JPMorgan Chase & Co. (JPM) 8-K Jpmorgan Chase Reports Third-quarter 2010 Net Income of $4.4 Billion, or $1.01 Per Share, on REVENUE1 of $24.3 Billion

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2010

JPMORGAN CHASE & CO.
TABLE OF CONTENTS

	Page(s)
Consolidated Results
Consolidated Financial Highlights	2-3
Statements of Income	4
Consolidated Balance Sheets	5
Condensed Average Balance Sheets and Annualized Yields	6
Reconciliation from Reported to Managed Summary	7
Business Detail
Line of Business Financial Highlights — Managed Basis	8
Investment Bank	9-11
Retail Financial Services	12-18
Card Services — Managed Basis	19-21
Commercial Banking	22-23
Treasury & Securities Services	24-25
Asset Management	26-29
Corporate/Private Equity	30-31
Credit-Related Information	32-37
Market Risk-Related Information	38
Supplemental Detail
Capital and Other Selected Balance Sheet Items	39
Per Share-Related Information	40
Non-GAAP Financial Measures	41
Glossary of Terms	42-45

Page 1

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
SELECTED INCOME STATEMENT DATA:
Reported Basis
Total net revenue	$	23,824		$	25,101		$	27,671		$	23,164		$	26,622			(5	)%		(11	)%	$	76,596		$	77,270			(1	)%
Total noninterest expense		14,398			14,631			16,124			12,004			13,455			(2	)		7			45,153			40,348			12
Pre-provision profit		9,426			10,470			11,547			11,160			13,167			(10	)		(28	)		31,443			36,922			(15	)
Provision for credit losses		3,223			3,363			7,010			7,284			8,104			(4	)		(60	)		13,596			24,731			(45	)
Income before extraordinary gain		4,418			4,795			3,326			3,278			3,512			(8	)		26			12,539			8,374			50
Extraordinary gain (a)		—			—			—			—			76			—		NM				—			76		NM
NET INCOME		4,418			4,795			3,326			3,278			3,588			(8	)		23			12,539			8,450			48
Managed Basis (b)
Total net revenue	$	24,335		$	25,613		$	28,172		$	25,236		$	28,780			(5	)		(15	)	$	78,120		$	83,411			(6	)
Total noninterest expense		14,398			14,631			16,124			12,004			13,455			(2	)		7			45,153			40,348			12
Pre-provision profit		9,937			10,982			12,048			13,232			15,325			(10	)		(35	)		32,967			43,063			(23	)
Provision for credit losses		3,223			3,363			7,010			8,901			9,802			(4	)		(67	)		13,596			29,557			(54	)
Income before extraordinary gain		4,418			4,795			3,326			3,278			3,512			(8	)		26			12,539			8,374			50
Extraordinary gain (a)		—			—			—			—			76			—		NM				—			76		NM
NET INCOME		4,418			4,795			3,326			3,278			3,588			(8	)		23			12,539			8,450			48
PER COMMON SHARE DATA:
Basic Earnings
Income before extraordinary gain		1.02			1.10			0.75			0.75			0.80			(7	)		28			2.86			1.50			91
Net income		1.02			1.10			0.75			0.75			0.82			(7	)		24			2.86			1.52			88
Diluted Earnings
Income before extraordinary gain		1.01			1.09			0.74			0.74			0.80			(7	)		26			2.84			1.50			89
Net income		1.01			1.09			0.74			0.74			0.82			(7	)		23			2.84			1.51			88
Cash dividends declared		0.05			0.05			0.05			0.05			0.05			—			—			0.15			0.15			—
Book value		42.29			40.99			39.38			39.88			39.12			3			8			42.29			39.12			8
Closing share price		38.06			36.61			44.75			41.67			43.82			4			(13	)		38.06			43.82			(13	)
Market capitalization		149,418			145,554			177,897			164,261			172,596			3			(13	)		149,418			172,596			(13	)
COMMON SHARES OUTSTANDING:
Weighted-average diluted shares (c)		3,971.9			4,005.6			3,994.7			3,974.1			3,962.0			(1	)		—			3,990.7			3,848.3			4
Common shares at period-end		3,925.8			3,975.8			3,975.4			3,942.0			3,938.7			(1	)		—			3,925.8			3,938.7			—
FINANCIAL RATIOS: (d)
Net income:
Return on common equity (“ROE”)		10	%		12	%		8	%		8	%		9%	(a)								10	%		6	%
Return on tangible common equity (“ROTCE”) (e)		15			17			12			12			14	(a)								15			9
Return on assets (“ROA”)		0.86			0.94			0.66			0.65			0.71	(a)								0.82			0.56
CAPITAL RATIOS:
Tier 1 capital ratio		11.9	(g)		12.1			11.5			11.1			10.2
Total capital ratio		15.5	(g)		15.8			15.1			14.8			13.9
Tier 1 common capital ratio (f)		9.5	(g)		9.6			9.1			8.8			8.2

(a)	On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank. 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. For the third quarter of 2009, and based on income before extraordinary gain, return on common equity remained at 9%, return on tangible common equity was 13% and return on assets was 0.70%.
(b)	For further discussion of managed basis, see Reconciliation from Reported to Managed Summary on page 7.
(c)	On June 5, 2009, the Firm issued $5.8 billion, or 163 million shares, of its common stock at $35.25 per share.
(d)	Ratios are based upon annualized amounts.
(e)	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. For further discussion of ROTCE, see page 41.
(f)	Tier 1 common capital ratio is Tier 1 common capital divided by risk-weighted assets. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. For further discussion of Tier 1 common capital ratio, see page 41.
(g)	Estimated.

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
SELECTED BALANCE SHEET DATA (Period-end) (a)
Total assets	$	2,141,595		$	2,014,019		$	2,135,796		$	2,031,989		$	2,041,009			6	%		5	%	$	2,141,595		$	2,041,009			5	%
Wholesale loans		220,597			216,826			214,290			204,175			218,953			2			1			220,597			218,953			1
Consumer loans		469,934			482,657			499,509			429,283			434,191			(3	)		8			469,934			434,191			8
Deposits		903,138			887,805			925,303			938,367			867,977			2			4			903,138			867,977			4
Common stockholders’ equity		166,030			162,968			156,569			157,213			154,101			2			8			166,030			154,101			8
Total stockholders’ equity		173,830			171,120			164,721			165,365			162,253			2			7			173,830			162,253			7
Deposits-to-loans ratio		131	%		127	%		130	%		148	%		133	%								131	%		133	%
Headcount		236,810			232,939			226,623			222,316			220,861			2			7			236,810			220,861			7
LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	1,286		$	1,381		$	2,471		$	1,901		$	1,921			(7	)		(33	)	$	5,138		$	4,998			3
Retail Financial Services		907			1,042			(131	)		(399	)		7			(13	)	NM				1,818			496			267
Card Services		735			343			(303	)		(306	)		(700	)		114		NM				775			(1,919	)	NM
Commercial Banking		471			693			390			224			341			(32	)		38			1,554			1,047			48
Treasury & Securities Services		251			292			279			237			302			(14	)		(17	)		822			989			(17	)
Asset Management		420			391			392			424			430			7			(2	)		1,203			1,006			20
Corporate/Private Equity		348			653			228			1,197			1,287			(47	)		(73	)		1,229			1,833			(33	)
NET INCOME	$	4,418		$	4,795		$	3,326		$	3,278		$	3,588			(8	)		23		$	12,539		$	8,450			48

(a) Effective January 1, 2010, the Firm adopted new guidance that amended the accounting for the transfer of financial assets and the consolidation of variable interest entities (“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 $87.7 billion and $92.2 billion of assets and liabilities, respectively, and decreasing stockholders’ equity and the Tier I capital ratio by $4.5 billion and 34 basis points, respectively. The reduction to stockholders’ equity was driven by the establishment of an allowance for loan losses of $7.5 billion (pretax) primarily related to receivables held in credit card securitization trusts that were consolidated at the adoption date. For further details regarding the Firm’s application and impact of the new accounting guidance, see Note 14 on pages 130-131, Note 15 on pages 131-142 and Note 22 on pages 149-152 of JPMorgan Chase’s March 31, 2010, Form 10-Q.

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
REVENUE
Investment banking fees	$	1,476		$	1,421		$	1,461		$	1,916		$	1,679			4	%		(12	)%	$	4,358		$	5,171			(16	)%
Principal transactions		2,341			2,090			4,548			838			3,860			12			(39	)		8,979			8,958			—
Lending- and deposit-related fees		1,563			1,586			1,646			1,765			1,826			(1	)		(14	)		4,795			5,280			(9	)
Asset management, administration and commissions		3,188			3,349			3,265			3,361			3,158			(5	)		1			9,802			9,179			7
Securities gains		102			1,000			610			381			184			(90	)		(45	)		1,712			729			135
Mortgage fees and related income		707			888			658			450			843			(20	)		(16	)		2,253			3,228			(30	)
Credit card income		1,477			1,495			1,361			1,844			1,710			(1	)		(14	)		4,333			5,266			(18	)
Other income		468			585			412			231			625			(20	)		(25	)		1,465			685			114
Noninterest revenue		11,322			12,414			13,961			10,786			13,885			(9	)		(18	)		37,697			38,496			(2	)
Interest income		15,606			15,719			16,845			15,615			16,260			(1	)		(4	)		48,170			50,735			(5	)
Interest expense		3,104			3,032			3,135			3,237			3,523			2			(12	)		9,271			11,961			(22	)
Net interest income		12,502			12,687			13,710			12,378			12,737			(1	)		(2	)		38,899			38,774			—
TOTAL NET REVENUE		23,824			25,101			27,671			23,164			26,622			(5	)		(11	)		76,596			77,270			(1	)
Provision for credit losses		3,223			3,363			7,010			7,284			8,104			(4	)		(60	)		13,596			24,731			(45	)
NONINTEREST EXPENSE
Compensation expense		6,661			7,616			7,276			5,112			7,311			(13	)		(9	)		21,553			21,816			(1	)
Occupancy expense		884			883			869			944			923			—			(4	)		2,636			2,722			(3	)
Technology, communications and equipment expense		1,184			1,165			1,137			1,182			1,140			2			4			3,486			3,442			1
Professional and outside services		1,718			1,685			1,575			1,682			1,517			2			13			4,978			4,550			9
Marketing		651			628			583			536			440			4			48			1,862			1,241			50
Other expense		3,082			2,419			4,441			2,262			1,767			27			74			9,942			5,332			86
Amortization of intangibles		218			235			243			256			254			(7	)		(14	)		696			794			(12	)
Merger costs		—			—			—			30			103			—		NM				—			451		NM
TOTAL NONINTEREST EXPENSE		14,398			14,631			16,124			12,004			13,455			(2	)		7			45,153			40,348			12
Income before income tax expense and extraordinary gain		6,203			7,107			4,537			3,876			5,063			(13	)		23			17,847			12,191			46
Income tax expense (a)		1,785			2,312			1,211			598			1,551			(23	)		15			5,308			3,817			39
Income before extraordinary gain		4,418			4,795			3,326			3,278			3,512			(8	)		26			12,539			8,374			50
Extraordinary gain (b)		—			—			—			—			76			—		NM				—			76		NM
NET INCOME	$	4,418		$	4,795		$	3,326		$	3,278		$	3,588			(8	)		23		$	12,539		$	8,450			48
DILUTED EARNINGS PER SHARE
Income before extraordinary gain	$	1.01		$	1.09		$	0.74		$	0.74		$	0.80			(7	)		26		$	2.84		$	1.50			89
Extraordinary gain		—			—			—			—			0.02			—		NM				—			0.01		NM
NET INCOME	$	1.01		$	1.09		$	0.74		$	0.74		$	0.82			(7	)		23		$	2.84		$	1.51			88
FINANCIAL RATIOS
Net income:
Return on equity		10	%		12	%		8	%		8	%		9	%(b)								10	%		6	%
Return on tangible common equity (c)		15			17			12			12			14	(b)								15			9
Return on assets		0.86			0.94			0.66			0.65			0.71	(b)								0.82			0.56
Effective income tax rate (a)		29			33			27			15			31									30			31
Overhead ratio		60			58			58			52			51									59			52
EXCLUDING IMPACT OF MERGER COSTS (d)
Income before extraordinary gain	$	4,418		$	4,795		$	3,326		$	3,278		$	3,512			(8	)		26		$	12,539		$	8,374			50
Merger costs (after-tax)		—			—			—			18			64			—		NM				—			280		NM
Income before extraordinary gain excl. merger costs	$	4,418		$	4,795		$	3,326		$	3,296		$	3,576			(8	)		24		$	12,539		$	8,654			45
Diluted Earnings Per Share:
Income before extraordinary gain	$	1.01		$	1.09		$	0.74		$	0.74		$	0.80			(7	)		26		$	2.84		$	1.50			89
Merger costs (after-tax)		—			—			—			0.01			0.02			—		NM				—			0.07		NM
Income before extraordinary gain excl. merger costs	$	1.01		$	1.09		$	0.74		$	0.75		$	0.82			(7	)		23		$	2.84		$	1.57			81

(a)	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.
(b)	On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank. 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. For the third quarter of 2009, and based on income before extraordinary gain, return on equity remained at 9%, return on tangible common equity was 13% and return on assets was 0.70%.
(c)	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. For further discussion of ROTCE, see page 41.
(d)	Net income excluding merger costs, a non-GAAP financial measure, is used by the Firm to facilitate comparison of results against the Firm’s ongoing operations and with other companies’ U.S. GAAP financial statements.

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

																September 30, 2010
																Change
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30
	2010			2010			2010			2009			2009			2010			2009
ASSETS (a)
Cash and due from banks	$	23,960		$	32,806		$	31,422		$	26,206		$	21,068			(27	)%		14	%
Deposits with banks		31,077			39,430			59,014			63,230			59,623			(21	)		(48	)
Federal funds sold and securities purchased under resale agreements		235,390			199,024			230,123			195,404			171,007			18			38
Securities borrowed		127,365			122,289			126,741			119,630			128,059			4			(1	)
Trading assets:
Debt and equity instruments		378,222			317,293			346,712			330,918			330,370			19			14
Derivative receivables		97,293			80,215			79,416			80,210			94,065			21			3
Securities		340,168			312,013			344,376			360,390			372,867			9			(9	)
Loans		690,531			699,483			713,799			633,458			653,144			(1	)		6
Less: Allowance for loan losses		34,161			35,836			38,186	��		31,602			30,633			(5	)		12
Loans, net of allowance for loan losses		656,370			663,647			675,613			601,856			622,511			(1	)		5
Accrued interest and accounts receivable		63,224			61,295			53,991			67,427			59,948			3			5
Premises and equipment		11,316			11,267			11,123			11,118			10,675			—			6
Goodwill		48,736			48,320			48,359			48,357			48,334			1			1
Mortgage servicing rights		10,305			11,853			15,531			15,531			13,663			(13	)		(25	)
Other intangible assets		3,982			4,178			4,383			4,621			4,862			(5	)		(18	)
Other assets		114,187			110,389			108,992			107,091			103,957			3			10
TOTAL ASSETS	$	2,141,595		$	2,014,019		$	2,135,796		$	2,031,989		$	2,041,009			6			5
LIABILITIES (a)
Deposits	$	903,138		$	887,805		$	925,303		$	938,367		$	867,977			2			4
Federal funds purchased and securities loaned or sold under repurchase agreements		314,161			237,455			295,171			261,413			310,219			32			1
Commercial paper		38,611			41,082			50,554			41,794			53,920			(6	)		(28	)
Other borrowed funds		51,642			44,431			48,981			55,740			50,824			16			2
Trading liabilities:
Debt and equity instruments		82,919			74,745			78,228			64,946			65,233			11			27
Derivative payables		74,902			60,137			62,741			60,125			69,214			25			8
Accounts payable and other liabilities		169,365			160,478			154,185			162,696			171,386			6			(1	)
Beneficial interests issued by consolidated VIEs		77,438			88,148			93,055			15,225			17,859			(12	)		334
Long-term debt		255,589			248,618			262,857			266,318			272,124			3			(6	)
TOTAL LIABILITIES		1,967,765			1,842,899			1,971,075			1,866,624			1,878,756			7			5
STOCKHOLDERS’ EQUITY (a)
Preferred stock		7,800			8,152			8,152			8,152			8,152			(4	)		(4	)
Common stock		4,105			4,105			4,105			4,105			4,105			—			—
Capital surplus		96,938			96,745			96,450			97,982			97,564			—			(1	)
Retained earnings		69,531			65,465			61,043			62,481			59,573			6			17
Accumulated other comprehensive income/(loss)		3,096			2,404			761			(91	)		283			29		NM
Shares held in RSU Trust, at cost		(68	)		(68	)		(68	)		(68	)		(86	)		—			21
Treasury stock, at cost		(7,572	)		(5,683	)		(5,722	)		(7,196	)		(7,338	)		(33	)		(3	)
TOTAL STOCKHOLDERS’ EQUITY		173,830			171,120			164,721			165,365			162,253			2			7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,141,595		$	2,014,019		$	2,135,796		$	2,031,989		$	2,041,009			6			5

(a) Effective January 1, 2010, the Firm adopted new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.

