(13		)bp		(0.06	)%		0.48	%	(54		)bp
Allowance for Loan Losses to Average Loans		0.73			0.81			0.83			0.95			0.46			(8	)		27			0.74			0.46			28
Allowance for Loan Losses to Nonperforming Loans		195			274			273			193			79			(7,900	)		11,600			195			79			11,600
Nonperforming Loans to Average Loans		0.38			0.30			0.30			0.49			0.58			8			(20	)		0.38			0.59			(21	)

(a)	Pre-tax margin represents Operating Earnings before Income Tax Expense divided by 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.
(c)	Quartile ranking sourced from Lipper for the United States and Taiwan; Micropal for the United Kingdom, Luxemburg and Hong Kong; and Nomura for Japan.
(d)	Reflects the transfer of certain consumer deposits from Retail Financial Services to Asset & Wealth Management.

Page 23

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

									PRO FORMA
									COMBINED		2QTR 2005
	2QTR		1QTR		4QTR		3QTR		2QTR		Change
	2005		2005		2004		2004		2004		1QTR 2005			2QTR 2004
Asset Class
Liquidity	$	223	$	228	$	232	$	210	$	216		(2	)%		3	%
Fixed Income		171		171		171		174		180		—			(5	)
Equities & Balanced		323		326		326		298		305		(1	)		6
Alternatives		66		65		62		53		50		2			32
Assets under Management		783		790		791		735		751		(1	)		4
Custody / Brokerage / Administration / Deposits		310		302		315		268		259		3			20
Total Assets under Supervision	$	1,093	$	1,092	$	1,106	$	1,003	$	1,010		—			8
Client Segment
Private Bank
Assets under Management	$	135	$	138	$	139	$	136	$	139		(2	)		(3	)
Custody / Brokerage / Administration / Deposits		165		161		165		143		138		2			20
Assets under Supervision		300		299		304		279		277		—			8
Retail
Assets under Management		141		138		133		122		125		2			13
Custody / Brokerage / Administration / Deposits		97		94		88		81		80		3			21
Assets under Supervision		238		232		221		203		205		3			16
Institutional
Assets under Management		455		462		466		426		436		(2	)		4
Custody / Brokerage / Administration / Deposits		3		5		21		4		1		(40	)		200
Assets under Supervision		458		467		487		430		437		(2	)		5
Private Client Services
Assets under Management		52		52		53		51		51		—			2
Custody / Brokerage / Administration / Deposits		45		42		41		40		40		7			13
Assets under Supervision		97		94		94		91		91		3			7
Total Assets under Supervision	$	1,093	$	1,092	$	1,106	$	1,003	$	1,010		—			8
Geographic Region
Americas
Assets under Management	$	535	$	558	$	562	$	531	$	546		(4	)		(2	)
Custody / Brokerage / Administration / Deposits		270		263		281		238		227		3			19
Assets under Supervision		805		821		843		769		773		(2	)		4
International
Assets under Management		248		232		229		204		205		7			21
Custody / Brokerage / Administration / Deposits		40		39		34		30		32		3			25
Assets under Supervision		288		271		263		234		237		6			22
Total Assets under Supervision	$	1,093	$	1,092	$	1,106	$	1,003	$	1,010		—			8
Memo:
Mutual Funds Assets:
Liquidity	$	174	$	175	$	183	$	163	$	173		(1	)		1
Fixed Income		41		45		41		48		49		(9	)		(16	)
Equities, Balanced & Alternatives		114		106		104		97		96		8			19
Total Mutual Funds Assets	$	329	$	326	$	328	$	308	$	318		1			3

Page 24

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

													PRO FORMA						PRO FORMA
													COMBINED						COMBINED
	2QTR			1QTR			4QTR			3QTR			2QTR			Year-to-date
	2005			2005			2004			2004			2004			2005			2004
Assets Under Management Rollforward
Beginning Balance	$	790		$	791		$	735		$	751		$	772		$	791		$	744
Liquidity Net Asset Flows		(5	)		(6	)		16			(9	)		(11	)		(11	)		(11	)
Fixed Income Net Asset Flows		(2	)		4			(2	)		(5	)		1			2			1
Equities, Balanced & Alternatives Net Asset Flows		8			1			6			(2	)		2			9			10
Acquisitions (a)		—			—			7			—			—			—			—
Market / Other Impacts (b)		(8	)		—			29			—			(13	)		(8	)		7
Ending Balance	$	783		$	790		$	791		$	735		$	751		$	783		$	751
Custody / Brokerage / Administration / Deposits Rollforward
Beginning Balance	$	302		$	315		$	268		$	259		$	254		$	315		$	237
Custody / Brokerage / Administration / Deposits Net Asset Flows		(1	)		7			12			12			4			6			10
Market / Other Impacts		9			(20	)		35			(3	)		1			(11	)		12
Ending Balance	$	310		$	302		$	315		$	268		$	259		$	310		$	259
Assets Under Supervision Rollforward
Beginning Balance	$	1,092		$	1,106		$	1,003		$	1,010		$	1,026		$	1,106		$	981
Net Asset Flows		—			6			32			(4	)		(4	)		6			10
Acquisitions (a)		—			—			7			—			—			—			—
Market / Other Impacts (b)		1			(20	)		64			(3	)		(12	)		(19	)		19
Ending Balance	$	1,093		$	1,092		$	1,106		$	1,003		$	1,010		$	1,093		$	1,010

(a)	Reflects the acquisition of a majority interest in Highbridge Capital Management in the fourth quarter of 2004 ($7 billion).
(b)	Includes AWM’s strategic decision to exit the Institutional Fiduciary business in the second quarter of 2005 ($12bn).

Page 25

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
INCOME STATEMENT
Revenue
Securities / Private Equity Gains (Losses)	$	310		$	(130	)	$	584		$	347		$	343		NM		%		(10	)%	$	180		$	904			(80	)%
Other Income		87			48			38			131			159			81			(45	)		135			225			(40	)
Noninterest Revenue		397			(82	)		622			478			502		NM				(21	)		315			1,129			(72	)
Net Interest Income		(763	)		(677	)		(657	)		(536	)		(265	)		(13	)		(188	)		(1,440	)		(577	)		(150	)
TOTAL NET REVENUE		(366	)		(759	)		(35	)		(58	)		237			52		NM				(1,125	)		552		NM
Provision for Credit Losses		1			(4	)		—			(1	)		(27	)	NM			NM				(3	)		(111	)		97
Noninterest Expense
Compensation Expense		772			774			662			786			751			—			3			1,546			1,550			—
Noncompensation Expense		1,042			996			1,215			1,146			1,200			5			(13	)		2,038			2,399			(15	)
Subtotal		1,814			1,770			1,877			1,932			1,951			2			(7	)		3,584			3,949			(9	)
Net Expenses Allocated to Other Businesses		(1,337	)		(1,335	)		(1,417	)		(1,426	)		(1,463	)		—			9			(2,672	)		(2,915	)		8
TOTAL NONINTEREST EXPENSE		477			435			460			506			488			10			(2	)		912			1,034			(12	)
Operating Earnings before Income Tax Expense		(844	)		(1,190	)		(495	)		(563	)		(224	)		29			(277	)		(2,034	)		(371	)		(448	)
Income Tax Expense (Benefit)		(358	)		(503	)		(199	)		(344	)		(121	)		29			(196	)		(861	)		(253	)		(240	)
OPERATING EARNINGS	$	(486	)	$	(687	)	$	(296	)	$	(219	)	$	(103	)		29			(372	)	$	(1,173	)	$	(118	)	NM
SELECTED AVERAGE BALANCE SHEETS
Short-term Investments (a)	$	16,779		$	13,164		$	19,252		$	26,432		$	14,669			27			14		$	14,982		$	10,273			46
Investment Portfolio (b)		50,751			74,795			72,583			74,708			94,960			(32	)		(47	)		62,707			96,751			(35	)
Goodwill (c)		43,524			43,306			42,980			42,958			43,030			1			1			43,415			42,986			1		��
Total Assets		159,160			178,089			197,794			204,884			225,267			(11	)		(29	)		168,572			224,530			(25	)
Headcount		28,114			26,983			24,806			24,482			24,386			4			15			28,114			24,386			15
TREASURY
Securities Gains (Losses) (d)	$	6		$	(918	)	$	77		$	109		$	(54	)	NM			NM			$	(912	)	$	172		NM
Investment Portfolio (Average)	$	43,652		$	65,646		$	63,362		$	65,508		$	85,460			(34	)		(49	)	$	54,588		$	87,354			(38	)
Investment Portfolio (Ending)	$	34,319		$	46,943		$	64,949		$	61,331		$	73,716			(27	)		(53	)	$	34,319		$	73,716			(53	)

(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)	Effective with the third quarter of 2004, all goodwill is allocated to the Corporate line of business. Prior to the third quarter of 2004, goodwill was allocated to the various lines of business.
(d)	Losses in the first quarter of 2005 were primarily due to the sale of $20 billion of investment securities during the month of March 2005. Excludes gains/losses on securities used to manage risk associated with mortgage servicing rights.

