JPMorgan Chase & Co. (JPM) 8-K Jpmorgan Chase Reports First-quarter 2009 Net Income of $2.1 Billion, or $0.40 Per Share

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2009

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		11
Card Services — Managed Basis		17
Commercial Banking		20
Treasury & Securities Services		22
Asset Management		24
Corporate/Private Equity		27
Credit-Related Information		29
Market Risk-Related Information		34
Supplemental Detail
Capital, Intangible Assets and Deposits		35
Per Share-Related Information		36
Glossary of Terms		37

Page 1

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
SELECTED INCOME STATEMENT DATA:
Reported Basis
Total net revenue	$	25,025		$	17,226		$	14,737		$	18,399		$	16,890			45	%		48	%
Total noninterest expense		13,373			11,255			11,137			12,177			8,931			19			50
Pretax pre-provision profit		11,652			5,971			3,600			6,222			7,959			95			46
Provision for credit losses		8,596			7,313			5,787			3,455			4,424			18			94
Income (loss) before extraordinary gain		2,141			(623	)		(54	)		2,003			2,373		NM				(10	)
Extraordinary gain		—			1,325			581			—			—		NM				—
NET INCOME		2,141			702			527			2,003			2,373			205			(10	)
Managed Basis (a)
Total net revenue	$	26,922		$	19,108		$	16,088		$	19,678		$	17,898			41			50
Total noninterest expense		13,373			11,255			11,137			12,177			8,931			19			50
Pretax pre-provision profit		13,549			7,853			4,951			7,501			8,967			73			51
Provision for credit losses		10,060			8,541			6,660			4,285			5,105			18			97
Income (loss) before extraordinary gain		2,141			(623	)		(54	)		2,003			2,373		NM				(10	)
Extraordinary gain		—			1,325			581			—			—		NM				—
NET INCOME		2,141			702			527			2,003			2,373			205			(10	)
PER COMMON SHARE:
Basic Earnings (b)
Income (loss) before extraordinary gain		0.40			(0.29	)		(0.08	)		0.54			0.67		NM				(40	)
Net income		0.40			0.06			0.09			0.54			0.67		NM				(40	)
Diluted Earnings (b)
Income (loss) before extraordinary gain		0.40			(0.29	)		(0.08	)		0.53			0.67		NM				(40	)
Net income		0.40			0.06			0.09			0.53			0.67		NM				(40	)
Cash dividends declared		0.05			0.38			0.38			0.38			0.38			(87	)		(87	)
Book value		36.78			36.15			36.95			37.02			36.94			2			—
Closing share price		26.58			31.53			46.70			34.31			42.95			(16	)		(38	)
Market capitalization		99,881			117,695			174,048			117,881			146,066			(15	)		(32	)
COMMON SHARES OUTSTANDING:
Weighted-average diluted shares outstanding (b)		3,758.7			3,737.5			3,444.6			3,453.1			3,423.3			1			10
Common shares outstanding at period-end		3,757.7			3,732.8			3,726.9			3,435.7			3,400.8			1			10
FINANCIAL RATIOS: (c)
Income (loss) before extraordinary gain:
Return common on equity (“ROE”)		5	%		(3	)%		(1	)%		6	%		8	%
Return on equity-goodwill (“ROE-GW”) (d)		7			(5	)		(1	)		10			12
Return on assets (“ROA”)		0.42			(0.11	)		(0.01	)		0.48			0.61
Net income:
ROE		5			1			1			6			8
ROE-GW (d)		7			1			2			10			12
ROA		0.42			0.13			0.12			0.48			0.61
CAPITAL RATIOS:
Tier 1 capital ratio		11.3	(f)		10.9			8.9			9.2			8.3
Total capital ratio		15.1	(f)		14.8			12.6			13.4			12.5
SELECTED BALANCE SHEET DATA (Period-end)
Total assets	$	2,079,188		$	2,175,052		$	2,251,469		$	1,775,670		$	1,642,862			(4	)		27
Wholesale loans		242,284			262,044			288,445			229,359			231,297			(8	)		5
Consumer loans		465,959			482,854			472,936			308,670			305,759			(3	)		52
Deposits		906,969			1,009,277			969,783			722,905			761,626			(10	)		19
Common stockholders’ equity		138,201			134,945			137,691			127,176			125,627			2			10
Tangible common equity (e)		87,232			84,054			88,467			77,903			76,285			4			14
Headcount		219,569			224,961			228,452			195,594			182,166			(2	)		21
LINE OF BUSINESS NET INCOME (LOSS)
Investment Bank	$	1,606		$	(2,364	)	$	882		$	394		$	(87	)	NM			NM
Retail Financial Services		474			624			64			503			(311	)		(24	)	NM
Card Services		(547	)		(371	)		292			250			609			(47	)	NM
Commercial Banking		338			480			312			355			292			(30	)		16
Treasury & Securities Services		308			533			406			425			403			(42	)		(24	)
Asset Management		224			255			351			395			356			(12	)		(37	)
Corporate/Private Equity		(262	)		1,545			(1,780	)		(319	)		1,111		NM			NM
Net income	$	2,141		$	702		$	527		$	2,003		$	2,373			205			(10	)

(a)	For further discussion of managed basis, see Reconciliation from reported to managed summary on page 6.
(b)	Effective January 1, 2009, the Firm adopted FSP EITF 03-6-1. Accordingly, prior period numbers have been revised as required. For further discussion of this FSP, see Per share-related information on page 36.
(c)	Quarterly ratios are based upon annualized amounts.
(d)	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)	Tangible common equity (“TCE”) represents common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less identifiable intangible assets (other than MSRs) and goodwill, net of related deferred tax liabilities. For further discussion of TCE, see Capital, intangible assets and deposits on page 35.
(f)	Estimated.

Page 2

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
REVENUE
Investment banking fees	$	1,386		$	1,382		$	1,316		$	1,612		$	1,216			—	%		14	%
Principal transactions		2,001			(7,885	)		(2,763	)		752			(803	)	NM			NM
Lending & deposit-related fees		1,688			1,776			1,168			1,105			1,039			(5	)		62
Asset management, administration and commissions		2,897			3,234			3,485			3,628			3,596			(10	)		(19	)
Securities gains		198			456			424			647			33			(57	)		500
Mortgage fees and related income		1,601			1,789			457			696			525			(11	)		205
Credit card income		1,837			2,049			1,771			1,803			1,796			(10	)		2
Other income		50			593			(115	)		(138	)		1,829			(92	)		(97	)
Noninterest revenue		11,658			3,394			5,743			10,105			9,231			243			26
Interest income		17,926			21,631			17,326			16,529			17,532			(17	)		2
Interest expense		4,559			7,799			8,332			8,235			9,873			(42	)		(54	)
Net interest income		13,367			13,832			8,994			8,294			7,659			(3	)		75
TOTAL NET REVENUE		25,025			17,226			14,737			18,399			16,890			45			48
Provision for credit losses		8,596			7,313			5,787			3,455			4,424			18			94
NONINTEREST EXPENSE
Compensation expense		7,588			5,024			5,858			6,913			4,951			51			53
Occupancy expense		885			955			766			669			648			(7	)		37
Technology, communications and equipment expense		1,146			1,207			1,112			1,028			968			(5	)		18
Professional & outside services		1,515			1,819			1,451			1,450			1,333			(17	)		14
Marketing		384			501			453			413			546			(23	)		(30	)
Other expense		1,375			1,242			1,096			1,233			169			11		NM
Amortization of intangibles		275			326			305			316			316			(16	)		(13	)
Merger costs		205			181			96			155			—			13		NM
TOTAL NONINTEREST EXPENSE		13,373			11,255			11,137			12,177			8,931			19			50
Income (loss) before income tax expense and extraordinary gain		3,056			(1,342	)		(2,187	)		2,767			3,535		NM				(14	)
Income tax expense (benefit) (a)		915			(719	)		(2,133	)		764			1,162		NM				(21	)
Income (loss) before extraordinary gain		2,141			(623	)		(54	)		2,003			2,373		NM				(10	)
Extraordinary gain (b)		—			1,325			581			—			—		NM				—
NET INCOME	$	2,141		$	702		$	527		$	2,003		$	2,373			205			(10	)
DILUTED EARNINGS PER SHARE
Income (loss) before extraordinary gain (c)	$	0.40		$	(0.29	)	$	(0.08	)	$	0.53		$	0.67		NM				(40	)
Extraordinary gain		—			0.35			0.17			—			—		NM				—
NET INCOME (c)	$	0.40		$	0.06		$	0.09		$	0.53		$	0.67		NM				(40	)
FINANCIAL RATIOS
Income (loss) before extraordinary gain:
ROE		5	%		(3	)%		(1	)%		6	%		8	%
ROE-GW		7			(5	)		(1	)		10			12
ROA		0.42			(0.11	)		(0.01	)		0.48			0.61
Net income:
ROE		5			1			1			6			8
ROE-GW		7			1			2			10			12
ROA		0.42			0.13			0.12			0.48			0.61
Effective income tax rate (a)		30			54			98			28			33
Overhead ratio		53			65			76			66			53
EXCLUDING IMPACT OF MERGER COSTS (d)
Income (loss) before extraordinary gain	$	2,141		$	(623	)	$	(54	)	$	2,003		$	2,373		NM				(10	)
Merger costs (after-tax)		127			112			60			96			—			13		NM
Income (loss) before extraordinary gain excluding merger costs	$	2,268		$	(511	)	$	6		$	2,099		$	2,373		NM				(4	)
Diluted Per Share:
Income (loss) before extraordinary gain (c)	$	0.40		$	(0.29	)	$	(0.08	)	$	0.53		$	0.67		NM				(40	)
Merger costs (after-tax)		0.03			0.03			0.02			0.03			—			—		NM
Income (loss) before extraordinary gain excluding merger costs (c)	$	0.43		$	(0.26	)	$	(0.06	)	$	0.56		$	0.67		NM				(36	)

(a)	The income tax benefit in the third quarter of 2008 includes the realization of a benefit from the release of deferred tax liabilities associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely.
(b)	On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank from the Federal Deposit Insurance Corporation for $1.9 billion. The fair value of the net assets acquired exceeded the purchase price which resulted in negative goodwill. In accordance with SFAS 141, noncurrent nonfinancial assets that are not held-for-sale were written down against that negative goodwill. The negative goodwill remaining of $581 million after writing down nonfinancial assets was recognized as an extraordinary gain in the third quarter of 2008. As a result of refining the purchase price allocation during the fourth quarter of 2008, an additional gain of $1.3 billion was recognized.
(c)	Effective January 1, 2009, the Firm adopted FSP EITF 03-6-1. Accordingly, prior period numbers have been revised as required. For further discussion of this FSP, see Per share-related information on page 36.
(d)	Net income 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)

																Mar 31, 2009
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2009			2008			2008			2008			2008			2008			2008
ASSETS
Cash and due from banks	$	26,681		$	26,895		$	54,350		$	32,255		$	46,888			(1	)%		(43	)%
Deposits with banks		89,865			138,139			34,372			17,150			12,414			(35	)	NM
Federal funds sold and securities purchased under resale agreements		157,237			203,115			233,668			176,287			203,176			(23	)		(23	)
Securities borrowed		127,928			124,000			152,050			142,854			81,014			3			58
Trading assets:
Debt and equity instruments		298,453			347,357			401,609			409,608			386,170			(14	)		(23	)
Derivative receivables		131,247			162,626			118,648			122,389			99,110			(19	)		32
Securities		333,861			205,943			150,779			119,173			101,647			62			228
Loans (net of allowance for loan losses)		680,862			721,734			742,329			524,783			525,310			(6	)		30
Accrued interest and accounts receivable		52,168			60,987			104,232			64,294			50,989			(14	)		2
Premises and equipment		10,336			10,045			9,962			11,843			9,457			3			9
Goodwill		48,201			48,027			46,121			45,993			45,695			—			5
Other intangible assets:
Mortgage servicing rights		10,634			9,403			17,048			11,617			8,419			13			26
Purchased credit card relationships		1,528			1,649			1,827			1,984			2,140			(7	)		(29	)
All other intangibles		3,821			3,932			3,653			3,675			3,815			(3	)		—
Other assets (a)		106,366			111,200			180,821			91,765			66,618			(4	)		60
TOTAL ASSETS	$	2,079,188		$	2,175,052		$	2,251,469		$	1,775,670		$	1,642,862			(4	)		27
LIABILITIES
Deposits	$	906,969		$	1,009,277		$	969,783		$	722,905		$	761,626			(10	)		19
Federal funds purchased and securities loaned or sold under repurchase agreements		279,837			192,546			224,075			194,724			192,633			45			45
Commercial paper		33,085			37,845			54,480			50,151			50,602			(13	)		(35	)
Other borrowed funds (a)		112,257			132,400			167,827			22,594			28,430			(15	)		295
Trading liabilities:
Debt and equity instruments		53,786			45,274			76,213			87,841			78,982			19			(32	)
Derivative payables		86,020			121,604			85,816			95,749			78,983			(29	)		9
Accounts payable and other liabilities (including the allowance for lending-related commitments)		165,521			187,978			260,563			171,004			106,088			(12	)		56
Beneficial interests issued by consolidated VIEs		9,674			10,561			11,437			20,071			14,524			(8	)		(33	)
Long-term debt		243,569			252,094			238,034			260,192			189,995			(3	)		28
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		18,276			18,589			17,398			17,263			15,372			(2	)		19
TOTAL LIABILITIES		1,908,994			2,008,168			2,105,626			1,642,494			1,517,235			(5	)		26
STOCKHOLDERS’ EQUITY
Preferred stock		31,993			31,939			8,152			6,000			—			—		NM
Common stock		3,942			3,942			3,942			3,658			3,658			—			8
Capital surplus		91,469			92,143			90,535			78,870			78,072			(1	)		17
Retained earnings		55,487			54,013			55,217			56,313			55,762			3			—
Accumulated other comprehensive income (loss)		(4,490	)		(5,687	)		(2,227	)		(1,566	)		(512	)		21		NM
Shares held in RSU trust		(86	)		(217	)		(267	)		(269	)		—			60		NM
Treasury stock, at cost		(8,121	)		(9,249	)		(9,509	)		(9,830	)		(11,353	)		12			28
TOTAL STOCKHOLDERS’ EQUITY		170,194			166,884			145,843			133,176			125,627			2			35
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,079,188		$	2,175,052		$	2,251,469		$	1,775,670		$	1,642,862			(4	)		27

(a) On September 19, 2008, the Federal Reserve established a special lending facility, the AML Facility, to provide liquidity to eligible money market mutual funds. The Firm participated in the AML Facility and had ABCP investments totaling $6.0 billion, $11.2 billion, and $61.3 billion at March 31, 2009, December 31, 2008, and September 30, 2008, respectively. These ABCP investments were recorded in other assets with the corresponding nonrecourse liability to the Federal Reserve Bank of Boston for the same amounts recorded in other borrowed funds.

