JPMorgan Chase & Co. (JPM) 8-K This presentation contains forward-looking statements within the meaning of the Private Securities

Exhibit 99.1

Forward looking statements

This presentation contains forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995.  Such statements are based upon the current beliefs and expectations of

JPMorgan Chase’s management and are subject to significant risks and uncertainties.  Actual results may

differ from those set forth in the forward-looking statements.  Factors that could cause JPMorgan Chase’s

actual results to differ materially from those described in the forward-looking statements can be found in

JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2009, which has been

filed with the Securities and Exchange Commission and is available on JPMorgan Chase’s website

(www.jpmorganchase.com)

and

on

the

Securities

and

Exchange

Commission’s

website

(www.sec.gov).

JPMorgan Chase does not undertake to update the forward-looking statements to reflect the impact of

circumstances or events that may arise after the date of the forward-looking statements.

The 2004 financial information provided in this presentation is presented on a pro forma combined basis,

which includes purchase accounting adjustments made in connection with the merger of Bank One

Corporation with and into JPMorgan Chase. The 2004 pro forma combined historical results represent

how the financial information of JPMorgan Chase and Bank One may

have appeared on a combined basis

had the two companies been merged as of January 1, 2004. Additional information, including a

reconciliation from pro forma results to GAAP, can be found in the Current Report on Form 8-K/A

furnished to the Securities and Exchange Commission on July 20, 2005.

Disclaimer

0

2010 Investor Day agenda

Presentation

Speaker

Start time

Opening remarks and firm overview

Mike Cavanagh

10:00 AM

Investment Bank

Jes Staley

10:30 AM

Treasury & Securities Services

Heidi Miller

11:30 AM

Asset Management

Mary Erdoes

12:00 PM

  Lunch

12:30 PM

Commercial Banking

Todd Maclin

1:30 PM

Card Services

Gordon Smith

2:00 PM

  Break

3:00 PM

Retail Financial Services

Charlie Scharf

3:15 PM

Closing remarks and Q&A  

Jamie Dimon

4:15 PM

February 25, 2010

F

I

R

M

O

V

E

R

V

I

E

W

Mike Cavanagh, Chief Financial Officer

JPM’s fundamentals remain extremely strong

Each standalone business has a top 1, 2 or 3 position

Unparalleled client relationships in 100+ countries

Culture

of

innovation;

new

products

and

programs

launched

during

crisis

(e.g.,

Sapphire, Ultimate Rewards, Deposit-Friendly ATMs, Secondary Private Equity Fund)

Robust technology infrastructure to serve clients

Significant earnings power; never experienced quarterly loss through crisis

Continued investment across LOBs driving organic growth

Margin

improvement

across

all

businesses

since

2004

JPM

/

BankOne

merger

to

onset

of financial crisis

Consistent record of operating efficiency and delivering merger saves

Businesses stronger together than apart; additional revenue streams generated

Tier

1

Capital

of

$133B,

resulting

in

11.1%

Tier

1

Capital

ratio

and

8.8%

Tier

1

Common

ratio¹;

never

breached

old

management

target

of

8.0

-

8.5%

Tier

1

Capital

ratio during financial crisis

High quality capital and very high level of reserves ($32.5B)¹

Strong funding and liquidity profile: $900B deposits, 1.5x loan coverage¹

Risk management culture embedded in Firm’s DNA

Benefits

from

diversification

–

funding,

capital,

lower

volatility

Strong and stable management team

Significant combined years of experience at Firm

Deep bench of talent; thoughtful succession planning

¹

As of 12/31/09

1

Excellent    

Franchises

Significant

Earnings Power

Fortress Balance

Sheet

Strong

Management

Team

Excellent franchises position JPM well for the future

#1 ranking in Global IB Fees with 9.2% market

share¹

Leadership across all capital raising

categories²

Ranked #1 for FY2009 in: Debt, Equity &

Equity Related, Equity & Equity-related,

Debt, Long-term Debt and Loan

Syndications²

Strong international franchise with #1 fee

rankings in EMEA and Latin America¹

Achieved leadership positions in markets

businesses with estimated 12% share of industry³

#3

in

deposit

market

share

4

#3

in

Branch

network

5

#3

in

Mortgage

Servicing

6

#3

in

Mortgage

Originations

6

#3

in

Home

Equity

Originations

7

9.2%

market

share

in

Mortgage

Originations

6

#1

in

Auto

Finance

8

20% market share of General Purpose Credit Card

outstandings

9

17.3%

market

share

of

sales

volume

9

#1 co-brand card issuer in the U.S.³

#1 merchant acquirer in e-commerce payment

processing³

Treasury Services

#1

in

ACH

originations

12

#1 in US Dollar Clearing with > 20% in market

share

12

#1

in

Purchasing

Cards

13

#1

in

Liquidity

12

Worldwide Securities Services

#2

in

global

assets

under

custody

5

#2 Global Fund Services for registered investment

pools

5

#1 Depository Receipts (by market capitalization)³

#1

global

money

market

fund

manager

14

#2

US-based

global

hedge

fund

manager

15

#1

global

provider

for

UHNW

clients

16

#4

US

mutual

fund

family

17

Gold Standard Award for Funds Management

(UK); only firm ever to win seven Gold Standard

awards

18

Asset Management Company of the Year for Asia,

Hong

Kong

19

Best overall performing foreign asset manager

operating

in

China

20

#1

Private

Bank

in

Asia

21

Maintained

middle

market

top

3

leadership

position

nationally

in

market

penetration

and

lead

share

10

#1 in lead share and market penetration in 3

of

the

top

4

MSAs

10

Top 2 leading provider of Treasury Services

products and international services to middle

market

clients

10

Top 3 asset-based lending lead arranger in the

U.S.²

#1

multi-family

lender

in

the

U.S.

11

Note: Please see footnotes on slide 25

2

Investment Bank

Retail Financial Services

Card Services

Commercial Banking

Treasury & Securities Services

Asset Management

Significant earnings power helps to counter the impact of the economic environment

¹

IB revenue includes annual payment from TSS, which is offset in Corporate

Note: 2004 data is presented on an unaudited pro forma combined basis that represents how the financial information of JPMorgan Chase & Co. and Bank One Corporation may have

appeared

had

the

two

companies

been

merged

for

the

full

year.

Pretax

preprovision

profit

excludes

the

impact

of

merger

costs

and

litigation

reserve

charge

3

Pretax pre-provision profit ($ in billions)

2004

2009

2004-2009

CAGR

Investment Bank

1

$4.8

$12.7

22%

Retail Financial Services

6.0

15.9

22%

Card Services

9.6

14.9

9%

Commercial Banking

1.5

3.5

19%

Treasury & Securities Services

0.5

2.1

30%

Asset Management

1.4

2.5

13%

Corporate

1

(2.0)

4.7

NM

Total Pretax Pre-Provision

$21.8

$56.3

21%

Adjustments for WaMu/BSC &

Normalizing 2009 (IB/CIO)

-

15.0

+/-

-

Adjusted Pretax Pre-Provision

$21.8

$41.3

14%

Note: 2004 data is presented on an unaudited pro forma combined basis that represents how the financial information of JPMorgan Chase & Co. and Bank One Corporation may have

appeared had the two companies been merged for the full year

1 

Represents EMEA and Asia region revenue

2 

Excludes approximately 13 million credit card accounts acquired in the WaMu transaction

Earnings improvement achieved through continual investment in growth opportunities

Good underlying momentum in core business drivers propelling growth across businesses

4

2004

2009

2008-2009

% O/(U)

2004-2009

CAGR

IB Fees ($mm)

$3,671

$7,169

21%

14%

Advisory ($mm)

939

1,867

(7)%

15%

Equity and Debt Underwriting ($mm)

2,732

5,302

36%

14%

Non-US IB Fees($mm)

1,073

2,471

31%

18%

Equity Markets ($mm)

1,704

4,393

22%

21%

Investment Bank

International

Revenue

($mm)

1

5,985

12,953

33%

17%

Retail Banking Average Deposits

$171.8

$340.8

39%

15%

# of ATMs

6,650

15,406

6%

18%

# of Branches

2,508

5,154

(6)%

15%

# of Branch Bankers & Sales Specialists

8,388

23,903

11%

23%

Retail Financial Services

Credit Cards Originated in Branches

408,794

1,752,895

3%

34%

Average Outstandings

$128.8

$172.4

6%

6%

Charge Volume

$282.7

$328.3

(11)%

3%

Card Services

# of Net new

accts opened (000's)

9,697

10,226

(31)%

2

1%

Growth drivers ($ in billions)

Note: 2004 data is presented on an unaudited pro forma combined basis that represents how the financial information of JPMorgan Chase & Co. and Bank One Corporation may have

appeared had the two companies been merged for the full year

1

Represents total revenue related to investment banking products sold to Commercial Banking clients. CAGR is calculated for the period 2005-2009

2

Includes deposits and deposits swept to on-balance sheet liabilities

3

Reflects the transfer in 2007 of held-for-investment prime mortgage loans from AM to Corporate within the Corporate/Private Equity segment

Earnings improvement achieved through continual investment in growth opportunities

Good underlying momentum in core business drivers propelling growth across businesses

5

Growth drivers ($ in billions)

2004

2009

2008-2009

% O/(U)

2004-2009

CAGR

IB

Revenue,

Gross

1

($mm)

NA

$1,163

20%

20%

Average

Liability

Balances

2

62.6

113.2

10%

13%

Commercial Banking

Average Loans

46.3

106.7

30%

18%

Average

Liability

Balances

2

$137.1

$248.1

(11)%

13%

Average

USD

Liability

Balances

2

89.2

117.5

(22)%

6%

Average

Foreign

Liability

Balances

2

47.9

130.6

1%

22%

Global Assets under Custody ($T)

9.3

14.9

13%

10%

Assets

under Management

$791

$1,249

10%

10%

U.S. / Canada

554

837

5%

9%

International

237

412

23%

12%

Average

Loans

3

25.1

35.0

(8)%

7%

Asset Management

Average Deposits

38.6

77.0

10%

15%

Treasury &

Securities Services

Significant growth of collaboration between

businesses

Surpassed $1B revenue target for IB

revenue generated by CB clients in

FY2009

IB client referrals to Private Bank/Private

Wealth Management represented

estimated total client net worth of $22B

IB and CB referrals resulted in $6.7B or

29% of 2009 Institutional

Management/Retirement Planning

Service new AUS mandates

Treasury &

Securities

Services

Investment Bank

Commercial

Banking

$0.7B,

’04-’09 CAGR

of

16%

1

Shared

revenue

$1.2B,

’05-’09 CAGR

of

21%

2

$2.6B,

’04-’09 CAGR

of

6%

3

Our businesses operate more strongly together than apart

Wholesale business synergies

1 

Represents revenue from FX products being sold to TSS clients

2 

Represents gross IB revenue to CB clients; includes advisory, ECM and DCM products fees

3 

Represents revenue from TS products being sold to CB clients

Great opportunities remain for further collaboration between businesses

6

Significant collaboration between IB/CB/TSS (FY 2009)

Our businesses operate more strongly together than apart

Benefits of retail branch network to the rest of the Firm

Business Banking loan originations of

$2.3B

Home lending products sold in

branches of $23.1B

Investment sales in branches of

$21.8B

CB clients completed 25 million retail

channel transactions

WaMu acquisition drives significant future growth across the Firm —

RFS, Card, CB and AM

69%

69%

48%

38%

27%

JPM Consumer

Business Banking

Private Wealth

Management

Commercial

Banking

Private Banking

~1.8mm credit cards originated in the

branches

~8.9mm retail households have a

credit card

7

Current branch footprint

Customers who used a branch teller in 4Q09

Asset Management (FY2009)

Commercial Banking (FY2009)

Card Services (FY2009)

Retail Financial Services (FY2009)

JPM has maintained a fortress balance sheet throughout the crisis

7%

8%

9%

10%

11%

12%

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Tier 1 Capital Ratio

Old Target Tier 1:

8.0 -8.5%

12/31/07

12/31/08

12/31/09

Tier 1 Common

$73.7

$86.9

$105.3

Risk Weighted Assets

$1,052

$1,245

$1,198

Tier 1 Capital Ratio

8.4%

10.9%

11.1%

Tier 1 Common Ratio

7.0%

7.0%

8.8%

Tier 1 Leverage Ratio

6.0%

6.9%

6.9%

Never breached old management targets of 8.0% to 8.5% Tier 1 even without TARP and

Bear Stearns RWA relief

1 

See note D on slide 25

8

Capital

position

summary

1

–

Basel

I

($

in

billions)

Capital position excluding government assistance (TARP and Bear Stearns Relief)

Fortress balance sheet extends to balance sheet funding

Very high capital levels

$900B+ of customer deposits covers loans 1.5x

IB markets businesses funded with long-term debt to meet cash needs

Liquid

investment

portfolio

and

large

available

collateral

pools

provide

significant contingency funding sources

Limited reliance on short-term, unsecured funding

All wholesale funding financing executed centrally to manage maturity

profile, etc.

Funds

transfer

pricing

process

is

controlled

centrally

to

ensure

proper

and

consistent arms-length crediting/charging for liquidity across all LOBs

9

Strong Funding

and Liquidity

Profile

Robust Central

Treasury

Practices

JPM is positioned well for any environment, but execution against key challenges

will be critical

Select challenges we face:

Continued high levels of credit costs in 2010 (at least)

Economic conditions including high levels of uncertainty

Legislative and regulatory changes for financial services

Heightened competition from domestic and foreign banks

and non-banks

Delivering against and beyond growth plans

10

Refinement

of

standalone

business

capital

requirements

validates

strong

firmwide

capital position

1

Pro forma Year-end 2009 updated for elements of the new methodology

2

Calculated based on Tier 1 Common

Standalone capital levels, unique to

each LOB, refined to incorporate

Tier 1 Common expectations

Standalone capital levels based on

consideration of a number of

different factors including:

Comparison to peer capital levels

by business

Level of loan loss reserves

LOB earnings power and ability to

generate capital over time

Economic risk capital

Strong capital position today will be further strengthened by significant earnings and need for lower

reserve levels over time

11

New vs. current LOB equity ($ in billions)

Current

1

New

O/(U)

Investment Bank

$33.0

$40.0

$7.0

Retail Financial Svcs.

25.0

28.0

3.0

Card Services

15.0

15.0

-

Commercial Banking

8.0

8.0

-

Treasury & Sec. Svcs.

5.0

6.5

1.5

Asset Management

7.0

6.5

(0.5)

Corporate / Other

NA

49.0

-

Total LOB Common Equity

NA

$153.0

-

Excess

Common

Equity

2

NA

4.2

-

Total Firm Common Equity

$157.2

$157.2

-

Credit performance improvement is a key driver to improved earnings outlook

3.04%

1.00%

1.00%

2009

Prior

Expectations

2009 prior and new expectations for net charge-off rates

New

Expectations

IB

1.02%

0.50%

0.50%

CB

8.45%

5.00%

4.50% +/

Card

(Chase)

4.32%

0.30%

Home

Equity

3.05%

0.08%

0.10% +/

Prime

Mortgage

0.25-0.35% +/-

Reserve levels will adjust as underlying credit

improves and certain portfolios

run off

1

See note C on slide 25

2 

Represents

the

establishment

of

an

allowance

for

loan

losses

for

the

receivables

of

credit

card securitization trusts being consolidated due to the implementation of FAS 166/167

Reserves—pro

forma

4Q09

for

credit

card

trust

consolidation

12

Pro

forma

12/31/09

($ in billions)

Allowance for

Loan Losses

1

Loan Loss

Coverage Ratio

1

Wholesale

$7.1

3.6%

Consumer

31.5

6.6%

Firmwide

$38.6

5.5%

Memo: Credit card consolidation

2

(included in Consumer)

$7.0

Tremendous growth opportunities position us well for the future

Open 120+ new branches and hire an additional

2,100 personal bankers and 450 investment

sales reps in 2010

Expand Small Business; hire 300+ additional

small business bankers, adding to the existing

1,900 small business bankers

Maximize value of existing Chase and former

WaMu branches

Increase penetration of products through

cross-sell

Leverage heritage WaMu footprint for expanded

Small Business, Middle Market and Private

Banking

Capitalizing on our retail platform

Repositioning our Card business

New Card products to better serve our growing

share of the affluent segment and further increase

share of spend market

Use Ultimate Rewards and Blueprint to improve

engagement with Chase products

Accelerating international wholesale businesses

Expand reach of Global Corporate Bank

Broaden network coverage and TS product

capabilities across regions

Focused on 3,000 shared IB/TS Multinational

and International Large Corporate Clients

Continued expansion of IB Emerging Markets

franchise (e.g., BRIC)

IM growth in Emerging Markets (e.g., China,

India, Korea, Brazil); further capitalize on cross-

border investment flows

Commodities expansion (including acquired RBS

Sempra assets)

International Equities and Prime Services

expansion (e.g., Prime Brokerage EMEA

development, Asia build-out)