Page 5

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
AVERAGE BALANCES (a)
ASSETS
Deposits with banks	$	38,747		$	58,737		$	64,229		$	49,705		$	62,248			(34	)%		(38	)%	$	53,811		$	72,849			(26	)%
Federal funds sold and securities purchased under resale agreements		192,099			189,573			170,036			156,848			151,705			1			27			183,983			151,606			21
Securities borrowed		121,302			113,650			114,636			125,453			129,301			7			(6	)		116,554			124,127			(6	)
Trading assets — debt instruments		251,790			245,532			248,089			256,414			250,148			3			1			248,484			249,223			—
Securities		327,798			327,425			337,441			374,327			359,451			—			(9	)		330,853			331,981			—
Loans		693,791			705,189			725,136			642,406			665,386			(2	)		4			707,924			696,526			2
Other assets (b)		36,912			34,429			27,885			29,868			24,155			7			53			33,108			29,389			13
Total interest-earning assets		1,662,439			1,674,535			1,687,452			1,635,021			1,642,394			(1	)		1			1,674,717			1,655,701			1
Trading assets — equity instruments		96,200			95,080			83,674			74,936			66,790			1			44			91,697			64,363			42
Trading assets — derivative receivables		92,857			79,409			78,683			86,415			99,807			17			(7	)		83,702			118,560			(29	)
All other noninterest-earning assets		189,617			194,623			188,871			196,853			190,185			(3	)		—			191,040			196,016			(3	)
TOTAL ASSETS	$	2,041,113		$	2,043,647		$	2,038,680		$	1,993,225		$	1,999,176			—			2		$	2,041,156		$	2,034,640			—
LIABILITIES
Interest-bearing deposits	$	659,027		$	668,953		$	677,431		$	667,269		$	660,998			(1	)		—		$	668,403		$	689,660			(3	)
Federal funds purchased and securities loaned or sold under repurchase agreements		281,171			273,614			271,934			283,263			303,175			3			(7	)		275,607			273,368			1
Commercial paper		34,523			37,557			37,461			42,290			42,728			(8	)		(19	)		36,503			37,964			(4	)
Trading liabilities — debt instruments		73,278			72,276			65,154			63,048			47,467			1			54			70,266			43,637			61
Other borrowings and liabilities (c)		130,191			131,546			123,321			119,374			131,518			(1	)		(1	)		128,377			163,867			(22	)
Beneficial interests issued by consolidated VIEs		83,928			90,085			98,104			16,002			19,351			(7	)		334			90,654			14,569		NM
Long-term debt		252,097			256,089			262,503			268,476			271,281			(2	)		(7	)		256,858			268,158			(4	)
Total interest-bearing liabilities		1,514,215			1,530,120			1,535,908			1,459,722			1,476,518			(1	)		3			1,526,668			1,491,223			2
Noninterest-bearing deposits		213,700			209,615			200,075			203,092			191,821			2			11			207,846			196,270			6
Trading liabilities — equity instruments		6,560			5,216			5,728			8,372			12,376			26			(47	)		5,838			12,814			(54	)
Trading liabilities — derivative payables		69,350			62,547			59,053			63,423			75,458			11			(8	)		63,688			82,781			(23	)
All other noninterest-bearing liabilities		65,335			68,928			73,670			93,939			85,383			(5	)		(23	)		69,281			86,501			(20	)
TOTAL LIABILITIES		1,869,160			1,876,426			1,874,434			1,828,548			1,841,556			—			1			1,873,321			1,869,589			—
Preferred stock		7,991			8,152			8,152			8,152			8,152			(2	)		(2	)		8,098			22,729			(64	)
Common stockholders’ equity		163,962			159,069			156,094			156,525			149,468			3			10			159,737			142,322			12
TOTAL STOCKHOLDERS’ EQUITY		171,953			167,221			164,246			164,677			157,620			3			9			167,835			165,051			2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,041,113		$	2,043,647		$	2,038,680		$	1,993,225		$	1,999,176			—			2		$	2,041,156		$	2,034,640			—
AVERAGE RATES (a)
INTEREST-EARNING ASSETS
Deposits with banks		0.85	%		0.63	%		0.60	%		0.95	%		0.83	%								0.67	%		1.50	%
Federal funds sold and securities purchased under resale agreements		0.92			0.84			0.97			0.92			0.96									0.91			1.22
Securities borrowed		0.22			0.11			0.10			0.14			(0.09	)								0.15			(0.04	)
Trading assets — debt instruments		4.37			4.25			4.56			4.63			4.78									4.39			4.99
Securities		2.67			3.14			3.54			3.32			3.62									3.12			3.78
Loans		5.71			5.68			5.91			5.51			5.64									5.77			5.72
Other assets (b)		1.57			1.60			1.36			1.42			2.18									1.52			1.69
Total interest-earning assets		3.75			3.79			4.07			3.80			3.95									3.87			4.12
INTEREST-BEARING LIABILITIES
Interest-bearing deposits		0.51			0.53			0.51			0.53			0.65									0.51			0.76
Federal funds purchased and securities loaned or sold under repurchase agreements		(0.28	) (d)		(0.07	) (d)		(0.05	) (d)		0.08			0.20									(0.14	) (d)		0.25
Commercial paper		0.20			0.19			0.19			0.20			0.23									0.19			0.30
Trading liabilities — debt instruments		2.64			2.49			3.39			3.85			4.50									2.81			4.00
Other borrowings and liabilities (c)		0.54			0.50			0.56			0.83			0.69									0.53			0.81
Beneficial interests issued by consolidated VIEs		1.36			1.36			1.36			1.32			1.43									1.36			1.52
Long-term debt		2.34			1.97			1.95			2.01			2.09									2.09			2.47
Total interest-bearing liabilities		0.81			0.79			0.83			0.88			0.95									0.81			1.07
INTEREST RATE SPREAD		2.94	%		3.00	%		3.24	%		2.92	%		3.00	%								3.06	%		3.05	%
NET YIELD ON INTEREST-EARNING ASSETS		3.01	%		3.06	%		3.32	%		3.02	%		3.10	%								3.13	%		3.15	%
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		3.01	%		3.06	%		3.32	%		3.33	%		3.40	%								3.13	%		3.45	%

(a)	Effective January 1, 2010, the Firm adopted new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
(b)	Includes margin loans.
(c)	Includes brokerage customer payables and advances from Federal Home Loan Banks.
(d)	Reflects a benefit from the favorable market environments for dollar-roll financings.

Page 6

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 U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported basis,” provides the reader with an understanding of the Firm’s results that can be tracked consistently from year to year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements.

     In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on managed basis, including the effect of adopting, effective January 1, 2010, new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs, refer to the notes on Non-GAAP Financial Measures on page 41.

	QUARTERLY TRENDS																		YEAR-TO-DATE
													3Q10 Change											2010 Change
	3Q10		2Q10		1Q10		4Q09			3Q09			2Q10			3Q09			2010		2009			2009
CREDIT CARD INCOME
Credit card income — reported	$	1,477	$	1,495	$	1,361	$	1,844		$	1,710			(1	)%		(14	)%	$	4,333	$	5,266			(18	)%
Impact of:
Credit card securitizations	NA		NA		NA			(375	)		(285	)	NM			NM			NA			(1,119	)	NM
Credit card income — managed	$	1,477	$	1,495	$	1,361	$	1,469		$	1,425			(1	)		4		$	4,333	$	4,147			4
OTHER INCOME
Other income — reported	$	468	$	585	$	412	$	231		$	625			(20	)		(25	)	$	1,465	$	685			114
Impact of:
Fully tax-equivalent adjustments		415		416		411		397			371			—			12			1,242		1,043			19
Other income — managed	$	883	$	1,001	$	823	$	628		$	996			(12	)		(11	)	$	2,707	$	1,728			57
TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	11,322	$	12,414	$	13,961	$	10,786		$	13,885			(9	)		(18	)	$	37,697	$	38,496			(2	)
Impact of:
Credit card securitizations	NA		NA		NA			(375	)		(285	)	NM			NM			NA			(1,119	)	NM
Fully tax-equivalent adjustments		415		416		411		397			371			—			12			1,242		1,043			19
Total noninterest revenue — managed	$	11,737	$	12,830	$	14,372	$	10,808		$	13,971			(9	)		(16	)	$	38,939	$	38,420			1
NET INTEREST INCOME
Net interest income — reported	$	12,502	$	12,687	$	13,710	$	12,378		$	12,737			(1	)		(2	)	$	38,899	$	38,774			—
Impact of:
Credit card securitizations	NA		NA		NA			1,992			1,983		NM			NM			NA			5,945		NM
Fully tax-equivalent adjustments		96		96		90		58			89			—			8			282		272			4
Net interest income — managed	$	12,598	$	12,783	$	13,800	$	14,428		$	14,809			(1	)		(15	)	$	39,181	$	44,991			(13	)
TOTAL NET REVENUE
Total net revenue — reported	$	23,824	$	25,101	$	27,671	$	23,164		$	26,622			(5	)		(11	)	$	76,596	$	77,270			(1	)
Impact of:
Credit card securitizations	NA		NA		NA			1,617			1,698		NM			NM			NA			4,826		NM
Fully tax-equivalent adjustments		511		512		501		455			460			—			11			1,524		1,315			16
Total net revenue — managed	$	24,335	$	25,613	$	28,172	$	25,236		$	28,780			(5	)		(15	)	$	78,120	$	83,411			(6	)
PRE-PROVISION PROFIT
Total pre-provision profit — reported	$	9,426	$	10,470	$	11,547	$	11,160		$	13,167			(10	)		(28	)	$	31,443	$	36,922			(15	)
Impact of:
Credit card securitizations	NA		NA		NA			1,617			1,698		NM			NM			NA			4,826		NM
Fully tax-equivalent adjustments		511		512		501		455			460			—			11			1,524		1,315			16
Total pre-provision profit — managed	$	9,937	$	10,982	$	12,048	$	13,232		$	15,325			(10	)		(35	)	$	32,967	$	43,063			(23	)
PROVISION FOR CREDIT LOSSES
Provision for credit losses — reported	$	3,223	$	3,363	$	7,010	$	7,284		$	8,104			(4	)		(60	)	$	13,596	$	24,731			(45	)
Impact of:
Credit card securitizations	NA		NA		NA			1,617			1,698		NM			NM			NA			4,826		NM
Provision for credit losses — managed	$	3,223	$	3,363	$	7,010	$	8,901		$	9,802			(4	)		(67	)	$	13,596	$	29,557			(54	)
INCOME TAX EXPENSE
Income tax expense — reported	$	1,785	$	2,312	$	1,211	$	598		$	1,551			(23	)		15		$	5,308	$	3,817			39
Impact of:
Fully tax-equivalent adjustments		511		512		501		455			460			—			11			1,524		1,315			16
Income tax expense — managed	$	2,296	$	2,824	$	1,712	$	1,053		$	2,011			(19	)		14		$	6,832	$	5,132			33

NA: Not applicable.

Page 7

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
TOTAL NET REVENUE (FTE)
Investment Bank (a)	$	5,353		$	6,332		$	8,319		$	4,929		$	7,508			(15	)%		(29	)%	$	20,004		$	23,180			(14	)%
Retail Financial Services		7,646			7,809			7,776			7,669			8,218			(2	)		(7	)		23,231			25,023			(7	)
Card Services		4,253			4,217			4,447			5,148			5,159			1			(18	)		12,917			15,156			(15	)
Commercial Banking		1,527			1,486			1,416			1,406			1,459			3			5			4,429			4,314			3
Treasury & Securities Services		1,831			1,881			1,756			1,835			1,788			(3	)		2			5,468			5,509			(1	)
Asset Management		2,172			2,068			2,131			2,195			2,085			5			4			6,371			5,770			10
Corporate/Private Equity (a)		1,553			1,820			2,327			2,054			2,563			(15	)		(39	)		5,700			4,459			28
TOTAL NET REVENUE	$	24,335		$	25,613		$	28,172		$	25,236		$	28,780			(5	)		(15	)	$	78,120		$	83,411			(6	)
TOTAL PRE-PROVISION PROFIT
Investment Bank (a)	$	1,649		$	1,810		$	3,481		$	2,643		$	3,234			(9	)		(49	)	$	6,940		$	10,065			(31	)
Retail Financial Services		3,129			3,528			3,534			3,367			4,022			(11	)		(22	)		10,191			12,577			(19	)
Card Services		2,808			2,781			3,045			3,752			3,853			1			(27	)		8,634			11,171			(23	)
Commercial Banking		967			944			877			863			914			2			6			2,788			2,681			4
Treasury & Securities Services		421			482			431			444			508			(13	)		(17	)		1,334			1,622			(18	)
Asset Management		684			663			689			725			734			3			(7	)		2,036			1,767			15
Corporate/Private Equity (a)		279			774			(9	)		1,438			2,060			(64	)		(86	)		1,044			3,180			(67	)
TOTAL PRE-PROVISION PROFIT	$	9,937		$	10,982		$	12,048		$	13,232		$	15,325			(10	)		(35	)	$	32,967		$	43,063			(23	)
NET INCOME/(LOSS)
Investment Bank	$	1,286		$	1,381		$	2,471		$	1,901		$	1,921			(7	)		(33	)	$	5,138		$	4,998			3
Retail Financial Services		907			1,042			(131	)		(399	)		7			(13	)	NM				1,818			496			267
Card Services		735			343			(303	)		(306	)		(700	)		114		NM				775			(1,919	)	NM
Commercial Banking		471			693			390			224			341			(32	)		38			1,554			1,047			48
Treasury & Securities Services		251			292			279			237			302			(14	)		(17	)		822			989			(17	)
Asset Management		420			391			392			424			430			7			(2	)		1,203			1,006			20
Corporate/Private Equity		348			653			228			1,197			1,287			(47	)		(73	)		1,229			1,833			(33	)
TOTAL NET INCOME	$	4,418		$	4,795		$	3,326		$	3,278		$	3,588			(8	)		23		$	12,539		$	8,450			48
AVERAGE EQUITY (b)
Investment Bank	$	40,000		$	40,000		$	40,000		$	33,000		$	33,000			—			21		$	40,000		$	33,000			21
Retail Financial Services		28,000			28,000			28,000			25,000			25,000			—			12			28,000			25,000			12
Card Services		15,000			15,000			15,000			15,000			15,000			—			—			15,000			15,000			—
Commercial Banking		8,000			8,000			8,000			8,000			8,000			—			—			8,000			8,000			—
Treasury & Securities Services		6,500			6,500			6,500			5,000			5,000			—			30			6,500			5,000			30
Asset Management		6,500			6,500			6,500			7,000			7,000			—			(7	)		6,500			7,000			(7	)
Corporate/Private Equity		59,962			55,069			52,094			63,525			56,468			9			6			55,737			49,322			13
TOTAL AVERAGE EQUITY	$	163,962		$	159,069		$	156,094		$	156,525		$	149,468			3			10		$	159,737		$	142,322			12
RETURN ON EQUITY (b)
Investment Bank		13	%		14	%		25	%		23	%		23	%								17	%		20	%
Retail Financial Services		13			15			(2	)		(6	)		—									9			3
Card Services		19			9			(8	)		(8	)		(19	)								7			(17	)
Commercial Banking		23			35			20			11			17									26			17
Treasury & Securities Services		15			18			17			19			24									17			26
Asset Management		26			24			24			24			24									25			19

(a)

Corporate/Private Equity includes an adjustment to offset IB’s inclusion of the credit reimbursement from TSS in total net revenue; TSS reports the reimbursement to IB as a separate line on its income statement (not part of total revenue).

(b)

Equity for a line of business represents the amount the Firm believes the business would require if it were operating independently, incorporating sufficient capital to address economic risk measures, regulatory capital requirements and capital levels for similarly rated peers. Capital is also allocated to each line of business for, among other things, goodwill and other intangibles associated with acquisitions effected by the line of business. ROE is measured and internal targets for expected returns are established as a key measure of a business segment’s performance. 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 changes anticipated to occur in that line of business, and to reflect the competitive and regulatory landscape. The lines of business are now capitalized based on the Tier 1 common standard, rather than the Tier 1 capital standard.

Page 8

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,502		$	1,405		$	1,446		$	1,892		$	1,658			7	%		(9	)%	$	4,353		$	5,277			(18	)%
Principal transactions		1,129			2,105			3,931			84			2,714			(46	)		(58	)		7,165			8,070			(11	)
Lending- and deposit-related fees		205			203			202			174			185			1			11			610			490			24
Asset management, administration and commissions		565			633			563			608			633			(11	)		(11	)		1,761			2,042			(14	)
All other income (a)		61			86			49			(14	)		63			(29	)		(3	)		196			(101	)	NM
Noninterest revenue		3,462			4,432			6,191			2,744			5,253			(22	)		(34	)		14,085			15,778			(11	)
Net interest income		1,891			1,900			2,128			2,185			2,255			—			(16	)		5,919			7,402			(20	)
TOTAL NET REVENUE (b)		5,353			6,332			8,319			4,929			7,508			(15	)		(29	)		20,004			23,180			(14	)
Provision for credit losses		(142	)		(325	)		(462	)		(181	)		379			56		NM				(929	)		2,460		NM
NONINTEREST EXPENSE
Compensation expense		2,031			2,923			2,928			549			2,778			(31	)		(27	)		7,882			8,785			(10	)
Noncompensation expense		1,673			1,599			1,910			1,737			1,496			5			12			5,182			4,330			20
TOTAL NONINTEREST EXPENSE		3,704			4,522			4,838			2,286			4,274			(18	)		(13	)		13,064			13,115			—
Income before income tax expense		1,791			2,135			3,943			2,824			2,855			(16	)		(37	)		7,869			7,605			3
Income tax expense		505			754			1,472			923			934			(33	)		(46	)		2,731			2,607			5
NET INCOME	$	1,286		$	1,381		$	2,471		$	1,901		$	1,921			(7	)		(33	)	$	5,138		$	4,998			3
FINANCIAL RATIOS
ROE		13	%		14	%		25	%		23	%		23	%								17	%		20	%
ROA		0.68			0.78			1.48			1.12			1.12									0.97			0.94
Overhead ratio		69			71			58			46			57									65			57
Compensation expense as a percent of total net revenue (c)		38			46			35			11			37									39			38
REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	385		$	355		$	305		$	611		$	384			8			—		$	1,045		$	1,256			(17	)
Equity underwriting		333			354			413			549			681			(6	)		(51	)		1,100			2,092			(47	)
Debt underwriting		784			696			728			732			593			13			32			2,208			1,929			14
Total investment banking fees		1,502			1,405			1,446			1,892			1,658			7			(9	)		4,353			5,277			(18	)
Fixed income markets		3,123			3,563			5,464			2,735			5,011			(12	)		(38	)		12,150			14,829			(18	)
Equity markets		1,135			1,038			1,462			971			941			9			21			3,635			3,422			6
Credit portfolio (a)		(407	)		326			(53	)		(669	)		(102	)	NM				(299	)		(134	)		(348	)		61
Total net revenue	$	5,353		$	6,332		$	8,319		$	4,929		$	7,508			(15	)		(29	)	$	20,004		$	23,180			(14	)
REVENUE BY REGION (a)
Americas	$	2,857		$	3,935		$	4,562		$	2,872		$	3,850			(27	)		(26	)	$	11,354		$	12,284			(8	)
Europe/Middle East/Africa		1,531			1,537			2,814			1,502			2,912			—			(47	)		5,882			8,288			(29	)
Asia/Pacific		965			860			943			555			746			12			29			2,768			2,608			6
Total net revenue	$	5,353		$	6,332		$	8,319		$	4,929		$	7,508			(15	)		(29	)	$	20,004		$	23,180			(14	)

(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 $390 million, $401 million, $403 million, $357 million and $371 million for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $1.2 billion and $1.1 billion for year-to-date 2010 and 2009, respectively.
(c)	The compensation expense as a percentage of total net revenue ratio for the second quarter and year-to-date of 2010 excluding the payroll tax expense related to the U.K. Bank Payroll Tax on certain compensation awarded from December 9, 2009 to April 5, 2010 to relevant banking employees, which is a non-GAAP financial measure, was 37% in both periods. IB excludes this tax from the ratio because it enables comparability with prior periods.