Page 4

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
AVERAGE BALANCES
ASSETS
Deposits with banks	$	88,587		$	106,156		$	41,303		$	38,813		$	31,975			(17	)%		177	%
Federal funds sold and securities purchased under resale agreements		160,986			205,182			164,980			155,664			153,864			(22	)		5
Securities borrowed		120,752			123,523			134,651			100,322			83,490			(2	)		45
Trading assets — debt instruments		252,098			269,576			298,760			302,053			322,986			(6	)		(22	)
Securities		281,420			174,652			119,443			109,834			89,757			61			214
Loans		726,959			752,524			536,890			537,964			526,598			(3	)		38
Other assets (a)		27,411			56,322			37,237			15,629			—			(51	)	NM
Total interest-earning assets		1,658,213			1,687,935			1,333,264			1,260,279			1,208,670			(2	)		37
Trading assets — equity instruments		62,748			72,782			92,300			99,525			78,810			(14	)		(20	)
Goodwill		48,071			46,838			45,947			45,781			45,699			3			5
Other intangible assets:
Mortgage servicing rights		11,141			14,837			11,811			9,947			8,273			(25	)		35
All other intangible assets		5,443			5,586			5,512			5,823			6,202			(3	)		(12	)
All other noninterest-earning assets		281,503			339,887			267,525			247,344			222,143			(17	)		27
TOTAL ASSETS	$	2,067,119		$	2,167,865		$	1,756,359		$	1,668,699		$	1,569,797			(5	)		32
LIABILITIES
Interest-bearing deposits	$	736,460		$	777,604		$	589,348		$	612,305		$	600,132			(5	)		23
Federal funds purchased and securities loaned or sold under repurchase agreements		226,110			203,568			200,032			203,348			179,897			11			26
Commercial paper		33,694			40,486			47,579			47,323			47,584			(17	)		(29	)
Other borrowings and liabilities (b)		236,673			264,236			161,821			111,477			107,552			(10	)		120
Beneficial interests issued by consolidated VIEs		9,757			9,440			11,431			17,990			14,082			3			(31	)
Long-term debt		258,732			248,125			261,385			229,336			200,354			4			29
Total interest-bearing liabilities		1,501,426			1,543,459			1,271,596			1,221,779			1,149,601			(3	)		31
Noninterest-bearing liabilities		397,243			460,894			351,023			315,965			295,616			(14	)		34
TOTAL LIABILITIES		1,898,669			2,004,353			1,622,619			1,537,744			1,445,217			(5	)		31
Preferred stock		31,957			24,755			7,100			4,549			—			29		NM
Common stockholders’ equity		136,493			138,757			126,640			126,406			124,580			(2	)		10
TOTAL STOCKHOLDERS’ EQUITY		168,450			163,512			133,740			130,955			124,580			3			35
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,067,119		$	2,167,865		$	1,756,359		$	1,668,699		$	1,569,797			(5	)		32
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks		2.03	%		3.34	%		3.04	%		3.87	%		4.22	%
Federal funds sold and securities purchased under resale agreements		1.64			2.88			3.76			3.84			3.80
Securities borrowed		0.29			0.92			2.07			2.29			3.56
Trading assets — debt instruments		5.27			6.18			6.06			5.59			5.75
Securities		4.16			5.14			5.09			5.27			5.47
Loans		5.87			6.44			6.31			6.36			7.10
Other assets (a)		2.44			3.06			3.29			3.97			—
Total interest-earning assets		4.41			5.12			5.22			5.34			5.88
INTEREST-BEARING LIABILITIES
Interest-bearing deposits		0.93			1.53			2.26			2.36			3.09
Federal funds purchased and securities sold under repurchase agreements		0.36			0.95			2.63			2.73			3.31
Commercial paper		0.47			1.17			2.05			2.17			3.41
Other borrowings and liabilities (b)		1.46			2.56			2.84			3.77			5.03
Beneficial interests issued by consolidated VIEs		1.57			3.79			2.87			2.24			3.78
Long-term debt		2.73			3.87			3.31			3.27			3.82
Total interest-bearing liabilities		1.23			2.01			2.61			2.71			3.45
INTEREST RATE SPREAD		3.18	%		3.11	%		2.61	%		2.63	%		2.43	%
NET YIELD ON INTEREST-EARNING ASSETS		3.29	%		3.28	%		2.73	%		2.71	%		2.59	%
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		3.60	%		3.55	%		3.06	%		3.06	%		2.95	%

(a)	Includes margin loans and the Firm’s investment in asset-backed commercial paper under the Federal Reserve Bank of Boston’s AML facility.
(b)	Includes securities sold but not yet purchased, brokerage customer payables and advances from Federal Home Loan Banks.

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 results and the results of lines of business 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 assume 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 37.

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
CREDIT CARD INCOME
Credit card income — reported	$	1,837		$	2,049		$	1,771		$	1,803		$	1,796			(10	)%		2	%
Impact of:
Credit card securitizations		(540	)		(710	)		(843	)		(843	)		(937	)		24			42
Credit card income — managed	$	1,297		$	1,339		$	928		$	960		$	859			(3	)		51
OTHER INCOME
Other income — reported	$	50		$	593		$	(115	)	$	(138	)	$	1,829			(92	)		(97	)
Impact of:
Tax-equivalent adjustments		337			556			323			247			203			(39	)		66
Other income — managed	$	387		$	1,149		$	208		$	109		$	2,032			(66	)		(81	)
TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	11,658		$	3,394		$	5,743		$	10,105		$	9,231			243			26
Impact of:
Credit card securitizations		(540	)		(710	)		(843	)		(843	)		(937	)		24			42
Tax-equivalent adjustments		337			556			323			247			203			(39	)		66
Total noninterest revenue — managed	$	11,455		$	3,240		$	5,223		$	9,509		$	8,497			254			35
NET INTEREST INCOME
Net interest income — reported	$	13,367		$	13,832		$	8,994		$	8,294		$	7,659			(3	)		75
Impact of:
Credit card securitizations		2,004			1,938			1,716			1,673			1,618			3			24
Tax-equivalent adjustments		96			98			155			202			124			(2	)		(23	)
Net interest income — managed	$	15,467		$	15,868		$	10,865		$	10,169		$	9,401			(3	)		65
TOTAL NET REVENUE
Total net revenue — reported	$	25,025		$	17,226		$	14,737		$	18,399		$	16,890			45			48
Impact of:
Credit card securitizations		1,464			1,228			873			830			681			19			115
Tax-equivalent adjustments		433			654			478			449			327			(34	)		32
Total net revenue — managed	$	26,922		$	19,108		$	16,088		$	19,678		$	17,898			41			50
PRETAX PRE-PROVISION PROFIT
Total pretax pre-provision profit — reported	$	11,652		$	5,971		$	3,600		$	6,222		$	7,959			95			46
Impact of:
Credit card securitizations		1,464			1,228			873			830			681			19			115
Tax-equivalent adjustments		433			654			478			449			327			(34	)		32
Total pretax pre-provision profit — managed	$	13,549		$	7,853		$	4,951		$	7,501		$	8,967			73			51
PROVISION FOR CREDIT LOSSES
Provision for credit losses — reported	$	8,596		$	7,313		$	5,787		$	3,455		$	4,424			18			94
Impact of:
Credit card securitizations		1,464			1,228			873			830			681			19			115
Provision for credit losses — managed	$	10,060		$	8,541		$	6,660		$	4,285		$	5,105			18			97
INCOME TAX EXPENSE
Income tax expense (benefit) — reported	$	915		$	(719	)	$	(2,133	)	$	764		$	1,162		NM				(21	)
Impact of:
Tax-equivalent adjustments		433			654			478			449			327			(34	)		32
Income tax expense (benefit) — managed	$	1,348		$	(65	)	$	(1,655	)	$	1,213		$	1,489		NM				(9	)

Page 6

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
TOTAL NET REVENUE (FTE)
Investment Bank	$	8,341		$	(302	)	$	4,035		$	5,470		$	3,011		NM		%		177	%
Retail Financial Services		8,835			8,684			4,963			5,110			4,763			2			85
Card Services		5,129			4,908			3,887			3,775			3,904			5			31
Commercial Banking		1,402			1,479			1,125			1,106			1,067			(5	)		31
Treasury & Securities Services		1,821			2,249			1,953			2,019			1,913			(19	)		(5	)
Asset Management		1,703			1,658			1,961			2,064			1,901			3			(10	)
Corporate/Private Equity		(309	)		432			(1,836	)		134			1,339		NM			NM
TOTAL NET REVENUE	$	26,922		$	19,108		$	16,088		$	19,678		$	17,898			41			50
TOTAL PRETAX PRE-PROVISION PROFIT
Investment Bank	$	3,567		$	(3,043	)	$	219		$	736		$	458		NM			NM
Retail Financial Services		4,664			4,638			2,184			2,430			2,191			1			113
Card Services		3,783			3,419			2,693			2,590			2,632			11			44
Commercial Banking		849			980			639			630			582			(13	)		46
Treasury & Securities Services		502			910			614			702			685			(45	)		(27	)
Asset Management		405			445			599			664			578			(9	)		(30	)
Corporate/Private Equity		(221	)		504			(1,997	)		(251	)		1,841		NM			NM
TOTAL PRETAX PRE-PROVISION PROFIT	$	13,549		$	7,853		$	4,951		$	7,501		$	8,967			73			51
NET INCOME (LOSS)
Investment Bank	$	1,606		$	(2,364	)	$	882		$	394		$	(87	)	NM			NM
Retail Financial Services		474			624			64			503			(311	)		(24	)	NM
Card Services		(547	)		(371	)		292			250			609			(47	)	NM
Commercial Banking		338			480			312			355			292			(30	)		16
Treasury & Securities Services		308			533			406			425			403			(42	)		(24	)
Asset Management		224			255			351			395			356			(12	)		(37	)
Corporate/Private Equity		(262	)		1,545			(1,780	)		(319	)		1,111		NM			NM
TOTAL NET INCOME	$	2,141		$	702		$	527		$	2,003		$	2,373			205			(10	)
AVERAGE EQUITY (a)
Investment Bank	$	33,000		$	33,000		$	26,000		$	23,319		$	22,000			—			50
Retail Financial Services		25,000			25,000			17,000			17,000			17,000			—			47
Card Services		15,000			15,000			14,100			14,100			14,100			—			6
Commercial Banking		8,000			8,000			7,000			7,000			7,000			—			14
Treasury & Securities Services		5,000			4,500			3,500			3,500			3,500			11			43
Asset Management		7,000			7,000			5,500			5,066			5,000			—			40
Corporate/Private Equity		43,493			46,257			53,540			56,421			55,980			(6	)		(22	)
TOTAL AVERAGE EQUITY	$	136,493		$	138,757		$	126,640		$	126,406		$	124,580			(2	)		10
RETURN ON EQUITY (a)
Investment Bank		20	%		(28	)%		13	%		7	%		(2	)%
Retail Financial Services		8			10			1			12			(7	)
Card Services		(15	)		(10	)		8			7			17
Commercial Banking		17			24			18			20			17
Treasury & Securities Services		25			47			46			49			46
Asset Management		13			14			25			31			29

(a) 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
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,380		$	1,373		$	1,593		$	1,735		$	1,206			1	%		14	%
Principal transactions		3,515			(6,160	)		(922	)		838			(798	)	NM			NM
Lending & deposit-related fees		138			138			118			105			102			—			35
Asset management, administration and commissions		692			764			847			709			744			(9	)		(7	)
All other income		(86	)		109			(279	)		(226	)		(66	)	NM				(30	)
Noninterest revenue		5,639			(3,776	)		1,357			3,161			1,188		NM				375
Net interest income		2,702			3,474			2,678			2,309			1,823			(22	)		48
TOTAL NET REVENUE (a)		8,341			(302	)		4,035			5,470			3,011		NM				177
Provision for credit losses		1,210			765			234			398			618			58			96
Credit reimbursement from TSS (b)		30			30			31			30			30			—			—
NONINTEREST EXPENSE
Compensation expense		3,330			1,166			2,162			3,132			1,241			186			168
Noncompensation expense		1,444			1,575			1,654			1,602			1,312			(8	)		10
TOTAL NONINTEREST EXPENSE		4,774			2,741			3,816			4,734			2,553			74			87
Income (loss) before income tax expense		2,387			(3,778	)		16			368			(130	)	NM			NM
Income tax expense (benefit) (c)		781			(1,414	)		(866	)		(26	)		(43	)	NM			NM
NET INCOME (LOSS)	$	1,606		$	(2,364	)	$	882		$	394		$	(87	)	NM			NM
FINANCIAL RATIOS
ROE		20	%		(28	)%		13	%		7	%		(2	)%
ROA		0.89			(1.08	)		0.39			0.19			(0.05	)
Overhead ratio		57		NM				95			87			85
Compensation expense as a % of total net revenue		40		NM				54			57			41
REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	479		$	579		$	576		$	370		$	483			(17	)		(1	)
Equity underwriting		308			330			518			542			359			(7	)		(14	)
Debt underwriting		593			464			499			823			364			28			63
Total investment banking fees		1,380			1,373			1,593			1,735			1,206			1			14
Fixed income markets		4,889			(1,671	)		815			2,347			466		NM			NM
Equity markets		1,773			(94	)		1,650			1,079			976		NM				82
Credit portfolio		299			90			(23	)		309			363			232			(18	)
Total net revenue	$	8,341		$	(302	)	$	4,035		$	5,470		$	3,011		NM				177
REVENUE BY REGION
Americas	$	4,780		$	(2,223	)	$	1,052		$	3,165		$	536		NM			NM
Europe/Middle East/Africa		2,588			2,019			2,509			1,512			1,641			28			58
Asia/Pacific		973			(98	)		474			793			834		NM				17
Total net revenue	$	8,341		$	(302	)	$	4,035		$	5,470		$	3,011		NM				177

(a)	Total net revenue included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing investments and tax-exempt income from municipal bond investments, of $365 million, $583 million, $427 million, $404 million, and $289 million, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.
(b)	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.
(c)	The income tax benefit in the third quarter of 2008 is predominantly the result of reduced deferred tax liabilities on overseas earnings.