Mid-Corporate and Middle Market international

revenue expansion

13

Performance targets reflect LOB equity, normalized credit and growth

Performance targets (through the cycle)

We expect to deliver strong returns across all businesses

1 

ROE at Performance Target calculated using target metric and Steady State assumptions. Steady State reflects fully normalized credit and the completion of the run-off in the loan

portfolios

14

Performance Targets

Line of Business

Investment Bank

ROE

20%

17%+/-

17%+/-

Retail Financial Services

ROE

28-30%

30% +/-

30% +/-

Card Services

ROE

23-25%

20% +/-

20% +/-

Commercial Banking

Overhead

45%

< 40%

ROE

-

20%+/-

20%+/-

Treasury & Securities Services

Pretax margin

35%

35% +/-

30%

+/-

1

Asset Management

Pretax margin

35%

35% +/-

35%

+/-

1

Target Metric

New

Targets

ROE at

Targets

1

Old

Targets

JPM

Significant earnings upside if the Firm reaches performance targets

Steady State reflects normalized credit and stable loan portfolios

Earnings growth will result in significant capital generation

Excess capital provides flexibility for dividend increases, share buybacks, new investments & acquisitions

Net income by LOB ($ in billions)

$22 -

$24

$11.7

¹

Net income projections based on performance target and steady state assumptions; additional assumptions were made for TSS and AM ROE

targets including Steady State revenue and tax rate

15

$6.9

$0.1

($2.2)

$1.3

$1.2

$1.4

$3.0

IB

RFS

Card

CB

T&SS

AM

Corporate

2009 Net Income

Net Income at Performance Targets¹

Agenda

Page

16

Appendix

16

Investment Bank

Leadership positions

#1

ranking

in

Global

IB

Fees

with

9.2%

market

share

4

Leadership

across

all

capital

raising

categories

5

Ranked #1 for FY2009 in: Debt, Equity & Equity Related,

Equity & Equity-related, Debt, Long-term Debt and Loan

Syndications

5

Strong international franchise with #1 fee rankings in EMEA

and

Latin

America

4

Achieved leadership positions in markets businesses with

estimated

12%

share

of

industry

6

Growth initiatives

Build-out Commodities platform

Continue international growth through base business and

Global Corporate Bank, particularly in Emerging Markets

$1B investment in technology to build next generation platforms

Outlook

Expect Fixed Income and Equity Markets revenue to normalize

over time as conditions stabilize

$ in millions

1 

Loans held-for-sale and loans at fair value were excluded when calculating the loan

loss coverage ratio and net charge-off rate

2 

Calculated based on average equity

3 

Average Trading and Credit Portfolio VAR at 99% confidence interval

4 

Source: Dealogic

5 

Source: Thomson Reuters, FY2009

6 

Source: Based on internal JPM estimates

17

2007

2008

2009

Revenue

$18,291

$12,335

$28,109

IB Fees

6,616

5,907

7,169

Fixed Income Markets

6,339

1,957

17,564

Equity Markets

3,903

3,611

4,393

Credit Portfolio

1,433

860

(1,017)

Expense

13,074

13,844

15,401

Credit Costs

654

2,015

2,279

Net Income

$3,139

($1,175)

$6,899

Key Statistics ($B)

Overhead Ratio

71%

112%

55%

Comp/Revenue

44%

62%

33%

EOP Loans

$89.8

$85.0

$49.1

Allow. for Loan Losses

$1.3

$3.4

$3.8

Net Charge-off Rate

1

0.06%

0.14%

3.04%

ALL

/

EOP

Loans

1

1.97%

4.83%

8.25%

ROE

2

15%

(5%)

21%

VAR

($mm)

3

$106

$202

$248

EOP Equity

$21.0

$33.0

$33.0

Retail

Financial

Services

–

Drivers

1

Includes purchased credit-impaired loans acquired as part of the WaMu transaction

2

Does not include held-for-sale loans

Retail Banking ($ in billions)

Consumer Lending ($ in billions)

Total Consumer Lending originations of $181.0B:

Mortgage loan originations down 11% YoY

Auto originations up 22% YoY:

–

YoY increase driven by market share gains in Prime segments and new

manufacturing relationships

3rd party mortgage loans serviced down 8% YoY

Average deposits of $340.8B up 39% YoY

YoY increase largely due to the impact of the WaMu transaction

Deposit margin expansion reflects disciplined pricing strategy and a

portfolio shift to wider spread deposit products

Branch production statistics:

Checking accounts up 5% YoY

Credit card sales up 3% YoY

Mortgage originations up 84% YoY

Investment sales up 23% YoY

2007

2008

2009

Key Statistics

Average Deposits

$206.7

$244.6

$340.8

Deposit Margin

2.72%

2.89%

2.96%

Checking Accounts (mm)

10.8

24.5

25.7

# of Branches

3,152

5,474

5,154

# of ATMs

9,186

14,568

15,406

Investment Sales ($mm)

$18,360

$17,640

$21,784

18

2007

2008

2009

Credit Metrics

NCO Rate (excl. credit-impaired)

0.67%

2.08%

3.68%

ALL/Loans (excl. credit-impaired)

1.24%

3.16%

5.04%

Key Statistics

Home Equity Originations

$48.3

$16.3

$2.4

Avg

Home

Equity

Loans

Owned

1

$90.4

$107.0

$135.9

Mortgage Loan Originations

$159.4

$169.0

$150.7

Avg

Mortgage

Loans

Owned

1,2

$36.2

$77.4

$142.2

3rd Party Mtg

Loans Svc'd

(EOP)

$615

$1,173

$1,082

Auto Originations

$21.3

$19.4

$23.7

Avg

Auto Loans

$41.1

$43.8

$43.6

Retail Financial Services

1 

Calculated based on average equity

2 

Source: SNL Corporation; market share data as of June 2009, updated for

subsequent acquisitions for all banks through Sept 2009; includes deposits in

domestic offices (50 states and D.C.), Puerto Rico and U.S. Territories only and

non-retail branches are not included

3 

Source: 4Q09 Company reports

4 

Source: Inside Mortgage Finance, 4Q09

5 

Source: National Mortgage News, 3Q09

6 

Source: Autocount (including captives), YTD December 2009

Leadership positions

#3

in

deposit

market

share

2

#3

in

Branch

network

3

#3

in

Mortgage

Servicing

4

Growth initiatives

Build-out WaMu footprint

Create a consistent customer experience

Build and train sales force

Expand product breadth and service capabilities (i.e., investments sales, small business

lending)

Ramping up new build capacity; 120+ new builds in 2010

Continue to focus on attractive segments (e.g., increase share of affluent investments, small

business lending)

Drive customer engagement through products and service innovation (e.g., mobile banking,

credit and debit rewards)

Outlook

NSF/OD policy changes estimated to reduce annualized net income by $500mm +/-

Home Lending portfolio expected to decline by 10-15%, reducing net interest income by

$1B +/-

Credit environment remains uncertain

Signs

of

stability

improvement

Over next several quarters, quarterly losses could reach:

–

$1.4B for Home Equity

–

$600mm for Prime Mortgage

–

$500mm for Subprime Mortgage

Continued elevation in credit-related expense

Expense remains modestly above 2009 levels, reflecting investments in branch new builds

and sales force hires

$ in millions

#3

in

Mortgage

Originations

4

#3

in

Home

Equity

Originations

5

9.2%

market

share

in

Mortgage

Originations

4

#1

in

Auto

Finance

6

19

2007

2008

2009

Retail Financial Services

Net Income

$2,925

$880

$97

ROE

1

18%

5%

0%

EOP Equity ($B)

$16.0

$25.0

$25.0

Retail Banking

Net Interest Income

6,193

7,659

10,781

Noninterest Revenue

3,763

4,951

7,169

Revenue

$9,956

$12,610

$17,950

Expense

6,166

7,232

10,357

Credit Costs

79

449

1,142

Net Income

$2,245

$2,982

$3,903

Consumer Lending

Net Interest Income

4,333

6,506

9,711

Noninterest Revenue

3,016

4,404

5,031

Revenue

$7,349

$10,910

$14,742

Expense

3,739

4,845

6,391

Credit Costs

2,531

9,456

14,798

Net Income

$680

($2,102)

($3,806)

Card Services

1 

Calculated based on average equity

2 

Excludes WaMu

3 

Source: Based on internal JPM estimates

$ in millions

Leadership positions

20%

market

share

of

General

Purpose

Credit

Card

outstandings

2

17.3%

market

share

of

sales

volume

2

#1 co-brand card issuer in the U.S.

3

Growth initiatives

Continue to focus on increasing customer engagement

Capture benefits from recent product launches

Increase

penetration

of

Retail

channel

including

newly

converted

WaMu

branches

Establish Ultimate Rewards as a core relationship tool

Leverage co-brand partnerships to enhance the brand and drive engagement of

affluent customers

Outlook

Chase losses could approach 11% in 1Q10, including the adverse timing effect

of payment holiday of approx. 60bps, with improving trend in 2Q10; 2H10

dependent on environment

WaMu

losses

could

approach

24%

+/-

over

the

next

several

quarters

Anticipate net income reduction from legislative changes of $500-$750mm

Estimated full year average outstandings expected to decline 10-15% in 2010

due to run-off of WaMu portfolio and lower yielding promotional balances

Expect $1B +/-

net loss in 1Q10 with improving trend in 2Q10, before potential

reserve actions; 2H10 dependent on the environment and reserve actions

Continue to invest in the business

20

2007

2008

2009

Revenue

$15,235

$16,474

$20,304

Expense

4,914

5,140

5,381

Credit Costs

5,711

10,059

18,462

Net Income

$2,919

$780

($2,225)

Key

Statistics

Incl

WaMu

($B)

ROO (Pretax)

3.09%

0.78%

(2.05)%

ROE

1

21%

5%

(15)%

EOP Equity

$14.1

$15.0

$15.0

Key

Statistics

Excl

WaMu

($B)

Avg

Outstandings

$149.3

$155.9

$148.8

EOP Outstandings

$157.1

$162.1

$143.8

Charge Volume

$354.6

$361.1

$312.2

Net Accts Opened (mm)

16.4

14.4

10.2

Managed Margin

8.16%

8.16%

8.97%

Net Charge-Off Rate

3.68%

4.92%

8.45%

30+ Day Delinquency Rate

3.48%

4.36%

5.52%

#1

merchant

acquirer

in

e-commerce

payment

processing

3

Leadership positions

Maintained middle market top 3 leadership position nationally in

market

penetration

and

lead

share

4

#1 in lead share and market penetration in 3 of the top

4

MSAs

4

Top 2 leading provider of Treasury Services products and 

international

services

to

middle

market

clients

4

Top

3

asset-based

lending

lead

arranger

in

the

U.S.

5

#1

multi-family

lender

in

the

U.S.

6

Growth initiatives

Build out Middle Market business in the expanded WaMu

branch network and grow sales force

Targeting growth in distinct geographies within California,

Florida, Georgia, Oregon and Washington

Continue to grow Mid-Corporate segment: focus on prospect

conversions, expand international revenue and capitalize on

opportunities to cross-sell IB products

Invest in commercial real estate recovery: prepare business to

capitalize on opportunities

Outlook

Strong reserves, but credit expected to remain at elevated

levels

1 

Includes deposits and deposits swept to on-balance sheet liabilities

2 

Loans held-for-sale and loans at fair value were excluded when calculating the

loan loss coverage ratio and net charge-off rate

3 

Calculated based on average equity

4 

Source: Greenwich Market Study, FY2009

5 

Source: Thomson Reuters, FY2009

6 

Source: FDIC as of September 30, 2009

Commercial Banking

$ in millions

21

2007

2008

2009

Revenue

$4,103

$4,777

$5,720

Middle Market

2,689

2,939

3,055

Comm. Term Lending

-

243

875

Mid-Corp. Banking

815

921

1,102

Real Estate

421

413

461

Other

178

261

227

Expense

1,958

1,946

2,176

Credit Costs

279

464

1,454

Net Income

$1,134

$1,439

$1,271

Key Statistics ($B)

Avg

Loans

$61.1

$82.3

$106.7

EOP Loans

$66.2

$115.4

$97.4

Avg

Liability

Balances

1

$87.7

$103.1

$113.2

Allow. for Loan Losses

$1.7

$2.8

$3.0

NPLs

$0.1

$1.0

$2.8

Net

Charge-Off

Rate

2

0.07%

0.35%

1.02%

ALL/Loans

2

2.81%

2.45%

3.12%

ROE

3

17.0%

20%

16%

Overhead Ratio

48%

41%

38%

EOP Equity

$6.7

$8.0

$8.0

Treasury & Securities Services

1 

Includes deposits and deposits swept to on-balance sheet liabilities

2 

Calculated based on average equity

3 

Source: Ernst & Young & Federal Reserve  (Based on # of sweep accounts and

average daily balances)

4 

Source: Nilson

5 

Source: 4Q09 company reports

6 

Source: Based on internal JPM estimates

Leadership positions

Treasury Services

#1

in

ACH

originations

3

#1

in

US

Dollar

Clearing

with

>

20%

in

market

share

3

#1

in

Purchasing

Cards

4

#1

in

Liquidity

3

Worldwide Securities Services

#2

in

global

assets

under

custody

5

#2

Global

Fund

Services

for

registered

investment

pools

5

#1

Depository

Receipts

(by

market

capitalization)

6

Growth initiatives

Continue to expand global footprint through Global Corporate Bank

Expand branch footprint and local cash capabilities (BRIC+) to support our

largest global clients

Strengthen and expand product capabilities, particularly in:

Integrated, global liquidity solutions

Global Commercial Card solutions

International Funds Services

Invest in platforms to improve efficiency and provide market leading integrated

client solutions

Differentiate client service and increase  penetration of priority segments

Outlook

Performance will be affected by market levels and liability balance flows

$ in millions

22

2007

2008

2009

Revenue

$6,945

$8,134

$7,344

Treasury Services

3,190

3,779

3,702

Worldwide Securities Svcs.

3,755

4,355

3,642

Expense

4,580

5,223

5,278

Credit Costs

19

82

55

Net Income

$1,397

$1,767

$1,226

Key Statistics

Avg

Liability

Balances

($B)

1

$228.9

$279.8

$248.1

Assets Under Custody ($T)

$15.9

$13.2

$14.9

Pretax Margin

32%

33%

26%

ROE

2

47%

47%

25%

TSS Firmwide

Revenue

$9,565

$11,081

$10,231

TS Firmwide

Revenue

$5,810

$6,726

$6,589

TSS

Firmwide

Avg

Liab

Bal

($B)

1

$316.7

$382.9

$361.2

EOP Equity ($B)

$3.0

$4.5

$5.0

Asset Management

Leadership positions

Largest

global

money

market

fund

manager

2

#2

US-based

global

hedge

fund

manager

3

#1

global

provider

for

ultra-high-net-worth

clients

4

#4

US

mutual

fund

family

5

Gold Standard Award for Funds Management (UK); only firm ever to

win

seven

Gold

Standard

awards

6

Asset Management Company of the Year for Asia, Hong Kong

7

Best

overall

performing

foreign

asset

manager

operating

in

China

8

#1

Private

Bank

in

Asia

9

Growth initiatives

Increasing the number of Private Banking client advisors and

leverage WaMu footprint to increase Private Banking business in the

U.S. and internationally

Continue Investment Management growth, including onshore

investing capabilities in Emerging Markets

U.S. Retail fund distribution expansion

Improve

investment

performance

—

Intense

focus

on

generating

strong risk-adjusted returns

Enhance alternatives product capabilities across all asset classes

and geographies

Outlook

Management and performance fees will be affected by market levels

1 

Calculated based on average equity

2 

Source: iMoneynet, December 31, 2009

3 

Source: Absolute Return

4 

Source: Euromoney

magazine

5 

Source: Barron’s

6 

Source: Incisive media (UK)

7 

Source: The Asset Magazine, September 2009

8 

Source:

PriceWaterhouseCoopers

survey

9 

Source: Risk magazine

2007

2008

2009

Revenue

$8,635

$7,584

$7,965

Private Bank

2,362

2,565

2,585

Institutional

2,525

1,775

2,065

Retail

2,408

1,620

1,580

Private Wealth Management

1,340

1,387

1,316

J.P. Morgan Securities

-

237

419

Expense

5,515

5,298

5,473

Credit Costs

(18)

85

188

Net Income

$1,966

$1,357

$1,430

Key Statistics ($B)

Assets Under Management

$1,193

$1,133

$1,249

Assets Under Supervision

$1,572

$1,496

$1,701

Average Loans

$29.5

$38.1

$35.0

EOP Loans

$36.1

$36.2

$37.8

Average Deposits

$58.9

$70.2

$77.0

Pretax Margin

36%

29%

29%

ROE

1

51%

24%

20%

EOP Equity

$4.0

$7.0

$7.0

$ in millions

23

Corporate/Private Equity

Outlook

Private Equity

Results will be volatile

Corporate

Net interest income and securities gains

will generally trend with the size of the

investment portfolio

Quarterly net income expected to

decline to approximately $300mm,

subject to the size and duration of the

investment securities portfolio

Private Equity portfolio ($ in billions)

Net Income ($ in millions)

2007

2008

2009

Private Equity

2,165

(690)

(78)

Corporate

(150)

1,458

3,743

Merger Related

(130)

(211)

(635)

Net Income

$1,885

$557

$3,030

24

$6.2

$6.1

$7.2

$6.9

$7.3

6.3%

5.8%

9.2%

8.6%

9.7%

$5.0

$5.5

$6.0

$6.5

$7.0

$7.5

$8.0

2005

2006

2007

2008

2009

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Portfolio as % of equity ex. goodwill

EOP Carrying value

        Non-GAAP financial measures

A.

