Exhibit 99.1
FINANCIAL SUPPLEMENT
Retail Financial Services
2009 and 2008
JPMORGAN CHASE & CO.
TABLE OF CONTENTS
TABLE OF CONTENTS
Page(s) | |||
Summary of Revisions | 3 | ||
Business Detail | |||
Retal Financial Services | 4 - 5 | ||
Retail Banking | 6 | ||
Mortgage Banking & Other Consumer Lending | 7 - 8 | ||
Real Estate Portfolios | 9 - 10 |
Page 2
JPMORGAN CHASE & CO.
Revised Financial Disclosure
Revised Financial Disclosure
JPMorgan Chase & Co. (the “Firm”) has revised certain of its financial disclosures of the Retail Financial Services (“RFS”) business segment. Previously, RFS was reported as: Retail Banking and Consumer Lending. Commencing January 1, 2010, RFS is presenting Consumer Lending for reporting purposes as: (1) Mortgage Banking & Other Consumer Lending, and (2) Real Estate Portfolios. Mortgage Banking & Other Consumer Lending comprises mortgage production and servicing, auto finance, and student and other lending activities. Real Estate Portfolios comprises residential mortgages and home equity loans, including the purchased credit-impaired portfolio acquired in the Washington Mutual transaction. Retail Banking, which includes branch banking and business banking activities, is not affected by these revisions. This presentation will be reflected in the Firm’s financial reports and disclosures commencing with its report of financial results for the first quarter of 2010.
The chart below provides a mapping of RFS’s prior reporting to the current presentation.
Page 3
JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)
QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||
4Q09 | 3Q09 | 2Q09 | 1Q09 | 4Q08 | 3Q08 | 2Q08 | 1Q08 | 2009 | 2008 | |||||||||||||||||||||||||||||||||
INCOME STATEMENT | ||||||||||||||||||||||||||||||||||||||||||
REVENUE | ||||||||||||||||||||||||||||||||||||||||||
Lending- and deposit-related fees | $ | 972 | $ | 1,046 | $ | 1,003 | $ | 948 | $ | 1,050 | $ | 538 | $ | 497 | $ | 461 | $ | 3,969 | $ | 2,546 | ||||||||||||||||||||||
Asset management, administration and commissions | 406 | 408 | 425 | 435 | 412 | 346 | 375 | 377 | 1,674 | 1,510 | ||||||||||||||||||||||||||||||||
Mortgage fees and related income | 481 | 873 | 807 | 1,633 | 1,962 | 438 | 696 | 525 | 3,794 | 3,621 | ||||||||||||||||||||||||||||||||
Credit card income | 441 | 416 | 411 | 367 | 367 | 204 | 194 | 174 | 1,635 | 939 | ||||||||||||||||||||||||||||||||
Other income | 299 | 321 | 294 | 214 | 183 | 206 | 198 | 152 | 1,128 | 739 | ||||||||||||||||||||||||||||||||
Noninterest revenue | 2,599 | 3,064 | 2,940 | 3,597 | 3,974 | 1,732 | 1,960 | 1,689 | 12,200 | 9,355 | ||||||||||||||||||||||||||||||||
Net interest income | 5,070 | 5,154 | 5,030 | 5,238 | 4,710 | 3,231 | 3,150 | 3,074 | 20,492 | 14,165 | ||||||||||||||||||||||||||||||||
TOTAL NET REVENUE | 7,669 | 8,218 | 7,970 | 8,835 | 8,684 | 4,963 | 5,110 | 4,763 | 32,692 | 23,520 | ||||||||||||||||||||||||||||||||
Provision for credit losses | 4,229 | 3,988 | 3,846 | 3,877 | 3,576 | 2,056 | 1,585 | 2,688 | 15,940 | 9,905 | ||||||||||||||||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||||||||||||||||||
Compensation expense | 1,722 | 1,728 | 1,631 | 1,631 | 1,604 | 1,120 | 1,184 | 1,160 | 6,712 | 5,068 | ||||||||||||||||||||||||||||||||
Noncompensation expense | 2,499 | 2,385 | 2,365 | 2,457 | 2,345 | 1,559 | 1,396 | 1,312 | 9,706 | 6,612 | ||||||||||||||||||||||||||||||||
Amortization of intangibles | 81 | 83 | 83 | 83 | 97 | 100 | 100 | 100 | 330 | 397 | ||||||||||||||||||||||||||||||||
TOTAL NONINTEREST EXPENSE | 4,302 | 4,196 | 4,079 | 4,171 | 4,046 | 2,779 | 2,680 | 2,572 | 16,748 | 12,077 | ||||||||||||||||||||||||||||||||
Income/(loss) before income tax expense (benefit) | (862 | ) | 34 | 45 | 787 | 1,062 | 128 | 845 | (497 | ) | 4 | 1,538 | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | (463 | ) | 27 | 30 | 313 | 438 | 64 | 342 | (186 | ) | (93 | ) | 658 | |||||||||||||||||||||||||||||
NET INCOME/(LOSS) | $ | (399 | ) | $ | 7 | $ | 15 | $ | 474 | $ | 624 | $ | 64 | $ | 503 | $ | (311 | ) | $ | 97 | $ | 880 | ||||||||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||||||||||||||||||||||||
ROE | (6 | )% | — | % | — | % | 8 | % | 10 | % | 1 | % | 12 | % | (7 | )% | — | % | 5 | % | ||||||||||||||||||||||
Overhead ratio | 56 | 51 | 51 | 47 | 47 | 56 | 52 | 54 | 51 | 51 | ||||||||||||||||||||||||||||||||
Overhead ratio excluding core deposit intangibles (a) | 55 | 50 | 50 | 46 | 45 | 54 | 51 | 52 | 50 | 50 | ||||||||||||||||||||||||||||||||
SELECTED BALANCE SHEET DATA (Period-end) | ||||||||||||||||||||||||||||||||||||||||||
Assets | $ | 387,269 | $ | 397,673 | $ | 399,916 | $ | 412,505 | $ | 419,831 | $ | 426,435 | $ | 265,845 | $ | 262,118 | $ | 387,269 | $ | 419,831 | ||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||
Loans retained | 340,332 | 346,765 | 353,934 | 364,220 | 368,786 | 371,153 | 223,047 | 218,489 | 340,332 | 368,786 | ||||||||||||||||||||||||||||||||