Page 8

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
SELECTED BALANCE SHEET DATA (Period-end)
Equity	$	33,000		$	33,000		$	33,000		$	26,000		$	22,000			—	%		50	%
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	733,166		$	869,159		$	890,040		$	814,860		$	755,828			(16	)		(3	)
Trading assets — debt and equity instruments		272,998			306,168			360,821			367,184			369,456			(11	)		(26	)
Trading assets — derivative receivables		125,021			153,875			105,462			99,395			90,234			(19	)		39
Loans:
Loans retained (a)		70,041			73,110			69,022			76,239			74,106			(4	)		(5	)
Loans held-for-sale & loans at fair value		12,402			16,378			17,612			20,440			19,612			(24	)		(37	)
Total loans		82,443			89,488			86,634			96,679			93,718			(8	)		(12	)
Adjusted assets (b)		589,163			685,242			694,459			676,777			662,419			(14	)		(11	)
Equity		33,000			33,000			26,000			23,319			22,000			—			50
Headcount		26,142			27,938			30,993			37,057			25,780			(6	)		1
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (recoveries)	$	36		$	87		$	13		$	(8	)	$	13			(59	)		177
Nonperforming assets:
Loans (c)		1,795			1,175			436			313			321			53			459
Derivative receivables		1,010			1,079			34			76			31			(6	)	NM
Assets acquired in loan satisfactions		236			247			113			101			87			(4	)		171
Total nonperforming assets		3,041			2,501			583			490			439			22		NM
Allowance for credit losses:
Allowance for loan losses		4,682			3,444			2,654			2,429			1,891			36			148
Allowance for lending-related commitments		295			360			463			469			607			(18	)		(51	)
Total allowance for credit losses		4,977			3,804			3,117			2,898			2,498			31			99
Net charge-off (recovery) rate (a) (d)		0.21	%		0.47	%		0.07	%		(0.04	)%		0.07	%
Allowance for loan losses to average loans (a) (d) (e)		6.68			4.71			3.85			3.19			2.55
Allowance for loan losses to nonperforming loans (c)		269			301			657			843			683
Nonperforming loans to average loans		2.18			1.31			0.50			0.32			0.34

(a)	Loans retained included credit portfolio loans, leveraged leases and other accrual loans, and excluded loans held-for-sale and loans accounted for at fair value.
(b)	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; (4) goodwill and intangibles; (5) securities received as collateral; and (6) investments purchased under the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility. The amount of adjusted assets is presented to assist the reader in comparing the Investment Bank’s (“IB”) 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. IB believes an adjusted asset amount that excludes the assets discussed above, which were considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.
(c)	Nonperforming loans included loans held-for-sale and loans at fair value of $57 million, $32 million, $32 million, $25 million, and $44 million, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008, respectively, which were excluded from the allowance coverage ratios. Nonperforming loans excluded distressed loans held-for-sale that were purchased as part of IB’s proprietary activities.
(d)	Loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage ratio and net charge-off (recovery) rate.
(e)	Excluding the impact of a loan originated in March 2008 to Bear Stearns, the adjusted ratio would be 3.46% and 2.61% for the quarters ended June 30, 2008, and March 31, 2008, respectively. The average balance of the loan extended to Bear Stearns was $6.0 billion and $1.7 billion for the quarters ended June 30, 2008, and March 31, 2008, respectively. The allowance for loan losses to period-end loans was 7.04%, 4.83%, 3.70%, 3.35%, and 2.46% at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

Page 9

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR — 99% CONFIDENCE LEVEL (a)
Trading activities:
Fixed income	$	218		$	276		$	183		$	155		$	120			(21	)%		82	%
Foreign exchange		40			55			20			26			35			(27	)		14
Equities		162			87			80			30			31			86			423
Commodities and other		28			30			41			31			28			(7	)		—
Diversification (b)		(159	)		(146	)		(104	)		(92	)		(92	)		(9	)		(73	)
Total trading VaR (c)		289			302			220			150			122			(4	)		137
Credit portfolio VaR (d)		182			165			47			35			30			10		NM
Diversification (b)		(135	)		(140	)		(49	)		(36	)		(30	)		4			(350	)
Total trading and credit portfolio VaR	$	336		$	327		$	218		$	149		$	122			3			175

	March 31, 2009 YTD					Full Year 2008
	Market					Market
MARKET SHARES AND RANKINGS (e)	Share			Rankings		Share			Rankings
Global debt, equity and equity-related		11	%		#1		10	%		#1
Global syndicated loans		6	%		#6		11	%		#1
Global long-term debt (f)		9	%		#2		9	%		#3
Global equity and equity-related (g)		13	%		#1		10	%		#1
Global announced M&A (h)		43	%		#2		27	%		#2
U.S. debt, equity and equity-related		15	%		#1		15	%		#2
U.S. syndicated loans		17	%		#3		27	%		#1
U.S. long-term debt (f)		14	%		#1		15	%		#2
U.S. equity and equity-related (g)		21	%		#1		11	%		#1
U.S. announced M&A (h)		66	%		#3		34	%		#2

(a)	Results for second quarter 2008 include one month of the combined Firm’s results and two months of heritage JPMorgan Chase & Co. results. First quarter of 2008 reflects heritage JPMorgan Chase & Co. results.
(b)	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.
(c)	Trading VaR includes predominantly all trading activities in IB; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. Trading VaR does not include VaR related to held-for-sale funded loans and unfunded commitments, nor the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm. Trading VaR also does not include the MSR portfolio or VaR related to other corporate functions, such as Corporate/Private Equity. Beginning in the fourth quarter of 2008, trading VaR includes the estimated credit spread sensitivity of certain mortgage products.
(d)	Included VaR on derivative credit valuation adjustments (“CVA”), hedges of the CVA and mark-to-market hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio.
(e)	Source: Thomson Reuters. Full year 2008 results are pro forma for the Bear Stearns merger.
(f)	Includes asset-backed securities, mortgage-backed securities and municipal securities.
(g)	Includes rights offerings; U.S. domiciled equity and equity-related transactions.
(h)	Global announced M&A is based upon rank value; all other rankings are 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 2008 include transactions withdrawn since December 31, 2008. U.S. announced M&A represents any U.S. involvement ranking.

Page 10

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
INCOME STATEMENT
REVENUE
Lending & deposit-related fees	$	948		$	1,050		$	538		$	497		$	461			(10	)%		106	%
Asset management, administration and commissions		435			412			346			375			377			6			15
Securities gains		—			—			—			—			—			—			—
Mortgage fees and related income		1,633			1,962			438			696			525			(17	)		211
Credit card income		367			367			204			194			174			—			111
Other income		214			183			206			198			152			17			41
Noninterest revenue		3,597			3,974			1,732			1,960			1,689			(9	)		113
Net interest income		5,238			4,710			3,231			3,150			3,074			11			70
TOTAL NET REVENUE		8,835			8,684			4,963			5,110			4,763			2			85
Provision for credit losses		3,877			3,576			2,056			1,585			2,688			8			44
NONINTEREST EXPENSE
Compensation expense		1,631			1,604			1,120			1,184			1,160			2			41
Noncompensation expense		2,457			2,345			1,559			1,396			1,312			5			87
Amortization of intangibles		83			97			100			100			100			(14	)		(17	)
TOTAL NONINTEREST EXPENSE		4,171			4,046			2,779			2,680			2,572			3			62
Income (loss) before income tax expense		787			1,062			128			845			(497	)		(26	)	NM
Income tax expense (benefit)		313			438			64			342			(186	)		(29	)	NM
NET INCOME (LOSS)	$	474		$	624		$	64		$	503		$	(311	)		(24	)	NM
FINANCIAL RATIOS
ROE		8	%		10	%		1	%		12	%		(7	)%
Overhead ratio		47			47			56			52			54
Overhead ratio excluding core deposit intangibles (a)		46			45			54			51			52
SELECTED BALANCE SHEET DATA (Period-end)
Assets	$	412,505		$	419,831		$	426,435		$	265,845		$	262,118			(2	)		57
Loans:
Loans retained		364,220			368,786			371,153			223,047			218,489			(1	)		67
Loans held-for-sale & loans at fair value (b)		12,529			9,996			10,223			16,282			18,000			25			(30	)
Total loans		376,749			378,782			381,376			239,329			236,489			(1	)		59
Deposits		380,140			360,451			353,660			223,121			230,854			5			65
Equity		25,000			25,000			25,000			17,000			17,000			—			47
SELECTED BALANCE SHEET DATA (Average)
Assets	$	423,472		$	423,699		$	265,367		$	267,808		$	260,013			—			63
Loans:
Loans retained		366,925			369,172			222,640			221,132			214,586			(1	)		71
Loans held-for-sale & loans at fair value (b)		16,526			13,848			16,037			20,492			17,841			19			(7	)
Total loans		383,451			383,020			238,677			241,624			232,427			—			65
Deposits		370,278			358,523			222,180			226,487			225,555			3			64
Equity		25,000			25,000			17,000			17,000			17,000			—			47
Headcount		100,677			102,007			101,826			69,550			70,095			(1	)		44

(a)

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 excludes Retail Banking’s core deposit intangible amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $83 million, $97 million, $99 million, $99 million, and $99 million, for the quarters ending March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

(b)

Prime mortgages originated with the intent to sell are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $8.9 billion, $8.0 billion, $8.6 billion, $14.1 billion, and $13.5 billion, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. Average balances of these loans totaled $13.4 billion, $12.0 billion, $14.5 billion, $16.9 billion, and $13.4 billion for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

Page 11

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	2,176		$	1,701		$	1,326		$	1,025		$	825			28	%		164	%
Nonperforming loans (a) (b) (c) (d)		7,978			6,784			5,724			4,574			3,742			18			113
Nonperforming assets (a) (b) (c) (d)		9,846			9,077			8,085			5,333			4,359			8			126
Allowance for loan losses		10,619			8,918			7,517			5,062			4,496			19			136
Net charge-off rate (e)		2.41	%		1.83	%		2.37	%		1.86	%		1.55	%
Net charge-off rate excluding purchased credit-impaired loans (e) (f)		3.16			2.41			2.37			1.86			1.55
Allowance for loan losses to ending loans (e)		2.92			2.42			2.03			2.27			2.06
Allowance for loan losses to ending loans excluding purchased credit-impaired loans (e) (f)		3.84			3.19			2.56			2.27			2.06
Allowance for loan losses to nonperforming loans (a) (e)		138			136			136	��		115			124
Nonperforming loans to total loans		2.12			1.79			1.50			1.91			1.58

(a)	Excludes purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing under SOP 03-3.
(b)	Nonperforming loans and assets included loans held-for-sale and loans accounted for at fair value of $264 million, $236 million, $207 million, $180 million, and $129 million at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. Certain of these loans are classified as trading assets on the Consolidated Balance Sheets.
(c)	Nonperforming loans and assets excluded (1) loans eligible for repurchase as well as loans repurchased from Government National Mortgage Association (“GNMA”) pools that are insured by U.S. government agencies of $4.6 billion, $3.3 billion, $1.8 billion, $1.9 billion, and $1.8 billion at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, and (2) student 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 $433 million, $437 million, $405 million, $394 million, and $418 million, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts for GNMA and student loans are excluded, as reimbursement is proceeding normally.
(d)	During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform to all other home lending products. Prior period nonperforming loans and assets have been revised to reflect this change.
(e)	Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratio and the net charge-off rate.
(f)	Excludes the impact of purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management’s estimate, as of the acquisition date, of credit losses over the remaining life of the portfolio. No allowance for loan losses has been recorded for these loans as of March 31, 2009, December 31, 2008, and September 30, 2008, respectively.

Page 12

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
RETAIL BANKING
Noninterest revenue	$	1,718		$	1,834		$	1,089		$	1,062		$	966			(6	)%		78	%
Net interest income		2,614			2,687			1,756			1,671			1,545			(3	)		69
Total net revenue		4,332			4,521			2,845			2,733			2,511			(4	)		73
Provision for credit losses		325			268			70			62			49			21		NM
Noninterest expense		2,580			2,533			1,580			1,557			1,562			2			65
Income before income tax expense		1,427			1,720			1,195			1,114			900			(17	)		59
Net income	$	863		$	1,040		$	723		$	674		$	545			(17	)		58
Overhead ratio		60	%		56	%		56	%		57	%		62	%
Overhead ratio excluding core deposit intangibles (a)		58			54			52			53			58
BUSINESS METRICS (in billions)
Business banking origination volume	$	0.5		$	0.8		$	1.2		$	1.7		$	1.8			(38	)		(72	)
End-of-period loans owned		18.2			18.4			18.6			16.5			15.9			(1	)		14
End-of-period deposits:
Checking	$	113.9		$	109.2		$	106.7		$	69.1		$	69.0			4			65
Savings		152.4			144.0			146.4			105.8			105.4			6			45
Time and other		86.5			89.1			85.8			37.0			44.6			(3	)		94
Total end-of-period deposits		352.8			342.3			338.9			211.9			219.0			3			61
Average loans owned	$	18.4		$	18.2		$	16.6		$	16.2		$	15.8			1			16
Average deposits:
Checking	$	109.4		$	105.8		$	68.0		$	68.4		$	66.1			3			66
Savings		148.2			145.3			105.4			105.9			100.3			2			48
Time and other		88.2			88.7			36.7			39.6			47.7			(1	)		85
Total average deposits		345.8			339.8			210.1			213.9			214.1			2			62
Deposit margin		2.85	%		2.94	%		3.06	%		2.88	%		2.64	%
Average assets	$	30.2		$	28.7		$	25.6		$	25.7		$	25.4			5			19
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	175		$	168		$	68		$	61		$	49			4			257
Net charge-off rate		3.86	%		3.67	%		1.63	%		1.51	%		1.25	%
Nonperforming assets	$	579		$	424		$	380		$	337		$	328			37			77
RETAIL BRANCH BUSINESS METRICS
Investment sales volume	$	4,398		$	3,956		$	4,389		$	5,211		$	4,084			11			8
Number of:
Branches		5,186			5,474			5,423			3,157			3,146			(5	)		65
ATMs		14,159			14,568			14,389			9,310			9,237			(3	)		53
Personal bankers		15,544			15,825			15,491			9,995			9,826			(2	)		58
Sales specialists		5,454			5,661			5,899			4,116			4,133			(4	)		32
Active online customers (in thousands)		12,882			11,710			11,682			7,180			6,454			10			100
Checking accounts (in thousands)		24,984			24,499			24,490			11,336			11,068			2			126

(a) Retail 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 method would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excludes Retail Banking’s core deposit intangible amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $83 million, $97 million, $99 million, $99 million, and $99 million, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

Page 13

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
CONSUMER LENDING
Noninterest revenue	$	1,879		$	2,140		$	643		$	898		$	723			(12	)%		160	%
Net interest income		2,624			2,023			1,475			1,479			1,529			30			72
Total net revenue		4,503			4,163			2,118			2,377			2,252			8			100
Provision for credit losses		3,552			3,308			1,986			1,523			2,639			7			35
Noninterest expense		1,591			1,513			1,199			1,123			1,010			5			58
Income (loss) before income tax expense		(640	)		(658	)		(1,067	)		(269	)		(1,397	)		3			54
Net income (loss)	$	(389	)	$	(416	)	$	(659	)	$	(171	)	$	(856	)		6			55
Overhead ratio		35	%		36	%		57	%		47	%		45	%
BUSINESS METRICS (in billions)
LOANS EXCLUDING PURCHASED CREDIT-IMPAIRED LOANS
End-of-period loans owned:
Home equity	$	111.7		$	114.3		$	116.8		$	95.1		$	95.0			(2	)		18
Prime mortgage		65.4			65.2			63.0			40.1			38.2			—			71
Subprime mortgage		14.6			15.3			18.1			14.8			15.8			(5	)		(8	)
Option ARMs		9.0			9.0			19.0			—			—			—		NM
Student loans		17.3			15.9			15.3			13.0			12.4			9			40
Auto loans		43.1			42.6			43.3			44.9			44.7			1			(4	)
Other		1.0			1.3			1.0			0.9			1.0			(23	)		—
Total end-of-period loans		262.1			263.6			276.5			208.8			207.1			(1	)		27
Average loans owned:
Home equity	$	113.4		$	114.6		$	94.8		$	95.1		$	95.0			(1	)		19
Prime mortgage		65.4			65.0			39.7			39.3			36.0			1			82
Subprime mortgage		14.9			15.7			14.2			15.5			15.7			(5	)		(5	)
Option ARMs		8.8			9.0			—			—			—			(2	)	NM
Student loans		17.0			15.6			14.1			12.7			12.0			9			42
Auto loans		42.5			42.9			43.9			44.9			43.2			(1	)		(2	)
Other		1.5			1.5			0.9			1.0			1.3			—			15
Total average loans		263.5			264.3			207.6			208.5			203.2			—			30
PURCHASED CREDIT-IMPAIRED LOANS (a)
End-of-period loans owned:
Home equity	$	28.4		$	28.6		$	26.5		$	—		$	—			(1	)	NM
Prime mortgage		21.4			21.8			24.7			—			—			(2	)	NM
Subprime mortgage		6.6			6.8			3.9			—			—			(3	)	NM
Option ARMs		31.2			31.6			22.6			—			—			(1	)	NM
Total end-of-period loans		87.6			88.8			77.7			—			—			(1	)	NM
Average loans owned:
Home equity	$	28.4		$	28.2		$	—		$	—		$	—			1		NM
Prime mortgage		21.6			21.9			—			—			—			(1	)	NM
Subprime mortgage		6.7			6.8			—			—			—			(1	)	NM
Option ARMs		31.4			31.6			—			—			—			(1	)	NM
Total average loans		88.1			88.5			—			—			—			—		NM
TOTAL CONSUMER LENDING PORTFOLIO
End-of-period loans owned:
Home equity	$	140.1		$	142.9		$	143.3		$	95.1		$	95.0			(2	)		47
Prime mortgage		86.8			87.0			87.7			40.1			38.2			—			127
Subprime mortgage		21.2			22.1			22.0			14.8			15.8			(4	)		34
Option ARMs		40.2			40.6			41.6			—			—			(1	)	NM
Student loans		17.3			15.9			15.3			13.0			12.4			9			40
Auto loans		43.1			42.6			43.3			44.9			44.7			1			(4	)
Other		1.0			1.3			1.0			0.9			1.0			(23	)		—
Total end-of-period loans		349.7			352.4			354.2			208.8			207.1			(1	)		69
Average loans owned:
Home equity	$	141.8		$	142.8		$	94.8		$	95.1		$	95.0			(1	)		49
Prime mortgage		87.0			86.9			39.7			39.3			36.0			—			142
Subprime mortgage		21.6			22.5			14.2			15.5			15.7			(4	)		38
Option ARMs		40.2			40.6			—			—			—			(1	)	NM
Student loans		17.0			15.6			14.1			12.7			12.0			9			42
Auto loans		42.5			42.9			43.9			44.9			43.2			(1	)		(2	)
Other		1.5			1.5			0.9			1.0			1.3			—			15
Total average loans owned (b)		351.6			352.8			207.6			208.5			203.2			—			73

(a)

Purchased credit-impaired loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. Under SOP 03-3, these loans were initially recorded at fair value and accrete interest income over the estimated life of the loan when cash flows are reasonably estimable even if the underlying loans are contractually past due.

