JPMorgan Chase & Co. (JPM) 8-K Record Earnings Per Share of $4.38

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2007

JPMORGAN CHASE & CO.
TABLE OF CONTENTS

	Page
Consolidated Results
Consolidated Financial Highlights		2
Statements of Income		3
Consolidated Balance Sheets		4
Condensed Average Balance Sheets and Annualized Yields		5
Reconciliation from Reported to Managed Summary		6
Business Detail
Line of Business Financial Highlights — Managed Basis		7
Investment Bank		8
Retail Financial Services		10
Card Services — Managed Basis		14
Commercial Banking		17
Treasury & Securities Services		19
Asset Management		21
Corporate		24
Credit-Related Information		26
Supplemental Detail
Capital		31
Glossary of Terms		32

Page 1

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
SELECTED INCOME STATEMENT DATA
Total Net Revenue (a)	$	17,384		$	16,112		$	18,908		$	18,968		$	16,193			8	%		7	%	$	71,372		$	61,999			15	%
Provision for Credit Losses		2,542			1,785			1,529			1,008			1,134			42			124			6,864			3,270			110
Total Noninterest Expense		10,720			9,327			11,028			10,628			9,885			15			8			41,703			38,843			7
Income from Continuing Operations (after-tax)		2,971			3,373			4,234			4,787			3,906			(12	)		(24	)		15,365			13,649			13
Income from Discontinued Operations (b)		–			–			–			–			620			–		NM				–			795		NM
Net Income		2,971			3,373			4,234			4,787			4,526			(12	)		(34	)		15,365			14,444			6
PER COMMON SHARE:
Basic Earnings
Income from Continuing Operations	$	0.88		$	1.00		$	1.24		$	1.38		$	1.13			(12	)		(22	)	$	4.51		$	3.93			15
Net Income		0.88			1.00			1.24			1.38			1.31			(12	)		(33	)		4.51			4.16			8
Diluted Earnings
Income from Continuing Operations	$	0.86		$	0.97		$	1.20		$	1.34		$	1.09			(11	)		(21	)	$	4.38		$	3.82			15
Net Income		0.86			0.97			1.20			1.34			1.26			(11	)		(32	)		4.38			4.04			8
Cash Dividends Declared		0.38			0.38			0.38			0.34			0.34			–			12			1.48			1.36			9
Book Value		36.59			35.72			35.08			34.45			33.45			2			9			36.59			33.45			9
Closing Share Price		43.65			45.82			48.45			48.38			48.30			(5	)		(10	)		43.65			48.30			(10	)
Market Capitalization		146,986			153,901			164,659			165,280			167,199			(4	)		(12	)		146,986			167,199			(12	)
COMMON SHARES OUTSTANDING:
Weighted-Average Diluted Shares Outstanding		3,471.8	#		3,477.7	#		3,521.6	#		3,559.5	#		3,578.6	#		–			(3	)		3,507.6	#		3,573.9	#		(2	)
Common Shares Outstanding at Period-end		3,367.4			3,358.8			3,398.5			3,416.3			3,461.7			–			(3	)		3,367.4			3,461.7			(3	)
FINANCIAL RATIOS: (c)
Income from Continuing Operations:
Return on Common Equity (“ROE”)		10	%		11	%		14	%		17	%		14	%								13	%		12	%
Return on Equity-Goodwill (“ROE-GW”) (d)		15			18			23			27			22									21			20
Return on Assets (“ROA”) (e)		0.77			0.91			1.19			1.41			1.14									1.06			1.04
Net Income:
ROE		10			11			14			17			16									13			13
ROE-GW (d)		15			18			23			27			26									21			22
ROA		0.77			0.91			1.19			1.41			1.32									1.06			1.10
CAPITAL RATIOS:
Tier 1 Capital Ratio		8.4	(g)		8.4			8.4			8.5			8.7
Total Capital Ratio		12.6	(g)		12.5			12.0			11.8			12.3
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,562,147		$	1,479,575		$	1,458,042		$	1,408,918		$	1,351,520			6			16		$	1,562,147		$	1,351,520			16
Wholesale Loans		213,076			197,728			181,968			168,194			183,742			8			16			213,076			183,742			16
Consumer Loans		306,298			288,592			283,069			281,571			299,385			6			2			306,298			299,385			2
Deposits		740,728			678,091			651,370			626,428			638,788			9			16			740,728			638,788			16
Common Stockholders’ Equity		123,221			119,978			119,211			117,704			115,790			3			6			123,221			115,790			6
Headcount		180,667	#		179,847	#		179,664	#		176,314	#		174,360	#		–			4			180,667	#		174,360	#		4
LINE OF BUSINESS NET INCOME
Investment Bank	$	124		$	296		$	1,179		$	1,540		$	1,009			(58	)		(88	)	$	3,139		$	3,674			(15	)
Retail Financial Services		752			639			785			859			718			18			5			3,035			3,213			(6	)
Card Services		609			786			759			765			719			(23	)		(15	)		2,919			3,206			(9	)
Commercial Banking		288			258			284			304			256			12			13			1,134			1,010			12
Treasury & Securities Services		422			360			352			263			256			17			65			1,397			1,090			28
Asset Management		527			521			493			425			407			1			29			1,966			1,409			40
Corporate (f)		249			513			382			631			1,161			(51	)		(79	)		1,775			842			111
Net Income	$	2,971		$	3,373		$	4,234		$	4,787		$	4,526			(12	)		(34	)	$	15,365		$	14,444			6

(a)	The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see Note 3 of the Firm’s September 30, 2007, Form 10-Q.
(b)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses are reported as discontinued operations for each 2006 period.
(c)	Quarterly ratios are based upon annualized amounts.
(d)	Income from continuing operations and 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 also utilizes this measure to facilitate comparisons to competitors.
(e)	Income from continuing operations divided by Total average assets less average assets of discontinued operations held-for-sale.
(f)	Included the after-tax impact of discontinued operations, material litigation actions, tax audit benefits and merger costs. See Corporate Financial Highlights for additional details.
(g)	Estimated.

Page 2

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
REVENUE
Investment Banking Fees	$	1,662		$	1,336		$	1,898		$	1,739		$	1,565			24	%		6	%	$	6,635		$	5,520			20	%
Principal Transactions (a) (b)		165			650			3,713			4,487			2,591			(75	)		(94	)		9,015			10,778			(16	)
Lending & Deposit Related Fees		1,066			1,026			951			895			895			4			19			3,938			3,468			14
Asset Management, Administration and Commissions		3,896			3,663			3,611			3,186			3,173			6			23			14,356			11,855			21
Securities Gains (Losses)		148			237			(223	)		2			35			(38	)		323			164			(543	)	NM
Mortgage Fees and Related Income (c)		898			221			523			476			75			306		NM				2,118			591			258
Credit Card Income		1,857			1,777			1,714			1,563			1,645			5			13			6,911			6,913			–
Other Income		469			289			553			518			522			62			(10	)		1,829			2,175			(16	)
Noninterest Revenue		10,161			9,199			12,740			12,866			10,501			10			(3	)		44,966			40,757			10
Interest Income (b)		18,619			18,806			17,342			16,620			16,097			(1	)		16			71,387			59,107			21
Interest Expense		11,396			11,893			11,174			10,518			10,405			(4	)		10			44,981			37,865			19
Net Interest Income		7,223			6,913			6,168			6,102			5,692			4			27			26,406			21,242			24
TOTAL NET REVENUE		17,384			16,112			18,908			18,968			16,193			8			7			71,372			61,999			15
Provision for Credit Losses		2,542			1,785			1,529			1,008			1,134			42			124			6,864			3,270			110
NONINTEREST EXPENSE
Compensation Expense		5,469			4,677			6,309			6,234			4,985			17			10			22,689			21,191			7
Occupancy Expense		659			657			652			640			625			–			5			2,608			2,335			12
Technology, Communications and Equipment Expense		986			950			921			922			997			4			(1	)		3,779			3,653			3
Professional & Outside Services		1,421			1,260			1,259			1,200			1,246			13			14			5,140			4,450			16
Marketing		570			561			457			482			614			2			(7	)		2,070			2,209			(6	)
Other Expense (d)		1,254			812			1,013			735			948			54			32			3,814			3,272			17
Amortization of Intangibles		339			349			353			353			370			(3	)		(8	)		1,394			1,428			(2	)
Merger Costs		22			61			64			62			100			(64	)		(78	)		209			305			(31	)
TOTAL NONINTEREST EXPENSE		10,720			9,327			11,028			10,628			9,885			15			8			41,703			38,843			7
Income from Continuing Operations before Income Tax Expense		4,122			5,000			6,351			7,332			5,174			(18	)		(20	)		22,805			19,886			15
Income Tax Expense		1,151			1,627			2,117			2,545			1,268			(29	)		(9	)		7,440			6,237			19
Income from Continuing Operations (after-tax)		2,971			3,373			4,234			4,787			3,906			(12	)		(24	)		15,365			13,649			13
Income from Discontinued Operations(e)		—			—			—			—			620			–		NM				—			795		NM
NET INCOME	$	2,971		$	3,373		$	4,234		$	4,787		$	4,526			(12	)		(34	)	$	15,365		$	14,444			6
DILUTED EARNINGS PER SHARE
Income from Continuing Operations (after-tax)	$	0.86		$	0.97		$	1.20		$	1.34		$	1.09			(11	)		(21	)	$	4.38		$	3.82			15
Income from Discontinued Operations (e)		–			–			–			–			0.17			–		NM				–			0.22		NM
Net Income	$	0.86		$	0.97		$	1.20		$	1.34		$	1.26			(11	)		(32	)	$	4.38		$	4.04			8
FINANCIAL RATIOS
Income from Continuing Operations:
ROE		10	%		11	%		14	%		17	%		14	%								13	%		12	%
ROE-GW		15			18			23			27			22									21			20
ROA		0.77			0.91			1.19			1.41			1.14									1.06			1.04
Net Income:
ROE		10			11			14			17			16									13			13
ROE-GW		15			18			23			27			26									21			22
ROA		0.77			0.91			1.19			1.41			1.32									1.06			1.10
Effective Income Tax Rate (f)		28			33			33			35			25									33			31
Overhead Ratio		62			58			58			56			61									58			63
EXCLUDING IMPACT OF MERGER COSTS (g)
Income from Continuing Operations	$	2,971		$	3,373		$	4,234		$	4,787		$	3,906			(12	)		(24	)	$	15,365		$	13,649			13
Less Merger Costs (after-tax)		14			38			40			38			62			(63	)		(77	)		130			189			(31	)
Income from Continuing Operations Excluding Merger Costs	$	2,985		$	3,411		$	4,274		$	4,825		$	3,968			(12	)		(25	)	$	15,495		$	13,838			12
Diluted Per Share:
Income from Continuing Operations	$	0.86		$	0.97		$	1.20		$	1.34		$	1.09			(11	)		(21	)	$	4.38		$	3.82			15
Less Merger Costs (after-tax)		–			0.01			0.01			0.01			0.02		NM			NM				0.04			0.05			(20	)
Income from Continuing Operations Excluding Merger Costs	$	0.86		$	0.98		$	1.21		$	1.35		$	1.11			(12	)		(23	)	$	4.42		$	3.87			14

(a)	The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see Note 3 of the Firm’s September 30, 2007, Form 10-Q.
(b)	For certain trading-related positions, amounts have been revised between Principal transactions revenue and Interest income; there is no impact to Net revenue as a result of these reclassifications.
(c)	The Firm adopted SFAS 159 in the first quarter of 2007. As a result, certain loan origination costs have been classified as expense (previously netted against revenue) for the current-year quarters and full year 2007.
(d)	Insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material legal proceedings were $137 million for the three months ended December 31, 2006. Insurance recoveries were $512 million for full year 2006.
(e)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses were reported as discontinued operations for each 2006 period.
(f)	Based on Income from continuing operations.
(g)	Income from continuing operations excluding merger costs, a non-GAAP financial measure, is used by the Firm to facilitate comparison of results against the Firm’s ongoing operations and with other companies’ U.S. GAAP financial statements.

Page 3

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

																Dec 31, 2007
																Change
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Dec 31
	2007			2007			2007			2007			2006			2007			2006
ASSETS
Cash and Due from Banks	$	40,144		$	32,766		$	35,449		$	31,836		$	40,412			23	%		(1	)%
Deposits with Banks		11,466			26,714			41,736			30,973			13,547			(57	)		(15	)
Federal Funds Sold and Securities Purchased under Resale Agreements		170,897			135,589			125,930			144,306			140,524			26			22
Securities Borrowed		84,184			84,697			88,360			84,800			73,688			(1	)		14
Trading Assets:
Debt and Equity Instruments		414,273			389,119			391,508			373,684			310,137			6			34
Derivative Receivables		77,136			64,592			59,038			49,647			55,601			19			39
Securities		85,450			97,706			95,984			97,029			91,975			(13	)		(7	)
Loans (Net of Allowance for Loan Losses)		510,140			478,207			457,404			442,465			475,848			7			7
Accrued Interest and Accounts Receivable		24,823			26,401			26,716			23,663			22,891			(6	)		8
Premises and Equipment		9,319			8,892			9,044			8,728			8,735			5			7
Goodwill		45,270			45,335			45,254			45,063			45,186			–			–
Other Intangible Assets:
Mortgage Servicing Rights		8,632			9,114			9,499			7,937			7,546			(5	)		14
Purchased Credit Card Relationships		2,303			2,427			2,591			2,758			2,935			(5	)		(22	)
All Other Intangibles		3,796			3,959			4,103			4,205			4,371			(4	)		(13	)
Other Assets		74,314			74,057			65,426			61,824			58,124			–			28
TOTAL ASSETS	$	1,562,147		$	1,479,575		$	1,458,042		$	1,408,918		$	1,351,520			6			16
LIABILITIES
Deposits:
U.S. Offices:
Noninterest-Bearing	$	129,406		$	115,036		$	120,470		$	123,942		$	132,781			12			(3	)
Interest-Bearing		376,194			354,459			342,079			342,368			337,812			6			11
Non-U.S. Offices:
Noninterest-Bearing		6,342			6,559			5,919			8,104			7,662			(3	)		(17	)
Interest-Bearing		228,786			202,037			182,902			152,014			160,533			13			43
Total Deposits		740,728			678,091			651,370			626,428			638,788			9			16
Federal Funds Purchased and Securities Sold under Repurchase Agreements		154,398			178,767			205,961			218,917			162,173			(14	)		(5	)
Commercial Paper		49,596			33,978			25,116			25,354			18,849			46			163
Other Borrowed Funds		28,835			31,154			29,263			19,871			18,053			(7	)		60
Trading Liabilities:
Debt and Equity Instruments		89,162			80,748			93,969			94,309			90,488			10			(1	)
Derivative Payables		68,705			68,426			61,396			50,316			57,469			–			20
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		94,476			86,524			84,785			87,603			88,096			9			7
Beneficial Interests Issued by Consolidated VIEs		14,016			13,283			14,808			13,109			16,184			6			(13	)
Long-Term Debt		183,862			173,696			159,493			143,274			133,421			6			38
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		15,148			14,930			12,670			12,033			12,209			1			24
TOTAL LIABILITIES		1,438,926			1,359,597			1,338,831			1,291,214			1,235,730			6			16
STOCKHOLDERS’ EQUITY
Common Stock		3,658			3,658			3,658			3,658			3,658			–			–
Capital Surplus		78,597			78,295			78,020			77,760			77,807			–			1
Retained Earnings (a)		54,715			53,064			51,011			48,105			43,600			3			25
Accumulated Other Comprehensive Income (Loss)		(917	)		(1,830	)		(2,080	)		(1,482	)		(1,557	)		50			41
Treasury Stock, at Cost		(12,832	)		(13,209	)		(11,398	)		(10,337	)		(7,718	)		3			(66	)
TOTAL STOCKHOLDERS’ EQUITY		123,221			119,978			119,211			117,704			115,790			3			6
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,562,147		$	1,479,575		$	1,458,042		$	1,408,918		$	1,351,520			6			16

(a) The cumulative effect of changes in accounting principles increased retained earnings as a result of implementing SFAS 157, SFAS 159 and FIN 48 in the first quarter of 2007. For additional information see the Firm’s September 30, 2007, Form 10-Q.