Loans held-for-sale & loans at fair value (b) | 14,612 | 14,303 | 13,192 | 12,529 | 9,996 | 10,223 | 16,282 | 18,000 | 14,612 | 9,996 | ||||||||||||||||||||||||||||||||
Total loans | 354,944 | 361,068 | 367,126 | 376,749 | 378,782 | 381,376 | 239,329 | 236,489 | 354,944 | 378,782 | ||||||||||||||||||||||||||||||||
Deposits | 357,463 | 361,046 | 371,241 | 380,140 | 360,451 | 353,660 | 223,121 | 230,854 | 357,463 | 360,451 | ||||||||||||||||||||||||||||||||
Equity | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 17,000 | 17,000 | 25,000 | 25,000 | ||||||||||||||||||||||||||||||||
SELECTED BALANCE SHEET DATA (Average) | ||||||||||||||||||||||||||||||||||||||||||
Assets | $ | 395,045 | $ | 401,620 | $ | 410,228 | $ | 423,472 | $ | 423,699 | $ | 265,367 | $ | 267,808 | $ | 260,013 | $ | 407,497 | $ | 304,442 | ||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||
Loans retained | 343,411 | 349,762 | 359,372 | 366,925 | 369,172 | 222,640 | 221,132 | 214,586 | 354,789 | 257,083 | ||||||||||||||||||||||||||||||||
Loans held-for-sale & loans at fair value (b) | 17,670 | 19,025 | 19,043 | 16,526 | 13,848 | 16,037 | 20,492 | 17,841 | 18,072 | 17,056 | ||||||||||||||||||||||||||||||||
Total loans | 361,081 | 368,787 | 378,415 | 383,451 | 383,020 | 238,677 | 241,624 | 232,427 | 372,861 | 274,139 | ||||||||||||||||||||||||||||||||
Deposits | 356,464 | 366,944 | 377,259 | 370,278 | 358,523 | 222,180 | 226,487 | 225,555 | 367,696 | 258,362 | ||||||||||||||||||||||||||||||||
Equity | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 17,000 | 17,000 | 17,000 | 25,000 | 19,011 | ||||||||||||||||||||||||||||||||
Headcount | 108,971 | 106,951 | 103,733 | 100,677 | 102,007 | 101,826 | 69,550 | 70,095 | 108,971 | 102,007 |
(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 would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Retail Banking’s CDI amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $80 million, $83 million, $82 million, $83 million, $97 million, $99 million, $99 million and $99 million for the quarters ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively, and $328 million and $394 million for full year 2009 and 2008, respectively. | |
(b) | Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $12.5 billion, $12.8 billion, $11.3 billion, $8.9 billion, $8.0 billion, $8.6 billion, $14.1 billion and $13.5 billion at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively. Average balances of these loans totaled $16.0 billion, $17.7 billion, $16.2 billion, $13.4 billion, $12.0 billion, $14.5 billion, $16.9 billion and $13.4 billion for the quarters ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively, and $15.8 billion and $14.2 billion for full year 2009 and 2008, respectively. |
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JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||
4Q09 | 3Q09 | 2Q09 | 1Q09 | 4Q08 | 3Q08 | 2Q08 | 1Q08 | 2009 | 2008 | |||||||||||||||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | ||||||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | 2,738 | $ | 2,550 | $ | 2,649 | $ | 2,176 | $ | 1,701 | $ | 1,326 | $ | 1,025 | $ | 825 | $ | 10,113 | $ | 4,877 | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||||||||||||||||||||||
Nonperforming loans retained | 10,611 | 10,091 | 8,792 | 7,714 | 6,548 | 5,517 | 4,394 | 3,613 | 10,611 | 6,548 | ||||||||||||||||||||||||||||||
Nonperforming loans held-for-sale and loans at fair value | 234 | 242 | 203 | 264 | 236 | 207 | 180 | 129 | 234 | 236 | ||||||||||||||||||||||||||||||
Total nonperforming loans (a) (b) (c) | 10,845 | 10,333 | 8,995 | 7,978 | 6,784 | 5,724 | 4,574 | 3,742 | 10,845 | 6,784 | ||||||||||||||||||||||||||||||
Nonperforming assets (a) (b) (c) | 12,098 | 11,883 | 10,554 | 9,846 | 9,077 | 8,085 | 5,333 | 4,359 | 12,098 | 9,077 | ||||||||||||||||||||||||||||||
Allowance for loan losses | 14,776 | 13,286 | 11,832 | 10,619 | 8,918 | 7,517 | 5,062 | 4,496 | 14,776 | 8,918 | ||||||||||||||||||||||||||||||
Net charge-off rate (e) | 3.16 | % | 2.89 | % | 2.96 | % | 2.41 | % | 1.83 | % | 2.37 | % | 1.86 | % | 1.55 | % | 2.85 | % | 1.90 | % | ||||||||||||||||||||
Net charge-off rate excluding purchased credit-impaired loans (d) (e) | 4.16 | 3.81 | 3.89 | 3.16 | 2.41 | 2.37 | 1.86 | 1.55 | 3.75 | 2.08 | ||||||||||||||||||||||||||||||
Allowance for loan losses to ending loans retained (e) | 4.34 | 3.83 | 3.34 | 2.92 | 2.42 | 2.03 | 2.27 | 2.06 | 4.34 | 2.42 | ||||||||||||||||||||||||||||||
Allowance for loan losses to ending loans retained excluding purchased credit-impaired loans (d) (e) | 5.09 | 4.63 | 4.41 | 3.84 | 3.19 | 2.56 | 2.27 | 2.06 | 5.09 | 3.19 | ||||||||||||||||||||||||||||||
Allowance for loan losses to nonperforming loans retained (a) (d) (e) | 124 | 121 | 135 | 138 | 136 | 136 | 115 | 124 | 124 | 136 | ||||||||||||||||||||||||||||||
Nonperforming loans to total loans | 3.06 | 2.86 | 2.45 | 2.12 | 1.79 | 1.50 | 1.91 | 1.58 | 3.06 | 1.79 | ||||||||||||||||||||||||||||||
Nonperforming loans to total loans excluding purchased credit-impaired loans | 3.96 | 3.72 | 3.19 | 2.76 | 2.34 | 1.88 | 1.91 | 1.58 | 3.96 | 2.34 |