Financial results are presented on a managed basis, as such basis is described in the Firm’s Annual Report on Form 10-K for the year

ended December 31, 2009.

B.

All non-GAAP financial measures included in this presentation are provided to assist readers in understanding certain trend

information.  Additional information concerning such non-GAAP financial measures can be found herein, to which reference is hereby

made.

C.

The ratio for the allowance for loan losses to end-of-period loans excludes 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, Consumer Lending net charge-off rates exclude the impact of purchased credit-impaired loans. The allowance

related to the purchased credit-impaired portfolio was $1.6 billion at December 31, 2009.

D.

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 qualifying perpetual preferred stock, qualifying noncontrolling interest in subsidiaries and qualifying trust preferred capital debt

securities. Tier 1 common capital, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and

compare the quality and composition of the Firm’s capital with the capital of other financial services companies. The Firm uses Tier 1

common capital along with the other capital measures to assess and monitor its capital position.

Footnotes and notes on non-GAAP financial measures

1

Source: Dealogic

2

Source: Thomson Reuters, FY2009

3

Source: Based on internal JPM estimates

4

Source: SNL Corporation; market share data as of June 2009,

updated for subsequent acquisitions for all banks through Sept 2009;

includes deposits in domestic offices (50 states and D.C.), Puerto Rico

and U.S. Territories only and non-retail branches are not included

5

Source: 4Q09 Company reports

6

Source: Inside Mortgage Finance, 4Q09

7

Source: National Mortgage News, 3Q09

8

Source: Autocount (including captives), YTD December 2009

9

Excludes WaMu

10

Source: Greenwich Market Study, FY2009

11

Source: FDIC as of September 30, 2009

12 

Source: Ernst & Young & Federal Reserve (Based on # of sweep

accounts and average daily balances)

13 

Source: Nilson

14 

Source: iMoneynet, December 31, 2009

15 

Source: Absolute Return

16 

Source: Euromoney

magazine

17 

Source: Barron’s

18 

Source: Incisive media (UK)

19 

Source: The Asset Magazine, September 2009

20 

Source: PriceWaterhouseCoopers

survey

21 

Source: Risk magazine

25

February 25, 2010

I

N

V

E

S

T

M

E

N

T

B

A

N

K

Jes

Staley, Investment Bank Chief Executive Officer

Thoughts on the IB

2010 priorities

Performance metrics

Leadership in 2009

Growth initiatives

Agenda

Derivatives

2010 outlook

1

Thoughts on the IB

Client franchise

5,000 issuers

16,000 investors

Reputation and client trust

Leader in capital markets

Highest industry market share 9.5%

Hybrid

business

model

–

credit

originator

and market maker

Proven risk manager

Talent

Strengths

Fixed Income margin compression

Regulatory environment

Maintaining price discipline

Perception of our social contribution

Economic environment

Challenges

2

Thoughts on the IB

2009 Market environment and 2010 business outlook

2009 market environment

Sec’d

Prods

Prime

serv’s

M&A

ECM

Emerging

Markets

FX/

Rates

DCM

Equities

Commod’s

Credit

+

_

3

2010 Priorities

Clients

Vigilant focus on

clients’

long-term

interests

Reputation

Role financing governments, non-profits and

corporates

Talent and diversity

Strategy

Performance

ROE

IB fee wallet share

Markets revenue wallet share

Control and discipline

Growth

Emerging markets:

China/Brazil focus

Commodities

Global Corporate

Bank

Redefine markets

Investment

Performance

Efficient capital

allocation

Manage stress loss

Management of Credit

Portfolio

Technology

Strategic Re-

engineering

Project

Low-cost provider

International

location strategy

4

Performance metrics

ROE

17% +/-

Wallet share

10% of Global IB fees

15% of Market revenue

15% reduction in error rate

5

Control and

discipline

Source: Dealogic, on a pro forma basis for all industry mergers

IB Return on Equity

Global IB fees wallet share

Control / Discipline

Performance metrics

Markets revenue wallet share

8.7%

8.4%

8.5%

9.2%

10.0%

2006

2007

2008

2009

Target

Rank               #2                #2

#2

#1

Note: Represents JPM share of top 10 competitors 

7.6%

7.2%

8.6%

12.4%

15.0%

2006

2007

2008

2009

Target

Rank:     #8                 #6                    #5          

#3

15% reduction

6

$21

$21

$26

$33

$40

15%

(5)%

21%

18%

17%+/-

Target

2006

2007

2008

2009

2010Est

Allocated capital ($B)

ROE (%)

0.0000%

0.0001%

0.0002%

0.0003%

0.0004%

0.0005%

Target

2009

2008

2007

League table results

Helped clients issue $620B of stocks and

bonds,

more

than

any

other

firm

1

Provided urgent financing for municipalities

Advised on 322 mergers and acquisitions

globally,

more

than

any

other

firm

1

Advised on many of the largest and most

complex transactions

11

of

the

year’s

largest

25

deals

1

119 cross-border deals, more than any

firm

1

Loaned

$204B

to

295

issuers

globally

1,2

Average loan size $691mm, more than

double

the

market

average

1

Loans used to fund payrolls, restructure

balance sheets, finance growth and

create jobs

1

Source: Dealogic

2

Lead left bookrunner

basis

3

Source: 2008 data is pro forma for JPM merger with Bear Stearns

4

Global Equity & Equity-related includes rights offerings

5

Global Debt & Long-term Debt includes ABS, MBS and taxable municipal securities

6

Global M&A for 2008 adds back transactions withdrawn since 12/31/08

Leadership in 2009

7

2009

2008

3

Rank

Share

Rank

Share

Based on fees

(per Dealogic)

Global IB fees

#1

9.2%

#2

8.5%

Based on volumes

(per Thomson Reuters)

Global Debt, Equity & Equity-related

#1

9.5%

#1

9.4%

4

#1

12.6%

#1

10.3%

Global

Debt

5

#1

9.2%

#1

9.3%

Global

Long-term

Debt

5

#1

8.5%

#3

8.8%

Global

M&A

Announced

6

#3

23.6%

#2

27.6%

Global Loan Syndications

#1

9.6%

#1

11.3%

Global

Equity

&

Equity-related

Leadership in 2009

Supporting low carbon economy

Helping clients raise critical capital

State of

Illinois

State of

California

Committed $4B

to pay off

IOUs issued during the

state’s cash-flow crisis

Underwrote $1.4B

–

the 

entire

amount

offered

–

of

bonds

Raised $12.2B in equity,

convertibles, bonds and

asset-backed securities for

Ford Motor Company in

2009

Invested over $100mm of

tax equity in Horizon Wind

Energy’s wind power

project

J.P. Morgan’s total wind

portfolio of 58 wind farms

across 16 states

A leader in sourcing,

developing and trading

emission reduction credits

ClimateCare

acquired

in 2008

EcoSecurities

acquired

in 2009 

Helping universities and hospitals

University

of Virginia

Texas Children's

Hospital

Led $250mm

Build

America Bond issuance

Raised $200mm

to help

fund the hospital’s

Neurological Research

Institute and a new

pediatric hospital

Financing for state and local governments

Raised $375mm

for

Chinese property

developer Country

Garden –

the first Asia

high yield bond in more

than a year

8

Growth initiatives

Emerging Markets

Provided critical capital raising

Cemex

follow-on

Sappi refinancing

Petrobras

bond

VisaNet

(now Cielo), the largest

Brazilian IPO ever

Re-opened key emerging markets

Hong Kong IPO, Asia High Yield, LBO

Led 8 of 10 largest Asia primary equity

deals

Raised $20B for corporate

recapitalizations in Asia

Sovereign debt issuance for Brazil,

Mexico, Qatar and South Africa

Expand local client coverage; add onshore

bankers

Build cash equities and derivatives –

Russia, Brazil, China, India, Taiwan, Korea

Focus on local debt and Fixed Income flows

Deliver the firm through cross-selling and

Global Corporate Banking

2010  priorities

2009 client support

9

Growth initiatives

Commodities

–

RBS

Sempra

acquisition

Acquiring global metals, global oil and

European power and gas assets of RBS

Sempra Commodities

Closing in 2Q10, subject to regulatory

approvals

Expected to pay $1.7B subject to

distributions prior to closing

Immediately profitable after closing

Transaction overview

Highly complementary to our existing

Global Commodities business

Allows us to deliver more

comprehensive solutions to our clients

globally

Nearly doubles the number of corporate

clients

Diversifies our Fixed Income earnings

Rationale

10

Growth initiatives

Commodities

–

RBS

Sempra

acquisition

EMEA Power & Gas

Base Metals

Global Oil

Physical

Financial

Trading

Custody

Physical

Financial

J.P. Morgan

2

4

4

0

2

4

RBS Sempra

4

2

2

5

5

2

Pro forma

5

5

5

5

5

5

11

Growth initiatives

Technology

–

$1B

investment

2010 priorities

2009 progress

Execute three-year Strategic

Reengineering Program focused on:

Next-generation front-end derivative

and emerging market trading platforms

OTC clearing requirements

Core processing infrastructure

Build-out electronic and algorithmic

trading infrastructure for Equities

Implement Prime Services offering

globally, including Synthetic Prime

Brokerage

Implement global location strategy

Completed Bear Stearns merger

Migrated 600,000 OTC Derivatives

positions

Mapped over 14,000 clients and

converted 465,000 total accounts

Launched state-of-the-art platforms for

FX Options, Brazil and Prime Services

Consolidated infrastructure in US Cash

Equities and Commodities

Processed record volumes, up 82%

from pre-merger levels

12

Our derivatives business remains client-focused

Derivatives widely used by corporations, governments, agencies and supra-nationals to

manage risk and lower the cost of capital

Derivative receivables, gross of collateral, declined by 45% to $146B at year-end 2009

Derivative receivables, gross (as of 12/31/09)

Derivative

Receivables,

Gross of Collateral

$79T

at 12/31/09

Derivative

Notional

Outstanding

Gross

Derivative

Receivables

Less

Bilateral

Netting

Net derivative

receivables are

only 19 basis

points of notional

$1.6T

($1.4T)

$88T

at 12/31/08

$146B

13

Derivative receivables, net (as of 12/31/09)

Counterparty exposure is well managed

Net exposure declined by 55% while revenue increased over 25% year-over-year

Net derivative receivables represent less than 10% of IB assets at year-end 2009

IB Level 3 assets, including derivatives, declined over 15% during 2009

Less Cash

Collateral

Less Other

Less Liquid

Collateral

Derivative

Receivables,

Net of All

Collateral

Derivative

Receivables,

Net of Cash

Collateral

Derivative

Receivables,

Gross of

Collateral

$146B

($66B)

($15B)

$80B

$65B

$143B  

at 12/31/08

$266B

at 12/31/08

1

Other high quality includes low risk counterparties, including senior or preferred positions in special purpose entities

83%

17%

14

Risk Group

Percent

Other

high

quality

1

26%

AAA to AA-

36%

A+ to A-

12%

BBB+ to BBB-

9%

BB+ to B-

14%

CCC+ & below

3%

Total

100%

Exposure by Product

Percent

Interest Rate

29%

Credit derivatives

28%

Foreign exchange

27%

Equity

8%

Commodity

8%

Total

100%

Disadvantages corporates by tying up liquidity

Leading reform of OTC derivative markets

Comprehensive, rigorous oversight of all dealers and large market participants

Transaction reporting for all trades to regulators

Mandatory clearing of most standardized, highly liquid derivative contracts between

dealers and major swap participants

Clearing for all OTC derivative:

Will divert funding away from job creation

Exchange trading for all derivatives

Even standardized liquid contracts not amenable to exchange trading

Actively participating in strengthening OTC market infrastructure

Investing in technology to provide clients superior access to liquidity

Reform we advocate

Regulation we believe would be harmful to the economy

Leading the market evolution

15

2010 Outlook

Expect Fixed Income margin compression and reduced capital raising

Target ROE of 17% +/-

Focus on growth initiatives:

Emerging Markets

Commodities

Technology

Maintain leading share through vigilant client focus

16

February 25, 2010

T

R

E

A

S

U

R

Y

&

S

E

C

U

R

I

T

I

E

S

S

E

R

V

I

C

E

S

Heidi Miller, Treasury & Securities Services Chief Executive Officer

2009 Recap by business

2010 Priorities

International expansion

##

Agenda

Financial performance

Business drivers

Expense focus

Global Corporate Bank

1

Why we love this business

World class market leading franchise

Strong organic revenue and profit growth over past 5 years

Truly global business with ~50% of revenue non-US

High return, low capital intensity, scale advantages

Stable, annuity-like revenue stream

Significant client and platform leverage across the firm

2

$0.5

$1.5

$1.8

$2.4

$2.9

$2.1

2004

2005

2006

2007

2008

2009

Operating margin

Revenue

TSS

–

strong

5-year

growth

trend

despite

market-driven

impact

to

revenue

in

2009

$5.5

$6.1

$6.9

$8.1

$7.3

Efficiency

ratio

73%

72%

64%

66%

70%

88%

$4.7

TSS revenue and operating margin ($ in billions)

3

“Flight to quality”

impact leveled off

$251

$232

$234

$277

$336

$260

$268

$254

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Flight to quality: 29% growth

Reversal and leveling-off

Average liability balance trend by quarter ($ in billions)

4

TSS –

complete and diversified product set

2009 TS revenue $3.7B

2009 WSS revenue $3.6B

34%

40%

14%

12%

Liquidity

Solutions

Core Cash

Management

Card

Products

Trade &

Logistics

Global

Custody

Global Fund Services

Financing &

Markets

Products

47%

31%

22%

(Clearance & Collateral Management,            

Securities Lending, Depositary Receipts)

2009 WSS revenue contribution

2009 TS revenue contribution

5

TSS –

and we continue to win in the market place

Kasikornbank

Worldwide Securities Services select 2009 wins

Treasury Services select 2009 wins

6

$1.3

$1.5

$1.1

$0.9

$1.0

$0.4

2004

2005

2006

2007

2008

2009

Operating margin

Revenue

TS –

strong upward trajectory over the period despite deposit spread

compression

$2.9

$3.0

$3.2

$3.8

$3.7

$2.5

TS revenue and operating margin ($ in billions)

7

TS 2009 results –

spreads tell the story

Key drivers of performance

Spread compression on flat

balances

Trade volumes down, but spreads

jump

International payment volumes

up, offset by lower domestic

volumes

Wholesale Card and Government

volumes up

FY 2009 vs. FY 2008

8

2008

2009

Total revenue

$3.78B

$3.70B

Revenue

(2)%

Average balances

$161B

$161B

Fed Funds

1.92%

0.16%

Net interest income

(15)%

Noninterest

revenue

10%

Expense

2%

3,503

3,870

4,000

3,896

2006

2007

2008

2009

105

111

116

114

2006

2007

2008

2009

17

19

23

27

2006

2007

2008

2009

145

170

171

193

2006

2007

2008

2009

TS –

underlying business growth remains solid with increased volumes

Note:  Annual transaction volume

Note:  Annual transaction volume

Note:  Annual transaction volume

ACH volume (# in millions)

USD clearing volume (# in millions)

Wholesale cards issued (# in millions)

Int’l electronic funds transfer volume (# in millions)

9

TS –

Best in Class market positions with continued award recognition

Best Overall Bank for Cash Management:

North America (Global Finance)

Best Global Cash Management Services

in Asia Pacific (Asiamoney)

Best Cash Management Specialist,

Financial Institutions (The Asset)

Best Liquidity Solutions Provider (The

Asset)

Best Bank for Risk Management in North

America (Global Finance)

1

Based on number of sweep accounts and average daily balances

Treasury Services rankings

Treasury Services awards

10

Cash management

ACH

#1

USD clearing

#1

Check clearing

#2

Controlled disbursement

#2

Liquidity

1

#1

Card

Purchasing

#1

T&E

#5

TS –

disciplined expense management

Revenue

7.7%

5.5%

Total expense

220 bps

Operating

leverage

Offshoring

Site consolidation

Exited Retail Lockbox

Absorbed BoNY

and WaMu volumes with little

added expense

Platform rationalization and upgrades

Expense containment while continuing

investment initiatives

FY 2009 vs. FY 2006 CAGR

Key 2009 expense initiatives

11

TS –

2010 priorities

Expand Global

Footprint

Branch footprint and local cash capabilities (BRIC+) to support our

largest global clients

Strengthen 

and Expand

Product

Capabilities

Integrated, global liquidity solutions

Self-clearing capabilities in more markets

Global Commercial Card solutions

Continued

Platform

Investment

Global DDA, ACH and Wire platforms

New Card and Trade platforms

Differentiate

Client Service

Shorten onboarding

times, reduce exception processing, and simplify

documentation

12

$0.5

$0.9

$1.3

$1.5

$0.7

$0.1

2004

2005

2006

2007

2008

2009

Operating margin

Revenue

WSS –

strong organic growth

$2.7

$3.1

$3.8

$4.4

$3.6

$2.2

WSS revenue and operating margin ($ in billions)

13

Balances and spreads  

down

Securities lending on-loan

balances and spreads down

Decline in FX volatility

Asset levels down due to

equity market levels, but net

AUC flows positive

WSS 2009 results –

driven by the markets

1

Averages of 4Q08 and 4Q09 JPM G7 and Emerging Markets FX volatility indices

FY 2009 vs. FY 2008

Key drivers of performance

14

200

8

200

9

Total revenue

$

4.36

B

$3.