Page 26

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year to date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
PRIVATE EQUITY
Private Equity Gains (Losses)
Direct Investments
Realized Gains	$	555		$	633		$	442		$	277		$	411			(12	)%		35	%	$	1,188		$	751			58	%
Write-ups / (Write-downs)		(133	)		206			(111	)		(31	)		(54	)	NM				(146	)		73			(123	)	NM
Mark-to-Market Gains (Losses)		(153	)		(89	)		167			(27	)		13			(72	)	NM				(242	)		52		NM
Total Direct Investments		269			750			498			219			370			(64	)		(27	)		1,019			680			50
Third-Party Fund Investments		31			39			8			16			22			(21	)		41			70			45			56
Total Private Equity Gains		300			789			506			235			392			(62	)		(23	)		1,089			725			50
Other Income		11			5			16			14			10			120			10			16			19			(16	)
Net Interest Income		(56	)		(50	)		(70	)		(89	)		(98	)		(12	)		43			(106	)		(211	)		50
Total Net Revenue		255			744			452			160			304			(66	)		(16	)		999			533			87
Total Noninterest Expense		66			62			79			73			79			6			(16	)		128			157			(18	)
Operating Earnings before Income Tax Expense		189			682			373			87			225			(72	)		(16	)		871			376			132
Income Tax Expense		67			245			134			27			75			(73	)		(11	)		312			129			142
OPERATING EARNINGS	$	122		$	437		$	239		$	60		$	150			(72	)		(19	)	$	559		$	247			126
Private Equity Portfolio Information
Direct Investments
Publicly-Held Securities
Carrying Value	$	761		$	1,149		$	1,170		$	958		$	936			(34	)		(19	)
Cost		580			808			744			675			623			(28	)		(7	)
Quoted Public Value		1,082			1,713			1,758			1,415			1,431			(37	)		(24	)
Privately-Held Direct Securities
Carrying Value		5,037			5,490			5,686			6,011			6,140			(8	)		(18	)
Cost		6,362			6,689			7,178			7,551			7,757			(5	)		(18	)
Third-Party Fund Investments
Carrying Value		552			550			641			1,138			1,559			—			(65	)
Cost		921			934			1,042			1,761			2,161			(1	)		(57	)
Total Private Equity Portfolio — Carrying Value	$	6,350		$	7,189		$	7,497		$	8,107		$	8,635			(12	)		(26	)
Total Private Equity Portfolio — Cost	$	7,863		$	8,431		$	8,964		$	9,987		$	10,541			(7	)		(25	)

Page 27

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

									PRO FORMA		Jun 30, 2005
									COMBINED		Change
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
	2005		2005		2004		2004		2004		2005			2004
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	110,096	$	101,261	$	99,868	$	99,451	$	99,860		9	%		10	%
Loans — Non-U.S.		39,492		36,140		35,199		32,893		33,151		9			19
TOTAL WHOLESALE LOANS — REPORTED		149,588		137,401		135,067		132,344		133,011		9			12
CONSUMER (b)
Home Finance
Home Equity and Other		72,346		68,779		67,837		67,368		63,598		5			14
Mortgage		58,594		55,588		56,816		56,035		56,502		5			4
Total Home Finance		130,940		124,367		124,653		123,403		120,100		5			9
Auto & Education Finance		52,309		59,837		62,712		62,587		62,671		(13	)		(17	)
Consumer & Small Business and Other		14,678		15,011		15,107		15,126		13,805		(2	)		6
Credit Card Receivables — Reported		68,510		66,053		64,575		60,241		28,981		4			136
TOTAL CONSUMER LOANS — REPORTED		266,437		265,268		267,047		261,357		225,557		—			18
TOTAL LOANS — REPORTED		416,025		402,669		402,114		393,701		358,568		3			16
Credit Card Securitizations		68,808		67,328		70,795		71,256		99,929		2			(31	)
TOTAL LOANS — MANAGED		484,833		469,997		472,909		464,957		458,497		3			6
Derivative Receivables		55,015		60,388		65,982		57,795		55,086		(9	)		—
Interests in Purchased Receivables (c)		27,887		28,484		31,722		30,479		30,184		(2	)		(8	)
Other Receivables		—		—		—		—		108		NM			NM
TOTAL CREDIT-RELATED ASSETS		567,735		558,869		570,613		553,231		543,875		2			4
Wholesale Lending-Related Commitments		314,034		316,282		309,399		315,946		321,615		(1	)		(2	)
TOTAL	$	881,769	$	875,151	$	880,012	$	869,177	$	865,490		1			2
Memo: Total by Category
Total Wholesale Exposure (d)	$	546,524	$	542,555	$	542,170	$	536,564	$	540,004		1			1
Total Consumer Managed Loans (e)		335,245		332,596		337,842		332,613		325,486		1			3
Total	$	881,769	$	875,151	$	880,012	$	869,177	$	865,490		1			2
Risk Profile of Wholesale Credit Exposure:
Investment-Grade	$	427,966	$	433,928	$	441,930	$	429,198	NA			(1	)		NM
Noninvestment-Grade:
Noncriticized		112,140		101,859		91,605		97,126	NA			10			NM
Criticized Performing (f)		4,536		4,859		6,263		8,113	NA			(7	)		NM
Criticized Nonperforming (f)		1,504		1,590		2,021		1,772	NA			(5	)		NM
Total Noninvestment-Grade	$	118,180	$	108,308	$	99,889	$	107,011	NA			9			NM
Purchased Held-for-Sale Wholesale Loans (g)	$	378	$	319	$	351	$	355	NA			18			NM

(a)	Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset & Wealth Management.
(b)	Includes Retail Financial Services and Card Services.
(c)	These represent undivided interests in pools of receivables and similar types of assets.
(d)	Represents Total Wholesale Loans, Derivative Receivables, Interests in Purchased Receivables, Other Receivables and Wholesale Lending-Related Commitments.
(e)	Represents Total Consumer Loans plus Credit Card Securitizations, excluding consumer lending-related commitments.
(f)	For the quarter ended March 31, 2005, the Firm conformed its methodology for reporting Criticized exposure. Excluding this change in methodology, Criticized exposure would have been $7,632 million in the first quarter of 2005.
(g)	Represents distressed wholesale loans purchased as part of 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 28