(b)

Total average loans includes loans held-for-sale of $3.1 billion, $1.8 billion, $1.5 billion, $3.6 billion, and $4.4 billion, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

Page 14

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
CONSUMER LENDING (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding purchased credit-impaired loans: (a)
Home equity	$	1,098		$	770		$	663		$	511		$	447			43	%		146	%
Prime mortgage		312			195			177			104			50			60		NM
Subprime mortgage		364			319			273			192			149			14			144
Option ARMs		4			—			—			—			—		NM			NM
Auto loans		174			207			124			119			118			(16	)		47
Other		49			42			21			38			12			17			308
Total net charge-offs		2,001			1,533			1,258			964			776			31			158
Net charge-off rate excluding purchased credit-impaired loans: (a)
Home equity		3.93	%		2.67	%		2.78	%		2.16	%		1.89	%
Prime mortgage		1.95			1.20			1.79			1.08			0.56
Subprime mortgage		9.91			8.08			7.65			4.98			3.82
Option ARMs		0.18			—			—			—			—
Auto loans		1.66			1.92			1.12			1.07			1.10
Other		1.25			1.08			0.60			1.44			0.52
Total net charge-off rate excluding purchased credit-impaired loans (b)		3.12			2.32			2.43			1.89			1.57
Net charge-off rate — reported:
Home equity		3.14			2.15			2.78			2.16			1.89
Prime mortgage		1.46			0.89			1.79			1.08			0.56
Subprime mortgage		6.83			5.64			7.65			4.98			3.82
Option ARMs		0.04			—			—			—			—
Auto loans		1.66			1.92			1.12			1.07			1.10
Other		1.25			1.08			0.60			1.44			0.52
Total net charge-off rate — reported (b)		2.33			1.74			2.43			1.89			1.57
30+ day delinquency rate excluding purchased credit-impaired loans (c) (d) (e)		4.73			4.21			3.16			3.88			3.33
Nonperforming assets (f) (g) (h)	$	9,267		$	8,653		$	7,705		$	4,996		$	4,031			7			130
Allowance for loan losses to ending loans		2.83	%		2.36	%		1.95	%		2.33	%		2.10	%
Allowance for loan losses to ending loans excluding purchased credit-impaired loans (a)		3.79			3.16			2.50			2.33			2.10

(a)	Excludes the impact of purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management’s estimate, as of the acquisition date, of credit losses over the remaining life of the portfolio. No allowance for loan losses and no charge-offs have been recorded for these loans as of March 31, 2009, December 31, 2008, and September 30, 2008, respectively.
(b)	Average loans held-for-sale of $3.1 billion, $1.8 billion, $1.5 billion, $3.6 billion, and $4.4 billion, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, were excluded when calculating the net charge-off rate.
(c)	Excluded loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by U.S. government agencies of $4.5 billion, $3.2 billion, $2.0 billion, $1.5 billion, and $1.5 billion at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts are excluded as reimbursement is proceeding normally.
(d)	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 $770 million, $824 million, $787 million, $735 million, and $734 million, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts are excluded as reimbursement is proceeding normally.
(e)	The delinquency rate for purchased credit-impaired loans accounted for under SOP 03-3 was 21.36%, 17.89%, and 13.21% at March 31, 2009, December 31, 2008, and September 30, 2008, respectively. There were no purchased credit-impaired loans at June 30, 2008, and March 31, 2008.
(f)	Nonperforming 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 $4.6 billion, $3.3 billion, $1.8 billion, $1.9 billion, and $1.8 billion, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, and (2) student 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 $433 million, $437 million, $405 million, $394 million, and $418 million, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts for GNMA and student loans are excluded, as reimbursement is proceeding normally.
(g)	During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform to all other home lending products. Prior period nonperforming assets have been revised to reflect this change.
(h)	Excludes purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing under SOP 03-3.

Page 15

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
CONSUMER LENDING (continued)
Origination volume:
Mortgage origination volume by channel
Retail	$	13.6		$	7.6		$	8.4		$	12.5		$	12.6			79	%		8	%
Wholesale		2.6			3.8			5.9			9.1			10.6			(32	)		(75	)
Correspondent		17.0			13.3			13.2			17.0			12.0			28			42
CNT (negotiated transactions)		4.5			3.4			10.2			17.5			11.9			32			(62	)
Total mortgage origination volume		37.7			28.1			37.7			56.1			47.1			34			(20	)
Home equity		0.9			1.7			2.6			5.3			6.7			(47	)		(87	)
Student loans		1.7			1.0			2.6			1.3			2.0			70			(15	)
Auto loans		5.6			2.8			3.8			5.6			7.2			100			(22	)
Average mortgage loans held-for-sale & loans at fair value (a)		14.0			12.2			14.9			17.4			13.8			15			1
Average assets		393.3			395.0			239.8			242.1			234.6			—			68
Third-party mortgage loans serviced (ending)		1,148.8			1,172.6			1,114.8			659.1			627.1			(2	)		83
MSR net carrying value (ending)		10.6			9.3			16.4			10.9			8.4			14			26
SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions)
Production revenue	$	481		$	62		$	66		$	394		$	376		NM				28
Net mortgage servicing revenue:
Loan servicing revenue		1,222			1,366			654			645			593			(11	)		106
Changes in MSR asset fair value:
Due to inputs or assumptions in model		1,310			(6,950	)		(786	)		1,519			(632	)	NM			NM
Other changes in fair value		(1,073	)		(843	)		(390	)		(394	)		(425	)		(27	)		(152	)
Total changes in MSR asset fair value		237			(7,793	)		(1,176	)		1,125			(1,057	)	NM			NM
Derivative valuation adjustments and other		(307	)		8,327			894			(1,468	)		613		NM			NM
Total net mortgage servicing revenue		1,152			1,900			372			302			149			(39	)	NM
Mortgage fees and related income		1,633			1,962			438			696			525			(17	)		211

(a) Prime mortgages with the intent to sell are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. Average balances of these loans totaled $13.4 billion, $12.0 billion, $14.5 billion, $16.9 billion, and $13.4 billion for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

Page 16

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
INCOME STATEMENT
REVENUE
Credit card income	$	844		$	862		$	633		$	673		$	600			(2	)%		41	%
All other income		(197	)		(272	)		13			91			119			28		NM
Noninterest revenue		647			590			646			764			719			10			(10	)
Net interest income		4,482			4,318			3,241			3,011			3,185			4			41
TOTAL NET REVENUE		5,129			4,908			3,887			3,775			3,904			5			31
Provision for credit losses		4,653			3,966			2,229			2,194			1,670			17			179
NONINTEREST EXPENSE
Compensation expense		357			335			267			258			267			7			34
Noncompensation expense		850			979			773			763			841			(13	)		1
Amortization of intangibles		139			175			154			164			164			(21	)		(15	)
TOTAL NONINTEREST EXPENSE		1,346			1,489			1,194			1,185			1,272			(10	)		6
Income (loss) before income tax expense		(870	)		(547	)		464			396			962			(59	)	NM
Income tax expense (benefit)		(323	)		(176	)		172			146			353			(84	)	NM
NET INCOME (LOSS)	$	(547	)	$	(371	)	$	292		$	250		$	609			(47	)	NM
Memo: Net securitization gains (amortization)	$	(180	)	$	(261	)	$	(28	)	$	36		$	70			31		NM
FINANCIAL METRICS
ROE		(15	)%		(10	)%		8	%		7	%		17	%
Overhead ratio		26			30			31			31			33
% of average managed outstandings:
Net interest income		9.91			9.17			8.18			7.92			8.34
Provision for credit losses		10.29			8.42			5.63			5.77			4.37
Noninterest revenue		1.43			1.25			1.63			2.01			1.88
Risk adjusted margin (a)		1.05			2.00			4.19			4.16			5.85
Noninterest expense		2.98			3.16			3.01			3.12			3.33
Pretax income (loss) (ROO) (b)		(1.92	)		(1.16	)		1.17			1.04			2.52
Net income (loss)		(1.21	)		(0.79	)		0.74			0.66			1.60
BUSINESS METRICS
Charge volume (in billions)	$	76.0		$	96.0		$	93.9		$	93.6		$	85.4			(21	)		(11	)
Net accounts opened (in millions) (c)		2.2			4.3			16.6			3.6			3.4			(49	)		(35	)
Credit cards issued (in millions)		159.0			168.7			171.9			157.6			156.4			(6	)		2
Number of registered internet customers (in millions)		33.8			35.6			34.3			28.0			26.7			(5	)		27
Merchant acquiring business (d)
Bank card volume (in billions)	$	94.4		$	135.1		$	197.1		$	199.3		$	182.4			(30	)		(48	)
Total transactions (in billions)		4.1			4.9			5.7			5.6			5.2			(16	)		(21	)

(a)	Represents total net revenue less provision for credit losses.
(b)	Pretax return on average managed outstandings.
(c)	Third quarter of 2008 included approximately 13 million credit card accounts acquired by JPMorgan Chase & Co. in the Washington Mutual transaction.
(d)	The Chase Paymentech Solutions joint venture was dissolved effective November 1, 2008. For the period January 1, 2008 through October 31, 2008, the data presented represents activity for the Chase Paymentech Solutions joint venture and beyond that date, the data presented represents activity for Chase Paymentech Solutions.

Page 17

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
SELECTED BALANCE SHEET DATA (Period-end)
Loans:
Loans on balance sheets	$	90,911		$	104,746		$	92,881		$	76,278		$	75,888			(13	)%		20	%
Securitized loans		85,220			85,571			93,664			79,120			75,062			—			14
Managed loans	$	176,131		$	190,317		$	186,545		$	155,398		$	150,950			(7	)		17
Equity	$	15,000		$	15,000		$	15,000		$	14,100		$	14,100			—			6
SELECTED BALANCE SHEET DATA (Average)
Managed assets	$	201,200		$	203,943		$	169,413		$	161,601		$	159,602			(1	)		26
Loans:
Loans on balance sheets	$	97,783		$	98,790		$	79,183		$	75,630		$	79,445			(1	)		23
Securitized loans		85,619			88,505			78,371			77,195			74,108			(3	)		16
Managed average loans	$	183,402		$	187,295		$	157,554		$	152,825		$	153,553			(2	)		19
Equity	$	15,000		$	15,000		$	14,100		$	14,100		$	14,100			—			6
Headcount		23,759			24,025			22,283			19,570			18,931			(1	)		26
MANAGED CREDIT QUALITY STATISTICS
Net charge-offs	$	3,493		$	2,616		$	1,979		$	1,894		$	1,670			34			109
Net charge-off rate (a)		7.72	%		5.56	%		5.00	%		4.98	%		4.37	%
Managed delinquency rates
30+ day (a)		6.16	%		4.97	%		3.91	%		3.46	%		3.66	%
90+ day (a)		3.22			2.34			1.77			1.76			1.84
Allowance for loan losses (b)	$	8,849		$	7,692		$	5,946		$	3,705		$	3,404			15			160
Allowance for loan losses to period-end loans (b)		9.73	%		7.34	%		6.40	%		4.86	%		4.49	%
KEY STATS — WASHINGTON MUTUAL ONLY (c)
Managed loans	$	25,908		$	28,250		$	27,235									(8	)	NM
Managed average loans		27,578			27,703												—		NM
Net interest income (d)		16.45	%		14.87	%
Risk adjusted margin (d) (e)		4.42			4.18
Net charge-off rate (a)		12.63			7.11
30+ day delinquency rate (a)		10.89			8.50			5.20	%
90+ day delinquency rate (a)		5.79			3.75			1.95
KEY STATS — EXCLUDING WASHINGTON MUTUAL
Managed loans	$	150,223		$	162,067		$	159,310		$	155,398		$	150,950			(7	)		—
Managed average loans		155,824			159,592			157,554			152,825			153,553			(2	)		1
Net interest income (d)		8.75	%		8.18	%		8.18	%		7.92	%		8.34	%
Risk adjusted margin (d) (e)		0.46			1.62			4.19			4.16			5.85
Net charge-off rate		6.86			5.29			5.00			4.98			4.37
30+ day delinquency rate		5.34			4.36			3.69			3.46			3.66
90+ day delinquency rate		2.78			2.09			1.74			1.76			1.84

(a)	Results for the quarters ending March 31, 2009, December 31, 2008, and September 30, 2008 reflect the impact of purchase accounting adjustments related to the Washington Mutual transaction.
(b)	Based on loans on a reported basis.
(c)	Statistics are only presented for periods after September 25, 2008, the date of the Washington Mutual transaction.
(d)	As a percentage of average managed outstandings.
(e)	Represents total net revenue less provision for credit losses.

