JPMorgan Chase & Co. (JPM) 8-K Jpmorgan Chase Reports First-quarter 2010 Net Income of $3.3 Billion, or $0.74 Per Share, on REVENUE1 of $28.2 Billion

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2010

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		18
Commercial Banking		21
Treasury & Securities Services		23
Asset Management		25
Corporate/Private Equity		28
Credit-Related Information		30
Market Risk-Related Information		35
Supplemental Detail
Capital, Intangible Assets and Deposits		36
Per Share-Related Information		37
Non-GAAP Financial Measures		38
Glossary of Terms		39

Page 1

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
SELECTED INCOME STATEMENT DATA:
Reported Basis
Total net revenue	$	27,671		$	23,164		$	26,622		$	25,623		$	25,025			19	%		11	%
Total noninterest expense		16,124			12,004			13,455			13,520			13,373			34			21
Preprovision profit (a)		11,547			11,160			13,167			12,103			11,652			3			(1	)
Provision for credit losses		7,010			7,284			8,104			8,031			8,596			(4	)		(18	)
Income before extraordinary gain		3,326			3,278			3,512			2,721			2,141			1			55
Extraordinary gain		—			—			76			—			—			—			—
NET INCOME		3,326			3,278			3,588			2,721			2,141			1			55
Managed Basis (b)
Total net revenue	$	28,172		$	25,236		$	28,780		$	27,709		$	26,922			12			5
Total noninterest expense		16,124			12,004			13,455			13,520			13,373			34			21
Preprovision profit (a)		12,048			13,232			15,325			14,189			13,549			(9	)		(11	)
Provision for credit losses		7,010			8,901			9,802			9,695			10,060			(21	)		(30	)
Income before extraordinary gain		3,326			3,278			3,512			2,721			2,141			1			55
Extraordinary gain		—			—			76			—			—			—			—
NET INCOME		3,326			3,278			3,588			2,721			2,141			1			55
PER COMMON SHARE:
Basic Earnings
Income before extraordinary gain		0.75			0.75			0.80			0.28			0.40			—			88
Net income		0.75			0.75			0.82			0.28			0.40			—			88
Diluted Earnings (c)
Income before extraordinary gain		0.74			0.74			0.80			0.28			0.40			—			85
Net income		0.74			0.74			0.82			0.28			0.40			—			85
Cash dividends declared		0.05			0.05			0.05			0.05			0.05			—			—
Book value		39.38			39.88			39.12			37.36			36.78			(1	)		7
Closing share price		44.75			41.67			43.82			34.11			26.58			7			68
Market capitalization		177,897			164,261			172,596			133,852			99,881			8			78
COMMON SHARES OUTSTANDING:
Weighted-average diluted shares outstanding		3,994.7			3,974.1			3,962.0			3,824.1			3,758.7			1			6
Common shares outstanding at period-end		3,975.4			3,942.0			3,938.7			3,924.1			3,757.7			1			6
FINANCIAL RATIOS: (d)
Income before extraordinary gain:
Return on common equity (“ROE”) (c)		8	%		8	%		9	%		3	%		5	%
Return on tangible common equity (“ROTCE”) (c) (e)		12			12			13			5			8
Return on assets (“ROA”)		0.66			0.65			0.70			0.54			0.42
Net income:
ROE (c)		8			8			9			3			5
ROTCE (c) (e)		12			12			14			5			8
ROA		0.66			0.65			0.71			0.54			0.42
CAPITAL RATIOS:
Tier 1 capital ratio		11.5	(g)		11.1			10.2			9.7			11.4
Total capital ratio		15.1	(g)		14.8			13.9			13.3			15.2
Tier 1 common capital ratio (f)		9.1	(g)		8.8			8.2			7.7			7.3
SELECTED BALANCE SHEET DATA (Period-end)
Total assets	$	2,135,796	(h)	$	2,031,989		$	2,041,009		$	2,026,642		$	2,079,188			5			3
Wholesale loans		214,290	(h)		204,175			218,953			231,625			242,284			5			(12	)
Consumer loans		499,509	(h)		429,283			434,191			448,976			465,959			16			7
Deposits		925,303			938,367			867,977			866,477			906,969			(1	)		2
Common stockholders’ equity		156,569	(h)		157,213			154,101			146,614			138,201			—			13
Total stockholders’ equity		164,721	(h)		165,365			162,253			154,766			170,194			—			(3	)
Headcount		226,623			222,316			220,861			220,255			219,569			2			3
LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	2,471		$	1,901		$	1,921		$	1,471		$	1,606			30			54
Retail Financial Services		(131	)		(399	)		7			15			474			67			NM
Card Services		(303	)		(306	)		(700	)		(672	)		(547	)		1			45
Commercial Banking		390			224			341			368			338			74			15
Treasury & Securities Services		279			237			302			379			308			18			(9	)
Asset Management		392			424			430			352			224			(8	)		75
Corporate/Private Equity		228			1,197			1,287			808			(262	)		(81	)		NM
Net income	$	3,326		$	3,278		$	3,588		$	2,721		$	2,141			1			55

(a)	Preprovision profit is total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
(b)	For further discussion of managed basis, see Reconciliation from reported to managed summary on page 6.
(c)	The calculation of the second quarter 2009 earnings per share and net income applicable to common equity includes a one-time, noncash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of Troubled Asset Relief Program (“TARP”) preferred capital. Excluding this reduction, the adjusted ROE and ROTCE for the second quarter 2009 would have been 6% and 10%, respectively. The Firm views the adjusted ROE and ROTCE, both non-GAAP financial measures, as meaningful because they enable the comparability to prior periods.
(d)	Quarterly ratios are based upon annualized amounts.
(e)	Net income applicable to common equity divided by total average 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. The Firm uses return on tangible common equity, a non-GAAP financial measure, to evaluate the Firm’s use of equity and to facilitate comparisons with competitors.
(f)	The Tier 1 common ratio is Tier 1 common capital divided by risk-weighted assets. Tier 1 common capital (“Tier 1 Common”) is defined as Tier 1 capital less elements of capital not in the form of common equity — such as perpetual preferred stock, noncontrolling interest in subsidiaries and trust preferred capital debt securities. Tier 1 common capital, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position.
(g)	Estimated.
(h)	Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts, Firm-administered multi-seller conduits and certain other consumer loan securitization entities, primarily mortgage-related, adding $87.6 billion and $92.1 billion of assets and liabilities, respectively, and decreasing stockholders’ equity by $4.5 billion.

Page 2

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
REVENUE
Investment banking fees	$	1,461		$	1,916		$	1,679		$	2,106		$	1,386			(24	)%	��	5	%
Principal transactions		4,548			838			3,860			3,097			2,001			443			127
Lending- and deposit-related fees		1,646			1,765			1,826			1,766			1,688			(7	)		(2	)
Asset management, administration and commissions		3,265			3,361			3,158			3,124			2,897			(3	)		13
Securities gains		610			381			184			347			198			60			208
Mortgage fees and related income		658			450			843			784			1,601			46			(59	)
Credit card income		1,361			1,844			1,710			1,719			1,837			(26	)		(26	)
Other income		412			231			625			10			50			78			NM
Noninterest revenue		13,961			10,786			13,885			12,953			11,658			29			20
Interest income		16,845			15,615			16,260			16,549			17,926			8			(6	)
Interest expense		3,135			3,237			3,523			3,879			4,559			(3	)		(31	)
Net interest income		13,710			12,378			12,737			12,670			13,367			11			3
TOTAL NET REVENUE		27,671			23,164			26,622			25,623			25,025			19			11
Provision for credit losses		7,010			7,284			8,104			8,031			8,596			(4	)		(18	)
NONINTEREST EXPENSE
Compensation expense		7,276			5,112			7,311			6,917			7,588			42			(4	)
Occupancy expense		869			944			923			914			885			(8	)		(2	)
Technology, communications and equipment expense		1,137			1,182			1,140			1,156			1,146			(4	)		(1	)
Professional and outside services		1,575			1,682			1,517			1,518			1,515			(6	)		4
Marketing		583			536			440			417			384			9			52
Other expense (a)		4,441			2,262			1,767			2,190			1,375			96			223
Amortization of intangibles		243			256			254			265			275			(5	)		(12	)
Merger costs		—			30			103			143			205			NM			NM
TOTAL NONINTEREST EXPENSE		16,124			12,004			13,455			13,520			13,373			34			21
Income before income tax expense and extraordinary gain		4,537			3,876			5,063			4,072			3,056			17			48
Income tax expense (b)		1,211			598			1,551			1,351			915			103			32
Income before extraordinary gain		3,326			3,278			3,512			2,721			2,141			1			55
Extraordinary gain (c)		—			—			76			—			—			—			—
NET INCOME	$	3,326		$	3,278		$	3,588		$	2,721		$	2,141			1			55
DILUTED EARNINGS PER SHARE
Income before extraordinary gain (d)	$	0.74		$	0.74		$	0.80		$	0.28		$	0.40			—			85
Extraordinary gain		—			—			0.02			—			—			—			—
NET INCOME (d)	$	0.74		$	0.74		$	0.82		$	0.28		$	0.40			—			85
FINANCIAL RATIOS
Income before extraordinary gain:
ROE (d)		8	%		8	%		9	%		3	%		5	%
ROTCE (d)		12			12			13			5			8
ROA		0.66			0.65			0.70			0.54			0.42
Net income:
ROE (d)		8			8			9			3			5
ROTCE (d)		12			12			14			5			8
ROA		0.66			0.65			0.71			0.54			0.42
Effective income tax rate		27			15			31			33			30
Overhead ratio		58			52			51			53			53
EXCLUDING IMPACT OF MERGER COSTS (e)
Income before extraordinary gain	$	3,326		$	3,278		$	3,512		$	2,721		$	2,141			1			55
Merger costs (after-tax)		—			18			64			89			127			NM			NM
Income before extra. gain excl. merger costs	$	3,326		$	3,296		$	3,576		$	2,810		$	2,268			1			47
Diluted Per Share:
Income before extraordinary gain (d)	$	0.74		$	0.74		$	0.80		$	0.28		$	0.40			—			85
Merger costs (after-tax)		—			0.01			0.02			0.02			0.03			NM			NM
Income before extra. gain excl. merger costs (d)	$	0.74		$	0.75		$	0.82		$	0.30		$	0.43			(1	)		72

(a)	The second quarter of 2009 included a $675 million FDIC special assessment.
(b)	The income tax expense in the first quarter of 2010 and fourth quarter of 2009 includes tax benefits recognized upon the resolution of tax audits.
(c)	On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual. The acquisition resulted in negative goodwill, and accordingly, the Firm recognized an extraordinary gain. A preliminary gain of $1.9 billion was recognized at December 31, 2008. The final total extraordinary gain that resulted from the Washington Mutual transaction was $2.0 billion.
(d)	The calculation of the second quarter 2009 earnings per share and net income applicable to common equity includes a one-time, noncash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital. Excluding this reduction, the adjusted ROE and ROTCE for the second quarter of 2009 would have been 6% and 10%, respectively. The Firm views the adjusted ROE and ROTCE, both non-GAAP financial measures, as meaningful because they enable the comparability to prior periods.
(e)	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)

																March 31, 2010
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2010			2009			2009			2009			2009			2009			2009
ASSETS (a)
Cash and due from banks	$	31,422		$	26,206		$	21,068		$	25,133		$	26,681			20	%		18	%
Deposits with banks		59,014			63,230			59,623			61,882			89,865			(7	)		(34	)
Federal funds sold and securities purchased under resale agreements		230,123			195,404			171,007			159,170			157,237			18			46
Securities borrowed		126,741			119,630			128,059			129,263			127,928			6			(1	)
Trading assets:
Debt and equity instruments		346,712			330,918			330,370			298,135			298,453			5			16
Derivative receivables		79,416			80,210			94,065			97,491			131,247			(1	)		(39	)
Securities		344,376			360,390			372,867			345,563			333,861			(4	)		3
Loans		713,799			633,458			653,144			680,601			708,243			13			1
Less: Allowance for loan losses		38,186			31,602			30,633			29,072			27,381			21			39
Loans, net of allowance for loan losses		675,613			601,856			622,511			651,529			680,862			12			(1	)
Accrued interest and accounts receivable		53,991			67,427			59,948			61,302			52,168			(20	)		3
Premises and equipment		11,123			11,118			10,675			10,668			10,336			—			8
Goodwill		48,359			48,357			48,334			48,288			48,201			—			—
Mortgage servicing rights		15,531			15,531			13,663			14,600			10,634			—			46
Other intangible assets		4,383			4,621			4,862			5,082			5,349			(5	)		(18	)
Other assets		108,992			107,091			103,957			118,536			106,366			2			2
TOTAL ASSETS	$	2,135,796		$	2,031,989		$	2,041,009		$	2,026,642		$	2,079,188			5			3
LIABILITIES (a)
Deposits	$	925,303		$	938,367		$	867,977		$	866,477		$	906,969			(1	)		2
Federal funds purchased and securities loaned or sold under repurchase agreements		295,171			261,413			310,219			300,931			279,837			13			5
Commercial paper		50,554			41,794			53,920			42,713			33,085			21			53
Other borrowed funds		48,981			55,740			50,824			73,968			112,257			(12	)		(56	)
Trading liabilities:
Debt and equity instruments		78,228			64,946			65,233			56,021			53,786			20			45
Derivative payables		62,741			60,125			69,214			67,197			86,020			4			(27	)
Accounts payable and other liabilities (incl. the allowance for lending-related commitments)		154,185			162,696			171,386			171,685			165,521			(5	)		(7	)
Beneficial interests issued by consolidated VIEs		93,055			15,225			17,859			20,945			9,674			NM			NM
Long-term debt		262,857			266,318			272,124			271,939			261,845			(1	)		—
TOTAL LIABILITIES		1,971,075			1,866,624			1,878,756			1,871,876			1,908,994			6			3
STOCKHOLDERS’ EQUITY (a)
Preferred stock		8,152			8,152			8,152			8,152			31,993			—			(75	)
Common stock		4,105			4,105			4,105			4,105			3,942			—			4
Capital surplus		96,450			97,982			97,564			97,662			91,469			(2	)		5
Retained earnings		61,043			62,481			59,573			56,355			55,487			(2	)		10
Accumulated other comprehensive income (loss)		761			(91	)		283			(3,438	)		(4,490	)		NM			NM
Shares held in RSU trust		(68	)		(68	)		(86	)		(86	)		(86	)		—			21
Treasury stock, at cost		(5,722	)		(7,196	)		(7,338	)		(7,984	)		(8,121	)		20			30
TOTAL STOCKHOLDERS’ EQUITY		164,721			165,365			162,253			154,766			170,194			—			(3	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,135,796		$	2,031,989		$	2,041,009		$	2,026,642		$	2,079,188			5			3

(a) Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its credit card securitization trusts, Firm-administered multi-seller conduits and certain mortgage and other consumer loan securitization entities; adding $87.6 billion and $92.1 billion of assets and liabilities, respectively, and decreasing stockholders’ equity by $4.5 billion, driven predominantly by the establishment of an allowance for loan losses of $7.4 billion (pre-tax) related to the receivables held in the credit card securitization trusts that were consolidated at the adoption date.