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

													PRO FORMA			Jun 30, 2005
													COMBINED			Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2005			2005			2004			2004			2004			2005			2004
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS
Loans — U.S.	$	959		$	1,005		$	1,228		$	1,405		$	1,382			(5	)%		(31	)%
Loans — Non-U.S.		292			324			346			378			726			(10	)		(60	)
TOTAL WHOLESALE LOANS — REPORTED (a)		1,251			1,329			1,574			1,783			2,108			(6	)		(41	)
CONSUMER LOANS
Home Finance		662			691			673			789			750			(4	)		(12	)
Auto & Education Finance		190			171			193			211			221			11			(14	)
Consumer & Small Business and Other		280			288			295			308			311			(3	)		(10	)
Credit Card Receivables — Reported		9			8			8			9			9			13			—
TOTAL CONSUMER LOANS — REPORTED		1,141			1,158			1,169			1,317			1,291			(1	)		(12	)
TOTAL LOANS REPORTED (a)		2,392			2,487			2,743			3,100			3,399			(4	)		(30	)
Derivative Receivables		234			241			241			238			223			(3	)		5
Other Receivables		—			—			—			—			108			NM			NM
Assets Acquired in Loan Satisfactions		206			221			247			299			320			(7	)		(36	)
TOTAL NONPERFORMING ASSETS (a)	$	2,832		$	2,949		$	3,231		$	3,637		$	4,050			(4	)		(30	)
PURCHASED HELD-FOR-SALE WHOLESALE LOANS (b)	$	378		$	319		$	351		$	355		$	374			18			1
TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.57	%		0.62	%		0.68	%		0.79	%		0.95	%		(5)	bp		(38)	bp
NONPERFORMING ASSETS BY LOB
Investment Bank	$	946		$	1,056		$	1,196		$	1,321		$	1,684			(10	)%		(44	)%
Retail Financial Services		1,319			1,351			1,385			1,557			1,551			(2	)		(15	)
Card Services		9			8			8			9			9			13			—
Commercial Banking		452			452			547			606			642			—			(30	)
Treasury & Securities Services		6			4			14			4			5			50			20
Asset and Wealth Management		100			78			81			140			159			28			(37	)
TOTAL	$	2,832		$	2,949		$	3,231		$	3,637		$	4,050			(4	)		(30	)

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

Page 29

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
GROSS CHARGE-OFFS
Wholesale Loans	$	31		$	61		$	123		$	80		$	208			(49	)%		(85	)%	$	92		$	416			(78	)%
Consumer (Excluding Card)		167			219			658			269			244			(24	)		(32	)		386			558			(31	)
Credit Card Receivables — Reported		811			753			784			760			434			8			87			1,564			871			80
Total Loans — Reported		1,009			1,033			1,565			1,109			886			(2	)		14			2,042			1,845			11
Credit Card Securitizations		1,060			1,034			1,126			1,039			1,507			3			(30	)		2,094			2,986			(30	)
Total Loans — Managed		2,069			2,067			2,691			2,148			2,393			—			(14	)		4,136			4,831			(14	)
RECOVERIES
Wholesale Loans		83			70			55			104			167			19			(50	)		153			297			(48	)
Consumer (Excluding Card)		53			67			52			50			68			(21	)		(22	)		120			146			(18	)
Credit Card Receivables — Reported		100			80			60			90			38			25			163			180			77			134
Total Loans — Reported		236			217			167			244			273			9			(14	)		453			520			(13	)
Credit Card Securitizations		130			117			115			111			149			11			(13	)		247			304			(19	)
Total Loans — Managed		366			334			282			355			422			10			(13	)		700			824			(15	)
NET CHARGE-OFFS
Wholesale Loans		(52	)		(9	)		68			(24	)		41			(478	)		NM			(61	)		119			NM
Consumer (Excluding Card)		114			152			606			219			176			(25	)		(35	)		266			412			(35	)
Credit Card Receivables — Reported		711			673			724			670			396			6			80			1,384			794			74
Total Loans — Reported		773			816			1,398			865			613			(5	)		26			1,589			1,325			20
Credit Card Securitizations		930			917			1,011			928			1,358			1			(32	)		1,847			2,682			(31	)
Total Loans — Managed	$	1,703		$	1,733		$	2,409		$	1,793		$	1,971			(2	)		(14	)	$	3,436		$	4,007			(14	)
NET CHARGE-OFF RATES — ANNUALIZED
Wholesale Loans (a)		(0.17	)%		(0.03	)%		0.21	%		(0.08	)%		0.13	%		(14	)bp		(30	)bp		(0.10	)%		0.19	%		(29	)bp
Consumer (Excluding Card) (b)		0.25			0.34			1.28			0.47			0.40			(9	)		(15	)		0.29			0.48			(19	)
Credit Card Receivables — Reported		4.25			4.25			4.70			4.49			5.35			—			(110	)		4.25			5.39			(114	)
Total Loans — Reported (a) (b)		0.83			0.88			1.47			0.93			0.74			(5	)		9			0.86			0.81			5
Credit Card Securitizations		5.48			5.36			5.70			5.20			5.62			12			(14	)		5.42			5.56			(14	)
Total Loans — Managed (a) (b)		1.55			1.58			2.13			1.62			1.85			(3	)		(30	)		1.57			1.89			(32	)
Memo: Credit Card — Managed		4.87			4.83			5.24			4.88			5.56			4			(69	)		4.85			5.52			(67	)

(a)

Wholesale loans held-for-sale were $17,871 million, $8,154 million, $7,684 million, $7,281 million and $5,259 million for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. The year-to-date average loans held-for-sale were $13,039 million and $5,501 million for 2005 and 2004, respectively. These amounts are not included in the net charge-off rates.

(b)

Average consumer loans (excluding Card) held-for-sale were $14,620 million, $15,861 million, $13,534 million, $14,479 million and $19,818 million for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. The year-to-date average loans held-for-sale were $15,237 million and $20,492 million for 2005 and 2004, respectively. These amounts are not included in the net charge-off rates.

Page 30

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	6,935		$	7,320		$	7,493		$	7,090		$	7,443			(5	)%		(7	)%	$	7,320		$	7,995			(8	)%
Net Charge-Offs		(773	)		(816	)		(1,398	)		(865	)		(613	)		5			(26	)		(1,589	)		(1,325	)		(20	)
Provision for Loan Losses:
Provision Excluding Accounting Policy Conformity		636			431			681			835			285			48			123			1,067			447			139
Accounting Policy Conformity		—			—			525			560			—			NM			NM			—			—			NM
Total Provision for Loan Losses		636			431			1,206			1,395			285			48			123			1,067			447			139
Other		(4	)		—			19			(127	)(a)		(25	)		NM			84			(4	)		(27	)		85
Ending Balance	$	6,794		$	6,935		$	7,320		$	7,493		$	7,090			(2	)		(4	)	$	6,794		$	7,090			(4	)
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	488		$	492		$	541		$	768		$	805			(1	)		(39	)	$	492		$	814			(40	)
Provision for Lending-Related Commitments:
Provision Excluding Accounting Policy Conformity		(49	)		(4	)		(49	)		1			(37	)		NM			(32	)		(53	)		(46	)		(15	)
Accounting Policy Conformity		—			—			—			(227	)		—			NM			NM			—			—			NM
Total Provision for Lending-Related Commitments		(49	)		(4	)		(49	)		(226	)		(37	)		NM			(32	)		(53	)		(46	)		(15	)
Other		—			—			—			(1	)		—			NM			NM			—			—			NM
Ending Balance	$	439		$	488		$	492		$	541		$	768			(10	)		(43	)	$	439		$	768			(43	)
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset Specific	$	314		$	385		$	469		$	498		NA				(18	)		NM
Formula — Based (b)
Statistical Calculation		1,604			1,448			1,639			1,832		NA				11			NM
Adjustments to the Statistical Calculation		686			894			990			1,126		NA				(23	)		NM
Total Wholesale		2,604			2,727			3,098			3,456			3,506			(5	)		(26	)
Consumer
Formula — Based
Statistical Calculation		3,064			3,113			3,169			3,159		NA				(2	)		NM
Adjustments to the Statistical Calculation		1,126			1,095			1,053			878		NA				3			NM
Total Consumer		4,190			4,208			4,222			4,037			3,584			—			17
Total Allowance for Loan Losses		6,794			6,935			7,320			7,493			7,090			(2	)		(4	)
Allowance for Lending-Related Commitments		439			488			492			541			768			(10	)		(43	)
Total Allowance for Credit Losses	$	7,233		$	7,423		$	7,812		$	8,034		$	7,858			(3	)		(8	)
Wholesale Allowance for Loan Losses to Total Wholesale Loans (c)		1.98	%		2.11	%		2.43	%		2.76	%		2.74	%		(13	)bp		(76	)bp
Consumer Allowance for Loan Losses to Total Consumer Loans (d)		1.65			1.69			1.70			1.62			1.72			(4	)		(7	)
Allowance for Loan Losses to Total Loans (c) (d)		1.76			1.83			1.94			2.01			2.11			(7	)		(35	)
Allowance for Loan Losses to Total Nonperforming Loans (e)		287			283			268			248			219			400			6,800
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	971		$	1,191		$	1,547		$	1,841		$	1,382			(18	)%		(30	)%
Retail Financial Services		1,135			1,168			1,228			1,764			1,907			(3	)		(40	)
Card Services		3,055			3,040			2,994			2,273			1,677			—			82
Commercial Banking		1,431			1,312			1,322			1,350			1,219			9			17
Treasury & Securities Services		7			5			9			9			2			40			250
Asset and Wealth Management		195			214			216			241			114			(9	)		71
Corporate		—			5			4			15			789			NM			NM
Total	$	6,794		$	6,935		$	7,320		$	7,493		$	7,090			(2	)		(4	)