Page 4

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	41,363		$	39,906		$	18,153		$	16,224		$	19,736			4	%		110	%	$	29,010		$	27,730			5	%
Federal Funds Sold and Securities Purchased under Resale Agreements		140,622			133,780			132,768			135,499			144,744			5			(3	)		135,677			132,118			3
Securities Borrowed		86,649			87,955			90,810			78,768			82,184			(1	)		5			86,072			83,831			3
Trading Assets – Debt Instruments		308,175			310,445			294,931			257,079			218,188			(1	)		41			292,846			205,506			42
Securities		93,236			95,694			96,921			95,326			89,962			(3	)		4			95,290			77,845			22
Interests in Purchased Receivables (a)		–			–			–			–			–			–			–			–			13,941		NM
Loans		508,172			476,912			465,763			467,453			484,140			7			5			479,679			454,535			6
Total Interest-Earning Assets		1,178,217			1,144,692			1,099,346			1,050,349			1,038,954			3			13			1,118,574			995,506			12
Trading Assets – Equity Instruments		93,453			86,177			85,830			88,791			81,985			8			14			88,569			74,573			19
Goodwill		45,321			45,276			45,181			45,125			45,163			–			–			45,226			43,872			3
Other Intangible Assets:
Mortgage Servicing Rights		8,795			9,290			8,371			7,784			7,295			(5	)		21			8,565			7,484			14
All Other Intangible Assets		6,220			6,532			6,854			7,139			7,478			(5	)		(17	)		6,684			7,420			(10	)
All Other Noninterest-Earning Assets		198,031			185,367			186,404			179,727			181,732			7			9			187,426			168,442			11
Assets of Discontinued Operations Held-for-Sale (b)		–			–			–			–			–			–			–			–			16,497		NM
TOTAL ASSETS	$	1,530,037		$	1,477,334		$	1,431,986		$	1,378,915		$	1,362,607			4			12		$	1,455,044		$	1,313,794			11
LIABILITIES
Interest-Bearing Deposits	$	587,297		$	540,937		$	513,451		$	498,717		$	487,368			9			21		$	535,359		$	452,323			18
Federal Funds Purchased and Securities Sold under Repurchase Agreements		171,450			206,174			209,323			199,252			198,166			(17	)		(13	)		196,500			183,783			7
Commercial Paper		48,821			26,511			25,282			22,339			18,787			84			160			30,799			17,710			74
Other Borrowings (c)		99,259			104,995			100,715			95,664			96,499			(5	)		3			100,181			102,147			(2	)
Beneficial Interests Issued by Consolidated VIEs		14,183			14,454			13,641			15,993			15,769			(2	)		(10	)		14,563			28,652			(49	)
Long-Term Debt		191,797			177,851			162,465			148,146			140,515			8			36			170,206			129,667			31
Total Interest-Bearing Liabilities		1,112,807			1,070,922			1,024,877			980,111			957,104			4			16			1,047,608			914,282			15
Noninterest-Bearing Liabilities		295,670			287,436			289,058			282,559			290,741			3			2			288,713			272,994			6
Liabilities of Discontinued Operations Held-for-Sale (b)		–			–			–			–			–			–			–			–			15,787		NM
TOTAL LIABILITIES		1,408,477			1,358,358			1,313,935			1,262,670			1,247,845			4			13			1,336,321			1,203,063			11
Preferred Stock		–			–			–			–			–			–			–			–			34		NM
Common Stockholders’ Equity		121,560			118,976			118,051			116,245			114,762			2			6			118,723			110,697			7
TOTAL STOCKHOLDERS’ EQUITY		121,560			118,976			118,051			116,245			114,762			2			6			118,723			110,731			7
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$	1,530,037		$	1,477,334		$	1,431,986		$	1,378,915		$	1,362,607			4			12		$	1,455,044		$	1,313,794			11
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		4.95	%		5.06	%		4.56	%		4.65	%		5.18	%								4.89	%		4.56	%
Federal Funds Sold and Securities Purchased under Resale Agreements		4.41			4.83			4.99			4.95			4.71									4.79			4.22
Securities Borrowed		4.77			5.60			5.31			5.42			4.56									5.27			4.06
Trading Assets – Debt Instruments (d)		5.84			6.09			5.65			5.96			5.45									5.89			5.41
Securities		5.58			5.69			5.68			5.68			5.57									5.65			5.53
Interests in Purchased Receivables		–			–			–			–			–									–			4.68
Loans		7.60			7.80			7.65			7.53			7.35									7.65			7.26
Total Interest-Earning Assets		6.30			6.55			6.37			6.44			6.17									6.42			5.96
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		3.84			4.13			4.17			4.06			3.99									4.04			3.77
Federal Funds Purchased and Securities Sold under Repurchase Agreements		4.35			5.18			5.19			5.09			4.86									4.98			4.45
Commercial Paper		4.40			4.68			4.92			4.89			4.76									4.65			4.49
Other Borrowings (c)		5.02			4.90			4.69			5.07			4.75									4.91			5.00
Beneficial Interests Issued by Consolidated VIEs		4.36			4.52			3.22			3.82			3.96									3.98			4.31
Long-Term Debt		3.90			3.99			3.77			3.85			4.34									3.88			4.24
Total Interest-Bearing Liabilities		4.06			4.41			4.37			4.35			4.31									4.29			4.14
INTEREST RATE SPREAD		2.24	%		2.14	%		2.00	%		2.09	%		1.86	%								2.13	%		1.82	%
NET YIELD ON INTEREST-EARNING ASSETS		2.46	%		2.43	%		2.30	%		2.38	%		2.19	%								2.39	%		2.16	%
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		2.80	%		2.75	%		2.63	%		2.73	%		2.54	%								2.73	%		2.56	%

(a)	As a result of restructuring certain multi-seller conduits the Firm administers, during the second quarter of 2006, JPMorgan Chase deconsolidated $29 billion of Interests in Purchased Receivables, $3 billion of Loans and $1 billion of Securities, and recorded $33 billion of Lending-Related Commitments.
(b)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank of New York. As a result of this transaction, for purposes of the consolidated average balance sheet for assets and liabilities transferred to discontinued operations, JPMorgan Chase used Federal funds sold interest income as a reasonable estimate of the earnings on corporate trust deposits for the periods prior to the close of the transaction; therefore, JPMorgan Chase transferred to assets of discontinued operations held-for-sale average Federal funds sold, along with the related interest income earned, and transferred to liabilities of discontinued operations held-for-sale average corporate trust deposits.
(c)	Includes securities sold but not yet purchased.
(d)	For certain trading-related positions, amounts have been revised between Principal transactions revenue and Interest income on Trading assets – debt instruments; there is no impact to Net revenue as a result of these reclassifications.

Page 5

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

The Firm prepares its Consolidated financial statements using accounting principles generally accepted in the United States of America (“U.S. GAAP”). That presentation, which is referred to as “reported basis,” provides the reader with an understanding of the Firm’s results that can be tracked consistently from year to year and enables a comparison of 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 the Firm’s and the lines’ of business results on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications that assumes credit card loans securitized by Card Services remain on the balance sheet and presents revenue on a fully taxable-equivalent (“FTE”) basis. These adjustments do not have any impact on Net income as reported by the lines of business or by the Firm as a whole. The impact of these adjustments are summarized below. For additional information about managed basis, please refer to the Glossary of Terms on page 32.

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
CREDIT CARD INCOME
Credit Card Income – Reported	$	1,857		$	1,777		$	1,714		$	1,563		$	1,645			5	%		13	%	$	6,911		$	6,913			–	%
Impact of:
Credit Card Securitizations		(885	)		(836	)		(788	)		(746	)		(726	)		(6	)		(22	)		(3,255	)		(3,509	)		7
Credit Card Income – Managed	$	972		$	941		$	926		$	817		$	919			3			6		$	3,656		$	3,404			7
OTHER INCOME
Other Income – Reported	$	469		$	289		$	553		$	518		$	522			62			(10	)	$	1,829		$	2,175			(16	)
Impact of:
Tax-Equivalent Adjustments		182			192			199			110			195			(5	)		(7	)		683			676			1
Other Income – Managed	$	651		$	481		$	752		$	628		$	717			35			(9	)	$	2,512		$	2,851			(12	)
TOTAL NONINTEREST REVENUE
Total Noninterest Revenue – Reported	$	10,161		$	9,199		$	12,740		$	12,866		$	10,501			10			(3	)	$	44,966		$	40,757			10
Impact of:
Credit Card Securitizations		(885	)		(836	)		(788	)		(746	)		(726	)		(6	)		(22	)		(3,255	)		(3,509	)		7
Tax-Equivalent Adjustments		182			192			199			110			195			(5	)		(7	)		683			676			1
Total Noninterest Revenue – Managed	$	9,458		$	8,555		$	12,151		$	12,230		$	9,970			11			(5	)	$	42,394		$	37,924			12
NET INTEREST INCOME
Net Interest Income – Reported	$	7,223		$	6,913		$	6,168		$	6,102		$	5,692			4			27		$	26,406		$	21,242			24
Impact of:
Credit Card Securitizations		1,504			1,414			1,378			1,339			1,319			6			14			5,635			5,719			(1	)
Tax-Equivalent Adjustments		90			95			122			70			53			(5	)		70			377			228			65
Net Interest Income – Managed	$	8,817		$	8,422		$	7,668		$	7,511		$	7,064			5			25		$	32,418		$	27,189			19
TOTAL NET REVENUE
Total Net Revenue – Reported	$	17,384		$	16,112		$	18,908		$	18,968		$	16,193			8			7		$	71,372		$	61,999			15
Impact of:
Credit Card Securitizations		619			578			590			593			593			7			4			2,380			2,210			8
Tax-Equivalent Adjustments		272			287			321			180			248			(5	)		10			1,060			904			17
Total Net Revenue – Managed	$	18,275		$	16,977		$	19,819		$	19,741		$	17,034			8			7		$	74,812		$	65,113			15
PROVISION FOR CREDIT LOSSES
Provision for Credit Losses – Reported	$	2,542		$	1,785		$	1,529		$	1,008		$	1,134			42			124		$	6,864		$	3,270			110
Impact of:
Credit Card Securitizations		619			578			590			593			593			7			4			2,380			2,210			8
Provision for Credit Losses – Managed	$	3,161		$	2,363		$	2,119		$	1,601		$	1,727			34			83		$	9,244		$	5,480			69
INCOME TAX EXPENSE
Income Tax Expense – Reported	$	1,151		$	1,627		$	2,117		$	2,545		$	1,268			(29	)		(9	)	$	7,440		$	6,237			19
Impact of:
Tax-Equivalent Adjustments		272			287			321			180			248			(5	)		10			1,060			904			17
Income Tax Expense – Managed	$	1,423		$	1,914		$	2,438		$	2,725		$	1,516			(26	)		(6	)	$	8,500		$	7,141			19

Page 6

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
TOTAL NET REVENUE (FTE)
Investment Bank	$	3,172		$	2,946		$	5,798		$	6,254		$	4,860			8	%		(35	)%	$	18,170		$	18,833			(4	)%
Retail Financial Services		4,815			4,201			4,357			4,106			3,728			15			29			17,479			14,825			18
Card Services		3,971			3,867			3,717			3,680			3,750			3			6			15,235			14,745			3
Commercial Banking		1,084			1,009			1,007			1,003			1,018			7			6			4,103			3,800			8
Treasury & Securities Services		1,930			1,748			1,741			1,526			1,537			10			26			6,945			6,109			14
Asset Management		2,389			2,205			2,137			1,904			1,947			8			23			8,635			6,787			27
Corporate		914			1,001			1,062			1,268			194			(9	)		371			4,245			14		NM
TOTAL NET REVENUE	$	18,275		$	16,977		$	19,819		$	19,741		$	17,034			8			7		$	74,812		$	65,113			15
NET INCOME
Investment Bank	$	124		$	296		$	1,179		$	1,540		$	1,009			(58	)		(88	)	$	3,139		$	3,674			(15	)
Retail Financial Services		752			639			785			859			718			18			5			3,035			3,213			(6	)
Card Services		609			786			759			765			719			(23	)		(15	)		2,919			3,206			(9	)
Commercial Banking		288			258			284			304			256			12			13			1,134			1,010			12
Treasury & Securities Services		422			360			352			263			256			17			65			1,397			1,090			28
Asset Management		527			521			493			425			407			1			29			1,966			1,409			40
Corporate (a)		249			513			382			631			1,161			(51	)		(79	)		1,775			842			111
TOTAL NET INCOME (b)	$	2,971		$	3,373		$	4,234		$	4,787		$	4,526			(12	)		(34	)	$	15,365		$	14,444			6
AVERAGE EQUITY (c)
Investment Bank	$	21,000		$	21,000		$	21,000		$	21,000		$	21,000			–			–		$	21,000		$	20,753			1
Retail Financial Services		16,000			16,000			16,000			16,000			16,000			–			–			16,000			14,629			9
Card Services		14,100			14,100			14,100			14,100			14,100			–			–			14,100			14,100			–
Commercial Banking		6,700			6,700			6,300			6,300			6,300			–			6			6,502			5,702			14
Treasury & Securities Services		3,000			3,000			3,000			3,000			2,200			–			36			3,000			2,285			31
Asset Management		4,000			4,000			3,750			3,750			3,500			–			14			3,876			3,500			11
Corporate		56,760			54,176			53,901			52,095			51,662			5			10			54,245			49,728			9
TOTAL AVERAGE EQUITY	$	121,560		$	118,976		$	118,051		$	116,245		$	114,762			2			6		$	118,723		$	110,697			7
RETURN ON EQUITY (c)
Investment Bank		2	%		6	%		23	%		30	%		19	%								15	%		18	%
Retail Financial Services		19			16			20			22			18									19			22
Card Services		17			22			22			22			20									21			23
Commercial Banking		17			15			18			20			16									17			18
Treasury & Securities Services		56			48			47			36			46									47			48
Asset Management		52			52			53			46			46									51			40

(a)	Included the after-tax impact of discontinued operations, material litigation actions, tax audit benefits and merger costs. See Corporate Financial Highlights for additional details.
(b)	Net income included Income from discontinued operations (after-tax) of $620 million for the quarter ended December 31, 2006, and $795 million for full year 2006. There was no income from discontinued operations in 2007.
(c)	Each business segment is allocated capital by taking into consideration stand-alone peer comparisons, economic risk measures and regulatory capital requirements. The amount of capital assigned to each business is referred to as equity.