64

B

Revenue

(16

)%

Average balances

$1

19

B

$

87

B

Fed Funds

1.92%

0.16%

FX volatility

1

24.5

13.6

Net interest

income

(6

)%

Noninterest

revenue

(20)

%

Market driven NIR

(34)

%

Volume driven NIR

(1)%

Expense

1%

Securities lending market dynamic

Balances have declined approximately 40% since

end of 2008, driven by:

Lower demand from Broker/Dealers

Client restrictions on investments and

counterparties

Government and regulatory actions, which

have reduced demand or eliminated

economics

Revenue fell in 2009 due to:

Lower balances

Lower yield on cash collateral investments due

to Fed Funds / LIBOR spread compression

and increased client risk aversion

Lower intrinsic value for US Treasury

securities

Lower dividend season revenue

Industry dynamics

Higher value placed on transparency and risk

mitigation -

movement to cash vs. security

collateral

2006

2007

2008

2009

$300

$408

$384

$220

Average on-loan balances ($

in billions)

Securities lending dynamics

15

269

315

338

336

2006

2007

2008

2009

2,022

2,673

3,574

4,006

2006

2007

2008

2009

13,428

15,841

21,611

22,059

2006

2007

2008

2009

WSS –

business foundation improves

2006

2007

2008

2009

CAGR: 2%

2009 Net AUC flow of ~$800B, up 7% vs. 2008

Global

International

Domestic

$13.9

$15.9

$13.2

$14.9

23%

77%

19%

81%

25%

75%

$234B

$183B

$311B

Note:  Annual volume

Net asset values produced (# in 000’s)

Funds under administration (#)

Assets under custody (AUC, $ in trillions)

# of depositary receipt programs

16

$297B

Market

cap

U.S. - Non-

Govt Fixed

Income

Foreign -

Govt Fixed

Income

Foreign -

Non-Govt

Fixed

Income

Foreign -

Other

U.S. - Other

U.S. - Govt

Fixed

Income

U.S. -

Equities

Foreign -

Equities

WSS –

AUC mix drives revenue

Total AUC: $14.9T

United States

Other Nations

Rate card differentials

FX flows

Securities lending opportunities

Size of lendable base

Total AUC: $14.9T

Other G7

Countries

Implications

Implications

2009 assets by location

2009 AUC by asset type

17

Global Custody

#2

Global Fund Services 

for registered investment pools

#2

European Fund Services

#1

Depositary Receipts 

by market capitalization

#1

Collateral Management

#1

WSS –

Best in Class market positions with continued award recognition

Best Global Custodian (Asian Investor)

Fund Administrator of the Year: Europe

(ICFA magazine)

Pension Custodian of the Year (ICFA

magazine)

Best Overall Hedge Fund Administrator

(HFMWeek)

Securities Lending Manager of the Year

(Global Pensions)

Best Depositary Receipt Bank (The

Asset)

Worldwide Securities Services awards

Worldwide Securities Services rankings

18

WSS –

expense saves offset by investment agenda

Efficiencies from…

Offshoring

/ location strategy

Process re-engineering / leveraging

technology

Vendor reductions

Investment in…

Foundational platforms

Product and geographic build out

Platform optimization & efficiency

On-boarding clients

2,914

2,899

2008

2009

2009 Efficiencies

2009 Investment spend

$300mm+

$160mm+

1%

WSS expense ($ in millions)

Key 2009 expense initiatives

2009 efficiencies fund investments

19

WSS –

2010 priorities

Expand

Global

Footprint

Strengthen

and Expand

Product

Capabilities

Continued

Platform

Investment

Increase

Penetration

of Priority

Segments

Increase wallet share of the top 150 Asset Gatherers and increase

penetration of top 500

Sub-custody capability in select markets

Increase local presence for sales and local service

Global Corporate Bank partnership

ETF and Transfer Agency capabilities

International collateral management capabilities

Alternative investment servicing capabilities

Global fund accounting platform

Joint securities lending platform with the IB

Processing utilities across products

20

TSS continues to focus on international growth

Percentage of non-US revenue

Percentage of non-US employees

21

26%

48%

2004

2009

51

68

2004

2009

Number of non-US locations

35%

48%

2004

2009

Support for increasingly complex

international operations

Multiple regional/local offices

Numerous banking relationships

Cash visibility

Liquidity and credit access

Cash and payments concentration

Comprehensive working capital and

supply chain and risk management

solutions

Risk management (e.g. direct

clearing as a sub-custodian)

Footprint

Capabilities

Coverage

Credit

TSS –

a “bankers’

bank”, but focused on meeting the needs of the world’s largest

companies

Areas of focus for 2010

Client needs

22

Global Corporate Bank –

acceleration underway

A business JV

between TSS

and the IB to

manage

corporate

banking

relationships

with

approximately

3,000 of the

world’s largest

companies

Cash Management

Liquidity / credit access

Trade Finance

Working Capital /  

Syndicated Lending

FX

Derivatives

Commodities

Debt Capital Markets

Local Currency

Services

More local Corporate Banking coverage

Footprint additions and branch upgrades

Increased credit and support infrastructure to support

balance sheet growth

Local treasury operations

Focus products

What is it?

23

Required build out

2009 performance largely market-driven

Underlying drivers of our business are strong

A mid-30s% pretax margin still a target

We continue to invest aggressively in our business

International expansion and meeting the needs of our

largest clients remain top priorities

24

In summary…

February 25, 2010

A

S

S

E

T

M

A

N

A

G

E

M

E

N

T

Mary Erdoes,

Asset Management

Chief Executive Officer

$1.2T

AUM

$1.7T

AUS

$8.0B

Revenue

$1.4B

Net income

29%

Pretax Margin

Who we are: an integrated manufacturer and distributor of multiple alpha sources

15,000+

People

800+

Investment professionals

2,800+

Advisors

153

Locations

32

Countries

Liquidity/

Fixed income

Equities/

Multi-asset

Hedge funds/ Private equity

Real assets/ Highbridge

Private Banking

solutions

Institutional

Ultra

high-net-worth

High-net-worth

Retail

Understand

1

Note: All data reflect FY2009 amounts or year-end balances

The

depth

of

the

performance-based

culture

800+ investment professionals: 58% US / 42% International

14-year average industry experience; 20%+ over 20 years

Consistent long-term focus; continuous refinement

The

breadth

of

distribution

globally

Over 2,800 distribution personnel worldwide covering:

–

Institutions (pension funds, sovereigns, corporates, endowments)

–

Ultra-high-net-worth (in 17 countries)

–

High-net-worth (81 offices across the US)

–

Retail (direct and indirect across 7 major fund platforms)

The innovation and

power of the platform

Cash:

first

to

launch

a

AAA-rated

money

market

fund

in

China

Fixed

income:

Strategic

Income

Opportunity

Funds

launched

last

year,

now

$8B+

Equities:

fundamental

130/30

was

first

of

its

kind,

now

#1

globally

in

AUM

Highbridge:

statistical

arbitrage

engine

as

basis

for

$8B

mutual

fund

platform

Private

Equity:

secondary

fund

launch

of

$800mm

Global

Access

Portfolios:

doubled

to

$7.5B

in

15

months

New CEO perspectives on Asset Management

2

Where we’ve come from…

2001

2009

Size

AUM

$605B

$1,249B

Revenue

$3,085mm

$7,965mm

Total employees

8,000+ 

15,000+

Locations

72

153

Quality

Top quartile funds (3-year)

56 Funds

141 Funds

4 or 5 star rated funds

97 Funds

170 Funds

Top 5 institutional client annual revenue

$55mm

$98mm

Net new Private Banking clients

<0

3,800+

Top 5 retail distributor AUM

$3B

$28B

Financial

Return on Equity

3%

20%

Margin

10%

29%

Earnings

$178mm

$1,430mm

3

Understand

…where we are headed: 2010 Priorities

1) Investment performance

Continue focus on risk-adjusted returns

(74% of fund AUM in top 2 quartiles,

but only 42% 4/5 star)

Flows into long-term assets

(targeted at 6%+ of AUM per year)

4) International presence

Europe: maintain cross-border equity position

and establish fixed income leadership

Japan: expand local coverage (2 new offices)

Asia: bring full power of platform to region

Latin America: develop local capabilities

2) Innovative products

Continued investment in core alpha

generation

Expansion of absolute return/hybrid strategies

Risk-adjusted solutions for 401k, HNW, retail

3) Private Banking expansion

UHNW: sustain market leadership

HNW: capitalize on U.S. investment; expand

internationally

Grow client advisors by 10% per year

(2,300 today)

5) Continued investment

Technology spend up 11%

Initiatives up 30% (new/enhanced platforms)

Run-rate down 13% (efficiencies)

Early 2008 cuts allowed 2009 growth, continuing in

2010

Strengthen position in US retail

Leverage firmwide capabilities

4

Investment performance

Maintain highest focus…

51%

75%

62%

71%

84%

68%

47%

88%

82%

25%

50%

75%

100%

2007

2008

2009

1 year

3 year

5 year

Equities performance (as of December 2009)

Target 65%

Fixed Income performance (as of December 2009)

70%

43%

77%

88%

63%

78%

96%

87%

78%

25%

50%

75%

100%

2007

2008

2009

1 year

3 year

5 year

Target 65%

US platform investment performance

(% AUM in top 2 Lipper quartiles)

Understanding the components

US equity –

79%

Emerging

markets

equity

–

100%

Pacific equity –

0%

5 year (% in top 2 Lipper quartiles)

5 year (% in top 2 Lipper quartiles)

US

fixed

income

(Columbus)

–

97%

Municipals –

94%

Global

fixed

income

(NY)

–

0%

5

8

11

14

27

21

17

15

22

49

29

28

29

2006

2007

2008

2009

Intermediary

Direct

US Retail distribution

Long-term investment is now paying dividends…

2009 record results for long-term mutual

fund flows; #3 in industry

#4 US mutual fund family based on 5-year

performance (Barron’s); 60% of US AUM is

rated either 4 or 5 stars

Aggressive efforts to establish top 5 position

in long-term AUM

Top 10 industry-wide for number of

wholesalers, expected to grow by 30%

Focus

Hiring and training

Further penetration of traditional products

Innovative products (retirement,

long/short, inflation, commodities)

Highlights

2009 US net flows -

long-term mutual funds ($ in billions)

26

1

4

21

10

20

30

Fixed income

US Equity

Int'l Equity

Total LT Flows

Rank

4th

3rd

19th

3rd

US gross sales -

long-term mutual funds ($ in billions)

US Retail long -

term mutual fund AUM ($ in billions)

88

49

64

61

25

50

75

100

2006

2007

2008

2009

LT Rank

19th

20th

15th

11th

Source: Lipper

6

Assets under supervision ($ in billions)

Private Banking

Continue outperformance and outstanding service…

Highlights

Client advisor headcount continually

increasing; 800+ people over 5 years

Positive AUS flows every year, totaling

$158B since 2005

Expense management discipline:

Front office headcount: 5% CAGR

Non-front office headcount: 2% CAGR

Credit losses in line with expected stresses

through the cycle

Pretax margin less volatile than competitors

Focus

Hiring and training

WaMu footprint

International HNW

Product innovation (especially for HNW)

318

328

378

452

102

137

142

124

129

50

55

403

2005

2006

2007

2008

2009

PB

PWM

JPMS

$636

$552

$545

$465

$420

Revenue ($ in billions)

1.7

1.7

2.6

2.6

1.0

1.2

1.3

1.4

1.3

0.2

0.4

2.4

2005

2006

2007

2008

2009

PB

PWM

JPMS

$4.3

$4.2

$3.7

$2.9

$2.7

7

37

73

89

201

238

311

469

440

151

144

238

311

400

613

591

2005

2006

2007

2008

2009

International

United States

Largest global money fund manager

Largest money fund globally

(prime money market fund $168B)

Regulatory

changes

-

SEC

money

market

regulations (business as usual)

Focus

Managing expected outflows

Watching potential areas of concern

–

Floating NAVs

–

Capital against funds

–

Low rate environment/fee

compression

Develop local onshore products for

emerging markets

Liquidity

Extending our leadership position…

Highlights

Global Cash Year-End AUM ($ in billions)

8

International expansion: Brazil case study

Investment Management

Institutional/Retail Distribution

Add local manufacturing of

alpha

Across all asset classes

Expand to HNW clients

Expand local presence

Expand local distribution

Retail through local

partners

Third-party wealth

management providers

Pension market

UHNW focused

PB only

4 offices

Sizeable UHNW business

Small local presence (mostly Sao Paulo)

All client segments

PB, IM, Retail, Institutional

7 offices

9

Private Banking

Private Banking

Current

Future

Manage alpha mostly from NY/London

Locally manage $1.5B in AUM

Investment Management

International expansion: Asia

Japan

(since 1971)

#1 largest foreign asset management firm

Major distributor of hybrid products into Japan

But…local Japanese equities has to improve performance

#3 largest foreign JV asset management firm

#1 AAA-rated money fund provider

But…a long way to #1

China

(since 2004)

#1 largest foreign asset management firm

#1 internet seller of mutual funds

But…only $11B in AUM, room to grow

Taiwan

(since 1985)

#3 international equity retail flows

But…ranked #31 in total AUM

Korea

(since 2006)

10

Competitive comparison and global standing

External recognition

Global

#1

global

money

market

fund

manager

(iMoneyNet)

#2 US-based global hedge fund manager

(Absolute Return)

#1

global

provider

for

UHNW

clients

(Euromoney)

United States

#4

mutual

fund

family

(Barron’s)

Europe

“Gold Standard Award for Funds Management”

(Incisive media (UK)); (Only firm ever to win seven Gold

Standard awards)

Asia

“Asset Management Company of the Year”

(The Asset)

“Best overall performing foreign asset manager

operating in China”

(PriceWaterhouseCoopers survey)

#1

Private

Bank

in

Asia

(Asia Risk Magazine)

2009 Pretax income growth

Note: Competitors include AllianceBernstein, BlackRock, BNY Mellon, Credit Suisse, Goldman Sachs AM, Legg Mason, Northern Trust, UBS

2009 Assets under management ($ in billions)

627

682

871

1,115

1,177

1,249

2,157

496

JPM

3,346

2009 Net flows ($ in billions)

(74)

(115)

28

33

(55)

(138)

(3)

JPM

NA

156

Competitors

Competitors

Competitors

11

(10%)

(25%)

(28%)

(36%)

(43%)

(70%)

JPM

NA

NA

5%

Asset Management greatly benefits from the power of the JPM network

12

Card

Services

Retail

Financial

Services

Commercial

Banking

Investment

Bank

Treasury &

Securities

Services

Banking services

Fund management

Client referrals

Aircraft leasing

Fund management

Fund management

Structured products

Brokerage

Fund management

Client referrals

Fund accounting

Transfer agency

Custody

Securities lending

Credit cards

Blank slide

Conclusion

Institutional

leadership

Ultra-high-net-worth

leadership

US

leadership

Retail

success

High-net-worth

success

International

presence

Use knowledge and edge from

institutional success to drive…

Utilize client insight and product

knowledge to enable…

Capitalize on global brand to build a

stronger…

Investment

performance

Alternative/Hybrid

growth

Continue strong traditional performance

and drive innovation in…

13

Increase scale of products and distribution, 

capitalizing on investments made in this highly leverageable business

February 25, 2010

C

O

M

M

E

R

C

I

A

L

B

A

N

K

I

N

G

Todd Maclin, Commercial Banking Chief Executive Officer

Agenda

Page

1

State of the business

1

Credit environment

11

Growth opportunities

16

Appendix

22

Consistency of earnings through positive operating leverage

Revenue by product vs. expense growth ($ in millions)