(a)	Related to the transfer of the allowance for accrued interest and fees on reported and securitized credit card loans.
(b)	During the second quarter 2005, the Firm refined its historical and market based inputs used for estimating the Formula Based component of the allowance. These refinements resulted in an increase to the Statistical Calculation and a decrease to the Adjustments to the Statistical Calculation, the component of the allowance that covers estimate imprecision.
(c)	Loans held-for-sale were $17,871 million, $8,154 million, $7,684 million, $7,281 million and $5,259 million at June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. These amounts are not included in the allowance coverage ratios.
(d)	Loans held-for-sale were $13,112 million, $16,532 million, $18,022 million, $12,816 million and $17,782 million at June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. These amounts are not included in the allowance coverage ratios.
(e)	Nonperforming loans held-for-sale were $28 million, $33 million, $15 million, $78 million and $155 million at June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. These amounts are not included in the allowance coverage ratios.

Page 31

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2004
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	(271	)	$	(356	)	$	(120	)	$	(148	)	$	(283	)		24	%		4	%	$	(627	)	$	(580	)		(8	)%
Commercial Banking		116			(8	)		17			10			22			NM			427			108			(56	)		NM
Treasury & Securities Services		2			(5	)		3			—			3			NM			(33	)		(3	)		4			NM
Asset & Wealth Management		(18	)		(7	)		(21	)		1			(4	)		(157	)		(350	)		(25	)		4			NM
Corporate		1			(4	)		—			(1	)		(27	)		NM			NM			(3	)		(110	)		97
Total Wholesale		(170	)		(380	)		(121	)		(138	)		(289	)		55			41			(550	)		(738	)		25
Retail Financial Services		95			92			78			239			175			3			(46	)		187			385			(51	)
Card Services		711			719			724			734			399			(1	)		78			1,430			800			79
Total Consumer		806			811			802			973			574			(1	)		40			1,617			1,185			36
Accounting Policy Conformity (a)		—			—			525			560			—			NM			NM			—			—			NM
Total Provision for Loan Losses		636			431			1,206			1,395			285			48			123			1,067			447			139
LENDING-RELATED COMMITMENTS
Investment Bank	$	(72	)	$	(10	)	$	(53	)	$	(3	)	$	(32	)		NM			(125	)	$	(82	)		(38	)		(116	)
Commercial Banking		26			2			4			4			(4	)		NM			NM			28			(12	)		NM
Treasury & Securities Services		—			2			—			—			—			NM			NM			2			—			NM
Asset & Wealth Management		(2	)		—			—			—			(1	)		NM			(100	)		(2	)		—			NM
Corporate		—			—			—			—			—			NM			NM			—			(1	)		NM
Total Wholesale		(48	)		(6	)		(49	)		1			(37	)		NM			(30	)		(54	)		(51	)		(6	)
Retail Financial Services		(1	)		2			—			—			—			NM			NM			1			5			(80	)
Card Services		—			—			—			—			—			NM			NM			—			—			NM
Total Consumer		(1	)		2			—			—			—			NM			NM			1			5			(80	)
Accounting Policy Conformity (b)		—			—			—			(227	)		—			NM			NM			—			—			NM
Total Provision for Lending-Related Commitments		(49	)		(4	)		(49	)		(226	)		(37	)		NM			(32	)		(53	)		(46	)		(15	)
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	(343	)	$	(366	)	$	(173	)	$	(151	)	$	(315	)		6			(9	)	$	(709	)	$	(618	)		(15	)
Commercial Banking		142			(6	)		21			14			18			NM			NM			136			(68	)		NM
Treasury & Securities Services		2			(3	)		3			—			3			NM			(33	)		(1	)		4			NM
Asset & Wealth Management		(20	)		(7	)		(21	)		1			(5	)		(186	)		(300	)		(27	)		4			NM
Corporate		1			(4	)		—			(1	)		(27	)		NM			NM			(3	)		(111	)		97
Total Wholesale		(218	)		(386	)		(170	)		(137	)		(326	)		44			33			(604	)		(789	)		23
Retail Financial Services		94			94			78			239			175			—			(46	)		188			390			(52	)
Card Services		711			719			724			734			399			(1	)		78			1,430			800			79
Total Consumer		805			813			802			973			574			(1	)		40			1,618			1,190			36
Accounting Policy Conformity		—			—			525			333			—			NM			NM			—			—			NM
Total Provision for Credit Losses		587			427			1,157			1,169			248			37			137			1,014			401			153
Securitized Credit Losses		930			917			1,011			928			1,358			1			(32	)		1,847			2,682			(31	)
Accounting Policy Conformity		—			—			(525	)		(333	)		—			NM			NM			—			—			NM
Managed Provision for Credit Losses	$	1,517		$	1,344		$	1,643		$	1,764		$	1,606			13			(6	)	$	2,861		$	3,083			(7	)

(a)	Reflects an increase of $721 million for both the fourth quarter and third quarter of 2004, as a result of the decertification of heritage Bank One seller’s interest in credit card securitizations, partially offset by reductions of $196 million and $161 million to conform methodologies in the fourth and third quarters of 2004, respectively.
(b)	Reflects a reduction of $227 million for the third quarter of 2004 to conform methodologies in the wholesale portfolio.

Page 32

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

													PRO FORMA												PRO FORMA
													COMBINED			2QTR 2005									COMBINED			YTD 2005
	2QTR			1QTR			4QTR			3QTR			2QTR			Change						Year-to-date						Change
	2005			2005			2004			2004			2004			1QTR 2005			2QTR 2004			2005			2004			2003
COMMON SHARES OUTSTANDING
Weighted-Average Basic Shares Outstanding		3,493.0			3,517.5			3,514.7			3,513.5			3,509.4			(1	)%		—	%		3,505.2			3,506.6			—	%
Weighted-Average Diluted Shares Outstanding		3,548.3			3,569.8			3,602.0			3,592.0			3,588.6			(1	)		(1	)		3,559.0			3,589.0			(1	)
Common Shares Outstanding — at Period End		3,514.0			3,525.3			3,556.2			3,564.1			3,559.0			—			(1	)		3,514.0			3,559.0			(1	)
Cash Dividends Declared per Share	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34			—			—		$	0.68		$	0.68			—
Book Value per Share		29.95			29.78			29.61			29.42			29.06			1			3			29.95			29.06			3
Dividend Payout		122	%		54	%		74	%		87	%		292	%		6,800	bp		(17,000	)bp		75	%		71	%		400	bp
SHARE PRICE
High	$	36.50		$	39.69		$	40.45		$	40.25		$	42.57			(8	)%		(14	)%	$	39.69		$	43.84			(9	)%
Low		33.35			34.32			36.32			35.50			34.62			(3	)		(4	)		33.35			34.62			(4	)
Close		35.32			34.60			39.01			39.73			38.77			2			(9	)		35.32			38.77			(9	)
STOCK REPURCHASE PROGRAM (b)
Aggregate Repurchases	$	593.7		$	1,315.6		$	599.8		$	137.9			NM								$	1,909.3			NM
Common Shares Repurchased		16.8			36.0			15.8			3.5			NM									52.8			NM
Average Purchase Price	$	35.32		$	36.57		$	38.01		$	39.42			NM								$	36.17			NM
CAPITAL RATIOS
Tier 1 Capital	$	69,779		$	69,435		$	68,621		$	69,309		$	67,850			—			3
Total Capital		96,086			96,378			96,807			96,666			92,916			—			3
Risk-Weighted Assets		848,394			811,822			791,373			803,464			790,701			5			7
Adjusted Average Assets		1,135,653			1,110,058			1,102,456			1,065,244			1,094,028			2			4
Tier 1 Capital Ratio		8.2	%		8.6	%		8.7	%		8.6	%		8.6	%		(40	)bp		(40	)bp
Total Capital Ratio		11.3			11.9			12.2			12.0			11.8			(60	)		(50	)
Tier 1 Leverage Ratio		6.1			6.3			6.2			6.5			6.2			(20	)		(10	)
INTANGIBLE ASSETS
Goodwill	$	43,537		$	43,440		$	43,203		$	42,947		$	43,016			—	%		1	%
Mortgage Servicing Rights		5,026			5,663			5,080			5,168			5,797			(11	)		(13	)
Purchased Credit Card Relationships		3,528			3,703			3,878			4,055			4,527			(5	)		(22	)
All Other Intangibles		5,319			5,514			5,726			5,945			5,873			(4	)		(9	)
Total Intangibles	$	57,410		$	58,320		$	57,887		$	58,115		$	59,213			(2	)		(3	)