Page 7

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Investment Banking Fees	$	1,657		$	1,330		$	1,900		$	1,729		$	1,580			25	%		5	%	$	6,616		$	5,537			19	%
Principal Transactions (a) (b)		(623	)		(435	)		2,325			3,142			2,327			(43	)	NM				4,409			9,512			(54	)
Lending & Deposit Related Fees		142			118			93			93			119			20			19			446			517			(14	)
Asset Management, Administration and Commissions		705			712			643			641			569			(1	)		24			2,701			2,240			21
All Other Income		(166	)		(76	)		122			42			91			(118	)	NM				(78	)		528		NM
Noninterest Revenue		1,715			1,649			5,083			5,647			4,686			4			(63	)		14,094			18,334			(23	)
Net Interest Income (a) (b)		1,457			1,297			715			607			174			12		NM				4,076			499		NM
TOTAL NET REVENUE (c)		3,172			2,946			5,798			6,254			4,860			8			(35	)		18,170			18,833			(4	)
Provision for Credit Losses		200			227			164			63			63			(12	)		217			654			191			242
Credit Reimbursement from TSS (d)		30			31			30			30			31			(3	)		(3	)		121			121			–
NONINTEREST EXPENSE
Compensation Expense		1,561			1,178			2,589			2,637			1,880			33			(17	)		7,965			8,190			(3	)
Noncompensation Expense		1,450			1,200			1,265			1,194			1,325			21			9			5,109			4,670			9
TOTAL NONINTEREST EXPENSE		3,011			2,378			3,854			3,831			3,205			27			(6	)		13,074			12,860			2
Income Before Income Tax Expense		(9	)		372			1,810			2,390			1,623		NM			NM				4,563			5,903			(23	)
Income Tax Expense		(133	)		76			631			850			614		NM			NM				1,424			2,229			(36	)
NET INCOME	$	124		$	296		$	1,179		$	1,540		$	1,009			(58	)		(88	)	$	3,139		$	3,674			(15	)
FINANCIAL RATIOS
ROE		2	%		6	%		23	%		30	%		19	%								15	%		18	%
ROA		0.07			0.17			0.68			0.95			0.62									0.45			0.57
Overhead Ratio		95			81			66			61			66									72			68
Compensation Expense as a % of Total Net Revenue (e)		49			40			45			42			38									44			41
REVENUE BY BUSINESS
Investment Banking Fees:
Advisory	$	646		$	595		$	560		$	472		$	482			9			34		$	2,273		$	1,659			37
Equity Underwriting		544			267			509			393			327			104			66			1,713			1,178			45
Debt Underwriting		467			468			831			864			771			–			(39	)		2,630			2,700			(3	)
Total Investment Banking Fees		1,657			1,330			1,900			1,729			1,580			25			5			6,616			5,537			19
Fixed Income Markets		615			687			2,445			2,592			2,061			(10	)		(70	)		6,339			8,736			(27	)
Equity Markets		578			537			1,249			1,539			958			8			(40	)		3,903			3,458			13
Credit Portfolio		322			392			204			394			261			(18	)		23			1,312			1,102			19
Total Net Revenue	$	3,172		$	2,946		$	5,798		$	6,254		$	4,860			8			(35	)	$	18,170		$	18,833			(4	)
REVENUE BY REGION
Americas	$	1,128		$	1,016		$	2,655		$	3,366		$	2,535			11			(56	)	$	8,165		$	9,601			(15	)
Europe/Middle East/Africa		1,334			1,389			2,327			2,251			1,886			(4	)		(29	)		7,301			7,421			(2	)
Asia/Pacific		710			541			816			637			439			31			62			2,704			1,811			49
Total Net Revenue	$	3,172		$	2,946		$	5,798		$	6,254		$	4,860			8			(35	)	$	18,170		$	18,833			(4	)

(a)	The Firm adopted SFAS 157 and SFAS 159 in the first quarter of 2007; for additional information related to the impact to the Investment Bank (“IB”), see IB business segment results in the Firm’s September 30, 2007, Form 10-Q.
(b)	For certain trading-related positions, amounts have been revised between Principal transactions revenue and Net interest income; there is no impact to Net revenue as a result of these reclassifications.
(c)	Total net revenue included tax-equivalent adjustments, primarily due to tax-exempt income from municipal bond investments and income tax credits related to affordable housing investments, of $230 million, $255 million, $290 million, $152 million, and $218 million for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, and $927 million and $802 million for full year 2007 and 2006, respectively.
(d)	Treasury & Securities Services (“TSS”) was charged a credit reimbursement related to certain exposures managed within the Investment Bank credit portfolio on behalf of clients shared with TSS.
(e)	For 2006, the compensation expense to Total net revenue ratio was adjusted to present this ratio as if SFAS 123R had always been in effect. IB management believes that adjusting the Compensation expense to Total net revenue ratio for the incremental impact of adopting SFAS 123R provides a more meaningful measure of IB’s Compensation expense to Total net revenue ratio for 2006.

Page 8

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	735,685		$	710,665		$	696,230		$	658,724		$	645,993			4	%		14	%	$	700,565		$	647,569			8	%
Trading Assets – Debt and Equity Instruments (a)		371,842			372,212			359,387			335,118			295,317			–			26			359,775			275,077			31
Trading Assets – Derivative Receivables		74,659			63,017			58,520			56,398			59,802			18			25			63,198			54,541			16
Loans:
Loans Retained (b)		68,928			61,919			59,065			58,973			60,947			11			13			62,247			58,846			6
Loans Held-for-Sale & Loans at Fair Value (a)		24,977			17,315			14,794			13,684			23,743			44			5			17,723			21,745			(18	)
Total Loans		93,905			79,234			73,859			72,657			84,690			19			11			79,970			80,591			(1	)
Adjusted Assets (c)		644,573			625,619			603,839			572,017			548,628			3			17			611,749			527,753			16
Equity		21,000			21,000			21,000			21,000			21,000			–			–			21,000			20,753			1
Headcount		25,543	#		25,691	#		25,356	#		23,892	#		23,729	#		(1	)		8			25,543	#		23,729	#		8
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(9	)	$	67		$	(16	)	$	(6	)	$	10		NM			NM			$	36		$	(31	)	NM
Nonperforming Assets:
Nonperforming Loans (d)		353			265			72			92			231			33			53			353			231			53
Other Nonperforming Assets		100			60			47			36			38			67			163			100			38			163
Allowance for Credit Losses:
Allowance for Loan Losses		1,329			1,112			1,037			1,037			1,052			20			26			1,329			1,052			26
Allowance for Lending-Related Commitments		560			568			487			310			305			(1	)		84			560			305			84
Total Allowance for Credit Losses		1,889			1,680			1,524			1,347			1,357			12			39			1,889			1,357			39
Net Charge-off (Recovery) Rate (a) (b)		(0.05	)%		0.43	%		(0.11	)%		(0.04	)%		0.07	%								0.06	%		(0.05	)%
Allowance for Loan Losses to Average Loans (a) (b)		1.93			1.80			1.76			1.76			1.73									2.14			1.79
Allowance for Loan Losses to Nonperforming Loans (d)		431			585			2,206			1,178			461									431			461
Nonperforming Loans to Average Loans		0.38			0.33			0.10			0.13			0.27									0.44			0.29
MARKET RISK – AVERAGE TRADING AND CREDIT PORTFOLIO VAR
Trading Activities:
Fixed Income	$	103		$	98		$	74		$	45		$	51			5			102		$	80		$	56			43
Foreign Exchange		31			23			20			19			20			35			55			23			22			5
Equities		63			35			51			42			35			80			80			48			31			55
Commodities and Other		29			28			40			34			35			4			(17	)		33			45			(27	)
Diversification (e)		(102	)		(72	)		(73	)		(58	)		(58	)		(42	)		(76	)		(77	)		(70	)		(10	)
Total Trading VAR (f)		124			112			112			82			83			11			49			107			84			27
Credit Portfolio VAR (g)		26			17			12			13			15			53			73			17			15			13
Diversification (e)		(27	)		(22	)		(14	)		(12	)		(11	)		(23	)		(145	)		(18	)		(11	)		(64	)
Total Trading and Credit Portfolio VAR	$	123		$	107		$	110		$	83		$	87			15			41		$	106		$	88			20

	Full Year 2007					Full Year 2006
	Market					Market
MARKET SHARES AND RANKINGS (h)	Share			Rankings		Share			Rankings
Global Debt, Equity and Equity-Related		7	%		# 2		7	%		# 2
Global Syndicated Loans		13	%		# 1		14	%		# 1
Global Long-Term Debt		7	%		# 2		6	%		# 3
Global Equity and Equity-Related		9	%		# 2		7	%		# 6
Global Announced M&A		24	%		# 4		26	%		# 4
U.S. Debt, Equity and Equity-Related		10	%		# 2		9	%		# 2
U.S. Syndicated Loans		24	%		# 1		26	%		# 1
U.S. Long-Term Debt		12	%		# 2		12	%		# 2
U.S. Equity and Equity-Related (i)		11	%		# 5		8	%		# 6
U.S. Announced M&A		25	%		# 4		29	%		# 3

(a)	As a result of the adoption of SFAS 159 in the first quarter of 2007, $11.7 billion of loans were reclassified to trading assets. Loans held-for-sale & loans at fair value were excluded when calculating the allowance coverage ratio and Net charge-off rate.
(b)	Loans retained included Credit Portfolio loans, leveraged leases and other accrual loans, and excluded loans at fair value.
(c)	Adjusted assets, a non-GAAP financial measure, equals total assets minus (1) Securities purchased under resale agreements and Securities borrowed less Securities sold, not yet purchased; (2) assets of variable interest entities (“VIEs”) consolidated under FIN 46R; (3) cash and securities segregated and on deposit for regulatory and other purposes; and (4) goodwill and intangibles. The amount of adjusted assets is presented to assist the reader in comparing the IB’s asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. The IB believed an adjusted asset amount that excluded the assets discussed above, which were considered to have a low risk profile, provided a more meaningful measure of balance sheet leverage in the securities industry.
(d)	Nonperforming loans included loans held-for-sale of $45 million, $75 million, $25 million, $4 million, and $3 million at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, which were excluded from the allowance coverage ratios. Nonperforming loans excluded distressed loans held-for-sale purchased as part of IB’s proprietary activities and assets classified as trading assets. Loans elected under the fair value option and classified within trading assets are also excluded from nonperforming loans.
(e)	Average VARs were less than the sum of the VARs of their market risk components, which was due to risk offsets resulting from portfolio diversification. The diversification effect reflected the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is usually less than the sum of the risks of the positions themselves.
(f)	Trading VAR includes substantially all trading activities in IB. Trading VAR does not include VAR related to the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm.
(g)	Includes VAR on derivative credit valuation adjustments, hedges of the credit valuation adjustment and mark-to-market hedges of the retained loan portfolio, which were all reported in Principal Transactions revenue. The VAR did not include the retained loan portfolio.
(h)	Source: Thomson Financial Securities data. Global announced M&A was based on rank value; all other rankings were based upon 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%; Global and U.S. announced M&A market share and ranking for 2006 include transactions withdrawn since December 31, 2006.
(i)	References U.S. domiciled equity and equity-related transactions, per Thomson Financial Securities.

Page 9

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	496		$	492		$	470		$	423		$	430			1	%		15	%	$	1,881		$	1,597			18	%
Asset Management, Administration and Commissions		332			336			344			263			293			(1	)		13			1,275			1,422			(10	)
Securities Gains (Losses)		1			–			–			–			(5	)	NM			NM				1			(57	)	NM
Mortgage Fees and Related Income (a)		888			229			495			482			111			288		NM				2,094			618			239
Credit Card Income		174			167			163			142			143			4			22			646			523			24
All Other Income		219			296			212			179			176			(26	)		24			906			557			63
Noninterest Revenue		2,110			1,520			1,684			1,489			1,148			39			84			6,803			4,660			46
Net Interest Income		2,705			2,681			2,673			2,617			2,580			1			5			10,676			10,165			5
TOTAL NET REVENUE		4,815			4,201			4,357			4,106			3,728			15			29			17,479			14,825			18
Provision for Credit Losses		1,051			680			587			292			262			55			301			2,610			561			365
NONINTEREST EXPENSE
Compensation Expense (a)		1,113			1,087			1,104			1,065			950			2			17			4,369			3,657			19
Noncompensation Expense (a)		1,313			1,265			1,264			1,224			1,211			4			8			5,066			4,806			5
Amortization of Intangibles		114			117			116			118			130			(3	)		(12	)		465			464			–
TOTAL NONINTEREST EXPENSE		2,540			2,469			2,484			2,407			2,291			3			11			9,900			8,927			11
Income Before Income Tax Expense		1,224			1,052			1,286			1,407			1,175			16			4			4,969			5,337			(7	)
Income Tax Expense		472			413			501			548			457			14			3			1,934			2,124			(9	)
NET INCOME	$	752		$	639		$	785		$	859		$	718			18			5		$	3,035		$	3,213			(6	)
FINANCIAL RATIOS
ROE		19	%		16	%		20	%		22	%		18	%								19	%		22	%
Overhead Ratio (a)		53			59			57			59			61									57			60
Overhead Ratio Excluding Core Deposit Intangibles (a) (b)		50			56			54			56			58									54			57
SELECTED BALANCE SHEETS (Ending)
Assets	$	225,908		$	216,754		$	217,421		$	212,997		$	237,887			4			(5	)	$	225,908		$	237,887			(5	)
Loans:
Loans Retained		181,016			172,498			166,992			163,462			180,760			5			–			181,016			180,760			–
Loans Held-for-Sale & Loans at Fair Value (c)		16,541			18,274			23,501			25,006			32,744			(9	)		(49	)		16,541			32,744			(49	)
Total Loans		197,557			190,772			190,493			188,468			213,504			4			(7	)		197,557			213,504			(7	)
Deposits		221,129			216,135			217,689			221,840			214,081			2			3			221,129			214,081			3
SELECTED BALANCE SHEETS (Average)
Assets	$	221,557		$	214,852		$	216,692		$	217,135		$	235,301			3			(6	)	$	217,564		$	231,566			(6	)
Loans:
Loans Retained		176,140			168,495			165,136			162,744			190,426			5			(8	)		168,166			187,753			(10	)
Loans Held-for-Sale & Loans at Fair Value (c)		17,538			19,560			25,166			28,235			21,228			(10	)		(17	)		22,587			16,129			40
Total Loans		193,678			188,055			190,302			190,979			211,654			3			(8	)		190,753			203,882			(6	)
Deposits		219,226			216,904			219,171			216,933			211,915			1			3			218,062			201,127			8
Equity		16,000			16,000			16,000			16,000			16,000			–			–			16,000			14,629			9
Headcount		69,465	#		68,528	#		68,254	#		67,247	#		65,570	#		1			6			69,465	#		65,570	#		6
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	522		$	350		$	270		$	185		$	214			49			144		$	1,327		$	576			130
Nonperforming Loans (d) (e)		2,704			1,991			1,760			1,655			1,677			36			61			2,704			1,677			61
Nonperforming Assets (d) (e)		3,190			2,404			2,099			1,910			1,902			33			68			3,190			1,902			68
Allowance for Loan Losses		2,634			2,105			1,772			1,453			1,392			25			89			2,634			1,392			89
Net Charge-off Rate (f)		1.18	%		0.82	%		0.66	%		0.46	%		0.45	%								0.79	%		0.31	%
Allowance for Loan Losses to Ending Loans (f)		1.46			1.22			1.06			0.89			0.77									1.46			0.77
Allowance for Loan Losses to Nonperforming Loans (f)		100			107			115			94			89									100			89
Nonperforming Loans to Total Loans		1.37			1.04			0.92			0.88			0.79									1.37			0.79

(a)	The Firm adopted SFAS 159 in the first quarter of 2007. As a result, certain loan origination costs have been classified as expense (previously netted against revenue) for the current-year quarters and twelve months ended December 31, 2007.
(b)	Retail Financial Services uses the overhead ratio excluding the amortization of core deposit intangibles (“CDI”), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excluded Regional Banking’s core deposit intangible amortization expense related to The Bank of New York transaction and the Bank One merger of $113 million, $116 million, $115 million, $116 million, and $130 million for the quarters ending December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, and $460 million and $458 million for full year 2007 and 2006, respectively.
(c)	Loans included prime mortgage loans originated with the intent to sell, which, for new originations on or after January 1, 2007, were accounted for at fair value under SFAS 159. These loans, classified as Trading assets on the Consolidated balance sheets, totaled $12.6 billion, $14.4 billion, $15.2 billion, and $11.6 billion at December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007, respectively. Average loans included prime mortgage loans, classified as Trading assets on the Consolidated balance sheets, of $13.5 billion, $14.1 billion, $13.5 billion and $6.5 billion for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007, respectively, and $11.9 billion for the full year 2007.
(d)	Nonperforming loans included Loans held-for-sale and Loans accounted for at fair value under SFAS 159 of $69 million, $17 million, $217 million, $112 million, and $116 million at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. Certain of these loans are classified as Trading assets on the Consolidated balance sheet.
(e)	Nonperforming loans and assets excluded (1) loans eligible for repurchase as well as loans repurchased from Governmental National Mortgage Association (“GNMA”) pools that are insured by U.S. government agencies of $1.5 billion, $1.3 billion, $1.2 billion, $1.3 billion, and $1.2 billion at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007 and December 31, 2006, respectively, and (2) education loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $279 million, $241 million, $200 million, $178 million and $219 million at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007 and December 31, 2006, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.
(f)	Loans held-for-sale and loans accounted for at fair value under SFAS 159 were excluded when calculating the allowance coverage ratio and the Net charge-off rate.