Note: Expense excludes provision

1,215

1,344

1,419

1,743

2,663

2,062

2,243

2,350

2,648

2,642

213

334

386

415

1,856

1,979

1,958

1,946

2,176

1,632

1,821

2,145

2,831

3,544

211

Lending revenue

Treasury Services revenue

IB revenue/other

Expense

Operating margin

2005

2006

2007

2008

2009

EXPENSE CAGR = 3%

62%

59%

52%

48%

47%

Operating margin

2

Key performance metrics

Lending vs. non-lending revenue sources (FY 2009)

ROE trend with target metrics

Overhead ratio trend

with target metrics

16%

20%

17%

18%

10%

20%

30%

2006

2007

2008

2009

48%

38%

41%

52%

53%

30%

35%

40%

45%

50%

55%

2005

2006

2007

2008

2009

Target: 20% +/-

Target: < 40%

21%

Excluding

WaMu

Investment Bank

7%

Lending

47%

heritage JPM

62%

heritage

WaMu

38%

Treasury Services

46%

3

Profile of a Chase Commercial Banking client

Total CB relationships = 55,000

25,000 Middle Market, Mid-Corporate, and Real Estate Banking clients

30,000 Commercial Term Lending relationships

Average

relationship

tenor

1

=

18

years

+

In

2009,

1,700

new

relationships

and

over

7,600

expanded

relationships

1

Average

products

used

per

relationship

1

=

7+

Highlights

Client ROE increases with level of cross-sell across product categories2

(%)

Lending

Lending + TS

Lending + TS + IB

7-10%

18-20%

24-26%

1

Metrics do not include Commercial Term Lending Business

2

Client ROE ranges represent average through-the-cycle returns on broad product groupings

4

Cross-LOB impact of Commercial Banking clients

Over 25mm transactions at Retail

branches by CB clients

Over

$650mm

in loan commitment

referrals from Business Banking

Note: All metrics reflect 2009 performance

1

Commercial Card revenue captured in overall Treasury Services

Commercial Banking

Clients

Over $150mm

in Commercial

Card

and

Paymentech

revenue

1

$1,163mm

gross IB revenue

820

CB clients used IB products

for first time

Over $275mm

in Private Banking

and Investment Management

revenue

CB

clients

generate

$2,642

mm

in

deposit and TS product revenue

80%

client penetration

Treasury Services

Retail

Card

Investment Bank

Asset Management

5

Conservative client selection and portfolio diversification = moderate credit risk

452

391

73

160

279

464

1,454

1,362

1,340

951

1,271

1,010

1,134

1,439

2005

2006

2007

2008

2009

2008

2009

Credit Costs

Net Income

0.93%

0.40%

Net charge-off ratio

1.02%

0.35%

0.07%

0.05%

0.05%

Including WaMu

Excluding WaMu

Credit costs vs. net income ($ in millions)

6

Middle

Market

Banking

46%

Real Estate

Banking

7%

Commercial

Term

Lending

19%

Community

Development

2%

Other

2%

Mid-Corporate Banking

24%

Real Estate

30%

Retail

9%

Consumer

5%

Oil & Gas

4%

State & Muni

5%

Utilities

4%

Business

Service

4%

Other

29%

Healthcare

10%

Dynamic portfolio management produces credit diversity and granularity, minimizing risk

of earnings volatility

Exposure by industry (4Q09)

Total Exposure: $186.1B

Outstandings by loan size (4Q09)

Total Loans: $97.4B

Total Exposure: $186.1B

$20mm & Over

16%

$10mm-$20mm

15%

$5mm-$10mm

17%

$3mm-$5mm

13%

$1mm-$3mm

24%

Under $1mm

15%

Exposure by business (4Q09)

7

1.02%

1.88%

Chase CB

Peer Median

Total CB NCO ratio

2009 Performance against peers confirms our strategic differences in client portfolio and

risk tolerance

2.87%

4.13%

Chase CB

Peer Median

Total CB NPL ratio

0.70%

1.65%

Chase CB

Peer Median

C&I NCO ratio

1.36%

2.60%

Chase CB

Peer Median

CRE NCO ratio

1.01%

2.75%

Chase CB

Peer Median

Note: Metrics calculated based on FY 2009 performance, NCO ratios based on average loan balances, NPL ratios based on ending loan balances

Peer group includes: BAC, COF, CMA, FITB, KEY, PNC, STI, USB, WFC, ZION

CRE

defined

as

Real

Estate

Banking,

Commercial

Term

Lending,

and

Community

Development.

C&I

defined

as

Middle

Market,

Mid-Corporate,

and

all

other

Commercial

Banking

businesses

C&I NPL ratio

4.67%

7.31%

Chase CB

Peer Median

CRE NPL ratio

8

2.59%

2.30%

2.45%

2.65%

2.87%

3.01%

3.12%

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Reserve policy supports our “through-the-cycle”

mentality

Loan loss reserve ratio (to average

total loans)

9

Expense discipline and earnings-driven compensation

Compensation expense vs. non-compensation expense ($ in millions)

654

740

706

692

1,239

1,252

1,254

1,400

776

1,202

21.9%

40.6%

32.9%

24.4%

40.1%

13.6%

14.5%

17.2%

19.5%

18.8%

$0

$500

$1,000

$1,500

$2,000

$2,500

2005

2006

2007

2008

2009

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Comp expense

Non-comp expense

Comp % of operating margin

Comp % of revenue

10

Agenda

Page

11

Credit environment

11

State of the business

1

Growth opportunities

16

Appendix

22

1.50%

1.60%

1.70%

1.80%

1.90%

2.00%

2.10%

2.20%

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Pricing improvement has offset weakened loan demand

Loan spread on total CB loan balances

Loan volume decline ($ in billions)

Pricing up 40% since 3Q08

Note: Chase loan balances are end-of-period; Source:  Federal Reserve 

102

106

111

115

97

1,618

1,343

1,414

1,499

1,564

1,300

1,400

1,500

1,600

1,700

4Q08

1Q09

2Q09

3Q09

4Q09

90

95

100

105

110

115

120

Industry C&I loans

CB loans

12

2009 credit costs driven by commercial real estate

Mid

Corporate

5%

Middle Market

28%

Com Dev

2%

CTL

31%

Real Estate

31%

Other

3%

2009 CB NCO by business

Total = $1.1B

64% of NCOs

from CRE

portfolios

2009 CTL NCO ratio by region

Note: NCO ratios based on average loan balances

0.06%

0.18%

0.86%

1.36%

0.07%

1.02%

0.05%

0.06%

0.70%

0.35%

0.05%

0.19%

2006

2007

2008

2009

CRE

Total CB

C & I

50bps through-

the-cycle loss rate

NCO ratio trend

0.56%

1.21%

1.52%

0.11%

22.41%

Southern California

Northern California and Pacific Northwest

East

Florida

Central

$15,446

$10,401

$7,082

$584

$2,600

End-of-period loan balances

39% of losses

from Florida

13

Chase commercial real estate exposure

Highlights

Commercial Term Lending (64% of CRE)

Stable, seasoned multi-family concentration

Fully

underwritten,

“cash

flow”

lending

Supply-constrained markets / renters by necessity

2009 charge-off rate: 0.91%

0.57% without Florida

Real Estate Banking (22% of CRE)

Institutional grade Real Estate investors and developers

2009 charge-off rate: 2.87%

Community Development (7% of CRE)

Low-to-moderate

income

-

housing

and

community

redevelopment

2009 charge-off rate: 0.80%

Middle Market/Mid-Corporate (7% of CRE)

Investment real estate tied to commercial relationships

2009 charge-off rate: minimal

2009 end-of-period

balances ($ in billions)

Loans

Exposure

Commercial Term Lending

$35.6

$35.6

For sale housing

0.7

1.2

Commercial constr/develop

9.7

11.4

Real Estate Banking

10.4

12.6

REB as of % of total CB exposure

11%

7%

Community Development Banking

2.3

3.8

Middle Market & Mid-Corporate

3.2

4.1

Total CRE exposure & loans

$51.5

$56.1

Percentage of total CB exposure

30%

14

1.00

1.20

1.40

1.60

1.80

2.00

Dec-

04

Jun-

05

Dec-

05

Jun-

06

Dec-

06

Jun-

07

Dec-

07

Jun-

08

Dec-

08

Jun-

09

Dec-

09

US commercial real estate industry outlook

National Commercial Property Price Index

Source: Moody’s/REAL Commercial Property Price Indices, December 2009

Industry outlook

Fundamentals not improving

Massive debt maturity problem; refinancing likely

requires equity/debt mark-downs

Diminished CRE bank lending appetite

Value disconnect between buyers and sellers

Banks and borrowers: Amend, Pretend, Extend

130

100

170

630

2008/2009

2010

2011

2012+

Source:

Real

Estate

Roundtable

submission

to

the

Joint

Economic

Committee

Hearing

on

the

Commercial Real Estate Industry

CRE debt maturities ($ in billions)

Source:

Real

Estate

Roundtable

submission

to

the

Joint

Economic

Committee

Hearing

on

the Commercial Real Estate Industry

Estimated CRE capital gap ($ in billions)

1.91

1.08

410

310

500

1,800

2008/2009

2010

2011

2012+

15

Agenda

Page

16

Growth opportunities

16

State of the business

1

Credit environment

11

Appendix

22

While strong prospecting efforts in mature markets continue, expansion markets provide

significant opportunity

Progress

121 dedicated full-time

resources have been hired /

relocated

Profitable in 2011

Opportunity

Over 9,300 identified Middle

Market prospects in key

markets

Fully capable of delivering

total JPM franchise to new

markets

15,500+ prospect calls

150+ conversions

7,800+ prospect calls

75+ conversions

10,400+ prospect calls

125+ conversions

Nationwide

Over 84,000 total prospect

calls, up 26% from 2008

Converted over 700 prospects

to clients nationwide

Business Development Group

Over 53,000 prospect calls,

up 68% from 2008

Added 6 full-time employees

to the BDG, a 40% increase

Converted over 80 prospects

totaling over $16mm in

closed revenue

Note: Rankings represent market share determined by Greenwich Associates 2009 Survey

In IL, TX, CA, and FL Chase is tied for the ranking with a competitor

# 1

# 1

# 1

# 5

# 5

# 8

Existing markets

Expansion markets

Prospecting efforts

17

Differentiated product capabilities continue to drive growth

Deposit balance growth ($ in millions)

Gross IB revenue growth ($ in millions)

552

716

888

966

1,163

2005

2006

2007

2008

2009

CAGR = 16%

66,055

73,613

87,726

103,121

113,152

2005

2006

2007

2008

2009

CAGR = 11%

Lending

Core

Cash

Mgmt

Investment

Banking

Treasury

Services

Products

Custody

&

Fiduciary

Retail &

Credit

Cards

Alternative

Financing

Int’l

TS

Asset

Management

Regional competitors

JPM product capabilities

18

International capabilities are a key differentiator

Growth in clients using international products

1,088

1,365

1,628

2,166

2006

2007

2008

2009

CAGR = 19%

International deposit growth ($ in millions)

958

1,581

2,834

4,553

5,906

2005

2006

2007

2008

2009

CAGR = 44%

CB clients have growing international banking requirements

Companies between $200mm-$1B in sales

65%

1

expect non-US revenue increase in 5 years

60%

1

plan to expand overseas in next 5 years

Weak and distracted competitors provide opportunity

Increase penetration with current client base

An estimated

6,000

clients have meaningful international operations

We only

do business overseas with one-third

Highlights

1

Results from 2009 KPMG Survey on Global Expansion

19

Healthy balance sheet positions us to invest opportunistically

Commercial Lending and

Treasury Services

Partner with top-tier investor clients to finance

distressed acquisitions

Conservative terms, L+400-500 pricing

Expansion of Deposit and TS business

Commercial Real Estate Council

Performing loan portfolio purchases from

undercapitalized/overextended banks

Utilize our workout resources on distressed

portfolio acquisitions

Opportunistic Investments

Firmwide Initiatives

Representative example for Commercial Real Estate opportunities

20

Excellent franchise well positioned for future growth

Great client franchise; low risk and stable earnings

Loyal, conservative, experienced business owners

Reliance on bank as primary capital provider/trusted advisor

High demand for JPM’s full suite of products

Non-lending revenue growth outpaces more RWA-dependent growth

Prolific referral targets for IB, TSS, Card, AM

Significant benefits and economies of scale

Risk management: portfolio granularity and distribution

Self-funding client base

Expense highly correlated to earnings

Positive operating leverage

Ongoing opportunities for growth

Expansion markets

Increasing market share

Opportunistic investing in recovery

21

Agenda

Page

22

Appendix

22

State of the business

1

Credit environment

11

Growth opportunities

16

Commercial Banking organizational overview

Middle Market Banking:

Commercial, municipal, community financial

institutions and not-for-profit clients; annual revenue generally between

$10mm and $500mm

Mid-Corporate Banking:

Clients with broader, international banking and

investment banking needs; annual revenue generally between $500mm

and $2B

Real

Estate

Banking:

Full

service

banking

to

investors

and

developers

of

institutional-grade real estate properties

Commercial Term Lending:

Term financing to real estate

investors/owners,

primarily

multifamily,

but

also

office,

retail

and

industrial

properties

Chase

Business

Credit:

Asset

Based

Lending

(ABL)

business

generally

secured

and

governed

by

the

borrower’s

accounts

receivable and inventory

Equipment Leasing:

Term financing for corporate and high-net-worth clients:  aircraft, machinery, and other equipment

Community

Development

Banking:

Community

development

finance

for

affordable

housing

and

economic

development

projects

Chase Capital Corp:

Mezzanine financing for commercial clients

2009 CB revenue = $5.7B

Commercial Term

Lending

15%

Mid-Corporate Banking

19%

Real Estate

Banking

8%

Middle Market Banking

54%

Other

4%

Customer segments

Product specialties

23

February 25, 2010

C

A

R

D

S

E

R

V

I

C

E

S

Gordon Smith, Card Services Chief Executive Officer

Executive summary

The majority of our business segments have remained profitable through the cycle

Specific strategies are in place to improve the unprofitable business segments

We are seeing early signs that credit trends are improving across all stages of

delinquency

Implementation of the majority of provisions in the CARD Act is complete

Consumer spending is recovering slowly across all income segments, most industry

categories and geographies

The strategic priorities outlined in 2008 are in market, positioning us for growth in a post-

CARD Act environment

Our ROE target is 20% +/-

1

Source: Internal Chase data which excludes WaMu, loan loss reserve actions, intra company revenue sharing, intangible amortization, deferral of loan fees (FAS 91) and

securitization income

1 

Paymentech ROE represents return on tangible equity

4 of our 6 business segments remained profitable through the cycle and those

business segments have also shown strong historical performance

Affluent and HNW

Partners

(co-brand & retail)

Paymentech

1

Profitable in 2009

% of OS

2006

2007

2008

2009

Small Business

Mass Affluent

rewards-engaged

Mass Affluent

Mass

Affluent

Total engaged:

66%

100%

Card Services totals:

20% ROE

< 0% ROE

< 20% ROE

34%

X

X

2

Unengaged /

underperforming

Engaged

Unengaged /

underperforming

Engaged

In 2009, the rewards-engaged customers outperformed across all key metrics

Source: Internal Chase data which excludes WaMu

Sales/statement —

2009

Balance/statement —

2009

Net charge-off rate —

2009

Unengaged /

underperforming

Engaged

1.9x

higher

3

46% lower

240bps lower

Through the cycle, we expect returns on the rewards engaged business to return close to

historical levels, which exceed our ROE targets

We have focused on retooling the underperforming businesses:

Small business:

–

Invest in unique tools, strategies and infrastructure

–

Launch new products (Ink)

–

Deploy new customer engagement strategies

Mass Affluent non-rewards and unengaged customer strategies

–

Implement segment specific risk management strategies

–

Utilize Blueprint to increase overall customer engagement

–

Incorporate income and debt levels into portfolio analytics

Strategies are in place to drive improved performance in the underperforming

businesses

4

$0

$40

$80

$120

$160

4Q08

1Q09

2Q09

3Q09

4Q09

6%

7%

8%

9%

10%

Outstandings attrition has come largely from low margin loans

Source: Internal Chase data

1 

Data excludes WaMu

(11)% YoY change

($18B)

Year/year

outstandings

decline

(5% +/-

APR)

$2B

(15% +/-

APR )

($12B)

(<1% APR)

($8B)

Intro

Promo

Contract rate

Components of YoY outstandings decline

Net Interest Margin

Outstandings

5

Outstandings

($

in

billions)

1

and

net

interest

margin

(%)

Historically, a large portion of proceeds from cash-out refinancing and home equity

loans were used for personal consumption and to repay non-mortgage debt

Source: 2007 Federal Reserve publication “Sources and Uses of Equity Extracted from Homes”

1 

Home equity loans include both closed-end home equity loans and home equity lines of credit