(a)	Estimated
(b)	Excludes commission costs.

Page 33

JPMORGAN CHASE & CO.
Glossary of Terms

ACH:Automated Clearing House

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 by 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 by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification of the filing of bankruptcy, whichever is earlier.

Corporate:Includes Private Equity, Treasury, and corporate staff and other centrally managed expenses.

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 applicable for the period presented.

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:Noninterest expense as a percentage of total net 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 and accounting policy conformity adjustments.

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 34

JPMORGAN CHASE & CO.
Line of Business Metrics

Investment Banking

IB’s revenues are comprised of the following:

1. Investment banking feesincludes advisory, equity underwriting, bond underwriting and loan syndication fees.

2. Fixed income marketsincludes client and portfolio management revenue related to both market-making and proprietary risk-taking across global fixed income markets, including government and corporate debt, foreign exchange, interest rate and commodities markets.

3. Equities marketsincludes client and portfolio management revenue related to market-making and proprietary risk-taking across global equity products, including cash instruments, derivatives and convertibles.

4. Credit portfolio revenueincludes Net interest income, fees and loan sale activity for IB’s credit portfolio. Credit portfolio revenue also includes gains or losses on securities received as part of a loan restructuring, and changes in the credit valuation adjustment (“CVA”), which is the component of the fair value of a derivative that reflects the credit quality of the counterparty. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

Retail Financial Services

Description of selected business metrics within Home Finance:

1. Secondary marketinginvolves the sale of mortgage loans into the secondary market and risk management of this activity from the point of loan commitment to customers through loan closing and subsequent sale.

Home Finance’s origination channels are comprised of the following:

1. Retail– A mortgage banker employed by the Firm directly contacts borrowers who are buying or refinancing a home through a branch office, through the Internet or by phone. Borrowers are frequently referred to a mortgage banker by real estate brokers, home builders or other third parties.

2. Wholesale– A third-party mortgage broker refers loans to a mortgage banker at the Firm. Brokers are independent loan originators that specialize in finding and counseling borrowers but do not provide funding for loans.

3. Correspondent– Banks, thrifts, other mortgage banks and other financial institutions sell closed loans to the Firm.

4. Correspondent negotiated transactions (“CNT”)– Mid- to large-sized mortgage lenders, banks and bank-owned mortgage companies sell servicing to the Firm on an as-originated basis. These transactions supplement traditional production channels and provide growth opportunities in the servicing portfolio in stable and rising-rate periods.

Description of selected business metrics within Consumer & Small Business Banking:

1. Personal bankers– Retail branch office personnel who acquire, retain and expand new and existing customer relationships by assessing customer needs and recommending and selling appropriate banking products and services.

2. Investment sales representatives– Licensed retail branch sales personnel, assigned to support several branches, who assist with the sale of investment products including college planning accounts, mutual funds, annuities and retirement accounts.

Description of selected business metrics within Insurance:

1. Proprietary annuity salesrepresent annuity contracts marketed through and issued by subsidiaries of the Firm.

2. Insurance in force – direct/assumedincludes the aggregate face amount of insurance policies directly underwritten and assumed through reinsurance.

3. Insurance in force – retainedincludes the aggregate face amounts of insurance policies directly underwritten and assumed through reinsurance, after reduction for face amounts ceded to reinsurers.

Card Services

Description of selected business metrics within Card Services:

1. Charge volume– Represents the dollar amount of cardmember purchases, balance transfers and cash advance activity.

2. Net accounts opened– Includes originations, purchases and sales.

3. Merchant acquiring business– Represents an entity that processes payments for merchants. JPMorgan Chase is a majority owner of Paymentech, Inc. and a 50% owner of Chase Merchant Services.

4. Bank card volume– Represents the dollar amount of transactions processed for the merchants.

5. Total transactions– Represents the number of transactions and authorizations processed for the merchants.

Commercial Banking

Commercial Banking revenues are comprised of the following:

1. Lendingincorporates a variety of financing alternatives, such as term loans, revolving lines of credit and asset-based structures and leases, which are often secured by receivables, inventory, equipment or real estate.

2. Treasury servicesincorporates a broad range of products and services to help clients manage short-term liquidity through deposits and sweeps, and longer-term investment needs through money market accounts, certificates of deposit and mutual funds; manage working capital through lockbox, global trade, global clearing and commercial card products; and have ready access to information to manage their business through on-line reporting tools.

3. Investment bankingproducts provide clients with more sophisticated capital-raising alternatives, through loan syndications, investment-grade debt, asset-backed securities, private placements, high-yield bonds and equity underwriting, and balance sheet and risk management tools through foreign exchange, derivatives, M&A and advisory services.

Treasury & Securities Services

Treasury & Securities Servicesfirmwide metricsinclude certain TSS product revenues and liability balances reported in other lines of business for customers who are also customers of those lines of business. In order to capture the firmwide impact of TS and TSS products and revenues, management reviews firmwide metrics such as firmwide liability balances, firmwide revenue and firmwide overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.

Asset & Wealth Management

AWM’s client segments are comprised of the following:

1. ThePrivate bankaddresses every facet of wealth management for ultra-high-net-worth individuals and families worldwide, including investment management, capital markets and risk management, tax and estate planning, banking, capital raising and specialty wealth advisory services.

2. Retailprovides more than 2 million customers worldwide with investment management, retirement planning and administration, and brokerage services through third-party and direct distribution channels.

3. Institutionalserves more than 3,000 large and mid-size corporate and public institutions, endowments and foundations, and governments globally. AWM offers institutions comprehensive global investment services, including investment management across asset classes, pension analytics, asset-liability management, active risk budgeting and overlay strategies.

4. Private client servicesoffers high-net-worth individuals, families and business owners comprehensive wealth management solutions that include financial planning, personal trust, investment and banking products and services.