Page 10

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
REGIONAL BANKING
Noninterest Revenue	$	940		$	1,013		$	977		$	793		$	678			(7	)%		39	%	$	3,723		$	3,204			16	%
Net Interest Income		2,363			2,325			2,296			2,299			2,229			2			6			9,283			8,768			6
Total Net Revenue		3,303			3,338			3,273			3,092			2,907			(1	)		14			13,006			11,972			9
Provision for Credit Losses		915			574			494			233			165			59			455			2,216			354		NM
Noninterest Expense		1,785			1,760			1,749			1,729			1,730			1			3			7,023			6,825			3
Income Before Income Tax Expense		603			1,004			1,030			1,130			1,012			(40	)		(40	)		3,767			4,793			(21	)
Net Income		371			611			629			690			619			(39	)		(40	)		2,301			2,884			(20	)
ROE		12	%		21	%		21	%		24	%		21	%								20	%		27	%
Overhead Ratio		54			53			53			56			60									54			57
Overhead Ratio Excluding Core Deposit Intangibles (a)		51			49			50			52			55									50			53
BUSINESS METRICS (in billions)
Home Equity Origination Volume	$	9.8		$	11.2		$	14.6		$	12.7		$	12.9			(13	)		(24	)	$	48.3		$	51.9			(7	)
End of Period Loans Owned:
Home Equity	$	94.8		$	93.0		$	91.0		$	87.7		$	85.7			2			11		$	94.8		$	85.7			11
Mortgage (b)		15.7			12.3			8.8			9.2			30.1			28			(48	)		15.7			30.1			(48	)
Business Banking		15.4			14.9			14.6			14.3			14.1			3			9			15.4			14.1			9
Education		11.0			10.2			10.2			11.1			10.3			8			7			11.0			10.3			7
Other Loans (c)		2.3			2.4			2.5			2.7			2.7			(4	)		(15	)		2.3			2.7			(15	)
Total End of Period Loans		139.2			132.8			127.1			125.0			142.9			5			(3	)		139.2			142.9			(3	)
End of Period Deposits:
Checking	$	67.0		$	64.5		$	67.3		$	69.3		$	68.7			4			(2	)	$	67.0		$	68.7			(2	)
Savings		96.0			95.7			97.7			100.1			92.4			–			4			96.0			92.4			4
Time and Other		48.7			46.5			41.9			42.2			43.3			5			12			48.7			43.3			12
Total End of Period Deposits		211.7			206.7			206.9			211.6			204.4			2			4			211.7			204.4			4
Average Loans Owned:
Home Equity	$	94.0		$	91.8		$	89.2		$	86.3		$	84.2			2			12		$	90.4		$	78.3			15
Mortgage Loans (b)		13.7			9.9			8.8			8.9			40.8			38			(66	)		10.3			45.1			(77	)
Business Banking		15.1			14.8			14.5			14.3			14.0			2			8			14.7			13.2			11
Education		10.6			9.8			10.5			11.0			9.9			8			7			10.5			8.3			27
Other Loans (c)		2.3			2.4			2.4			3.0			2.7			(4	)		(15	)		2.5			2.6			(4	)
Total Average Loans (d)		135.7			128.7			125.4			123.5			151.6			5			(10	)		128.4			147.5			(13	)
Average Deposits:
Checking	$	64.5		$	64.9		$	67.2		$	67.3		$	65.5			(1	)		(2	)	$	66.0		$	62.8			5
Savings		96.3			97.1			98.4			96.7			92.2			(1	)		4			97.1			89.9			8
Time and Other		47.7			43.3			41.7			42.5			43.0			10			11			43.8			37.5			17
Total Average Deposits		208.5			205.3			207.3			206.5			200.7			2			4			206.9			190.2			9
Average Assets		147.1			140.6			137.7			135.9			162.5			5			(9	)		140.4			160.8			(13	)
Average Equity		11.8			11.8			11.8			11.8			11.9			–			(1	)		11.8			10.5			12

Page 11

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
REGIONAL BANKING (continued)
CREDIT DATA AND QUALITY STATISTICS
30+ Day Delinquency Rate (e) (f)		3.03	%		2.39	%		1.88	%		1.84	%		2.02	%								3.03	%		2.02	%
Net Charge-offs
Home Equity	$	248		$	150		$	98		$	68		$	51			65	%		386	%	$	564		$	143			294	%
Mortgage		73			40			26			20			21			83			248			159			56			184
Business Banking		38			33			30			25			38			15			–			126			91			38
Other Loans		28			23			52			13			27			22			4			116			48			142
Total Net Charge-offs		387			246			206			126			137			57			182			965			338			186
Net Charge-off Rate
Home Equity		1.05	%		0.65	%		0.44	%		0.32	%		0.24	%								0.62	%		0.18	%
Mortgage (g)		2.06			1.60			1.19			0.91			0.20									1.52			0.12
Business Banking		1.00			0.88			0.83			0.71			1.08									0.86			0.69
Other Loans		1.21			1.01			2.32			0.55			1.15									1.26			0.59
Total Net Charge-off Rate (d)(g)		1.16			0.78			0.68			0.43			0.37									0.77			0.23
Nonperforming Assets (h)	$	2,879		$	2,206		$	1,751		$	1,688		$	1,714			31			68		$	2,879		$	1,714			68
RETAIL BRANCH BUSINESS METRICS
Investment Sales Volume	$	4,114		$	4,346		$	5,117		$	4,783		$	4,101			(5	)		–		$	18,360		$	14,882			23
Number of:
Branches		3,152	#		3,096	#		3,089	#		3,071	#		3,079	#		56	#		73	#		3,152	#		3,079	#		73	#
ATMs		9,186			8,943			8,649			8,560			8,506			243			680			9,186			8,506			680
Personal Bankers (i)		9,650			9,503			9,025			7,846			7,573			147			2,077			9,650			7,573			2,077
Sales Specialists (i)		4,105			4,025			3,915			3,712			3,614			80			491			4,105			3,614			491
Active Online Customers (in thousands) (j)		5,918			5,706			5,448			5,295			4,909			212			1,009			5,918			4,909			1,009
Checking Accounts (in thousands)		10,839			10,644			10,356			10,158			9,995			195			844			10,839			9,995			844
MORTGAGE BANKING
Production Revenue (k)	$	321		$	176		$	463		$	400		$	215			82	%		49	%	$	1,360		$	833			63	%
Net Mortgage Servicing Revenue:
Loan Servicing Revenue		665			629			615			601			598			6			11			2,510			2,300			9
Changes in MSR Asset Fair Value:
Due to Inputs or Assumptions in Model		(766	)		(810	)		952			108			38			5		NM				(516	)		165		NM
Other Changes in Fair Value		(393	)		(377	)		(383	)		(378	)		(372	)		(4	)		(6	)		(1,531	)		(1,440	)		(6	)
Total Changes in MSR Asset Fair Value		(1,159	)		(1,187	)		569			(270	)		(334	)		2			(247	)		(2,047	)		(1,275	)		(61	)
Derivative Valuation Adjustments and Other		1,232			788			(1,014	)		(127	)		(69	)		56		NM				879			(544	)	NM
Total Net Mortgage Servicing Revenue		738			230			170			204			195			221			278			1,342			481			179
Total Net Revenue		1,059			406			633			604			410			161			158			2,702			1,314			106
Noninterest Expense (k)		518			485			516			468			354			7			46			1,987			1,341			48
Income (Loss) Before Income Tax Expense		541			(79	)		117			136			56		NM			NM				715			(27	)	NM
Net Income (Loss)		332			(48	)		71			84			34		NM			NM				439			(17	)	NM
ROE		66	%	NM				14	%		17	%		8	%								22	%	NM
Business Metrics (in billions)
Third Party Mortgage Loans Serviced (Ending)	$	614.7		$	600.0		$	572.4		$	546.1		$	526.7			2			17		$	614.7		$	526.7			17
MSR Net Carrying Value (Ending)		8.6			9.1			9.5			7.9			7.5			(5	)		15			8.6			7.5			15
Avg Mortgage Loans Held-for-Sale & Loans at Fair Value (l)		13.8			16.4			21.3			23.8			17.9			(16	)		(23	)		18.8			12.8			47
Average Assets		30.6			31.4			35.6			38.0			29.8			(3	)		3			33.9			25.8			31
Average Equity		2.0			2.0			2.0			2.0			1.7			–			18			2.0			1.7			18
Mortgage Origination Volume by Channel (in billions)
Retail	$	9.9		$	11.1		$	13.6		$	10.9		$	10.5			(11	)		(6	)	$	45.5		$	40.5			12
Wholesale		10.2			9.8			12.8			9.9			9.0			4			13			42.7			32.8			30
Correspondent		9.5			7.2			6.4			4.8			3.5			32			171			27.9			13.3			110
CNT (Including Negotiated Transactions)		10.4			11.1			11.3			10.5			6.8			(6	)		53			43.3			32.6			33
Total (m)		40.0			39.2			44.1			36.1			29.8			2			34			159.4			119.2			34
AUTO FINANCE
Noninterest Revenue	$	142		$	140		$	138		$	131		$	124			1			15		$	551		$	368			50
Net Interest Income		308			307			312			279			287			–			7			1,206			1,171			3
Total Net Revenue		450			447			450			410			411			1			9			1,757			1,539			14
Provision for Credit Losses		133			96			92			59			97			39			37			380			207			84
Noninterest Expense		237			224			219			210			207			6			14			890			761			17
Income Before Income Tax Expense		80			127			139			141			107			(37	)		(25	)		487			571			(15	)
Net Income		49			76			85			85			65			(36	)		(25	)		295			346			(15	)
ROE		9	%		14	%		15	%		16	%		11	%								13	%		14	%
ROA		0.44			0.70			0.79			0.80			0.60									0.68			0.77

Page 12

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
AUTO FINANCE (continued)
Business Metrics (in billions)
Auto Origination Volume	$	5.6		$	5.2		$	5.3		$	5.2		$	5.0			8	%		12	%	$	21.3		$	19.3			10	%
End-of-Period Loans and Lease Related Assets
Loans Outstanding	$	42.0		$	40.3		$	40.4		$	39.7		$	39.3			4			7		$	42.0		$	39.3			7
Lease Financing Receivables		0.3			0.6			0.8			1.2			1.7			(50	)		(82	)		0.3			1.7			(82	)
Operating Lease Assets		1.9			1.8			1.8			1.7			1.6			6			19			1.9			1.6			19
Total End-of-Period Loans and Lease Related Assets		44.2			42.7			43.0			42.6			42.6			4			4			44.2			42.6			4
Average Loans and Lease Related Assets
Loans Outstanding (n)	$	41.1		$	39.9		$	40.1		$	39.4		$	38.7			3			6		$	40.2		$	39.8			1
Lease Financing Receivables		0.5			0.7			1.0			1.5			1.9			(29	)		(74	)		0.9			2.9			(69	)
Operating Lease Assets		1.9			1.8			1.7			1.6			1.5			6			27			1.7			1.3			31
Total Average Loans and Lease Related Assets		43.5			42.4			42.8			42.5			42.1			3			3			42.8			44.0			(3	)
Average Assets		43.8			42.9			43.4			43.2			43.1			2			2			43.3			44.9			(4	)
Average Equity		2.2			2.2			2.2			2.2			2.4			–			(8	)		2.2			2.4			(8	)
Credit Quality Statistics
30+ Day Delinquency Rate		1.85	%		1.65	%		1.43	%		1.33	%		1.72	%								1.85	%		1.72	%
Net Charge-offs
Loans	$	132		$	98		$	62		$	58		$	76			35			74		$	350		$	231			52
Lease Receivables		1			1			1			1			1			–			–			4			7			(43	)
Total Net Charge-offs		133			99			63			59			77			34			73			354			238			49
Net Charge-off Rate
Loans (n)		1.27	%		0.97	%		0.62	%		0.60	%		0.78	%								0.87	%		0.59	%
Lease Receivables		0.79			0.57			0.40			0.27			0.21									0.44			0.24
Total Net Charge-off Rate (n)		1.27			0.97			0.61			0.59			0.75									0.86			0.56
Nonperforming Assets	$	188		$	156		$	131		$	140		$	177			21			6		$	188		$	177			6

(a)	Regional Banking uses the overhead ratio excluding the amortization of core deposit intangibles (“CDI”), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this inclusion would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excluded Regional Banking’s core deposit intangible amortization expense related to The Bank of New York transaction and the Bank One merger of $113 million, $116 million, $115 million, $116 million, and $130 million for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, and $460 million and $458 million for full year 2007 and 2006, respectively.
(b)	As of January 1, 2007, $19.4 billion of held-for-investment prime mortgage loans were transferred from Retail Financial Services (“RFS”) to Treasury within the Corporate segment for risk management and reporting purposes. The transfer had no impact on the financial results of Regional Banking. Balances reported for current-year quarter ends primarily reflected subprime mortgage loans owned.
(c)	Included commercial loans derived from community development activities and, prior to July 1, 2006, insurance policy loans.
(d)	Average loans included loans held-for-sale of $3.7 billion, $3.2 billion, $3.9 billion, $4.4 billion, and $3.3 billion for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, and $3.8 billion and $2.8 billion for full year 2007 and 2006, respectively. These amounts were excluded when calculating the Net charge-off rate.
(e)	Excluded loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by U.S. government agencies of $1.2 billion, $979 million, $879 million, $975 million, and $960 million at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(f)	Excluded loans that are 30 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $663 million, $590 million, $523 million, $519 million, and $464 million at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(g)	The mortgage and total net charge-off rate for the fourth quarter and full year 2007 excluded $2 million of charge-offs related to prime mortgage loans held by Treasury in the Corporate Sector.
(h)	Excluded nonperforming assets related to education loans that are 90 days past due and still accruing, which were insured by U.S. government agencies under the Federal Family Education Loan Program of $279 million, $241 million, $200 million, $178 million, and $219 million at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(i)	Employees acquired as part of The Bank of New York transaction are included beginning June 30, 2007.
(j)	During the quarter ended June 30, 2007, RFS changed the methodology for determining active online customers to include all individual RFS customers with one or more online accounts that have been active within 90 days of period end, including customers who also have online accounts with Card Services. Prior periods have been restated to conform to this new methodology.
(k)	The Firm adopted SFAS 159 in the first quarter of 2007. As a result, certain loan origination costs have been classified as expense (previously netted against revenue) for the 2007 quarters and full year period.
(l)	Included $13.5 billion, $14.1 billion, $13.5 billion and $6.5 billion of prime mortgage loans at fair value for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007, respectively, and $11.9 billion for full year 2007. These loans are classified as trading assets on the Consolidated balance sheets for 2007.
(m)	During the second quarter of 2007, RFS changed its definition of mortgage originations to include all newly originated mortgage loans sourced through RFS channels, and to exclude all mortgage loan originations sourced through IB channels. Prior periods have been restated to conform to this new definition.
(n)	Average Loans held-for-sale for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, and full year 2007 were insignificant. The full year average Loans held-for-sale were $530 million for 2006. These amounts are excluded when calculating the Net charge-off rate.