>75%

Estimated uses of cash-out refinancing

Estimated

uses

of

home

equity

loans

1

6

100%

27%

17%

34%

22%

0%

20%

40%

60%

80%

100%

Total

Repayment of non-

mortgage debt

Personal

consumption

Home

improvement

Real estate and

financial assets

100%

26%

29%

31%

14%

0%

20%

40%

60%

80%

100%

Total

Repayment of

non-mortgage

debt

Personal

consumption

Home

improvement

Real estate,

Business

expense

and other

>85%

Agenda

Page

7

Credit environment

7

Regulatory update

22

Key consumer spending trends

25

Strategy —

Progress to date

34

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

1Q03

4Q03

3Q04

2Q05

1Q06

4Q06

3Q07

2Q08

1Q09

4Q09

Net charge-off rate

30+ days delinquency rate

As initial jobless claims and housing prices stabilize, credit losses show signs of

improvement

Source:

S&P

for

Case-Shiller

index

data;

Bureau

of

Labor

Statistics

Source: Chase earnings releases; SEC filings (excluding WaMu)

Note: Data includes the timing benefit of the payment holiday (approximately 60bps for net

charge-off rate and 20bps for 30+ days delinquency)

120

130

140

150

160

170

180

190

200

210

220

1Q03

4Q03

3Q04

2Q05

1Q06

4Q06

3Q07

2Q08

1Q09

4Q09

1.2

1.4

1.6

1.8

2

2.2

2.4

2.6

2.8

Case-Shiller 20 city composite housing price index

Initial jobless claims [monthly]

Initial

jobless

claims

and

Case-Shiller

housing

price

index

Card Services net charge-off rate, 30+ days delinquency rate

8

Credit losses have continued to stay at the lower end of the competitive range

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

4Q04

4Q05

4Q06

4Q07

4Q08

4Q09

Chase

C

AXP

BAC

COF

DFS

Source: Earnings releases; SEC filings

Note: Internal Chase data which excludes WaMu and includes the timing benefit of the payment holiday of approximately 60bps in 4Q09

Net charge-off rate

9

Jan-08

May-08

Sep-08

Jan-09

May-09

Sep-09

Jan-10

Jan-08

May-08

Sep-08

Jan-09

May-09

Sep-09

Jan-10

Roll-rate improvements are being observed in early delinquency buckets

Source: Internal Chase data which excludes WaMu and the impact of the payment holiday

Jan-08

May-08

Sep-08

Jan-09

May-09

Sep-09

Jan-10

Jan-08

May-08

Sep-08

Jan-09

May-09

Sep-09

Jan-10

Delinquency $ roll-rate from current to bucket 2 (31-60 Dpd)

Delinquency $ roll-rate from current to bucket 1 (1-30 Dpd)

Delinquency $ roll-rate from bucket 2 to bucket 3 (61-90 Dpd)

Delinquency $ roll-rate from bucket 1 to bucket 2 (31-60 Dpd)

10

We continue to maintain strong portfolio quality vs. our competitors

1 

Chase data as of Nov-09; represents Chase Issuance Trust

2 

AXP FICO>720 is based off disclosure in Fixed Income Investor Presentation

Source: SEC Filings (BAC –

Dec-09, COF –

Mar-09, DFS –

Dec-09, AXP –

Jul-09, C –

Sept-09, Chase –

Nov-09)

17.8%

20.2%

25.1%

28.2%

28.2%

29.3%

AXP

Chase

BAC

C

DFS

COF

56.0%

55.0%

44.1%

42.7%

42.0%

38.8%

Chase¹

AXP

BAC

COF

DFS

C

Trust receivables —

FICO<660 or no FICO score

Trust receivables —

FICO>720

1

2

11

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Jan-10

Card Services bankruptcy filings have stabilized with improvement observed in January

Source: Administrative office of the US Courts; Internal Chase data which

excludes WaMu

Card Services average monthly bankruptcy filings (units)

12

Our credit strategies are focused on a few key drivers

Continue to leverage retail and partner customer data to inform our risk management

practices

Increase engagement of customers across all segments to help drive superior

performance

Use

of

overall

customer

balance

sheet

to

augment

our

proprietary

risk

scores

Debt-to-income measures

Overall changes in debt and exposure levels

Loan-to-value/mortgage data overlays

Dynamic management of credit lines

13

Chase relationship data provides powerful additional insight into credit risk

Source: Internal Chase data

Note: Data shown represents year 2 charge-off rate of a representative acquisition vintage

No current Chase

relationship

Card Services only

Retail Financial Services

only

Card Services and Retail

Financial Services

Chase relationship at origination

260bps lower

Card Services net charge-off rate (year 2 rate)

14

0.00%

1.00%

2.00%

3.00%

4.00%

701-720

721-740

741-760

761-780

780+

FICO scores

No partner relationship

Partner relationship

Moderate/low

engagement

High engagement

The addition of partner data also provides improved risk prediction

Source: Internal Chase data

Note: Data shown represents 2009 performance for the partner business segments only

Customers who are engaged with a partner exhibit better risk performance

Average 2.0x

lower across all

FICO bands

Partner relationship —

net charge-off unit rate

Depth of partner relationship —

net charge-off unit rate

15

A continued focus on rewards has helped drive a positive risk selection

Rewards represented 60% of outstandings at the end of 2009

Source: Internal Chase data which excludes WaMu

1 

Excludes Retail Partner general purpose credit cards

36%

40%

47%

54%

56%

60%

64%

60%

53%

46%

44%

40%

2004

2005

2006

2007

2008

2009

General Purpose Credit Cards - rewards

General Purpose Credit Cards - nonrewards

Rewards as % of end-of-period outstandings1

16

Loss

rates

have

been

highly

correlated

to

a

customers’

external

card

debt

Card Services portfolio is skewed to lower debt customers

Source: Internal Chase data

Note: 2008 unit loss rates based on Dec-08 performance of a representative Dec-07 vintage;

2009 unit loss rates based on Dec-09 performance of a representative Dec-08 vintage

2%

3%

4%

5%

7%

3%

3%

5%

7%

9%

13%

5%

<$5K

$5-$10K

$10-$20K

$20-$30K

$30K+

Total

2008

2009

Average net charge-off unit rate by external card debt

17

No credit line decrease

Credit line decrease

No credit line decrease

Credit line decrease

No credit line decrease

Credit line decrease

Over the past 2 years we have reduced portfolio exposure to customers with high debt

Source: Internal Chase data

Note: Data shown for active accounts only and based on 4Q09 performance and is representative of FY2009 performance

1 

Total debt represents total customer debt (including mortgage)

Credit line decreases and account closures were targeted to customers with high debt-to-income

60%

higher

>3x

higher

>2x

higher

Total debt1

BankCard

debt/income

External card utilization

18

We are focused on a core universe of lower risk and lower debt populations

for new acquisitions

2007

2008

2009

200bps

lower

Source: Chase internal data; Direct mail universe

2007

2008

2009

15%

higher

2007

2008

2009

23 pts

higher

Average BankCard

debt/income –

acquisitions

Average FICO –

acquisitions

Average income –

acquisitions

19

Our credit eligible

prospect universe has decreased by approximately 15%

Source:

Chase

internal

data;

Direct

mail

and

preapproved

universe

1 

Credit eligible population defined as those prospects that meet Card Services credit criteria

Applying behavioral trends related to debt levels, debt-to-income ratio, bankcard utilization and

inquiry levels will reduce the eligible prospect population

BankCard debt

2x higher

BankCard utilization (%)

4x higher

Income

30% lower

Total debt to income

> 50% higher

Profile of eliminated universe (vs. remaining)

Remaining eligible

universe

85%

Eliminated

universe

15%

20

1

We have risk management strategies in place to drive improved performance

As new unemployment claims and housing prices stabilize, credit losses have shown

signs of improvement

Roll-rate improvements are being observed across all early delinquency buckets

We believe continued improvement will be dependent on the following:

–

Absolute level of employment

–

New unemployment claims

–

Home value stability

Our credit losses have continued to remain at the lower end of the competitive range

We continue to maintain strong portfolio quality vs. our competitors

Credit environment summary

21

Agenda

Page

22

Regulatory update

22

Credit environment

7

Key consumer spending trends

25

Strategy —

Progress to date

34

A number of key CARD Act regulations have taken effect in February 2010

Effective

Effective

Effective

August 20, 2009

February 22, 2010

August 22, 2010

Regulations¹

Regulations

Advance notice of

Change in Terms

Time to make payments

45-day Overlimit

Fee

suppression with line

decreases

Reasonable and

Proportional Fees

6-month Review of

Repricing Actions

1 

Major provisions only; not an exhaustive list

Status

Status

Status

COMPLETE

COMPLETE

DEVELOPMENT

Payment Processing and

Allocation

Statement formats and

disclosures

Same day each month payment

due dates

Repricing restrictions and cure

provisions

Opt-in for Overlimit

Fees

“Pay to Pay”

fee restrictions

“Ability to Pay”

assessment

Protections for Young

Consumers and Students

Regulations

23

Card Services has adapted a number of business practices in response to the

new regulations

Pricing restrictions

Payment allocation

Time to make payments

Payment processing

Fee restrictions

Pricing review

General

Easy, consumer-oriented products, features,

communications, and disclosures

Selective pricing changes

Acquisitions

Shortened introductory APR duration

Increased Goto

APR

Refinements to offer targeting

Balance Build

Elimination of life-of-loan offers

Shorter duration promotional offers

Reduced balance transfer volumes

Net income impact: $500-750mm¹

after tax

1 

Reasonable fees and pricing review impacts not included

Primary CARD Act provisions

Chase response

24

Agenda

Page

25

Key consumer spending trends

25

Credit environment

7

Regulatory update

22

Strategy —

Progress to date

34

Since 3Q09, we have seen a strengthening in consumer sales

Source: Conference Board, internal Chase data which excludes WaMu

1 

Sales data excludes cash advances and balance transfers

The Conference Board Consumer Confidence Index

Card Services sales change YoY

Consumer Confidence Index vs. sales volumes¹

26

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

Jan-

08

Feb-

08

Mar-

08

Apr-

08

May-

08

Jun-

08

Jul-

08

Aug-

08

Sep-

08

Oct-

08

Nov-

08

Dec-

08

Jan-

09

Feb-

09

Mar-

09

Apr-

09

May-

09

Jun-

09

Jul-

09

Aug-

09

Sep-

09

Oct-

09

Nov-

09

Dec-

09

Jan-

10

0

10

20

30

40

50

60

70

80

90

100

We have seen strengthening in sales across our affluent customers

Source: Internal Chase data which excludes WaMu

(1.0)%

(1.7)%

(4.5)%

(4.7)%

(3.5)%

(3.8)%

0.8%

3.3%

4.8%

(6.0)%

(4.0)%

(2.0)%

0.0%

2.0%

4.0%

6.0%

<$75K

$75-$125K

>$125K

4Q08

3Q09

4Q09

Sales growth YoY —

household income (annual)

27

(3.1)%

0.4%

(8.4)%

(6.8)%

2.5%

(3.4)%

(1.0)%

7.7%

0.0%

(10.0)%

(8.0)%

(6.0)%

(4.0)%

(2.0)%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

>200%

50-200%

<50%

4Q08

3Q09

4Q09

We have also seen a strengthening in sales across our low indebted customers

Source: Internal Chase data which excludes WaMu

Note: Debt represents total customer debt (including mortgage)

Sales growth YoY –

debt-to-income ratio

28

Sales growth is stronger in states where home prices depreciated

least

Source: Internal Chase data which excludes WaMu

States with high levels of housing price stress

(9.4)%

(6.8)%

(2.2)%

(8.2)%

(8.7)%

(4.2)%

(4.8)%

1.3%

1.4%

(1.6)%

1.0%

2.8%

(9.3)%

(4.8)%

(6.8)%

(12.0)%

(10.0)%

(8.0)%

(6.0)%

(4.0)%

(2.0)%

0.0%

2.0%

4.0%

CA

FL

NV

AZ

All others

4Q08

3Q09

4Q09

Faster rebound in

states less subject

to housing price

stress

Sales growth YoY —

state

29

(20.0)%

(15.0)%

(10.0)%

(5.0)%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Jan-10

Discretionary

Non-discretionary (excl oil)

Non-discretionary

Sales have strengthened across discretionary and non-discretionary categories

1 

Non-Discretionary includes supermarkets, wholesale clubs, discount stores, pharmacies and gas (except where noted) 

Source: Internal Chase data which excludes WaMu

Sales growth YoY —

discretionary  vs. non discretionary1

30

Positive momentum in sales towards the end of 2009 and extending

to early 2010

Source:  Internal Chase data which excludes WaMu

(12)%

(12)%

(11)%

(10)%

(10)%

(8)%

(6)%

(5)%

(2)%

(2)%

(1)%

1%

2%

2%

Home Furnishing

Furniture

Travel Agencies

Hotel/Motel

Department Stores

Airlines

Car Rental

Specialty Retail Stores

Restaurants

Sporting Goods

Computers

Telecommunication Serv.

Automotive Parts

Supermarkets

(1)%

3%

10%

1%

(4)%

10%

3%

1%

4%

(1)%

8%

(0)%

5%

2%

Sales growth YoY

2009 vs. 2008

Nov-08 to Jan-09 vs. Nov-09 to Jan-10

31

(10.0)%

(13.4)%

(5.7)%

(10.1)%

(7.6)%

(7.9)%

(7.7)%

(7.0)%

(5.3)%

(0.9)%

1.1%

5.2%

(15.0)%

(10.0)%

(5.0)%

0.0%

5.0%

10.0%

<$20K

$20-$30K

$30-$80K

>$80k

4Q08

3Q09

4Q09

Customers with larger wallet sizes have exhibited a greater rebound in sales within select

spending categories

Source: Internal Chase data which excludes WaMu

1

Wallet

size

is

defined

as

a

cardmembers

total

credit

card

spend

Sales growth YoY —

wallet size1: department stores

32

(4.6)%

(5.2)%

(9.2)%

(11.2)%

(14.6)%

(14.7)%

Chase

DFS

COF

AXP

U.S.

Card

BAC

C

116

23

(27)

(48)

(122)

(154)

Chase

DFS

COF

AXP

U.S.

Card

C

BAC

Source: Earnings releases; Internal Chase data

1 

Chase sales data excludes WaMu, cash advances, BT’s and private label

2 

DFS sales data excludes cash advances

3 

BAC includes U.S. and International Consumer, excludes Small Business

4 

C includes C Branded and excludes non-core Retail Partner portfolios

Throughout the downturn Chase continued to gain sales volume market share

2009 YoY change in sales volume

1

2

3

4

2009 GPCC sales volume market share

16.5%

5.2%

5.6%

20.3%

10.0%

12.5%

Change in general purpose credit card (GPCC) sales

volume market share (bps) —

2007 vs. 2009

33

Agenda

Page

34

Strategy —

Progress to date

34

Credit environment

7

Regulatory update

22

Key consumer spending trends

25

Create lifelong, engaged relationships

with our customers by being a trusted provider of financial services

Vision

Build a strong proprietary

brand

Launch customer-focused,

flagship proprietary products

Focus on partnerships that

enhance and extend brand

Leverage branch distribution

Ensure consistency across

all channels

Rationalize existing

rewards

products

Develop proprietary rewards

platform

Develop targeted offers for

each customer segment

Make redemption easy and

intuitive

Engage the customer early

in the lifecycle

Leverage every interaction

to enhance the relationship

Create a superior online

experience

Improve customer service

Brand

Rewards

Customer experience

We continue to stay focused on our core vision, despite a challenging business

environment

35

In 2009, we delivered on a number of key features outlined in our overall

strategy

2008 -

Strategy

2009 –

Launch/Integrate

2010 -

Execution

Brand, value proposition:

Focus on building Chase brand

Launch new products and features

Rationalize the partner business

Renew focus on overall customer

experience to drive engagement

Assets and capabilities:

Enhanced risk management tools

Leverage enterprise relationship

Customer-segment focused

Focused on debt-to-income ratio

and mortgage data

WaMu branch network integration

Establish overall Card

Services strategy

Complete business

reorganization

New products

Establish brand/positioning

Grow engaged customer base

Establish Ultimate Rewards as a

core relationship tool

Scale adoption of Blueprint

Complete partner portfolio

rationalization

Continue to invest in building our

small business presence

36

2007

2009

Over the past 2 years, Card Services has shown strong brand growth

Source:

Proprietary

Chase

Brand

Health

Tracking

Online

Survey

of

400

US

adult

consumers

per

month

(2007

–

2009)

1,800 bps

higher

2007

2009

600 bps

higher

Unaided brand awareness

Consideration

37

We continue to invest in partners that have strong overall brands which

align with Chase

New partner —

Hyatt

Global hospitality company with more than 415 worldwide

properties

World-class brand

Strong, growing loyalty program

Travel partners

Hotel partners

Other partners

Canada

38

Total 2009 partner

2009 w/ partner

terminations

Total 2009 partner

2009 w/ partner

terminations

We have made significant progress in rationalizing our existing partner portfolio

12/31/2008

12/31/2009

Total 2009 partner

2009 w/ partner

terminations

Source: Internal Chase data as of Dec-09

207

118

43% lower

2%

lower

1%

lower

Average outstandings

Gross sales

ROE

Number of partners

70bps

higher

39

We have streamlined our proprietary product portfolio

Legacy Chase

The new Chase

5 primary product brands

100+

Chase-

branded

programs

40

Our branch presence and strong co-brand partnerships provide superior access to the

affluent market

Source: Internal Chase data

Note: Hotel partner presence based on hotel locations; airline concentration based on location of airline hubs

Chase strategic advantage

1,019 branches

340 branches

162 branches

416 branches

221 branches

257 branches

93 branches

56 branches

144 branches

40 branches

190 branches

78 branches

Retail branches

Partner concentration/coverage

12%

7%

6%

5%

5%

4%

3%

3%

3%

3%

2%

2%

2%

2%

2%

New York

Los Angeles

CA bay area

Chicago

Washington DC

Boston

Philadelphia

Houston

Dallas/Ft. Worth

Miami

Atlanta

Seattle

Tampa

Detroit

San Diego

Top15 affluent DMA’s –

60% of affluent population

41

Overall satisfaction

Willingness to recommend

Early results from Sapphire show strong customer satisfaction scores

Source: Internal Chase data

Note: Satisfaction scores based on Chase proprietary customer survey as of Dec-09

2009 customer satisfaction scores –

Chase Sapphire

>90%

>85%

42

Early results from Ink Bold show an ability to generate strong engagement

Chase business card

rewards

Ink Bold

>2x

higher

Chase business card

rewards

Ink Bold

>3x

higher

Source: Internal Chase data as of Dec-09

Average transaction size

Average sales/statement

43

Blueprint

was

launched,

providing

customers

with

a

unique

set

of

features

that

enable them to better manage their finances

Design your plan and see progress on every statement

Avoid paying

interest

Pay off larger

purchases

Pay down your

balance faster

See your spending

trends at a glance

44

Blueprint has been well-received

“Something New: A Credit Card

on Consumers’

Side”

Kathy Chu | Sep. 15, 2009

“Most Innovative New Program for 2009”

Editor’s Choice Award | Jan. 12, 2010

“Chase’s new credit card

tool can actually help

you save money”

Best of 2009 | Dec. 2009

# 10: Way to Play it Smart

Under the CARD Act

Jan. 17, 2010

“I truly think it’s revolutionary.”