(a) | Excludes purchased credit-impaired loans 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. | |
(b) | Certain of these loans are classified as trading assets on the Consolidated Balance Sheets. | |
(c) | Nonperforming loans and assets exclude: (1) mortgage loans insured by U.S. government agencies of $9.0 billion, $7.0 billion, $4.2 billion, $4.2 billion, $3.0 billion, $1.4 billion, $1.4 billion and $1.3 billion at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively; (2) real estate owned insured by U.S. government agencies of $579 million, $579 million, $508 million, $433 million, $364 million, $370 million, $490 million and $478 million at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively; and (3) 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 $542 million, $511 million, $473 million, $433 million, $437 million, $405 million, $394 million and $418 million at December 31, 2009, September 30, 2009, June 30, 2009, 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) | Excludes the impact of purchased credit-impaired loans 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 that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $1.6 billion and $1.1 billion was recorded for these loans at December 31, 2009 and September 30, 2009, respectively, which has also been excluded from applicable ratios. No allowance for loan losses was recorded as of June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008. To date, no charge-offs have been recorded for these loans. | |
(e) | Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratio and net charge-off rate. |
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JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||
4Q09 | 3Q09 | 2Q09 | 1Q09 | 4Q08 | 3Q08 | 2Q08 | 1Q08 | 2009 | 2008 | |||||||||||||||||||||||||||||||
RETAIL BANKING | ||||||||||||||||||||||||||||||||||||||||
Noninterest revenue | $ | 1,804 | $ | 1,844 | $ | 1,803 | $ | 1,718 | $ | 1,834 | $ | 1,089 | $ | 1,062 | $ | 966 | $ | 7,169 | $ | 4,951 | ||||||||||||||||||||
Net interest income | 2,716 | 2,732 | 2,719 | 2,614 | 2,687 | 1,756 | 1,671 | 1,545 | 10,781 | 7,659 | ||||||||||||||||||||||||||||||
Total net revenue | 4,520 | 4,576 | 4,522 | 4,332 | 4,521 | 2,845 | 2,733 | 2,511 | 17,950 | 12,610 | ||||||||||||||||||||||||||||||
Provision for credit losses | 248 | 208 | 361 | 325 | 268 | 70 | 62 | 49 | 1,142 | 449 | ||||||||||||||||||||||||||||||
Noninterest expense | 2,574 | 2,646 | 2,557 | 2,580 | 2,533 | 1,580 | 1,557 | 1,562 | 10,357 | 7,232 | ||||||||||||||||||||||||||||||
Income before income tax expense | 1,698 | 1,722 | 1,604 | 1,427 | 1,720 | 1,195 | 1,114 | 900 | 6,451 | 4,929 | ||||||||||||||||||||||||||||||
Net income | $ | 1,027 | $ | 1,043 | $ | 970 | $ | 863 | $ | 1,040 | $ | 723 | $ | 674 | $ | 545 | $ | 3,903 | $ | 2,982 | ||||||||||||||||||||
Overhead ratio | 57 | % | 58 | % | 57 | % | 60 | % | 56 | % | 56 | % | 57 | % | 62 | % | 58 | % | 57 | % | ||||||||||||||||||||
Overhead ratio excluding core deposit intangibles (a) | 55 | 56 | 55 | 58 | 54 | 52 | 53 | 58 | 56 | 54 | ||||||||||||||||||||||||||||||
BUSINESS METRICS (in billions) | ||||||||||||||||||||||||||||||||||||||||
Business banking origination volume | $ | 0.7 | $ | 0.5 | $ | 0.6 | $ | 0.5 | $ | 0.8 | $ | 1.2 | $ | 1.7 | $ | 1.8 | $ | 2.3 | $ | 5.5 | ||||||||||||||||||||
End-of-period loans owned | 17.0 | 17.4 | 17.8 | 18.2 | 18.4 | 18.6 | 16.5 | 15.9 | 17.0 | 18.4 | ||||||||||||||||||||||||||||||
End-of-period deposits: | ||||||||||||||||||||||||||||||||||||||||
Checking | $ | 121.9 | $ | 115.5 | $ | 114.1 | $ | 113.9 | $ | 109.2 | $ | 106.7 | $ | 69.1 | $ | 69.0 | $ | 121.9 | $ | 109.2 | ||||||||||||||||||||
Savings | 153.4 | 151.6 | 150.4 | 152.4 | 144.0 | 146.4 | 105.8 | 105.4 | 153.4 | 144.0 | ||||||||||||||||||||||||||||||
Time and other | 58.0 | 66.6 | 78.9 | 86.5 | 89.1 | 85.8 | 37.0 | 44.6 | 58.0 | 89.1 | ||||||||||||||||||||||||||||||
Total end-of-period deposits | 333.3 | 333.7 | 343.4 | 352.8 | 342.3 | 338.9 | 211.9 | 219.0 | 333.3 | 342.3 | ||||||||||||||||||||||||||||||
Average loans owned | $ | 17.2 | $ | 17.7 | $ | 18.0 | $ | 18.4 | $ | 18.2 | $ | 16.6 | $ | 16.2 | $ | 15.8 | $ | 17.8 | $ | 16.7 | ||||||||||||||||||||
Average deposits: | ||||||||||||||||||||||||||||||||||||||||
Checking | $ | 116.4 | $ | 114.0 | $ | 114.2 | $ | 109.4 | $ | 105.8 | $ | 68.0 | $ | 68.4 | $ | 66.1 | $ | 113.5 | $ | 77.1 | ||||||||||||||||||||
Savings | 153.1 | 151.2 | 151.2 | 148.2 | 145.3 | 105.4 | 105.9 | 100.3 | 150.9 | 114.3 | ||||||||||||||||||||||||||||||
Time and other | 60.3 | 74.4 | 82.7 | 88.2 | 88.7 | 36.7 | 39.6 | 47.7 | 76.4 | 53.2 | ||||||||||||||||||||||||||||||
Total average deposits | 329.8 | 339.6 | 348.1 | 345.8 | 339.8 | 210.1 | 213.9 | 214.1 | 340.8 | 244.6 | ||||||||||||||||||||||||||||||
Deposit margin | 3.06 | % | 2.99 | % | 2.92 | % | 2.85 | % | 2.94 | % | 3.06 | % | 2.88 | % | 2.64 | % | 2.96 | % | 2.89 | % | ||||||||||||||||||||