Page 13

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Credit Card Income	$	712		$	692		$	682		$	599		$	697			3	%		2	%	$	2,685		$	2,587			4	%
All Other Income		122			67			80			92			111			82			10			361			357			1
Noninterest Revenue		834			759			762			691			808			10			3			3,046			2,944			3
Net Interest Income		3,137			3,108			2,955			2,989			2,942			1			7			12,189			11,801			3
TOTAL NET REVENUE		3,971			3,867			3,717			3,680			3,750			3			6			15,235			14,745			3
Provision for Credit Losses		1,788			1,363			1,331			1,229			1,281			31			40			5,711			4,598			24
NONINTEREST EXPENSE
Compensation Expense		260			256			251			254			242			2			7			1,021			1,003			2
Noncompensation Expense		790			827			753			803			915			(4	)		(14	)		3,173			3,344			(5	)
Amortization of Intangibles		173			179			184			184			184			(3	)		(6	)		720			739			(3	)
TOTAL NONINTEREST EXPENSE		1,223			1,262			1,188			1,241			1,341			(3	)		(9	)		4,914			5,086			(3	)
Income Before Income Tax Expense		960			1,242			1,198			1,210			1,128			(23	)		(15	)		4,610			5,061			(9	)
Income Tax Expense		351			456			439			445			409			(23	)		(14	)		1,691			1,855			(9	)
NET INCOME	$	609		$	786		$	759		$	765		$	719			(23	)		(15	)	$	2,919		$	3,206			(9	)
Memo: Net Securitization Gains (Amortization)	$	28		$	–		$	16		$	23		$	32		NM				(13	)	$	67		$	82			(18	)
FINANCIAL METRICS
ROE		17	%		22	%		22	%		22	%		20	%								21	%		23	%
Overhead Ratio		31			33			32			34			36									32			34
% of Average Managed Outstandings:
Net Interest Income		8.20			8.29			8.04			8.11			7.92									8.16			8.36
Provision for Credit Losses		4.67			3.64			3.62			3.34			3.45									3.82			3.26
Noninterest Revenue		2.18			2.03			2.07			1.88			2.17									2.04			2.09
Risk Adjusted Margin (a)		5.71			6.68			6.49			6.65			6.65									6.38			7.19
Noninterest Expense		3.20			3.37			3.23			3.37			3.61									3.29			3.60
Pretax Income (ROO)		2.51			3.31			3.26			3.28			3.04									3.09			3.59
Net Income		1.59			2.10			2.06			2.08			1.94									1.95			2.27
BUSINESS METRICS
Charge Volume (in billions)	$	95.5		$	89.8		$	88.0		$	81.3		$	93.4			6			2		$	354.6		$	339.6			4
Net Accounts Opened (in thousands) (b)		5,250	#		3,957	#		3,706	#		3,439	#		14,392	#		33			(64	)		16,352	#		45,869	#		(64	)
Credit Cards Issued (in thousands)		155,000			153,637			150,883			152,097			154,424			1			–			155,000			154,424			–
Number of Registered Internet Customers (in millions)		28.3			26.4			24.6			24.3			22.5			7			26			28.3			22.5			26
Merchant Acquiring Business (c)
Bank Card Volume (in billions)	$	194.4		$	181.4		$	179.7		$	163.6		$	177.9			7			9		$	719.1		$	660.6			9
Total Transactions (in millions)		5,406	#		4,990	#		4,811	#		4,465	#		4,968	#		8			9			19,672	#		18,171	#		8

(a)	Represents Total Net Revenue less Provision for Credit Losses.
(b)	Fourth quarter of 2006 included approximately 9 million accounts from the acquisition of the BP and Pier 1 Imports, Inc. private label portfolios. In addition, full year 2006 included approximately 21 million accounts from the acquisition of the Kohl’s private label portfolio in the second quarter of 2006.
(c)	Represents 100% of the merchant acquiring business.

Page 14

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheets	$	84,352		$	79,409		$	80,495		$	78,173		$	85,881			6	%		(2	)%	$	84,352		$	85,881			(2	)%
Securitized Loans		72,701			69,643			67,506			68,403			66,950			4			9			72,701			66,950			9
Managed Loans	$	157,053		$	149,052		$	148,001		$	146,576		$	152,831			5			3		$	157,053		$	152,831			3
SELECTED AVERAGE BALANCES
Managed Assets	$	158,183		$	154,956		$	154,406		$	156,271		$	153,973			2			3		$	155,957		$	148,153			5
Loans:
Loans on Balance Sheets	$	79,028		$	79,993		$	79,000		$	81,932		$	81,489			(1	)		(3	)	$	79,980		$	73,740			8
Securitized Loans		72,715			68,673			68,428			67,485			65,898			6			10			69,338			67,367			3
Managed Loans	$	151,743		$	148,666		$	147,428		$	149,417		$	147,387			2			3		$	149,318		$	141,107			6
Equity	$	14,100		$	14,100		$	14,100		$	14,100		$	14,100			–			–		$	14,100		$	14,100			–
Headcount		18,554	#		18,887	#		18,913	#		18,749	#		18,639	#		(2	)		–			18,554	#		18,639	#		–
MANAGED CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,488		$	1,363		$	1,331		$	1,314		$	1,281			9			16		$	5,496		$	4,698			17
Net Charge-off Rate		3.89	%		3.64	%		3.62	%		3.57	%		3.45	%								3.68	%		3.33	%
Managed delinquency ratios
30+ days		3.48	%		3.25	%		3.00	%		3.07	%		3.13	%								3.48	%		3.13	%
90+ days		1.65			1.50			1.42			1.52			1.50									1.65			1.50
Allowance for Loan Losses	$	3,407		$	3,107		$	3,096		$	3,092		$	3,176			10			7		$	3,407		$	3,176			7
Allowance for Loan Losses to Period-end Loans		4.04	%		3.91	%		3.85	%		3.96	%		3.70	%								4.04	%		3.70	%

Page 15

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Basis for the Period	$	1,597		$	1,528		$	1,470		$	1,345		$	1,423			5	%		12	%	$	5,940		$	6,096			(3	)%
Securitization Adjustments		(885	)		(836	)		(788	)		(746	)		(726	)		(6	)		(22	)		(3,255	)		(3,509	)		7
Managed Credit Card Income	$	712		$	692		$	682		$	599		$	697			3			2		$	2,685		$	2,587			4
Net Interest Income
Reported Basis for the Period	$	1,633		$	1,694		$	1,577		$	1,650		$	1,623			(4	)		1		$	6,554		$	6,082			8
Securitization Adjustments		1,504			1,414			1,378			1,339			1,319			6			14			5,635			5,719			(1	)
Managed Net Interest Income	$	3,137		$	3,108		$	2,955		$	2,989		$	2,942			1			7		$	12,189		$	11,801			3
Total Net Revenue																													��
Reported Basis for the Period	$	3,352		$	3,289		$	3,127		$	3,087		$	3,157			2			6		$	12,855		$	12,535			3
Securitization Adjustments		619			578			590			593			593			7			4			2,380			2,210			8
Managed Total Net Revenue	$	3,971		$	3,867		$	3,717		$	3,680		$	3,750			3			6		$	15,235		$	14,745			3
Provision for Credit Losses
Reported Basis for the Period	$	1,169		$	785		$	741		$	636		$	688			49			70		$	3,331		$	2,388			39
Securitization Adjustments		619			578			590			593			593			7			4			2,380			2,210			8
Managed Provision for Credit Losses	$	1,788		$	1,363		$	1,331		$	1,229		$	1,281			31			40		$	5,711		$	4,598			24
BALANCE SHEETS — AVERAGE BALANCES (a)
Total Average Assets
Reported Basis for the Period	$	88,244		$	88,856		$	88,486		$	91,157		$	90,283			(1	)		(2	)	$	89,177		$	82,887			8
Securitization Adjustments		69,939			66,100			65,920			65,114			63,690			6			10			66,780			65,266			2
Managed Average Assets	$	158,183		$	154,956		$	154,406		$	156,271		$	153,973			2			3		$	155,957		$	148,153			5
CREDIT QUALITY STATISTICS (a)
Net Charge-offs
Reported Net Charge-offs Data for the Period	$	869		$	785		$	741		$	721		$	688			11			26		$	3,116		$	2,488			25
Securitization Adjustments		619			578			590			593			593			7			4			2,380			2,210			8
Managed Net Charge-offs	$	1,488		$	1,363		$	1,331		$	1,314		$	1,281			9			16		$	5,496		$	4,698			17

(a) JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance and overall 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 receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed receivables, JPMorgan Chase treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire managed credit card portfolio. Managed 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 managed earnings; however, it does affect the classification of items on the Consolidated statements of income and Consolidated balance sheets.

Page 16

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	172		$	159		$	158		$	158		$	155			8	%		11	%	$	647		$	589			10	%
Asset Management, Administration and Commissions		24			24			21			23			20			–			20			92			67			37
All Other Income (a)		130			107			133			154			135			21			(4	)		524			417			26
Noninterest Revenue		326			290			312			335			310			12			5			1,263			1,073			18
Net Interest Income		758			719			695			668			708			5			7			2,840			2,727			4
TOTAL NET REVENUE		1,084			1,009			1,007			1,003			1,018			7			6			4,103			3,800			8
Provision for Credit Losses		105			112			45			17			111			(6	)		(5	)		279			160			74
NONINTEREST EXPENSE
Compensation Expense		184			160			182			180			174			15			6			706			740			(5	)
Noncompensation Expense		307			300			300			290			296			2			4			1,197			1,179			2
Amortization of Intangibles		13			13			14			15			15			–			(13	)		55			60			(8	)
TOTAL NONINTEREST EXPENSE		504			473			496			485			485			7			4			1,958			1,979			(1	)
Income Before Income Tax Expense		475			424			466			501			422			12			13			1,866			1,661			12
Income Tax Expense		187			166			182			197			166			13			13			732			651			12
NET INCOME	$	288		$	258		$	284		$	304		$	256			12			13		$	1,134		$	1,010			12
MEMO:
Revenue by Product:
Lending	$	380		$	343		$	348		$	348		$	359			11			6		$	1,419		$	1,344			6
Treasury Services		631			594			569			556			576			6			10			2,350			2,243			5
Investment Banking		70			64			82			76			87			9			(20	)		292			253			15
Other		3			8			8			23			(4	)		(63	)	NM				42			(40	)	NM
Total Commercial Banking Revenue	$	1,084		$	1,009		$	1,007		$	1,003		$	1,018			7			6		$	4,103		$	3,800			8
IB Revenues, Gross (b)	$	227		$	194		$	236		$	231		$	246			17			(8	)	$	888		$	716			24
Revenue by Business:
Middle Market Banking	$	695		$	680		$	653		$	661		$	661			2			5		$	2,689		$	2,535			6
Mid-Corporate Banking		239			167			197			212			198			43			21			815			656			24
Real Estate Banking		102			108			109			102			120			(6	)		(15	)		421			458			(8	)
Other		48			54			48			28			39			(11	)		23			178			151			18
Total Commercial Banking Revenue	$	1,084		$	1,009		$	1,007		$	1,003		$	1,018			7			6		$	4,103		$	3,800			8
FINANCIAL RATIOS
ROE		17	%		15	%		18	%		20	%		16	%								17	%		18	%
Overhead Ratio		46			47			49			48			48									48			52

(a)	IB-related and commercial card revenues are included in All Other Income.
(b)	Represents the total revenue related to investment banking products sold to Commercial Banking (“CB”) clients.

Page 17

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

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	94,550		$	86,652		$	84,687		$	82,545		$	62,227			9	%		52	%	$	87,140		$	57,754			51	%
Loans:
Loans Retained		63,749			60,839			59,071			57,185			56,853			5			12			60,231			53,154			13
Loans Held-for-Sale & Loans at Fair Value		1,795			433			741			475			804			315			123			863			442			95
Total Loans (a)		65,544			61,272			59,812			57,660			57,657			7			14			61,094			53,596			14
Liability Balances (b)		96,716			88,081			84,187			81,752			79,050			10			22			87,726			73,613			19
Equity		6,700			6,700			6,300			6,300			6,300			–			6			6,502			5,702			14
MEMO:
Loans by Business:
Middle Market Banking	$	38,275		$	37,617		$	37,099		$	36,317		$	35,618			2			7		$	37,333		$	33,225			12
Mid-Corporate Banking		15,440			12,076			11,692			10,669			9,898			28			56			12,481			8,632			45
Real Estate Banking		7,347			7,144			6,894			7,074			7,745			3			(5	)		7,116			7,566			(6	)
Other		4,482			4,435			4,127			3,600			4,396			1			2			4,164			4,173			–
Total Commercial Banking Loans	$	65,544		$	61,272		$	59,812		$	57,660		$	57,657			7			14		$	61,094		$	53,596			14
Headcount		4,125	#		4,158	#		4,295	#		4,281	#		4,459	#		(1	)		(7	)		4,125	#		4,459	#		(7	)
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	33		$	20		$	(8	)	$	(1	)	$	16			65			106		$	44		$	27			63
Nonperforming Loans		146			134			135			141			121			9			21			146			121			21
Allowance for Credit Losses:
Allowance for Loan Losses		1,695			1,623			1,551			1,531			1,519			4			12			1,695			1,519			12
Allowance for Lending-Related Commitments		236			236			222			187			187			–			26			236			187			26
Total Allowance for Credit Losses		1,931			1,859			1,773			1,718			1,706			4			13			1,931			1,706			13
Net Charge-off (Recovery) Rate (a)		0.21	%		0.13	%		(0.05	)%		(0.01	)%		0.11	%								0.07	%		0.05	%
Allowance for Loan Losses to Average Loans (a)		2.66			2.67			2.63			2.68			2.67									2.81			2.86
Allowance for Loan Losses to Nonperforming Loans		1,161			1,211			1,149			1,086			1,255									1,161			1,255
Nonperforming Loans to Average Loans		0.22			0.22			0.23			0.24			0.21									0.24			0.23

(a)	Loans held-for-sale and Loans accounted for at fair value under SFAS 159 were excluded when calculating the allowance coverage ratio and the Net charge-off rate.
(b)	Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, Federal funds purchased, and repurchase agreements.

Page 18

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

	QUARTERLY TRENDS																					FULL YEAR
						��										4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	247		$	244		$	219		$	213		$	186			1	%		33	%	$	923		$	735			26	%
Asset Management, Administration and Commissions		806			730			828			686			717			10			12			3,050			2,692			13
All Other Income		228			171			184			125			133			33			71			708			612			16
Noninterest Revenue		1,281			1,145			1,231			1,024			1,036			12			24			4,681			4,039			16
Net Interest Income		649			603			510			502			501			8			30			2,264			2,070			9
TOTAL NET REVENUE		1,930			1,748			1,741			1,526			1,537			10			26			6,945			6,109			14
Provision for Credit Losses		4			9			–			6			(2	)		(56	)	NM				19			(1	)	NM
Credit Reimbursement to IB (a)		(30	)		(31	)		(30	)		(30	)		(31	)		3			3			(121	)		(121	)		–
NONINTEREST EXPENSE
Compensation Expense		607			579			609			558			555			5			9			2,353			2,198			7
Noncompensation Expense		598			538			523			502			533			11			12			2,161			1,995			8
Amortization of Intangibles		17			17			17			15			16			–			6			66			73			(10	)
TOTAL NONINTEREST EXPENSE		1,222			1,134			1,149			1,075			1,104			8			11			4,580			4,266			7
Income before Income Tax Expense		674			574			562			415			404			17			67			2,225			1,723			29
Income Tax Expense		252			214			210			152			148			18			70			828			633			31
NET INCOME	$	422		$	360		$	352		$	263		$	256			17			65		$	1,397		$	1,090			28
REVENUE BY BUSINESS
Treasury Services	$	824		$	780		$	720		$	689			700			6			18		$	3,013		$	2,792			8
Worldwide Securities Services		1,106			968			1,021			837			837			14			32			3,932			3,317			19
TOTAL NET REVENUE	$	1,930		$	1,748		$	1,741		$	1,526		$	1,537			10			26		$	6,945		$	6,109			14
FINANCIAL RATIOS
ROE		56	%		48	%		47	%		36	%		46	%								47	%		48	%
Overhead Ratio		63			65			66			70			72									66			70
Pretax Margin Ratio (b)		35			33			32			27			26									32			28
FIRMWIDE BUSINESS METRICS
Assets under Custody (in billions)	$	15,946		$	15,614		$	15,203		$	14,661		$	13,903			2			15		$	15,946		$	13,903			15
Number of:
US$ ACH transactions originated (in millions)		984	#		943	#		972	#		971	#		931	#		4			6			3,870	#		3,503	#		10
Total US$ Clearing Volume (in thousands)		28,386			28,031			27,779			26,840			26,906			1			6			111,036			104,846			6
International Electronic Funds Transfer Volume (in thousands) (c)		42,723			41,415			42,068			42,399			41,007			3			4			168,605			145,325			16
Wholesale Check Volume (in millions)		656			731			767			771			793			(10	)		(17	)		2,925			3,409			(14	)
Wholesale Cards Issued (in thousands) (d)		18,722			18,108			17,535			17,146			17,228			3			9			18,722			17,228			9

Page 19

JPMORGAN CHASE & CO.
TREASURY & SECURITIES SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except headcount and ratio data)

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
SELECTED BALANCE SHEETS (Average)
Total Assets	$	60,830		$	55,688		$	50,687		$	46,005		$	35,422			9	%		72	%	$	53,350		$	31,760			68	%
Loans		23,489			20,602			20,195			18,948			19,030			14			23			20,821			15,564			34
Liability Balances (e)		250,645			236,381			217,514			210,639			193,129			6			30			228,925			189,540			21
Equity		3,000			3,000			3,000			3,000			2,200			—			36			3,000			2,285			31
Headcount		25,669	#		25,209	#		25,206	#		24,875	#		25,423	#		2			1			25,669	#		25,423	#		1
TSS FIRMWIDE METRICS
Treasury Services Firmwide Revenue (f)	$	1,530		$	1,444		$	1,354		$	1,305		$	1,333			6			15		$	5,633		$	5,242			7
Treasury & Securities Services Firmwide Revenue (f)		2,636			2,412			2,375			2,142			2,170			9			21			9,565			8,559			12
Treasury Services Firmwide Overhead Ratio (g)		53	%		54	%		59	%		59	%		56	%								56	%		56	%
Treasury & Securities Services Firmwide Overhead Ratio (g)		57			59			60			63			63									60			62
Treasury Services Firmwide Liability Balances (Average) (h)	$	218,416		$	201,671		$	189,214		$	186,631		$	168,321			8			30		$	199,077		$	162,020			23
Treasury & Securities Services Firmwide Liability Balances (Average) (h)		347,361			324,462			301,701			292,391			272,178			7			28			316,651			262,678			21

FOOTNOTES

(a)	TSS was charged a credit reimbursement related to certain exposures managed within the IB credit portfolio on behalf of clients shared with TSS.
(b)	Pretax margin represents Income before income tax expense divided by Total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.
(c)	International electronic funds transfer includes non-US$ ACH and clearing volume.
(d)	Wholesale cards issued include domestic commercial card, stored value card, prepaid card, and government electronic benefit card products.
(e)	Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, Federal funds purchased, and repurchase agreements.