Page 9

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
SELECTED BALANCE SHEET DATA (Period-end)
Loans (a):
Loans retained (b)	$	51,299		$	54,049		$	53,010		$	45,544		$	55,703			(5	)%		(8	)%	$	51,299		$	55,703			(8	)%
Loans held-for-sale & loans at fair value		2,252			3,221			3,594			3,567			4,582			(30	)		(51	)		2,252			4,582			(51	)
Total loans		53,551			57,270			56,604			49,111			60,285			(6	)		(11	)		53,551			60,285			(11	)
Equity		40,000			40,000			40,000			33,000			33,000			—			21			40,000			33,000			21
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	746,926		$	710,005		$	676,122		$	674,241		$	678,796			5			10		$	711,277		$	707,396			1
Trading assets — debt and equity instruments		300,517			296,031			284,085			285,363			270,695			2			11			293,605			269,668			9
Trading assets — derivative receivables		76,530			65,847			66,151			72,640			86,651			16			(12	)		69,547			103,929			(33	)
Loans (a):
Loans retained (b)		53,331			53,351			58,501			51,573			61,269			—			(13	)		55,042			66,479			(17	)
Loans held-for-sale & loans at fair value		2,678			3,530			3,150			4,158			4,981			(24	)		(46	)		3,118			8,745			(64	)
Total loans		56,009			56,881			61,651			55,731			66,250			(2	)		(15	)		58,160			75,224			(23	)
Adjusted assets (c)		539,459			527,520			506,635			519,403			515,718			2			5			524,658			545,235			(4	)
Equity		40,000			40,000			40,000			33,000			33,000			—			21			40,000			33,000			21
Headcount		26,373			26,279			24,977			24,654			24,828			—			6			26,373			24,828			6
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	33		$	28		$	697		$	685		$	750			18			(96	)	$	758		$	1,219			(38	)
Nonperforming assets:
Nonperforming loans:
Nonperforming loans retained (b)(d)		2,025			1,926			2,459			3,196			4,782			5			(58	)		2,025			4,782			(58	)
Nonperforming loans held-for-sale and loans at fair value		361			334			282			308			128			8			182			361			128			182
Total nonperforming loans		2,386			2,260			2,741			3,504			4,910			6			(51	)		2,386			4,910			(51	)
Derivative receivables		255			315			363			529			624			(19	)		(59	)		255			624			(59	)
Assets acquired in loan satisfactions		148			151			185			203			248			(2	)		(40	)		148			248			(40	)
Total nonperforming assets		2,789			2,726			3,289			4,236			5,782			2			(52	)		2,789			5,782			(52	)
Allowance for credit losses:
Allowance for loan losses		1,976			2,149			2,601			3,756			4,703			(8	)		(58	)		1,976			4,703			(58	)
Allowance for lending-related commitments		570			564			482			485			401			1			42			570			401			42
Total allowance for credit losses		2,546			2,713			3,083			4,241			5,104			(6	)		(50	)		2,546			5,104			(50	)
Net charge-off rate (b)(e)		0.25	%		0.21	%		4.83	%		5.27	%		4.86	%								1.84	%		2.45	%
Allow. for loan losses to period-end loans retained (b)(e)		3.85			3.98			4.91			8.25			8.44									3.85			8.44
Allow. for loan losses to average loans retained (b)(e)		3.71			4.03			4.45			7.28			7.68									3.59			7.07
Allow. for loan losses to nonperforming loans retained (b)(d)(e)		98			112			106			118			98									98			98
Nonperforming loans to total period-end loans		4.46			3.95			4.84			7.13			8.14									4.46			8.14
Nonperforming loans to total average loans		4.26			3.97			4.45			6.29			7.41									4.10			6.53

(a)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
(b)	Loans retained include credit portfolio loans, leveraged leases and other accrual loans, and exclude loans held-for-sale and loans accounted for at fair value.
(c)	Adjusted assets, a non-GAAP financial measure, is presented to assist the reader in comparing IB’s asset and capital levels to other investment banks in the securities industry. For further discussion of adjusted assets, see page 42.
(d)	Allowance for loan losses of $603 million, $617 million, $811 million, $1.3 billion and $1.8 billion were held against these nonperforming loans at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009, and September 30, 2009, respectively.
(e)	Loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage ratio and net charge-off rate.

Page 10

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
MARKET RISK — AVERAGE TRADING AND CREDIT
PORTFOLIO VAR - 95% CONFIDENCE LEVEL
Trading activities:
Fixed income	$	72		$	64		$	69		$	121		$	182			13	%		(60	)%	$	68		$	173			(61	)%
Foreign exchange		9			10			13			14			19			(10	)		(53	)		11			19			(42	)
Equities		21			20			24			21			19			5			11			22			55			(60	)
Commodities and other		13			20			15			17			23			(35	)		(43	)		16			22			(27	)
Diversification (a)		(38	)		(42	)		(49	)		(62	)		(97	)		10			61			(43	)		(101	)		57
Total trading VaR (b)		77			72			72			111			146			7			(47	)		74			168			(56	)
Credit portfolio VaR (c)		30			27			19			24			29			11			3			25			61			(59	)
Diversification (a)		(8	)		(9	)		(9	)		(11	)		(32	)		11			75			(9	)		(52	)		83
Total trading and credit portfolio VaR	$	99		$	90		$	82		$	124		$	143			10			(31	)	$	90		$	177			(49	)

	September 30, 2010 YTD					Full Year 2009
	Market					Market
	Share			Rankings		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	%		#2		8	%		#1
Global long-term debt (f)		7	%		#1		8	%		#1
Global equity and equity-related (g)		8	%		#1		12	%		#1
Global Announced M&A (h)		18	%		#2		23	%		#3
U.S. debt, equity and equity-related		11	%		#1		15	%		#1
U.S. syndicated loans		20	%		#2		22	%		#1
U.S. long-term debt (f)		11	%		#1		14	%		#1
U.S. equity and equity-related		16	%		#1		16	%		#2
U.S. Announced M&A (h)		23	%		#3		36	%		#2

(a)	Average value-at-risk (“ VaR”) was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects 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)	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, for example, correlation risk. Trading VaR does not include the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm. Trading VaR includes the estimated credit spread sensitivity of certain mortgage products.
(c)	Credit portfolio VaR includes the derivative credit valuation adjustments (“CVA”), hedges of the CVA and mark-to-market (“MTM”) hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not MTM.
(d)	Source: Dealogic. Global Investment Banking fees reflects the ranking of fees and market share. Remainder of rankings reflects transaction volume rank and market 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; and 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 transaction value at announcement; all other rankings are based upon transaction 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 for year-to-date 2010 and full-year 2009 reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S. involvement ranking.

Page 11

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	759		$	780		$	841		$	972		$	1,046			(3	)%		(27	)%	$	2,380		$	2,997			(21	)%
Asset management, administration and commissions		443			433			452			406			408			2			9			1,328			1,268			5
Mortgage fees and related income		705			886			655			481			873			(20	)		(19	)		2,246			3,313			(32	)
Credit card income		502			480			450			441			416			5			21			1,432			1,194			20
Other income		379			413			354			299			321			(8	)		18			1,146			829			38
Noninterest revenue		2,788			2,992			2,752			2,599			3,064			(7	)		(9	)		8,532			9,601			(11	)
Net interest income		4,858			4,817			5,024			5,070			5,154			1			(6	)		14,699			15,422			(5	)
TOTAL NET REVENUE (a)		7,646			7,809			7,776			7,669			8,218			(2	)		(7	)		23,231			25,023			(7	)
Provision for credit losses		1,548			1,715			3,733			4,229			3,988			(10	)		(61	)		6,996			11,711			(40	)
NONINTEREST EXPENSE
Compensation expense		1,915			1,842			1,770			1,722			1,728			4			11			5,527			4,990			11
Noncompensation expense		2,533			2,369			2,402			2,499			2,385			7			6			7,304			7,207			1
Amortization of intangibles		69			70			70			81			83			(1	)		(17	)		209			249			(16	)
TOTAL NONINTEREST EXPENSE		4,517			4,281			4,242			4,302			4,196			6			8			13,040			12,446			5
Income/(loss) before income tax expense/(benefit)		1,581			1,813			(199	)		(862	)		34			(13	)	NM				3,195			866			269
Income tax expense/(benefit)		674			771			(68	)		(463	)		27			(13	)	NM				1,377			370			272
NET INCOME/(LOSS)	$	907		$	1,042		$	(131	)	$	(399	)	$	7			(13	)	NM			$	1,818		$	496			267
FINANCIAL RATIOS
ROE		13	%		15	%		(2	)%		(6	)%		—	%								9	%		3	%
Overhead ratio		59			55			55			56			51									56			50
Overhead ratio excluding core deposit intangibles (b)		58			54			54			55			50									55			49
SELECTED BALANCE SHEET DATA (Period-end)
Assets	$	367,675		$	375,329		$	382,475		$	387,269		$	397,673			(2	)		(8	)	$	367,675		$	397,673			(8	)
Loans:
Loans retained		323,481			330,329			339,002			340,332			346,765			(2	)		(7	)		323,481			346,765			(7	)
Loans held-for-sale and loans at fair value (c)		13,071			12,599			11,296			14,612			14,303			4			(9	)		13,071			14,303			(9	)
Total loans		336,552			342,928			350,298			354,944			361,068			(2	)		(7	)		336,552			361,068			(7	)
Deposits		364,186			359,974			362,470			357,463			361,046			1			1			364,186			361,046			1
Equity		28,000			28,000			28,000			25,000			25,000			—			12			28,000			25,000			12
SELECTED BALANCE SHEET DATA (Average)
Assets		375,968			381,906			393,867			395,045			401,620			(2	)		(6	)		383,848			411,693			(7	)
Loans:
Loans retained		326,905			335,308			342,997			343,411			349,762			(3	)		(7	)		335,011			358,623			(7	)
Loans held-for-sale and loans at fair value (c)		15,683			14,426			17,055			17,670			19,025			9			(18	)		15,717			18,208			(14	)
Total loans		342,588			349,734			360,052			361,081			368,787			(2	)		(7	)		350,728			376,831			(7	)
Deposits		362,559			362,010			356,934			356,464			366,944			—			(1	)		360,521			371,482			(3	)
Equity		28,000			28,000			28,000			25,000			25,000			—			12			28,000			25,000			12
Headcount		119,424			116,879			112,616			108,971			106,951			2			12			119,424			106,951			12

(a)	Total net revenue included tax-equivalent adjustments associated with tax-exempt loans to municipalities and other qualified entities of $4 million, $5 million, $5 million, $4 million and $6 million for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $14 million and $18 million for year-to-date 2010 and 2009, respectively.
(b)	Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation 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 $69 million, $69 million, $70 million, $80 million and $83 million for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $208 million and $248 million for year-to-date 2010 and 2009, respectively.
(c)	Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $12.6 billion, $12.2 billion, $8.4 billion, $12.5 billion and $12.8 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively. Average balances of these loans totaled $15.3 billion, $12.5 billion, $14.2 billion, $16.0 billion and $17.7 billion for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $14.0 billion and $15.8 billion for year-to-date 2010 and 2009, respectively.

Page 12

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	1,548		$	1,761		$	2,438		$	2,738		$	2,550			(12	)%		(39	)%	$	5,747		$	7,375			(22	)%
Nonperforming loans:
Nonperforming loans retained		9,801			10,457			10,769			10,611			10,091			(6	)		(3	)		9,801			10,091			(3	)
Nonperforming loans held-for-sale and loans at fair value		166			176			217			234			242			(6	)		(31	)		166			242			(31	)
Total nonperforming loans (a) (b) (c)		9,967			10,633			10,986			10,845			10,333			(6	)		(4	)		9,967			10,333			(4	)
Nonperforming assets (a) (b) (c)		11,421			11,907			12,191			12,098			11,883			(4	)		(4	)		11,421			11,883			(4	)
Allowance for loan losses		16,154			16,152			16,200			14,776			13,286			—			22			16,154			13,286			22
Net charge-off rate (d)		1.88	%		2.11	%		2.88	%		3.16	%		2.89	%								2.29	%		2.75	%
Net charge-off rate excluding purchased credit-impaired loans (d) (e)		2.44			2.75			3.76			4.16			3.81									2.99			3.62
Allowance for loan losses to ending loans retained (d)		4.99			4.89			4.78			4.34			3.83									4.99			3.83
Allowance for loan losses to ending loans retained excluding purchased credit-impaired loans (d) (e)		5.36			5.26			5.16			5.09			4.63									5.36			4.63
Allowance for loan losses to nonperforming loans retained (a) (d) (e)		136			128			124			124			121									136			121
Nonperforming loans to total loans		2.96			3.10			3.14			3.06			2.86									2.96			2.86
Nonperforming loans to total loans excluding purchased credit-impaired loans (a)		3.81			4.00			4.05			3.96			3.72									3.81			3.72

(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 $10.2 billion, $10.1 billion, $10.5 billion, $9.0 billion and $7.0 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, that are 90 days past due and accruing at the guaranteed reimbursement rate; (2) real estate owned insured by U.S. government agencies of $1.7 billion, $1.4 billion, $707 million, $579 million and $579 million at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 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 (“FFELP”), of $572 million, $447 million, $581 million, $542 million and $511 million at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.
(d)	Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratio and the net charge-off rate.
(e)	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, $2.8 billion, $2.8 billion, $1.6 billion and $1.1 billion was recorded for these loans at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, which has also been excluded from applicable ratios. To date, no charge-offs have been recorded for these loans.

Page 13

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
RETAIL BANKING
Noninterest revenue	$	1,691		$	1,684		$	1,702		$	1,804		$	1,844			—	%		(8	)%	$	5,077		$	5,365			(5	)%
Net interest income		2,745			2,712			2,635			2,716			2,732			1			—			8,092			8,065			—
Total net revenue		4,436			4,396			4,337			4,520			4,576			1			(3	)		13,169			13,430			(2	)
Provision for credit losses		175			168			191			248			208			4			(16	)		534			894			(40	)
Noninterest expense		2,779			2,633			2,577			2,574			2,646			6			5			7,989			7,783			3
Income before income tax expense		1,482			1,595			1,569			1,698			1,722			(7	)		(14	)		4,646			4,753			(2	)
Net income	$	848		$	914		$	898		$	1,027		$	1,043			(7	)		(19	)	$	2,660		$	2,876			(8	)
Overhead ratio		63	%		60	%		59	%		57	%		58	%								61	%		58	%
Overhead ratio excluding core deposit intangibles (a)		61			58			58			55			56									59			56
BUSINESS METRICS (in billions)
Business banking origination volume	$	1.2		$	1.2		$	0.9		$	0.7		$	0.5			(8	)		91		$	3.3		$	1.6			99
End-of-period loans owned		16.6			16.6			16.8			17.0			17.4			—			(5	)		16.6			17.4			(5	)
End-of-period deposits:
Checking		124.2			123.5			123.8			121.9			115.5			1			8			124.2			115.5			8
Savings		162.4			161.8			163.4			153.4			151.6			—			7			162.4			151.6			7
Time and other		48.9			50.5			53.2			58.0			66.6			(3	)		(27	)		48.9			66.6			(27	)
Total end-of-period deposits		335.5			335.8			340.4			333.3			333.7			—			1			335.5			333.7			1
Average loans owned		16.6			16.7			16.9			17.2			17.7			(1	)		(6	)		16.7			18.0			(7	)
Average deposits:
Checking		123.5			123.6			119.7			116.4			114.0			—			8			122.3			112.6			9
Savings		162.2			162.8			158.6			153.1			151.2			—			7			161.2			150.1			7
Time and other		49.8			51.4			55.6			60.3			74.4			(3	)		(33	)		52.2			81.8			(36	)
Total average deposits		335.5			337.8			333.9			329.8			339.6			(1	)		(1	)		335.7			344.5			(3	)
Deposit margin		3.08	%		3.05	%		3.02	%		3.06	%		2.99	%								3.05	%		2.92	%
Average assets	$	27.7		$	28.4		$	28.9		$	28.2		$	28.1			(2	)		(1	)	$	28.3		$	29.1			(3	)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs		175			168			191			248			208			4			(16	)		534			594			(10	)
Net charge-off rate		4.18	%		4.04	%		4.58	%		5.72	%		4.66	%								4.28	%		4.41	%
Nonperforming assets	$	913		$	920		$	872		$	839		$	816			(1	)		12		$	913		$	816			12
RETAIL BRANCH BUSINESS METRICS
Investment sales volume		5,798			5,756			5,956			5,851			6,243			1			(7	)		17,510			15,933			10
Number of:
Branches		5,192			5,159			5,155			5,154			5,126			1			1			5,192			5,126			1
ATMs		15,815			15,654			15,549			15,406			15,038			1			5			15,815			15,038			5
Personal bankers		21,438			20,170			19,003			17,991			16,941			6			27			21,438			16,941			27
Sales specialists		7,123			6,785			6,315			5,912			5,530			5			29			7,123			5,530			29
Active online customers (in thousands)		17,167			16,584			16,208			15,424			13,852			4			24			17,167			13,852			24
Checking accounts (in thousands)		27,014			26,351			25,830			25,712			25,546			3			6			27,014			25,546			6

(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 $69 million, $69 million, $70 million, $80 million and $83 million for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $208 million and $248 million for year-to-date 2010 and 2009, respectively.