Page 4

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
AVERAGE BALANCES (a)
ASSETS
Deposits with banks	$	64,229		$	49,705		$	62,248		$	68,001		$	88,587			29	%		(27	)%
Federal funds sold and securities purchased under resale agreements		170,036		$	156,848			151,705			142,226			160,986			8			6
Securities borrowed		114,636			125,453			129,301			122,235			120,752			(9	)		(5	)
Trading assets — debt instruments		248,089			256,414			250,148			245,444			252,098			(3	)		(2	)
Securities		337,441			374,327			359,451			354,216			281,420			(10	)		20
Loans		725,136			642,406			665,386			697,908			726,959			13			—
Other assets (b)		27,885			29,868			24,155			36,638			27,411			(7	)		2
Total interest-earning assets		1,687,452			1,635,021			1,642,394			1,666,668			1,658,213			3			2
Trading assets — equity instruments		83,674			74,936			66,790			63,507			62,748			12			33
Trading assets — derivative receivables		78,683			86,415			99,807			114,096			142,243			(9	)		(45	)
Goodwill		48,542			48,341			48,328			48,273			48,071			—			1
Other intangible assets		19,462			18,509			19,368			17,474			16,584			5			17
All other noninterest-earning assets		120,867			130,003			122,489			128,354			139,260			(7	)		(13	)
TOTAL ASSETS	$	2,038,680		$	1,993,225		$	1,999,176		$	2,038,372		$	2,067,119			2			(1	)
LIABILITIES
Interest-bearing deposits	$	677,431		$	667,269		$	660,998		$	672,350		$	736,460			2			(8	)
Federal funds purchased and securities loaned or sold under repurchase agreements		271,934			283,263			303,175			289,971			226,110			(4	)		20
Commercial paper		37,461			42,290			42,728			37,371			33,694			(11	)		11
Other borrowings and liabilities (c)		188,475			182,422			178,985			207,489			236,673			3			(20	)
Beneficial interests issued by consolidated VIEs		98,104			16,002			19,351			14,493			9,757			NM			NM
Long-term debt		262,503			268,476			271,281			274,323			258,732			(2	)		1
Total interest-bearing liabilities		1,535,908			1,459,722			1,476,518			1,495,997			1,501,426			5			2
Trading liabilities — derivative payables		59,053			63,423			75,458			78,155			94,944			(7	)		(38	)
All other noninterest-bearing liabilities		279,473			305,403			289,580			295,017			302,299			(8	)		(8	)
TOTAL LIABILITIES		1,874,434			1,828,548			1,841,556			1,869,169			1,898,669			3			(1	)
Preferred stock		8,152			8,152			8,152			28,338			31,957			—			(74	)
Common stockholders’ equity		156,094			156,525			149,468			140,865			136,493			—			14
TOTAL STOCKHOLDERS’ EQUITY		164,246			164,677			157,620			169,203			168,450			—			(2	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,038,680		$	1,993,225		$	1,999,176		$	2,038,372		$	2,067,119			2			(1	)
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks		0.60	%		0.95	%		0.83	%		1.45	%		2.03	%
Federal funds sold and securities purchased under resale agreements		0.97			0.92			0.96			1.04			1.64
Securities borrowed		0.10			0.14			(0.09	)		(0.32	)		0.29
Trading assets — debt instruments		4.56			4.63			4.78			4.91			5.27
Securities		3.54			3.32			3.62			3.64			4.16
Loans		5.91			5.51			5.64			5.65			5.87
Other assets (b)		1.36			1.42			2.18			0.80			2.44
Total interest-earning assets		4.07			3.80			3.95			4.00			4.41
INTEREST-BEARING LIABILITIES
Interest-bearing deposits		0.51			0.53			0.65			0.70			0.93
Federal funds purchased and securities sold under repurchase agreements		(0.05	)(d)		0.08			0.20			0.23			0.36
Commercial paper		0.19			0.20			0.23			0.24			0.47
Other borrowings and liabilities (c)		1.54			1.87			1.70			1.32			1.46
Beneficial interests issued by consolidated VIEs		1.36			1.32			1.43			1.59			1.57
Long-term debt		1.95			2.01			2.09			2.60			2.73
Total interest-bearing liabilities		0.83			0.88			0.95			1.04			1.23
INTEREST RATE SPREAD		3.24	%		2.92	%		3.00	%		2.96	%		3.18	%
NET YIELD ON INTEREST-EARNING ASSETS		3.32	%		3.02	%		3.10	%		3.07	%		3.29	%
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS (a)		3.32	%		3.33	%		3.40	%		3.37	%		3.60	%

(a)	Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. For additional information on the effect of the adoption, see page 4, footnote (a).
(b)	Includes margin loans and the Firm’s investment in asset-backed commercial paper under the Federal Reserve Bank of Boston’s AML facility, which declined to zero during the third quarter of 2009.
(c)	Includes securities sold but not yet purchased, brokerage customer payables and advances from Federal Home Loan Banks.
(d)	Reflects a benefit from the favorable market environment for dollar-roll financings in first quarter of 2010 and fourth quarter of 2009.

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 analyzes the Firm’s results and the results of the lines of business on a managed basis, which is a non-GAAP financial measure. For additional information about managed basis, refer to the notes on Non-GAAP Financial Measures on page 38.

	QUARTERLY TRENDS
															1Q10 Change
	1Q10		4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
CREDIT CARD INCOME
Credit card income — reported	$	1,361	$	1,844		$	1,710		$	1,719		$	1,837			(26	)%		(26	)%
Impact of:
Credit card securitizations		N/A		(375	)		(285	)		(294	)		(540	)		NM			NM
Credit card income — managed	$	1,361	$	1,469		$	1,425		$	1,425		$	1,297			(7	)		5
OTHER INCOME
Other income — reported	$	412	$	231		$	625		$	10		$	50			78			NM
Impact of:
Tax-equivalent adjustments		411		397			371			335			337			4			22
Other income — managed	$	823	$	628		$	996		$	345		$	387			31			113
TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	13,961	$	10,786		$	13,885		$	12,953		$	11,658			29			20
Impact of:
Credit card securitizations		N/A		(375	)		(285	)		(294	)		(540	)		NM			NM
Tax-equivalent adjustments		411		397			371			335			337			4			22
Total noninterest revenue — managed	$	14,372	$	10,808		$	13,971		$	12,994		$	11,455			33			25
NET INTEREST INCOME
Net interest income — reported	$	13,710	$	12,378		$	12,737		$	12,670		$	13,367			11			3
Impact of:
Credit card securitizations		N/A		1,992			1,983			1,958			2,004			NM			NM
Tax-equivalent adjustments		90		58			89			87			96			55			(6	)
Net interest income — managed	$	13,800	$	14,428		$	14,809		$	14,715		$	15,467			(4	)		(11	)
TOTAL NET REVENUE
Total net revenue — reported	$	27,671	$	23,164		$	26,622		$	25,623		$	25,025			19			11
Impact of:
Credit card securitizations		N/A		1,617			1,698			1,664			1,464			NM			NM
Tax-equivalent adjustments		501		455			460			422			433			10			16
Total net revenue — managed	$	28,172	$	25,236		$	28,780		$	27,709		$	26,922			12			5
PREPROVISION PROFIT
Total preprovision profit — reported	$	11,547	$	11,160		$	13,167		$	12,103		$	11,652			3			(1	)
Impact of:
Credit card securitizations		N/A		1,617			1,698			1,664			1,464			NM			NM
Tax-equivalent adjustments		501		455			460			422			433			10			16
Total preprovision profit — managed	$	12,048	$	13,232		$	15,325		$	14,189		$	13,549			(9	)		(11	)
PROVISION FOR CREDIT LOSSES
Provision for credit losses — reported	$	7,010	$	7,284		$	8,104		$	8,031		$	8,596			(4	)		(18	)
Impact of:
Credit card securitizations		N/A		1,617			1,698			1,664			1,464			NM			NM
Provision for credit losses — managed	$	7,010	$	8,901		$	9,802		$	9,695		$	10,060			(21	)		(30	)
INCOME TAX EXPENSE
Income tax expense — reported	$	1,211	$	598		$	1,551		$	1,351		$	915			103			32
Impact of:
Tax-equivalent adjustments		501		455			460			422			433			10			16
Income tax expense — managed	$	1,712	$	1,053		$	2,011		$	1,773		$	1,348			63			27

N/A: Not applicable.

Page 6

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
TOTAL NET REVENUE (FTE)
Investment Bank (a)	$	8,319		$	4,929		$	7,508		$	7,301		$	8,371			69	%		(1	)%
Retail Financial Services		7,776			7,669			8,218			7,970			8,835			1			(12	)
Card Services		4,447			5,148			5,159			4,868			5,129			(14	)		(13	)
Commercial Banking		1,416			1,406			1,459			1,453			1,402			1			1
Treasury & Securities Services		1,756			1,835			1,788			1,900			1,821			(4	)		(4	)
Asset Management		2,131			2,195			2,085			1,982			1,703			(3	)		25
Corporate/Private Equity (a)		2,327			2,054			2,563			2,235			(339	)		13			NM
TOTAL NET REVENUE	$	28,172		$	25,236		$	28,780		$	27,709		$	26,922			12			5
TOTAL PREPROVISION PROFIT
Investment Bank (a)	$	3,481		$	2,643		$	3,234		$	3,234		$	3,597			32			(3	)
Retail Financial Services		3,534			3,367			4,022			3,891			4,664			5			(24	)
Card Services		3,045			3,752			3,853			3,535			3,783			(19	)		(20	)
Commercial Banking		877			863			914			918			849			2			3
Treasury & Securities Services		431			444			508			612			502			(3	)		(14	)
Asset Management		689			725			734			628			405			(5	)		70
Corporate/Private Equity (a)		(9	)		1,438			2,060			1,371			(251	)		NM			96
TOTAL PREPROVISION PROFIT	$	12,048		$	13,232		$	15,325		$	14,189		$	13,549			(9	)		(11	)
NET INCOME/(LOSS)
Investment Bank	$	2,471		$	1,901		$	1,921		$	1,471		$	1,606			30			54
Retail Financial Services		(131	)		(399	)		7			15			474			67			NM
Card Services		(303	)		(306	)		(700	)		(672	)		(547	)		1			45
Commercial Banking		390			224			341			368			338			74			15
Treasury & Securities Services		279			237			302			379			308			18			(9	)
Asset Management		392			424			430			352			224			(8	)		75
Corporate/Private Equity		228			1,197			1,287			808			(262	)		(81	)		NM
TOTAL NET INCOME	$	3,326		$	3,278		$	3,588		$	2,721		$	2,141			1			55
AVERAGE EQUITY (b)
Investment Bank	$	40,000		$	33,000		$	33,000		$	33,000		$	33,000			21			21
Retail Financial Services		28,000			25,000			25,000			25,000			25,000			12			12
Card Services		15,000			15,000			15,000			15,000			15,000			—			—
Commercial Banking		8,000			8,000			8,000			8,000			8,000			—			—
Treasury & Securities Services		6,500			5,000			5,000			5,000			5,000			30			30
Asset Management		6,500			7,000			7,000			7,000			7,000			(7	)		(7	)
Corporate/Private Equity		52,094			63,525			56,468			47,865			43,493			(18	)		20
TOTAL AVERAGE EQUITY	$	156,094		$	156,525		$	149,468		$	140,865		$	136,493			—			14
RETURN ON EQUITY (b)
Investment Bank		25	%		23	%		23	%		18	%		20	%
Retail Financial Services		(2	)		(6	)		—			—			8
Card Services		(8	)		(8	)		(19	)		(18	)		(15	)
Commercial Banking		20			11			17			18			17
Treasury & Securities Services		17			19			24			30			25
Asset Management		24			24			24			20			13

(a)

In the second quarter of 2009, Investment Bank (“IB”) began reporting credit reimbursement from TSS as a component of total net revenue, whereas TSS continued to report its credit reimbursement to IB as a separate line item on its income statement (not part of total net revenue). Corporate/Private Equity includes an adjustment to offset IB’s inclusion of the credit reimbursement in total net revenue. Prior periods have been revised for IB and Corporate/Private Equity to reflect this presentation.

(b)

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. Effective January 1, 2010, the Firm enhanced its line of business equity framework to better align equity assigned to each line of business with the anticipated changes in the business, as well as changes in the competitive and regulatory landscape.

Page 7

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,446		$	1,892		$	1,658		$	2,239		$	1,380			(24	)%		5	%
Principal transactions		3,931			84			2,714			1,841			3,515			NM			12
Lending- and deposit-related fees		202			174			185			167			138			16			46
Asset management, administration and commissions		563			608			633			717			692			(7	)		(19	)
All other income (a)		49			(14	)		63			(108	)		(56	)		NM			NM
Noninterest revenue		6,191			2,744			5,253			4,856			5,669			126			9
Net interest income		2,128			2,185			2,255			2,445			2,702			(3	)		(21	)
TOTAL NET REVENUE (b)		8,319			4,929			7,508			7,301			8,371			69			(1	)
Provision for credit losses		(462	)		(181	)		379			871			1,210			(155	)		NM
NONINTEREST EXPENSE
Compensation expense		2,928			549			2,778			2,677			3,330			433			(12	)
Noncompensation expense		1,910			1,737			1,496			1,390			1,444			10			32
TOTAL NONINTEREST EXPENSE		4,838			2,286			4,274			4,067			4,774			112			1
Income before income tax expense		3,943			2,824			2,855			2,363			2,387			40			65
Income tax expense		1,472			923			934			892			781			59			88
NET INCOME	$	2,471		$	1,901		$	1,921		$	1,471		$	1,606			30			54
FINANCIAL RATIOS
ROE		25	%		23	%		23	%		18	%		20	%
ROA		1.48			1.12			1.12			0.83			0.89
Overhead ratio		58			46			57			56			57
Compensation expense as a percent of total net revenue		35			11			37			37			40
REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	305		$	611		$	384		$	393		$	479			(50	)		(36	)
Equity underwriting		413			549			681			1,103			308			(25	)		34
Debt underwriting		728			732			593			743			593			(1	)		23
Total investment banking fees		1,446			1,892			1,658			2,239			1,380			(24	)		5
Fixed income markets		5,464			2,735			5,011			4,929			4,889			100			12
Equity markets		1,462			971			941			708			1,773			51			(18	)
Credit portfolio (a)		(53	)		(669	)		(102	)		(575	)		329			92			NM
Total net revenue	$	8,319		$	4,929		$	7,508		$	7,301		$	8,371			69			(1	)
REVENUE BY REGION (a)
Americas	$	4,562		$	2,872		$	3,850		$	4,118		$	4,316			59			6
Europe/Middle East/Africa		2,814			1,502			2,912			2,303			3,073			87			(8	)
Asia/Pacific		943			555			746			880			982			70			(4	)
Total net revenue	$	8,319		$	4,929		$	7,508		$	7,301		$	8,371			69			(1	)

(a)

Treasury & Securities Services (“TSS”) was charged a credit reimbursement related to certain exposures managed within the Investment Bank (“IB”) credit portfolio on behalf of clients shared with TSS. IB recognizes this credit reimbursement in its credit portfolio business in all other income.

(b)

Total net revenue included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as tax-exempt income from municipal bond investments of $403 million, $357 million, $371 million, $334 million, and $365 million for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009, and March 31, 2009, respectively.

Page 8

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
SELECTED BALANCE SHEET DATA (Period-end)
Loans (a):
Loans retained (b)	$	53,010		$	45,544		$	55,703		$	64,500		$	66,506			16	%		(20	)%
Loans held-for-sale & loans at fair value		3,594			3,567			4,582			6,814			10,993			1			(67	)
Total loans		56,604			49,111			60,285			71,314			77,499			15			(27	)
Equity		40,000			33,000			33,000			33,000			33,000			21			21
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	676,122		$	674,241		$	678,796		$	710,825		$	733,166			—			(8	)
Trading assets — debt and equity instruments		284,085			285,363			270,695			265,336			272,998			—			4
Trading assets — derivative receivables		66,151			72,640			86,651			100,536			125,021			(9	)		(47	)
Loans (a):
Loans retained (b)		58,501			51,573			61,269			68,224			70,041			13			(16	)
Loans held-for-sale & loans at fair value		3,150			4,158			4,981			8,934			12,402			(24	)		(75	)
Total loans		61,651			55,731			66,250			77,158			82,443			11			(25	)
Adjusted assets (c)		506,635			519,403			515,718			531,632			589,163			(2	)		(14	)
Equity		40,000			33,000			33,000			33,000			33,000			21			21
Headcount		24,977			24,654			24,828			25,783			26,142			1			(4	)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	697		$	685		$	750		$	433		$	36			2			NM
Nonperforming assets:
Nonperforming loans:
Nonperforming loans retained (b)		2,459			3,196			4,782			3,407			1,738			(23	)		41
Nonperforming loans held-for-sale and loans at fair value		282			308			128			112			57			(8	)		395
Total nonperforming loans		2,741			3,504			4,910			3,519			1,795			(22	)		53
Derivative receivables		363			529			624			704			1,010			(31	)		(64	)
Assets acquired in loan satisfactions		185			203			248			311			236			(9	)		(22	)
Total nonperforming assets		3,289			4,236			5,782			4,534			3,041			(22	)		8
Allowance for credit losses:
Allowance for loan losses		2,601			3,756			4,703			5,101			4,682			(31	)		(44	)
Allowance for lending-related commitments		482			485			401			351			295			(1	)		63
Total allowance for credit losses		3,083			4,241			5,104			5,452			4,977			(27	)		(38	)
Net charge-off rate (b)		4.83	%		5.27	%		4.86	%		2.55	%		0.21	%
Allow. for loan losses to period-end loans retained (b)		4.91			8.25			8.44			7.91			7.04
Allow. for loan losses to average loans retained (b)		4.45			7.28			7.68			7.48			6.68
Allow. for loan losses to nonperforming loans retained (d)		106			118			98			150			269
Nonperforming loans to total period-end loans		4.84			7.13			8.14			4.93			2.32
Nonperforming loans to total average loans		4.45			6.29			7.41			4.56			2.18

(a)	Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its Firm-administered multi-seller conduits. As a result, $15.1 billion of loans were recorded on the Consolidated Balance Sheet.
(b)	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.
(c)	Adjusted assets, a non-GAAP financial measure, equals total assets minus (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased; (2) assets of variable interest entities (“VIEs”); (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 IB’s asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. 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.
(d)	Nonperforming loans excluded distressed loans held-for-sale that were purchased as part of IB’s proprietary activities.