TSS FIRMWIDE METRICS

TSS 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 Treasury Services (“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.

(f) Firmwide revenue includes TS revenue recorded in the CB, Regional Banking and Asset Management (“AM”) lines of business (see below) and excludes FX revenues recorded in the IB for TSS-related FX activity.

	QUARTERLY TRENDS																FULL YEAR
											4Q07 Change										2007 Change
	4Q07		3Q07		2Q07		1Q07		4Q06		3Q07			4Q06			2007		2006		2006
TS Revenue Reported in CB	$	631	$	594	$	569	$	556	$	576		6	%		10	%	$	2,350	$	2,243		5	%
TS Revenue Reported in Other Lines of Business		75		70		65		60		57		7			32			270		207		30

TSS firmwide FX revenue, which included FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of the IB, was $157 million, $144 million, $139 million, $112 million, and $96 million for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, and $552 million and $445 million for full year 2007 and 2006, respectively.

(g)	Overhead ratios have been calculated based upon 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.
(h)	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 CB line of business are not included in TS liability balances.

Page 20

JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS

(in millions, except ratio, ranking and headcount data)

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Asset Management, Administration and Commissions	$	1,901		$	1,760		$	1,671		$	1,489		$	1,509			8	%		26	%	$	6,821		$	5,295			29	%
All Other Income		159			152			173			170			192			5			(17	)		654			521			26
Noninterest Revenue		2,060			1,912			1,844			1,659			1,701			8			21			7,475			5,816			29
Net Interest Income		329			293			293			245			246			12			34			1,160			971			19
TOTAL NET REVENUE		2,389			2,205			2,137			1,904			1,947			8			23			8,635			6,787			27
Provision for Credit Losses		(1	)		3			(11	)		(9	)		14			NM			NM			(18	)		(28	)		36
NONINTEREST EXPENSE
Compensation Expense		1,030			848			879			764			750			21			37			3,521			2,777			27
Noncompensation Expense		510			498			456			451			512			2			—			1,915			1,713			12
Amortization of Intangibles		19			20			20			20			22			(5	)		(14	)		79			88			(10	)
TOTAL NONINTEREST EXPENSE		1,559			1,366			1,355			1,235			1,284			14			21			5,515			4,578			20
Income Before Income Tax Expense		831			836			793			678			649			(1	)		28			3,138			2,237			40
Income Tax Expense		304			315			300			253			242			(3	)		26			1,172			828			42
NET INCOME	$	527		$	521		$	493		$	425		$	407			1			29		$	1,966		$	1,409			40
REVENUE BY CLIENT SEGMENT
Institutional	$	754		$	603		$	617		$	551		$	624			25			21		$	2,525		$	1,972			28
Private Bank		713			686			646			560			528			4			35			2,605			1,907			37
Retail		640			639			602			527			541			—			18			2,408			1,885			28
Private Client Services		282			277			272			266			254			2			11			1,097			1,023			7
Total Net Revenue	$	2,389		$	2,205		$	2,137		$	1,904		$	1,947			8			23		$	8,635		$	6,787			27
FINANCIAL RATIOS
ROE		52	%		52	%		53	%		46	%		46	%								51	%		40	%
Overhead Ratio		65			62			63			65			66									64			67
Pretax Margin Ratio (a)		35			38			37			36			33									36			33
BUSINESS METRICS
Number of:
Client Advisors		1,729	#		1,680	#		1,582	#		1,533	#		1,506	#		3			15			1,729	#		1,506	#		15
Retirement Planning Services Participants		1,501,000			1,495,000			1,477,000			1,423,000			1,362,000			—			10			1,501,000			1,362,000			10
% of Customer Assets in 4 & 5 Star Funds (b)		55	%		55	%		65	%		61	%		58	%		—			(5	)		55	%		58	%		(5	)
% of AUM in 1st and 2nd Quartiles: (c)
1 Year		57	%		47	%		65	%		76	%		83	%		21			(31	)		57	%		83	%		(31	)
3 Years		75	%		73	%		77	%		76	%		77	%		3			(3	)		75	%		77	%		(3	)
5 Years		76	%		76	%		76	%		81	%		79	%		—			(4	)		76	%		79	%		(4	)
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	55,989		$	53,879		$	51,710		$	45,816		$	46,716			4			20		$	51,882		$	43,635			19
Loans (d)		32,627			30,928			28,695			25,640			28,917			5			13			29,496			26,507			11
Deposits		64,630			59,907			55,981			54,816			51,341			8			26			58,863			50,607			16
Equity		4,000			4,000			3,750			3,750			3,500			—			14			3,876			3,500			11
Headcount		14,799	#		14,510	#		14,108	#		13,568	#		13,298	#		2			11			14,799	#		13,298	#		11
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	2		$	(5	)	$	(5	)	$	—		$	2			NM			—		$	(8	)	$	(19	)		58
Nonperforming Loans		12			28			21			34			39			(57	)		(69	)		12			39			(69	)
Allowance for Loan Losses		112			115			105			114			121			(3	)		(7	)		112			121			(7	)
Allowance for Lending Related Commitments		7			6			7			5			6			17			17			7			6			17
Net Charge-off (Recovery) Rate		0.02	%		(0.06	)%		(0.07	)%		—	%		0.03	%								(0.03	)%		(0.07	)%
Allowance for Loan Losses to Average Loans		0.34			0.37			0.37			0.44			0.42									0.38			0.46
Allowance for Loan Losses to Nonperforming Loans		933			411			500			335			310									933			310
Nonperforming Loans to Average Loans		0.04			0.09			0.07			0.13			0.13									0.04			0.15

(a)	Pretax margin represents income before income tax expense divided by Total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.
(b)	Derived from Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.
(c)	Quartile rankings sourced from Lipper for the United States and Taiwan; Micropal for the United Kingdom, Luxembourg and Hong Kong; and Nomura for Japan.
(d)	Held-for-investment prime mortgage loans that were transferred from AM to Treasury within the Corporate segment during the third and first quarters of 2007 totaled $1.2 billion and $5.3 billion, respectively. There were no transfers during the fourth or second quarters of 2007 or the full year 2006. The transfer had no material impact on the financial results of AM.

Page 21

JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED

(in billions)

											Dec 31, 2007
											Change
	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30			Dec 31
	2007		2007		2007		2007		2006		2007			2006
Assets by Asset Class
Liquidity	$	400	$	368	$	333	$	318	$	311		9	%		29	%
Fixed Income		200		195		190		180		175		3			14
Equities & Balanced		472		481		467		446		427		(2	)		11
Alternatives		121		119		119		109		100		2			21
TOTAL ASSETS UNDER MANAGEMENT		1,193		1,163		1,109		1,053		1,013		3			18
Custody / Brokerage / Administration / Deposits		379		376		363		342		334		1			13
TOTAL ASSETS UNDER SUPERVISION	$	1,572	$	1,539	$	1,472	$	1,395	$	1,347		2			17
Assets by Client Segment
Institutional	$	632	$	603	$	565	$	550	$	538		5			17
Private Bank		201		196		185		170		159		3			26
Retail		300		304		300		274		259		(1	)		16
Private Client Services		60		60		59		59		57		—			5
TOTAL ASSETS UNDER MANAGEMENT	$	1,193	$	1,163	$	1,109	$	1,053	$	1,013		3			18
Institutional	$	633	$	604	$	566	$	551	$	539		5			17
Private Bank		433		423		402		374		357		2			21
Retail		394		399		393		361		343		(1	)		15
Private Client Services		112		113		111		109		108		(1	)		4
TOTAL ASSETS UNDER SUPERVISION	$	1,572	$	1,539	$	1,472	$	1,395	$	1,347		2			17
Assets by Geographic Region
U.S. / Canada	$	760	$	745	$	700	$	664	$	630		2			21
International		433		418		409		389		383		4			13
TOTAL ASSETS UNDER MANAGEMENT	$	1,193	$	1,163	$	1,109	$	1,053	$	1,013		3			18
U.S. / Canada	$	1,032	$	1,022	$	971	$	929	$	889		1			16
International		540		517		501		466		458		4			18
TOTAL ASSETS UNDER SUPERVISION	$	1,572	$	1,539	$	1,472	$	1,395	$	1,347		2			17
Mutual Funds Assets by Asset Class
Liquidity	$	339	$	308	$	268	$	257	$	255		10			33
Fixed Income		46		46		49		48		46		—			—
Equity		224		235		235		219		206		(5	)		9
TOTAL MUTUAL FUND ASSETS	$	609	$	589	$	552	$	524	$	507		3			20

Page 22

JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED

(in billions)

	QUARTERLY TRENDS												FULL YEAR
	4Q07			3Q07			2Q07		1Q07		4Q06		2007		2006
ASSETS UNDER SUPERVISION (continued)
Assets Under Management Rollforward
Beginning Balance	$	1,163		$	1,109		$	1,053	$	1,013	$	935	$	1,013	$	847
Flows:
Liquidity		26			33			12		7		24		78		44
Fixed Income		3			(2	)		6		2		1		9		11
Equities, Balanced & Alternatives		4			2			12		10		5		28		34
Market / Performance / Other Impacts		(3	)		21			26		21		48		65		77
TOTAL ASSETS UNDER MANAGEMENT	$	1,193		$	1,163		$	1,109	$	1,053	$	1,013	$	1,193	$	1,013
Assets Under Supervision Rollforward
Beginning Balance	$	1,539		$	1,472		$	1,395	$	1,347	$	1,265	$	1,347	$	1,149
Net Asset Flows		37			41			38		27		31		143		102
Market / Performance / Other Impacts		(4	)		26			39		21		51		82		96
TOTAL ASSETS UNDER SUPERVISION	$	1,572		$	1,539		$	1,472	$	1,395	$	1,347	$	1,572	$	1,347

Page 23

JPMORGAN CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS

(in millions, except headcount data)

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Principal Transactions (a) (b)	$	773		$	1,082		$	1,372		$	1,325		$	236			(29	)%		228	%	$	4,552		$	1,181			285	%
Securities Gains (Losses)		146			128			(227	)		(8	)		18			14			NM			39			(608	)		NM
All Other Income		213			70			90			68			27			204			NM			441			485			(9	)
Noninterest Revenue		1,132			1,280			1,235			1,385			281			(12	)		303			5,032			1,058			376
Net Interest Income (Expense)		(218	)		(279	)		(173	)		(117	)		(87	)		22			(151	)		(787	)		(1,044	)		25
TOTAL NET REVENUE		914			1,001			1,062			1,268			194			(9	)		371			4,245			14			NM
Provision for Credit Losses		14			(31	)		3			3			(2	)		NM			NM			(11	)		(1	)		NM
NONINTEREST EXPENSE
Compensation Expense (b)		714			569			695			776			434			25			65			2,754			2,626			5
Noncompensation Expense (c)		982			674			818			556			678			46			45			3,030			2,357			29
Merger Costs		22			61			64			62			100			(64	)		(78	)		209			305			(31	)
Subtotal		1,718			1,304			1,577			1,394			1,212			32			42			5,993			5,288			13
Net Expenses Allocated to Other Businesses		(1,057	)		(1,059	)		(1,075	)		(1,040	)		(1,037	)		—			(2	)		(4,231	)		(4,141	)		(2	)
TOTAL NONINTEREST EXPENSE		661			245			502			354			175			170			278			1,762			1,147			54
Income (Loss) from Continuing Operations before Income Tax Expense		239			787			557			911			21			(70	)		NM			2,494			(1,132	)		NM
Income Tax Expense (Benefit) (d)		(10	)		274			175			280			(520	)		NM			98			719			(1,179	)		NM
Income (Loss) from Continuing Operations		249			513			382			631			541			(51	)		(54	)		1,775			47			NM
Income from Discontinued Operations (e)		—			—			—			—			620			—			NM			—			795			NM
NET INCOME (LOSS)	$	249		$	513		$	382		$	631		$	1,161			(51	)		(79	)	$	1,775		$	842			111
MEMO:
TOTAL NET REVENUE
Private Equity (a) (b)	$	688		$	733		$	1,293		$	1,253		$	250			(6	)		175		$	3,967		$	1,142			247
Treasury and Other Corporate		226			268			(231	)		15			(56	)		(16	)		NM			278			(1,128	)		NM
TOTAL NET REVENUE	$	914		$	1,001		$	1,062		$	1,268		$	194			(9	)		371		$	4,245		$	14			NM
NET INCOME (LOSS)
Private Equity (a)	$	356		$	409		$	702		$	698		$	136			(13	)		162		$	2,165		$	627			245
Treasury and Other Corporate (c) (d)		(93	)		142			(280	)		(29	)		467			NM			NM			(260	)		(391	)		34
Merger Costs		(14	)		(38	)		(40	)		(38	)		(62	)		63			77			(130	)		(189	)		31
Income (Loss) from Continuing Operations		249			513			382			631			541			(51	)		(54	)		1,775			47			NM
Income from Discontinued Operations		—			—			—			—			620			—			NM			—			795			NM
TOTAL NET INCOME (LOSS)	$	249		$	513		$	382		$	631		$	1,161			(51	)		(79	)	$	1,775		$	842			111
Headcount		22,512	#		22,864	#		23,532	#		23,702	#		23,242	#		(2	)		(3	)		22,512	#		23,242	#		(3	)

(a)	The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see the Firm’s September 30, 2007, Form 10-Q.
(b)	The 2007 quarters and full year included the reclassification of certain private equity carried interest from net revenue to compensation expense.
(c)	Included insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material proceedings of $137 million for the quarter ended December 31, 2006. Insurance recoveries were $512 million for full year 2006.
(d)	Included a tax benefit of $359 million related to audit resolutions in the fourth quarter of 2006.
(e)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses were reported as discontinued operations for 2006. Included $622 million gain on sale in the fourth quarter of 2006.