Average assets | $ | 28.2 | $ | 28.1 | $ | 29.1 | $ | 30.2 | $ | 28.7 | $ | 25.6 | $ | 25.7 | $ | 25.4 | $ | 28.9 | $ | 26.3 | ||||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | ||||||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | 248 | $ | 208 | $ | 211 | $ | 175 | $ | 168 | $ | 68 | $ | 61 | $ | 49 | $ | 842 | $ | 346 | ||||||||||||||||||||
Net charge-off rate | 5.72 | % | 4.66 | % | 4.70 | % | 3.86 | % | 3.67 | % | 1.63 | % | 1.51 | % | 1.25 | % | 4.73 | % | 2.07 | % | ||||||||||||||||||||
Nonperforming assets | $ | 839 | $ | 816 | $ | 686 | $ | 579 | $ | 424 | $ | 380 | $ | 337 | $ | 328 | $ | 839 | $ | 424 | ||||||||||||||||||||
RETAIL BRANCH BUSINESS METRICS | ||||||||||||||||||||||||||||||||||||||||
Investment sales volume | $ | 5,851 | $ | 6,243 | $ | 5,292 | $ | 4,398 | $ | 3,956 | $ | 4,389 | $ | 5,211 | $ | 4,084 | $ | 21,784 | $ | 17,640 | ||||||||||||||||||||
Number of: | ||||||||||||||||||||||||||||||||||||||||
Branches | 5,154 | 5,126 | 5,203 | 5,186 | 5,474 | 5,423 | 3,157 | 3,146 | 5,154 | 5,474 | ||||||||||||||||||||||||||||||
ATMs | 15,406 | 15,038 | 14,144 | 14,159 | 14,568 | 14,389 | 9,310 | 9,237 | 15,406 | 14,568 | ||||||||||||||||||||||||||||||
Personal bankers | 17,991 | 16,941 | 15,959 | 15,544 | 15,825 | 15,491 | 9,995 | 9,826 | 17,991 | 15,825 | ||||||||||||||||||||||||||||||
Sales specialists | 5,912 | 5,530 | 5,485 | 5,454 | 5,661 | 5,899 | 4,116 | 4,133 | 5,912 | 5,661 | ||||||||||||||||||||||||||||||
Active online customers (in thousands) | 15,424 | 13,852 | 13,930 | 12,882 | 11,710 | 11,682 | 7,180 | 6,454 | 15,424 | 11,710 | ||||||||||||||||||||||||||||||
Checking accounts (in thousands) | 25,712 | 25,546 | 25,252 | 24,984 | 24,499 | 24,490 | 11,336 | 11,068 | 25,712 | 24,499 |
(a) | Retail Banking uses the overhead ratio (excluding the amortization of CDI), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Retail Banking’s CDI amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $80 million, $83 million, $82 million, $83 million, $97 million, $99 million, $99 million and $99 million for the quarters ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively, and $328 million and $394 million for full year 2009 and 2008, respectively. |
Page 6
JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||
4Q09 | 3Q09 | 2Q09 | 1Q09 | 4Q08 | 3Q08 | 2Q08 | 1Q08 | 2009 | 2008 | |||||||||||||||||||||||||||||||
MORTGAGE BANKING & OTHER CONSUMER LENDING | ||||||||||||||||||||||||||||||||||||||||
Noninterest revenue | $ | 801 | $ | 1,201 | $ | 1,134 | $ | 1,921 | $ | 2,221 | $ | 688 | $ | 927 | $ | 853 | $ | 5,057 | $ | 4,689 | ||||||||||||||||||||
Net interest income | 802 | 834 | 721 | 808 | 543 | 613 | 562 | 561 | 3,165 | 2,279 | ||||||||||||||||||||||||||||||
Total net revenue | 1,603 | 2,035 | 1,855 | 2,729 | 2,764 | 1,301 | 1,489 | 1,414 | 8,222 | 6,968 | ||||||||||||||||||||||||||||||
Provision for credit losses | 242 | 222 | 366 | 405 | 388 | 175 | 132 | 200 | 1,235 | 895 | ||||||||||||||||||||||||||||||
Noninterest expense | 1,163 | 1,139 | 1,105 | 1,137 | 1,177 | 1,023 | 922 | 834 | 4,544 | 3,956 | ||||||||||||||||||||||||||||||
Income before income tax expense | 198 | 674 | 384 | 1,187 | 1,199 | 103 | 435 | 380 | 2,443 | 2,117 | ||||||||||||||||||||||||||||||
Net income | $ | 266 | $ | 412 | $ | 235 | $ | 730 | $ | 727 | $ | 61 | $ | 266 | $ | 232 | $ | 1,643 | $ | 1,286 | ||||||||||||||||||||
Overhead ratio | 73 | % | 56 | % | 60 | % | 42 | % | 43 | % | 79 | % | 62 | % | 59 | % | 55 | % | 57 | % | ||||||||||||||||||||
BUSINESS METRICS (in billions) | ||||||||||||||||||||||||||||||||||||||||
End-of-period loans owned: | ||||||||||||||||||||||||||||||||||||||||
Auto loans | $ | 46.0 | $ | 44.3 | $ | 42.9 | $ | 43.1 | $ | 42.6 | $ | 43.3 | $ | 44.9 | $ | 44.7 | $ | 46.0 | $ | 42.6 | ||||||||||||||||||||
Mortgage (a) | 11.9 | 10.1 | 8.9 | 8.8 | 6.5 | 4.8 | 4.5 | 3.9 | 11.9 | 6.5 | ||||||||||||||||||||||||||||||
Student loans and other | 15.8 | 15.6 | 15.7 | 17.4 | 16.3 | 15.4 | 13.0 | 12.4 | 15.8 | 16.3 | ||||||||||||||||||||||||||||||
Total end-of-period loans owned | 73.7 | 70.0 | 67.5 | 69.3 | 65.4 | 63.5 | 62.4 | 61.0 | 73.7 | 65.4 | ||||||||||||||||||||||||||||||
Average loans owned: | ||||||||||||||||||||||||||||||||||||||||
Auto loans | $ | 45.3 | $ | 43.3 | $ | 43.1 | $ | 42.5 | $ | 42.9 | $ | 43.9 | $ | 44.9 | $ | 43.2 | $ | 43.6 | $ | 43.8 | ||||||||||||||||||||
Mortgage (a) | 10.6 | 8.9 | 8.4 | 7.4 | 5.3 | 4.4 | 4.0 | 3.6 | 8.8 | 4.3 | ||||||||||||||||||||||||||||||
Student loans and other | 15.6 | 15.3 | 16.8 | 17.6 | 16.2 | 14.1 | 12.8 | 12.3 | 16.3 | 13.8 | ||||||||||||||||||||||||||||||
Total average loans owned (b) | 71.5 | 67.5 | 68.3 | 67.5 | 64.4 | 62.4 | 61.7 | 59.1 | 68.7 | 61.9 | ||||||||||||||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | ||||||||||||||||||||||||||||||||||||||||
Net charge-offs: | ||||||||||||||||||||||||||||||||||||||||
Auto loans | $ | 148 | $ | 159 | $ | 146 | $ | 174 | $ | 207 | $ | 124 | $ | 119 | $ | 118 | $ | 627 | $ | 568 | ||||||||||||||||||||