Page 9

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR — 95% CONFIDENCE LEVEL
Trading activities:
Fixed income	$	69		$	121		$	182		$	179		$	158			(43	)%		(56	)%
Foreign exchange		13			14			19			16			23			(7	)		(43	)
Equities		24			21			19			50			97			14			(75	)
Commodities and other		15			17			23			22			20			(12	)		(25	)
Diversification (a)		(49	)		(62	)		(97	)		(97	)		(108	)		21			55
Total trading VaR (b)		72			111			146			170			190			(35	)		(62	)
Credit portfolio VaR (c)		19			24			29			68			86			(21	)		(78	)
Diversification (a)		(9	)		(11	)		(32	)		(60	)		(63	)		18			86
Total trading and credit portfolio VaR	$	82		$	124		$	143		$	178		$	213			(34	)		(62	)

	YTD March 31, 2010					Full Year 2009
	Market Share			Rankings		Market Share			Rankings
MARKET SHARES AND RANKINGS (d)
Global Investment Banking Fees (e)		8	%		#1		9	%		#1
Global debt, equity and equity-related		7	%		#1		9	%		#1
Global syndicated loans		9	%		#1		8	%		#1
Global long-term debt (f)		7	%		#3		8	%		#1
Global equity and equity-related (g)		9	%		#1		12	%		#1
Global announced M&A (h)		18	%		#5		25	%		#3
U.S. debt, equity and equity-related		12	%		#2		15	%		#1
U.S. syndicated loans		21	%		#1		22	%		#1
U.S. long-term debt (f)		11	%		#2		14	%		#1
U.S. equity and equity-related (g)		20	%		#1		16	%		#2
U.S. announced M&A (h)		29	%		#3		37	%		#2

(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, as well as syndicated lending facilities that the Firm intends to distribute; however, particular risk parameters of certain products are not fully captured, such as correlation risk. IB Trading VaR does not include the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm.
(c)	Credit portfolio VaR includes the 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)	Source: Dealogic. Global Investment Banking fees reflects fee rank and share. Remainder of rankings reflect volume rank and share.
(e)	Global IB fees exclude money market, short term debt and shelf deals.
(f)	Long-term debt tables include investment grade, high yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities and mortgage-backed securities; exclude money market, short term debt, and U.S.municipal securities.
(g)	Equity and equity-related rankings include rights offerings and Chinese A-Shares.
(h)	Global announced M&A is based upon value at announcement; 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%. M&A 1Q10 and 2009 reflects the removal of any withdrawn transactions. 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
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	841		$	972		$	1,046		$	1,003		$	948			(13	)%		(11	)%
Asset management, administration and commissions		452			406			408			425			435			11			4
Mortgage fees and related income		655			481			873			807			1,633			36			(60	)
Credit card income		450			441			416			411			367			2			23
Other income		354			299			321			294			214			18			65
Noninterest revenue		2,752			2,599			3,064			2,940			3,597			6			(23	)
Net interest income		5,024			5,070			5,154			5,030			5,238			(1	)		(4	)
TOTAL NET REVENUE		7,776			7,669			8,218			7,970			8,835			1			(12	)
Provision for credit losses		3,733			4,229			3,988			3,846			3,877			(12	)		(4	)
NONINTEREST EXPENSE
Compensation expense		1,770			1,722			1,728			1,631			1,631			3			9
Noncompensation expense		2,402			2,499			2,385			2,365			2,457			(4	)		(2	)
Amortization of intangibles		70			81			83			83			83			(14	)		(16	)
TOTAL NONINTEREST EXPENSE		4,242			4,302			4,196			4,079			4,171			(1	)		2
Income/(loss) before income tax expense (benefit)		(199	)		(862	)		34			45			787			77			NM
Income tax expense/(benefit)		(68	)		(463	)		27			30			313			85			NM
NET INCOME/(LOSS)	$	(131	)	$	(399	)	$	7		$	15		$	474			67			NM
FINANCIAL RATIOS
ROE		(2	)%		(6	)%		—	%		—	%		8	%
Overhead ratio		55			56			51			51			47
Overhead ratio excluding core deposit intangibles (a)		54			55			50			50			46
SELECTED BALANCE SHEET DATA (Period-end)
Assets	$	382,475		$	387,269		$	397,673		$	399,916		$	412,505			(1	)		(7	)
Loans:
Loans retained		339,002			340,332			346,765			353,934			364,220			—			(7	)
Loans held-for-sale and loans at fair value (b)		11,296			14,612			14,303			13,192			12,529			(23	)		(10	)
Total loans		350,298			354,944			361,068			367,126			376,749			(1	)		(7	)
Deposits		362,470			357,463			361,046			371,241			380,140			1			(5	)
Equity		28,000			25,000			25,000			25,000			25,000			12			12
SELECTED BALANCE SHEET DATA (Average)
Assets	$	393,867		$	395,045		$	401,620		$	410,228		$	423,472			—			(7	)
Loans:
Loans retained		342,997			343,411			349,762			359,372			366,925			—			(7	)
Loans held-for-sale and loans at fair value (b)		17,055			17,670			19,025			19,043			16,526			(3	)		3
Total loans		360,052			361,081			368,787			378,415			383,451			—			(6	)
Deposits		356,934			356,464			366,944			377,259			370,278			—			(4	)
Equity		28,000			25,000			25,000			25,000			25,000			12			12
Headcount		112,616			108,971			106,951			103,733			100,677			3			12

(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 prior business combination transactions of $70 million, $80 million, $83 million, $82 million and $83 million for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, 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 $8.4 billion, $12.5 billion, $12.8 billion, $11.3 billion and $8.9 billion at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively. Average balances of these loans totaled $14.2 billion, $16.0 billion, $17.7 billion, $16.2 billion and $13.4 billion for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively.

Page 11

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	2,438		$	2,738		$	2,550		$	2,649		$	2,176			(11	)%		12	%
Nonperforming loans:
Nonperforming loans retained		10,769			10,611			10,091			8,792			7,714			1			40
Nonperforming loans held-for-sale and loans at fair value		217			234			242			203			264			(7	)		(18	)
Total nonperforming loans (a) (b) (c)		10,986			10,845			10,333			8,995			7,978			1			38
Nonperforming assets (a) (b) (c)		12,191			12,098			11,883			10,554			9,846			1			24
Allowance for loan losses		16,200			14,776			13,286			11,832			10,619			10			53
Net charge-off rate (e)		2.88	%		3.16	%		2.89	%		2.96	%		2.41	%
Net charge-off rate excluding purchased credit-impaired loans (d) (e)		3.76			4.16			3.81			3.89			3.16
Allowance for loan losses to ending loans retained (e)		4.78			4.34			3.83			3.34			2.92
Allowance for loan losses to ending loans retained excluding purchased credit-impaired loans (d) (e)		5.16			5.09			4.63			4.41			3.84
Allowance for loan losses to nonperforming loans retained (a) (d) (e)		124			124			121			135			138
Nonperforming loans to total loans		3.14			3.06			2.86			2.45			2.12
Nonperforming loans to total loans excluding purchased credit-impaired loans (a)		4.05			3.96			3.72			3.19			2.76

(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 $10.5 billion, $9.0 billion, $7.0 billion, $4.2 billion and $4.2 billion at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively; (2) real estate owned insured by U.S. government agencies of $707 million, $579 million, $579 million, $508 million and $433 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, 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 $660 million, $542 million, $511 million, $473 million and $433 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, 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 $2.8 billion, $1.6 billion and $1.1 billion was recorded for these loans at March 31, 2010, December 31, 2009 and September 30, 2009, respectively, which has also been excluded from applicable ratios. No allowance for loan losses was recorded at June 30, 2009 and March 31, 2009. 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.

Page 12

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
RETAIL BANKING
Noninterest revenue	$	1,702		$	1,804		$	1,844		$	1,803		$	1,718			(6	)%		(1	)%
Net interest income		2,635			2,716			2,732			2,719			2,614			(3	)		1
Total net revenue		4,337			4,520			4,576			4,522			4,332			(4	)		—
Provision for credit losses		191			248			208			361			325			(23	)		(41	)
Noninterest expense		2,577			2,574			2,646			2,557			2,580			—			—
Income before income tax expense		1,569			1,698			1,722			1,604			1,427			(8	)		10
Net income	$	898		$	1,027		$	1,043		$	970		$	863			(13	)		4
Overhead ratio		59	%		57	%		58	%		57	%		60	%
Overhead ratio excluding core deposit intangibles (a)		58			55			56			55			58
BUSINESS METRICS (in billions)
Business banking origination volume	$	0.9		$	0.7		$	0.5		$	0.6		$	0.5			35			96
End-of-period loans owned		16.8			17.0			17.4			17.8			18.2			(1	)		(8	)
End-of-period deposits:
Checking	$	123.8		$	121.9		$	115.5		$	114.1		$	113.9			2			9
Savings		163.4			153.4			151.6			150.4			152.4			7			7
Time and other		53.2			58.0			66.6			78.9			86.5			(8	)		(38	)
Total end-of-period deposits		340.4			333.3			333.7			343.4			352.8			2			(4	)
Average loans owned	$	16.9		$	17.2		$	17.7		$	18.0		$	18.4			(2	)		(8	)
Average deposits:
Checking	$	119.7		$	116.4		$	114.0		$	114.2		$	109.4			3			9
Savings		158.6			153.1			151.2			151.2			148.2			4			7
Time and other		55.6			60.3			74.4			82.7			88.2			(8	)		(37	)
Total average deposits		333.9			329.8			339.6			348.1			345.8			1			(3	)
Deposit margin		3.02	%		3.06	%		2.99	%		2.92	%		2.85	%
Average assets	$	28.9		$	28.2		$	28.1		$	29.1		$	30.2			2			(4	)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	191		$	248		$	208		$	211		$	175			(23	)		9
Net charge-off rate		4.58	%		5.72	%		4.66	%		4.70	%		3.86	%
Nonperforming assets	$	872		$	839		$	816		$	686		$	579			4			51
RETAIL BRANCH BUSINESS METRICS
Investment sales volume	$	5,956		$	5,851		$	6,243		$	5,292		$	4,398			2			35
Number of:
Branches		5,155			5,154			5,126			5,203			5,186			—			(1	)
ATMs		15,549			15,406			15,038			14,144			14,159			1			10
Personal bankers		19,003			17,991			16,941			15,959			15,544			6			22
Sales specialists		6,315			5,912			5,530			5,485			5,454			7			16
Active online customers (in thousands)		16,208			15,424			13,852			13,930			12,882			5			26
Checking accounts (in thousands)		25,830			25,712			25,546			25,252			24,984			—			3

(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 prior business combination transactions of $70 million, $80 million, $83 million, $82 million and $83 million for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively.

Page 13

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
MORTGAGE BANKING & OTHER CONSUMER LENDING
Noninterest revenue (a)	$	1,018		$	801		$	1,201		$	1,134		$	1,921			27	%		(47	)%
Net interest income		893			802			834			721			808			11			11
Total net revenue		1,911			1,603			2,035			1,855			2,729			19			(30	)
Provision for credit losses		217			242			222			366			405			(10	)		(46	)
Noninterest expense		1,246			1,163			1,139			1,105			1,137			7			10
Income before income tax expense		448			198			674			384			1,187			126			(62	)
Net income (a)	$	257		$	266		$	412		$	235		$	730			(3	)		(65	)
Overhead ratio		65	%		73	%		56	%		60	%		42	%
BUSINESS METRICS (in billions)
End-of-period loans owned:
Auto loans	$	47.4		$	46.0		$	44.3		$	42.9		$	43.1			3			10
Mortgage (b)		13.7			11.9			10.1			8.9			8.8			15			56
Student loans and other		17.4			15.8			15.6			15.7			17.4			10			—
Total end-of-period loans owned		78.5			73.7			70.0			67.5			69.3			7			13
Average loans owned:
Auto loans	$	46.9		$	45.3		$	43.3		$	43.1		$	42.5			4			10
Mortgage (b)		12.5			10.6			8.9			8.4			7.4			18			69
Student loans and other		18.4			15.6			15.3			16.8			17.6			18			5
Total average loans owned (c)		77.8			71.5			67.5			68.3			67.5			9			15
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Auto loans	$	102		$	148		$	159		$	146		$	174			(31	)		(41	)
Mortgage		6			—			7			2			5		NM				20
Student loans and other		64			92			60			101			34			(30	)		88
Total net charge-offs	$	172		$	240		$	226		$	249		$	213			(28	)		(19	)
Net charge-off rate:
Auto loans		0.88	%		1.30	%		1.46	%		1.36	%		1.66	%
Mortgage		0.20			—			0.32			0.10			0.29
Student loans and other		1.64			2.59			1.66			2.79			0.92
Total net charge-off rate (c)		0.93			1.36			1.35			1.52			1.34
30+ day delinquency rate (d) (e)		1.47	%		1.75	%		1.76	%		1.80	%		1.56	%
Nonperforming assets (f)	$	1,006		$	912		$	872		$	783		$	830			10			21

(a)	Losses related to the repurchase of previously-sold loans are recorded as a reduction of production revenue. These losses totaled $432 million, $672 million, $465 million, $255 million and $220 million for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively. The losses resulted in a negative impact on net income of $252 million, $413 million, $286 million, $157 million and $135 million for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively.
(b)	Predominantly represents loans repurchased from Government National Mortgage Association (“GNMA”) pools, which are insured by U.S. government agencies.
(c)	Total average loans owned includes loans held-for-sale of $2.9 billion, $1.7 billion, $1.3 billion, $2.8 billion and $3.1 billion for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively. These amounts are excluded when calculating the net charge-off rate.
(d)	Excludes mortgage loans that are insured by U.S. government agencies of $11.2 billion, $9.7 billion, $7.7 billion, $5.1 billion and $4.9 billion at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively. These amounts are excluded as reimbursement is proceeding normally.
(e)	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 $1.0 billion, $942 million, $903 million, $854 million and $770 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively. These amounts are excluded as reimbursement is proceeding normally.
(f)	Nonperforming loans and assets excludes: (1) mortgage loans insured by U.S. government agencies of $10.5 billion, $9.0 billion, $7.0 billion, $4.2 billion and $4.2 billion at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively; (2) real estate owned insured by U.S. government agencies of $707 million, $579 million, $579 million, $508 million and $433 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, 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 $660 million, $542 million, $511 million, $473 million and $433 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively. These amounts are excluded as reimbursement is proceeding normally.