Page 14

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
MORTGAGE BANKING & OTHER CONSUMER LENDING
Noninterest revenue (a)	$	1,076		$	1,256		$	1,018		$	801		$	1,201			(14	)%		(10	)%	$	3,350		$	4,256			(21	)%
Net interest income		809			792			893			802			834			2			(3	)		2,494			2,363			6
Total net revenue		1,885			2,048			1,911			1,603			2,035			(8	)		(7	)		5,844			6,619			(12	)
Provision for credit losses		176			175			217			242			222			1			(21	)		568			993			(43	)
Noninterest expense		1,348			1,243			1,246			1,163			1,139			8			18			3,837			3,381			13
Income before income tax expense		361			630			448			198			674			(43	)		(46	)		1,439			2,245			(36	)
Net income (a)	$	207		$	364		$	257		$	266		$	412			(43	)		(50	)	$	828		$	1,377			(40	)
Overhead ratio		72	%		61	%		65	%		73	%		56	%								66	%		51	%
BUSINESS METRICS (in billions)
End-of-period loans owned:
Auto loans	$	48.2		$	47.5		$	47.4		$	46.0		$	44.3			1			9		$	48.2		$	44.3			9
Mortgage (b)		13.8			13.2			13.7			11.9			10.1			5			37			13.8			10.1			37
Student loans and other		14.6			15.1			17.4			15.8			15.6			(3	)		(6	)		14.6			15.6			(6	)
Total end-of-period loans owned		76.6			75.8			78.5			73.7			70.0			1			9			76.6			70.0			9
Average loans owned:
Auto loans		47.7			47.5			46.9			45.3			43.3			—			10			47.4			43.0			10
Mortgage (b)		13.6			13.6			12.5			10.6			8.9			—			53			13.3			8.3			60
Student loans and other		14.8			16.7			18.4			15.6			15.3			(11	)		(3	)		16.6			16.5			1
Total average loans owned (c)		76.1			77.8			77.8			71.5			67.5			(2	)		13			77.3			67.8			14
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Auto loans		67			58			102			148			159			16			(58	)		227			479			(53	)
Mortgage		10			13			6			—			7			(23	)		43			29			14			107
Student loans and other		82			150			64			92			60			(45	)		37			296			195			52
Total net charge-offs		159			221			172			240			226			(28	)		(30	)		552			688			(20	)
Net charge-off rate:
Auto loans		0.56	%		0.49	%		0.88	%		1.30	%		1.46	%								0.64	%		1.49	%
Mortgage		0.30			0.39			0.20			—			0.32									0.30			0.24
Student loans and other		2.21			4.04			1.64			2.59			1.66									2.62			1.80
Total net charge-off rate (c)		0.83			1.17			0.93			1.36			1.35									0.98			1.41
30+ day delinquency rate (d) (e)		1.54			1.42			1.47			1.75			1.76									1.54			1.76
Nonperforming assets (f) (g)	$	1,052		$	1,013		$	1,006		$	912		$	872			4			21		$	1,052		$	872			21

(a)	Losses related to the repurchase of previously-sold loans are recorded as a reduction of production revenue. These losses totaled $1.5 billion, $667 million, $432 million, $672 million and $465 million for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $2.6 billion and $940 million for year-to-date 2010 and 2009, respectively. The losses resulted in a negative impact on net income of $853 million, $388 million, $252 million, $413 million and $286 million for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $1.5 billion and $578 million for year-to-date 2010 and 2009, respectively.
(b)	Predominantly represents prime loans repurchased from Government National Mortgage Association (“Ginnie Mae”) pools, which are insured by U.S. government agencies.
(c)	Total average loans owned includes loans held-for-sale of $338 million, $1.9 billion, $2.9 billion, $1.7 billion and $1.3 billion for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $1.7 billion and $2.4 billion for year-to-date 2010 and 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 $11.1 billion, $10.9 billion, $11.2 billion, $9.7 billion and $7.7 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively. These amounts are excluded as reimbursement of insured amounts 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 FFELP, of $1.0 billion, $988 million, $965 million, $942 million and $903 million at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.
(f)	Nonperforming loans and assets exclude: (1) mortgage loans insured by U.S. government agencies of $10.2 billion, $10.1 billion, $10.5 billion, $9.0 billion and $7.0 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, that are 90 days past due and accruing at the guaranteed reimbursement rate; (2) real estate owned insured by U.S. government agencies of $1.7 billion, $1.4 billion, $707 million, $579 million and $579 million at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 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 FFELP, of $572 million, $447 million, $581 million, $542 million and $511 million at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.
(g)	During the third quarter of 2010, $147 million of nonperforming assets pertaining to the second quarter of 2010 were reclassified from Real Estate Portfolios to Mortgage Banking & Other Consumer Lending.

Page 15

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
MORTGAGE BANKING & OTHER CONSUMER LENDING (continued)
Origination volume:
Mortgage origination volume by channel
Retail	$	19.2		$	15.3		$	11.4		$	12.3		$	13.3			25	%		44	%	$	45.9		$	41.6			10	%
Wholesale (a)		0.2			0.4			0.4			0.6			0.7			(50	)		(71	)		1.0			3.0			(67	)
Correspondent (a)		19.1			14.7			16.0			20.0			21.1			30			(9	)		49.8			61.0			(18	)
CNT (negotiated transactions)		2.4			1.8			3.9			1.9			2.0			33			20			8.1			10.3			(21	)
Total mortgage origination volume		40.9			32.2			31.7			34.8			37.1			27			10			104.8			115.9			(10	)
Student loans		0.2			0.1			1.6			0.6			1.5			100			(87	)		1.9			3.6			(47	)
Auto		6.1			5.8			6.3			5.9			6.9			5			(12	)		18.2			17.8			2
Application volume:
Mortgage application volume by channel
Retail		34.6			27.8			20.3			17.4			17.8			24			94			82.7			73.5			13
Wholesale (a)		0.6			0.6			0.8			0.7			1.1			—			(45	)		2.0			4.2			(52	)
Correspondent (a)		30.7			23.5			18.2			25.3			26.6			31			15			72.4			85.5			(15	)
Total mortgage application volume		65.9			51.9			39.3			43.4			45.5			27			45			157.1			163.2			(4	)
Average mortgage loans held-for-sale and loans at fair value (b)		15.6			12.6			14.5			16.2			18.0			24			(13	)		14.2			16.2			(12	)
Average assets		125.8			123.2			124.8			119.5			115.2			2			9			124.6			113.4			10
Repurchase reserve (ending)		3.0			2.0			1.6			1.4			0.9			50			233			3.0			0.9			233
Third-party mortgage loans serviced (ending)		1,012.7			1,055.2			1,075.0			1,082.1			1,098.9			(4	)		(8	)		1,012.7			1,098.9			(8	)
Third-party mortgage loans serviced (average)		1,028.6			1,063.7			1,076.4			1,088.8			1,104.4			(3	)		(7	)		1,056.3			1,129.2			(6	)
MSR net carrying value (ending)		10.3			11.8			15.5			15.5			13.6			(13	)		(24	)		10.3			13.6			(24	)
Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending)		1.02	%		1.12	%		1.44	%		1.43	%		1.24	%								1.02	%		1.24	%
Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average)		0.44			0.45			0.42			0.44			0.44									0.44			0.44
MSR revenue multiple (c)		2.32	x		2.49	x		3.43	x		3.25	x		2.82	x								2.32	x		2.82	x
SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions)
Net production revenue:
Production revenue	$	1,233		$	676		$	433		$	480		$	395			82			212		$	2,342		$	1,635			43
Repurchase losses		(1,464	)		(667	)		(432	)		(672	)		(465	)		(119	)		(215	)		(2,563	)		(940	)		(173	)
Net production revenue		(231	)		9			1			(192	)		(70	)	NM				(230	)		(221	)		695		NM
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue		1,153			1,186			1,107			1,221			1,220			(3	)		(5	)		3,446			3,721			(7	)
Other changes in MSR asset fair value		(604	)		(620	)		(605	)		(657	)		(712	)		3			15			(1,829	)		(2,622	)		30
Total operating revenue		549			566			502			564			508			(3	)		8			1,617			1,099			47
Risk management:
Changes in MSR asset fair value due to inputs or assumptions in model		(1,497	)		(3,584	)		(96	)		1,762			(1,099	)		58			(36	)		(5,177	)		4,042		NM
Derivative valuation adjustments and other		1,884			3,895			248			(1,653	)		1,534			(52	)		23			6,027			(2,523	)	NM
Total risk management		387			311			152			109			435			24			(11	)		850			1,519			(44	)
Total net mortgage servicing revenue		936			877			654			673			943			7			(1	)		2,467			2,618			(6	)
Mortgage fees and related income	$	705		$	886		$	655		$	481		$	873			(20	)		(19	)	$	2,246		$	3,313			(32	)

(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 $15.3 billion, $12.5 billion, $14.2 billion, $16.0 billion and $17.7 billion for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $14.0 billion and $15.8 billion for year-to-date 2010 and 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 16

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	21		$	52		$	32		$	(6	)	$	19			(60	)%		11	%	$	105		$	(20	)	NM		%
Net interest income		1,304			1,313			1,496			1,552			1,588			(1	)		(18	)		4,113			4,994			(18	)
Total net revenue		1,325			1,365			1,528			1,546			1,607			(3	)		(18	)		4,218			4,974			(15	)
Provision for credit losses		1,197			1,372			3,325			3,739			3,558			(13	)		(66	)		5,894			9,824			(40	)
Noninterest expense		390			405			419			565			411			(4	)		(5	)		1,214			1,282			(5	)
Income/(loss) before income tax expense/(benefit)		(262	)		(412	)		(2,216	)		(2,758	)		(2,362	)		36			89			(2,890	)		(6,132	)		53
Net income/(loss)	$	(148	)	$	(236	)	$	(1,286	)	$	(1,692	)	$	(1,448	)		37			90		$	(1,670	)	$	(3,757	)		56
Overhead ratio		29	%		30	%		27	%		37	%		26	%								29	%		26	%
BUSINESS METRICS (in billions)
LOANS EXCLUDING PURCHASED CREDIT-IMPAIRED LOANS (a)
End-of-period loans owned:
Home equity	$	91.7		$	94.8		$	97.7		$	101.4		$	104.8			(3	)		(13	)	$	91.7		$	104.8			(13	)
Prime mortgage		42.9			44.6			46.8			47.5			50.0			(4	)		(14	)		42.9			50.0			(14	)
Subprime mortgage		12.0			12.6			13.2			12.5			13.3			(5	)		(10	)		12.0			13.3			(10	)
Option ARMs		8.4			8.5			8.6			8.5			8.9			(1	)		(6	)		8.4			8.9			(6	)
Other		0.9			1.0			1.0			0.7			0.7			(10	)		29			0.9			0.7			29
Total end-of-period loans owned		155.9			161.5			167.3			170.6			177.7			(3	)		(12	)		155.9			177.7			(12	)
Average loans owned:
Home equity		93.3			96.3			99.5			103.3			106.6			(3	)		(12	)		96.4			110.0			(12	)
Prime mortgage		43.8			45.7			47.9			48.8			51.7			(4	)		(15	)		45.8			54.8			(16	)
Subprime mortgage		12.3			13.1			13.8			12.8			13.6			(6	)		(10	)		13.0			14.3			(9	)
Option ARMs		8.4			8.6			8.7			8.7			8.9			(2	)		(6	)		8.5			8.9			(4	)
Other		1.0			1.0			1.1			0.7			0.8			—			25			1.0			0.9			11
Total average loans owned		158.8			164.7			171.0			174.3			181.6			(4	)		(13	)		164.7			188.9			(13	)
PURCHASED CREDIT-IMPAIRED LOANS (a)
End-of-period loans owned:
Home equity		25.0			25.5			26.0			26.5			27.1			(2	)		(8	)		25.0			27.1			(8	)
Prime mortgage		17.9			18.5			19.2			19.7			20.2			(3	)		(11	)		17.9			20.2			(11	)
Subprime mortgage		5.5			5.6			5.8			6.0			6.1			(2	)		(10	)		5.5			6.1			(10	)
Option ARMs		26.4			27.3			28.3			29.0			29.8			(3	)		(11	)		26.4			29.8			(11	)
Total end-of-period loans owned		74.8			76.9			79.3			81.2			83.2			(3	)		(10	)		74.8			83.2			(10	)
Average loans owned:
Home equity		25.2			25.7			26.2			26.7			27.4			(2	)		(8	)		25.7			27.9			(8	)
Prime mortgage		18.2			18.8			19.5			20.0			20.5			(3	)		(11	)		18.8			21.1			(11	)
Subprime mortgage		5.6			5.8			5.9			6.1			6.2			(3	)		(10	)		5.8			6.5			(11	)
Option ARMs		26.7			27.7			28.6			29.3			30.2			(4	)		(12	)		27.7			30.8			(10	)
Total average loans owned		75.7			78.0			80.2			82.1			84.3			(3	)		(10	)		78.0			86.3			(10	)
TOTAL REAL ESTATE PORTFOLIOS
End-of-period loans owned:
Home equity		116.7			120.3			123.7			127.9			131.9			(3	)		(12	)		116.7			131.9			(12	)
Prime mortgage		60.8			63.1			66.0			67.2			70.2			(4	)		(13	)		60.8			70.2			(13	)
Subprime mortgage		17.5			18.2			19.0			18.5			19.4			(4	)		(10	)		17.5			19.4			(10	)
Option ARMs		34.8			35.8			36.9			37.5			38.7			(3	)		(10	)		34.8			38.7			(10	)
Other		0.9			1.0			1.0			0.7			0.7			(10	)		29			0.9			0.7			29
Total end-of-period loans owned		230.7			238.4			246.6			251.8			260.9			(3	)		(12	)		230.7			260.9			(12	)
Average loans owned:
Home equity		118.5			122.0			125.7			130.0			134.0			(3	)		(12	)		122.1			137.9			(11	)
Prime mortgage		62.0			64.5			67.4			68.8			72.2			(4	)		(14	)		64.6			75.9			(15	)
Subprime mortgage		17.9			18.9			19.7			18.9			19.8			(5	)		(10	)		18.8			20.8			(10	)
Option ARMs		35.1			36.3			37.3			38.0			39.1			(3	)		(10	)		36.2			39.7			(9	)
Other		1.0			1.0			1.1			0.7			0.8			—			25			1.0			0.9			11
Total average loans owned		234.5			242.7			251.2			256.4			265.9			(3	)		(12	)		242.7			275.2			(12	)
Average assets		222.5			230.3			240.2			247.3			258.3			(3	)		(14	)		230.9			269.2			(14	)
Home equity origination volume		0.3			0.3			0.3			0.4			0.5			—			(40	)		0.9			2.0			(55	)

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

Page 17

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
REAL ESTATE PORTFOLIOS (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding purchased credit-impaired loans (a)
Home equity	$	730		$	796		$	1,126		$	1,177		$	1,142			(8	)%		(36	)%	$	2,652		$	3,505			(24	)%
Prime mortgage		255			251			453			568			518			2			(51	)		959			1,304			(26	)
Subprime mortgage		206			282			457			452			422			(27	)		(51	)		945			1,196			(21	)
Option ARMs		11			22			23			29			15			(50	)		(27	)		56			34			65
Other		12			21			16			24			19			(43	)		(37	)		49			54			(9	)
Total net charge-offs		1,214			1,372			2,075			2,250			2,116			(12	)		(43	)		4,661			6,093			(24	)
Net charge-off rate excluding purchased credit-impaired loans (a)
Home equity		3.10	%		3.32	%		4.59	%		4.52	%		4.25	%								3.68	%		4.26	%
Prime mortgage		2.31			2.20			3.84			4.62			3.98									2.80			3.18
Subprime mortgage		6.64			8.63			13.43			14.01			12.31									9.72			11.18
Option ARMs		0.52			1.03			1.07			1.32			0.67									0.88			0.51
Other		4.76			8.42			5.90			13.60			9.42									6.55			8.02
Total net charge-off rate excluding purchased credit-impaired loans		3.03			3.34			4.92			5.12			4.62									3.78			4.31
Net charge-off rate — reported
Home equity		2.44			2.62			3.63			3.59			3.38									2.90			3.40
Prime mortgage		1.63			1.56			2.73			3.28			2.85									1.98			2.30
Subprime mortgage		4.57			5.98			9.41			9.49			8.46									6.72			7.69
Option ARMs		0.12			0.24			0.25			0.30			0.15									0.21			0.11
Other		4.76			8.42			5.90			13.60			9.42									6.55			8.02
Total net charge-off rate — reported		2.05			2.27			3.35			3.48			3.16									2.57			2.96
30+ day delinquency rate excluding purchased credit-impaired loans (b)		6.77			6.88			7.28			7.73			7.46									6.77			7.46
Allowance for loan losses	$	14,111		$	14,127		$	14,127		$	12,752		$	11,261			—			25		$	14,111		$	11,261			25
Nonperforming assets (c) (d)		9,456			9,974			10,313			10,347			10,196			(5	)		(7	)		9,456			10,196			(7	)
Allowance for loan losses to ending loans retained		6.12	%		5.93	%		5.73	%		5.06	%		4.32	%								6.12	%		4.32	%
Allowance for loan losses to ending loans retained excluding purchased credit-impaired loans (a)		7.25			7.01			6.76			6.55			5.72									7.25			5.72

(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, $2.8 billion, $2.8 billion, $1.6 billion and $1.1 billion was recorded for these loans at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, which has also been excluded from the applicable ratios. To date, no charge-offs have been recorded for these loans.
(b)	The delinquency rate for purchased credit-impaired loans was 28.07%, 27.91%, 28.49%, 27.79% and 25.56% at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 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.
(d)	During the third quarter of 2010, $147 million of nonperforming assets pertaining to the second quarter of 2010 were reclassified from Real Estate Portfolios to Mortgage Banking & Other Consumer Lending.

Page 18

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
INCOME STATEMENT (a)
REVENUE
Credit card income	$	864		$	908		$	813		$	931		$	916			(5	)%		(6	)%	$	2,585		$	2,681			(4	)%
All other income		(58	)		(47	)		(55	)		(46	)		(85	)		(23	)		32			(160	)		(646	)		75
Noninterest revenue		806			861			758			885			831			(6	)		(3	)		2,425			2,035			19
Net interest income		3,447			3,356			3,689			4,263			4,328			3			(20	)		10,492			13,121			(20	)
TOTAL NET REVENUE		4,253			4,217			4,447			5,148			5,159			1			(18	)		12,917			15,156			(15	)
Provision for credit losses		1,633			2,221			3,512			4,239			4,967			(26	)		(67	)		7,366			14,223			(48	)
NONINTEREST EXPENSE
Compensation expense		316			327			330			336			354			(3	)		(11	)		973			1,040			(6	)
Noncompensation expense		1,023			986			949			938			829			4			23			2,958			2,552			16
Amortization of intangibles		106			123			123			122			123			(14	)		(14	)		352			393			(10	)
TOTAL NONINTEREST EXPENSE		1,445			1,436			1,402			1,396			1,306			1			11			4,283			3,985			7
Income/(loss) before income tax expense/(benefit)		1,175			560			(467	)		(487	)		(1,114	)		110		NM				1,268			(3,052	)	NM
Income tax expense/(benefit)		440			217			(164	)		(181	)		(414	)		103		NM				493			(1,133	)	NM
NET INCOME/(LOSS)	$	735		$	343		$	(303	)	$	(306	)	$	(700	)		114		NM			$	775		$	(1,919	)	NM
Memo: Net securitization income/(loss)	NA			NA			NA			$	17		$	(43	)	NM			NM			NA			$	(491	)	NM
FINANCIAL RATIOS (a)
ROE		19	%		9	%		(8	)%		(8	)%		(19	)%								7	%		(17	)%
Overhead ratio		34			34			32			27			25									33			26
Percentage of average outstandings:
Net interest income		9.76			9.20			9.60			10.36			10.15									9.52			10.00
Provision for credit losses		4.63			6.09			9.14			10.30			11.65									6.68			10.84
Noninterest revenue		2.28			2.36			1.97			2.15			1.95									2.20			1.55
Risk adjusted margin (b)		7.42			5.47			2.43			2.21			0.45									5.04			0.71
Noninterest expense		4.09			3.94			3.65			3.39			3.06									3.89			3.04
Pretax income/(loss) (ROO) (c)		3.33			1.54			(1.22	)		(1.18	)		(2.61	)								1.15			(2.32	)
Net income/(loss)		2.08			0.94			(0.79	)		(0.74	)		(1.64	)								0.70			(1.46	)
BUSINESS METRICS
Sales volume (in billions)	$	79.6		$	78.1		$	69.4		$	78.8		$	74.7			2			7		$	227.1		$	215.3			5
New accounts opened (in millions)		2.7			2.7			2.5			3.2			2.4			—			13			7.9			7.0			13
Open accounts (in millions)		89.0			88.9			88.9			93.3			93.6			—			(5	)		89.0			93.6			(5	)
Merchant acquiring business
Bank card volume (in billions)	$	117.0		$	117.1		$	108.0		$	110.4		$	103.5			—			13		$	342.1		$	299.3			14
Total transactions (in billions)		5.2			5.0			4.7			4.9			4.5			4			16			14.9			13.1			14

(a)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
(b)	Represents total net revenue less provision for credit losses.
(c)	Pretax return on average managed outstandings.
NA:	Not applicable.