Leading  National Consumer Advocacy Leader

“Chase Blueprint brings new transparency

and consumer control to credit cards.”

Bryan Derman

| Sep. 15, 2009

45

Customers

using

Blueprint

have

shown

early

signs

of

strong

spend

engagement

Source: Internal Chase data as of Dec-09

3 months prior to enrollment

3 months after enrollment

~ 10%

higher

Average sales lift post-enrollment

46

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Full Pay enrolled

No Full Pay enrollment

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Full Pay enrolled

No Full Pay enrollment

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Full Pay enrolled

No Full Pay enrollment

Full Pay is showing early indications that it is a tool that enables incremental

spend capture

~30% were not spending in category before

enrollment

Source: Internal Chase data as of Dec-09

20% were not spending in category before

enrollment

Full Pay

enrollment 

available

Lift in sales –

Full Pay

Lift in sales –

Gas & convenience category

Lift in sales –

Grocery store category

47

Ultimate Rewards was launched in May 2009

48

2

5

>20

<1

Jun-09

Sept-09

Dec-09

Dec-10

In 2010, Chase debit cards will be added to Ultimate Rewards giving customers

greater earning power

Source: Internal Chase data

Note: Data based on open accounts

Projected Ultimate Rewards accounts (millions)

49

We have created targeted engagement strategies across the customer

lifecycle to reinforce product value, drive usage and build the Chase brand

New

customers

Deliver early, frequent, relevant

contacts at start of relationship

Engaged

customers

Low

engaged,

high

potential

customers

Drive higher

customer

engagement

Reinforce rewards, benefits and

provide superior service

Increase wallet share through relevant

offers and competitive discussions

50

To

build

stronger

relationships

with

new

customers,

we

have

designed

an

end-to-end

engagement

strategy

utilizing

multiple

touchpoints

during

the

first

90

days

After 90 days

First 90 days

Source: Internal Chase data

1 

Sales/month data for 1Q08 vintage as of 4Q09

>80%

higher

Early

engagement

strategy

New customer touchpoints

(first 90 days)

Sales/month based on account activation1

51

2008

2009

2008

2009

We continue to drive down operating expense

1 

Headcount includes contractors

2 

2008 data represents 4Q08 annualized numbers to normalize for WaMu acquisition and consolidation of Paymentech

Source: Internal Chase data

2

Reduction of ~3,000

16% lower

$500mm

value

Headcount1

Operating expense as a % of average outstandings –

indexed to 2008

52

Key overall business strategy messages

Continued to invest in the business throughout the downturn

Made significant progress towards building a stronger Chase proprietary brand

Launched a number of key products and features in 2009, early results are encouraging

Continuing to rationalize our existing partnership portfolio

Focused on providing a superior customer experience

2010 focus will be on execution against our key product launches

53

Executive summary

The majority of our business segments have remained profitable through the cycle

Specific strategies are in place to improve the unprofitable business segments

We are seeing early signs that credit trends are improving across all stages of

delinquency

Implementation of the majority of provisions in the CARD Act is complete

Consumer spending is recovering slowly across all income segments, most industry

categories and geographies

The strategic priorities outlined in 2008 are in market, positioning us for growth in a post-

CARD Act environment

Our ROE target is 20% +/-

54

In spite of credit and regulatory challenges, repositioning of Card business has potential to

achieve a 20% +/-

return on equity

Source: Internal Chase data which excludes WaMu, loan loss reserve actions, intra company revenue sharing, intangible amortization, deferral of loan fees (FAS 91) and securitization

income

1 

Paymentech ROE represents return on tangible equity

Affluent & HNW

Partners

(co-brand & retail)

Paymentech

2006

2007

2008

2009

Small Business

Mass Affluent

rewards engaged

Mass Affluent

=

20% ROE

< 0% ROE

< 20% ROE

Steady State

Total engaged:

TOTAL Card Services :

55

1

February 25, 2010

R

E

T

A

I

L

F

I

N

A

N

C

I

A

L

S

E

R

V

I

C

E

S

Charlie Scharf, Retail Financial Services Chief Executive Officer

2005

2009

Retail Financial Services

Net income

$3,427 

$97 

ROE

26%

0%

Average equity ($B)

$13.4

$25.0

Retail Banking

Total revenue

$8,274 

$17,950 

Credit costs

206

   1,142 

Expense

        5,372

     10,357

Net income

$1,645 

$3,903 

Consumer Lending

Total revenue

$6,556 

$14,742 

Credit costs

     519 

14,798

Expense

     3,213 

   6,391 

Net income

$1,782

($3,806)

Retail Financial Services

$3.9B Retail Banking profit offset almost entirely by losses in Consumer Lending

($ in millions)

1

RFS net income

($ in millions)

Retail Banking CAGR of 12% (excluding WaMu)

Strong profit and profit growth excluding Home Lending portfolio

Home

Lending

Portfolio,

excluding

reserve

changes,

will

continue

to

lose

money

for

the

next 3 –

5 years

2005

2009

CAGR

Retail Banking

$1,645

$3,903

24%

Mortgage Bank

379

1,200

33%

Auto

268

384

9%

Other

152

60

NM

Subtotal

$2,444

$5,547

23%

Home Lending portfolio

983

(5,450)

NM

Total RFS

$3,427

$97

NM

2

Agenda

Page

3

Retail Banking

3

Home Lending portfolio updates

19

Repurchase expense

35

Capital and returns

40

Appendix

48

2005

2006

2007

2008

2009

Pretax income ($ in billions)

Consumer Banking and Business Banking

Consistent organic growth

$2.7

$3.2

$3.7

$4.9

$6.5

4

Great benefit of being part of JPM

Marketing

Ability to continue to invest throughout the downturn -

examples

Increased marketing spend by over $200mm over 4 years; increase of

90% and CAGR of 18% since 2005

New Branches

Grew branch network by 2,513 branches from end of 2005 to 5,154

Of which 642 branches represented organic growth of 24%

Additional

Salespeople

Added 10,924 Personal Bankers since 2005

Of which 4,463 represented organic growth of 63%

Replace ATMs

with Deposit-

Friendly

Added 7,456 Deposit Friendly ATMs since 2007; nearly 50% of current

ATM fleet is Deposit Friendly

5

Great benefit of being part of JPM (continued)

Building

Chase

brand

with

Card

–

enormous

benefit

Over $2B marketing spend this year across all Consumer lines of business

1.1mm new Retail Bank customers (since 2007) that were previously only Card customers

Specialized cards and joint rewards programs

–

~40% of bank customers have a Chase card

Cross-line of business leverage

Percentage of customers that used a branch teller in 4Q09

–

69% of JPM consumer households

–

69% of Business Banking customers

–

48% of PWM customers

–

38% of CB customers

–

27% of Private Banking customers

Sharing of products with TSS and CB

Cross-referrals of affluent customers with AM

Of

2009

mortgage

originations,

27%

of

customers

had

or

now

have

a

bank

account

6

Consistent focus since 2002

Acquire

net

new

customers

–

grow

checking

accounts

Deepen relationships

Product (card, loans, investments)

Services

(bill

pay,

debit

rewards,

overdraft

protection,

alerts,

mobile)

Invest in Chase distribution network

New builds / ATMs

Branch rebrand / reconfiguration of interiors and exteriors

Customer service

Actively engage customers in the branch

7

605

794

914

961

564

2005

2006

2007

2008

2009

Chase organic growth –

Retail Banking (excluding WaMu)

Total revenue ($ in billions)

Net income ($ in billions)

Net new checking accounts (in 000’s)

Personal bankers (#)

7,067

7,573

9,650

10,558

11,530

2005

2006

2007

2008

2009

1.9

2.2

2.7

2.6

1.7

0.2

0.1

0.1

0.5

2005

2006

2007

2008

2009

Net Income

Credit impact

11.8

11.0

9.9

8.4

9.0

2005

2006

2007

2008

2009

CAGR 15%

CAGR 13%

CAGR 14%

CAGR 9%

8

Households with active online bill pay (# in 000’s)

Households with direct deposit (# in 000’s)

Total debit reward cards (# in 000’s)

Mobile & Alert users (# in 000’s)

1,279

1,685

2,277

1,022

Jan-07

Jan-08

Jan-09

Dec-09

Organic growth drivers (excluding WaMu)

4,926

5,852

6,744

4,240

Jan-07

Jan-08

Jan-09

Dec-09

1,759

3,369

5,350

823

Jan-07

Jan-08

Jan-09

Dec-09

CAGR 31%

CAGR 17%

CAGR 87%

5,957

6,850

1,833

3,147

2007

2008

2009

Enrolled Mobile Users

Enrolled Alert Users

Note: Includes Retail and Card users

CAGR 66%

9

Washington Mutual update

First conversion completed 7 months from

announcement

Last conversion completed in 13 months

Conversions included:

30,000 new branch workstations

Over 2,000 new branch servers

Loan and deposit systems

Finished

over

900

“occasio”

style

branch

retrofits

Installed 1,100+ Deposit Friendly ATMs  

in heritage WaMu branches

Continue to build and train sales force

Over the next few years, we will add

–

Over 2,000 Personal Bankers

–

450 +/-

Investment Sales

Representatives

–

375 +/-

Small Business Bankers

Create a consistent customer

experience

Expand ATM presence and continue

Deposit Friendly ATM growth

Conversions complete

Business integration –

2010+

10

Core message: We’re Chase; We’re a robust Retail bank; We’re here in (California);

We’re here to help

18%

68%

61%

61%

60%

54%

53%

64%

10%

20%

30%

40%

50%

60%

70%

1Q09

2Q09

3Q09

4Q09

Heritage Chase

California

Awareness

in

heritage

Chase1

and

California

footprints

Unaided awareness in California as a bank with checking

1

Heritage Chase represents Texas, Illinois, New York, and New Jersey

11

WaMu cross-sell and growth drivers

$0.6

$1.4

$1.6

$2.0

$1.3

$0.4

4Q08

1Q09

2Q09

3Q09

4Q09

WaMu

Growth Opportunity

$0.8

$1.1

$1.5

$1.5

$0.9

$1.0

4Q08

1Q09

2Q09

3Q09

4Q09

WaMu

Growth Opportunity

CAGR 88%

CAGR 233%

Investment sales ($ in billions)

Mortgage sales ($ in billions)

94

143

156

138

85

4Q08

1Q09

2Q09

3Q09

4Q09

CAGR 46%

Note:

Growth

opportunity

estimate

based

on

Chase

per

branch

data

applied

to

WaMu

branch

count

751

849

870

934

950

995

889

773

302

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

WaMu

Growth Opportunity

CAGR 62%

Note: Household data available for WaMu starting May 2009

Credit Cards -

Retail Banking (000’s)

Households with active online bill pay (000’s)

12

CA/FL WaMu sales force

Personal bankers

Financial advisors

2,689

3,141

3,774

3,592

2,697

4Q08

1Q09

2Q09

3Q09

4Q09

Business bankers

Loan officers

141

225

271

314

145

4Q08

1Q09

2Q09

3Q09

4Q09

384

407

419

518

380

4Q08

1Q09

2Q09

3Q09

4Q09

CAGR 40%

CAGR 123%

CAGR 35%

est.

est.

330

413

449

473

373

4Q08

1Q09

2Q09

3Q09

4Q09

CAGR 43%

est.

est.

est.

est.

est.

est.

13

2010 products and services innovation

Any Phone Device

2 Way Text Message

Chase Quick Deposit

Chase Network/Quick Pay

Chase Ultimate Rewards

Debit/Credit Rewards Pooling

Chase Real Cash

New Co-Brand Partnerships

Deposit Friendly ATM

Instant Issue Debit

Contact-Less/“Blink”

Debit

Spanish Website

Channel

Integrated platform

Credit and debit rewards

Mobile banking

14

Business Banking opportunity is significant

Chase

WaMu

Deposits ($B)

$46.7

$7.6

Loans ($B)

16.4

1.3

Non-lending revenue 

$2,100

$500

Lending revenue 

500

100

Subtotal

$2,600

$600

# of branches

3,190

1,863

Revenue per branch ($ in 000’s)

~$800

~$300

Leverage the Chase model in WaMu branch footprint

Offering a full range of products (e.g. Treasury Services, Lending)

Achievable at minimal additional cost, driving meaningful revenue

growth

$500k per branch in incremental revenue x 2k WaMu branches = $1B

revenue

2009 ($ in millions, unless otherwise noted)

15

Business Banking has undertaken several initiatives to increase lending

Market

Coverage

New /

Enhanced

Products

Lending initiatives

Business Banking announced addition of 300+

additional small business bankers on 11/9/09

~160 bankers have been added to date

Launched new Owner Occupied Real Estate

promotion that generates significant fee savings

for customers

Introduced new small business credit cards (Ink

cards) that help owners manage their cash-flow

needs

Credit Process

Improvements

Realigned credit policy (in light of stabilizing

market conditions) to improve approval rates –

implemented new credit scorecard

Implemented second review of declined

applications to provide more opportunities for

approval 

Initial results have

been very positive:

Loan volume is up

sharply year-over-

year

Application volume

and loan pipeline

continue to get

stronger

Chase has become

one of the top SBA

lenders

Chase committed to lending $10B to Small Businesses in 2010

16

Affluent banking opportunity is significant

Significant

opportunity

to

capture

share

with

existing

customers

and

attract

new

customers

Capture of 20-25% wallet share with 10-20% of current affluent clients would result

in incremental pre-tax of $500mm -

$1B

Note: Share of Wallet calculated using total U.S. asset, investment and deposit estimates from IXI WealthComplete®, June 2009. IXI is an Equifax company

Mass

Affluent

<$500k

$500k-$5mm

Total

% of Chase Consumer Bank households

92%

8%

100%

% of Total deposit & investment wallet

33%

67%

100%

Chase share of existing clients' wallet

  Deposit wallet

28%

11%

18%

  Investment wallet

9%

2%

4%

Total wallet

19%

5%

9%

Current Chase Consumer Bank household distribution and share of wallet by wealth level

Potential incremental opportunity with affluent clients

17

Retail Banking opportunities

Continue to execute in Chase footprint

Build out WaMu consumer products and customer base

Build out WaMu Business Banking

Debit

overdraft

changes

short-term

negative

–

but

a

much

better

customer

experience over time

Capture greater share of affluent

Relationship products

Entry and mass product differentiation

These are large opportunities

18

Agenda

Page

19

Home Lending portfolio updates

19

Retail Banking

3

Repurchase expense

35

Capital and returns

40

Appendix

48

4Q09 Outstandings ($ in billions)

Consumer Lending portfolio

Total loans

Non purchased

credit-impaired

Credit-

impaired

Home Equity

$134

        $101

         $33

Option ARM 

46

           9

          37

Prime Mortgage 

81

          59

          22

Subprime Mortgage 

22

          13

            9

Total Home Lending portfolio¹

$283

$182

$101

    Fair value mark²

$20

NA

$20

Home Lending carrying value

263

$182

81

Auto

46

46

NA

Student and other

15

15

NA

Total Consumer Lending portfolio

$324

$243

$81

    Loan loss reserve (LLR)