Page 14

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
MORTGAGE BANKING & OTHER CONSUMER LENDING (continued)
Origination volume:
Mortgage origination volume by channel
Retail	$	11.4		$	12.3		$	13.3		$	14.7		$	13.6			(7	)%		(16	)%
Wholesale (a)		0.4			0.6			0.7			0.7			1.6			(33	)		(75	)
Correspondent (a)		16.0			20.0			21.1			21.9			18.0			(20	)		(11	)
CNT (negotiated transactions)		3.9			1.9			2.0			3.8			4.5			105			(13	)
Total mortgage origination volume		31.7			34.8			37.1			41.1			37.7			(9	)		(16	)
Student loans		1.6			0.6			1.5			0.4			1.7			167			(6	)
Auto		6.3			5.9			6.9			5.3			5.6			7			13
Application volume:
Mortgage application volume by channel
Retail	$	20.3		$	17.4		$	17.8		$	23.0		$	32.7			17			(38	)
Wholesale (a)		0.8			0.7			1.1			1.3			1.8			14			(56	)
Correspondent (a)		18.2			25.3			26.6			29.7			29.2			(28	)		(38	)
Total mortgage application volume		39.3			43.4			45.5			54.0			63.7			(9	)		(38	)
Average mortgage loans held-for-sale and loans at fair value (b)		14.5			16.2			18.0			16.7			14.0			(10	)		4
Average assets		124.8			119.5			115.2			111.6			113.4			4			10
Third-party mortgage loans serviced (ending)		1,075.0			1,082.1			1,098.9			1,117.5			1,148.8			(1	)		(6	)
Third-party mortgage loans serviced (average)		1,076.4			1,088.8			1,104.4			1,128.1			1,155.0			(1	)		(7	)
MSR net carrying value (ending)		15.5			15.5			13.6			14.6			10.6			—			46
Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending)		1.44	%		1.43	%		1.24	%		1.31	%		0.92	%
SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions)
Production revenue	$	1		$	(192	)	$	(70	)	$	284		$	481		NM				(100	)
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue		1,107			1,221			1,220			1,279			1,222			(9	)		(9	)
Other changes in MSR asset fair value		(605	)		(657	)		(712	)		(837	)		(1,073	)		8			44
Total operating revenue		502			564			508			442			149			(11	)		237
Risk management:
Changes in MSR asset fair value due to inputs or assumptions in model		(96	)		1,762			(1,099	)		3,831			1,310		NM			NM
Derivative valuation adjustments and other		248			(1,653	)		1,534			(3,750	)		(307	)	NM			NM
Total risk management		152			109			435			81			1,003			39			(85	)
Total net mortgage servicing revenue		654			673			943			523			1,152			(3	)		(43	)
Mortgage fees and related income		655			481			873			807			1,633			36			(60	)
Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average)		0.42	%		0.44	%		0.44	%		0.45	%		0.43	%
MSR revenue multiple (c)		3.43x			3.25x			2.82x			2.91x			2.14x

(a)	Includes rural housing loans sourced through brokers and correspondents, which are underwritten under U.S. Department of Agriculture guidelines. Prior period amounts have been revised to conform with the current period presentation.
(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 $14.2 billion, $16.0 billion, $17.7 billion, $16.2 billion and $13.4 billion for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, 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 15

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	32		$	(6	)	$	19		$	3		$	(42	)	NM		%	NM		%
Net interest income		1,496			1,552			1,588			1,590			1,816			(4	)		(18	)
Total net revenue		1,528			1,546			1,607			1,593			1,774			(1	)		(14	)
Provision for credit losses		3,325			3,739			3,558			3,119			3,147			(11	)		6
Noninterest expense		419			565			411			417			454			(26	)		(8	)
Income/(loss) before income tax expense/(benefit)		(2,216	)		(2,758	)		(2,362	)		(1,943	)		(1,827	)		20			(21	)
Net income/(loss)	$	(1,286	)	$	(1,692	)	$	(1,448	)	$	(1,190	)	$	(1,119	)		24			(15	)
Overhead ratio		27	%		37	%		26	%		26	%		26	%
BUSINESS METRICS (in billions)
LOANS EXCLUDING PURCHASED CREDIT-IMPAIRED LOANS (a)
End-of-period loans owned:
Home equity	$	97.7		$	101.4		$	104.8		$	108.2		$	111.7			(4	)		(13	)
Prime mortgage		46.8			47.5			50.0			53.2			56.6			(1	)		(17	)
Subprime mortgage		13.2			12.5			13.3			13.8			14.6			6			(10	)
Option ARMs		8.6			8.5			8.9			9.0			9.0			1			(4	)
Other		1.0			0.7			0.7			0.9			0.9			43			11
Total end-of-period loans owned		167.3			170.6			177.7			185.1			192.8			(2	)		(13	)
Average loans owned:
Home equity	$	99.5		$	103.3		$	106.6		$	110.1		$	113.4			(4	)		(12	)
Prime mortgage		47.9			48.8			51.7			54.9			58.0			(2	)		(17	)
Subprime mortgage		13.8			12.8			13.6			14.3			14.9			8			(7	)
Option ARMs		8.7			8.7			8.9			9.1			8.8			—			(1	)
Other		1.1			0.7			0.8			0.9			0.9			57			22
Total average loans owned		171.0			174.3			181.6			189.3			196.0			(2	)		(13	)
PURCHASED CREDIT-IMPAIRED LOANS (a)
End-of-period loans owned:
Home equity	$	26.0		$	26.5		$	27.1		$	27.7		$	28.4			(2	)		(8	)
Prime mortgage		19.2			19.7			20.2			20.8			21.4			(3	)		(10	)
Subprime mortgage		5.8			6.0			6.1			6.4			6.6			(3	)		(12	)
Option ARMs		28.3			29.0			29.8			30.5			31.2			(2	)		(9	)
Total end-of-period loans owned		79.3			81.2			83.2			85.4			87.6			(2	)		(9	)
Average loans owned:
Home equity	$	26.2		$	26.7		$	27.4		$	28.0		$	28.4			(2	)		(8	)
Prime mortgage		19.5			20.0			20.5			21.0			21.6			(3	)		(10	)
Subprime mortgage		5.9			6.1			6.2			6.5			6.7			(3	)		(12	)
Option ARMs		28.6			29.3			30.2			31.0			31.4			(2	)		(9	)
Total average loans owned		80.2			82.1			84.3			86.5			88.1			(2	)		(9	)
TOTAL REAL ESTATE PORTFOLIOS
End-of-period loans owned:
Home equity	$	123.7		$	127.9		$	131.9		$	135.9		$	140.1			(3	)		(12	)
Prime mortgage		66.0			67.2			70.2			74.0			78.0			(2	)		(15	)
Subprime mortgage		19.0			18.5			19.4			20.2			21.2			3			(10	)
Option ARMs		36.9			37.5			38.7			39.5			40.2			(2	)		(8	)
Other		1.0			0.7			0.7			0.9			0.9			43			11
Total end-of-period loans owned		246.6			251.8			260.9			270.5			280.4			(2	)		(12	)
Average loans owned:
Home equity	$	125.7		$	130.0		$	134.0		$	138.1		$	141.8			(3	)		(11	)
Prime mortgage		67.4			68.8			72.2			75.9			79.6			(2	)		(15	)
Subprime mortgage		19.7			18.9			19.8			20.8			21.6			4			(9	)
Option ARMs		37.3			38.0			39.1			40.1			40.2			(2	)		(7	)
Other		1.1			0.7			0.8			0.9			0.9			57			22
Total average loans owned		251.2			256.4			265.9			275.8			284.1			(2	)		(12	)
Average assets		240.2			247.3			258.3			269.5			279.9			(3	)		(14	)
Home equity origination volume		0.3			0.4			0.5			0.6			0.9			(25	)		(67	)

(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 lives of the loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due.

Page 16

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
REAL ESTATE PORTFOLIOS (continued) CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding purchased credit-impaired loans(a)
Home equity	$	1,126		$	1,177		$	1,142		$	1,265		$	1,098			(4	)%		3	%
Prime mortgage		453			568			518			479			307			(20	)		48
Subprime mortgage		457			452			422			410			364			1			26
Option ARMs		23			29			15			15			4			(21	)		475
Other		16			24			19			20			15			(33	)		7
Total net charge-offs		2,075			2,250			2,116			2,189			1,788			(8	)		16
Net charge-off rate excluding purchased credit-impaired loans(a)
Home equity		4.59	%		4.52	%		4.25	%		4.61	%		3.93	%
Prime mortgage		3.84			4.62			3.98			3.50			2.15
Subprime mortgage		13.43			14.01			12.31			11.50			9.91
Option ARMs		1.07			1.32			0.67			0.66			0.18
Other		5.90			13.60			9.42			8.91			6.76
Total net charge-off rate excluding purchased credit-impaired loans		4.92			5.12			4.62			4.64			3.70
Net charge-off rate — reported
Home equity		3.63			3.59			3.38			3.67			3.14
Prime mortgage		2.73			3.28			2.85			2.53			1.56
Subprime mortgage		9.41			9.49			8.46			7.91			6.83
Option ARMs		0.25			0.30			0.15			0.15			0.04
Other		5.90			13.60			9.42			8.91			6.76
Total net charge-off rate — reported		3.35			3.48			3.16			3.18			2.55
30+ day delinquency rate excluding purchased credit-impaired loans (b)		7.28			7.73			7.46			6.46			5.87
Allowance for loan losses	$	14,127		$	12,752		$	11,261		$	9,821		$	8,870			11			59
Nonperforming assets (c)		10,313			10,347			10,196			9,085			8,437			—			22
Allowance for loan losses to ending loans retained		5.73	%		5.06	%		4.32	%		3.63	%		3.16	%
Allowance for loan losses to ending loans retained excluding purchased credit-impaired loans (a)		6.76			6.55			5.72			5.31			4.60

(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 $2.8 billion, $1.6 billion and $1.1 billion was recorded for these loans at March 31, 2010, December 31, 2009 and September 30, 2009, respectively, which has also been excluded from applicable ratios. No allowance for losses was recorded at June 30, 2009 and March 31, 2009. To date, no charge-offs have been recorded for these loans.
(b)	The delinquency rate for purchased credit-impaired loans was 28.49%, 27.79%, 25.56%, 23.37% and 21.36% at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively.
(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.

Page 17

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
INCOME STATEMENT (a)
REVENUE
Credit card income	$	813		$	931		$	916		$	921		$	844			(13	)%		(4	)%
All other income		(55	)		(46	)		(85	)		(364	)		(197	)		(20	)		72
Noninterest revenue		758			885			831			557			647			(14	)		17
Net interest income		3,689			4,263			4,328			4,311			4,482			(13	)		(18	)
TOTAL NET REVENUE		4,447			5,148			5,159			4,868			5,129			(14	)		(13	)
Provision for credit losses		3,512			4,239			4,967			4,603			4,653			(17	)		(25	)
NONINTEREST EXPENSE
Compensation expense		330			336			354			329			357			(2	)		(8	)
Noncompensation expense		949			938			829			873			850			1			12
Amortization of intangibles		123			122			123			131			139			1			(12	)
TOTAL NONINTEREST EXPENSE		1,402			1,396			1,306			1,333			1,346			—			4
Income/(loss) before income tax expense/(benefit)		(467	)		(487	)		(1,114	)		(1,068	)		(870	)		4			46
Income tax expense/(benefit)		(164	)		(181	)		(414	)		(396	)		(323	)		9			49
NET INCOME/(LOSS)	$	(303	)	$	(306	)	$	(700	)	$	(672	)	$	(547	)		1			45
Memo: Net securitization income/(loss)		N/A		$	17		$	(43	)	$	(268	)	$	(180	)	NM			NM
FINANCIAL RATIOS (a)
ROE		(8	)%		(8	)%		(19	)%		(18	)%		(15	)%
Overhead ratio		32			27			25			27			26
Percentage of average outstandings:
Net interest income		9.60			10.36			10.15			9.93			9.91
Provision for credit losses		9.14			10.30			11.65			10.60			10.29
Noninterest revenue		1.97			2.15			1.95			1.28			1.43
Risk adjusted margin (b)		2.43			2.21			0.45			0.61			1.05
Noninterest expense		3.65			3.39			3.06			3.07			2.98
Pretax income/(loss) (ROO) (c)		(1.22	)		(1.18	)		(2.61	)		(2.46	)		(1.92	)
Net income/(loss)		(0.79	)		(0.74	)		(1.64	)		(1.55	)		(1.21	)
BUSINESS METRICS
Sales volume (in billions)	$	69.4		$	78.8		$	74.7		$	74.0		$	66.6			(12	)		4
New accounts opened (in millions)		2.5			3.2			2.4			2.4			2.2			(22	)		14
Open accounts (in millions)		88.9			93.3			93.6			100.3			105.7			(5	)		(16	)
Merchant acquiring business
Bank card volume (in billions)	$	108.0		$	110.4		$	103.5		$	101.4		$	94.4			(2	)		14
Total transactions (in billions)		4.7			4.9			4.5			4.5			4.1			(4	)		15

(a)	Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts. As a result, $84.7 billion of loans and $7.4 billion of allowance for loan losses were recorded on the Consolidated Balance Sheet, while $16.7 billion of retained securitization interests reported at December 31, 2009 were eliminated upon consolidation. Financial information presented for periods ended after January 1, 2010 are comparable with those previously presented on a managed basis. For further discussion, see page 38 of this Financial Supplement.
(b)	Represents total net revenue less provision for credit losses.
(c)	Pretax return on average managed outstandings.
	N/A: Not applicable

Page 18

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
SELECTED BALANCE SHEET DATA (Period-end)
Loans:
Loans on balance sheets	$	149,260		$	78,786		$	78,215		$	85,736		$	90,911			89	%		64	%
Securitized and unconsolidated loans (a)		N/A			84,626			87,028			85,790			85,220		NM			NM
Total loans	$	149,260		$	163,412		$	165,243		$	171,526		$	176,131			(9	)		(15	)
Equity	$	15,000		$	15,000		$	15,000		$	15,000		$	15,000			—			—
SELECTED BALANCE SHEET DATA (Average)
Managed assets	$	156,968		$	184,535		$	192,141		$	193,310		$	201,200			(15	)		(22	)
Loans:
Loans on balance sheets	$	155,790		$	77,759		$	83,146		$	89,692		$	97,783			100			59
Securitized and unconsolidated loans (a)		N/A			85,452			86,017			84,417			85,619		NM			NM
Total average loans	$	155,790		$	163,211		$	169,163		$	174,109		$	183,402			(5	)		(15	)
Equity	$	15,000		$	15,000		$	15,000		$	15,000		$	15,000			—			—
Headcount		22,478			22,676			22,850			22,897			23,759			(1	)		(5	)
CREDIT QUALITY STATISTICS (a)
Net charge-offs	$	4,512		$	3,839		$	4,392		$	4,353		$	3,493			18			29
Net charge-off rate (b)		11.75	%		9.33	%		10.30	%		10.03	%		7.72	%
Delinquency rates
30+ day (b)		5.62	%		6.28	%		5.99	%		5.86	%		6.16	%
90+ day (b)		3.15			3.59			2.76			3.25			3.22
Allowance for loan losses (c)	$	16,032		$	9,672		$	9,297		$	8,839		$	8,849			66			81
Allowance for loan losses to period-end loans (c) (d)		10.74	%		12.28	%		11.89	%		10.31	%		9.73	%
KEY STATS — WASHINGTON MUTUAL ONLY
Loans	$	17,204		$	19,653		$	21,163		$	23,093		$	25,908			(12	)		(34	)
Average loans		18,607			20,377			22,287			24,418			27,578			(9	)		(33	)
Net interest income (e)		15.06	%		17.12	%		17.04	%		17.90	%		16.45	%
Risk adjusted margin (e) (f)		2.47			(0.66	)		(4.45	)		(3.89	)		4.42
Net charge-off rate (g)		24.14			20.49			21.94			19.17			14.57
30+ day delinquency rate (g)		10.49			12.72			12.44			11.98			10.89
90+ day delinquency rate (g)		6.32			7.76			6.21			6.85			5.79
KEY STATS — EXCLUDING WASHINGTON MUTUAL
Loans	$	132,056		$	143,759		$	144,080		$	148,433		$	150,223			(8	)		(12	)
Average loans		137,183			142,834			146,876			149,691			155,824			(4	)		(12	)
Net interest income (e)		8.86	%		9.40	%		9.10	%		8.63	%		8.75	%
Risk adjusted margin (e) (f)		2.43			2.62			1.19			1.34			0.46
Net charge-off rate		10.54			8.64			9.41			8.97			6.86
30+ day delinquency rate		4.99			5.52			5.38			5.27			5.34
90+ day delinquency rate		2.74			3.13			2.48			2.90			2.78

(a)	Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts. As a result, $84.7 billion of loans and $7.4 billion of allowance for loan losses were recorded on the Consolidated Balance Sheet, while $16.7 billion of retained securitization interests reported at December 31, 2009 were eliminated upon consolidation. Financial information presented for periods ended after January 1, 2010 are comparable with those previously presented on a managed basis. For further discussion, see page 38 of this Financial Supplement.
(b)	Results reflect the impact of purchase accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust. Delinquency rates for March 31, 2010 are not impacted.
(c)	Based on loans on balance sheets.
(d)	Includes $1.0 billion, $3.0 billion and $5.0 billion of loans at December 31, 2009, September 30, 2009 and June 30, 2009, respectively, held by the Washington Mutual Master Trust, which were consolidated onto the Card Services balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of December 31, 2009, September 30, 2009 and June 30, 2009. Excluding these loans, the allowance for loan losses to period-end loans would have been 12.43%, 12.36% and 10.95%, respectively.
(e)	As a percentage of average managed outstandings.
(f)	Represents total net revenue less provision for credit losses.
(g)	Excludes the impact of purchase accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust. Delinquency rates for March 31, 2010 are not impacted.
	N/A: Not applicable.

Page 19

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
INCOME STATEMENT DATA
Credit card income
Reported	$	813		$	1,306		$	1,201		$	1,215		$	1,384			(38	)%		(41	)%
Securitization adjustments (a)		N/A			(375	)		(285	)		(294	)		(540	)	NM			NM
Managed credit card income	$	813		$	931		$	916		$	921		$	844			(13	)		(4	)
Net interest income
Reported	$	3,689		$	2,271		$	2,345		$	2,353		$	2,478			62			49
Securitization adjustments (a)		N/A			1,992			1,983			1,958			2,004		NM			NM
Managed net interest income	$	3,689		$	4,263		$	4,328		$	4,311		$	4,482			(13	)		(18	)
Total net revenue
Reported	$	4,447		$	3,531		$	3,461		$	3,204		$	3,665			26			21
Securitization adjustments (a)		N/A			1,617			1,698			1,664			1,464		NM			NM
Managed total net revenue	$	4,447		$	5,148		$	5,159		$	4,868		$	5,129			(14	)		(13	)
Provision for credit losses
Reported	$	3,512		$	2,622		$	3,269		$	2,939		$	3,189			34			10
Securitization adjustments (a)		N/A			1,617			1,698			1,664			1,464		NM			NM
Managed provision for credit losses	$	3,512		$	4,239		$	4,967		$	4,603		$	4,653			(17	)		(25	)
BALANCE SHEETS — AVERAGE BALANCES
Total average assets
Reported	$	156,968		$	102,748		$	109,362		$	111,722		$	118,418			53			33
Securitization adjustments (a)		N/A			81,787			82,779			81,588			82,782		NM			NM
Managed average assets	$	156,968		$	184,535		$	192,141		$	193,310		$	201,200			(15	)		(22	)
CREDIT QUALITY STATISTICS
Net charge-offs
Reported	$	4,512		$	2,222		$	2,694		$	2,689		$	2,029			103			122
Securitization adjustments (a)		N/A			1,617			1,698			1,664			1,464		NM			NM
Managed net charge-offs	$	4,512		$	3,839		$	4,392		$	4,353		$	3,493			18			29
Net charge-off rates
Reported		11.75	%		11.34	%		12.85	%		12.03	%		8.42	%
Securitized and unconsolidated (a)		N/A			7.51			7.83			7.91			6.93
Managed net charge-off rate		11.75			9.33			10.30			10.03			7.72

(a) Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts. As a result, reported and managed basis are comparable for periods ended after January 1, 2010. For further discussion, see page 38 of this Financial Supplement.