Page 18

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
INCOME STATEMENT DATA (a)
Credit card income
Reported	$	1,384		$	1,553		$	1,476		$	1,516		$	1,537			(11	)%		(10	)%
Securitization adjustments		(540	)		(691	)		(843	)		(843	)		(937	)		22			42
Managed credit card income	$	844		$	862		$	633		$	673		$	600			(2	)		41
Net interest income
Reported	$	2,478		$	2,408		$	1,525		$	1,338		$	1,567			3			58
Securitization adjustments		2,004			1,910			1,716			1,673			1,618			5			24
Managed net interest income	$	4,482		$	4,318		$	3,241		$	3,011		$	3,185			4			41
Total net revenue
Reported	$	3,665		$	3,689		$	3,014		$	2,945		$	3,223			(1	)		14
Securitization adjustments		1,464			1,219			873			830			681			20			115
Managed total net revenue	$	5,129		$	4,908		$	3,887		$	3,775		$	3,904			5			31
Provision for credit losses
Reported	$	3,189		$	2,747		$	1,356		$	1,364		$	989			16			222
Securitization adjustments		1,464			1,219			873			830			681			20			115
Managed provision for credit losses	$	4,653		$	3,966		$	2,229		$	2,194		$	1,670			17			179
BALANCE SHEETS — AVERAGE BALANCES (a)
Total average assets
Reported	$	118,418		$	118,290		$	93,701		$	87,021		$	88,013			—			35
Securitization adjustments		82,782			85,653			75,712			74,580			71,589			(3	)		16
Managed average assets	$	201,200		$	203,943		$	169,413		$	161,601		$	159,602			(1	)		26
CREDIT QUALITY STATISTICS (a)
Net charge-offs
Reported	$	2,029		$	1,397		$	1,106		$	1,064		$	989			45			105
Securitization adjustments		1,464			1,219			873			830			681			20			115
Managed net charge-offs	$	3,493		$	2,616		$	1,979		$	1,894		$	1,670			34			109

(a) JPMorgan Chase & Co. 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 & Co. 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 19

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
INCOME STATEMENT
REVENUE
Lending & deposit-related fees	$	263		$	242		$	212		$	207		$	193			9	%		36	%
Asset management, administration and commissions		34			32			29			26			26			6			31
All other income (a)		125			102			147			150			115			23			9
Noninterest revenue		422			376			388			383			334			12			26
Net interest income		980			1,103			737			723			733			(11	)		34
TOTAL NET REVENUE		1,402			1,479			1,125			1,106			1,067			(5	)		31
Provision for credit losses		293			190			126			47			101			54			190
NONINTEREST EXPENSE
Compensation expense		200			164			177			173			178			22			12
Noncompensation expense		342			324			298			290			294			6			16
Amortization of intangibles		11			11			11			13			13			—			(15	)
TOTAL NONINTEREST EXPENSE		553			499			486			476			485			11			14
Income before income tax expense		556			790			513			583			481			(30	)		16
Income tax expense		218			310			201			228			189			(30	)		15
NET INCOME	$	338		$	480		$	312		$	355		$	292			(30	)		16
MEMO:
Revenue by product:
Lending	$	665		$	611		$	377		$	376		$	379			9			75
Treasury services		646			759			643			630			616			(15	)		5
Investment banking		73			88			87			91			68			(17	)		7
Other		18			21			18			9			4			(14	)		350
Total Commercial Banking revenue	$	1,402		$	1,479		$	1,125		$	1,106		$	1,067			(5	)		31
IB revenue, gross (b)	$	206		$	241		$	252		$	270		$	203			(15	)		1
Revenue by business:
Middle Market Banking	$	752		$	796		$	729		$	708		$	706			(6	)		7
Commercial Term Lending (c)		228			243			—			—			—			(6	)	NM
Mid-Corporate Banking		242			243			236			235			207			—			17
Real Estate Banking (c)		120			131			91			94			97			(8	)		24
Other (c)		60			66			69			69			57			(9	)		5
Total Commercial Banking revenue	$	1,402		$	1,479		$	1,125		$	1,106		$	1,067			(5	)		31
FINANCIAL RATIOS
ROE		17	%		24	%		18	%		20	%		17	%
Overhead ratio		39			34			43			43			45

(a)	IB-related and commercial card revenue is included in all other income.
(b)	Represents the total revenue related to investment banking products sold to Commercial Banking (“CB”) clients.
(c)	Includes total net revenue on net assets acquired in the Washington Mutual transaction starting in the period ending December 31, 2008.

Page 20

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
SELECTED BALANCE SHEET DATA (Period-end)
Equity	$	8,000		$	8,000		$	8,000		$	7,000		$	7,000			—	%		14	%
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	144,298		$	149,815		$	101,681		$	103,469		$	101,979			(4	)		41
Loans:
Loans retained		113,568			117,351			71,901			70,682			67,510			(3	)		68
Loans held-for-sale & loans at fair value		297			329			397			379			521			(10	)		(43	)
Total loans		113,865			117,680			72,298			71,061			68,031			(3	)		67
Liability balances (a)		114,975			114,113			99,410			99,404			99,477			1			16
Equity		8,000			8,000			7,000			7,000			7,000			—			14
MEMO:
Loans by business:
Middle Market Banking	$	40,728		$	42,613		$	43,155		$	42,879		$	40,111			(4	)		2
Commercial Term Lending (b)		36,814			37,039			—			—			—			(1	)	NM
Mid-Corporate Banking		18,416			18,169			16,491			15,357			15,150			1			22
Real Estate Banking (b)		13,264			13,529			7,513			7,500			7,457			(2	)		78
Other (b)		4,643			6,330			5,139			5,325			5,313			(27	)		(13	)
Total Commercial Banking loans	$	113,865		$	117,680		$	72,298		$	71,061		$	68,031			(3	)		67
Headcount		4,545			5,206			5,298			4,028			4,075			(13	)		12
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	134		$	118		$	40		$	49		$	81			14			65
Nonperforming loans (c) (d)		1,531			1,026			844			486			446			49			243
Nonperforming assets		1,651			1,142			923			510			453			45			264
Allowance for credit losses:
Allowance for loan losses (e)		2,945			2,826			2,698			1,843			1,790			4			65
Allowance for lending-related commitments		240			206			191			170			200			17			20
Total allowance for credit losses		3,185			3,032			2,889			2,013			1,990			5			60
Net charge-off rate (f)		0.48	%		0.40	%		0.22	%		0.28	%		0.48	%
Allowance for loan losses to average loans (d) (f)		2.59			2.41			2.32	(g)		2.61			2.65
Allowance for loan losses to nonperforming loans (c) (d)		192			275			320			401			426
Nonperforming loans to average loans (d)		1.34			0.87			0.72	(g)		0.68			0.66

(a)	Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements.
(b)	Includes loans acquired in the Washington Mutual transaction starting in the period ending December 31, 2008.
(c)	Nonperforming loans included loans held-for-sale and loans at fair value of $26 million at both June 30, 2008, and March 31, 2008. These amounts were excluded when calculating the allowance for loan losses to nonperforming loans ratio. There were no nonperforming loans held-for-sale or held at fair value at March 31, 2009, December 31, 2008, and September 30, 2008.
(d)	Wholesale purchased credit-impaired loans accounted for under SOP 03-3 that were acquired in the Washington Mutual transaction are considered nonperforming loans because the timing and amount of expected cash flows are not reasonably estimable. These nonperforming loans were included when calculating the allowance coverage ratio, the allowance for loan losses to nonperforming loans ratio, and the nonperforming loans to average loans ratio. The carrying amount of these purchased credit-impaired loans at March 31, 2009, December 31, 2008, and September 30, 2008, was $219 million, $224 million and $272 million, respectively.
(e)	The allowance for loan losses at September 30, 2008, and June 30, 2008, included amounts related to loans acquired in the Washington Mutual transaction and the merger with Bear Stearns, respectively.
(f)	Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratio and the net charge-off rate.
(g)	Average loans in the calculation of this ratio were adjusted to include $44.5 billion of loans acquired from Washington Mutual as if the transaction occurred on July 1, 2008. Excluding this adjustment, the unadjusted allowance for loan losses to average loans and nonperforming loans to average loans ratios would have been 3.75% and 1.17%, respectively.

Page 21

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
INCOME STATEMENT
REVENUE
Lending & deposit-related fees	$	325		$	304		$	290		$	283		$	269			7	%		21	%
Asset management, administration and commissions		626			748			719			846			820			(16	)		(24	)
All other income		197			268			221			228			200			(26	)		(2	)
Noninterest revenue		1,148			1,320			1,230			1,357			1,289			(13	)		(11	)
Net interest income		673			929			723			662			624			(28	)		8
TOTAL NET REVENUE		1,821			2,249			1,953			2,019			1,913			(19	)		(5	)
Provision for credit losses		(6	)		45			18			7			12		NM			NM
Credit reimbursement to IB (a)		(30	)		(30	)		(31	)		(30	)		(30	)		—			—
NONINTEREST EXPENSE
Compensation expense		629			628			664			669			641			—			(2	)
Noncompensation expense		671			692			661			632			571			(3	)		18
Amortization of intangibles		19			19			14			16			16			—			19
TOTAL NONINTEREST EXPENSE		1,319			1,339			1,339			1,317			1,228			(1	)		7
Income before income tax expense		478			835			565			665			643			(43	)		(26	)
Income tax expense		170			302			159			240			240			(44	)		(29	)
NET INCOME	$	308		$	533		$	406		$	425		$	403			(42	)		(24	)
REVENUE BY BUSINESS
Treasury Services (b)	$	931		$	1,068		$	946		$	905		$	860			(13	)		8
Worldwide Securities Services (b)		890			1,181			1,007			1,114			1,053			(25	)		(15	)
TOTAL NET REVENUE	$	1,821		$	2,249		$	1,953		$	2,019		$	1,913			(19	)		(5	)
FINANCIAL RATIOS
ROE		25	%		47	%		46	%		49	%		46	%
Overhead ratio		72			60			69			65			64
Pretax margin ratio (c)		26			37			29			33			34
SELECTED BALANCE SHEET DATA (Period-end)
Equity	$	5,000		$	4,500		$	4,500		$	3,500		$	3,500			11			43
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	38,682		$	55,515		$	49,386		$	56,192		$	57,204			(30	)		(32	)
Loans (d)		20,140			31,283			26,650			23,822			23,086			(36	)		(13	)
Liability balances (e)		276,486			336,277			259,992			268,293			254,369			(18	)		9
Equity		5,000			4,500			3,500			3,500			3,500			11			43
Headcount		26,998			27,070			27,592			27,232			26,561			—			2

(a)	TSS is charged a credit reimbursement related to certain exposures managed within IB credit portfolio on behalf of clients shared with TSS.
(b)	Reflects an internal reorganization for escrow products from Worldwide Securities Services to Treasury Services revenue of $45 million, $75 million, $49 million, $53 million, and $47 million, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.
(c)	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.
(d)	Loan balances include wholesale overdrafts, commercial card and trade finance loans.
(e)	Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements.

Page 22

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

TSS firmwide metrics include revenue recorded in the CB, Regional Banking and Asset Management (“AM”) lines of business and excludes FX revenue recorded in the IB for TSS-related FX activity. In order to capture the firmwide impact of Treasury Services (“TS”) and TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
TSS FIRMWIDE DISCLOSURES
Treasury Services revenue — reported (a)	$	931		$	1,068		$	946		$	905		$	860			(13	)%		8	%
Treasury Services revenue reported in Commercial Banking		646			759			643			630			616			(15	)		5
Treasury Services revenue reported in other lines of business		62			82			76			72			69			(24	)		(10	)
Treasury Services firmwide revenue (a) (b)		1,639			1,909			1,665			1,607			1,545			(14	)		6
Worldwide Securities Services revenue (a)		890			1,181			1,007			1,114			1,053			(25	)		(15	)
Treasury & Securities Services firmwide revenue (b)	$	2,529		$	3,090		$	2,672		$	2,721		$	2,598			(18	)		(3	)
Treasury Services firmwide liability balances (average) (c) (d)	$	289,645		$	312,559		$	248,075		$	252,625		$	243,168			(7	)		19
Treasury & Securities Services firmwide liability balances (average) (c)		391,461			450,390			359,401			367,670			353,845			(13	)		11
TSS FIRMWIDE FINANCIAL RATIOS
Treasury Services firmwide overhead ratio (e)		53	%		44	%		52	%		53	%		54	%
Treasury & Securities Services firmwide overhead ratio (e)		63			52			60			58			58
FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)	$	13,532		$	13,205		$	14,417		$	15,476		$	15,690			2			(14	)
Number of:
US$ ACH transactions originated (in millions)		978			1,006			997			993			1,004			(3	)		(3	)
Total US$ clearing volume (in thousands)		27,186			29,346			29,277			29,063			28,056			(7	)		(3	)
International electronic funds transfer volume (in thousands) (f)		44,365			47,734			41,831			41,432			40,039			(7	)		11
Wholesale check volume (in millions)		568			572			595			618			623			(1	)		(9	)
Wholesale cards issued (in thousands) (g)		22,233			22,784			21,858			19,917			19,122			(2	)		16
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (recoveries)	$	2		$	—		$	—		$	(2	)	$	—		NM			NM
Nonperforming loans		30			30			—			—			—			—		NM
Allowance for loan losses		51			74			47			40			26			(31	)		96
Allowance for lending-related commitments		77			63			45			33			33			22			133
Net charge-off (recovery) rate		0.04	%		—	%		—	%		(0.03	)%		—	%
Allowance for loan losses to average loans		0.25			0.24			0.18			0.17			0.11
Allowance for loan losses to nonperforming loans		170			247		NM			NM			NM
Nonperforming loans to average loans		0.15			0.10			—			—			—

(a)	Reflects an internal reorganization for escrow products from Worldwide Securities Services to Treasury Services revenue of $45 million, $75 million, $49 million, $53 million, and $47 million, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.
(b)	TSS firmwide FX revenue includes FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of the IB. FX revenue associated with TSS customers who are FX customers of the IB was $154 million, $271 million, $196 million, $222 million, and $191 million, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts are not included in TS and TSS firmwide revenue.
(c)	Firmwide liability balances include TS’ liability balances recorded in the Commercial Banking line of business.
(d)	Reflects an internal reorganization for escrow products from Worldwide Securities Services to Treasury Services liability balances of $18.2 billion, $22.3 billion, $20.3 billion, $21.9 billion, and $21.5 billion, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.
(e)	Overhead ratios have been calculated based upon firmwide revenue and TSS and TS expense, respectively, including those allocated to certain other lines of business. FX revenue and expense recorded in the IB for TSS-related FX activity are not included in this ratio.
(f)	International electronic funds transfer includes non-US$ ACH and clearing volume.
(g)	Wholesale cards issued include domestic commercial card, stored value card, prepaid card, and government electronic benefit card products.