Page 35

APPENDIX

JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO OPERATING BASIS
(in millions, except per share and ratio data)

	SECOND QUARTER 2005
										Special Items (c)
	Reported			Trading			Credit			Merger			Litigation			Accounting			Tax Equivalent			Operating
	Results			Reclass (a)			Card (b)			Costs			Reserves			Policy Conformity			Adjustments (d)			Basis
REVENUE
Investment Banking Fees	$	961		$	—		$	—		$	—		$	—		$	—		$	—		$	961
Trading Revenue		387			198			—			—			—			—			—			585
Lending & Deposit Related Fees		851			—			—			—			—			—			—			851
Asset Management, Administration and Commissions		2,541			—			—			—			—			—			—			2,541
Securities / Private Equity Gains (Losses)		407			—			—			—			—			—			—			407
Mortgage Fees and Related Income		336			—			—			—			—			—			—			336
Credit Card Income		1,763			—			(728	)		—			—			—			—			1,035
Other Income		496			—			—			—			—			—			143			639
Noninterest Revenue		7,742			198			(728	)		—			—			—			143			7,355
Net Interest Income		5,001			(198	)		1,658			—			—			—			84			6,545
TOTAL NET REVENUE		12,743			—			930			—			—			—			227			13,900
Provision for Credit Losses		587			—			930			—			—			—						1,517
NONINTEREST EXPENSE
Compensation Expense		4,266			—			—			—			—			—			—			4,266
Occupancy Expense		580			—			—			—			—			—			—			580
Technology and Communications Expense		896			—			—			—			—			—			—			896
Professional & Outside Services		1,130			—			—			—			—			—			—			1,130
Marketing		537			—			—			—			—			—			—			537
Other Expense		954			—			—			—			—			—			—			954
Amortization of Intangibles		385			—			—			—			—			—			—			385
Total Noninterest Expense before Merger Costs and Litigation Reserve Charge		8,748			—			—			—			—			—			—			8,748
Merger Costs		279			—			—			(279	)		—			—			—			—
Litigation Reserve Charge		1,872			—			—			—			(1,872	)		—			—			—
TOTAL NONINTEREST EXPENSE		10,899			—			—			(279	)		(1,872	)		—			—			8,748
Income (Loss) before Income Tax Expense		1,257			—			—			279			1,872			—			227			3,635
Income Tax Expense (Benefit)		263			—			—			106			711			—			227			1,307
NET INCOME (LOSS)	$	994		$	—		$	—		$	173		$	1,161		$	—		$	—		$	2,328
FINANCIAL RATIOS
Diluted Earnings per Share	$	0.28		$	—		$	—		$	0.05		$	0.33		$	—		$	—		$	0.66
ROE		4	%		—	%		—	%		1	%		4	%		—	%		—	%		9	%
ROE-GW		6			—			—			1			8			—			—			15
ROA		0.34		NM			NM			NM			NM			NM			NM				0.75
Overhead Ratio		86		NM			NM			NM			NM			NM			NM				63
Effective Income Tax Rate		21		NM			NM				38			38		NM				100			36

(a)	The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results.
(b)	The impact of credit card securitizations affects Card Services. See page 19 for further information.
(c)	Special items are excluded from Operating earnings, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, are not indicative of trends), and do not provide meaningful comparisons with other periods. These items include Merger costs, significant litigation charges, charges to conform accounting policies and other items. Merger costs of $279 million reflects costs associated with the merger; significant litigation charges of $1.9 billion were taken in the second quarter of 2005.
(d)	For a description of the tax-equivalent adjustments, see the Operating Basis cover page.

Page 36

JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO OPERATING BASIS
(in millions, except per share and ratio data)

	FIRST QUARTER 2005
										Special Items (c)
	Reported			Trading			Credit			Merger			Litigation			Accounting			Tax Equivalent			Operating
	Results			Reclass (a)			Card (b)			Costs			Reserves			Policy Conformity			Adjustments (d)			Basis
REVENUE
Investment Banking Fees	$	993		$	—		$	—		$	—		$	—		$	—		$	—		$	993
Trading Revenue		1,859			328			—			—			—			—			—			2,187
Lending & Deposit Related Fees		820			—			—			—			—			—			—			820
Asset Management, Administration and Commissions		2,498			—			—			—			—			—			—			2,498
Securities / Private Equity Gains (Losses)		(45	)		—			—			—			—			—			—			(45	)
Mortgage Fees and Related Income		362			—			—			—			—			—			—			362
Credit Card Income		1,734			—			(815	)		—			—			—			—			919
Other Income		201			—			—			—			—			—			115			316
Noninterest Revenue		8,422			328			(815	)		—			—			—			115			8,050
Net Interest Income		5,225			(328	)		1,732			—			—			—			61			6,690
TOTAL NET REVENUE		13,647			—			917			—			—			—			176			14,740
Provision for Credit Losses		427			—			917			—			—			—			—			1,344
NONINTEREST EXPENSE
Compensation Expense		4,702			—			—			—			—			—			—			4,702
Occupancy Expense		525			—			—			—			—			—			—			525
Technology and Communications Expense		920			—			—			—			—			—			—			920
Professional & Outside Services		1,074			—			—			—			—			—			—			1,074
Marketing		483			—			—			—			—			—			—			483
Other Expense		805			—			—			—			—			—			—			805
Amortization of Intangibles		383			—			—			—			—			—			—			383
Total Noninterest Expense before Merger Costs and Litigation Reserve Charge		8,892			—			—			—			—			—			—			8,892
Merger Costs		145			—			—			(145	)		—			—			—			—
Litigation Reserve Charge		900			—			—			—			(900	)		—			—			—
TOTAL NONINTEREST EXPENSE		9,937			—			—			(145	)		(900	)		—			—			8,892
Income (Loss) before Income Tax Expense		3,283			—			—			145			900			—			176			4,504
Income Tax Expense (Benefit)		1,019			—			—			55			342			—			176			1,592
NET INCOME (LOSS)	$	2,264		$	—		$	—		$	90		$	558		$	—		$	—		$	2,912
FINANCIAL RATIOS
Diluted Earnings per Share	$	0.63		$	—		$	—		$	0.03		$	0.15		$	—		$	—		$	0.81
ROE		9	%		—	%		—	%		—	%		2	%		—	%		—	%		11	%
ROE-GW		15			—			—			1			3			—			—			19
ROA		0.79		NM			NM			NM			NM			NM			NM				0.96
Overhead Ratio		73		NM			NM			NM			NM			NM			NM				60
Effective Income Tax Rate		31		NM			NM				38			38		NM				100			35

(a)	The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results.
(b)	The impact of credit card securitizations affects Card Services. See page 19 for further information.
(c)	Special items are excluded from Operating earnings, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, are not indicative of trends), and do not provide meaningful comparisons with other periods. These items include merger costs, significant litigation charges, charges to conform accounting policies and other items. Merger costs of $145 million reflects costs associated with the merger; significant litigation charges of $900 million were taken in the first quarter of 2005.
(d)	For a description of the tax-equivalent adjustments, see the Operating Basis cover page.

Page 37

JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO OPERATING BASIS
(in millions, except per share and ratio data)

	FOURTH QUARTER 2004
										Special Items (c)
	Reported			Trading			Credit			Merger			Litigation			Accounting			Tax Equivalent			Operating
	Results			Reclass (a)			Card (b)			Costs			Reserves			Policy Conformity			Adjustments (d)			Basis
REVENUE
Investment Banking Fees	$	1,073		$	—		$	—		$	—		$	—		$	—		$	—		$	1,073
Trading Revenue		611			511			—			—			—			—			—			1,122
Lending & Deposit Related Fees		903			—			—			—			—			—			—			903
Asset Management, Administration and Commissions		2,330			—			—			—			—			—			—			2,330
Securities / Private Equity Gains (Losses)		569			—			—			—			—			—			—			569
Mortgage Fees and Related Income		85			—			—			—			—			—			—			85
Credit Card Income		1,822			—			(786	)		—			—			—			—			1,036
Other Income		228			—			1			—			—			—			178			407
Noninterest Revenue		7,621			511			(785	)		—			—			—			178			7,525
Net Interest Income		5,329			(511	)		1,796			—			—			—			10			6,624
TOTAL NET REVENUE		12,950			—			1,011			—			—			—			188			14,149
Provision for Credit Losses		1,157			—			1,011			—			—			(525	)		—			1,643
NONINTEREST EXPENSE
Compensation Expense		4,211			—			—			—			—			—			—			4,211
Occupancy Expense		609			—			—			—			—			—			—			609
Technology and Communications Expense		1,051			—			—			—			—			—			—			1,051
Professional & Outside Services		1,191			—			—			—			—			—			—			1,191
Marketing		428			—			—			—			—			—			—			428
Other Expense		981			—			—			—			—			—			—			981
Amortization of Intangibles		392			—			—			—			—			—			—			392
Total Noninterest Expense before Merger Costs and		8,863			—			—			—			—			—			—			8,863
Litigation Reserve Charge
Merger Costs		523			—			—			(523	)		—			—			—			—
Litigation Reserve Charge		—			—			—			—			—			—			—			—
TOTAL NONINTEREST EXPENSE		9,386			—			—			(523	)		—			—			—			8,863
Income (Loss) before Income Tax Expense		2,407			—			—			523			—			525			188			3,643
Income Tax Expense (Benefit)		741			—			—			199			—			199			188			1,327
NET INCOME (LOSS)	$	1,666		$	—		$	—		$	324		$	—		$	326		$	—		$	2,316
FINANCIAL RATIOS
Diluted Earnings per Share	$	0.46		$	—		$	—		$	0.09		$	—		$	0.09		$	—		$	0.64
ROE		6	%		—	%		—	%		1	%		—	%		2	%		—	%		9	%
ROE-GW		11			—			—			2			—			2			—			15
ROA		0.57		NM			NM			NM			NM			NM			NM				0.75
Overhead Ratio		72		NM			NM			NM			NM			NM			NM				63
Effective Income Tax Rate		31		NM			NM				38		NM				38			100			36