N/A: Not applicable.

Page 20

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	277		$	279		$	269		$	270		$	263			(1	)%		5	%
Asset management, administration and commissions		37			35			35			36			34			6			9
All other income (a)		186			149			170			152			125			25			49
Noninterest revenue		500			463			474			458			422			8			18
Net interest income		916			943			985			995			980			(3	)		(7	)
TOTAL NET REVENUE		1,416			1,406			1,459			1,453			1,402			1			1
Provision for credit losses		214			494			355			312			293			(57	)		(27	)
NONINTEREST EXPENSE
Compensation expense		206			183			196			197			200			13			3
Noncompensation expense		324			351			339			327			342			(8	)		(5	)
Amortization of intangibles		9			9			10			11			11			—			(18	)
TOTAL NONINTEREST EXPENSE		539			543			545			535			553			(1	)		(3	)
Income before income tax expense		663			369			559			606			556			80			19
Income tax expense		273			145			218			238			218			88			25
NET INCOME	$	390		$	224		$	341		$	368		$	338			74			15
Revenue by product:
Lending	$	658		$	639		$	675		$	684		$	665			3			(1	)
Treasury services		638			645			672			679			646			(1	)		(1	)
Investment banking		105			108			99			114			73			(3	)		44
Other		15			14			13			(24	)		18			7			(17	)
Total Commercial Banking revenue	$	1,416		$	1,406		$	1,459		$	1,453		$	1,402			1			1
IB revenue, gross (b)	$	311		$	328		$	301		$	328		$	206			(5	)		51
Revenue by client segment:
Middle Market Banking	$	746		$	760		$	771		$	772		$	752			(2	)		(1	)
Commercial Term Lending		229			191			232			224			228			20			—
Mid-Corporate Banking		263			277			278			305			242			(5	)		9
Real Estate Banking		100			100			121			120			120			—			(17	)
Other		78			78			57			32			60			—			30
Total Commercial Banking revenue	$	1,416		$	1,406		$	1,459		$	1,453		$	1,402			1			1
FINANCIAL RATIOS
ROE		20	%		11	%		17	%		18	%		17	%
Overhead ratio		38			39			37			37			39

(a)	Revenue from investment banking products sold to Commercial Banking (“CB”) clients and commercial card revenue is included in all other income.
(b)	Represents the total revenue related to investment banking products sold to CB clients.

Page 21

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
SELECTED BALANCE SHEET DATA (Period-end)
Loans:
Loans retained	$	95,435		$	97,108		$	101,608		$	105,556		$	110,923			(2	)%		(14	)%
Loans held-for-sale and loans at fair value		294			324			288			296			272			(9	)		8
Total loans		95,729			97,432			101,896			105,852			111,195			(2	)		(14	)
Equity		8,000			8,000			8,000			8,000			8,000			—			—
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	133,013		$	129,948		$	130,316		$	137,283		$	144,298			2			(8	)
Loans:
Loans retained		96,317			99,794			103,752			108,750			113,568			(3	)		(15	)
Loans held-for-sale and loans at fair value		297			386			297			288			297			(23	)		—
Total loans		96,614			100,180			104,049			109,038			113,865			(4	)		(15	)
Liability balances (a)		133,142			122,471			109,293			105,829			114,975			9			16
Equity		8,000			8,000			8,000			8,000			8,000			—			—
Average loans by client segment:
Middle Market Banking	$	33,919		$	34,794		$	36,200		$	38,193		$	40,728			(3	)		(17	)
Commercial Term Lending		36,057			36,507			36,943			36,963			36,814			(1	)		(2	)
Mid-Corporate Banking		12,258			13,510			14,933			17,012			18,416			(9	)		(33	)
Real Estate Banking		10,438			11,133			11,547			12,347			13,264			(6	)		(21	)
Other		3,942			4,236			4,426			4,523			4,643			(7	)		(15	)
Total Commercial Banking loans	$	96,614		$	100,180		$	104,049		$	109,038		$	113,865			(4	)		(15	)
Headcount		4,701			4,151			4,177			4,228			4,545			13			3
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	229		$	483		$	291		$	181		$	134			(53	)		71
Nonperforming loans:
Nonperforming loans retained (b)		2,947			2,764			2,284			2,090			1,531			7			92
Nonperforming loans held-for-sale and loans at fair value		49			37			18			21			—			32		NM
Total nonperforming loans		2,996			2,801			2,302			2,111			1,531			7			96
Nonperforming assets		3,186			2,989			2,461			2,255			1,651			7			93
Allowance for credit losses:
Allowance for loan losses		3,007			3,025			3,063			3,034			2,945			(1	)		2
Allowance for lending-related commitments		359			349			300			272			240			3			50
Total allowance for credit losses		3,366			3,374			3,363			3,306			3,185			—			6
Net charge-off rate		0.96	%		1.92	%		1.11	%		0.67	%		0.48	%
Allowance for loan losses to period-end loans retained		3.15			3.12			3.01			2.87			2.65
Allowance for loan losses to average loans retained		3.12			3.03			2.95			2.79			2.59
Allowance for loan losses to nonperforming loans retained		102			109			134			145			192
Nonperforming loans to total period-end loans		3.13			2.87			2.26			1.99			1.38
Nonperforming loans to total average loans		3.10			2.80			2.21			1.94			1.34

(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)	Allowance for loan losses of $612 million, $581 million, $496 million, $460 million, and $352 million were held against nonperforming loans retained for the periods ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009, and March 31, 2009, respectively.

Page 22

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	311		$	330		$	316		$	314		$	325			(6	)%		(4	)%
Asset management, administration and commissions		659			675			620			710			626			(2	)		5
All other income		176			212			201			221			197			(17	)		(11	)
Noninterest revenue		1,146			1,217			1,137			1,245			1,148			(6	)		—
Net interest income		610			618			651			655			673			(1	)		(9	)
TOTAL NET REVENUE		1,756			1,835			1,788			1,900			1,821			(4	)		(4	)
Provision for credit losses		(39	)		53			13			(5	)		(6	)	NM			NM
Credit reimbursement to IB (a)		(30	)		(30	)		(31	)		(30	)		(30	)		—			—
NONINTEREST EXPENSE
Compensation expense		657			668			629			618			629			(2	)		4
Noncompensation expense		650			704			633			650			671			(8	)		(3	)
Amortization of intangibles		18			19			18			20			19			(5	)		(5	)
TOTAL NONINTEREST EXPENSE		1,325			1,391			1,280			1,288			1,319			(5	)		—
Income before income tax expense		440			361			464			587			478			22			(8	)
Income tax expense		161			124			162			208			170			30			(5	)
NET INCOME	$	279		$	237		$	302		$	379		$	308			18			(9	)
REVENUE BY BUSINESS
Treasury Services	$	882		$	918		$	919		$	934		$	931			(4	)		(5	)
Worldwide Securities Services		874			917			869			966			890			(5	)		(2	)
TOTAL NET REVENUE	$	1,756		$	1,835		$	1,788		$	1,900		$	1,821			(4	)		(4	)
FINANCIAL RATIOS
ROE		17	%		19	%		24	%		30	%		25	%
Overhead ratio		75			76			72			68			72
Pretax margin ratio (b)		25			20			26			31			26
SELECTED BALANCE SHEET DATA (Period-end)
Loans (c)	$	24,066		$	18,972		$	19,693		$	17,929		$	18,529			27			30
Equity		6,500			5,000			5,000			5,000			5,000			30			30
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	38,273		$	36,589		$	33,117		$	35,520		$	38,682			5			(1	)
Loans (c)		19,578			18,888			17,062			17,524			20,140			4			(3	)
Liability balances (d)		247,905			250,695			231,502			234,163			276,486			(1	)		(10	)
Equity		6,500			5,000			5,000			5,000			5,000			30			30
Headcount		27,223			26,609			26,389			27,252			26,998			2			1

(a)	IB credit portfolio group manages certain exposures on behalf of clients shared with TSS. TSS reimburses IB for a portion of the total cost of managing the credit portfolio. IB recognizes this credit reimbursement as a component of noninterest revenue.
(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)	Loan balances include wholesale overdrafts, commercial card and trade finance loans.
(d)	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 23

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, Retail 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
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
TSS FIRMWIDE DISCLOSURES
TS revenue — reported	$	882		$	918		$	919		$	934		$	931			(4	)%		(5	)%
TS revenue reported in CB		638			645			672			679			646			(1	)		(1	)
TS revenue reported in other lines of business		56			57			63			63			62			(2	)		(10	)
TS firmwide revenue (a)		1,576			1,620			1,654			1,676			1,639			(3	)		(4	)
Worldwide Securities Services revenue		874			917			869			966			890			(5	)		(2	)
TSS firmwide revenue (a)	$	2,450		$	2,537		$	2,523		$	2,642		$	2,529			(3	)		(3	)
TS firmwide liability balances (average) (b)	$	305,105		$	289,024		$	261,059		$	258,312		$	289,645			6			5
TSS firmwide liability balances (average) (b)		381,047			373,166			340,795			339,992			391,461			2			(3	)
TSS FIRMWIDE FINANCIAL RATIOS
TS firmwide overhead ratio (c)		55	%		54	%		52	%		51	%		53	%
TSS firmwide overhead ratio (c)		65			66			62			59			63
FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)	$	15,283		$	14,885		$	14,887		$	13,748		$	13,532			3			13
Number of:
US$ ACH transactions originated (in millions)		949			975			965			978			978			(3	)		(3	)
Total US$ clearing volume (in thousands)		28,669			29,493			28,604			28,193			27,186			(3	)		5
International electronic funds transfer volume (in thousands) (d)		55,754			53,354			48,533			47,096			44,365			4			26
Wholesale check volume (in millions)		478			514			530			572			568			(7	)		(16	)
Wholesale cards issued (in thousands) (e)		27,352			27,138			26,977			25,501			23,757			1			15
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	—		$	—		$	—		$	17		$	2			—		NM
Nonperforming loans		14			14			14			14			30			—			(53	)
Allowance for credit losses:
Allowance for loan losses		57			88			15			15			51			(35	)		12
Allowance for lending-related commitments		76			84			104			92			77			(10	)		(1	)
Total allowance for credit losses		133			172			119			107			128			(23	)		4
Net charge-offs rate		—	%		—	%		—	%		0.39	%		0.04	%
Allowance for loan losses to period-end loans		0.24			0.46			0.08			0.08			0.28
Allowance for loan losses to average loans		0.29			0.47			0.09			0.09			0.25
Allowance for loan losses to nonperforming loans		407		NM				107			107			170
Nonperforming loans to period-end loans		0.06			0.07			0.07			0.08			0.16
Nonperforming loans to average loans		0.07			0.07			0.08			0.08			0.15

(a)	TSS firmwide revenue includes FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of IB. However, some of the FX revenue associated with TSS customers who are FX customers of IB is not included in TS and TSS firmwide revenue. These amounts were $137 million, $162 million, $154 million, $191 million, and $154 million for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009, and March 31, 2009, respectively.
(b)	Firmwide liability balances include liability balances recorded in Commercial Banking.
(c)	Overhead ratios have been calculated based on firmwide revenue and TSS and TS expense, respectively, including those allocated to certain other lines of business. FX revenue and expense recorded in IB for TSS-related FX activity are not included in this ratio.
(d)	International electronic funds transfer includes non-U.S. dollar ACH and clearing volume.
(e)	Wholesale cards issued and outstanding include domestic commercial, stored value, prepaid and government electronic benefit card products.

Page 24

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,508		$	1,632		$	1,443		$	1,315		$	1,231			(8	)%		23	%
All other income		266			191			238			253			69			39			286
Noninterest revenue		1,774			1,823			1,681			1,568			1,300			(3	)		36
Net interest income		357			372			404			414			403			(4	)		(11	)
TOTAL NET REVENUE		2,131			2,195			2,085			1,982			1,703			(3	)		25
Provision for credit losses		35			58			38			59			33			(40	)		6
NONINTEREST EXPENSE
Compensation expense		910			907			858			810			800			—			14
Noncompensation expense		514			543			474			525			479			(5	)		7
Amortization of intangibles		18			20			19			19			19			(10	)		(5	)
TOTAL NONINTEREST EXPENSE		1,442			1,470			1,351			1,354			1,298			(2	)		11
Income before income tax expense		654			667			696			569			372			(2	)		76
Income tax expense		262			243			266			217			148			8			77
NET INCOME	$	392		$	424		$	430		$	352		$	224			(8	)		75
REVENUE BY CLIENT SEGMENT
Private Bank	$	698		$	723		$	639		$	640		$	583			(3	)		20
Institutional		566	��		584			534			487			460			(3	)		23
Retail		415			445			471			411			253			(7	)		64
Private Wealth Management		343			331			339			334			312			4			10
JPMorgan Securities (a)		109			112			102			110			95			(3	)		15
Total net revenue	$	2,131		$	2,195		$	2,085		$	1,982		$	1,703			(3	)		25
FINANCIAL RATIOS
ROE		24	%		24	%		24	%		20	%		13	%
Overhead ratio		68			67			65			68			76
Pretax margin ratio (b)		31			30			33			29			22
BUSINESS METRICS
Number of:
Client advisors		1,987			1,934			1,891			1,838			1,872			3			6
Retirement planning services participants (in thousands)		1,651			1,628			1,620			1,595			1,628			1			1
JPMorgan Securities brokers (a)		390			376			365			362			359			4			9
% of customer assets in 4 & 5 Star Funds (c)		43	%		42	%		39	%		45	%		42	%		2			2
% of AUM in 1stand 2nd quartiles: (d)
1 year		55	%		57	%		60	%		62	%		54	%		(4	)		2
3 years		67	%		62	%		70	%		69	%		62	%		8			8
5 years		77	%		74	%		74	%		80	%		66	%		4			17
SELECTED BALANCE SHEET DATA (Period-end)
Loans	$	37,088		$	37,755		$	35,925		$	35,474		$	33,944			(2	)		9
Equity		6,500			7,000			7,000			7,000			7,000			(7	)		(7	)
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	62,525		$	63,036		$	60,345		$	59,334		$	58,227			(1	)		7
Loans		36,602			36,137			34,822			34,292			34,585			1			6
Deposits		80,662			77,352			73,649			75,355			81,749			4			(1	)
Equity		6,500			7,000			7,000			7,000			7,000			(7	)		(7	)
Headcount		15,321			15,136			14,919			14,840			15,109			1			1
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	28		$	35		$	17		$	46		$	19			(20	)		47
Nonperforming loans		475			580			409			313			301			(18	)		58
Allowance for credit losses:
Allowance for loan losses		261			269			251			226			215			(3	)		21
Allowance for lending-related commitments		13			9			5			4			4			44			225
Total allowance for credit losses		274			278			256			230			219			(1	)		25
Net charge-off rate		0.31	%		0.38	%		0.19	%		0.54	%		0.22	%
Allowance for loan losses to period-end loans		0.70			0.71			0.70			0.64			0.63
Allowance for loan losses to average loans		0.71			0.74			0.72			0.66			0.62
Allowance for loan losses to nonperforming loans		55			46			61			72			71
Nonperforming loans to period-end loans		1.28			1.54			1.14			0.88			0.89
Nonperforming loans to average loans		1.30			1.61			1.17			0.91			0.87

(a)	JPMorgan Securities was formerly known as Bear Stearns Private Client Services prior to January 1, 2010.
(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 Morningstar for the United States, the United Kingdom, Luxembourg, France, Hong Kong and Taiwan; and Nomura for Japan.
(d)	Quartile ranking sourced from Lipper for the United States and Taiwan; Morningstar for the United Kingdom, Luxembourg, France and Hong Kong; and Nomura for Japan.