Page 24

JPMORGAN CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)

	QUARTERLY TRENDS																				FULL YEAR
															4Q07 Change												2007 Change
	4Q07			3Q07		2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
SUPPLEMENTAL
TREASURY
Securities Gains (Losses) (a)	$	146		$	126	$	(227	)	$	(8	)	$	7			16	%		NM	%	$	37		$	(619	)		NM	%
Investment Securities Portfolio (Average)		82,445			85,470		87,760			86,436			80,616			(4	)		2			85,517			63,361			35
Investment Securities Portfolio (Ending)		76,200			86,495		86,821			88,681			82,091			(12	)		(7	)		76,200			82,091			(7	)
Mortgage Loans (Average) (b)		34,436			29,854		26,830			25,244			—			15			NM			29,118			—			NM
Mortgage Loans (Ending) (b)		36,942			32,804		27,299			26,499			—			13			NM			36,942			—			NM
PRIVATE EQUITY
Private Equity Gains (Losses)
Direct Investments
Realized Gains	$	100		$	504	$	985		$	723		$	254			(80	)		(61	)	$	2,312		$	1,223			89
Write-ups / (Write-downs) (c)		577			222		209			648			12			160			NM			1,656			(73	)		NM
Mark-to-Market Gains (Losses)		(8	)		5		81			(127	)		(6	)		NM			(33	)		(49	)		72			NM
Total Direct Investments		669			731		1,275			1,244			260			(8	)		157			3,919			1,222			221
Third-Party Fund Investments		43			35		53			34			27			23			59			165			77			114
Total Private Equity Gains (d)	$	712		$	766	$	1,328		$	1,278		$	287			(7	)		148		$	4,084		$	1,299			214
Private Equity Portfolio Information
Direct Investments
Publicly-Held Securities
Carrying Value	$	390		$	409	$	465		$	389		$	587			(5	)		(34	)
Cost		288			291		367			366			451			(1	)		(36	)
Quoted Public Value		536			560		600			493			831			(4	)		(35	)
Privately-Held Direct Securities
Carrying Value		5,914			5,336		5,247			5,294			4,692			11			26
Cost		4,867			5,003		5,228			5,574			5,795			(3	)		(16	)
Third-Party Fund Investments
Carrying Value		849			839		812			744			802			1			6
Cost		1,076			1,078		1,067			1,026			1,080			—			—
Total Private Equity Portfolio — Carrying Value	$	7,153		$	6,584	$	6,524		$	6,427		$	6,081			9			18
Total Private Equity Portfolio — Cost	$	6,231		$	6,372	$	6,662		$	6,966		$	7,326			(2	)		(15	)

(a)	Losses reflected repositioning of the Treasury investment securities portfolio. Excludes gains/losses on securities used to manage risk associated with MSRs.
(b)	Held-for-investment prime mortgage loans were transferred from RFS and AM to the Corporate segment for risk management and reporting purposes. The transfers had no material impact on the financial results of Corporate.
(c)	The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see the Firm’s September 30, 2007, Form 10-Q. The 2007 quarters and full year included the reclassification of certain private equity carried interest from Total net revenue to Compensation expense.
(d)	Included in Principal Transactions revenue in the Consolidated statements of income.

Page 25

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION

(in millions)

											Dec 31, 2007
											Change
	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30			Dec 31
	2007		2007		2007		2007		2006		2007			2006
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	133,253	$	126,343	$	111,082	$	108,627	$	118,686		5	%		12	%
Loans — Non-U.S.		79,823		71,385		70,886		59,567		65,056		12			23
TOTAL WHOLESALE LOANS — REPORTED (b)		213,076		197,728		181,968		168,194		183,742		8			16
CONSUMER (c)
Home Equity		94,832		93,026		90,989		87,741		85,730		2			11
Mortgage (includes RFS and Corporate)		56,031		47,730		43,114		46,574		59,668		17			(6	)
Auto Loans and Leases		42,350		40,871		41,231		40,937		41,009		4			3
Credit Card — Reported		84,352		79,409		80,495		78,173		85,881		6			(2	)
Other Loans		28,733		27,556		27,240		28,146		27,097		4			6
TOTAL CONSUMER LOANS — REPORTED (d)		306,298		288,592		283,069		281,571		299,385		6			2
TOTAL LOANS — REPORTED		519,374		486,320		465,037		449,765		483,127		7			8
Credit Card — Securitizations		72,701		69,643		67,506		68,403		66,950		4			9
TOTAL LOANS — MANAGED		592,075		555,963		532,543		518,168		550,077		6			8
Derivative Receivables		77,136		64,592		59,038		49,647		55,601		19			39
TOTAL CREDIT-RELATED ASSETS		669,211		620,555		591,581		567,815		605,678		8			10
Wholesale Lending-Related Commitments		446,652		468,145		435,718		412,382		391,424		(5	)		14
TOTAL	$	1,115,863	$	1,088,700	$	1,027,299	$	980,197	$	997,102		2			12
Memo: Total by Category
Total Wholesale Exposure (e)	$	736,864	$	730,465	$	676,724	$	630,223	$	630,767		1			17
Total Consumer Managed Loans (f)		378,999		358,235		350,575		349,974		366,335		6			3
Total	$	1,115,863	$	1,088,700	$	1,027,299	$	980,197	$	997,102		2			12
Risk Profile of Wholesale Credit Exposure:
Investment-Grade (g)	$	571,394	$	548,663	$	532,134	$	487,309	$	490,185		4			17
Noninvestment-Grade: (g)
Noncriticized		134,983		155,172		127,818		121,981		113,049		(13	)		19
Criticized Performing		6,267		5,605		4,964		5,090		4,599		12			36
Criticized Nonperforming		571		414		252		263		427		38			34
Total Noninvestment-Grade		141,821		161,191		133,034		127,334		118,075		(12	)		20
Loans Held-for-Sale & Loans at Fair Value		23,649		20,611		11,556		15,580		22,256		15			6
Purchased Nonperforming Wholesale Loans (h)		—		—		—		—		251		—			NM
Total Wholesale Exposure	$	736,864	$	730,465	$	676,724	$	630,223	$	630,767		1			17

(a)	Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management.
(b)	Includes Loans held-for-sale & loans at fair value. As a result of the adoption of SFAS 159 in the first quarter of 2007, $11.7 billion of IB loans were reclassified to Trading assets and excluded from wholesale loans reported.
(c)	Includes Retail Financial Services, Card Services and residential mortgage loans reported in the Corporate segment to be risk managed by the Chief Investment Office.
(d)	As a result of the adoption of SFAS 159, certain IB loans are accounted for at fair value and reported in Trading assets and therefore, are no longer included in Loans beginning January 1, 2007.
(e)	Represents Total Wholesale Loans, Derivative Receivables and Wholesale Lending-Related Commitments.
(f)	Represents Total Consumer Loans plus Credit Card Securitizations, and excludes consumer lending-related commitments.
(g)	Excludes Loans held-for-sale & loans at fair value.
(h)	Represents distressed held-for-sale wholesale loans purchased as part of IB’s proprietary activities, which were excluded from nonperforming assets. During the first quarter of 2007, the Firm elected the fair value option of accounting for this portfolio of nonperforming loans. These loans were classified as trading assets for quarters ending on or after March 31, 2007.

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 26

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)

																Dec 31, 2007
																Change
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Dec 31
	2007			2007			2007			2007			2006			2007			2006
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS (a)
Loans — U.S.	$	490		$	401		$	190		$	205		$	309			22	%		59	%
Loans — Non-U.S.		24			26			38			62			82			(8	)		(71	)
TOTAL WHOLESALE LOANS-REPORTED		514			427			228			267			391			20			31
CONSUMER LOANS (b)
Home Equity		810			576			483			459			454			41			78
Mortgage (includes RFS and Corporate)		1,798			1,224			1,034			960			769			47			134
Auto Loans and Leases		116			92			81			95			132			26			(12	)
Credit Card — Reported		7			7			8			9			9			—			(22	)
Other Loans		341			336			335			326			322			1			6
TOTAL CONSUMER LOANS-REPORTED (c)		3,072			2,235			1,941			1,849			1,686			37			82
TOTAL LOANS REPORTED		3,586			2,662			2,169			2,116			2,077			35			73
Derivative Receivables		29			34			30			36			36			(15	)		(19	)
Assets Acquired in Loan Satisfactions		622			485			387			269			228			28			173
TOTAL NONPERFORMING ASSETS	$	4,237		$	3,181		$	2,586		$	2,421		$	2,341			33			81
TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.69	%		0.55	%		0.47	%		0.47	%		0.43	%
NONPERFORMING ASSETS BY LOB
Investment Bank	$	453		$	325		$	119		$	128		$	269			39			68
Retail Financial Services		3,121			2,387			2,097			1,910			1,902			31			64
Card Services		7			7			8			9			9			—			(22	)
Commercial Banking		148			136			137			142			122			9			21
Treasury & Securities Services		—			—			—			—			—			—
Asset Management		12			28			21			35			39			(57	)		(69	)
Corporate (d)		496			298			204			197			—			66			NM
TOTAL	$	4,237		$	3,181		$	2,586		$	2,421		$	2,341			33			81

(a)	Included nonperforming loans held-for-sale of $45 million, $75 million, $25 million, $4 million, and $4 million at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. Excluded purchased held-for-sale wholesale loans.
(b)	There were no nonperforming loans held-for-sale at December 31, 2007 and September 30, 2007, while there were $215 million, $112 million, and $116 million at June 30, 2007, March 31, 2007, and December 31, 2006, respectively.
(c)	Nonperforming loans and assets excluded (1) loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by U.S. government agencies of $1.5 billion, $1.3 billion, $1.2 billion, $1.3 billion, and $1.2 billion at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, and (2) education loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $279 million, $241 million, $200 million, $178 million, and $219 million at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.
(d)	Primarily relates to held-for-investment prime mortgage loans transferred from RFS and AM to the Corporate segment.

Page 27

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
GROSS CHARGE-OFFS
Wholesale Loans	$	54		$	101		$	13		$	17		$	76			(47	)%		(29	)%	$	185		$	186			(1	)%
Consumer (includes RFS and Corporate)		582			403			321			241			266			44			119			1,547			802			93
Credit Card — Reported		1,000			911			877			847			801			10			25			3,635			2,896			26
Total Loans — Reported		1,636			1,415			1,211			1,105			1,143			16			43			5,367			3,884			38
Credit Card — Securitizations		716			679			704			702			694			5			3			2,801			2,579			9
Total Loans — Managed		2,352			2,094			1,915			1,807			1,837			12			28			8,168			6,463			26
RECOVERIES
Wholesale Loans		29			19			42			23			48			53			(40	)		113			208			(46	)
Consumer (includes RFS and Corporate)		47			49			48			53			52			(4	)		(10	)		197			226			(13	)
Credit Card — Reported		131			126			136			126			113			4			16			519			408			27
Total Loans — Reported		207			194			226			202			213			7			(3	)		829			842			(2	)
Credit Card — Securitizations		97			101			114			109			101			(4	)		(4	)		421			369			14
Total Loans — Managed		304			295			340			311			314			3			(3	)		1,250			1,211			3
NET CHARGE-OFFS
Wholesale Loans		25			82			(29	)		(6	)		28			(70	)		(11	)		72			(22	)		NM
Consumer (includes RFS and Corporate)		535			354			273			188			214			51			150			1,350			576			134
Credit Card — Reported		869			785			741			721			688			11			26			3,116			2,488			25
Total Loans — Reported		1,429			1,221			985			903			930			17			54			4,538			3,042			49
Credit Card — Securitizations		619			578			590			593			593			7			4			2,380			2,210			8
Total Loans — Managed	$	2,048		$	1,799		$	1,575		$	1,496		$	1,523			14			34		$	6,918		$	5,252			32
NET CHARGE-OFF RATES — ANNUALIZED
Wholesale Loans (a)		0.05	%		0.19	%		(0.07	)%		(0.02	)%		0.07	%								0.04	%		(0.01	)%
Consumer (includes RFS and Corporate) (b)		1.01			0.70			0.57			0.47			0.45									0.69			0.31
Credit Card — Reported		4.36			3.89			3.76			3.57			3.35									3.90			3.37
Total Loans — Reported (a) (b)		1.19			1.07			0.90			0.85			0.84									1.00			0.73
Credit Card — Securitizations		3.38			3.34			3.46			3.56			3.57									3.43			3.28
Total Loans — Managed (a) (b)		1.48			1.37			1.25			1.22			1.20									1.33			1.09
Memo: Credit Card — Managed		3.89			3.64			3.62			3.57			3.45									3.68			3.33

(a)

Average wholesale Loans held-for-sale & loans at fair value were $26.8 billion, $17.8 billion, $15.5 billion, $14.2 billion, and $24.5 billion for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, and $18.6 billion and $22.2 billion for full year 2007 and 2006, respectively. These amounts were excluded when calculating the net charge-off rates.

(b)

Average consumer (excluding card) Loans held-for-sale & loans at fair value were $4.0 billion, $5.4 billion, $11.7 billion, $21.7 billion, and $21.2 billion for the quarters ended December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, and $10.6 billion and $16.1 billion for full year 2007 and 2006, respectively. These amounts were excluded when calculating the net charge-off rates.

Page 28

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	8,113		$	7,633		$	7,300		$	7,279		$	7,056			6	%		15	%	$	7,279		$	7,090			3	%
Net Charge-Offs		(1,429	)		(1,221	)		(985	)		(903	)		(930	)		(17	)		(54	)		(4,538	)		(3,042	)		(49	)
Provision for Loan Losses		2,550			1,693			1,316			979			1,085			51			135			6,538			3,153			107
Other (a) (b)		—			8			2			(55	)		68			NM			NM			(45	)		78			NM
Ending Balance	$	9,234		$	8,113		$	7,633		$	7,300		$	7,279			14			27		$	9,234		$	7,279			27
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	858		$	766		$	553		$	524		$	468			12			83		$	524		$	400			31
Provision for Lending-Related Commitments		(8	)		92			213			29			49			NM			NM			326			117			179
Other (b)		—			—			—			—			7			—			NM			—			7			NM
Ending Balance	$	850		$	858		$	766		$	553		$	524			(1	)		62		$	850		$	524			62
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset Specific	$	108		$	53		$	52		$	54		$	51			104			112
Formula — Based		3,046			2,810			2,650			2,639			2,660			8			15
Total Wholesale		3,154			2,863			2,702			2,693			2,711			10			16
Consumer
Asset Specific	$	80		$	70		$	81		$	70		$	67			14			19
Formula — Based		6,000			5,180			4,850			4,537			4,501			16			33
Total Consumer (c)		6,080			5,250			4,931			4,607			4,568			16			33
Total Allowance for Loan Losses		9,234			8,113			7,633			7,300			7,279			14			27
Allowance for Lending-Related Commitments		850			858			766			553			524			(1	)		62
Total Allowance for Credit Losses	$	10,084		$	8,971		$	8,399		$	7,853		$	7,803			12			29
Wholesale Allowance for Loan Losses to Total Wholesale Loans (d)		1.67	%		1.62	%		1.59	%		1.76	%		1.68	%
Consumer Allowance for Loan Losses to Total Consumer Loans (e)		2.01			1.84			1.79			1.72			1.71
Allowance for Loan Losses to Total Loans (d) (e)		1.88			1.76			1.71			1.74			1.70
Allowance for Loan Losses to Total Nonperforming Loans (f)		261			314			396			365			372
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,329		$	1,112		$	1,037		$	1,037		$	1,052			20			26
Retail Financial Services		2,634			2,105			1,772			1,453			1,392			25			89
Card Services		3,407			3,107			3,096			3,092			3,176			10			7
Commercial Banking		1,695			1,623			1,551			1,531			1,519			4			12
Treasury & Securities Services		18			13			9			11			7			38			157
Asset Management		112			115			105			114			121			(3	)		(7	)
Corporate (g)		39			38			63			62			12			3			225
Total	$	9,234		$	8,113		$	7,633		$	7,300		$	7,279			14			27

(a)	First quarter of 2007 primarily relates to the Firm’s adoption of SFAS 159, effective January 1, 2007.
(b)	Fourth quarter and full year 2006 primarily reflect The Bank of New York transaction.
(c)	Includes RFS, Card Services and Corporate.
(d)	Wholesale Loans held-for-sale & loans at fair value were $23.6 billion, $20.6 billion, $11.6 billion, $15.6 billion, and $22.5 billion at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(e)	Consumer Loans held-for-sale were $4.0 billion, $3.9 billion, $8.3 billion, $13.4 billion, and $32.7 billion at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(f)	Nonperforming Loans held-for-sale were $45 million, $75 million, $240 million, $116 million, and $120 million at December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(g)	March 31, 2007 included $50 million associated with mortgages originated by RFS and AM and transferred to Corporate to be risk managed by the Chief Investment Office.