Page 19

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
SELECTED BALANCE SHEET DATA (Period-end)
Loans:
Loans on balance sheets	$	136,436		$	142,994		$	149,260		$	78,786		$	78,215			(5	)%		74	%	$	136,436		$	78,215			74	%
Securitized loans (a)	NA			NA			NA				84,626			87,028		NM			NM			NA				87,028		NM
Total loans		136,436			142,994			149,260			163,412			165,243			(5	)		(17	)		136,436			165,243			(17	)
Equity		15,000			15,000			15,000			15,000			15,000			—			—			15,000			15,000			—
SELECTED BALANCE SHEET DATA (Average)
Managed assets		141,029			146,816			156,968			184,535			192,141			(4	)		(27	)		148,212			195,517			(24	)
Loans:
Loans on balance sheets		140,059			146,302			155,790			77,759			83,146			(4	)		68			147,326			90,154			63
Securitized loans (a)	NA			NA			NA				85,452			86,017		NM			NM			NA				85,352		NM
Total average loans		140,059			146,302			155,790			163,211			169,163			(4	)		(17	)		147,326			175,506			(16	)
Equity		15,000			15,000			15,000			15,000			15,000			—			—			15,000			15,000			—
Headcount		21,398			21,529			22,478			22,676			22,850			(1	)		(6	)		21,398			22,850			(6	)
CREDIT QUALITY STATISTICS (a)
Net charge-offs	$	3,133		$	3,721		$	4,512		$	3,839		$	4,392			(16	)		(29	)	$	11,366		$	12,238			(7	)
Net charge-off rate (b)		8.87	%		10.20	%		11.75	%		9.33	%		10.30	%								10.31	%		9.32	%
Delinquency rates
30+ day (b)		4.57	%		4.96	%		5.62	%		6.28	%		5.99	%								4.57	%		5.99	%
90+ day (b)		2.41			2.76			3.15			3.59			2.76									2.41			2.76
Allowance for loan losses (c)	$	13,029		$	14,524		$	16,032		$	9,672		$	9,297			(10	)		40		$	13,029		$	9,297			40
Allowance for loan losses to period-end loans (c) (d)		9.55	%		10.16	%		10.74	%		12.28	%		11.89	%								9.55	%		11.89	%
KEY STATS — WASHINGTON MUTUAL ONLY
Loans	$	14,504		$	15,615		$	17,204		$	19,653		$	21,163			(7	)		(31	)	$	14,504		$	21,163			(31	)
Average loans		15,126			16,455			18,607			20,377			22,287			(8	)		(32	)		16,716			24,742			(32	)
Net interest income (e)		16.27	%		14.97	%		15.06	%		17.12	%		17.04	%								15.40	%		17.11	%
Risk adjusted margin (e) (f)		12.90			15.43			2.47			(0.66	)		(4.45	)								9.91			(1.01	)
Net charge-off rate (g)		15.58			19.53			24.14			20.49			21.94									20.02			18.32
30+ day delinquency rate (g)		8.29			8.86			10.49			12.72			12.44									8.29			12.44
90+ day delinquency rate (g)		4.54			5.17			6.32			7.76			6.21									4.54			6.21
KEY STATS — EXCLUDING WASHINGTON MUTUAL
Loans	$	121,932		$	127,379		$	132,056		$	143,759		$	144,080			(4	)		(15	)	$	121,932		$	144,080			(15	)
Average loans		124,933			129,847			137,183			142,834			146,876			(4	)		(15	)		130,610			150,764			(13	)
Net interest income (e)		8.98	%		8.47	%		8.86	%		9.40	%		9.10	%								8.77	%		8.83	%
Risk adjusted margin (e) (f)		6.76			4.21			2.43			2.62			1.19									4.41			0.99
Net charge-off rate		8.06			9.02			10.54			8.64			9.41									9.24			8.39
30+ day delinquency rate		4.13			4.48			4.99			5.52			5.38									4.13			5.38
90+ day delinquency rate		2.16			2.47			2.74			3.13			2.48									2.16			2.48

(a)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. As a result of the consolidation of the credit card securitization trusts, reported and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
(b)	Results reflect the impact of purchase accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust (“WMMT”) in the second quarter of 2009. The net charge-off rate for the quarters ended September 30, 2010 and June 30, 2010, and delinquency rates as of September 30, 2010, June 30, 2010 and March 31, 2010 were not affected.
(c)	Based on loans on the Consolidated Balance Sheets.
(d)	Includes $1.0 billion and $3.0 billion of loans at December 31, 2009 and September 30, 2009, respectively, held by the WMMT, 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 and September 30, 2009. Excluding these loans, the allowance for loan losses to period-end loans would have been 12.43% and 12.36%, 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 WMMT in the second quarter of 2009.
NA:	Not applicable.

Page 20

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
INCOME STATEMENT DATA
Credit card income
Reported	$	864		$	908		$	813		$	1,306		$	1,201			(5	)%		(28	)%	$	2,585		$	3,800			(32	)%
Securitization adjustments (a)	NA			NA			NA				(375	)		(285	)	NM			NM			NA				(1,119	)	NM
Managed credit card income	$	864		$	908		$	813		$	931		$	916			(5	)		(6	)	$	2,585		$	2,681			(4	)
Net interest income
Reported	$	3,447		$	3,356		$	3,689		$	2,271		$	2,345			3			47		$	10,492		$	7,176			46
Securitization adjustments (a)	NA			NA			NA				1,992			1,983		NM			NM			NA				5,945		NM
Managed net interest income	$	3,447		$	3,356		$	3,689		$	4,263		$	4,328			3			(20	)	$	10,492		$	13,121			(20	)
Total net revenue
Reported	$	4,253		$	4,217		$	4,447		$	3,531		$	3,461			1			23		$	12,917		$	10,330			25
Securitization adjustments (a)	NA			NA			NA				1,617			1,698		NM			NM			NA				4,826		NM
Managed total net revenue	$	4,253		$	4,217		$	4,447		$	5,148		$	5,159			1			(18	)	$	12,917		$	15,156			(15	)
Provision for credit losses
Reported	$	1,633		$	2,221		$	3,512		$	2,622		$	3,269			(26	)		(50	)	$	7,366		$	9,397			(22	)
Securitization adjustments (a)	NA			NA			NA				1,617			1,698		NM			NM			NA				4,826		NM
Managed provision for credit losses	$	1,633		$	2,221		$	3,512		$	4,239		$	4,967			(26	)		(67	)	$	7,366		$	14,223			(48	)
BALANCE SHEETS — AVERAGE BALANCES
Total average assets
Reported	$	141,029		$	146,816		$	156,968		$	102,748		$	109,362			(4	)		29		$	148,212		$	113,134			31
Securitization adjustments (a)	NA			NA				N/A			81,787			82,779		NM			NM			NA				82,383		NM
Managed average assets	$	141,029		$	146,816		$	156,968		$	184,535		$	192,141			(4	)		(27	)	$	148,212		$	195,517			(24	)
CREDIT QUALITY STATISTICS
Net charge-offs
Reported	$	3,133		$	3,721		$	4,512		$	2,222		$	2,694			(16	)		16		$	11,366		$	7,412			53
Securitization adjustments (a)	NA			NA			NA				1,617			1,698		NM			NM			NA				4,826		NM
Managed net charge-offs	$	3,133		$	3,721		$	4,512		$	3,839		$	4,392			(16	)		(29	)	$	11,366		$	12,238			(7	)
Net charge-off rates
Reported		8.87	%		10.20	%		11.75	%		11.34	%		12.85	%								10.31	%		10.99	%
Securitized (a)	NA			NA			NA				7.51			7.83								NA				7.56
Managed net charge-off rate		8.87			10.20			11.75			9.33			10.30									10.31			9.32

(a)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. As a result of the consolidation of the credit card securitization trusts, reported and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
NA:	Not applicable.

Page 21

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	269		$	280		$	277		$	279		$	269			(4	)%		—	%	$	826		$	802			3	%
Asset management, administration and commissions		36			36			37			35			35			—			3			109			105			4
All other income (a)		242			230			186			149			170			5			42			658			447			47
Noninterest revenue		547			546			500			463			474			—			15			1,593			1,354			18
Net interest income		980			940			916			943			985			4			(1	)		2,836			2,960			(4	)
TOTAL NET REVENUE (b)		1,527			1,486			1,416			1,406			1,459			3			5			4,429			4,314			3
Provision for credit losses		166			(235	)		214			494			355		NM				(53	)		145			960			(85	)
NONINTEREST EXPENSE
Compensation expense		210			196			206			183			196			7			7			612			593			3
Noncompensation expense		341			337			324			351			339			1			1			1,002			1,008			(1	)
Amortization of intangibles		9			9			9			9			10			—			(10	)		27			32			(16	)
TOTAL NONINTEREST EXPENSE		560			542			539			543			545			3			3			1,641			1,633			—
Income before income tax expense		801			1,179			663			369			559			(32	)		43			2,643			1,721			54
Income tax expense		330			486			273			145			218			(32	)		51			1,089			674			62
NET INCOME	$	471		$	693		$	390		$	224		$	341			(32	)		38		$	1,554		$	1,047			48
Revenue by product:
Lending	$	693		$	649		$	658		$	639		$	675			7			3		$	2,000		$	2,024			(1	)
Treasury services		670			665			638			645			672			1			—			1,973			1,997			(1	)
Investment banking		120			115			105			108			99			4			21			340			286			19
Other		44			57			15			14			13			(23	)		238			116			7		NM
Total Commercial Banking revenue	$	1,527		$	1,486		$	1,416		$	1,406		$	1,459			3			5		$	4,429		$	4,314			3
IB revenue, gross (c)	$	344		$	333		$	311		$	328		$	301			3			14		$	988		$	835			18
Revenue by client segment:
Middle Market Banking	$	766		$	767		$	746		$	760		$	771			—			(1	)	$	2,279		$	2,295			(1	)
Commercial Term Lending		256			237			229			191			232			8			10			722			684			6
Mid-Corporate Banking		304			285			263			277			278			7			9			852			825			3
Real Estate Banking		118			125			100			100			121			(6	)		(2	)		343			361			(5	)
Other		83			72			78			78			57			15			46			233			149			56
Total Commercial Banking revenue	$	1,527		$	1,486		$	1,416		$	1,406		$	1,459			3			5		$	4,429		$	4,314			3
FINANCIAL RATIOS
ROE		23	%		35	%		20	%		11	%		17	%								26	%		17	%
Overhead ratio		37			36			38			39			37									37			38

(a)	Revenue from investment banking products sold to Commercial Banking (“CB”) clients and commercial card fee revenue is included in all other income.
(b)	Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities as well as tax-exempt income from municipal bond activity of $59 million, $49 million, $45 million, $53 million and $43 million for quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $153 million and $117 million for year-to-date 2010 and 2009, respectively.
(c)	Represents the total revenue related to investment banking products sold to CB clients.

Page 22

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
SELECTED BALANCE SHEET DATA (Period-end)
Loans:
Loans retained	$	97,738		$	95,090		$	95,435		$	97,108		$	101,608			3	%		(4	)%	$	97,738		$	101,608			(4	)%
Loans held-for-sale and loans at fair value		399			446			294			324			288			(11	)		39			399			288			39
Total loans		98,137			95,536			95,729			97,432			101,896			3			(4	)		98,137			101,896			(4	)
Equity		8,000			8,000			8,000			8,000			8,000			—			—			8,000			8,000			—
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	130,237		$	133,309		$	133,013		$	129,948		$	130,316			(2	)		—		$	132,176		$	137,248			(4	)
Loans:
Loans retained		96,657			95,521			96,317			99,794			103,752			1			(7	)		96,166			108,654			(11	)
Loans held-for-sale and loans at fair value		384			391			297			386			297			(2	)		29			358			294			22
Total loans		97,041			95,912			96,614			100,180			104,049			1			(7	)		96,524			108,948			(11	)
Liability balances		137,853			136,770			133,142			122,471			109,293			1			26			135,939			110,012			24
Equity		8,000			8,000			8,000			8,000			8,000			—			—			8,000			8,000			—
Average loans by client segment:
Middle Market Banking	$	35,299		$	34,424		$	33,919		$	34,794		$	36,200			3			(2	)	$	34,552		$	38,357			(10	)
Commercial Term Lending		37,509			35,956			36,057			36,507			36,943			4			2			36,513			36,907			(1	)
Mid-Corporate Banking		11,807			11,875			12,258			13,510			14,933			(1	)		(21	)		11,978			16,774			(29	)
Real Estate Banking		8,983			9,814			10,438			11,133			11,547			(8	)		(22	)		9,740			12,380			(21	)
Other		3,443			3,843			3,942			4,236			4,426			(10	)		(22	)		3,741			4,530			(17	)
Total Commercial Banking loans	$	97,041		$	95,912		$	96,614		$	100,180		$	104,049			1			(7	)	$	96,524		$	108,948			(11	)
Headcount		4,805			4,808			4,701			4,151			4,177			—			15			4,805			4,177			15
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	218		$	176		$	229		$	483		$	291			24			(25	)	$	623		$	606			3
Nonperforming loans:
Nonperforming loans retained (a)		2,898			3,036			2,947			2,764			2,284			(5	)		27			2,898			2,284			27
Nonperforming loans held-for-sale and loans at fair value		48			41			49			37			18			17			167			48			18			167
Total nonperforming loans		2,946			3,077			2,996			2,801			2,302			(4	)		28			2,946			2,302			28
Nonperforming assets		3,227			3,285			3,186			2,989			2,461			(2	)		31			3,227			2,461			31
Allowance for credit losses:
Allowance for loan losses		2,661			2,686			3,007			3,025			3,063			(1	)		(13	)		2,661			3,063			(13	)
Allowance for lending-related commitments		241			267			359			349			300			(10	)		(20	)		241			300			(20	)
Total allowance for credit losses		2,902			2,953			3,366			3,374			3,363			(2	)		(14	)		2,902			3,363			(14	)
Net charge-off rate		0.89	%		0.74	%		0.96	%		1.92	%		1.11	%								0.87	%		0.75	%
Allowance for loan losses to period-end loans retained		2.72			2.82			3.15			3.12			3.01									2.72			3.01
Allowance for loan losses to average loans retained		2.75			2.81			3.12			3.03			2.95									2.77			2.82
Allowance for loan losses to nonperforming loans retained		92			88			102			109			134									92			134
Nonperforming loans to total period-end loans		3.00			3.22			3.13			2.87			2.26									3.00			2.26
Nonperforming loans to total average loans		3.04			3.21			3.10			2.80			2.21									3.05			2.11

(a) Allowance for loan losses of $535 million, $586 million, $612 million, $581 million and $496 million were held against nonperforming loans retained at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively.

Page 23

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	318		$	313		$	311		$	330		$	316			2	%		1	%	$	942		$	955			(1	)%
Asset management, administration and commissions		644			705			659			675			620			(9	)		4			2,008			1,956			3
All other income		210			209			176			212			201			—			4			595			619			(4	)
Noninterest revenue		1,172			1,227			1,146			1,217			1,137			(4	)		3			3,545			3,530			—
Net interest income		659			654			610			618			651			1			1			1,923			1,979			(3	)
TOTAL NET REVENUE		1,831			1,881			1,756			1,835			1,788			(3	)		2			5,468			5,509			(1	)
Provision for credit losses		(2	)		(16	)		(39	)		53			13			88		NM				(57	)		2		NM
Credit reimbursement to IB (a)		(31	)		(30	)		(30	)		(30	)		(31	)		(3	)		—			(91	)		(91	)		—
NONINTEREST EXPENSE
Compensation expense		701			697			657			668			629			1			11			2,055			1,876			10
Noncompensation expense		693			684			650			704			633			1			9			2,027			1,954			4
Amortization of intangibles		16			18			18			19			18			(11	)		(11	)		52			57			(9	)
TOTAL NONINTEREST EXPENSE		1,410			1,399			1,325			1,391			1,280			1			10			4,134			3,887			6
Income before income tax expense		392			468			440			361			464			(16	)		(16	)		1,300			1,529			(15	)
Income tax expense		141			176			161			124			162			(20	)		(13	)		478			540			(11	)
NET INCOME	$	251		$	292		$	279		$	237		$	302			(14	)		(17	)	$	822		$	989			(17	)
REVENUE BY BUSINESS
Treasury Services	$	937		$	926		$	882		$	918		$	919			1			2		$	2,745		$	2,784			(1	)
Worldwide Securities Services		894			955			874			917			869			(6	)		3			2,723			2,725			—
TOTAL NET REVENUE	$	1,831		$	1,881		$	1,756		$	1,835		$	1,788			(3	)		2		$	5,468		$	5,509			(1	)
FINANCIAL RATIOS
ROE		15	%		18	%		17	%		19	%		24	%								17	%		26	%
Overhead ratio		77			74			75			76			72									76			71
Pretax margin ratio		21			25			25			20			26									24			28
SELECTED BALANCE SHEET DATA (Period-end)
Loans (b)	$	26,899		$	24,513		$	24,066		$	18,972		$	19,693			10			37		$	26,899		$	19,693			37
Equity		6,500			6,500			6,500			5,000			5,000			—			30			6,500			5,000			30
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	42,445		$	42,868		$	38,273		$	36,589		$	33,117			(1	)		28		$	41,211		$	35,753			15
Loans (b)		24,337			22,137			19,578			18,888			17,062			10			43			22,035			18,231			21
Liability balances		242,517			246,690			247,905			250,695			231,502			(2	)		5			245,684			247,219			(1	)
Equity		6,500			6,500			6,500			5,000			5,000			—			30			6,500			5,000			30
Headcount		28,544			27,943			27,223			26,609			26,389			2			8			28,544			26,389			8

(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)	Loan balances include wholesale overdrafts, commercial card and trade finance loans.