Mortgage | — | 7 | 2 | 5 | 2 | 2 | 1 | — | 14 | 5 | ||||||||||||||||||||||||||||||
Student loans and other | 92 | 60 | 101 | 34 | 29 | 9 | 27 | (1 | ) | 287 | 64 | |||||||||||||||||||||||||||||
Total net charge-offs | 240 | 226 | 249 | 213 | 238 | 135 | 147 | 117 | 928 | 637 | ||||||||||||||||||||||||||||||
Net charge-off rate: | ||||||||||||||||||||||||||||||||||||||||
Auto loans | 1.30 | % | 1.46 | % | 1.36 | % | 1.66 | % | 1.92 | % | 1.12 | % | 1.07 | % | 1.10 | % | 1.44 | % | 1.30 | % | ||||||||||||||||||||
Mortgage | — | 0.32 | 0.10 | 0.29 | 0.16 | 0.20 | 0.11 | — | 0.17 | 0.13 | ||||||||||||||||||||||||||||||
Student loans and other | 2.59 | 1.66 | 2.79 | 0.92 | 0.79 | 0.28 | 1.12 | NM | 1.98 | 0.57 | ||||||||||||||||||||||||||||||
Total net charge-off rate (b) | 1.36 | 1.35 | 1.52 | 1.34 | 1.51 | 0.88 | 1.02 | 0.86 | 1.40 | 1.08 | ||||||||||||||||||||||||||||||
30+ day delinquency rate (c) (d) | 1.75 | 1.76 | 1.80 | 1.56 | 1.91 | 1.65 | 1.73 | 1.53 | 1.75 | 1.91 | ||||||||||||||||||||||||||||||
Nonperforming assets (e) | $ | 912 | $ | 872 | $ | 783 | $ | 830 | $ | 866 | $ | 821 | $ | 617 | $ | 477 | $ | 912 | $ | 866 |
(a) | Predominantly represents loans repurchased from Government National Mortgage Association (“GNMA”) pools, which are insured by U.S. government agencies. | |
(b) | Total average loans owned includes loans held-for-sale of $1.7 billion, $1.3 billion, $2.8 billion, $3.1 billion, $1.8 billion, $1.5 billion, $3.6 billion and $4.4 billion for the quarters ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively, and $2.2 and $2.8 billion for full year 2009 and 2008, respectively. These amounts are excluded when calculating the net charge-off rate. | |
(c) | Excludes mortgage loans that are insured by U.S. government agencies of $9.7 billion, $7.7 billion, $5.1 billion, $4.9 billion, $3.5 billion, $2.2 billion, $1.8 billion and $1.7 billion at December 31, 2009, September 30, 2009, June 30, 2009, 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) | Excludes 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 $942 million, $903 million, $854 million, $770 million, $824 million, $787 million, $735 million and $734 million at December 31, 2009, September 30, 2009, June 30, 2009, 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) | Nonperforming loans and assets exclude: (1) mortgage loans insured by U.S. government agencies of $9.0 billion, $7.0 billion, $4.2 billion, $4.2 billion, $3.0 billion, $1.4 billion, $1.4 billion and $1.3 billion at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively; (2) real estate owned insured by U.S. government agencies of $579 million, $579 million, $508 million, $433 million, $364 million, $370 million, $490 million and $478 million at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively; and (3) 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 $542 million, $511 million, $473 million, $433 million, $437 million, $405 million, $394 million and $418 million at December 31, 2009, September 30, 2009, June 30, 2009, 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. |
Page 7
JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions, except ratio data and where otherwise noted)
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions, except ratio data and where otherwise noted)
QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||
4Q09 | 3Q09 | 2Q09 | 1Q09 | 4Q08 | 3Q08 | 2Q08 | 1Q08 | 2009 | 2008 | |||||||||||||||||||||||||||||||
MORTGAGE BANKING & OTHER CONSUMER LENDING (continued) | ||||||||||||||||||||||||||||||||||||||||
Origination volume: | ||||||||||||||||||||||||||||||||||||||||
Mortgage origination volume by channel | ||||||||||||||||||||||||||||||||||||||||
Retail | $ | 12.3 | $ | 13.3 | $ | 14.7 | $ | 13.6 | $ | 7.6 | $ | 8.4 | $ | 12.5 | $ | 12.6 | $ | 53.9 | $ | 41.1 | ||||||||||||||||||||
Wholesale (a) | 3.4 | 3.4 | 2.4 | 2.6 | 3.8 | 5.9 | 9.1 | 10.6 | 11.8 | 29.4 | ||||||||||||||||||||||||||||||
Correspondent | 17.2 | 18.4 | 20.2 | 17.0 | 13.3 | 13.2 | 17.0 | 12.0 | 72.8 | 55.5 | ||||||||||||||||||||||||||||||
CNT (negotiated transactions) | 1.9 | 2.0 | 3.8 | 4.5 | 3.4 | 10.2 | 17.5 | 11.9 | 12.2 | 43.0 | ||||||||||||||||||||||||||||||
Total mortgage origination volume | 34.8 | 37.1 | 41.1 | 37.7 | 28.1 | 37.7 | 56.1 | 47.1 | 150.7 | 169.0 | ||||||||||||||||||||||||||||||
Student loans | 0.6 | 1.5 | 0.4 | 1.7 | 1.0 | 2.6 | 1.3 | 2.0 | 4.2 | 6.9 | ||||||||||||||||||||||||||||||
Auto | 5.9 | 6.9 | 5.3 | 5.6 | 2.8 | 3.8 | 5.6 | 7.2 | 23.7 | 19.4 | ||||||||||||||||||||||||||||||
Application volume: | ||||||||||||||||||||||||||||||||||||||||
Mortgage application volume by channel | ||||||||||||||||||||||||||||||||||||||||
Retail | $ | 17.4 | $ | 17.8 | $ | 23.0 | $ | 32.7 | $ | 24.2 | $ | 17.1 | $ | 20.8 | $ | 27.0 | $ | 90.9 | $ | 89.1 | ||||||||||||||||||||
Wholesale (a) | 3.7 | 4.7 | 4.3 | 3.7 | 8.8 | 11.7 | 15.9 | 26.6 | 16.4 | 63.0 | ||||||||||||||||||||||||||||||