Page 23

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,231		$	1,362		$	1,538		$	1,573		$	1,531			(10	)%		(20	)%
All other income		69			(170	)		43			130			59		NM				17
Noninterest revenue		1,300			1,192			1,581			1,703			1,590			9			(18	)
Net interest income		403			466			380			361			311			(14	)		30
TOTAL NET REVENUE		1,703			1,658			1,961			2,064			1,901			3			(10	)
Provision for credit losses		33			32			20			17			16			3			106
NONINTEREST EXPENSE
Compensation expense		800			689			816			886			825			16			(3	)
Noncompensation expense		479			504			525			494			477			(5	)		—
Amortization of intangibles		19			20			21			20			21			(5	)		(10	)
TOTAL NONINTEREST EXPENSE		1,298			1,213			1,362			1,400			1,323			7			(2	)
Income before income tax expense		372			413			579			647			562			(10	)		(34	)
Income tax expense		148			158			228			252			206			(6	)		(28	)
NET INCOME	$	224		$	255		$	351		$	395		$	356			(12	)		(37	)
REVENUE BY CLIENT SEGMENT
Private Bank (a)	$	583		$	630		$	631		$	708		$	596			(7	)		(2	)
Institutional		460			327			486			472			490			41			(6	)
Private Wealth Management (a)		312			330			352			356			349			(5	)		(11	)
Retail		253			265			399			490			466			(5	)		(46	)
Bear Stearns Brokerage		95			106			93			38			—			(10	)	NM
Total net revenue	$	1,703		$	1,658		$	1,961		$	2,064		$	1,901			3			(10	)
FINANCIAL RATIOS
ROE		13	%		14	%		25	%		31	%		29	%
Overhead ratio		76			73			69			68			70
Pretax margin ratio (b)		22			25			30			31			30
BUSINESS METRICS
Number of:
Client advisors		1,708			1,705			1,684			1,717			1,744			—			(2	)
Retirement planning services participants		1,628,000			1,531,000			1,492,000			1,505,000			1,519,000			6			7
Bear Stearns brokers		359			324			323			326			—			11		NM
% of customer assets in 4 & 5 Star Funds (c)		42	%		42	%		39	%		40	%		49	%		—			(14	)
% of AUM in 1st and 2nd quartiles: (d)
1 year		54	%		54	%		49	%		51	%		52	%		—			4
3 years		62	%		65	%		67	%		70	%		73	%		(5	)		(15	)
5 years		66	%		76	%		77	%		76	%		75	%		(13	)		(12	)
SELECTED BALANCE SHEET DATA (Period-end)
Equity	$	7,000		$	7,000		$	7,000		$	5,200		$	5,000			—			40
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	58,227		$	65,648		$	71,189		$	65,015		$	60,286			(11	)		(3	)
Loans		34,585			36,851			39,750			39,264			36,628			(6	)		(6	)
Deposits		81,749			76,911			65,621			69,975			68,184			6			20
Equity		7,000			7,000			5,500			5,066			5,000			—			40
Headcount		15,109			15,339			15,493			15,840			14,955			(1	)		1
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (recoveries)	$	19		$	12		$	(1	)	$	2		$	(2	)		58		NM
Nonperforming loans		301			147			121			68			11			105		NM
Allowance for loan losses		215			191			170			147			130			13			65
Allowance for lending-related commitments		4			5			5			5			6			(20	)		(33	)
Net charge-off (recovery) rate		0.22	%		0.13	%		(0.01	)%		0.02	%		(0.02	)%
Allowance for loan losses to average loans		0.62			0.52			0.43			0.37			0.35
Allowance for loan losses to nonperforming loans		71			130			140			216			1,182
Nonperforming loans to average loans		0.87			0.40			0.30			0.17			0.03

(a)	In the third quarter of 2008, certain clients were transferred from Private Bank to Private Wealth Management. Prior periods have been revised to conform with this change.
(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)	Derived from the following rating services: Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.
(d)	Derived from the following rating services: Lipper for the United States and Taiwan; Micropal for the United Kingdom, Luxembourg and Hong Kong; and Nomura for Japan.

Page 24

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

											Mar 31, 2009
											Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
	2009		2008		2008		2008		2008		2008			2008
Assets by asset class
Liquidity	$	625	$	613	$	524	$	478	$	471		2	%		33	%
Fixed income		180		180		189		199		200		—			(10	)
Equities & balanced		215		240		308		378		390		(10	)		(45	)
Alternatives		95		100		132		130		126		(5	)		(25	)
TOTAL ASSETS UNDER MANAGEMENT		1,115		1,133		1,153		1,185		1,187		(2	)		(6	)
Custody / brokerage / administration / deposits		349		363		409		426		382		(4	)		(9	)
TOTAL ASSETS UNDER SUPERVISION	$	1,464	$	1,496	$	1,562	$	1,611	$	1,569		(2	)		(7	)
Assets by client segment
Institutional	$	668	$	681	$	653	$	645	$	652		(2	)		2
Private Bank (a)		181		181		194		181		179		—			1
Retail		184		194		223		276		279		(5	)		(34	)
Private Wealth Management (a)		68		71		75		75		77		(4	)		(12	)
Bear Stearns Brokerage		14		6		8		8		—		133		NM
TOTAL ASSETS UNDER MANAGEMENT	$	1,115	$	1,133	$	1,153	$	1,185	$	1,187		(2	)		(6	)
Institutional	$	669	$	682	$	653	$	646	$	652		(2	)		3
Private Bank (a)		375		378		417		415		412		(1	)		(9	)
Retail		250		262		303		357		366		(5	)		(32	)
Private Wealth Management (a)		120		124		134		133		139		(3	)		(14	)
Bear Stearns Brokerage		50		50		55		60		—		—		NM
TOTAL ASSETS UNDER SUPERVISION	$	1,464	$	1,496	$	1,562	$	1,611	$	1,569		(2	)		(7	)
Assets by geographic region
U.S. / Canada	$	789	$	798	$	785	$	771	$	773		(1	)		2
International		326		335		368		414		414		(3	)		(21	)
TOTAL ASSETS UNDER MANAGEMENT	$	1,115	$	1,133	$	1,153	$	1,185	$	1,187		(2	)		(6	)
U.S. / Canada	$	1,066	$	1,084	$	1,100	$	1,093	$	1,063		(2	)		—
International		398		412		462		518		506		(3	)		(21	)
TOTAL ASSETS UNDER SUPERVISION	$	1,464	$	1,496	$	1,562	$	1,611	$	1,569		(2	)		(7	)
Mutual fund assets by asset class
Liquidity	$	570	$	553	$	470	$	416	$	405		3			41
Fixed income		42		41		44		47		45		2			(7	)
Equities		93		99		134		179		186		(6	)		(50	)
TOTAL MUTUAL FUND ASSETS	$	705	$	693	$	648	$	642	$	636		2			11

(a) In the third quarter of 2008, certain clients were transferred from Private Bank to Private Wealth Management. Prior periods have been revised to conform with this change.

Page 25

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

	QUARTERLY TRENDS
	1Q09			4Q08			3Q08			2Q08			1Q08
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,133		$	1,153		$	1,185		$	1,187		$	1,193
Net asset flows:
Liquidity		19			86			55			1			68
Fixed income		1			(7	)		(4	)		(1	)		—
Equities, balanced & alternative		(5	)		(18	)		(5	)		(3	)		(21	)
Market / performance / other impacts (a)		(33	)		(81	)		(78	)		1			(53	)
TOTAL ASSETS UNDER MANAGEMENT	$	1,115		$	1,133		$	1,153		$	1,185		$	1,187
Assets under supervision rollforward
Beginning balance	$	1,496		$	1,562		$	1,611		$	1,569		$	1,572
Net asset flows		25			73			61			(5	)		52
Market / performance / other impacts (a)		(57	)		(139	)		(110	)		47			(55	)
TOTAL ASSETS UNDER SUPERVISION	$	1,464		$	1,496		$	1,562		$	1,611		$	1,569

(a) Second quarter 2008 reflects $15 billion for assets under management and $68 billion for assets under supervision from the Bear Stearns merger on May 30, 2008.

Page 26

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
INCOME STATEMENT
REVENUE
Principal transactions	$	(1,493	)	$	(1,620	)	$	(1,876	)	$	(97	)	$	5			8	%	NM		%
Securities gains		214			499			440			656			42			(57	)		410
All other income (a)		(19	)		685			(275	)		(378	)		1,641		NM			NM
Noninterest revenue		(1,298	)		(436	)		(1,711	)		181			1,688			(198	)	NM
Net interest income (expense)		989			868			(125	)		(47	)		(349	)		14		NM
TOTAL NET REVENUE		(309	)		432			(1,836	)		134			1,339		NM			NM
Provision for credit losses (b)		—			(33	)		1,977			37			—		NM				—
NONINTEREST EXPENSE
Compensation expense		641			438			652			611			639			46			—
Noncompensation expense (c)		345			673			563			689			(84	)		(49	)	NM
Merger costs		205			181			96			155			—			13		NM
Subtotal		1,191			1,292			1,311			1,455			555			(8	)		115
Net expense allocated to other businesses		(1,279	)		(1,364	)		(1,150	)		(1,070	)		(1,057	)		6			(21	)
TOTAL NONINTEREST EXPENSE		(88	)		(72	)		161			385			(502	)		(22	)		82
Income (loss) before income tax expense and extraordinary gain		(221	)		537			(3,974	)		(288	)		1,841		NM			NM
Income tax expense (benefit)		41			317			(1,613	)		31			730			(87	)		(94	)
Income (loss) before extraordinary gain		(262	)		220			(2,361	)		(319	)		1,111		NM			NM
Extraordinary gain (d)		—			1,325			581			—			—		NM				—
NET INCOME (LOSS)	$	(262	)	$	1,545		$	(1,780	)	$	(319	)	$	1,111		NM			NM
MEMO:
TOTAL NET REVENUE
Private equity	$	(449	)	$	(1,107	)	$	(216	)	$	197		$	163			59		NM
Corporate		140			1,539			(1,620	)		(63	)		1,176			(91	)		(88	)
TOTAL NET REVENUE	$	(309	)	$	432		$	(1,836	)	$	134		$	1,339		NM			NM
NET INCOME (LOSS)
Private equity	$	(280	)	$	(682	)	$	(164	)	$	99		$	57			59		NM
Corporate		252			1,163			(881	)		122			1,054			(78	)		(76	)
Merger-related items (e)		(234	)		1,064			(735	)		(540	)		—		NM			NM
TOTAL NET INCOME (LOSS)	$	(262	)	$	1,545		$	(1,780	)	$	(319	)	$	1,111		NM			NM
Headcount		22,339			23,376			24,967			22,317			21,769			(4	)		3

(a)	Included the following significant items: a gain of $1.0 billion from the dissolution of the Chase Paymentech Solutions joint venture in the fourth quarter of 2008, a charge of $375 million for the repurchase of auction rate securities in the third quarter of 2008, $423 million representing the Firm’s share of Bear Stearns’ losses from April 8 to May 30, 2008, in the second quarter of 2008, and proceeds of $1.5 billion from the sale of Visa shares in its initial public offering in the first quarter of 2008.
(b)	The fourth and third quarters of 2008 included accounting conformity loan loss reserve provisions related to the acquisition of Washington Mutual Bank’s banking operations. An analysis of loans acquired in the transaction was substantially completed during the fourth quarter. This resulted in an increase in the credit-impaired loan balances, a corresponding reduction in the non-credited-impaired portfolio and a reduction in the estimate of incurred losses related to the non-credit-impaired portfolio requiring a reduction in the accounting conformity provision for these loans. Also in the fourth quarter was a provision for credit losses related to the transfer of higher quality credit card loans from the legacy Chase portfolio to a securitization trust previously established by Washington Mutual.
(c)	Included a release of credit card litigation reserves in the first quarter of 2008.
(d)	On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank from the Federal Deposit Insurance Corporation for $1.9 billion. The fair value of the net assets acquired exceeded the purchase price which resulted in negative goodwill. In accordance with SFAS 141, noncurrent nonfinancial assets that are not held-for-sale were written down against that negative goodwill. The negative goodwill remaining of $581 million after writing down nonfinancial assets was recognized as an extraordinary gain in the third quarter of 2008. As a result of refining the purchase price allocation during the fourth quarter of 2008, an additional gain of $1.3 billion was recognized.
(e)	Included accounting conformity loan loss reserve provisions, extraordinary gains and merger costs related to the Washington Mutual transaction, as well as items related to the Bear Stearns merger, including Bear Stearns’ losses, merger costs, Bear Stearns asset management liquidation costs and Bear Stearns private client services broker retention expense.

Page 27

JPMORGAN CHASE & CO.
CORPORATE/PRIVATE EQUITY
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08				1Q08
SUPPLEMENTAL
TREASURY
Securities gains (a)	$	214		$	512		$	442		$	656		$	42			(58	)%			410	%
Investment securities portfolio (average) (b)		218,961			143,160			105,984			97,223			80,443			53				172
Investment securities portfolio (ending) (b)		246,697			166,662			115,703			103,751			91,323			48				170
Mortgage loans (average)		7,210			7,277			7,221			7,004			6,730			(1	)			7
Mortgage loans (ending)		7,162			7,292			7,297			7,150			6,847			(2	)			5
PRIVATE EQUITY
Private equity gains (losses)
Direct investments
Realized gains	$	15		$	24		$	40		$	540		$	1,113			(38	)			(99	)
Unrealized gains (losses) (c)		(409	)		(1,000	)		(273	)		(326	)		(881	)		59				54
																			��
Total direct investments		(394	)		(976	)		(233	)		214			232			60			NM
Third-party fund investments		(68	)		(121	)		27			6			(43	)		44				(58	)
Total private equity gains (losses) (d)	$	(462	)	$	(1,097	)	$	(206	)	$	220		$	189			58			NM
Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	305		$	483		$	600		$	615		$	603			(37	)			(49	)
Cost		778			792			705			665			499			(2	)			56
Quoted public value		346			543			657			732			720			(36	)			(52	)
Privately-held direct securities
Carrying value		4,708			5,564			6,038			6,270			5,191			(15	)			(9	)
Cost		5,519			6,296			6,058			6,113			4,973			(12	)			11
Third-party fund investments
Carrying value		1,537			805			889			838			811			91				90
Cost		2,082			1,169			1,121			1,094			1,064			78				96
Total private equity portfolio — Carrying value	$	6,550		$	6,852		$	7,527		$	7,723		$	6,605			(4	)			(1	)
Total private equity portfolio — Cost	$	8,379		$	8,257		$	7,884		$	7,872		$	6,536			1				28

(a)	Included a $668 million gain on the sale of MasterCard shares in the second quarter of 2008. All periods reflect repositioning of the Corporate investment securities portfolio and exclude gains/losses on securities used to manage risk associated with MSRs.
(b)	Includes Chief Investment Office investment securities only.
(c)	Unrealized gains (losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.
(d)	Included in principal transactions revenue in the Consolidated Statements of Income.