Page 24

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																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
TSS FIRMWIDE DISCLOSURES
TS revenue — reported	$	937		$	926		$	882		$	918		$	919			1	%		2	%	$	2,745		$	2,784			(1	)%
TS revenue reported in CB		670			665			638			645			672			1			—			1,973			1,997			(1	)
TS revenue reported in other lines of business		64			62			56			57			63			3			2			182			188			(3	)
TS firmwide revenue (a)		1,671			1,653			1,576			1,620			1,654			1			1			4,900			4,969			(1	)
Worldwide Securities Services revenue		894			955			874			917			869			(6	)		3			2,723			2,725			—
TSS firmwide revenue (a)	$	2,565		$	2,608		$	2,450		$	2,537		$	2,523			(2	)		2		$	7,623		$	7,694			(1	)
TS firmwide liability balances (average) (b)	$	302,921		$	303,224		$	305,105		$	289,024		$	261,059			—			16		$	303,742		$	269,568			13
TSS firmwide liability balances (average) (b)		380,370			383,460			381,047			373,166			340,795			(1	)		12			381,623			357,231			7
TSS FIRMWIDE FINANCIAL RATIOS
TS firmwide overhead ratio (c)		55	%		54	%		55	%		54	%		52	%								55	%		52	%
TSS firmwide overhead ratio (c)		65			64			65			66			62									65			61
FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)	$	15,863		$	14,857		$	15,283		$	14,885		$	14,887			7			7		$	15,863		$	14,887			7
Number of:
US$ ACH transactions originated (in millions)		978			970			949			975			965			1			1			2,897			2,921			(1	)
Total US$ clearing volume (in thousands)		30,779			30,531			28,669			29,493			28,604			1			8			89,979			83,983			7
International electronic funds transfer volume (in thousands) (d)		57,333			58,484			55,754			53,354			48,533			(2	)		18			171,571			139,994			23
Wholesale check volume (in millions)		531			526			478			514			530			1			—			1,535			1,670			(8	)
Wholesale cards issued (in thousands) (e)		28,404			28,066			27,352			27,138			26,977			1			5			28,404			26,977			5
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	1		$	—		$	—		$	—		$	—		NM			NM			$	1		$	19			(95	)
Nonperforming loans		14			14			14			14			14			—			—			14			14			—
Allowance for credit losses:
Allowance for loan losses		54			48			57			88			15			13			260			54			15			260
Allowance for lending-related commitments		52			68			76			84			104			(24	)		(50	)		52			104			(50	)
Total allowance for credit losses		106			116			133			172			119			(9	)		(11	)		106			119			(11	)
Net charge-offs rate		0.02	%		—	%		—	%		—	%		—	%								0.01	%		0.14	%
Allowance for loan losses to period-end loans		0.20			0.20			0.24			0.46			0.08									0.20			0.08
Allowance for loan losses to average loans		0.22			0.22			0.29			0.47			0.09									0.25			0.08
Allowance for loan losses to nonperforming loans		386			343			407		NM				107									386			107
Nonperforming loans to period-end loans		0.05			0.06			0.06			0.07			0.07									0.05			0.07
Nonperforming loans to average loans		0.06			0.06			0.07			0.07			0.08									0.06			0.08

(a)	TSS firmwide revenue includes foreign exchange (“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. The total FX revenue generated was $143 million, $175 million, $137 million, $162 million and $154 million for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $455 million and $499 million for year-to-date 2010 and 2009, respectively.
(b)	Firmwide liability balances include liability balances recorded in CB.
(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 Automated Clearing House (“ACH”) and clearing volume.
(e)	Wholesale cards issued and outstanding include U.S. domestic commercial, stored value, prepaid and government electronic benefit card products.

Page 25

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,498		$	1,522		$	1,508		$	1,632		$	1,443			(2)	%		4	%	$	4,528		$	3,989			14	%
All other income		282			177			266			191			238			59			18			725			560			29
Noninterest revenue		1,780			1,699			1,774			1,823			1,681			5			6			5,253			4,549			15
Net interest income		392			369			357			372			404			6			(3	)		1,118			1,221			(8	)
TOTAL NET REVENUE		2,172			2,068			2,131			2,195			2,085			5			4			6,371			5,770			10
Provision for credit losses		23			5			35			58			38			360			(39	)		63			130			(52	)
NONINTEREST EXPENSE
Compensation expense		914			861			910			907			858			6			7			2,685			2,468			9
Noncompensation expense		557			527			514			543			474			6			18			1,598			1,478			8
Amortization of intangibles		17			17			18			20			19			—			(11	)		52			57			(9	)
TOTAL NONINTEREST EXPENSE		1,488			1,405			1,442			1,470			1,351			6			10			4,335			4,003			8
Income before income tax expense		661			658			654			667			696			—			(5	)		1,973			1,637			21
Income tax expense		241			267			262			243			266			(10	)		(9	)		770			631			22
NET INCOME	$	420		$	391		$	392		$	424		$	430			7			(2	)	$	1,203		$	1,006			20
REVENUE BY CLIENT SEGMENT
Private Banking (a)	$	1,181		$	1,153		$	1,150		$	1,166		$	1,080			2			9		$	3,484		$	3,154			10
Institutional		506			455			544			584			534			11			(5	)		1,505			1,481			2
Retail		485			460			437			445			471			5			3			1,382			1,135			22
TOTAL NET REVENUE	$	2,172		$	2,068		$	2,131		$	2,195		$	2,085			5			4		$	6,371		$	5,770			10
FINANCIAL RATIOS
ROE		26	%		24	%		24	%		24	%		24	%								25	%		19	%
Overhead ratio		69			68			68			67			65									68			69
Pretax margin ratio		30			32			31			30			33									31			28
SELECTED BALANCE SHEET DATA (Period-end)
Loans	$	41,408		$	38,744		$	37,088		$	37,755		$	35,925			7			15		$	41,408		$	35,925			15
Equity		6,500			6,500			6,500			7,000			7,000			—			(7	)		6,500			7,000			(7	)
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	64,911		$	63,426		$	62,525		$	63,036		$	60,345			2			8		$	63,629		$	59,309			7
Loans		39,417			37,407			36,602			36,137			34,822			5			13			37,819			34,567			9
Deposits		87,841			86,453			80,662			77,352			73,649			2			19			85,012			76,888			11
Equity		6,500			6,500			6,500			7,000			7,000			—			(7	)		6,500			7,000			(7	)
Headcount		16,510			16,019			15,321			15,136			14,919			3			11			16,510			14,919			11

(a) Private Banking is a combination of the previously disclosed client segments: Private Bank, Private Wealth Management and JPMorgan Securities.

Page 26

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
BUSINESS METRICS
Number of:
Client advisors		2,209			2,055			1,987			1,934			1,891			7	%		17	%		2,209			1,891			17	%
Retirement planning services participants (in thousands)		1,665			1,653			1,651			1,628			1,620			1			3			1,665			1,620			3
JPMorgan Securities brokers (a)		419			402			390			376			365			4			15			419			365			15
% of customer assets in 4 & 5 Star Funds (b)		42	%		43	%		43	%		42	%		39	%		(2	)		8			42	%		39	%		8
% of AUM in 1stand 2nd quartiles: (c)
1 year		67	%		58	%		55	%		57	%		60	%		16			12			67	%		60	%		12
3 years		65	%		67	%		67	%		62	%		70	%		(3	)		(7	)		65	%		70	%		(7	)
5 years		74	%		78	%		77	%		74	%		74	%		(5	)		—			74	%		74	%		—
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	13		$	27		$	28		$	35		$	17			(52	)		(24	)	$	68		$	82			(17	)
Nonperforming loans		294			309			475			580			409			(5	)		(28	)		294			409			(28	)
Allowance for credit losses:
Allowance for loan losses		257			250			261			269			251			3			2			257			251			2
Allowance for lending-related commitments		3			3			13			9			5			—			(40	)		3			5			(40	)
Total allowance for credit losses		260			253			274			278			256			3			2			260			256			2
Net charge-off rate		0.13	%		0.29	%		0.31	%		0.38	%		0.19	%								0.24	%		0.32	%
Allowance for loan losses to period-end loans		0.62			0.65			0.70			0.71			0.70									0.62			0.70
Allowance for loan losses to average loans		0.65			0.67			0.71			0.74			0.72									0.68			0.73
Allowance for loan losses to nonperforming loans		87			81			55			46			61									87			61
Nonperforming loans to period-end loans		0.71			0.80			1.28			1.54			1.14									0.71			1.14
Nonperforming loans to average loans		0.75			0.83			1.30			1.61			1.17									0.78			1.18

(a)	JPMorgan Securities was formerly known as Bear Stearns Private Client Services prior to January 1, 2010.
(b)	Derived from Morningstar for the U.S., the U.K., Luxembourg, France, Hong Kong and Taiwan; and Nomura for Japan.
(c)	Quartile ranking sourced from Lipper for the U.S. and Taiwan; Morningstar for the U.K., Luxembourg, France and Hong Kong; and Nomura for Japan.

Page 27

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

											September 30, 2010
											Change
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30			Sep 30
	2010		2010		2010		2009		2009		2010			2009
ASSETS UNDER SUPERVISION (a)
Assets by asset class
Liquidity	$	521	$	489	$	521	$	591	$	634		7	%		(18	)%
Fixed income		277		259		246		226		215		7			29
Equities and multi-asset		362		322		355		339		316		12			15
Alternatives		97		91		97		93		94		7			3
TOTAL ASSETS UNDER MANAGEMENT		1,257		1,161		1,219		1,249		1,259		8			—
Custody / brokerage / administration / deposits		513		479		488		452		411		7			25
TOTAL ASSETS UNDER SUPERVISION	$	1,770	$	1,640	$	1,707	$	1,701	$	1,670		8			6
Assets by client segment
Private Banking (b)	$	276	$	258	$	268	$	270	$	266		7			4
Institutional		677		634		669		709		737		7			(8	)
Retail		304		269		282		270		256		13			19
TOTAL ASSETS UNDER MANAGEMENT	$	1,257	$	1,161	$	1,219	$	1,249	$	1,259		8			—
Private Banking (b)	$	698	$	653	$	666	$	636	$	594		7			18
Institutional		678		636		670		710		737		7			(8	)
Retail		394		351		371		355		339		12			16
TOTAL ASSETS UNDER SUPERVISION	$	1,770	$	1,640	$	1,707	$	1,701	$	1,670		8			6
Assets by geographic region
U.S. / Canada	$	852	$	791	$	815	$	837	$	862		8			(1	)
International		405		370		404		412		397		9			2
TOTAL ASSETS UNDER MANAGEMENT	$	1,257	$	1,161	$	1,219	$	1,249	$	1,259		8			—
U.S. / Canada	$	1,237	$	1,151	$	1,189	$	1,182	$	1,179		7			5
International		533		489		518		519		491		9			9
TOTAL ASSETS UNDER SUPERVISION	$	1,770	$	1,640	$	1,707	$	1,701	$	1,670		8			6
Mutual fund assets by asset class
Liquidity	$	466	$	440	$	470	$	539	$	576		6			(19	)
Fixed income		88		79		76		67		57		11			54
Equities and multi-asset		151		133		150		143		133		14			14
Alternatives		7		8		9		9		10		(13	)		(30	)
TOTAL MUTUAL FUND ASSETS	$	712	$	660	$	705	$	758	$	776		8			(8	)

(a)	Excludes assets under management of American Century Companies, Inc. in which the Firm has a 41% ownership in the third quarter of 2010 and 42% in all prior periods presented.
(b)	Private Banking is a combination of the previously disclosed client segments: Private Bank, Private Wealth Management and JPMorgan Securities.

Page 28

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

	QUARTERLY TRENDS														YEAR-TO-DATE
	3Q10			2Q10			1Q10			4Q09			3Q09		2010			2009
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,161		$	1,219		$	1,249		$	1,259		$	1,171	$	1,249		$	1,133
Net asset flows:
Liquidity		27			(29	)		(62	)		(44	)		9		(64	)		21
Fixed income		12			12			16			12			13		40			22
Equities, multi-asset and alternatives		(1	)		1			6			8			12		6			9
Market/performance/other impacts		58			(42	)		10			14			54		26			74
TOTAL ASSETS UNDER MANAGEMENT	$	1,257		$	1,161		$	1,219		$	1,249		$	1,259	$	1,257		$	1,259
Assets under supervision rollforward
Beginning balance	$	1,640		$	1,707		$	1,701		$	1,670		$	1,543	$	1,701		$	1,496
Net asset flows		41			(4	)		(10	)		(11	)		45		27			61
Market/performance/other impacts		89			(63	)		16			42			82		42			113
TOTAL ASSETS UNDER SUPERVISION	$	1,770		$	1,640		$	1,707		$	1,701		$	1,670	$	1,770		$	1,670

Page 29

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

	QUARTERLY TRENDS																						YEAR-TO-DATE
																	3Q10 Change												2010 Change
	3Q10			2Q10			1Q10				4Q09			3Q09			2Q10			3Q09			2010			2009			2009
INCOME STATEMENT
REVENUE
Principal transactions	$	1,143		$	(69	)	$	547			$	715		$	1,109			NM	%		3	%	$	1,621		$	859			89	%
Securities gains		99			990			610				378			181			(90	)		(45	)		1,699			761			123
All other income		(29	)		182			124				13			273			NM			NM			277			45			NM
Noninterest revenue		1,213			1,103			1,281				1,106			1,563			10			(22	)		3,597			1,665			116
Net interest income		371			747			1,076				978			1,031			(50	)		(64	)		2,194			2,885			(24	)
TOTAL NET REVENUE (a)		1,584			1,850			2,357				2,084			2,594			(14	)		(39	)		5,791			4,550			27
Provision for credit losses		(3	)		(2	)		17				9			62			(50	)		NM			12			71			(83	)
NONINTEREST EXPENSE
Compensation expense		574			770			475				747			768			(25	)		(25	)		1,819			2,064			(12	)
Noncompensation expense (b)		1,927			1,468			3,041				1,058			875			31			120			6,436			2,539			153
Merger costs		—			—			—				30			103			—			NM			—			451			NM
Subtotal		2,501			2,238			3,516				1,835			1,746			12			43			8,255			5,054			63
Net expense allocated to other businesses		(1,227	)		(1,192	)		(1,180	)			(1,219	)		(1,243	)		(3	)		1			(3,599	)		(3,775	)		5
TOTAL NONINTEREST EXPENSE		1,274			1,046			2,336				616			503			22			153			4,656			1,279			264
Income before income tax expense/(benefit) and extraordinary gain		313			806			4				1,459			2,029			(61	)		(85	)		1,123			3,200			(65	)
Income tax expense/(benefit) (c)		(35	)		153			(224	)			262			818			NM			NM			(106	)		1,443			NM
Income before extraordinary gain		348			653			228				1,197			1,211			(47	)		(71	)		1,229			1,757			(30	)
Extraordinary gain (d)		—			—			—				—			76			—			NM			—			76			NM
NET INCOME	$	348		$	653		$	228			$	1,197		$	1,287			(47	)		(73	)	$	1,229		$	1,833			(33	)
MEMO:
TOTAL NET REVENUE
Private equity	$	721		$	48		$	115			$	296		$	172			NM			319		$	884		$	(278	)		NM
Corporate		863			1,802			2,242				1,788			2,422			(52	)		(64	)		4,907			4,828			2
TOTAL NET REVENUE	$	1,584		$	1,850		$	2,357			$	2,084		$	2,594			(14	)		(39	)	$	5,791		$	4,550			27
										��
NET INCOME/(LOSS)
Private equity	$	344		$	11		$	55			$	141		$	88			NM			291		$	410		$	(219	)		NM
Corporate (e)		4			642			173				1,056			1,199			(99	)		(100	)		819			2,052			(60	)
TOTAL NET INCOME/(LOSS)	$	348		$	653		$	228			$	1,197		$	1,287			(47	)		(73	)	$	1,229		$	1,833			(33	)
Headcount		19,756			19,482			19,307				20,119			20,747			1			(5	)		19,756			20,747			(5	)

(a)	Total net revenue included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $58 million, $57 million, $48 million, $41 million and $40 million for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and $163 million and $110 million for year-to-date 2010 and 2009, respectively.
(b)	Includes litigation expense of $1.3 billion, $0.7 billion and $2.3 billion for the quarters ending September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and $4.3 billion and a net benefit of $0.3 billion for year-to-date 2010 and 2009, respectively.
(c)	Income tax expense in the third quarter of 2010, the first quarter of 2010 and fourth quarter of 2009 includes tax benefits recognized upon the resolution of tax audits.
(d)	On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank. 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.
(e)	The 2009 periods included merger costs and the 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 JPMorgan Securities broker retention expense.

Page 30

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

	QUARTERLY TRENDS																		YEAR-TO-DATE
													3Q10 Change											2010 Change
	3Q10		2Q10			1Q10			4Q09		3Q09		2Q10			3Q09			2010		2009			2009
SUPPLEMENTAL INFORMATION
TREASURY and CHIEF INVESTMENT OFFICE (“CIO”)
Securities gains (a)	$	99	$	989		$	610		$	378	$	181		(90)	%		(45	)%	$	1,698	$	769			121	%
Investment securities portfolio (average)		321,428		320,578			330,584			353,224		339,745		—			(5	)		324,163		314,202			3
Investment securities portfolio (ending)		334,140		305,288			337,442			340,163		351,823		9			(5	)		334,140		351,823			(5	)
Mortgage loans (average)		9,174		8,539			8,162			7,794		7,469		7			23			8,629		7,303			18
Mortgage loans (ending)		9,550		8,900			8,368			8,023		7,665		7			25			9,550		7,665			25
PRIVATE EQUITY
Private equity gains/(losses)
Direct investments
Realized gains	$	179	$	78		$	113		$	12	$	57		129			214		$	370	$	97			281
Unrealized gains/(losses) (b)		561		(7	)		(75	)		224		88		NM			NM			479		(305	)		NM
Total direct investments		740		71			38			236		145		NM			410			849		(208	)		NM
Third-party fund investments		10		4			98			37		10		150			—			112		(119	)		NM
Total private equity gains/(losses) (c)	$	750	$	75		$	136		$	273	$	155		NM			384		$	961	$	(327	)		NM
Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	1,152	$	873		$	890		$	762	$	674		32			71
Cost		985		901			793			743		751		9			31
Quoted public value		1,249		974			982			791		720		28			73
Privately-held direct securities
Carrying value		6,388		5,464			4,782			5,104		4,722		17			35
Cost		6,646		6,507			5,795			5,959		5,823		2			14
Third-party fund investments (d)
Carrying value		1,814		1,782			1,603			1,459		1,440		2			26
Cost		2,356		2,315			2,134			2,079		2,068		2			14
Total private equity portfolio — Carrying value	$	9,354	$	8,119		$	7,275		$	7,325	$	6,836		15			37
Total private equity portfolio — Cost	$	9,987	$	9,723		$	8,722		$	8,781	$	8,642		3			16

(a)	Reflects repositioning of the Corporate investment securities portfolio.
(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 $1.1 billion, $1.2 billion, $1.4 billion, $1.5 billion and $1.4 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively.