Correspondent | 22.3 | 23.0 | 26.7 | 27.3 | 21.2 | 18.2 | 19.7 | 23.4 | 99.3 | 82.5 | ||||||||||||||||||||||||||||||
Total mortgage application volume | 43.4 | 45.5 | 54.0 | 63.7 | 54.2 | 47.0 | 56.4 | 77.0 | 206.6 | 234.6 | ||||||||||||||||||||||||||||||
Average mortgage loans held-for-sale & loans at fair value (b) | 16.2 | 18.0 | 16.7 | 14.0 | 12.2 | 14.9 | 17.4 | 13.8 | 16.2 | 14.6 | ||||||||||||||||||||||||||||||
Average assets | 119.5 | 115.2 | 111.6 | 113.4 | 108.7 | 97.3 | 97.6 | 91.5 | 115.0 | 98.8 | ||||||||||||||||||||||||||||||
Third-party mortgage loans serviced (ending) | 1,082.1 | 1,098.9 | 1,117.5 | 1,148.8 | 1,172.6 | 1,114.8 | 659.1 | 627.1 | 1,082.1 | 1,172.6 | ||||||||||||||||||||||||||||||
Third-party mortgage loans serviced (average) | 1,088.8 | 1,104.4 | 1,128.1 | 1,155.0 | 1,169.0 | 669.7 | 640.3 | 620.5 | 1,119.1 | 774.9 | ||||||||||||||||||||||||||||||
MSR net carrying value (ending) | 15.5 | 13.6 | 14.6 | 10.6 | 9.3 | 16.4 | 10.9 | 8.4 | 15.5 | 9.3 | ||||||||||||||||||||||||||||||
Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending) | 1.43 | % | 1.24 | % | 1.31 | % | 0.92 | % | 0.79 | % | 1.47 | % | 1.65 | % | 1.34 | % | 1.43 | % | 0.79 | % | ||||||||||||||||||||
SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions) | ||||||||||||||||||||||||||||||||||||||||
Production revenue | $ | (192 | ) | $ | (70 | ) | $ | 284 | $ | 481 | $ | 62 | $ | 66 | $ | 394 | $ | 376 | $ | 503 | $ | 898 | ||||||||||||||||||
Net mortgage servicing revenue: | ||||||||||||||||||||||||||||||||||||||||
Operating revenue: | ||||||||||||||||||||||||||||||||||||||||
Loan servicing revenue | 1,221 | 1,220 | 1,279 | 1,222 | 1,366 | 654 | 645 | 593 | 4,942 | 3,258 | ||||||||||||||||||||||||||||||
Other changes in MSR asset fair value | (657 | ) | (712 | ) | (837 | ) | (1,073 | ) | (843 | ) | (390 | ) | (394 | ) | (425 | ) | (3,279 | ) | (2,052 | ) | ||||||||||||||||||||
Total operating revenue | 564 | 508 | 442 | 149 | 523 | 264 | 251 | 168 | 1,663 | 1,206 | ||||||||||||||||||||||||||||||
Risk management: | ||||||||||||||||||||||||||||||||||||||||
Changes in MSR asset fair value due to inputs or assumptions in model | 1,762 | (1,099 | ) | 3,831 | 1,310 | (6,950 | ) | (786 | ) | 1,519 | (632 | ) | 5,804 | (6,849 | ) | |||||||||||||||||||||||||
Derivative valuation adjustments and other | (1,653 | ) | 1,534 | (3,750 | ) | (307 | ) | 8,327 | 894 | (1,468 | ) | 613 | (4,176 | ) | 8,366 | |||||||||||||||||||||||||
Total risk management | 109 | 435 | 81 | 1,003 | 1,377 | 108 | 51 | (19 | ) | 1,628 | 1,517 | |||||||||||||||||||||||||||||
Total net mortgage servicing revenue | 673 | 943 | 523 | 1,152 | 1,900 | 372 | 302 | 149 | 3,291 | 2,723 | ||||||||||||||||||||||||||||||
Mortgage fees and related income | 481 | 873 | 807 | 1,633 | 1,962 | 438 | 696 | 525 | 3,794 | 3,621 | ||||||||||||||||||||||||||||||
Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average) | 0.44 | % | 0.44 | % | 0.45 | % | 0.43 | % | 0.46 | % | 0.39 | % | 0.41 | % | 0.38 | % | 0.44 | % | 0.42 | % | ||||||||||||||||||||
MSR revenue multiple (c) | 3.25x | 2.82x | 2.91x | 2.14x | 1.72x | 3.77x | 4.02x | 3.53x | 3.25x | 1.88x |
(a) | Includes rural housing loans sourced through brokers and underwritten under U.S. Department of Agriculture guidelines. | |
(b) | Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. Average balances of these loans totaled $16.0 billion, $17.7 billion, $16.2 billion, $13.4 billion, $12.0 billion, $14.5 billion, $16.9 billion and $13.4 billion for the quarters ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008, respectively, and $15.8 billion and $14.2 billion for full year 2009 and 2008, respectively. | |
(c) | Represents the ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending) divided by the ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average). |
Page 8
JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||
4Q09 | 3Q09 | 2Q09 | 1Q09 | 4Q08 | 3Q08 | 2Q08 | 1Q08 | 2009 | 2008 | |||||||||||||||||||||||||||||||
REAL ESTATE PORTFOLIOS | ||||||||||||||||||||||||||||||||||||||||
Noninterest revenue | $ | (6 | ) | $ | 19 | $ | 3 | $ | (42 | ) | $ | (81 | ) | $ | (45 | ) | $ | (29 | ) | $ | (130 | ) | $ | (26 | ) | $ | (285 | ) | ||||||||||||
Net interest income | 1,552 | 1,588 | 1,590 | 1,816 | 1,480 | 862 | 917 | 968 | 6,546 | 4,227 | ||||||||||||||||||||||||||||||
Total net revenue | 1,546 | 1,607 | 1,593 | 1,774 | 1,399 | 817 | 888 | 838 | 6,520 | 3,942 | ||||||||||||||||||||||||||||||
Provision for credit losses | 3,739 | 3,558 | 3,119 | 3,147 | 2,920 | 1,811 | 1,391 | 2,439 | 13,563 | 8,561 | ||||||||||||||||||||||||||||||
Noninterest expense | 565 | 411 | 417 | 454 | 336 | 176 | 201 | 176 | 1,847 | 889 | ||||||||||||||||||||||||||||||
Income/(loss) before income tax expense/(benefit) | (2,758 | ) | (2,362 | ) | (1,943 | ) | (1,827 | ) | (1,857 | ) | (1,170 | ) | (704 | ) | (1,777 | ) | (8,890 | ) | (5,508 | ) | ||||||||||||||||||||