Page 25

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

											March 31, 2010
											Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
	2010		2009		2009		2009		2009		2009			2009
ASSETS UNDER SUPERVISION (a)
Assets by asset class
Liquidity	$	521	$	591	$	634	$	617	$	625		(12	)%		(17	)%
Fixed income		246		226		215		194		180		9			37
Equities and multi-asset		355		339		316		264		215		5			65
Alternatives		97		93		94		96		95		4			2
TOTAL ASSETS UNDER MANAGEMENT		1,219		1,249		1,259		1,171		1,115		(2	)		9
Custody / brokerage / administration / deposits		488		452		411		372		349		8			40
TOTAL ASSETS UNDER SUPERVISION	$	1,707	$	1,701	$	1,670	$	1,543	$	1,464		—			17
Assets by client segment
Institutional	$	669	$	709	$	737	$	697	$	668		(6	)		—
Private Bank		184		187		180		179		181		(2	)		2
Retail		282		270		256		216		184		4			53
Private Wealth Management		70		69		71		67		68		1			3
JPMorgan Securities (b)		14		14		15		12		14		—			—
TOTAL ASSETS UNDER MANAGEMENT	$	1,219	$	1,249	$	1,259	$	1,171	$	1,115		(2	)		9
Institutional	$	670	$	710	$	737	$	697	$	669		(6	)		—
Private Bank		476		452		414		390		375		5			27
Retail		371		355		339		289		250		5			48
Private Wealth Management		133		129		131		123		120		3			11
JPMorgan Securities (b)		57		55		49		44		50		4			14
TOTAL ASSETS UNDER SUPERVISION	$	1,707	$	1,701	$	1,670	$	1,543	$	1,464		—			17
Assets by geographic region
U.S. / Canada	$	815	$	837	$	862	$	814	$	789		(3	)		3
International		404		412		397		357		326		(2	)		24
TOTAL ASSETS UNDER MANAGEMENT	$	1,219	$	1,249	$	1,259	$	1,171	$	1,115		(2	)		9
U.S. / Canada	$	1,189	$	1,182	$	1,179	$	1,103	$	1,066		1			12
International		518		519		491		440		398		—			30
TOTAL ASSETS UNDER SUPERVISION	$	1,707	$	1,701	$	1,670	$	1,543	$	1,464		—			17
Mutual fund assets by asset class
Liquidity	$	470	$	539	$	576	$	569	$	570		(13	)		(18	)
Fixed income		76		67		57		48		42		13			81
Equities		150		143		133		111		85		5			76
Alternatives		9		9		10		9		8		—			13
TOTAL MUTUAL FUND ASSETS	$	705	$	758	$	776	$	737	$	705		(7	)		—

(a)	Excludes assets under management of American Century Companies, Inc. in which the Firm has had a 42% ownership in all the periods presented.
(b)	JPMorgan Securities was formerly known as Bear Stearns Private Client Services prior to January 1, 2010.

Page 26

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

	QUARTERLY TRENDS
	1Q10			4Q09			3Q09		2Q09			1Q09
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,249		$	1,259		$	1,171	$	1,115		$	1,133
Net asset flows:
Liquidity		(62	)		(44	)		9		(7	)		19
Fixed income		16			12			13		8			1
Equities, multi-asset and alternatives		6			8			12		2			(5	)
Market / performance / other impacts		10			14			54		53			(33	)
TOTAL ASSETS UNDER MANAGEMENT	$	1,219		$	1,249		$	1,259	$	1,171		$	1,115
Assets under supervision rollforward
Beginning balance	$	1,701		$	1,670		$	1,543	$	1,464		$	1,496
Net asset flows		(10	)		(11	)		45		(9	)		25
Market / performance / other impacts		16			42			82		88			(57	)
TOTAL ASSETS UNDER SUPERVISION	$	1,707		$	1,701		$	1,670	$	1,543		$	1,464

Page 27

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

	QUARTERLY TRENDS
																1Q10 CHANGE
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
INCOME STATEMENT
REVENUE
Principal transactions	$	547		$	715		$	1,109		$	1,243		$	(1,493	)		(23	)%	NM		%
Securities gains		610			378			181			366			214			61			185
All other income		124			13			273			(209	)		(19	)	NM			NM
Noninterest revenue		1,281			1,106			1,563			1,400			(1,298	)		16		NM
Net interest income		1,076			978			1,031			865			989			10			9
TOTAL NET REVENUE		2,357			2,084			2,594			2,265			(309	)		13		NM
Provision for credit losses		17			9			62			9			—			89		NM
	��
NONINTEREST EXPENSE
Compensation expense		475			747			768			655			641			(36	)		(26	)
Noncompensation expense (a)		3,041			1,058			875			1,319			345			187		NM
Merger costs		—			30			103			143			205		NM			NM
Subtotal		3,516			1,835			1,746			2,117			1,191			92			195
Net expense allocated to other businesses		(1,180	)		(1,219	)		(1,243	)		(1,253	)		(1,279	)		3			8
TOTAL NONINTEREST EXPENSE		2,336			616			503			864			(88	)		279		NM
Income/(loss) before income tax expense (benefit)
and extraordinary gain		4			1,459			2,029			1,392			(221	)		(100	)	NM
Income tax expense/(benefit) (b)		(224	)		262			818			584			41		NM			NM
Income/(loss) before extraordinary gain		228			1,197			1,211			808			(262	)		(81	)	NM
Extraordinary gain (c)		—			—			76			—			—			—			—
NET INCOME/(LOSS)	$	228		$	1,197		$	1,287		$	808		$	(262	)		(81	)	NM
MEMO:
TOTAL NET REVENUE
Private equity	$	115		$	296		$	172		$	(1	)	$	(449	)		(61	)	NM
Corporate		2,242			1,788			2,422			2,266			140			25		NM
TOTAL NET REVENUE	$	2,357		$	2,084		$	2,594		$	2,265		$	(309	)		13		NM
NET INCOME/(LOSS)
Private equity	$	55		$	141		$	88		$	(27	)	$	(280	)		(61	)	NM
Corporate (d)		173			1,056			1,199			835			18			(84	)	NM
TOTAL NET INCOME/(LOSS)	$	228		$	1,197		$	1,287		$	808		$	(262	)		(81	)	NM
Headcount		19,307			20,119			20,747			21,522			22,339			(4	)		(14	)

(a)	The first quarter of 2010 includes a $2.3 billion increase reflecting increased litigation reserves, including those for mortgage-related matters. The second quarter of 2009 included a $675 million FDIC special assessment.
(b)	The income tax expense in the first quarter of 2010 and fourth quarter of 2009 includes tax benefits recognized upon the resolution of tax audits.
(c)	On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual. The acquisition resulted in negative goodwill, and accordingly, the Firm recognized an extraordinary gain. A preliminary gain of $1.9 billion was recognized at December 31, 2008. The final total extraordinary gain that resulted from the Washington Mutual transaction was $2.0 billion.
(d)	The 2009 periods included merger costs and extraordinary gain related to the Washington Mutual transaction, as well as items related to the Bear Stearns merger, including merger costs, asset management liquidation costs and Bear Stearns Private Client Services (which was renamed to JPMorgan Securities effective January 2010) broker retention expense.

Page 28

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

	QUARTERLY TRENDS
														1Q10 Change
	1Q10			4Q09		3Q09		2Q09			1Q09			4Q09			1Q09
SUPPLEMENTAL
TREASURY and CIO
Securities gains (a)	$	610		$	378	$	181	$	374		$	214			61	%		185	%
Investment securities portfolio (average)		330,584			353,224		339,745		336,263			265,785			(6	)		24
Investment securities portfolio (ending)		337,442			340,163		351,823		326,414			316,498			(1	)		7
Mortgage loans (average)		8,162			7,794		7,469		7,228			7,210			5			13
Mortgage loans (ending)		8,368			8,023		7,665		7,368			7,162			4			17
PRIVATE EQUITY
Private equity gains/(losses)
Direct investments
Realized gains	$	113		$	12	$	57	$	25		$	15		NM			NM
Unrealized gains/(losses) (b)		(75	)		224		88		16			(409	)	NM				82
Total direct investments		38			236		145		41			(394	)		(84	)	NM
Third-party fund investments		98			37		10		(61	)		(68	)		165		NM
Total private equity gains/(losses) (c)	$	136		$	273	$	155	$	(20	)	$	(462	)		(50	)	NM
Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	910		$	762	$	674	$	431		$	305			19			198
Cost		813			743		751		778			778			9			4
Quoted public value		982			791		720		477			346			24			184
Privately-held direct securities
Carrying value		4,762			5,104		4,722		4,709			4,708			(7	)		1
Cost		5,775			5,959		5,823		5,627			5,519			(3	)		5
Third-party fund investments (d)
Carrying value		1,603			1,459		1,440		1,420			1,537			10			4
Cost		2,134			2,079		2,068		2,055			2,082			3			2
Total private equity portfolio — Carrying value	$	7,275		$	7,325	$	6,836	$	6,560		$	6,550			(1	)		11
Total private equity portfolio — Cost	$	8,722		$	8,781	$	8,642	$	8,460		$	8,379			(1	)		4

(a)	All periods reflect repositioning of the Corporate investment securities portfolio, and exclude gains/losses on securities used to manage risk associated with MSRs.
(b)	Unrealized gains (losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.
(c)	Included in principal transactions revenue in the Consolidated Statements of Income.
(d)	Unfunded commitments to third-party private equity funds were $1.4 billion, $1.5 billion, $1.4 billion, $1.5 billion and $1.5 billion at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively.

Page 29

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

											March 31, 2010 Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
	2010		2009		2009		2009		2009		2009			2009
CREDIT EXPOSURE
WHOLESALE (a)
Loans retained (b)	$	210,211	$	200,077	$	213,718	$	224,080	$	230,534		5	%		(9	)%
Loans held-for-sale and loans at fair value		4,079		4,098		5,235		7,545		11,750		—			(65	)
TOTAL WHOLESALE LOANS — REPORTED		214,290		204,175		218,953		231,625		242,284		5			(12	)
CONSUMER (c)
Home loan portfolio — excluding purchased credit-impaired loans:
Home equity		97,642		101,425		104,795		108,229		111,781		(4	)		(13	)
Prime mortgage (b)		68,210		66,892		67,597		68,878		71,731		2			(5	)
Subprime mortgage (b)		13,219		12,526		13,270		13,825		14,594		6			(9	)
Option ARMs (b)		8,644		8,536		8,852		9,034		8,940		1			(3	)
Total home loan portfolio — excluding purchased credit-impaired loans		187,715		189,379		194,514		199,966		207,046		(1	)		(9	)
Home loan portfolio — purchased credit-impaired loans: (d)
Home equity		26,012		26,520		27,088		27,729		28,366		(2	)		(8	)
Prime mortgage		19,203		19,693		20,229		20,807		21,398		(2	)		(10	)
Subprime mortgage		5,848		5,993		6,135		6,341		6,565		(2	)		(11	)
Option ARMs		28,260		29,039		29,750		30,529		31,243		(3	)		(10	)
Total home loan portfolio — purchased credit-impaired loans		79,323		81,245		83,202		85,406		87,572		(2	)		(9	)
Other consumer:
Auto (b)		47,381		46,031		44,309		42,887		43,065		3			10
Credit card — reported:
Loans excluding those held by the WaMu Master Trust (b)		149,260		77,784		75,207		80,722		90,911		92			64
Loans held by the WaMu Master Trust (e)		—		1,002		3,008		5,014		—	NM				—
Total credit card — reported		149,260		78,786		78,215		85,736		90,911		89			64
Other loans (b)		32,951		31,700		32,405		33,041		33,700		4			(2	)
Loans retained		496,630		427,141		432,645		447,036		462,294		16			7
Loans held-for-sale (f)		2,879		2,142		1,546		1,940		3,665		34			(21	)
TOTAL CONSUMER LOANS — REPORTED		499,509		429,283		434,191		448,976		465,959		16			7
TOTAL LOANS — REPORTED		713,799		633,458		653,144		680,601		708,243		13			1
Credit card — securitized and unconsolidated (b)		N/A		84,626		87,028		85,790		85,220	NM			NM
TOTAL MANAGED LOANS (b)		713,799		718,084		740,172		766,391		793,463		(1	)		(10	)
Derivative receivables		79,416		80,210		94,065		97,491		131,247		(1	)		(39	)
Receivables from customers		16,314		15,745		13,148		12,977		14,504		4			12
Interests in purchased receivables (b)		2,579		2,927		2,329		2,972		—		(12	)	NM
TOTAL CREDIT-RELATED ASSETS		812,108		816,966		849,714		879,831		939,214		(1	)		(14	)
Wholesale lending-related commitments (b)		326,921		347,155		343,135		343,991		363,013		(6	)		(10	)
TOTAL	$	1,139,029	$	1,164,121	$	1,192,849	$	1,223,822	$	1,302,227		(2	)		(13	)
Memo: Total by category			��
Total wholesale exposure (g)	$	639,520	$	650,212	$	671,630	$	689,056	$	751,048		(2	)		(15	)
Total consumer loans (b) (h)		499,509		513,909		521,219		534,766		551,179		(3	)		(9	)
Total	$	1,139,029	$	1,164,121	$	1,192,849	$	1,223,822	$	1,302,227		(2	)		(13	)
Risk profile of wholesale credit exposure:
Investment-grade	$	457,471	$	460,702	$	474,005	$	491,168	$	546,968		(1	)		(16	)
Noninvestment-grade:
Noncriticized		129,368		133,557		141,578		141,408		147,891		(3	)		(13	)
Criticized performing		23,451		26,095		27,217		26,453		25,320		(10	)		(7	)
Criticized nonperforming		6,258		7,088		8,118		6,533		4,615		(12	)		36
Total noninvestment-grade		159,077		166,740		176,913		174,394		177,826		(5	)		(11	)
Loans held-for-sale and loans at fair value		4,079		4,098		5,235		7,545		11,750		—			(65	)
Receivables from customers		16,314		15,745		13,148		12,977		14,504		4			12
Interests in purchased receivables (b)		2,579		2,927		2,329		2,972		—		(12	)	NM
Total wholesale exposure	$	639,520	$	650,212	$	671,630	$	689,056	$	751,048		(2	)		(15	)

(a)	Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management.
(b)	Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated: $84.7 billion of loans associated with Firm-sponsored credit card securitization trusts; $17.7 billion of assets associated with Firm-administered multi-seller conduits, of which $2.5 billion related to interests in purchased receivables and $15.1 billion related to wholesale loans; and $4.8 billion of loans associated with certain other consumer loan securitization entities, primarily mortgage-related. Furthermore, $17.2 billion of net lending-related commitments associated with the conduits were eliminated upon consolidation. As a result of the consolidation of the credit card securitization trusts, reported and managed basis are equivalent for periods beginning after January 1, 2010. For further discussion, see page 38 of this Financial Supplement.
(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. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due.
(e)	Represents the remaining balance of loans measured at fair value within the Washington Mutual Master Trust that were consolidated onto the Firm’s balance sheet during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of December 31, 2009, September 30, 2009 and June 30, 2009.
(f)	Included loans for prime mortgage of $558 million, $450 million, $187 million, $589 million and $825 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively, and other (largely student loans) of $2.3 billion, $1.7 billion, $1.4 billion, $1.4 billion and $2.8 billion at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively,
(g)	Primarily represents total wholesale loans, derivative receivables, wholesale lending-related commitments and receivables from customers.
(h)	Represents total consumer loans and excludes consumer lending-related commitments.
	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. N/A: Not Applicable.