Page 31

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

											September 30, 2010
											Change
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30			Sep 30
	2010		2010		2010		2009		2009		2010			2009
CREDIT EXPOSURE
WHOLESALE (a)
Loans retained (b)	$	217,582	$	212,987	$	210,211	$	200,077	$	213,718		2	%		2	%
Loans held-for-sale and loans at fair value		3,015		3,839		4,079		4,098		5,235		(21	)		(42	)
TOTAL WHOLESALE LOANS — REPORTED		220,597		216,826		214,290		204,175		218,953		2			1
CONSUMER (c)
Home loan portfolio — excluding purchased credit-impaired loans:
Home equity		91,728		94,761		97,642		101,425		104,795		(3	)		(12	)
Prime mortgage (b)		65,790		66,429		68,210		66,892		67,597		(1	)		(3	)
Subprime mortgage (b)		12,009		12,597		13,219		12,526		13,270		(5	)		(10	)
Option ARMs (b)		8,415		8,594		8,644		8,536		8,852		(2	)		(5	)
Total home loan portfolio — excluding purchased credit-impaired loans		177,942		182,381		187,715		189,379		194,514		(2	)		(9	)
Home loan portfolio — purchased credit-impaired loans: (d)
Home equity		24,982		25,471		26,012		26,520		27,088		(2	)		(8	)
Prime mortgage		17,904		18,512		19,203		19,693		20,229		(3	)		(11	)
Subprime mortgage		5,496		5,662		5,848		5,993		6,135		(3	)		(10	)
Option ARMs		26,370		27,256		28,260		29,039		29,750		(3	)		(11	)
Total home loan portfolio — purchased credit-impaired loans		74,752		76,901		79,323		81,245		83,202		(3	)		(10	)
Other consumer:
Auto (b)		48,186		47,548		47,381		46,031		44,309		1			9
Credit card — reported:
Loans excluding those held by the WaMu Master Trust (b)		136,436		142,994		149,260		77,784		75,207		(5	)		81
Loans held by the WaMu Master Trust (e)		—		—		—		1,002		3,008		—			NM
Total credit card — reported		136,436		142,994		149,260		78,786		78,215		(5	)		74
Other loans (b)		32,151		32,399		32,951		31,700		32,405		(1	)		(1	)
Loans retained		469,467		482,223		496,630		427,141		432,645		(3	)		9
Loans held-for-sale (f)		467		434		2,879		2,142		1,546		8			(70	)
TOTAL CONSUMER LOANS — REPORTED		469,934		482,657		499,509		429,283		434,191		(3	)		8
TOTAL LOANS — REPORTED		690,531		699,483		713,799		633,458		653,144		(1	)		6
Credit card — securitized (b)		NA		NA		NA		84,626		87,028		NM			NM
TOTAL MANAGED LOANS (b)		690,531		699,483		713,799		718,084		740,172		(1	)		(7	)
Derivative receivables		97,293		80,215		79,416		80,210		94,065		21			3
Receivables from customers (g)		25,274		22,966		16,314		15,745		13,148		10			92
Interests in purchased receivables (b)		751		1,836		2,579		2,927		2,329		(59	)		(68	)
TOTAL CREDIT-RELATED ASSETS		813,849		804,500		812,108		816,966		849,714		1			(4	)
Wholesale lending-related commitments (b)		338,612		324,552		326,921		347,155		343,135		4			(1	)
TOTAL	$	1,152,461	$	1,129,052	$	1,139,029	$	1,164,121	$	1,192,849		2			(3	)
Memo: Total by category
Total wholesale exposure (h)	$	682,527	$	646,395	$	639,520	$	650,212	$	671,630		6			2
Total consumer loans (i)		469,934		482,657		499,509		513,909		521,219		(3	)		(10	)
Total	$	1,152,461	$	1,129,052	$	1,139,029	$	1,164,121	$	1,192,849		2			(3	)

(a)	Includes IB, CB, TSS and AM.
(b)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. As a result of the consolidation of the credit card securitization trusts, reported and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
(c)	Includes RFS, CS and residential mortgage loans reported in the Corporate/Private Equity segment to be risk managed by the CIO.
(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 WMMT 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 and September 30, 2009.
(f)	Included loans for prime mortgage of $428 million, $185 million, $558 million, $450 million and $187 million at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and other (largely student loans) of $39 million, $249 million, $2.3 billion, $1.7 billion and $1.4 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively.
(g)	Represents margin loans to prime and retail brokerage customers, which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.
(h)	Primarily represents total wholesale loans, derivative receivables, wholesale lending-related commitments and receivables from customers.
(i)	Represents total consumer loans and excludes consumer lending-related commitments.
	NA: Not applicable.

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

																September 30, 2010
																Change
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30
	2010			2010			2010			2009			2009			2010			2009
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS
Loans retained	$	5,231		$	5,285		$	5,895		$	6,559		$	7,494			(1)	%		(30	)%
Loans held-for-sale and loans at fair value		409			375			331			345			146			9			180
TOTAL WHOLESALE LOANS		5,640			5,660			6,226			6,904			7,640			—			(26	)
CONSUMER LOANS
Home loan portfolio:
Home equity		1,251			1,211			1,427			1,665			1,598			3			(22	)
Prime mortgage		4,420			4,653			4,579			4,355			4,007			(5	)		10
Subprime mortgage		2,649			3,115			3,331			3,248			3,233			(15	)		(18	)
Option ARMs		437			409			348			312			244			7			79
Total home loan portfolio		8,757			9,388			9,685			9,580			9,082			(7	)		(4	)
Auto loans		145			155			174			177			179			(6	)		(19	)
Credit card — reported		2			3			3			3			3			(33	)		(33	)
Other loans		959			973			962			900			863			(1	)		11
TOTAL CONSUMER LOANS (a)(b)		9,863			10,519			10,824			10,660			10,127			(6	)		(3	)
TOTAL NONPERFORMING LOANS REPORTED (c)		15,503			16,179			17,050			17,564			17,767			(4	)		(13	)
Derivative receivables		255			315			363			529			624			(19	)		(59	)
Assets acquired in loan satisfactions		1,898			1,662			1,606			1,648			1,971			14			(4	)
TOTAL NONPERFORMING ASSETS (a)	$	17,656		$	18,156		$	19,019		$	19,741		$	20,362			(3	)		(13	)
TOTAL NONPERFORMING LOANS TO TOTAL LOANS REPORTED		2.25	%		2.31	%		2.39	%		2.77	%		2.72	%
NONPERFORMING ASSETS BY LOB
Investment Bank	$	2,789		$	2,726		$	3,289		$	4,236		$	5,782			2			(52	)
Retail Financial Services (b)		11,255			11,731			11,974			11,864			11,641			(4	)		(3	)
Card Services		2			3			3			3			3			(33	)		(33	)
Commercial Banking		3,227			3,285			3,186			2,989			2,461			(2	)		31
Treasury & Securities Services		14			14			14			14			14			—			—
Asset Management		299			337			498			582			422			(11	)		(29	)
Corporate/Private Equity (d)		70			60			55			53			39			17			79
TOTAL	$	17,656		$	18,156		$	19,019		$	19,741		$	20,362			(3	)		(13	)

(a)	Nonperforming assets exclude: (1) mortgage loans insured by U.S. government agencies of $10.2 billion, $10.1 billion, $10.5 billion, $9.0 billion and $7.0 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, that are 90 days past due and accruing at the guaranteed reimbursement rate; (2) real estate owned insured by U.S. government agencies of $1.7 billion, $1.4 billion, $707 million, $579 million and $579 million at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 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 FFELP, of $572 million, $447 million, $581 million, $542 million and $511 million at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively. These amounts are excluded as reimbursement of insured amounts 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.
(b)	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.
(c)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
(d)	Predominantly relates to held-for-investment prime mortgage loans.

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
GROSS CHARGE-OFFS (a)
Wholesale loans	$	297		$	264		$	1,014		$	1,230		$	1,093			13	%		(73	)%	$	1,575		$	1,996			(21	)%
Consumer loans, excluding credit card		1,677			1,874			2,555			2,825			2,634			(11	)		(36	)		6,106			7,596			(20	)
Credit card loans — reported		3,485			4,063			4,882			2,405			2,894			(14	)		20			12,430			7,966			56
Total loans — reported		5,459			6,201			8,451			6,460			6,621			(12	)		(18	)		20,111			17,558			15
Credit card loans — securitized	NA			NA			NA				1,733			1,810		NM			NM			NA				5,165		NM
Total loans — managed		5,459			6,201			8,451			8,193			8,431			(12	)		(35	)		20,111			22,723			(11	)
RECOVERIES (a)
Wholesale loans		31			33			55			26			35			(6	)		(11	)		119			68			75
Consumer loans, excluding credit card		131			112			116			74			13			17		NM				359			148			143
Credit card loans — reported		352			342			370			183			200			3			76			1,064			554			92
Total loans — reported		514			487			541			283			248			6			107			1,542			770			100
Credit card loans — securitized	NA			NA			NA				116			112		NM			NM			NA				339		NM
Total loans — managed		514			487			541			399			360			6			43			1,542			1,109			39
NET CHARGE-OFFS (a)
Wholesale loans		266			231			959			1,204			1,058			15			(75	)		1,456			1,928			(24	)
Consumer loans, excluding credit card		1,546			1,762			2,439			2,751			2,621			(12	)		(41	)		5,747			7,448			(23	)
Credit card loans — reported		3,133			3,721			4,512			2,222			2,694			(16	)		16			11,366			7,412			53
Total loans — reported		4,945			5,714			7,910			6,177			6,373			(13	)		(22	)		18,569			16,788			11
Credit card loans — securitized	NA			NA			NA				1,617			1,698		NM			NM			NA				4,826		NM
Total loans — managed	$	4,945		$	5,714		$	7,910		$	7,794		$	8,071			(13	)		(39	)	$	18,569		$	21,614			(14	)
NET CHARGE-OFF RATES (a)
Wholesale retained loans		0.49	%		0.44	%		1.84	%		2.31	%		1.93	%								0.92	%		1.13	%
Consumer retained loans		3.90			4.49			5.56			4.60			4.79									4.66			4.36
Total retained loans — reported		2.84			3.28			4.46			3.85			3.84									3.53			3.28
Consumer loans — managed		3.90			4.49			5.56			5.08			5.29									4.66			4.86
Total loans — managed		2.84			3.28			4.46			4.29			4.30									3.53			3.75
Consumer loans — managed excluding purchased credit-impaired loans (b)		4.64			5.34			6.61			6.05			6.29									5.54			5.78
Total loans — managed excluding purchased credit-impaired loans (b)		3.19			3.69			5.03			4.84			4.85									3.98			4.23
Memo: Average Retained Loans (a)
Wholesale loans — reported	$	213,979		$	209,016		$	211,599		$	206,846		$	217,952								$	211,540		$	228,506
Consumer loans — reported		476,137			490,149			506,949			428,964			440,376									490,966			456,080
Total loans — reported		690,116			699,165			718,548			635,810			658,328									702,506			684,586
Consumer loans — managed		476,137			490,149			506,949			514,416			526,393									490,966			541,432
Total loans — managed		690,116			699,165			718,548			721,262			744,345									702,506			769,938

(a)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. As a result of the consolidation of the credit card securitization trusts, reported and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
(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.
	NA: Not applicable.

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance at January 1,	$	35,836		$	38,186		$	31,602		$	30,633		$	29,072			(6)	%		23	%	$	31,602		$	23,164			36	%
Cumulative effect of change in accounting principles (a)		—			—			7,494			—			—			—			—			7,494			—		NM
Net charge-offs (a)		4,945			5,714			7,910			6,177			6,373			(13	)		(22	)		18,569			16,788			11
Provision for loan losses (a)		3,244			3,380			6,991			7,166			8,029			(4	)		(60	)		13,615			24,569			(45	)
Other (b)		26			(16	)		9			(20	)		(95	)	NM			NM				19			(312	)	NM
Ending balance	$	34,161		$	35,836		$	38,186		$	31,602		$	30,633			(5	)		12		$	34,161		$	30,633			12
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance at January 1,	$	912		$	940		$	939		$	821		$	746			(3	)		22		$	939		$	659			42
Cumulative effect of change in accounting principles (a)		—			—			(18	)		—			—			—			—			(18	)		—		NM
Provision for lending-related commitments		(21	)		(17	)		19			118			75			(24	)	NM				(19	)		162		NM
Other		(18	)		(11	)		—			—			—			(64	)	NM				(29	)		—		NM
Ending balance	$	873		$	912		$	940		$	939		$	821			(4	)		6		$	873		$	821			6
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank (a)	$	1,976		$	2,149		$	2,601		$	3,756		$	4,703			(8	)		(58	)
Retail Financial Services (a)		16,154			16,152			16,200			14,776			13,286			—			22
Card Services (a)		13,029			14,524			16,032			9,672			9,297			(10	)		40
Commercial Banking		2,661			2,686			3,007			3,025			3,063			(1	)		(13	)
Treasury & Securities Services		54			48			57			88			15			13			260
Asset Management		257			250			261			269			251			3			2
Corporate/Private Equity		30			27			28			16			18			11			67
Total	$	34,161		$	35,836		$	38,186		$	31,602		$	30,633			(5	)		12

(a)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
(b)	Activity for the third quarter and year-to-date 2009 predominantly included a reclassification related to the issuance and retention of securities from the Chase Issuance Trust.

Page 35

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

	QUARTERLY TRENDS
																3Q10 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset specific (a)	$	1,246		$	1,324		$	1,557		$	2,046		$	2,410			(6)	%		(48	)%
Formula — based		3,717			3,824			4,385			5,099			5,631			(3	)		(34	)
Total wholesale		4,963			5,148			5,942			7,145			8,041			(4	)		(38	)
Consumer
Asset specific (b)		1,153			1,161			1,010			996			1,009			(1	)		14
Formula — based (a)(c)(d)		25,234			26,716			28,423			21,880			20,493			(6	)		23
Purchased credit-impaired (d)		2,811			2,811			2,811			1,581			1,090			—			158
Total consumer		29,198			30,688			32,244			24,457			22,592			(5	)		29
Total allowance for loan losses		34,161			35,836			38,186			31,602			30,633			(5	)		12
Allowance for lending-related commitments		873			912			940			939			821			(4	)		6
Total allowance for credit losses	$	35,034		$	36,748		$	39,126		$	32,541		$	31,454			(5	)		11
Wholesale allowance to total wholesale retained loans		2.28	%		2.42	%		2.83	%		3.57	%		3.76	%
Consumer allowance to total consumer retained loans		6.22			6.36			6.49			5.73			5.22
Allowance to total retained loans		4.97			5.15			5.40			5.04			4.74
Consumer allowance to consumer retained nonperforming loans (e)		296			292			298			229			223
Consumer allowance to consumer retained nonperforming loans excluding credit card (e)		164			154			150			139			131
CREDIT RATIOS excluding purchased credit-impaired loans (f)
Consumer allowance to total consumer retained loans (f)(g)		6.69			6.88			7.05			6.63			6.21
Allowance to retained loans (f)(g)		5.12			5.34			5.64			5.51			5.28
Consumer allowance to consumer retained nonperforming loans (e)(f)(g)		268			265			272			215			212
Consumer allowance to consumer retained nonperforming loans excluding credit card (e)(f)		135			127			124			124			121
Allowance to total retained nonperforming loans (f)(g)		208			209			212			174			168

(a)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
(b)	The asset-specific consumer allowance for loan losses includes troubled debt restructuring reserves of $980 million, $946 million, $754 million, $754 million and $756 million at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively. Prior period amounts have been reclassified from formula-based to conform with the current period presentation.
(c)	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.
(d)	Prior period amounts have been reclassified from formula-based to conform with the current period presentation.
(e)	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.
(f)	Excludes the impact of purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction, as well as the related allowance recorded on these loans. 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.
(g)	Excludes loans held by the WMMT, 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 and September 30, 2009. The balance of these loans held by the WMMT was zero at September 30, 2010, June 30, 2010 and March 31, 2010.

Page 36

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank (a)	$	(158	)	$	(418	)	$	(477	)	$	(265	)	$	330			62	%	NM		%	$	(1,053	)	$	2,419		NM		%
Commercial Banking		192			(143	)		204			445			326		NM				(41	)		253			869			(71	)
Treasury & Securities Services		6			(8	)		(31	)		73			1		NM			NM				(33	)		(39	)		15
Asset Management		23			15			31			53			37			53			(38	)		69			130			(47	)
Corporate/Private Equity		(1	)		(1	)		16			(2	)		(6	)		—			83			14			1		NM
Total wholesale		62			(555	)		(257	)		304			688		NM				(91	)		(750	)		3,380		NM
Retail Financial Services (a)		1,551			1,715			3,735			4,228			4,004			(10	)		(61	)		7,001			11,722			(40	)
Card Services — reported (a)		1,633			2,221			3,512			2,622			3,269			(26	)		(50	)		7,366			9,397			(22	)
Corporate/Private Equity		(2	)		(1	)		1			12			68			(100	)	NM				(2	)		70		NM
Total consumer		3,182			3,935			7,248			6,862			7,341			(19	)		(57	)		14,365			21,189			(32	)
Total provision for loan losses	$	3,244		$	3,380		$	6,991		$	7,166		$	8,029			(4	)		(60	)	$	13,615		$	24,569			(45	)
LENDING-RELATED COMMITMENTS
Investment Bank (a)	$	16		$	93		$	15		$	84		$	49			(83	)		(67	)	$	124		$	41			202
Commercial Banking		(26	)		(92	)		10			49			29			72		NM				(108	)		91		NM
Treasury & Securities Services		(8	)		(8	)		(8	)		(20	)		12			—		NM				(24	)		41		NM
Asset Management		—			(10	)		4			5			1		NM			NM				(6	)		—		NM
Corporate/Private Equity		—			—			—			(1	)		—			—			—			—			—			—
Total wholesale		(18	)		(17	)		21			117			91			(6	)	NM				(14	)		173		NM
Retail Financial Services		(3	)		—			(2	)		1			(16	)	NM				81			(5	)		(11	)		55
Card Services — reported		—			—			—			—			—			—			—			—			—			—
Corporate/Private Equity		—			—			—			—			—			—			—			—			—			—
Total consumer		(3	)		—			(2	)		1			(16	)	NM				81			(5	)		(11	)		55
Total provision for lending- related commitments	$	(21	)	$	(17	)	$	19		$	118		$	75			(24	)	NM			$	(19	)	$	162		NM
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank (a)	$	(142	)	$	(325	)	$	(462	)	$	(181	)	$	379			56		NM			$	(929	)	$	2,460		NM
Commercial Banking		166			(235	)		214			494			355		NM				(53	)		145			960			(85	)
Treasury & Securities Services		(2	)		(16	)		(39	)		53			13			88		NM				(57	)		2		NM
Asset Management		23			5			35			58			38			360			(39	)		63			130			(52	)
Corporate/Private Equity		(1	)		(1	)		16			(3	)		(6	)		—			83			14			1		NM
Total wholesale		44			(572	)		(236	)		421			779		NM				(94	)		(764	)		3,553		NM
Retail Financial Services (a)		1,548			1,715			3,733			4,229			3,988			(10	)		(61	)		6,996			11,711			(40	)
Card Services — reported (a)		1,633			2,221			3,512			2,622			3,269			(26	)		(50	)		7,366			9,397			(22	)
Corporate/Private Equity		(2	)		(1	)		1			12			68			(100	)	NM				(2	)		70		NM
Total consumer		3,179			3,935			7,246			6,863			7,325			(19	)		(57	)		14,360			21,178			(32	)
Total provision for credit losses		3,223			3,363			7,010			7,284			8,104			(4	)		(60	)		13,596			24,731			(45	)
Credit card loans — securitized (a)	NA			NA			NA				1,617			1,698		NM			NM			NA				4,826		NM
Managed provision for credit losses (a)	$	3,223		$	3,363		$	7,010		$	8,901		$	9,802			(4	)		(67	)	$	13,596		$	29,557			(54	)

(a)	Effective January 1, 2010, the Firm adopted new accounting guidance related to VIEs. As a result of the consolidation of the credit card securitization trusts, reported and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
	NA: Not applicable.