Net income/(loss) | $ | (1,692 | ) | $ | (1,448 | ) | $ | (1,190 | ) | $ | (1,119 | ) | $ | (1,143 | ) | $ | (720 | ) | $ | (437 | ) | $ | (1,088 | ) | $ | (5,449 | ) | $ | (3,388 | ) | ||||||||||
Overhead ratio | 37 | % | 26 | % | 26 | % | 26 | % | 24 | % | 22 | % | 23 | % | 21 | % | 28 | % | 23 | % | ||||||||||||||||||||
BUSINESS METRICS (in billions) | ||||||||||||||||||||||||||||||||||||||||
LOANS EXCLUDING PURCHASED CREDIT-IMPAIRED LOANS (a) | ||||||||||||||||||||||||||||||||||||||||
End-of-period loans owned: | ||||||||||||||||||||||||||||||||||||||||
Home equity | $ | 101.4 | $ | 104.8 | $ | 108.2 | $ | 111.7 | $ | 114.3 | $ | 116.8 | $ | 95.1 | $ | 95.0 | $ | 101.4 | $ | 114.3 | ||||||||||||||||||||
Prime mortgage | 47.5 | 50.0 | 53.2 | 56.6 | 58.7 | 58.2 | 35.6 | 34.3 | 47.5 | 58.7 | ||||||||||||||||||||||||||||||
Subprime mortgage | 12.5 | 13.3 | 13.8 | 14.6 | 15.3 | 18.1 | 14.8 | 15.8 | 12.5 | 15.3 | ||||||||||||||||||||||||||||||
Option ARMs | 8.5 | 8.9 | 9.0 | 9.0 | 9.0 | 19.0 | — | — | 8.5 | 9.0 | ||||||||||||||||||||||||||||||
Other | 0.7 | 0.7 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 1.0 | 0.7 | 0.9 | ||||||||||||||||||||||||||||||
Total end-of-period loans | 170.6 | 177.7 | 185.1 | 192.8 | 198.2 | 213.0 | 146.4 | 146.1 | 170.6 | 198.2 | ||||||||||||||||||||||||||||||
Average loans owned: | ||||||||||||||||||||||||||||||||||||||||
Home equity | $ | 103.3 | $ | 106.6 | $ | 110.1 | $ | 113.4 | $ | 114.6 | $ | 94.8 | $ | 95.1 | $ | 95.0 | $ | 108.3 | $ | 99.9 | ||||||||||||||||||||
Prime mortgage | 48.8 | 51.7 | 54.9 | 58.0 | 59.7 | 35.3 | 35.3 | 32.4 | 53.4 | 40.7 | ||||||||||||||||||||||||||||||
Subprime mortgage | 12.8 | 13.6 | 14.3 | 14.9 | 15.7 | 14.2 | 15.5 | 15.7 | 13.9 | 15.3 | ||||||||||||||||||||||||||||||
Option ARMs | 8.7 | 8.9 | 9.1 | 8.8 | 9.0 | — | — | — | 8.9 | 2.3 | ||||||||||||||||||||||||||||||
Other | 0.7 | 0.8 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 1.0 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||
Total average loans | 174.3 | 181.6 | 189.3 | 196.0 | 199.9 | 145.2 | 146.8 | 144.1 | 185.3 | 159.1 | ||||||||||||||||||||||||||||||
PURCHASED CREDIT-IMPAIRED LOANS (a) | ||||||||||||||||||||||||||||||||||||||||
End-of-period loans owned: | ||||||||||||||||||||||||||||||||||||||||
Home equity | $ | 26.5 | $ | 27.1 | $ | 27.7 | $ | 28.4 | $ | 28.6 | $ | 26.5 | $ | — | $ | — | $ | 26.5 | $ | 28.6 | ||||||||||||||||||||
Prime mortgage | 19.7 | 20.2 | 20.8 | 21.4 | 21.8 | 24.7 | — | — | 19.7 | 21.8 | ||||||||||||||||||||||||||||||
Subprime mortgage | 6.0 | 6.1 | 6.4 | 6.6 | 6.8 | 3.9 | — | — | 6.0 | 6.8 | ||||||||||||||||||||||||||||||
Option ARMs | 29.0 | 29.8 | 30.5 | 31.2 | 31.6 | 22.6 | — | — | 29.0 | 31.6 | ||||||||||||||||||||||||||||||
Total end-of-period loans | 81.2 | 83.2 | 85.4 | 87.6 | 88.8 | 77.7 | — | — | 81.2 | 88.8 | ||||||||||||||||||||||||||||||
Average loans owned: | ||||||||||||||||||||||||||||||||||||||||
Home equity | $ | 26.7 | $ | 27.4 | $ | 28.0 | $ | 28.4 | $ | 28.2 | $ | — | $ | — | $ | — | $ | 27.6 | $ | 7.1 | ||||||||||||||||||||
Prime mortgage | 20.0 | 20.5 | 21.0 | 21.6 | 21.9 | — | — | — | 20.8 | 5.4 | ||||||||||||||||||||||||||||||
Subprime mortgage | 6.1 | 6.2 | 6.5 | 6.7 | 6.8 | — | — | — | 6.3 | 1.7 | ||||||||||||||||||||||||||||||
Option ARMs | 29.3 | 30.2 | 31.0 | 31.4 | 31.6 | — | — | — | 30.5 | 8.0 | ||||||||||||||||||||||||||||||
Total average loans | 82.1 | 84.3 | 86.5 | 88.1 | 88.5 | — | — | — | 85.2 | 22.2 | ||||||||||||||||||||||||||||||
TOTAL REAL ESTATE PORTFOLIOS | ||||||||||||||||||||||||||||||||||||||||
End-of-period loans owned: | ||||||||||||||||||||||||||||||||||||||||
Home equity | $ | 127.9 | $ | 131.9 | $ | 135.9 | $ | 140.1 | $ | 142.9 | $ | 143.3 | $ | 95.1 | $ | 95.0 | $ | 127.9 | $ | 142.9 | ||||||||||||||||||||
Prime mortgage | 67.2 | 70.2 | 74.0 | 78.0 | 80.5 | 82.9 | 35.6 | 34.3 | 67.2 | 80.5 | ||||||||||||||||||||||||||||||
Subprime mortgage | 18.5 | 19.4 | 20.2 | 21.2 | 22.1 | 22.0 | 14.8 | 15.8 | 18.5 | 22.1 | ||||||||||||||||||||||||||||||
Option ARMs | 37.5 | 38.7 | 39.5 | 40.2 | 40.6 | 41.6 | — | — | 37.5 | 40.6 | ||||||||||||||||||||||||||||||
Other | 0.7 | 0.7 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 1.0 | 0.7 | 0.9 | ||||||||||||||||||||||||||||||
Total end-of-period loans | 251.8 | 260.9 | 270.5 | 280.4 | 287.0 | 290.7 | 146.4 | 146.1 | 251.8 | 287.0 | ||||||||||||||||||||||||||||||
Average loans owned: | ||||||||||||||||||||||||||||||||||||||||
Home equity | $ | 130.0 | $ | 134.0 | $ | 138.1 | $ | 141.8 | $ | 142.8 | $ | 94.8 | $ | 95.1 | $ | 95.0 | $ | 135.9 | $ | 107.0 | ||||||||||||||||||||
Prime mortgage | 68.8 | 72.2 | 75.9 | 79.6 | 81.6 | 35.3 | 35.3 | 32.4 | 74.2 | 46.1 | ||||||||||||||||||||||||||||||
Subprime mortgage | 18.9 | 19.8 | 20.8 | 21.6 | 22.5 | 14.2 | 15.5 | 15.7 | 20.2 | 17.0 | ||||||||||||||||||||||||||||||
Option ARMs | 38.0 | 39.1 | 40.1 | 40.2 | 40.6 | — | — | — | 39.4 | 10.3 | ||||||||||||||||||||||||||||||
Other | 0.7 | 0.8 | 0.9 | 0.9 | 0.9 | 0.9 | 0.9 | 1.0 | 0.8 | 0.9 | ||||||||||||||||||||||||||||||