Page 28

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

											Mar 31, 2009
											Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
	2009		2008		2008		2008		2008		2008			2008
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	176,282	$	186,776	$	202,170	$	137,236	$	141,921		(6	)%		24	%
Loans — Non-U.S.		66,002		75,268		86,275		92,123		89,376		(12	)		(26	)
TOTAL WHOLESALE LOANS — REPORTED (b)		242,284		262,044		288,445		229,359		231,297		(8	)		5
CONSUMER (c)
Home loan portfolio — excluding purchased credit-impaired loans:
Home equity		111,781		114,335		116,804		95,129		94,968		(2	)		18
Prime mortgage		71,731		72,266		70,243		46,221		44,705		(1	)		60
Subprime mortgage		14,594		15,330		18,162		14,792		15,775		(5	)		(7	)
Option ARMs		8,940		9,018		18,989		—		—		(1	)	NM
Total home loan portfolio — excluding purchased credit-impaired loans		207,046		210,949		224,198		156,142		155,448		(2	)		33
Home loan portfolio — purchased credit-impaired loans: (d)
Home equity		28,366		28,555		26,507		—		—		(1	)	NM
Prime mortgage		21,398		21,855		24,672		—		—		(2	)	NM
Subprime mortgage		6,565		6,760		3,863		—		—		(3	)	NM
Option ARMs		31,243		31,643		22,653		—		—		(1	)	NM
Total home loan portfolio — purchased credit-impaired loans		87,572		88,813		77,695		—		—		(1	)	NM
Other consumer:
Auto		43,065		42,603		43,306		44,867		44,714		1			(4	)
Credit card — reported		90,911		104,746		92,881		76,278		75,888		(13	)		20
Other loans		33,700		33,715		33,252		29,187		25,175		—			34
Loans held-for-sale (e)		3,665		2,028		1,604		2,196		4,534		81			(19	)
TOTAL CONSUMER LOANS — REPORTED		465,959		482,854		472,936		308,670		305,759		(3	)		52
TOTAL LOANS — REPORTED		708,243		744,898		761,381		538,029		537,056		(5	)		32
Credit card — securitized		85,220		85,571		93,664		79,120		75,062		—			14
TOTAL LOANS — MANAGED		793,463		830,469		855,045		617,149		612,118		(4	)		30
Derivative receivables		131,247		162,626		118,648		122,389		99,110		(19	)		32
Receivables from customers (f)		14,504		16,141		25,422		26,572		—		(10	)	NM
TOTAL CREDIT-RELATED ASSETS		939,214		1,009,236		999,115		766,110		711,228		(7	)		32
Wholesale lending-related commitments		363,013		379,871		407,823		430,028		438,392		(4	)		(17	)
TOTAL	$	1,302,227	$	1,389,107	$	1,406,938	$	1,196,138	$	1,149,620		(6	)		13
Memo: Total by category
Total wholesale exposure (g)	$	751,048	$	820,682	$	840,338	$	808,348	$	768,799		(8	)		(2	)
Total consumer managed loans (h)		551,179		568,425		566,600		387,790		380,821		(3	)		45
Total	$	1,302,227	$	1,389,107	$	1,406,938	$	1,196,138	$	1,149,620		(6	)		13
Risk profile of wholesale credit exposure:
Investment-grade (i)	$	546,968	$	605,210	$	620,524	$	595,043	$	590,439		(10	)		(7	)
Noninvestment-grade: (i)
Noncriticized		147,891		159,379		161,503		154,218		147,771		(7	)		—
Criticized performing		25,320		22,568		14,491		11,611		9,570		12			165
Criticized nonperforming		4,615		3,429		1,418		899		742		35		NM
Total noninvestment-grade		177,826		185,376		177,412		166,728		158,083		(4	)		12
Loans held-for-sale & loans at fair value		11,750		13,955		16,980		20,005		20,277		(16	)		(42	)
Receivables from customers (f)		14,504		16,141		25,422		26,572		—		(10	)	NM
Total wholesale exposure	$	751,048	$	820,682	$	840,338	$	808,348	$	768,799		(8	)		(2	)

(a)	Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management.
(b)	Includes loans held-for-sale and loans at fair value.
(c)	Includes Retail Financial Services, Card Services and residential mortgage loans reported in the Corporate/Private Equity segment to be risk managed by the Chief Investment Office.
(d)	Purchased credit-impaired loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. Under SOP 03-3, these loans were initially recorded at fair value and accrete interest income over the estimated life of the loan when cash flows are reasonably estimable even if the underlying loans are contractually past due. As of September 30, 2008, an analysis of the acquired portfolio was conducted in order to preliminarily identify loans meeting the SOP 03-3 impairment criteria. This analysis was completed during the fourth quarter of 2008, resulting in the reclassification of $12.4 billion of acquired loans from the non-credit-impaired loan balances into the credit-impaired loan balances.
(e)	Includes loans for prime mortgage of $825 million, $206 million, $132 million, $964 million, and $375 million at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, and other (largely student loans) of $2.8 billion, $1.8 billion, $1.5 billion, $1.2 billion, and $4.2 billion at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.
(f)	Represents margin loans to prime and retail brokerage customers, which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.
(g)	Primarily represents total wholesale loans, derivative receivables, wholesale lending-related commitments and receivables from customers.
(h)	Represents total consumer loans plus credit card securitizations, and excludes consumer lending-related commitments.
(i)	Excludes loans held-for-sale and loans at fair value.
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 29

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

																Mar 31, 2009
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2009			2008			2008			2008			2008			2008			2008
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS (a)
Loans — U.S.	$	3,040		$	2,123		$	1,185		$	806		$	761			43	%		299	%
Loans — Non-U.S.		622			259			220			64			20			140		NM
TOTAL WHOLESALE LOANS		3,662			2,382			1,405			870			781			54			369
CONSUMER LOANS (b)
Home loan portfolio (includes RFS and Corporate/Private Equity):
Home equity (c)		1,591			1,394			1,142			1,008			924			14			72
Prime mortgage		2,712			1,895			1,496			1,232			860			43			215
Subprime mortgage (c)		2,545			2,690			2,384			1,715			1,401			(5	)		82
Option ARMs		97			10			—			—			—		NM			NM
Total home loan portfolio		6,945			5,989			5,022			3,955			3,185			16			118
Auto loans		165			148			119			102			94			11			76
Credit card — reported		4			4			5			6			6			—			(33	)
Other loans		625			430			382			340			335			45			87
TOTAL CONSUMER LOANS (d) (e)		7,739			6,571			5,528			4,403			3,620			18			114
TOTAL NONPERFORMING LOANS REPORTED (c)		11,401			8,953			6,933			5,273			4,401			27			159
Derivative receivables		1,010			1,079			45			80			31			(6	)	NM
Assets acquired in loan satisfactions		2,243			2,682			2,542			880			711			(16	)		215
TOTAL NONPERFORMING ASSETS	$	14,654		$	12,714		$	9,520		$	6,233		$	5,143			15			185
TOTAL NONPERFORMING LOANS TO TOTAL LOANS REPORTED		1.61	%		1.20	%		0.91	%		0.98	%		0.82	%
NONPERFORMING ASSETS BY LOB
Investment Bank	$	3,041		$	2,501		$	583		$	490		$	439			22		NM
Retail Financial Services (c) (e)		9,582			8,841			7,878			5,153			4,230			8			127
Card Services		4			4			5			6			6			—			(33	)
Commercial Banking		1,651			1,142			923			510			453			45			264
Treasury & Securities Services		30			30			—			—			—			—		NM
Asset Management		319			172			121			68			11			85		NM
Corporate/Private Equity (f)		27			24			10			6			4			13		NM
TOTAL	$	14,654		$	12,714		$	9,520		$	6,233		$	5,143			15			185

(a)	Included nonperforming loans held-for-sale and loans at fair value of $57 million, $32 million, $32 million, $51 million, and $70 million at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. Excluded purchased held-for-sale wholesale loans.
(b)	There were no nonperforming loans held-for-sale at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008.
(c)	During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform to all other home lending products. Prior period nonperforming loans and assets have been revised to reflect this change.
(d)	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 $4.6 billion, $3.3 billion, $1.8 billion, $1.9 billion, and $1.8 billion, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, and (2) student 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 $433 million, $437 million, $405 million, $394 million, and $418 million, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts for GNMA and student loans are excluded, as reimbursement is proceeding normally.
(e)	Excludes purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing under SOP 03-3.
(f)	Predominantly relates to held-for-investment prime mortgage.

Page 30

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
GROSS CHARGE-OFFS
Wholesale loans	$	206		$	238		$	71		$	82		$	130			(13	)%		58	%
Consumer (includes RFS and Corporate/Private Equity)		2,244			1,752			1,375			1,079			880			28			155
Credit card — reported		2,189			1,559			1,245			1,209			1,144			40			91
Total loans — reported		4,639			3,549			2,691			2,370			2,154			31			115
Credit card — securitized		1,579			1,351			985			949			791			17			100
Total loans — managed		6,218			4,900			3,676			3,319			2,945			27			111
RECOVERIES
Wholesale loans		15			21			19			41			38			(29	)		(61	)
Consumer (includes RFS and Corporate/Private Equity)		68			51			49			54			55			33			24
Credit card — reported		160			162			139			145			155			(1	)		3
Total loans — reported		243			234			207			240			248			4			(2	)
Credit card — securitized		115			123			112			119			110			(7	)		5
Total loans — managed		358			357			319			359			358			—			—
NET CHARGE-OFFS
Wholesale loans		191			217			52			41			92			(12	)		108
Consumer (includes RFS and Corporate/Private Equity)		2,176			1,701			1,326			1,025			825			28			164
Credit card — reported		2,029			1,397			1,106			1,064			989			45			105
Total loans — reported		4,396			3,315			2,484			2,130			1,906			33			131
Credit card — securitized		1,464			1,228			873			830			681			19			115
Total loans — managed	$	5,860		$	4,543		$	3,357		$	2,960		$	2,587			29			127
NET CHARGE-OFF RATES
Wholesale loans (a)		0.32	%		0.33	%		0.10	%		0.08	%		0.18	%
Consumer (b)		2.36			1.80			2.29			1.81			1.50
Consumer excluding purchased credit-impaired loans (b)		3.09			2.35			2.29			1.81			1.50
Credit card — reported		8.42			5.63			5.56			5.66			5.01
Total loans — reported (a) (b)		2.51			1.80			1.91			1.67			1.53
Credit card — securitized		6.93			5.48			4.43			4.32			3.70
Total loans — managed (a) (b)		2.98			2.20			2.24			2.02			1.81
Memo: Credit card — managed		7.72			5.56			5.00			4.98			4.37

(a)

Average wholesale loans held-for-sale and loans at fair value were $13.3 billion, $16.7 billion, $18.0 billion, $20.8 billion, and $20.1 billion, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts were excluded when calculating the net charge-off rates. Excluding average wholesale purchased credit-impaired loans of $222 million and $248 million for the quarters ended March 31, 2009 and December 31, 2008, respectively has no effect on the net charge-off rate.

(b)

Average consumer (excluding card) loans held-for-sale and loans at fair value were $3.1 billion, $1.8 billion, $1.5 billion, $3.6 billion, and $4.4 billion for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts were excluded when calculating the net charge-off rates.

Page 31

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	23,164		$	19,052		$	13,246		$	11,746		$	9,234			22	%		151	%
Acquired allowance resulting from the Washington Mutual transaction		—			—			2,535			—			—			—			—
Net charge-offs		4,396			3,315			2,484			2,130			1,906			33			131
Provision for loan losses (a)		8,617			7,434			5,760			3,624			4,419			16			95
Other		(4	)		(7	)		(5	)		6			(1	)		43			(300	)
Ending balance	$	27,381		$	23,164		$	19,052		$	13,246		$	11,746			18			133
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	659		$	713		$	686		$	855		$	850			(8	)		(22	)
Provision for lending-related commitments		(21	)		(121	)		27			(169	)		5			83		NM
Other		—			67			—			—			—		NM				—
Ending balance	$	638		$	659		$	713		$	686		$	855			(3	)		(25	)
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset specific	$	1,213		$	712		$	253		$	174		$	146			70		NM
Formula-based		6,691			5,833			5,326			4,295			3,691			15			81
Total wholesale		7,904			6,545			5,579			4,469			3,837			21			106
Consumer
Asset specific		106			74			70			61			75			43			41
Formula-based		19,371			16,545			13,403			8,716			7,834			17			147
Total consumer		19,477			16,619			13,473			8,777			7,909			17			146
Total allowance for loan losses		27,381			23,164			19,052			13,246			11,746			18			133
Allowance for lending-related commitments		638			659			713			686			855			(3	)		(25	)
Total allowance for credit losses	$	28,019		$	23,823		$	19,765		$	13,932		$	12,601			18			122
Wholesale allowance for loan losses to total wholesale loans (b)		3.43	%		2.64	%		2.06	%		2.13	%		1.82	%
Consumer allowance for loan losses to total consumer loans (c)		4.21			3.46			2.86			2.86			2.63
Consumer allowance for loan losses to total consumer loans excluding purchased credit-impaired loans (c) (d)		5.20			4.24			3.42			2.86			2.63
Allowance for loan losses to total loans (b) (c)		3.95			3.18			2.56			2.57			2.29
Allowance for loan losses to total nonperforming loans (e) (f)		241			260			287			254			271
Allowance for loan losses to ending loans excluding purchased credit-impaired loans (b) (c) (d)		4.53			3.62			2.87			2.57			2.29
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	4,682		$	3,444		$	2,654		$	2,429		$	1,891			36			148
Retail Financial Services		10,619			8,918			7,517			5,062			4,496			19			136
Card Services		8,849			7,692			5,946			3,705			3,404			15			160
Commercial Banking		2,945			2,826			2,698			1,843			1,790			4			65
Treasury & Securities Services		51			74			47			40			26			(31	)		96
Asset Management		215			191			170			147			130			13			65
Corporate/Private Equity		20			19			20			20			9			5			122
Total	$	27,381		$	23,164		$	19,052		$	13,246		$	11,746			18			133

(a)	Includes accounting conformity loan loss reserve provision related to the acquisition of Washington Mutual Bank’s banking operations.
(b)	Wholesale loans held-for-sale and loans at fair value were $11.7 billion, $14.0 billion, $17.0 billion, $20.0 billion, and $20.3 billion, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008 respectively, these amounts were excluded when calculating the allowance coverage ratios. Excluding wholesale purchased credit-impaired loans of $219 million, $224 million, and $272 million at March 31, 2009, December 31, 2008, and September 30, 2008, respectively, has no effect on the wholesale allowance coverage ratios.
(c)	Consumer loans held-for-sale were $3.7 billion, $2.0 billion, $1.6 billion, $2.2 billion, and $4.5 billion at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008 respectively. These amounts were excluded when calculating the allowance coverage ratios.
(d)	Excludes the impact of purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management’s estimate, as of the acquisition date, of credit losses over the remaining life of the portfolio. No allowance for loan losses has been recorded for these loans as of March 31, 2009, December 31, 2008, and September 30, 2008, respectively.
(e)	Nonperforming loans held-for-sale and loans at fair value were $57 million, $32 million, $32 million, $51 million, and $70 million at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(f)	Excludes consumer purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing under SOP 03-3.

Page 32

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	1,274		$	869		$	238		$	538		$	571			47	%		123	%
Commercial Banking		263			180			105			77			143			46			84
Treasury & Securities Services		(20	)		27			7			7			11		NM			NM
Asset Management		34			32			21			17			17			6			100
Corporate/Private Equity (a) (b)		—			76			564			36			—		NM				—
Total wholesale		1,551			1,184			935			675			742			31			109
Retail Financial Services		3,877			3,578			2,056			1,584			2,688			8			44
Card Services — reported		3,189			2,747			1,356			1,364			989			16			222
Corporate/Private Equity (a)		—			(75	)		1,413			1			—		NM				—
Total consumer		7,066			6,250			4,825			2,949			3,677			13			92
Total provision for loan losses	$	8,617		$	7,434		$	5,760		$	3,624		$	4,419			16			95
LENDING-RELATED COMMITMENTS
Investment Bank	$	(64	)	$	(104	)	$	(4	)	$	(140	)	$	47			38		NM
Commercial Banking		30			10			21			(30	)		(42	)		200		NM
Treasury & Securities Services		14			18			11			—			1			(22	)	NM
Asset Management		(1	)		—			(1	)		—			(1	)	NM				—
Corporate/Private Equity (a)		—			5			—			—			—		NM				—
Total wholesale		(21	)		(71	)		27			(170	)		5			70		NM
Retail Financial Services		—			(2	)		—			1			—		NM				—
Card Services — reported		—			—			—			—			—			—			—
Corporate/Private Equity (a)		—			(48	)		—			—			—		NM				—
Total consumer		—			(50	)		—			1			—		NM				—
Total provision for lending-related commitments	$	(21	)	$	(121	)	$	27		$	(169	)	$	5			83		NM
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	1,210		$	765		$	234		$	398		$	618			58			96
Commercial Banking		293			190			126			47			101			54			190
Treasury & Securities Services		(6	)		45			18			7			12		NM			NM
Asset Management		33			32			20			17			16			3			106
Corporate/Private Equity (a) (b)		—			81			564			36			—		NM				—
Total wholesale		1,530			1,113			962			505			747			37			105
Retail Financial Services		3,877			3,576			2,056			1,585			2,688			8			44
Card Services — reported		3,189			2,747			1,356			1,364			989			16			222
Corporate/Private Equity (a)		—			(123	)		1,413			1			—		NM				—
Total consumer		7,066			6,200			4,825			2,950			3,677			14			92
Total provision for credit losses		8,596			7,313			5,787			3,455			4,424			18			94
Credit card — securitized		1,464			1,228			873			830			681			19			115
Managed provision for credit losses	$	10,060		$	8,541		$	6,660		$	4,285		$	5,105			18			97

(a)	Includes accounting conformity provisions related to the Washington Mutual transaction in the third quarter of 2008.
(b)	Includes provision expense related to loans acquired in the Bear Stearns transaction in the second quarter of 2008.