Page 30

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

																March 31, 2010 Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2010			2009			2009			2009			2009			2009			2009
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS
Loans retained	$	5,895		$	6,559		$	7,494		$	5,829		$	3,605			(10	)%		64	%
Loans held-for-sale and loans at fair value		331			345			146			133			57			(4	)		481
TOTAL WHOLESALE LOANS		6,226			6,904			7,640			5,962			3,662			(10	)		70
CONSUMER LOANS (a)
Home loan portfolio (includes RFS and Corporate/Private Equity):
Home equity		1,427			1,665			1,598			1,487			1,591			(14	)		(10	)
Prime mortgage		4,579			4,355			4,007			3,501			2,712			5			69
Subprime mortgage		3,331			3,248			3,233			2,773			2,545			3			31
Option ARMs		348			312			244			182			97			12			259
Total home loan portfolio		9,685			9,580			9,082			7,943			6,945			1			39
Auto loans		174			177			179			154			165			(2	)		5
Credit card — reported		3			3			3			4			4			—			(25	)
Other loans		962			900			863			722			625			7			54
TOTAL CONSUMER LOANS (b) (c)		10,824			10,660			10,127			8,823			7,739			2			40
TOTAL NONPERFORMING LOANS REPORTED		17,050			17,564			17,767			14,785			11,401			(3	)		50
Derivative receivables		363			529			624			704			1,010			(31	)		(64	)
Assets acquired in loan satisfactions		1,606			1,648			1,971			2,028			2,243			(3	)		(28	)
TOTAL NONPERFORMING ASSETS (b)	$	19,019		$	19,741		$	20,362		$	17,517		$	14,654			(4	)		30
TOTAL NONPERFORMING LOANS TO TOTAL LOANS REPORTED (d)		2.39	%		2.77	%		2.72	%		2.17	%		1.61	%
NONPERFORMING ASSETS BY LOB
Investment Bank	$	3,289		$	4,236		$	5,782		$	4,534		$	3,041			(22	)		8
Retail Financial Services (c)		11,974			11,864			11,641			10,351			9,582			1			25
Card Services		3			3			3			4			4			—			(25	)
Commercial Banking		3,186			2,989			2,461			2,255			1,651			7			93
Treasury & Securities Services		14			14			14			14			30			—			(53	)
Asset Management		498			582			422			326			319			(14	)		56
Corporate/Private Equity (e)		55			53			39			33			27			4			104
TOTAL	$	19,019		$	19,741		$	20,362		$	17,517		$	14,654			(4	)		30

(a)	There were no nonperforming loans held-for-sale for any of the periods presented.
(b)	Nonperforming assets exclude: (1) mortgage loans insured by U.S. government agencies of $10.5 billion, $9.0 billion, $7.0 billion, $4.2 billion and $4.2 billion at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively; (2) real estate owned insured by U.S. government agencies of $707 million, $579 million, $579 million, $508 million and $433 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, 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 $660 million, $542 million, $511 million, $473 million and $433 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively. These amounts are excluded, as reimbursement is proceeding normally. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Under guidance issued by the Federal Financial Institutions Examination Council, 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 about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.
(c)	Excludes home lending 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. Also excludes loans held-for-sale and loans at fair value.
(d)	Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts, its Firm-administered multi-seller conduits and certain other consumer loan securitization entities, primarily mortgage-related; overall, $104.6 billion of related loans were recorded on-balance sheet. For further discussion, see page 38 of this Financial Supplement.
(e)	Predominantly relates to held-for-investment prime mortgage.

Page 31

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
GROSS CHARGE-OFFS (a)
Wholesale loans	$	1,014		$	1,230		$	1,093		$	697		$	206			(18	)%		392	%
Consumer loans (includes RFS and Corporate/Private Equity)		2,555			2,825			2,634			2,718			2,244			(10	)		14
Credit card loans — reported		4,882			2,405			2,894			2,883			2,189			103			123
Total loans — reported		8,451			6,460			6,621			6,298			4,639			31			82
Credit card loans — securitized and unconsolidated		N/A			1,733			1,810			1,776			1,579		NM			NM
Total loans — managed		8,451			8,193			8,431			8,074			6,218			3			36
RECOVERIES (a)
Wholesale loans		55			26			35			18			15			112			267
Consumer loans (includes RFS and Corporate/Private Equity)		116			74			13			67			68			57			71
Credit card loans — reported		370			183			200			194			160			102			131
Total loans — reported		541			283			248			279			243			91			123
Credit card loans — securitized and unconsolidated		N/A			116			112			112			115		NM			NM
Total loans — managed		541			399			360			391			358			36			51
NET CHARGE-OFFS (a)
Wholesale loans		959			1,204			1,058			679			191			(20	)		402
Consumer loans (including RFS and Corporate/ Private Equity)		2,439			2,751			2,621			2,651			2,176			(11	)		12
Credit card loans — reported		4,512			2,222			2,694			2,689			2,029			103			122
Total loans — reported		7,910			6,177			6,373			6,019			4,396			28			80
Credit card loans — securitized and unconsolidated		N/A			1,617			1,698			1,664			1,464		NM			NM
Total loans — managed	$	7,910		$	7,794		$	8,071		$	7,683		$	5,860			1			35
NET CHARGE-OFF RATES (a)
Wholesale retained loans		1.84	%		2.31	%		1.93	%		1.19	%		0.32	%
Consumer retained loans		5.56			4.60			4.79			4.69			3.61
Total retained loans — reported		4.46			3.85			3.84			3.52			2.51
Consumer loans — managed		5.56			5.08			5.29			5.20			4.12
Total loans — managed		4.46			4.29			4.30			4.00			2.98
Consumer loans — managed excluding purchased credit-impaired loans (b)		6.61			6.05			6.29			6.18			4.90
Total loans — managed excluding purchased credit-impaired loans (b)		5.03			4.84			4.85			4.51			3.36
Memo: Average Retained Loans (a)
Wholesale loans — reported	$	211,599		$	206,846		$	217,952		$	229,105		$	238,689
Consumer loans — reported		506,949			428,964			440,376			456,292			471,918
Total loans — reported		718,548			635,810			658,328			685,397			710,607
Consumer loans — managed		506,949			514,416			526,393			540,709			557,537
Total loans — managed		718,548			721,262			744,345			769,814			796,226

(a)	Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts, its Firm-administered multi-seller conduits and certain other consumer loan securitization entities, primarily mortgage-related; overall, $104.6 billion of related loans were recorded on-balance sheet. As a result of the consolidation of the credit card securitization trusts, reported and managed basis are equivalent for periods beginning after January 1, 2010. For further discussion, see page 38 of this Financial Supplement.
(b)	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. To date, no charge-offs have been recorded for these loans.
	N/A: Not Applicable.

Page 32

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning balance at January 1,	$	31,602		$	30,633		$	29,072		$	27,381		$	23,164			3	%		36	%
Cumulative effect of change in accounting principles (a)		7,494			—			—			—			—		NM			NM
Beginning balance at January 1, adjusted	$	39,096		$	30,633		$	29,072		$	27,381		$	23,164			28			69
Net charge-offs (a)		7,910			6,177			6,373			6,019			4,396			28			80
Provision for loan losses (a)		6,991			7,166			8,029			7,923			8,617			(2	)		(19	)
Other (b)		9			(20	)		(95	)		(213	)		(4	)	NM			NM
Ending balance	$	38,186		$	31,602		$	30,633		$	29,072		$	27,381			21			39
SUMMARY OF CHANGES IN THE ALLOWANCE FOR
LENDING-RELATED COMMITMENTS
Beginning balance at January 1,	$	939		$	821		$	746		$	638		$	659			14			42
Cumulative effect of change in accounting principles (a)		(18	)		—			—			—			—		NM			NM
Beginning balance at January 1, adjusted	$	921		$	821		$	746		$	638		$	659			12			40
Provision for lending-related commitments		19			118			75			108			(21	)		(84	)	NM
Ending balance	$	940		$	939		$	821		$	746		$	638			—			47
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset specific (a)	$	1,557		$	2,046		$	2,410		$	2,108		$	1,213			(24	)		28
Formula — based		4,385			5,099			5,631			6,284			6,691			(14	)		(34	)
Total wholesale		5,942			7,145			8,041			8,392			7,904			(17	)		(25	)
Consumer
Asset specific (c)		1,010			996			1,009			801			546			1			85
Formula — based (a) (d) (e)		28,423			21,880			20,493			19,879			18,931			30			50
Purchased credit-impaired (e)		2,811			1,581			1,090			—			—			78		NM
Total consumer		32,244			24,457			22,592			20,680			19,477			32			66
Total allowance for loan losses		38,186			31,602			30,633			29,072			27,381			21			39
Allowance for lending-related commitments		940			939			821			746			638			—			47
Total allowance for credit losses	$	39,126		$	32,541		$	31,454		$	29,818		$	28,019			20			40
REPORTED RATIOS
Wholesale allowance to total wholesale retained loans		2.83	%		3.57	%		3.76	%		3.75	%		3.43	%
Consumer allowance to total consumer retained loans		6.49			5.73			5.22			4.63			4.21
Allowance to total retained loans		5.40			5.04			4.74			4.33			3.95
Consumer allowance to retained nonperforming loans (f) (g)		298			229			223			234			252
Consumer allowance to retained nonperforming loans excluding credit card		150			139			131			134			137
MANAGED RATIOS (a)
Consumer allowance to total consumer retained loans excl. purchased credit-impaired loans and loans held by the WaMu Master Trust (h) (i)		7.05			6.63			6.21			5.80			5.20
Allowance to loans excl. purchased credit-impaired loans and loans held by the Washington Mutual Master Trust (h) (i)		5.64			5.51			5.28			5.01			4.53
Allowance to total retained nonperforming loans excluding purchased credit-impaired loans (f) (h) (j)		212			174			168			198			241
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank (a)	$	2,601		$	3,756		$	4,703		$	5,101		$	4,682			(31	)		(44	)
Retail Financial Services (a)		16,200			14,776			13,286			11,832			10,619			10			53
Card Services (a)		16,032			9,672			9,297			8,839			8,849			66			81
Commercial Banking		3,007			3,025			3,063			3,034			2,945			(1	)		2
Treasury & Securities Services		57			88			15			15			51			(35	)		12
Asset Management		261			269			251			226			215			(3	)		21
Corporate/Private Equity		28			16			18			25			20			75			40
Total	$	38,186		$	31,602		$	30,633		$	29,072		$	27,381			21			39

(a)	Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts, its Firm-administered multi-seller conduits and certain other consumer loan securitization entities, primarily mortgage-related. As a result $7.4 billion, $14 million and $127 million of allowance for loan losses were recorded on-balance sheet associated with the Firm-sponsored credit card securitization trusts, Firm-administered multi-seller conduits, and certain other consumer loan securitization entities, primarily mortgage-related, respectively. As a result of the consolidation of the credit card securitization trusts, reported and managed basis are comparable for periods beginning after January 1, 2010. For further discussion, see page 38 of this Financial Supplement.
(b)	Activity for the third and second quarters of 2009 predominantly included a reclassification related to the issuance and retention of securities from the Chase Issuance Trust.
(c)	The asset-specific consumer allowance for loan losses includes residential real estate troubled debt restructuring reserves of $754 million, $754 million, $756 million, $603 million and $380 million at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively. Prior period amounts have been reclassified from formula-based to conform with the current period presentation.
(d)	Includes all of the Firm’s allowance for loan losses on credit card loans, including those for which the Firm has modified the terms of the loans for borrowers who are experiencing financial difficulty.
(e)	Prior period amounts have been reclassified from formula-based to conform with the current period presentation.
(f)	The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Under guidance issued by the Federal Financial Institutions Examination Council, 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 about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.
(g)	Excluding consumer purchased credit-impaired loans and the related allowance, the consumer allowance to retained nonperforming loans ratios would have been 272%, 215%, 212%, 234% and 252% at March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively.
(h)	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. To date, no charge-offs have been recorded for these loans.
(i)	Excludes loans held by the Washington Mutual Master Trust, which were consolidated onto the Firm’s balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of December 31, 2009, September 30, 2009, and June 30, 2009.
(j)	Excludes consumer 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.

Page 33

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank (a)	$	(477	)	$	(265	)	$	330		$	815		$	1,274			(80	)%	NM		%
Commercial Banking		204			445			326			280			263			(54	)		(22	)
Treasury & Securities Services		(31	)		73			1			(20	)		(20	)	NM				(55	)
Asset Management		31			53			37			59			34			(42	)		(9	)
Corporate/Private Equity		16			(2	)		(6	)		7			—		NM			NM
Total wholesale		(257	)		304			688			1,141			1,551		NM			NM
Retail Financial Services (a)		3,735			4,228			4,004			3,841			3,877			(12	)		(4	)
Card Services — reported (a)		3,512			2,622			3,269			2,939			3,189			34			10
Corporate/Private Equity		1			12			68			2			—			(92	)	NM
Total consumer		7,248			6,862			7,341			6,782			7,066			6			3
Total provision for loan losses	$	6,991		$	7,166		$	8,029		$	7,923		$	8,617			(2	)		(19	)
LENDING-RELATED COMMITMENTS
Investment Bank (a)	$	15		$	84		$	49		$	56		$	(64	)		(82	)	NM
Commercial Banking		10			49			29			32			30			(80	)		(67	)
Treasury & Securities Services		(8	)		(20	)		12			15			14			60		NM
Asset Management		4			5			1			—			(1	)		(20	)	NM
Corporate/Private Equity		—			(1	)		—			—			—		NM				—
Total wholesale		21			117			91			103			(21	)		(82	)	NM
Retail Financial Services		(2	)		1			(16	)		5			—		NM			NM
Card Services — reported		—			—			—			—			—			—			—
Corporate/Private Equity		—			—			—			—			—			—			—
Total consumer		(2	)		1			(16	)		5			—		NM			NM
Total provision for lending-related commitments	$	19		$	118		$	75		$	108		$	(21	)		(84	)	NM
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank (a)	$	(462	)	$	(181	)	$	379		$	871		$	1,210			(155	)	NM
Commercial Banking		214			494			355			312			293			(57	)		(27	)
Treasury & Securities Services		(39	)		53			13			(5	)		(6	)	NM			NM
Asset Management		35			58			38			59			33			(40	)		6
Corporate/Private Equity		16			(3	)		(6	)		7			—		NM			NM
Total wholesale		(236	)		421			779			1,244			1,530		NM			NM
Retail Financial Services (a)		3,733			4,229			3,988			3,846			3,877			(12	)		(4	)
Card Services — reported (a)		3,512			2,622			3,269			2,939			3,189			34			10
Corporate/Private Equity		1			12			68			2			—			(92	)	NM
Total consumer		7,246			6,863			7,325			6,787			7,066			6			3
Total provision for credit losses		7,010			7,284			8,104			8,031			8,596			(4	)		(18	)
Credit card loans — securitized and unconsolidated (a)		N/A			1,617			1,698			1,664			1,464		NM			NM
Managed provision for credit losses (a)	$	7,010		$	8,901		$	9,802		$	9,695		$	10,060			(21	)		(30	)

(a) Effective January 1, 2010, the Firm adopted new FASB guidance which amended the accounting for the transfer of financial assets and the consolidation of VIEs. Upon adoption of the new guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts, Firm-administered multi-seller conduits and certain other consumer loan securitization entities, primarily mortgage-related. As a result of the consolidation of the credit card securitization trusts, reported and managed basis are comparable for periods beginning after January 1, 2010. For further discussion, see page 38 of this Financial Supplement.
N/A: Not Applicable.

Page 34

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
AVERAGE IB TRADING VAR, CREDIT PORTFOLIO VAR AND OTHER VAR - 95% CONFIDENCE LEVEL
IB VaR by risk type:
Fixed income	$	69		$	121		$	182		$	179		$	158			(43	)%		(56	)%
Foreign exchange		13			14			19			16			23			(7	)		(43	)
Equities		24			21			19			50			97			14			(75	)
Commodities and other		15			17			23			22			20			(12	)		(25	)
Diversification benefit to IB trading VaR (a)		(49	)		(62	)		(97	)		(97	)		(108	)		21			55
IB Trading VaR (b)		72			111			146			170			190			(35	)		(62	)
Credit portfolio VaR (c)		19			24			29			68			86			(21	)		(78	)
Diversification benefit to IB trading and credit portfolio VaR (a)		(9	)		(11	)		(32	)		(60	)		(63	)		18			86
Total IB trading and credit portfolio VaR		82			124			143			178			213			(34	)		(62	)
Consumer Lending VaR (d)		25			29			49			43			108			(14	)		(77	)
Chief Investment Office (CIO) VaR (e)		70			78			99			111			121			(10	)		(42	)
Diversification benefit to total other VaR (a)		(13	)		(19	)		(31	)		(29	)		(61	)		32			79
Total other VaR		82			88			117			125			168			(7	)		(51	)
Diversification benefit to total IB and other VaR (a)		(66	)		(67	)		(82	)		(89	)		(93	)		1			29
Total IB and other VaR (f)	$	98		$	145		$	178		$	214		$	288			(32	)		(66	)

(a)	Average VaRs were less than the sum of the VaRs of their market risk components, which is 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 therefore usually less than the sum of the risks of the positions themselves.
(b)	IB Trading VaR includes predominantly all trading activities in IB, as well as syndicated lending facilities that the Firm intends to distribute; however, particular risk parameters of certain products are not fully captured, such as correlation risk. IB Trading VaR does not include the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm.
(c)	Credit Portfolio VaR includes the 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)	Consumer Lending VaR includes the Firm’s mortgage pipeline and warehouse, MSR and all related hedges.
(e)	Chief Investment Office (CIO) VaR includes positions, primarily in debt securities and credit products, used to manage structural risk and other risks, including interest rate, and credit risks arising from the Firm’s ongoing business activities.
(f)	Total IB and other VaR excludes certain nontrading activity, such as Private Equity, principal investing (e.g., mezzanine financing, tax-oriented investments, etc.), balance sheet and capital management positions and longer-term corporate investments managed by the CIO.