Total average loans owned | 256.4 | 265.9 | 275.8 | 284.1 | 288.4 | 145.2 | 146.8 | 144.1 | 270.5 | 181.3 | ||||||||||||||||||||||||||||||
Average assets | 247.3 | 258.3 | 269.5 | 279.9 | 286.3 | 142.5 | 144.5 | 143.1 | 263.6 | 179.3 | ||||||||||||||||||||||||||||||
Home equity origination volume | 0.4 | 0.5 | 0.6 | 0.9 | 1.7 | 2.6 | 5.3 | 6.7 | 2.4 | 16.3 |
(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. 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. |
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JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||
4Q09 | 3Q09 | 2Q09 | 1Q09 | 4Q08 | 3Q08 | 2Q08 | 1Q08 | 2009 | 2008 | |||||||||||||||||||||||||||||||
REAL ESTATE PORTFOLIOS (continued) | ||||||||||||||||||||||||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | ||||||||||||||||||||||||||||||||||||||||
Net charge-offs excluding purchased credit-impaired loans: (a) | ||||||||||||||||||||||||||||||||||||||||
Home equity | $ | 1,177 | $ | 1,142 | $ | 1,265 | $ | 1,098 | $ | 770 | $ | 663 | $ | 511 | $ | 447 | $ | 4,682 | $ | 2,391 | ||||||||||||||||||||
Prime mortgage | 568 | 518 | 479 | 307 | 193 | 175 | 103 | 50 | 1,872 | 521 | ||||||||||||||||||||||||||||||
Subprime mortgage | 452 | 422 | 410 | 364 | 319 | 273 | 192 | 149 | 1,648 | 933 | ||||||||||||||||||||||||||||||
Option ARMs | 29 | 15 | 15 | 4 | — | — | — | — | 63 | — | ||||||||||||||||||||||||||||||
Other | 24 | 19 | 20 | 15 | 13 | 12 | 11 | 13 | 78 | 49 | ||||||||||||||||||||||||||||||
Total net charge-offs | 2,250 | 2,116 | 2,189 | 1,788 | 1,295 | 1,123 | 817 | 659 | 8,343 | 3,894 | ||||||||||||||||||||||||||||||
Net charge-off rate excluding purchased credit-impaired loans: (a) | ||||||||||||||||||||||||||||||||||||||||
Home equity | 4.52 | % | 4.25 | % | 4.61 | % | 3.93 | % | 2.67 | % | 2.78 | % | 2.16% | 1.89 | % | 4.32 | % | 2.39 | % | |||||||||||||||||||||
Prime mortgage | 4.62 | 3.98 | 3.50 | 2.15 | 1.29 | 1.97 | 1.17 | 0.62 | 3.51 | 1.28 | ||||||||||||||||||||||||||||||
Subprime mortgage | 14.01 | 12.31 | 11.50 | 9.91 | 8.08 | 7.65 | 4.98 | 3.82 | 11.86 | 6.10 | ||||||||||||||||||||||||||||||
Option ARMs | 1.32 | 0.67 | 0.66 | 0.18 | — | — | — | — | 0.71 | — | ||||||||||||||||||||||||||||||
Other | 13.60 | 9.42 | 8.91 | 6.76 | 5.75 | 5.30 | 4.92 | 5.23 | 9.75 | 5.44 | ||||||||||||||||||||||||||||||
Total net charge-off rate excluding purchased credit-impaired loans | 5.12 | 4.62 | 4.64 | 3.70 | 2.58 | 3.08 | 2.24 | 1.84 | 4.50 | 2.45 | ||||||||||||||||||||||||||||||
Net charge-off rate — reported: | ||||||||||||||||||||||||||||||||||||||||
Home equity | 3.59 | 3.38 | 3.67 | 3.14 | 2.15 | 2.78 | 2.16 | 1.89 | 3.45 | 2.23 | ||||||||||||||||||||||||||||||
Prime mortgage | 3.28 | 2.85 | 2.53 | 1.56 | 0.94 | 1.97 | 1.17 | 0.62 | 2.52 | 1.13 | ||||||||||||||||||||||||||||||
Subprime mortgage | 9.49 | 8.46 | 7.91 | 6.83 | 5.64 | 7.65 | 4.98 | 3.82 | 8.16 | 5.49 | ||||||||||||||||||||||||||||||
Option ARMs | 0.30 | 0.15 | 0.15 | 0.04 | — | — | — | — | 0.16 | — | ||||||||||||||||||||||||||||||
Other | 13.60 | 9.42 | 8.91 | 6.76 | 5.75 | 5.30 | 4.92 | 5.23 | 9.75 | 5.44 | ||||||||||||||||||||||||||||||
Total net charge-off rate — reported | 3.48 | 3.16 | 3.18 | 2.55 | 1.79 | 3.08 | 2.24 | 1.84 | 3.08 | 2.15 | ||||||||||||||||||||||||||||||
30+ day delinquency rate excluding purchased credit-impaired loans (b) | 7.73 | 7.46 | 6.46 | 5.87 | 4.97 | 3.61 | 4.58 | 3.94 | 7.73 | 4.97 | ||||||||||||||||||||||||||||||
Allowance for loan losses | $ | 12,752 | $ | 11,261 | $ | 9,821 | $ | 8,870 | $ | 7,510 | $ | 4,941 | $ | 4,252 | $ | 3,676 | $ | 12,752 | $ | 7,510 | ||||||||||||||||||||
Nonperforming assets (c) | 10,347 | 10,196 | 9,085 | 8,437 | 7,787 | 6,884 | 4,379 | 3,554 | 10,347 | 7,787 | ||||||||||||||||||||||||||||||
Allowance for loan losses to ending loans retained | 5.06 | % | 4.32 | % | 3.63 | % | 3.16 | % | 2.62 | % | 1.70 | % | 2.90 | % | 2.52 | % | 5.06 | % | 2.62 | % | ||||||||||||||||||||
Allowance for loan losses to ending loans retained excluding purchased credit-impaired loans (a) | 6.55 | 5.72 | 5.31 | 4.60 | 3.79 | 2.32 | 2.90 | 2.52 | 6.55 | 3.79 |
(a) | Excludes the impact of purchased credit-impaired loans 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 that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $1.6 billion and $1.1 billion was recorded for these loans at December 31, 2009 and September 30, 2009, respectively, which has also been excluded from applicable ratios. No allowance for loan losses was recorded as of June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008. To date, no charge-offs have been recorded for these loans. | |
(b) | The delinquency rate for purchased credit-impaired loans was 27.79%, 25.56%, 23.37%, 21.36%, 17.89% and 13.21% at December 31, 2009, September 30, 2009, June 30, 2009, 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. | |
(c) | Excludes purchased credit-impaired loans 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. |
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