Page 33

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

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
AVERAGE IB TRADING VAR AND CREDIT
PORTFOLIO VAR - 99% CONFIDENCE LEVEL
IB VaR by risk type:
Fixed income	$	218		$	276		$	183		$	155		$	120			(21	)%		82	%
Foreign exchange		40			55			20			26			35			(27	)		14
Equities		162			87			80			30			31			86			423
Commodities and other		28			30			41			31			28			(7	)		—
Diversification benefit to IB trading VaR (a)		(159	)		(146	)		(104	)		(92	)		(92	)		(9	)		(73	)
99% IB Trading VaR (b)		289			302			220			150			122			(4	)		137
Credit portfolio VaR (c)		182			165			47			35			30			10		NM
Diversification benefit to IB trading and credit portfolio VaR (a)		(135	)		(140	)		(49	)		(36	)		(30	)		4			(350	)
99% Total IB trading and credit portfolio VaR	$	336		$	327		$	218		$	149		$	122			3			175
AVERAGE IB TRADING VAR , CREDIT PORTFOLIO
VAR AND OTHER VAR - 95% CONFIDENCE LEVEL (d)
IB VaR by risk type:
Fixed income	$	158		$	194		$	130									(19	)
Foreign exchange		23			32			13									(28	)
Equities		97			47			46									106
Commodities and other		20			21			24									(5	)
Diversification benefit to IB trading VaR (a)		(108	)		(103	)		(69	)								(5	)
95% IB Trading VaR (b)		190			191			144									(1	)
Credit portfolio VaR (c)		86			66			25									30
Diversification benefit to IB trading and credit portfolio VaR (a)		(63	)		(50	)		(22	)								(26	)
95% Total IB trading and credit portfolio VaR		213			207			147									3
Consumer Lending VaR (e)		108			56			19									93
Corporate Risk Management VaR (f)		121			76			22									59
Diversification benefit to total other VaR (a)		(61	)		(31	)		(10	)								(97	)
Total other VaR		168			101			31									66
Diversification benefit to total IB and other VaR (a)		(93	)		(56	)		(24	)								(66	)
Total IB and other VaR	$	288		$	252		$	154									14

(a)	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.
(b)	IB Trading VaR includes predominantly all trading activities in IB; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. The 95% IB Trading VaR includes syndicated lending facilities that the Firm intends to distribute, and the credit spread sensitivities of certain mortgage products. The 99% IB Trading VaR includes the credit spread sensitivities of certain mortgage products but does not include syndicated lending facilities that the Firm intends to distribute. Both the 95% and 99% IB Trading VaR do not include the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm.
(c)	Includes VaR on derivative credit valuation adjustments (“CVA”), hedges of the CVA and mark-to-market hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio.
(d)	In the third quarter of 2008, the Firm revised the VaR measurement to create a more comprehensive view of its market risks by adding syndicated lending facilities that the Firm intends to distribute, and the credit spread sensitivities of certain mortgage products. In addition, certain actively managed positions utilized as part of the Firm’s risk management function within Corporate and in RFS’ mortgage banking businesses have been added to IB VaR to provide a Total IB and other VaR measure. Finally, the Firm moved from using a 99% confidence level to a 95% confidence level since the 95% level provides a more stable measure of the VaR for day-to-day risk management. This section presents the results of the Firm’s VaR measure under the revised measurement using a 95% confidence level. The Firm intends to only present the VaR at this confidence level once information for five quarters and two comparative year-to-date periods is available.
(e)	Consumer Lending VaR includes the Firm’s mortgage pipeline and warehouse, MSR and all related hedges.
(f)	Corporate Risk Management VaR includes certain actively managed positions utilized as part of the Firm’s risk management function within Corporate. It does not include certain nontrading activity such as Private Equity, principal investing (e.g., mezzanine financing, tax-oriented investments, etc.) and Corporate Treasury balance sheet and capital management positions as well as longer-term corporate investments.

Page 34

JPMORGAN CHASE & CO.
CAPITAL, INTANGIBLE ASSETS AND DEPOSITS
(in millions, except ratio data)

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
CAPITAL RATIOS (a)
Tier 1 capital	$	137,224	(d)	$	136,104		$	111,630		$	98,775		$	89,646			1	%		53	%
Total capital		183,262	(d)		184,720			159,175			145,012			134,948			(1	)		36
Risk-weighted assets		1,213,583	(d)		1,244,659			1,261,034			1,079,199			1,075,697			(2	)		13
Adjusted average assets		1,923,265	(d)		1,966,895			1,555,297			1,536,439			1,507,724			(2	)		28
Tier 1 capital ratio		11.3%	(d)		10.9	%		8.9	%		9.2	%		8.3	%
Total capital ratio		15.1	(d)		14.8			12.6			13.4			12.5
Tier 1 leverage ratio		7.1	(d)		6.9			7.2			6.4			5.9
TANGIBLE COMMON EQUITY (PERIOD-END) (b)
Common stockholders’ equity	$	138,201		$	134,945		$	137,691		$	127,176		$	125,627			2			10
Less : Goodwill		48,201			48,027			46,121			45,993			45,695			—			5
Less : Other intangibles assets		5,349			5,581			5,480			5,659			5,955			(4	)		(10	)
Add : Deferred tax liabilities (c)		2,581			2,717			2,377			2,379			2,308			(5	)		12
Total tangible common equity	$	87,232		$	84,054		$	88,467		$	77,903		$	76,285			4			14
INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	48,201		$	48,027		$	46,121		$	45,993		$	45,695			—			5
Mortgage servicing rights		10,634			9,403			17,048			11,617			8,419			13			26
Purchased credit card relationships		1,528			1,649			1,827			1,984			2,140			(7	)		(29	)
All other intangibles		3,821			3,932			3,653			3,675			3,815			(3	)		—
Total intangibles	$	64,184		$	63,011		$	68,649		$	63,269		$	60,069			2			7
DEPOSITS (PERIOD-END)
U.S. offices:
Noninterest-bearing	$	197,027		$	210,899		$	193,253		$	125,606		$	132,072			(7	)		49
Interest-bearing		463,913			511,077			506,974			362,150			394,613			(9	)		18
Non-U.S. offices:
Noninterest-bearing		7,073			7,697			9,747			7,827			7,232			(8	)		(2	)
Interest-bearing		238,956			279,604			259,809			227,322			227,709			(15	)		5
Total deposits	$	906,969		$	1,009,277		$	969,783		$	722,905		$	761,626			(10	)		19

(a)	The Federal Reserve has granted the Firm, for a period of 18 months following the merger with Bear Stearns, relief up to a certain specified amount and subject to certain conditions from the Federal Reserve’s risk-based and leverage capital guidelines with respect to the Bear Stearns risk-weighted assets and other exposures acquired. The amount of such relief is subject to reduction by one-sixth each quarter subsequent to the merger and expires on October 1, 2009.
(b)	Tangible common equity (“TCE”) represents common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less identifiable intangible assets (other than MSR’s) and goodwill, net of related deferred tax liabilities. The Firm views TCE, a non-GAAP financial measure, as a meaningful measure of capital quality.
(c)	Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted with goodwill and other intangibles when calculating tangible common equity.
(d)	Estimated.

Page 35

JPMORGAN CHASE & CO.
PER SHARE-RELATED INFORMATION
(in millions, except per share and ratio data)

	QUARTERLY TRENDS
																1Q09 Change
	1Q09			4Q08			3Q08			2Q08			1Q08			4Q08			1Q08
EARNINGS PER SHARE DATA (a)
Basic earnings per share:
Income (loss) before extraordinary gain	$	2,141		$	(623	)	$	(54	)	$	2,003		$	2,373		NM		%		(10	)%
Extraordinary gain		—			1,325			581			—			—		NM				—
Net income		2,141			702			527			2,003			2,373			205			(10	)
Less: Preferred stock dividends		529			423			161			90			—			25		NM
Net income applicable to common stock		1,612			279			366			1,913			2,373			478			(32	)
Less: Dividends and undistributed earnings allocated to participating securities		93			47			48			70	��		84			98			11
Earnings allocated to common stockholders	$	1,519		$	232		$	318		$	1,843		$	2,289		NM				(34	)
Total weighted-average basic shares and participating securities outstanding		3,996.5			3,882.1			3,590.8			3,561.4			3,531.3			3			13
Less: weighted-average participating securities outstanding		240.8			144.6			146.2			135.2			135.3			67			78
Total weighted-average basic shares outstanding		3,755.7			3,737.5			3,444.6			3,426.2			3,396.0			—			11
Income (loss) before extraordinary gain per share	$	0.40		$	(0.29	)	$	(0.08	)	$	0.54		$	0.67		NM				(40	)
Extraordinary gain per share		—			0.35			0.17			—			—		NM				—
Net income per share	$	0.40		$	0.06		$	0.09		$	0.54		$	0.67		NM				(40	)
Diluted earnings per share:
Earnings allocated to common stockholders (b)	$	1,519		$	232		$	318		$	1,843		$	2,290		NM				(34	)
Total weighted-average basic shares and participating securities outstanding		3,996.5			3,882.1			3,590.8			3,561.4			3,531.3			3			13
Add: Employee stock options and SARs (c)		3.0			—	(f)		—	(f)		26.9			27.3		NM				(89	)
Total weighted-average diluted shares and participating securities outstanding		3,999.5			3,882.1			3,590.8			3,588.3			3,558.6			3			12
Less: Weighted-average participating securities outstanding (d)		240.8			144.6			146.2			135.2			135.3			67			78
Weighted-average diluted shares outstanding		3,758.7			3,737.5			3,444.6			3,453.1			3,423.3			1			10
Income (loss) before extraordinary gain per share	$	0.40		$	(0.29	)	$	(0.08	)	$	0.53		$	0.67		NM				(40	)
Extraordinary gain per share		—			0.35			0.17			—			—		NM				—
Net income per share	$	0.40		$	0.06		$	0.09		$	0.53		$	0.67		NM				(40	)
COMMON SHARES OUTSTANDING
Common shares outstanding — at period end (e)		3,757.7			3,732.8			3,726.9			3,435.7			3,400.8			1			10
Cash dividends declared per share	$	0.05		$	0.38		$	0.38		$	0.38		$	0.38			(87	)		(87	)
Book value per share		36.78			36.15			36.95			37.02			36.94			2			—
Dividend payout		15	%		532	%		399	%		71	%		56	%
SHARE PRICE
High	$	31.64		$	50.63		$	49.00		$	49.95		$	49.29			(38	)		(36	)
Low		14.96			19.69			29.24			33.96			36.01			(24	)		(58	)
Close		26.58			31.53			46.70			34.31			42.95			(16	)		(38	)
Market capitalization		99,881			117,695			174,048			117,881			146,066			(15	)		(32	)
STOCK REPURCHASE PROGRAM
Common shares repurchased		—			—			—			—			—			—			—

(a)	Effective January 1, 2009, the Firm adopted FSP EITF 03-6-1, which clarifies that unvested stock-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”), are considered participating securities and therefore are included in the two-class method calculation of earning per share (“EPS”). Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Earnings per common share are calculated by dividing earnings allocated to common stockholders by the weighted-average number of common shares outstanding during the period. JPMorgan Chase has a single class of common stock. The Firm grants restricted stock and RSUs to certain employees under its stock-based compensation programs. Recipients receive cash dividends during the vesting periods of these awards. Since these dividends are nonforfeitable, the unvested awards are considered participating securities and will have earnings allocated to them. EPS data for all prior periods has been revised to reflect the retrospective adoption of the FSP.
(b)	Earnings allocated to common stockholders for diluted and basic EPS may differ under the two-class method as a result of adding common stock equivalents for options and SARs and warrants to dilutive shares outstanding, which alters the ratio used to allocate earnings to common stockholders and participating securities for the purposes of calculating diluted EPS.
(c)	Options issued under employee benefit plans and, subsequent to the third quarter of 2008, the warrant issued under the U.S. Treasury’s Capital Purchase Program to purchase an aggregate 363 million, 299 million, 194 million, 169 million, and 173 million shares of common stock were outstanding for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, but were not included in the computation of diluted EPS because the options were antidilutive.
(d)	Participating securities were included in the calculation of diluted EPS using the two-class method as this computation was more dilutive than the calculation using the treasury-stock method.
(e)	On September 30, 2008, the Firm issued $11.5 billion, or 284 million shares, of its common stock at $40.50 per share.
(f)	Common equivalent shares have been excluded from the computation of diluted loss per share for the fourth and third quarters of 2008, as the effect would have been antidilutive.

Page 36

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 & Co. 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/Private Equity:Includes Private Equity, Treasury and Corporate Other, which includes other centrally managed expense 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 expense related to the securitized receivables are reclassified into credit card income in the Consolidated Statements of Income.

FASB:Financial Accounting Standards Board.

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

FSP EITF 03-6-1:FASB Staff Position No. EITF 03-6-1 “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities.”

Investment-grade:An indication of credit quality based upon JPMorgan Chase & Co.’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 & Co. and, therefore, creates a repayment risk for the Firm. When the mark-to-market value is negative, JPMorgan Chase & Co. owes the counterparty. In this situation, the Firm does not have repayment risk.

Merger costs:Reflects costs associated with the Washington Mutual and Bear Stearns mergers in 2008, costs associated with The Bank of New York, Inc. transaction (“The Bank of New York”) in 2007, and costs associated with the 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 140:“Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities — a replacement of FASB Statement No. 125.”

SFAS 141:“Business Combinations.”

SOP 03-3: “Accounting for Certain Loans of Debt Securities Acquired in a Transfer.”

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 revenue 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: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 REVENUE COMPRISES THE FOLLOWING:

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

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

3. Equities marketsinclude 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, as well as gains or losses on securities received as part of a loan restructuring, for the IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities, and changes in the credit valuation adjustment, which is the component of the fair value of a derivative that reflects the credit quality of the counterparty.

Retail Financial Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN RETAIL 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 FEES AND RELATED INCOME COMPRISE THE FOLLOWING:

1. Production revenueincludes net gains or losses on originations and sales of prime and subprime mortgage loans and other production-related fees.

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 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 and do not underwrite the 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 a business that processes bank card transactions for merchants.

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

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

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

Commercial Banking

COMMERCIAL BANKING REVENUE COMPRISES THE FOLLOWING:

1. Lendingincludes a variety of financing alternatives, which are primarily 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-based 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, foreign exchange hedges and securities sales.

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 securities sold under repurchase agreements.

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

Treasury & Securities Services

Treasury & Securities Servicesfirmwide metricsinclude certain TSS product revenue 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 revenue, management reviews firmwide metrics such as liability balances, revenue 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 securities loaned or sold under repurchase agreements.

Asset Management

Assets under management:Represent assets actively managed by Asset Management on behalf of Institutional, Retail, Private Banking, Private Wealth Management and Bear Stearns Brokerage clients. Excludes assets managed by American Century Companies, Inc., in which the Firm has a 42% ownership interest as of March 31, 2009.

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. The Private 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 Wealth Managementoffers 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.

5. Bear Stearns Brokerageprovides investment advice and wealth management services to high-net-worth individuals, money managers, and small corporations.

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