Page 35

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

																March 31, 2010
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2010			2009			2009			2009			2009			2009			2009
CAPITAL RATIOS (a)
Tier 1 capital	$	131,402	(e)	$	132,971		$	126,541		$	122,174		$	137,144			(1	)%		(4	)%
Total capital		173,417	(e)		177,073			171,804			167,767			183,109			(2	)		(5	)
Tier 1 common capital (b)		103,960	(e)		105,284			101,420			96,850			87,878			(1	)		18
Risk-weighted assets		1,147,483	(e)		1,198,006			1,237,760			1,260,237			1,207,490			(4	)		(5	)
Adjusted average assets		1,981,060	(e)		1,933,767			1,940,689			1,969,339			1,923,186			2			3
Tier 1 capital ratio		11.5	%(e)		11.1	%		10.2	%		9.7	%		11.4	%
Total capital ratio		15.1	(e)		14.8			13.9			13.3			15.2
Tier 1 common capital ratio (b)		9.1	(e)		8.8			8.2			7.7			7.3
Tier 1 leverage ratio		6.6	(e)		6.9			6.5			6.2			7.1
TANGIBLE COMMON EQUITY (PERIOD-END) (c)
Common stockholders’ equity	$	156,569		$	157,213		$	154,101		$	146,614		$	138,201			—			13
Less: Goodwill		48,359			48,357			48,334			48,288			48,201			—			—
Less: Other intangible assets		4,383			4,621			4,862			5,082			5,349			(5	)		(18	)
Add: Deferred tax liabilities (d)		2,544			2,538			2,527			2,535			2,502			—			2
Total tangible common equity	$	106,371		$	106,773		$	103,432		$	95,779		$	87,153			—			22
TANGIBLE COMMON EQUITY (AVERAGE) (c)
Common stockholders’ equity	$	156,094		$	156,525		$	149,468		$	140,865		$	136,493			—			14
Less: Goodwill		48,542			48,341			48,328			48,273			48,071			—			1
Less: Other intangible assets		4,307			4,741			4,984			5,218			5,443			(9	)		(21	)
Add: Deferred tax liabilities (d)		2,541			2,533			2,531			2,518			2,609			—			(3	)
Total tangible common equity	$	105,786		$	105,976		$	98,687		$	89,892		$	85,588			—			24
INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	48,359		$	48,357		$	48,334		$	48,288		$	48,201			—			—
Mortgage servicing rights		15,531			15,531			13,663			14,600			10,634			—			46
Purchased credit card relationships		1,153			1,246			1,342			1,431			1,528			(7	)		(25	)
All other intangibles		3,230			3,375			3,520			3,651			3,821			(4	)		(15	)
Total intangibles	$	68,273		$	68,509		$	66,859		$	67,970		$	64,184			—			6
DEPOSITS (PERIOD-END)
U.S. offices:
Noninterest-bearing	$	210,982		$	204,003		$	195,561		$	192,247		$	197,027			3			7
Interest-bearing		436,914			439,104			415,122			433,862			463,913			—			(6	)
Non-U.S. offices:
Noninterest-bearing		10,062			8,082			9,390			8,291			7,073			24			42
Interest-bearing		267,345			287,178			247,904			232,077			238,956			(7	)		12
Total deposits	$	925,303		$	938,367		$	867,977		$	866,477		$	906,969			(1	)		2

(a)	The Federal Reserve 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 capital and leverage requirements, with respect to the Bear Stearns’ risk-weighted assets and other exposures acquired. The relief would have ended, by its terms, on September 30, 2009. Commencing in the second quarter of 2009, the Firm no longer adjusted its risk-based capital ratios to take into account the relief in the calculation of its risk-based capital ratios as of June 30, 2009.
(b)	The Tier 1 common ratio is Tier 1 common capital divided by risk-weighted assets. Tier 1 common capital (“Tier 1 Common”) is defined as Tier 1 capital less elements of capital not in the form of common equity — such as perpetual preferred stock, noncontrolling interest in subsidiaries and trust preferred capital debt securities. Tier 1 common capital, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position.
(c)	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. The Firm views TCE, a non-GAAP financial measure, as a meaningful measure of capital quality.
(d)	Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
(e)	Estimated.

Page 36

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

	QUARTERLY TRENDS
																1Q10 Change
	1Q10			4Q09			3Q09			2Q09			1Q09			4Q09			1Q09
EARNINGS PER SHARE DATA
Basic earnings per share:
Income before extraordinary gain	$	3,326		$	3,278		$	3,512		$	2,721		$	2,141			1	%		55	%
Extraordinary gain		—			—			76			—			—			—			—
Net income		3,326			3,278			3,588			2,721			2,141			1			55
Less: Preferred stock dividends		162			162			163			473			529			—			(69	)
Less: Accelerated amortization from redemption of preferred stock issued to the U.S. Treasury (a)		—			—			—			1,112			—			—			—
Net income applicable to common equity		3,164			3,116			3,425			1,136			1,612			2			96
Less: Dividends and undistributed earnings allocated to participating securities		190			164			185			64			93			16			104
Net income applicable to common stockholders	$	2,974		$	2,952		$	3,240		$	1,072		$	1,519			1			96
Total weighted-average basic shares outstanding		3,970.5			3,946.1			3,937.9			3,811.5			3,755.7			1			6
Income before extraordinary gain per share (a)	$	0.75		$	0.75		$	0.80		$	0.28		$	0.40			—			88
Extraordinary gain per share		—			—			0.02			—			—			—			—
Net income per share (a)	$	0.75		$	0.75		$	0.82		$	0.28		$	0.40			—			88
Diluted earnings per share:
Net income applicable to common stockholders	$	2,974		$	2,952		$	3,240		$	1,072		$	1,519			1			96
Total weighted-average basic shares outstanding		3,970.5			3,946.1			3,937.9			3,811.5			3,755.7			1			6
Add: Employee stock options and SARs (b)		24.2			28.0			24.1			12.6			3.0			(14	)	NM
Total weighted-average diluted shares outstanding (c)		3,994.7			3,974.1			3,962.0			3,824.1			3,758.7			1			6
Income before extraordinary gain per share (a)	$	0.74		$	0.74		$	0.80		$	0.28		$	0.40			—			85
Extraordinary gain per share		—			—			0.02			—			—			—			—
Net income per share (a)	$	0.74		$	0.74		$	0.82		$	0.28		$	0.40			—			85
COMMON SHARES OUTSTANDING
Common shares outstanding — at period end (d)		3,975.4			3,942.0			3,938.7			3,924.1			3,757.7			1			6
Cash dividends declared per share	$	0.05		$	0.05		$	0.05		$	0.05		$	0.05			—			—
Book value per share		39.38			39.88			39.12			37.36			36.78			(1	)		7
Dividend payout		7	%		7	%		6	%		14	%		15	%
SHARE PRICE
High	$	46.05		$	47.47		$	46.50		$	38.94		$	31.64			(3	)		46
Low		37.03			40.04			31.59			25.29			14.96			(8	)		148
Close		44.75			41.67			43.82			34.11			26.58			7			68
Market capitalization		177,897			164,261			172,596			133,852			99,881			8			78
STOCK REPURCHASE PROGRAM
Common shares repurchased		—			—			—			—			—			—			—

(a)	The calculation of second quarter 2009 earnings per share includes a one-time non-cash reduction of $1.1 billion, or $0.27 per share, resulting from the redemption of Series K preferred stock issued to the U.S. Treasury.
(b)	Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and warrants originally issued under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock totaling 239 million, 147 million, 241 million, 315 million, and 363 million, for the quarters ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009, and March 31, 2009, respectively.
(c)	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.
(d)	On June 5, 2009, the Firm issued $5.8 billion, or 163 million shares, of its common stock at $35.25 per share.

Page 37

JPMORGAN CHASE & CO.
Non-GAAP Financial Measures

     The following are several of the non-GAAP measures that the Firm uses for various reasons, including: (i) to allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources, (ii) to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies, and (iii) more generally, to provide a more meaningful measure of certain metrics that enables comparability with prior periods, as well as with competitors.

(a)	In addition to analyzing the Firm’s results on a reported basis, management analyzes the Firm’s results and the results of the lines of business on a managed basis, which is a non-GAAP financial measure. For 2010 and 2009, the Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue and net interest income for the Firm (and each of the business segments) 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 equivalent to 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. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.
	Effective January 1, 2010, the Firm adopted new FASB guidance that required the Firm to consolidate its Firm-sponsored credit card securitization trusts. The income, expense and credit costs associated with these securitization activities are now recorded in the 2010 Consolidated Statements of Income in the same classifications as for credit card loans that were not securitized. As a result of the consolidation of the securitization trusts, reported and managed basis are equivalent for periods beginning after January 1, 2010. Prior to January 1, 2010 the Firm’s managed basis presentation also included certain reclassification adjustments that assumed credit card loans securitized by Card Services remained on the Consolidated Balance Sheet. JPMorgan Chase previously used this concept of managed basis to evaluate the credit performance and overall financial performance of the entire managed credit card portfolio. Operations were funded and decisions were made about allocating resources, such as employees and capital, based on managed financial information. In addition, the same underwriting standards and ongoing risk monitoring are used for both loans on the Consolidated Balance Sheet and securitized loans. Although securitizations result in the sale of credit card receivables to a trust, JPMorgan Chase retained the ongoing customer relationships, as the customers may continue to use their credit cards; accordingly, the customer’s credit performance affects both the securitized loans and the loans retained on the Consolidated Balance Sheet. JPMorgan Chase believed that this managed basis information was useful to investors, as it enabled them to understand both the credit risks associated with the loans reported on the Consolidated Balance Sheet and the Firm’s retained interests in securitized loans.
(b)	The allowance for loan losses to end-of-period loans excludes purchased credit-impaired loans and loans from the Washington Mutual Master Trust, which were consolidated on the Firm’s balance sheet at fair value during the second quarter of 2009. Additionally, Real Estate Portfolios’ net charge-off rates exclude the impact of purchased credit-impaired loans. The allowance for loan losses applicable to these loans was $2.8 billion at March 31, 2010.

(c)	Tier 1 common capital (“Tier 1 Common”) is defined as Tier 1 capital less elements of capital not in the form of common equity — such as perpetual preferred stock, noncontrolling interest in subsidiaries and trust preferred capital debt securities. Tier 1 common capital, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position.
(d)	TSS Firmwide revenue includes certain TSS product revenue and liability balances reported in other lines of business, mainly CB, RFS and AM, related to customers who are also customers of those lines of business.
(e)	Pretax margin represents income before income tax expense divided by total net revenue, which is, in management’s view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is, therefore, another basis that management uses to evaluate the performance of TSS and AM against the performance of their respective competitors.
(f)	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 prior business combination transactions.
(g)	The calculation of the second quarter 2009 earnings per share and net income applicable to common equity includes a one-time, noncash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital. Excluding this reduction, the adjusted ROE and ROTCE for the second quarter of 2009 would have been 6% and 10%, respectively. The Firm views the adjusted ROE and ROTCE, both non-GAAP financial measures, as meaningful because they enable the comparability to prior periods.
(h)	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”); (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 IB’s asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. 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.

Page 38

Glossary of Terms

ACH: Automated Clearing House.

Allowance for loan losses to total loans: Represents period-end allowance for loan losses divided by retained loans.

Average managed assets: Refers to total assets on the Firm’s Consolidated Balance Sheets plus credit card receivables that have been securitized and removed from the Firm’s Consolidated Balance Sheets, for periods ended prior to the January 1, 2010 adoption of new FASB guidance requiring the consolidation of the Firm-sponsored credit card securitization trusts.

Beneficial interest issued by consolidated VIEs: Represents the interest of third-party holders of debt/equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates. The underlying obligations of the VIEs consist of short-term borrowings (including 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 about a specific event (e.g., bankruptcy of a borrower), whichever is earlier.

Corporate/Private Equity: Includes Private Equity, Treasury and Chief Investment Office, and Corporate Other, which includes other centrally managed expense and discontinued operations.

Credit card securitizations: For periods ended prior to the January 1, 2010 adoption of new FASB guidance requiring the consolidation of the Firm-sponsored credit card securitization trusts, Card Services’ managed results exclude the impact of credit card securitization on total net revenue, the provision for credit losses, net charge-offs and loan receivables. Through securitization, the Firm transformed a portion of its credit card receivables into securities, which were sold to investors. The credit card receivables were removed from the Consolidated Balance Sheets through the transfer of the receivables to a trust and through the sale of undivided interests to investors that entitle the investors to specific cash flows generated from the credit card receivables. The Firm retained the remaining undivided interests as seller’s interests, which were 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 affected 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 investors, gross credit losses and other trust expense related to the securitized receivables, were reclassified into credit card income in the Consolidated Statements of Income.

FASB: Financial Accounting Standards Board.

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

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

Managed basis: For further discussion, see page 38 of this Financial Supplement.

Managed credit card receivables: Refers to credit card receivables on the Firm’s Consolidated Balance Sheets plus credit card receivables that have been securitized and removed from the Firm’s Consolidated Balance Sheets, for periods ended prior to the January 1, 2010 adoption of new FASB guidance requiring the consolidation of the Firm-sponsored credit card securitization trusts.

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

Merger costs: Reflects costs associated with the Washington Mutual and Bear Stearns mergers in 2008.

MSR risk management revenue: Includes changes in MSR asset fair value due to inputs or assumptions in model and derivative valuation adjustments.

Net charge-off ratio: Represents net charge-offs (annualized) divided by average retained loans for the reporting period.

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.

Page 39

JPMORGAN CHASE & CO.
Glossary of Terms

Participating securities: Represent unvested stock-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”), which are included in the EPS calculation using the two-class method. JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends.

Preprovision profit: Total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

Principal transactions: 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 fair value option was elected. Principal transactions revenue also includes private equity gains and losses.

Reported basis: Financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”), which excludes the impact of taxable-equivalent adjustments. For periods ended prior to the January 1, 2010 adoption of new FASB guidance requiring the consolidation of the Firm-sponsored credit card securitization trusts, the reported basis included the impact of credit card securitizations.

Retained loans: Loans that are held for investment excluding loans held-for-sale and loans at fair value.

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 (“VaR”): A measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.

Page 40

JPMORGAN CHASE & CO.
Glossary of Terms

INVESTMENT BANKING (IB)

IB Revenue:

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 portfoliorevenue includes 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 (RFS)

RFS 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.

Components of Mortgage Fees and Related Income:

1.	Production revenueincludes net gains or losses on originations and sales of prime and subprime mortgage loans, other production-related fees and losses related to the repurchase of previously-sold loans.
2.	Net mortgage servicing revenue

a)

Operating revenue comprises: all gross income earned from servicing third-party mortgage loans including stated service fees, excess service fees, late fees and other ancillary fees; and modeled servicing portfolio runoff (or time decay).

b)

Risk management comprises: changes in MSR asset fair value due to market-based inputs such as interest rates and volatility, as well as updates to assumptions used in the MSR valuation model; and 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.

RFS (continued)

Mortgage Origination Channels:

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 a banker in a Chase branch, real estate brokers, home builders or other third parties.
2.	Wholesale— A third-party mortgage broker refers loan applications to a mortgage banker at the Firm. Brokers are independent loan originators that specialize in finding and counseling borrowers but do not provide funding for loans. The Firm exited the broker channel during 2008.
3.	Correspondent— 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 (CS)

CS Selected Business Metrics:

1.	Sales volume— Dollar amount of cardmember purchases, net of returns.
2.	Open accounts— Accounts on file with charging privileges.
3.	Merchant acquiring business— A business that processes bank card transactions for merchants.
4.	Bank card volume— Dollar amount of transactions processed for merchants.
5.	Total transactions— Number of transactions and authorizations processed for merchants.

Page 41

JPMORGAN CHASE & CO.
Glossary of Terms

COMMERCIAL BANKING (CB)

CB Client Segments:

1.	Middle Market Bankingcovers corporate, municipal, financial institution and not-for-profit clients, with annual revenue generally ranging between $10 million and $500 million.
2.	Mid-Corporate Bankingcovers clients with annual revenue generally ranging between $500 million and $2 billion and focuses on clients that have broader investment banking needs.
3.	Commercial Term Lendingprimarily provides term financing to real estate investors/owners for multi-family properties as well as financing office, retail and industrial properties.
4.	Real Estate Bankingprovides full-service banking to investors and developers of institutional-grade real estate properties.

CB Revenue:

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.

CB Selected Business Metrics:

1.	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.
2.	IB revenue, gross — Represents total revenue related to investment banking products sold to CB clients.

TREASURY & SECURITIES SERVICES (TSS)

TSS firmwide 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.

TSS Selected Business Metrics:

1. 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 (AM)

Assets Under Management: Represent assets actively managed by Asset Management on behalf of Institutional, Retail, Private Banking, Private Wealth Management and JPMorgan Securities clients. Includes Committed Capital not Called, on which AM earns fees. Excludes assets managed by American Century Companies, Inc., in which the Firm has a 42% ownership interest at March 31, 2010.

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 Client Segments:

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.	JPMorgan Securitiesprovides investment advice and wealth management services to high-net-worth individuals, money managers, and small corporations.

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