Page 37

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
AVERAGE IB TRADING VAR, CREDIT PORTFOLIO
VAR AND OTHER VAR - 95% CONFIDENCE LEVEL
IB VaR by risk type:
Fixed income	$	72		$	64		$	69		$	121		$	182			13	%		(60	)%	$	68		$	173			(61	)%
Foreign exchange		9			10			13			14			19			(10	)		(53	)		11			19			(42	)
Equities		21			20			24			21			19			5			11			22			55			(60	)
Commodities and other		13			20			15			17			23			(35	)		(43	)		16			22			(27	)
Diversification benefit to IB trading VaR (a)		(38	)		(42	)		(49	)		(62	)		(97	)		10			61			(43	)		(101	)		57
IB Trading VaR (b)		77			72			72			111			146			7			(47	)		74			168			(56	)
Credit portfolio VaR (c)		30			27			19			24			29			11			3			25			61			(59	)
Diversification benefit to IB trading and credit portfolio VaR (a)		(8	)		(9	)		(9	)		(11	)		(32	)		11			75			(9	)		(52	)		83
Total IB trading and credit portfolio VaR		99			90			82			124			143			10			(31	)		90			177			(49	)
Mortgage Banking VaR (d)		24			24			25			29			49			—			(51	)		24			66			(64	)
Chief Investment Office (CIO) VaR (e)		53			72			70			78			99			(26	)		(46	)		65			111			(41	)
Diversification benefit to total other VaR (a)		(15	)		(14	)		(13	)		(19	)		(31	)		(7	)		52			(14	)		(41	)		66
Total other VaR		62			82			82			88			117			(24	)		(47	)		75			136			(45	)
Diversification benefit to total IB and other VaR (a)		(52	)		(79	)		(66	)		(67	)		(82	)		34			37			(66	)		(87	)		24
Total IB and other VaR (f)	$	109		$	93		$	98		$	145		$	178			17			(39	)	$	99		$	226			(56	)

(a)	Average value-at-risk (“ VaR”) was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects 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, for example, 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. IB Trading VaR includes the estimated credit spread sensitivity of certain mortgage products.
(c)	Credit portfolio VaR includes the derivative credit valuation adjustments (“CVA”), hedges of the CVA and mark-to-market (“MTM”) hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not MTM.
(d)	Mortgage Banking VaR includes the Firm’s mortgage pipeline and warehouse, MSR and all related hedges.
(e)	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 38

JPMORGAN CHASE & CO.
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)

																September 30, 2010
																Change						YEAR-TO-DATE
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30							2010 Change
	2010			2010			2010			2009			2009			2010			2009			2010		2009		2009
CAPITAL RATIOS
Tier 1 capital	$	139,381	(e)	$	137,077		$	131,350		$	132,971		$	126,541			2	%		10	%
Total capital		180,729	(e)		178,293			173,332			177,073			171,804			1			5
Tier 1 common capital (a)		110,842	(e)		108,175			103,908			105,284			101,420			2			9
Risk-weighted assets		1,169,273	(e)		1,131,030			1,147,008			1,198,006			1,237,760			3			(6	)
Adjusted average assets (b)		1,975,479	(e)		1,983,839			1,981,060			1,933,767			1,940,689			—			2
Tier 1 capital ratio		11.9	%(e)		12.1	%		11.5	%		11.1	%		10.2	%
Total capital ratio		15.5	(e)		15.8			15.1			14.8			13.9
Tier 1 common capital ratio (a)		9.5	(e)		9.6			9.1			8.8			8.2
Tier 1 leverage ratio		7.1	(e)		6.9			6.6			6.9			6.5
TANGIBLE COMMON EQUITY (PERIOD-END) (c)
Common stockholders’ equity	$	166,030		$	162,968		$	156,569		$	157,213		$	154,101			2			8
Less: Goodwill		48,736			48,320			48,359			48,357			48,334			1			1
Less: Other intangible assets		3,982			4,178			4,383			4,621			4,862			(5	)		(18	)
Add: Deferred tax liabilities (d)		2,656			2,584			2,544			2,538			2,527			3			5
Total tangible common equity		115,968			113,054			106,371			106,773			103,432			3			12
TANGIBLE COMMON EQUITY (AVERAGE) (c)
Common stockholders’ equity		163,962			159,069			156,094			156,525			149,468			3			10		$	159,737	$	142,322		12	%
Less: Goodwill		48,745			48,348			48,542			48,341			48,328			1			1			48,546		48,225		1
Less: Other intangible assets		4,094			4,265			4,307			4,741			4,984			(4	)		(18	)		4,221		5,214		(19	)
Add: Deferred tax liabilities (d)		2,620			2,564			2,541			2,533			2,531			2			4			2,575		2,552		1
Total tangible common equity		113,743			109,020			105,786			105,976			98,687			4			15			109,545		91,435		20
INTANGIBLE ASSETS (PERIOD-END)
Goodwill		48,736			48,320			48,359			48,357			48,334			1			1
Mortgage servicing rights		10,305			11,853			15,531			15,531			13,663			(13	)		(25	)
Purchased credit card relationships		974			1,051			1,153			1,246			1,342			(7	)		(27	)
All other intangibles		3,008			3,127			3,230			3,375			3,520			(4	)		(15	)
Total intangibles		63,023			64,351			68,273			68,509			66,859			(2	)		(6	)
DEPOSITS (PERIOD-END)
U.S. offices:
Noninterest-bearing		219,302			208,064			210,982			204,003			195,561			5			12
Interest-bearing		435,405			433,764			436,914			439,104			415,122			—			5
Non-U.S. offices:
Noninterest-bearing		10,646			9,094			10,062			8,082			9,390			17			13
Interest-bearing		237,785			236,883			267,345			287,178			247,904			—			(4	)
Total deposits		903,138			887,805			925,303			938,367			867,977			2			4

(a)	The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. The Tier 1 common capital ratio is Tier 1 common capital divided by risk-weighted assets. For further discussion of Tier 1 common capital ratio, see page 41.
(b)	Adjusted average assets, for purposes of calculating the leverage ratio, include total average assets adjusted for unrealized gains/(losses)on securities, less deductions for disallowed goodwill and other intangible assets, investments in certain subsidiaries, and the total adjusted carrying value of nonfinancial equity investments that are subject to deductions from Tier 1 capital.
(c)	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. For further discussion of ROTCE, see page 41.
(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 39

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q10 Change												2010 Change
	3Q10			2Q10			1Q10			4Q09			3Q09			2Q10			3Q09			2010			2009			2009
EARNINGS PER SHARE DATA
Basic earnings per share:
Income before extraordinary gain	$	4,418		$	4,795		$	3,326		$	3,278		$	3,512			(8)	%		26	%	$	12,539		$	8,374			50	%
Extraordinary gain		—			—			—			—			76			—		NM				—			76		NM
Net income		4,418			4,795			3,326			3,278			3,588			(8	)		23			12,539			8,450			48
Less: Preferred stock dividends		160			163			162			162			163			(2	)		(2	)		485			1,165			(58	)
Less: Accelerated amortization from redemption of preferred stock issued to the U.S. Treasury (a)		—			—			—			—			—			—			—			—			1,112		NM
Net income applicable to common equity (a)		4,258			4,632			3,164			3,116			3,425			(8	)		24			12,054			6,173			95
Less: Dividends and undistributed earnings allocated to participating securities		239			269			190			164			185			(11	)		29			701			348			101
Net income applicable to common stockholders	$	4,019		$	4,363		$	2,974		$	2,952		$	3,240			(8	)		24		$	11,353		$	5,825			95
Total weighted-average basic shares outstanding		3,954.3			3,983.5			3,970.5			3,946.1			3,937.9			(1	)		—			3,969.4			3,835.0			4
Income before extraordinary gain per share (a)	$	1.02		$	1.10		$	0.75		$	0.75		$	0.80			(7	)		28		$	2.86		$	1.50			91
Extraordinary gain per share		—			—			—			—			0.02			—		NM				—			0.02		NM
Net income per share (a)	$	1.02		$	1.10		$	0.75		$	0.75		$	0.82			(7	)		24		$	2.86		$	1.52			88
Diluted earnings per share:
Net income applicable to common stockholders	$	4,019		$	4,363		$	2,974		$	2,952		$	3,240			(8	)		24		$	11,353		$	5,825			95
Total weighted-average basic shares outstanding (b)		3,954.3			3,983.5			3,970.5			3,946.1			3,937.9			(1	)		—			3,969.4			3,835.0			4
Add: Employee stock options and SARs (c)		17.6			22.1			24.2			28.0			24.1			(20	)		(27	)		21.3			13.3			60
Total weighted-average diluted shares outstanding (d)		3,971.9			4,005.6			3,994.7			3,974.1			3,962.0			(1	)		—			3,990.7			3,848.3			4
Income before extraordinary gain per share (a) (b)	$	1.01		$	1.09		$	0.74		$	0.74		$	0.80			(7	)		26		$	2.84		$	1.50			89
Extraordinary gain per share		—			—			—			—			0.02			—		NM				—			0.01		NM
Net income per share (a)	$	1.01		$	1.09		$	0.74		$	0.74		$	0.82			(7	)		23		$	2.84		$	1.51			88
COMMON SHARES OUTSTANDING
Common shares — at period end (b)		3,925.8			3,975.8			3,975.4			3,942.0			3,938.7			(1	)		—			3,925.8			3,938.7			—
Cash dividends declared per share	$	0.05		$	0.05		$	0.05		$	0.05		$	0.05			—			—		$	0.15		$	0.15			—
Book value per share		42.29			40.99			39.38			39.88			39.12			3			8			42.29			39.12			8
Dividend payout ratio		5	%		5	%		7	%		7	%		6	%								5	%		10	%
SHARE PRICE
High	$	41.70		$	48.20		$	46.05		$	47.47		$	46.50			(13	)		(10	)	$	48.20		$	46.50			4
Low		35.16			36.51			37.03			40.04			31.59			(4	)		11			35.16			14.96			135
Close		38.06			36.61			44.75			41.67			43.82			4			(13	)		38.06			43.82			(13	)
Market capitalization		149,418			145,554			177,897			164,261			172,596			3			(13	)		149,418			172,596			(13	)
STOCK REPURCHASE PROGRAM
Aggregate repurchases	$	2,178.1		$	135.3		$	—		$	—		$	—		NM			NM			$	2,313.4		$	—		NM
Common shares repurchased		56.5			3.5			—			—			—		NM			NM				60.0			—		NM
Average purchase price	$	38.52		$	38.73		$	—		$	—		$	—			(1	)	NM			$	38.53		$	—		NM

(a)	The calculation of year-to-date 2009 earnings per share (“EPS”) 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 U.S. Troubled Asset Relief Program (“TARP”) preferred capital.
(b)	On June 5, 2009, the Firm issued $5.8 billion, or 163 million shares, of its common stock at $35.25 per share.
(c)	Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock aggregating 236 million, 224 million, 239 million, 147 million and 241 million, for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively, and 233 million and 306 million shares for the nine months ended September 30, 2010 and 2009, respectively.
(d)	Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.

Page 40

JPMORGAN CHASE & CO.
Non-GAAP Financial Measures

The following are several of the non-GAAP measures that the Firm usesfor 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 reviews the Firm’s results and the results of the lines of business on a“managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the business segments) on a FTE basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable 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.
	Prior to January 1, 2010, the Firm’s managed-basis presentation also included certain reclassification adjustments that assumed credit card loans securitized by CS remained on the balance sheet. Effective January 1, 2010, the Firm adopted new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs. Additionally, the new guidance required the Firm to consolidate its Firm-sponsored credit card securitizations 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 that were previously used to report such items on a managed basis. As a result of the consolidation of the credit card securitization trusts, reported and managed basis relating to credit card securitizations are comparable for periods beginning after January 1, 2010.
	The presentation in 2009 of CS results on a managed basis assumed that credit card loans that had been securitized and sold in accordance with U.S. GAAP remained on the Consolidated Balance Sheets, and that the earnings on the securitized loans were classified in the same manner as the earnings on retained loans recorded on the Consolidated Balance Sheets. JPMorgan Chase used the 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 Sheets and securitized loans. Although securitizations result in the sale of credit card receivables to a trust, JPMorgan Chase retains 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 Sheets. 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 Sheets and the Firm’s retained interests in securitized loans
(b)	The ratio for theallowance for loan losses to end-of-period loansexcludes the following: loans accounted for at fair value and loans held-for-sale; purchased credit-impaired loans; the allowance for loan losses related to 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.
(c)	Return on Tangible Common Equityis 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.
(d)	Tier 1 common capital ratiois 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 interests in subsidiaries and trust preferred capital debt securities. Tier 1 Common, 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 along with other capital measures to assess and monitor its capital position.
(e)	TSS Firmwide revenueincludes 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.
(f)	Retail Financial Servicesuses theoverhead 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)	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 consolidated 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.

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JPMORGAN CHASE & CO.
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.

Bear Stearns Merger:Effective May 30, 2008, JPMorgan Chase merged with The Bear Stearns Companies Inc. (“Bear Stearns”) and Bear Stearns became a wholly-owned subsidiary of JPMorgan Chase. The final total purchase price to complete the merger was $1.5 billion. For additional information, see Note 2 on pages 143-148 of JPMorgan Chase’s 2009 Annual Report.

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, 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 the 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 guidance relating to the accounting for the transfer of financial assets and the consolidation of VIEs, CS’ results were presented on a “managed” basis that assumed that credit card loans that had been securitized and sold in accordance with U.S. GAAP remained on the Consolidated Balance Sheets and that earnings on the securitized loans were classified in the same manner as the earnings on retained loans recorded on the Consolidated Balance Sheets. “Managed” results excluded the impact of credit card securitizations on total net revenue, the provision for credit losses, net charge-offs and loan receivables. Securitization did not change reported net income; however, it did affect the classification of items on the Consolidated Statements of Income and Consolidated Balance Sheets.

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.

Managed basis: A non-GAAP presentation of financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis, and for periods ended prior to the January 1, 2010, adoption of new accounting guidance relating to the accounting for the transfer of financial assets and the consolidation of VIEs related to credit card securitizations. Management uses this non-GAAP financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.

Managed credit card receivables: Refers to credit card receivables on the Firm’s Consolidated Balance Sheets plus credit card receivables that have been securitized and removed from the Firm’s Consolidated Balance Sheets, for periods ended prior to the January 1, 2010, adoption of new 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 MTM value is positive, it indicates the counterparty owes JPMorgan Chase and, therefore, creates a credit risk for the Firm. When the MTM value is negative, JPMorgan Chase owes the counterparty; in this situation, the Firm has liquidity risk.

Merger costs: Reflects costs associated with the Washington Mutual transaction and the Bear Stearns merger 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.

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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.

Pre-provision profit: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.

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.

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 predominantly by the IB for which the fair value option was elected. Principal transactions revenue also includes private equity gains and losses.

Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments. For periods ended prior to the January 1, 2010, adoption of new 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.

Washington Mutual Transaction: On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank (“Washington Mutual”) from the FDIC for $1.9 billion. The final allocation of the purchase price resulted in the recognition of negative goodwill and an extraordinary gain of $2.0 billion. For additional information, see Note 2 on pages 143-148 of JPMorgan Chase’s 2009 Annual Report.

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JPMORGAN CHASE & CO.
Glossary of Terms

INVESTMENT BANKING (IB)

IB’s revenue comprises the following:

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

Fixed income marketsprimarily include client and portfolio management revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets.

Equities marketsprimarily include client and portfolio management revenue related to market-making across global equity products, including cash instruments, derivatives and convertibles.

Credit portfolio revenueincludes net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring, for 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 CVA, which is the component of the fair value of a derivative that reflects the credit quality of the counterparty.

RETAIL FINANCIAL SERVICES (RFS)

Description of selected business metrics within Retail Banking:

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.

Sales specialists– Retail branch office personnel who specialize in the marketing of a single product, including mortgages, investments, and business banking, by partnering with the personal bankers.

Mortgage banking revenue comprises the following:

Net 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.

Net mortgage servicing revenueincludes the following components:

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 comprise the following:

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.

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.

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

Correspondent negotiated transactions (“CNTs”)– 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 periods of rising interest rates.

CARD SERVICES (CS)

Description of selected business metrics within CS:

Sales volume– Dollar amount of cardmember purchases, net of returns.

Open accounts– Cardmember accounts with charging privileges.

Merchant acquiring business– A business that processes bank card transactions for merchants.

Bank card volume– Dollar amount of transactions processed for merchants.

Total transactions– Number of transactions and authorizations processed for merchants.

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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, as well as deposits that are swept to on—balance sheet liabilities (e.g., commercial paper, federal funds purchased, time deposits and securities loaned or sold under repurchase agreements) as part of customer cash management programs.
2.	IB revenue, grossrepresents total revenue related to investment banking products sold to CB clients.

TREASURY & SECURITIES SERVICES (TSS)

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

Description of selected business metrics within TSS:

1. Liability balancesinclude deposits, as well as deposits that are swept to on—balance sheet liabilities (e.g., commercial paper, federal funds purchased, time deposits and securities loaned or sold under repurchase agreements) as part of customer cash management programs.

ASSET MANAGEMENT (AM)

Assets under management– Represent assets actively managed by AM 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 41% ownership interest at September 30, 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’s client segments comprise the following:

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.

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

Private Bankingoffers investment advice and wealth management services to high- and ultra-high-net-worth individuals, families, money managers, business owners and small corporations worldwide, including investment management, capital markets and risk management, tax and estate planning, banking, capital raising and specialty wealth advisory services.

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