Page 29

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED

(in millions)

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	208		$	146		$	(13	)	$	35		$	50			42	%		316	%	$	376		$	112			236	%
Commercial Banking		105			98			10			17			86			7			22			230			133			73
Treasury & Securities Services		5			3			(1	)		4			(2	)		67			NM			11			(1	)		NM
Asset Management		(2	)		4			(13	)		(8	)		12			NM			NM			(19	)		(30	)		37
Corporate		—			—			—			—			(2	)		—			NM			—			(1	)		NM
Total Wholesale		316			251			(17	)		48			144			26			119			598			213			181
Retail Financial Services		1,051			688			589			292			253			53			315			2,620			552			375
Card Services		1,169			785			741			636			688			49			70			3,331			2,388			39
Corporate (a)		14			(31	)		3			3			—			NM			NM			(11	)		—			NM
Total Consumer		2,234			1,442			1,333			931			941			55			137			5,940			2,940			102
Total Provision for Loan Losses	$	2,550		$	1,693		$	1,316		$	979		$	1,085			51			135		$	6,538		$	3,153			107
LENDING-RELATED COMMITMENTS
Investment Bank	$	(8	)	$	81		$	177		$	28		$	13			NM			NM		$	278		$	79			252
Commercial Banking		—			14			35			—			25			NM			NM			49			27			81
Treasury & Securities Services		(1	)		6			1			2			—			NM			NM			8			—			NM
Asset Management		1			(1	)		2			(1	)		2			NM			(50	)		1			2			(50	)
															��
Total Wholesale		(8	)		100			215			29			40			NM			NM			336			108			211
Retail Financial Services		—			(8	)		(2	)		—			9			NM			NM			(10	)		9			NM
Card Services		—			—			—			—			—			—			—			—			—			—
Total Consumer		—			(8	)		(2	)		—			9			NM			NM			(10	)		9			NM
Total Provision for Lending-Related Commitments	$	(8	)	$	92		$	213		$	29		$	49			NM			NM		$	326		$	117			179
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	200		$	227		$	164		$	63		$	63			(12	)		217		$	654		$	191			242
Commercial Banking		105			112			45			17			111			(6	)		(5	)		279			160			74
Treasury & Securities Services		4			9			—			6			(2	)		(56	)		NM			19			(1	)		NM
Asset Management		(1	)		3			(11	)		(9	)		14			NM			NM			(18	)		(28	)		36
Corporate		—			—			—			—			(2	)		—			NM			—			(1	)		NM
Total Wholesale		308			351			198			77			184			(12	)		67			934			321			191
Retail Financial Services		1,051			680			587			292			262			55			301			2,610			561			365
Card Services		1,169			785			741			636			688			49			70			3,331			2,388			39
Corporate (a)		14			(31	)		3			3			—			NM			NM			(11	)		—			NM
Total Consumer		2,234			1,434			1,331			931			950			56			135			5,930			2,949			101
Total Provision for Credit Losses		2,542			1,785			1,529			1,008			1,134			42			124			6,864			3,270			110
Securitized Credit Losses		619			578			590			593			593			7			4			2,380			2,210			8
Managed Provision for Credit Losses	$	3,161		$	2,363		$	2,119		$	1,601		$	1,727			34			83		$	9,244		$	5,480			69

(a) Includes amounts related to held-for-investment prime mortgages transferred from RFS and AM to the Corporate segment during 2007.

Page 30

JPMORGAN CHASE & CO.
CAPITAL

(in millions, except per share and ratio data)

	QUARTERLY TRENDS																					FULL YEAR
																4Q07 Change												2007 Change
	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06			2007			2006			2006
COMMON SHARES OUTSTANDING
Weighted-Average Basic Shares Outstanding		3,367.1	#		3,375.9	#		3,415.1	#		3,456.4	#		3,465.3	#		—	%		(3	)%		3,403.6	#		3,470.1	#		(2	)%
Weighted-Average Diluted Shares Outstanding		3,471.8			3,477.7			3,521.6			3,559.5			3,578.6			—			(3	)		3,507.6			3,573.9			(2	)
Common Shares Outstanding — at Period End		3,367.4			3,358.8			3,398.5			3,416.3			3,461.7			—			(3	)		3,367.4			3,461.7			(3	)
Cash Dividends Declared per Share	$	0.38		$	0.38		$	0.38		$	0.34		$	0.34			—			12		$	1.48		$	1.36			9
Book Value per Share		36.59			35.72			35.08			34.45			33.45			2			9			36.59			33.45			9
Dividend Payout (a)		44	%		39	%		31	%		25	%		27	%								34	%		34	%
NET INCOME	$	2,971		$	3,373		$	4,234		$	4,787		$	4,526			(12	)		(34	)	$	15,365		$	14,444			6
Preferred Dividends		—			—			—			—			—									—			4
Net Income Applicable to Common Stock	$	2,971		$	3,373		$	4,234		$	4,787		$	4,526			(12	)		(34	)	$	15,365		$	14,440			6
INCOME PER SHARE										��
Basic Earnings per Share
Income from continuing operations	$	0.88		$	1.00		$	1.24		$	1.38		$	1.13			(12	)		(22	)	$	4.51		$	3.93			15
Net Income		0.88			1.00			1.24			1.38			1.31			(12	)		(33	)		4.51			4.16			8
Diluted Earnings per Share
Income from continuing operations	$	0.86		$	0.97		$	1.20		$	1.34		$	1.09			(11	)		(21	)	$	4.38		$	3.82			15
Net Income		0.86			0.97			1.20			1.34			1.26			(11	)		(32	)		4.38			4.04			8
SHARE PRICE
High	$	48.02		$	50.48		$	53.25		$	51.95		$	49.00			(5	)		(2	)	$	53.25		$	49.00			9
Low		40.15			42.16			47.70			45.91			45.51			(5	)		(12	)		40.15			37.88			6
Close		43.65			45.82			48.45			48.38			48.30			(5	)		(10	)		43.65			48.30			(10	)
Market Capitalization		146,986			153,901			164,659			165,280			167,199			(4	)		(12	)		146,986			167,199			(12	)
STOCK REPURCHASE PROGRAM (b)
Aggregate Repurchases	$	163.3		$	2,135.4		$	1,875.3		$	4,000.9		$	1,000.3			(92	)		(84	)	$	8,174.9		$	3,936.1			108
Common Shares Repurchased		3.6	#		47.0	#		36.7	#		80.9	#		21.1	#		(92	)		(83	)		168.2	#		90.7	#		85
Average Purchase Price	$	45.29		$	45.42		$	51.13		$	49.45		$	47.33			—			(4	)	$	48.60		$	43.41			12
CAPITAL RATIOS
Tier 1 Capital	$	88,703	(c)	$	86,096		$	85,096		$	82,538		$	81,055			3			9
Total Capital		132,242	(c)		128,543			122,276			115,142			115,265			3			15
Risk-Weighted Assets		1,050,112	(c)		1,028,551			1,016,031			972,813			935,909			2			12
Adjusted Average Assets		1,473,541	(c)		1,423,171			1,376,727			1,324,145			1,308,699			4			13
Tier 1 Capital Ratio		8.4	%(c)		8.4	%		8.4	%		8.5	%		8.7	%
Total Capital Ratio		12.6	(c)		12.5			12.0			11.8			12.3
Tier 1 Leverage Ratio		6.0	(c)		6.0			6.2			6.2			6.2
INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	45,270		$	45,335		$	45,254		$	45,063		$	45,186			—			—
Mortgage Servicing Rights		8,632			9,114			9,499			7,937			7,546			(5	)		14
Purchased Credit Card Relationships		2,303			2,427			2,591			2,758			2,935			(5	)		(22	)
All Other Intangibles		3,796			3,959			4,103			4,205			4,371			(4	)		(13	)
Total Intangibles	$	60,001		$	60,835		$	61,447		$	59,963		$	60,038			(1	)		—

(a)	Based on Net income amounts.
(b)	Excludes commission costs.
(c)	Estimated.

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JPMORGAN CHASE & CO.
Glossary of Terms

ACH:Automated Clearing House

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

Beneficial interest issued by consolidated VIEs:Represents the interest of third-party holders of debt/equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates under FIN 46R. The underlying obligations of the VIEs consist of short-term borrowings, commercial paper and long-term debt. The related assets consist of trading assets, available- for-sale securities, loans and other assets.

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 Other, which includes other centrally managed expenses and discontinued operations.

Credit Card Securitizations:Card Services’ managed results excludes the impact of credit card securitizations on Total net revenue, the Provision for credit losses, net charge-offs and Loan receivables. Through securitization, the Firm transforms a portion of its credit card receivables into securities, which are sold to investors. The credit card receivables are removed from the Consolidated balance sheets through the transfer of the receivables to a trust, and the sale of undivided interests to investors that entitle the investors to specific cash flows generated from the credit card receivables. The Firm retains the remaining undivided interests as seller’s interests, which are recorded in Loans on the Consolidated balance sheets. A gain or loss on the sale of credit card receivables to investors is recorded in Other Income. Securitization also affects the Firm’s Consolidated statements of income as the aggregate amount of interest income, certain fee revenue and recoveries that is in excess of the aggregate amount of interest paid to the investors, gross credit losses and other trust expenses related to the securitized receivables are reclassified into Credit card income in the Consolidated statements of income.

Discontinued operations:A component of an entity that is classified as held-for-sale or that has been disposed of from ongoing operations in its entirety or piecemeal, and for which the entity will not have any significant, continuing involvement. A discontinued operation may be a separate major business segment, a component of a major business segment or a geographical area of operations of the entity that can be separately distinguished operationally and for financial reporting purposes.

FIN 46(R):FASB Interpretation No. 46 (revised December 2003), “Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin No. 51.”

FIN 48:FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109.”

Interests in Purchased Receivables:Represent an ownership interest in cash flows of an underlying pool of receivables transferred by a third-party seller into a bankruptcy-remote entity, generally a trust.

Investment-grade:An indication of credit quality based upon JPMorgan Chase’s internal risk assessment system. “Investment-grade” generally represents a risk profile similar to a rating of a BBB-/Baa3 or better, as defined by independent rating agencies.

Managed Basis:A non-GAAP presentation of financial results that includes reclassifications related to credit card securitizations and to present revenue on a fully taxable-equivalent basis. Management uses this non-GAAP financial measure at the segment level because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.

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

Mark-to-market exposure:A measure, at a point in time, of the value of a derivative or foreign exchange contract in the open market. When the mark-to-market value is positive, it indicates the counterparty owes JPMorgan Chase and, therefore, creates a repayment risk for the Firm. When the mark-to-market value is negative, JPMorgan Chase owes the counterparty. In this situation, the Firm does not have repayment risk.

Merger:The July 1, 2004, merger with Bank One Corporation.

MSR Risk Management Revenue:Includes changes in MSR asset fair value due to inputs or assumptions in model and derivative valuation adjustments and other.

Net yield on interest-earning assets:The average rate for interest-earning assets less the average rate paid for all sources of funds.

NM:Not meaningful.

Overhead Ratio:Noninterest expense as a percentage of Total net revenue.

Principal Transactions (Revenue):Realized and unrealized gains and losses from trading activities (including physical commodities inventories that are accounted for at the lower of cost or fair value) and changes in fair value associated with financial instruments held by the Investment Bank for which the SFAS 159 fair value option was elected. Principal transactions revenue also include private equity gains and losses.

Reported Basis:Financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reported basis includes the impact of credit card securitizations, but excludes the impact of taxable equivalent adjustments.

SFAS:Statement of Financial Accounting Standards.

SFAS 123R:“Share-Based Payment.”

SFAS 140:“Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities — a replacement of FASB Statement No. 125.”

SFAS 157:“Fair Value Measurements.”

SFAS 159:“The Fair Value Option for Financial Assets and Financial Liabilities — Including an amendment of FASB Statement No. 115.”

Taxable-Equivalent Basis:Total net revenue for each of the business segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to fully taxable securities and investments. This non-GAAP financial measure 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.

Unaudited:Financial statements and information that have not been subjected to auditing procedures sufficient to permit an independent certified public accountant to express an opinion.

U.S. GAAP:Accounting principles generally accepted in the United States of America.

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

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JPMORGAN CHASE & CO.
Line of Business Metrics

Investment Banking

IB’S REVENUES COMPRISE 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. In addition, Credit portfolio revenue includes an adjustment to the valuation of the Firm’s derivative liabilities measured at fair value that reflects the credit quality of the Firm, in conjunction with SFAS 157 (i.e., the debit valuation adjustment (“DVA”)).

Retail Financial Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN REGIONAL 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. Sales specialists —Retail branch office personnel who specialize in the marketing of a single product, including mortgages, investments and business banking, by partnering with the personal bankers.

MORTGAGE BANKING REVENUES COMPRISE THE FOLLOWING:

1. Production revenueincludes mortgage servicing rights created from the sales of loans, net gains or losses on the sales of loans, and other production-related fees. Also includes revenue associated with originations of subprime mortgage loans.

2. Net mortgage servicing revenue

a)	Servicing revenuerepresents all gross income earned from servicing third-party mortgage loans including stated service fees, excess service fees, late fees, and other ancillary fees.
b)	Changes in MSR asset fair value due to:

— market-based inputssuch as interest rates and volatility, as well as updates to assumptions used in the MSR valuation model.

— modeled servicing portfolio runoff (or time decay)

c) Derivative valuation adjustments and other,which represents changes in the fair value of derivative instruments used to offset the impact of changes in the market-based inputs to the MSR valuation model.

3. MSR risk management resultsinclude changes in the MSR asset fair value due to inputs or assumptions and derivative valuation adjustments and other.

Retail Financial Services (continued)

MORTGAGE BANKING’S ORIGINATION CHANNELS COMPRISE THE FOLLOWING:

1. Retail —Borrowers who are buying or refinancing a home through direct contact with a mortgage banker employed by the Firm using a branch office, 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 loan applications 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 —Correspondents are banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.

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

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 partner in Chase Paymentech Solutions, LLC, a merchant acquiring business.

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.

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JPMORGAN CHASE & CO.
Line of Business Metrics (continued)

Commercial Banking

COMMERCIAL BANKING REVENUES COMPRISE THE FOLLOWING:

1. Lendingincludes a variety of financing alternatives, which are often provided on a basis secured by receivables, inventory, equipment, real estate or other assets. Products include term loans, revolving lines of credit, bridge financing, asset-backed structures, and leases.

2.Treasury servicesincludes a broad range of products and services enabling clients to transfer, invest and manage the receipt and disbursement of funds, while providing the related information reporting. These products and services include U.S. dollar and multi-currency clearing, ACH, lockbox, disbursement and reconciliation services, check deposits, other check and currency-related services, trade finance and logistics solutions, commercial card, and deposit products, sweeps and money market mutual funds.

3.Investment bankingproducts provide clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through loan syndications, investment-grade debt, asset-backed securities, private placements, high-yield bonds, equity underwriting, advisory, interest rate derivatives, and foreign exchange hedges.

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN COMMERCIAL BANKING:

1. Liability balancesinclude deposits and deposits that are swept to on-balance sheet liabilities such as commercial paper, Federal funds purchased, and repurchase agreements.

2. IB revenues, gross —Represents total revenue related to investment banking products sold to CB clients.

Treasury & Securities Services

Treasury & Securities Servicesfirmwide metricsinclude certain TSS product revenues and liability balances reported in other lines of business related to customers who are also customers of those other 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 management’s view, in order to understand the aggregate TSS business.

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN TREASURY & SECURITIES SERVICES:

Liability balancesinclude deposits and deposits that are swept to on-balance sheet liabilities such as commercial paper, Federal funds purchased, and repurchase agreements.

Asset Management

Assets Under Management:Represent assets actively managed by Asset 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 44% ownership interest as of December 31, 2007.

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

Alternative Assets:The following types of assets constitute alternative investments — hedge funds, currency, real estate and private equity.

AM’s CLIENT SEGMENTS COMPRISE THE FOLLOWING:

1. Institutionalbrings comprehensive global investment services — including asset management, pension analytics, asset/liability management and active risk budgeting strategies — to corporate and public institutions, endowments, foundations, not-for-profit organizations and governments worldwide.

2. Retailprovides worldwide investment management services and retirement planning and administration through third-party and direct distribution of a full range of investment vehicles.

3.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.

4. Private Client Servicesoffers high-net-worth individuals, families and business owners in the United States comprehensive wealth management solutions, including investment management, capital markets and risk management, tax and estate planning, banking, and specialty-wealth advisory services.

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