(a)	The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results.
(b)	The impact of credit card securitizations affects Card Services. See page 19 for further information.
(c)	Special items are excluded from Operating earnings, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, are not indicative of trends), and do not provide meaningful comparisons with other periods. These items include merger costs, significant litigation charges, charges to conform accounting policies and other items. Merger costs of $523 million reflects costs associated with the merger.
(d)	For a description of the tax-equivalent adjustments, see the Operating Basis cover page.

Page 38

JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO OPERATING BASIS
(in millions, except per share and ratio data)

	THIRD QUARTER 2004
										Special Items (c)
	Reported			Trading			Credit			Merger			Litigation			Accounting			Tax Equivalent			Operating
	Results			Reclass (a)			Card (b)			Costs			Reserves			Policy Conformity			Adjustments (d)			Basis
REVENUE
Investment Banking Fees	$	879		$	—		$	—		$	—		$	—		$	—		$	—		$	879
Trading Revenue		408			424			—			—			—			—			—			832
Lending & Deposit Related Fees		943			—			—			—			—			—			—			943
Asset Management, Administration and Commissions		2,185			—			—			—			—			—			—			2,185
Securities / Private Equity Gains (Losses)		413			—			—			—			—			—			—			413
Mortgage Fees and Related Income		233			—			—			—			—			—			—			233
Credit Card Income		1,782			—			(848	)		—			—			—			—			934
Other Income		210			—			(3	)		—			—			118			64			389
Noninterest Revenue		7,053			424			(851	)		—			—			118			64			6,808
Net Interest Income		5,452			(424	)		1,779			—			—			—			(36	)		6,771
TOTAL NET REVENUE		12,505			—			928			—			—			118			28			13,579
Provision for Credit Losses		1,169			—			928			—			—			(333	)		—			1,764
NONINTEREST EXPENSE
Compensation Expense		4,050			—			—			—			—			—			—			4,050
Occupancy Expense		604			—			—			—			—			—			—			604
Technology and Communications Expense		1,046			—			—			—			—			—			—			1,046
Professional & Outside Services		1,103			—			—			—			—			—			—			1,103
Marketing		506			—			—			—			—			—			—			506
Other Expense		920			—			—			—			—			—			—			920
Amortization of Intangibles		396			—			—			—			—			—			—			396
Total Noninterest Expense before Merger Costs and		8,625			—			—			—			—			—			—			8,625
Litigation Reserve Charge
Merger Costs		752			—			—			(752	)		—			—			—			—
Litigation Reserve Charge		—			—			—			—			—			—			—			—
TOTAL NONINTEREST EXPENSE		9,377			—			—			(752	)		—			—			—			8,625
Income (Loss) before Income Tax Expense		1,959			—			—			752			—			451			28			3,190
Income Tax Expense (Benefit)		541			—			—			290			—			172			28			1,031
NET INCOME (LOSS)	$	1,418		$	—		$	—		$	462		$	—		$	279		$	—		$	2,159
FINANCIAL RATIOS
Diluted Earnings per Share	$	0.39		$	—		$	—		$	0.13		$	—		$	0.08		$	—		$	0.60
ROE		5	%		—	%		—	%		2	%		—	%		1	%		—	%		8	%
ROE-GW		9			—			—			3			—			2			—			14
ROA		0.50		NM			NM			NM			NM			NM			NM				0.72
Overhead Ratio		75		NM			NM			NM			NM			NM			NM				64
Effective Income Tax Rate		28		NM			NM				39		NM				38			100			32

(a)	The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results.
(b)	The impact of credit card securitizations affects Card Services. See page 19 for further information.
(c)	Special items are excluded from Operating earnings, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, are not indicative of trends), and do not provide meaningful comparisons with other periods. These items include merger costs, significant litigation charges, charges to conform accounting policies and other items. Merger costs of $752 million reflects costs associated with the merger.
(d)	For a description of the tax-equivalent adjustments, see the Operating Basis cover page.

Page 39

JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO OPERATING BASIS
(in millions, except per share and ratio data)

	SECOND QUARTER 2004
										Special Items (c)
	Reported			Trading			Credit			Merger			Litigation			Accounting			Tax Equivalent			Operating
	Results			Reclass (a)			Card (b)			Costs			Reserves			Policy Conformity			Adjustments (d)			Basis
REVENUE
Investment Banking Fees	$	939		$	—		$	—		$	—		$	—		$	—		$	—		$	939
Trading Revenue		968			439			—			—			—			—			—			1,407
Lending & Deposit Related Fees		957			—			—			—			—			—			—			957
Asset Management, Administration and Commissions		2,302			—			—			—			—			—			—			2,302
Securities / Private Equity Gains (Losses)		403			—			—			—			—			—			—			403
Mortgage Fees and Related Income		316			—			—			—			—			—			—			316
Credit Card Income		1,686			—			(711	)		—			—			—			—			975
Other Income		434			—			(45	)		—			—			—			170			559
Noninterest Revenue		8,005			439			(756	)		—			—			—			170			7,858
Net Interest Income		5,274			(439	)		2,114			—			—			—			(31	)		6,918
TOTAL NET REVENUE		13,279			—			1,358			—			—			—			139			14,776
Provision for Credit Losses		248			—			1,358			—			—			—			—			1,606
NONINTEREST EXPENSE
Compensation Expense		4,227			—			—			—			—			—			—			4,227
Occupancy Expense		596			—			—			—			—			—			—			596
Technology and Communications Expense		960			—			—			—			—			—			—			960
Professional & Outside Services		1,106			—			—			—			—			—			—			1,106
Marketing		521			—			—			—			—			—			—			521
Other Expense		1,037			—			—			—			—			—			—			1,037
Amortization of Intangibles		392			—			—			—			—			—			—			392
Total Noninterest Expense before Merger Costs and		8,839			—			—			—			—			—			—			8,839
Litigation Reserve Charge
Merger Costs		90			—			—			(90	)		—			—			—			—
Litigation Reserve Charge		3,700			—			—			—			(3,700	)		—			—			—
TOTAL NONINTEREST EXPENSE		12,629			—			—			(90	)		(3,700	)		—			—			8,839
Income (Loss) before Income Tax Expense		402			—			—			90			3,700			—			139			4,331
Income Tax Expense (Benefit)		(31	)		—			—			30			1,406			—			139			1,544
NET INCOME (LOSS)	$	433		$	—		$	—		$	60		$	2,294		$	—		$	—		$	2,787
FINANCIAL RATIOS
Diluted Earnings per Share	$	0.12		$	—		$	—		$	0.02		$	0.63		$	—		$	—		$	0.77
ROE		2	%		—	%		—	%		—	%		9	%		—	%		—	%		11	%
ROE-GW		3			—			—			—			15			—			—			18
ROA		0.15		NM			NM			NM			NM			NM			NM				0.92
Overhead Ratio		95		NM			NM			NM			NM			NM			NM				60
Effective Income Tax Rate		8		NM			NM				33			38		NM				100			36

(a)	The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results.
(b)	The impact of credit card securitizations affects Card Services. See page 19 for further information.
(c)	Special items are excluded from Operating earnings, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, are not indicative of trends), and do not provide meaningful comparisons with other periods. These items include merger costs, significant litigation charges, charges to conform accounting policies and other items. Merger costs of $90 million reflects costs associated with the merger; significant litigation charges of $3.7 billion were taken in the second quarter of 2004.
(d)	For a description of the tax-equivalent adjustments, see the Operating Basis cover page.

Page 40

JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO OPERATING BASIS
(in millions, except per share and ratio data)

	YEAR-TO-DATE 2005
										Special Items (c)
	Reported			Trading			Credit			Merger			Litigation			Accounting			Tax Equivalent			Operating
	Results			Reclass (a)			Card (b)			Costs			Reserves			Policy Conformity			Adjustments (d)			Basis
REVENUE
Investment Banking Fees	$	1,954		$	—		$	—		$	—		$	—		$	—		$	—		$	1,954
Trading Revenue		2,246			526			—			—			—			—			—			2,772
Lending & Deposit Related Fees		1,671			—			—			—			—			—			—			1,671
Asset Management, Administration and Commissions		5,039			—			—			—			—			—			—			5,039
Securities / Private Equity Gains (Losses)		362			—			—			—			—			—			—			362
Mortgage Fees and Related Income		698			—			—			—			—			—			—			698
Credit Card Income		3,497			—			(1,543	)		—			—			—			—			1,954
Other Income		697			—			—			—			—			—			258			955
Noninterest Revenue		16,164			526			(1,543	)		—			—			—			258			15,405
Net Interest Income		10,226			(526	)		3,390			—			—			—			145			13,235
TOTAL NET REVENUE		26,390			—			1,847			—			—			—			403			28,640
Provision for Credit Losses		1,014			—			1,847			—			—			—			—			2,861
NONINTEREST EXPENSE
Compensation Expense		8,968			—			—			—			—			—			—			8,968
Occupancy Expense		1,105			—			—			—			—			—			—			1,105
Technology and Communications Expense		1,816			—			—			—			—			—			—			1,816
Professional & Outside Services		2,204			—			—			—			—			—			—			2,204
Marketing		1,020			—			—			—			—			—			—			1,020
Other Expense		1,759			—			—			—			—			—			—			1,759
Amortization of Intangibles		768			—			—			—			—			—			—			768
Total Noninterest Expense before Merger Costs and		17,640			—			—			—			—			—			—			17,640
Litigation Reserve Charge
Merger Costs		424			—			—			(424	)		—			—			—			—
Litigation Reserve Charge		2,772			—			—			—			(2,772	)		—			—			—
TOTAL NONINTEREST EXPENSE		20,836			—			—			(424	)		(2,772	)		—			—			17,640
Income (Loss) before Income Tax Expense		4,540			—			—			424			2,772			—			403			8,139
Income Tax Expense (Benefit)		1,282			—			—			161			1,053			—			403			2,899
NET INCOME (LOSS)	$	3,258		$	—		$	—		$	263		$	1,719		$	—		$	—		$	5,240
FINANCIAL RATIOS
Diluted Earnings per Share	$	0.91		$	—		$	—		$	0.08		$	0.48		$	—		$	—		$	1.47
ROE		6	%		—	%		—	%		1	%		3	%		—	%		—	%		10	%
ROE-GW		11			—			—			1			5			—			—			17
ROA		0.56		NM			NM			NM			NM			NM			NM				0.85
Overhead Ratio		79		NM			NM			NM			NM			NM			NM				62
Effective Income Tax Rate		28		NM			NM				38			38		NM				100			36

(a)	The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results.
(b)	The impact of credit card securitizations affects Card Services. See page 19 for further information.
(c)	Special items are excluded from Operating earnings, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, are not indicative of trends), and do not provide meaningful comparisons with other periods. These items include Merger costs, significant litigation charges, charges to conform accounting policies and other items. Merger costs of $424 million reflects costs associated with the merger; significant litigation charges of $2.8 billion were taken in the first six months of 2005.
(d)	For a description of the tax-equivalent adjustments, see the Operating Basis cover page.

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JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO OPERATING BASIS
(in millions, except per share and ratio data)

	YEAR-TO-DATE 2004
										Special Items (c)
	Reported			Trading			Credit			Merger			Litigation			Accounting			Tax Equivalent			Operating
	Results			Reclass (a)			Card (b)			Costs			Reserves			Policy Conformity			Adjustments (d)			Basis
REVENUE
Investment Banking Fees	$	1,683		$	—		$	—		$	—		$	—		$	—		$	—		$	1,683
Trading Revenue		2,745			1,015			—			—			—			—			—			3,760
Lending & Deposit Related Fees		1,898			—			—			—			—			—			—			1,898
Asset Management, Administration and Commissions		4,662			—			—			—			—			—			—			4,662
Securities / Private Equity Gains (Losses)		990			—			—			—			—			—			—			990
Mortgage Fees and Related Income		509			—			—			—			—			—			—			509
Credit Card Income		3,242			—			(1,460	)		—			—			—			—			1,782
Other Income		772			—			(84	)		—			—			—			330			1,018
Noninterest Revenue		16,501			1,015			(1,544	)		—			—			—			330			16,302
Net Interest Income		10,585			(1,015	)		4,226			—			—			—			(66	)		13,730
TOTAL NET REVENUE		27,086			—			2,682			—			—			—			264			30,032
Provision for Credit Losses		401			—			2,682			—			—			—			—			3,083
NONINTEREST EXPENSE
Compensation Expense		8,794			—			—			—			—			—			—			8,794
Occupancy Expense		1,190			—			—			—			—			—			—			1,190
Technology and Communications Expense		1,949			—			—			—			—			—			—			1,949
Professional & Outside Services		2,303			—			—			—			—			—			—			2,303
Marketing		1,010			—			—			—			—			—			—			1,010
Other Expense		1,922			—			—			—			—			—			—			1,922
Amortization of Intangibles		783			—			—			—			—			—			—			783
Total Noninterest Expense before Merger Costs and		17,951			—			—			—			—			—			—			17,951
Litigation Reserve Charge
Merger Costs		90			—			—			(90	)		—			—			—			—
Litigation Reserve Charge		3,700			—			—			—			(3,700	)		—			—			—
TOTAL NONINTEREST EXPENSE		21,741			—			—			(90	)		(3,700	)		—			—			17,951
Income (Loss) before Income Tax Expense		4,944			—			—			90			3,700			—			264			8,998
Income Tax Expense (Benefit)		1,484			—			—			30			1,406			—			264			3,184
NET INCOME (LOSS)	$	3,460		$	—		$	—		$	60		$	2,294		$	—		$	—		$	5,814
FINANCIAL RATIOS
Diluted Earnings per Share	$	0.96		$	—		$	—		$	0.02		$	0.63		$	—		$	—		$	1.61
ROE		7	%		—	%		—	%		—	%		4	%		—	%		—	%		11	%
ROE-GW		11			—			—			—			8			—			—			19
ROA		0.61		NM			NM			NM			NM			NM			NM				0.97
Overhead Ratio		80		NM			NM			NM			NM			NM			NM				60
Effective Income Tax Rate		30		NM			NM				33			38		NM				100			35

(a)	The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results.
(b)	The impact of credit card securitizations affects Card Services. See page 19 for further information.
(c)	Special items are excluded from Operating earnings, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, are not indicative of trends), and do not provide meaningful comparisons with other periods. These items include Merger costs, significant litigation charges, charges to conform accounting policies and other items. Merger costs of $90 million reflects costs associated with the merger; significant litigation charges of $3.7 billion were taken in the first six months of 2004.
(d)	For a description of the tax-equivalent adjustments, see the Operating Basis cover page.

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