$13.8

$12.2

$1.6

    LLR as % of loans / LLR + FVM as % of UPB CI

NA

5.0%

21.4%

36% of loans in the $101B purchased credit-impaired portfolio are marked with life-of-

loan loss assumptions

5.0% reserve ratio on non purchased credit-impaired portfolio

1

Credit-impaired represents Unpaid Principal Balance (UPB) not book value

2

Fair

Value

Mark

(FVM)

remaining

is

the

original

mark

reduced

by

liquidation

losses

realized

Note: Table above excludes prime mortgage loans and student loans classified as held-for-sale

20

1Q09

2Q09

3Q09

4Q09

Home Equity

$1,098

$1,265

$1,142

$1,177

Prime Mortgage¹

316

496

540

597

Subprime Mortgage

364

410

422

452

Total Home Lending portfolio

$1,778

$2,171

$2,104

$2,226

Home Lending portfolio losses

1

Includes Option ARM

Growth in 2008 and 2009 with some degree of leveling in 2H09

Over the next several quarters, quarterly losses could reach:

$1.4B for Home Equity

$600mm for Prime Mortgage

$500mm for Subprime Mortgage

Net charge-offs ($ in millions), excluding purchased credit-impaired portfolio

21

$0

$1,000

$2,000

$3,000

$4,000

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

$0

$1,300

$2,600

$3,900

$5,200

$6,500

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

$0

$1,000

$2,000

$3,000

$4,000

$5,000

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Prime Mortgage delinquency trend ($ in millions)

Subprime Mortgage delinquency trend ($ in millions)

Home Equity delinquency trend ($ in millions)

Commentary

30-150 showing stability across portfolios

(not yet improving)

150+ rising in mortgage portfolios

Consumer credit—delinquency trends

Excluding purchased credit-impaired loans

30 –

150 day delinquencies

30+ day delinquencies

150+ day delinquencies

Note: Delinquencies prior to September 2008 are heritage Chase

Prime Mortgage excludes Held for Sale, Asset Wealth Management and Government Insured

Loans

30 –

150 day delinquencies

30+ day delinquencies

150+ day delinquencies

30 –

150 day delinquencies

30+ day delinquencies

150+ day delinquencies

22

Delinquency treatment

Delinquent accounts are treated consistently whether in a trial modification or not

Each month that cumulative trial payments are less than contractual payment an account will age

through to the next delinquency bucket

When a loan is permanently modified the loan is returned to current status

Loss recognition

Accounts are charged-off and written down to collateral value at 150 DPD (days past due)

Only exception to this policy are accounts that reach 150 DPD during their trial period that are

current with each and every scheduled trial payment

The cumulative impact of this exception was less than $150mm at 12/31/09

We continue to take additional write downs, as required, as loans progress towards foreclosure and

REO, with the objective of the extension in foreclosure timelines not to result in deferred losses

When a loan is permanently modified:

A TDR (life of loan) reserve is established; TDR reserves are reviewed on a quarterly basis for

continued adequacy

Loan is returned to accrual status once 6 payments have been made, 3 after permanent

modification

We will be very transparent about the performance of modified loans in our reporting

Accounting and Control: objective not to defer delinquencies or losses

23

Loans

are

written

down

to

the

fair

value

of

collateral

less

cost

to

sell

at

150

DPD

As loans progress through the foreclosure process, additional write downs are recorded. 

Approximately

one-third

of

loans

greater

than

150

DPD

are

being

resolved

in

ways

other

than

foreclosure/REO

Loan loss reserves are established to cover expected losses for loans that are resolved later

and at higher severities through the foreclosure process. In addition to the write-downs shown

above we are holding ~20% of the gross UPB in reserve against these delinquent loans

Increase in 150+ mortgage delinquencies –

Prime and Subprime mortgage

Gross

UPB

Net

UPB

% Write

Down

1

1Q08 

$1,559

$1,383

11%

4Q09

8,413

5,743

32%

Difference:

$6,854

$4,360

4Q09 

$8,413

$5,743

32%

  Subject to foreclosure moratoriums

499

242

52%

  Extended foreclosure / REO timelines

2,477

1,469

41%

  In foreclosure / loss mitigation

3,273

2,402

27%

  Effective trial

1,743

1,232

29%

  Effective trial held from write-down

421

398

5%

Note: Numbers in table above represent  a combination of Prime and Subprime mortgages

1

Write-down as % of gross UPB

($ in millions), excluding purchased credit-impaired portfolio

24

Purchased credit-impaired loans

Loans recorded at fair

value at acquisition

Changes in cash flows trigger accounting events –

impairment or change in yields

Principal credit losses tracked on both a 150 day net charge-off basis and liquidation (cash) basis

150 day net charge-offs provide a leading indicator of liquidation losses (not a cash flow)

Liquidation losses recorded when cash proceeds received from resolving loan through REO

1

The carrying values above are net of the loan mark but not the

LLR

2 

Original loss estimates were $30.47 billion, resulting in an overall loss rate of 25%.  Principal loss estimates, and therefore the adjusted lifetime loss estimates, increased by $400 million

for Option ARMs and $1 billion for Prime Mortgage. These subsequent increases were recorded as LLR vs. an adjustment to the loan mark

Note: 150 day net charge-offs reflect losses recorded on a basis consistent with the non-Purchased Credit Impaired Portfolio. The net losses shown in this table are not included in the net charge offs

reported by the firm as these loans were considered impaired on the acquisition date and were written down to fair value in accordance with SOP 03-3

Balances ($ in millions)

Principal losses (nonaccretable

difference/LLR)

25

Lifetime

loss

estimates

adj

2

LTD losses

–

150 day NCOs

LTD losses

-

liquidation

$

%

$

%

$

%

Home Equity

$13,138

32%

$6,790

17%

$6,060

15%

Option ARMS

10,650

25%

5,617

13%

1,744

4%

Prime Mortgage

4,240

17%

2,319

9%

794

3%

Subprime Mortgage

3,842

35%

2,003

18%

796

7%

Total Portfolio

$31,870

27%

$16,729

14%

$9,394

8%

Remaining Mark/Current UPB

1

16%

22%

9/25/2008

12/31/2009

UPB

Carrying value

UPB

Carrying value

1

Home Equity

$40,785

$28,478

$32,958

$26,520

Option ARMs

42,552

32,302

37,379

29,039

Prime Mortgage

25,643

22,329

21,972

19,693

Subprime Mortgage

10,841

6,999

9,021

5,993

Total Portfolio

$119,821

$90,108

$101,330

$81,245

Excluding purchased credit-impaired portfolio ($ in millions)

Home equity delinquency

$0

$250

$500

$750

$1,000

$1,250

$1,500

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

30 - 59 days delinquent

60 - 89 days delinquent

90 - 150 days delinquent

150+ days delinquent

Jan-10

Note: Data prior to September 2008 is heritage Chase

26

Home equity 30-149 day delinquency by vintage

Heritage Chase portfolio ($ in millions)

$0

$100

$200

$300

$400

$500

$600

1

3

5

7

9

11

13

15

17

19

21

23

25

27

29

31

33

35

37

39

41

43

45

47

Time on books

(months)

FY 2004

FY 2005

1H06

2H06

1H07

2H07

1H08

2H08

B

A

C

27

-45% HPI

~$6B/yr

Home equity –

loss scenarios (when will seasoning occur)

4Q annualized losses were $4.7B (excluding purchased credit-impaired)

HPI projections are used to forecast portfolio balances by CLTV band, and future losses

are estimated using vintage loss rates by CLTV band and projecting forward under three

scenarios

Scenario based on:

National HPI peak-to-trough of -37%

Loss rates staying flat to 4Q09 annualized, and decreasing/increasing 1% annualized

per quarter for better/worse scenarios for >100% CLTV loans

Losses ($B)

Better

Flat

Worse

2010

4.0

4.5

5.0

2011

3.0

4.0

5.5

2012

2.0

3.0

5.0

-37% HPI

Home Equity losses over next several quarters could reach $1.4B

28

$200mm/y

r

$400mm/y

r

Excluding purchased credit-impaired portfolio

Prime mortgage delinquency

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

30 - 59 days delinquent

60 - 89 days delinquent

90 - 150 days delinquent

150+ days delinquent

Note: Delinquencies prior to September 2008 are heritage Chase

Prime Mortgage excludes Held for Sale, Asset Wealth Management and Government Insured Loans

Jan-10

29

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

1

3

5

7

9

11

13

15

17

19

21

23

25

27

29

31

33

35

37

39

41

43

45

47

Time on books

(months)

FY 2004

FY 2005

1H06

2H06

1H07

2H07

1H08

2H08

Prime mortgage 30-149 day delinquency by vintage

Heritage Chase portfolio ($ in millions)

30

Owned REO by state

2008

1Q09

2Q09

3Q09

4Q09

Units referred to foreclosure

68,029

27,579

27,280

26,222

16,686

Total in process

33,278

51,411

64,526

76,594

83,845

REO

Beginning

8,297

12,656

12,432

9,777

8,687

Adds

14,771

6,217

4,443

4,460

3,659

Sold/Other

(10,412)

(6,441)

(7,098)

(5,550)

(4,981)

Ending

12,656

12,432

9,777

8,687

7,365

Michigan

10%

All Other

46%

Ohio

4%

Illinois

10%

Minnesota

4%

California

15%

Florida

11%

Owned REO

REO Inventory (in units)

Note: Includes owned not-at-risk

Inventory

California

1,099

Florida

793

Michigan

764

Illinois

713

Minnesota

302

Ohio

297

All Other

3,397

   Total

7,365

Total ($B)

$1.7

Units (as of December 2009)

31

Projection of REO –

total serviced portfolio

33.0

29.5

26.5

24.5

47.3

53.1

51.8

46.4

42.3

35.2

29.2

23.1

45.0

38.0

31.5

26.5

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Historical

Baseline

Stressed

REO units (in 000’s)

Inventory levels have fallen significantly

Lower inflows due to foreclosure timelines

and trial modifications

Faster outflows –

average days to sell from

182 (Dec 2008) to 157 (Jan 2010)

REO expected to grow steadily –

size and

speed of growth will depend on:

Foreclosure timelines

Loan modifications

Delinquencies

Forecast assumptions

available in appendix

32

Source: LoanPerformance MarketTrends, Chase

Source: LoanPerformance MarketTrends, Zillow, Chase

Foreclosure inventory (units, in 000’s)

REO % of home sales

Distressed inventory trends / forecast –

Los Angeles market example

Market-level analysis to understand impact on home prices/sales: using Chase and industry data/estimates

Goal: understand potential range of outcomes

REO levels and % of home sales continue to grow through 2011 and

remain high (below peak levels)

Source: Chase, Moody’s Economy.com

Source: LoanPerformance MarketTrends, Chase

Note: Industry estimates based on forecast of Chase serviced portfolio

Industry REO inventory (units, in 000’s)

REO % of home sales

0

10

20

30

40

50

Dec-06

Jun-07

Dec-07

Jun-08

Dec-08

Jun-09

Dec-09

0

2

4

6

8

10

12

14

16

Industry

Chase

0%

10%

20%

30%

40%

50%

60%

70%

Dec-06

Jun-07

Dec-07

Jun-08

Dec-08

Jun-09

Dec-09

Chase Est.

LP Est.

Zillow

0%

10%

20%

30%

40%

50%

60%

70%

Dec-08

Jun-09

Dec-09

Jun-10

Dec-10

Jun-11

Dec-11

Actual

Baseline

Adverse

0

5

10

15

20

Dec-08

Jun-09

Dec-09

Jun-10

Dec-10

Jun-11

Dec-11

Actual

Baseline

Adverse

33

REO as a % of home sales

Estimated REO as a % of home sales –

Top 10 MSAs (Baseline assumptions)

Expect

REO

as

%

of

home

sales

to

grow

and

remain

high

(but

below

2009

peaks)

in

most markets through at least 2012

2Q09

4Q09

4Q12

Los Angeles

52%

39%

22 – 28%

New York

11%

12%

12 – 16%

Santa Ana

30%

16%

18 – 23%

Long Island

8%

8%

5 – 7%

Chicago

33%

28%

21 – 28%

San Diego

38%

25%

24 – 31%

San Francisco

14%

10%

9 – 12%

Oakland

47%

20%

18 – 23%

Phoenix

57%

37%

39 – 50%

San Jose

43%

22%

14 - 18%

34

Agenda

Page

35

Repurchase expense

35

Retail Banking

3

Home Lending portfolio updates

19

Capital and returns

40

Appendix

48

Repurchase risk

Repurchase demands and associated losses have grown significantly over the last 12-18

months

Delinquencies (90+ DPD loans) and accordingly repurchase demands

are concentrated in 2005-

2007 vintages

Demands grew through 2008 and into 2009 and remain at elevated levels

Top drivers for finalized repurchases reflect misrepresentations

as follows:

Credit / undisclosed debt

Income / employment

Appraisal

Misrepresentations typically surface and are resolved through a review process with the GSE's

within 24-36 months +/-

As such we expect, and are seeing, the contribution of earlier vintages to repurchases and

losses to decline

In 4Q09 approximately 14%,  58%  and 20% of repurchase demands respectively came from

2006, 2007 and 2008 vintages

Background and timing

36

Repurchase risk (continued)

Demands received from investors are reviewed and ~50% are successfully rescinded ("cured")

by providing additional documentation or evidence

We are able to put or claim back any losses on ~40% of loans that were third party originated

When the repurchase is finalized for our account we either buy-back the loan and include in

NPLs

or make-whole the investor for losses incurred

In 2009, we repurchased or made-whole $1.1B of loan UPB

In 2009, $1.6B of repurchase expenses / reserve build were reflected as contra revenues

against production income

Settled repurchase expenses have been running at $150mm+/-

per quarter over the last 2-3

quarters

In estimating reserves both demands presented and probable future demands are

considered; reserves are based on best estimates and experience to date and subject to

significant uncertainty

At December 31, 2009, we have $1.5B of reserves in RFS for presented and future demands

Process and accounting

37

Repurchase risk (continued)

Volume remains elevated at

~$1B per quarter and likely to

remain high as we work

through bad vintages

Channel Mix

Wholesale Broker remains

elevated at ~45%

SISA (stated income stated

assets) concentration has

declined from 43% in 2006

vintage demands to 12% in

2008/09 vintage

State concentration

Florida

29%

California

21%

Arizona

6%

Third-party originated 40%

0%

10%

20%

30%

40%

50%

60%

70%

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

2005 & Prior

FY 2006

FY 2007

FY 2008

FY 2009

$0

$200

$400

$600

$800

$1,000

$1,200

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

FY 2009

FY 2008

FY 2007

FY 2006

2005 & Prior

Repurchase demand from investor by vintage ($ in millions)

Repurchase demand from investor by vintage %

Activity overview

38

Repurchase risk (continued)

Repurchases result in one of the

following outcomes, relative to default

status:

Loan buyback –

Repurchase a loan

REO –

Buy back the property

Make-Whole –

Remit funds to the

GSE covering loss on disposition of

the loan/property

Of the $1.1B repurchased in 2009,

approximately two-thirds were        loans

/ REO repurchased vs. losses

reimbursed

$218mm of repurchased loans on

balance sheet in NPL status at

12/31/09

$41mm of REO relating to loan

repurchases on balance sheet at

12/31/09

FY 2009

UPB of loans repurchased

$1,085

Repurchase expense

    580

Change in reserves

1,032

Total Expense

$1,612

2009 repurchases ($ in millions)

39

Agenda

Page

40

Capital and returns

40

Retail Banking

3

Home Lending portfolio updates

19

Repurchase expense

35

Appendix

48

RFS capital and returns

Intend

to

report

“RFS

ongoing”

and

“runoff

Home

Lending

portfolios”

separately

going

forward

Goal to provide clarity to ongoing earnings of RFS franchise

Clearly separate impact of runoff portfolios which will include

WaMu purchased credit-impaired

Discontinued products (e.g. subprime, Alt-A, and option-ARM)

Broker originated loans

Limited documentation loans

Current ECLTVs

greater than 80%

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current

ECLTVs

are

calculated

using

original

appraised

value

adjusted

using

the

latest

HPI

published

by

Moody's

Economy.com

41

Home Lending portfolio breakout

At current production level ongoing portfolio expected to run down $5-10B over the next 2 years

–

financial impact is not material to RFS results

Note: Table above excludes Mortgage Banking

($ in billions, unless otherwise noted)

42

2009 Actuals

Average Loans

Net Interest Income ($mm)

Net Income ($mm)

Ongoing

Home Equity

$35

Prime Mortgage

5

Total ongoing

$40

$850

$250

Runoff

Purchased credit-impaired

$85

Home Equity

73

Prime Mortgage

49

Option ARM

9

Subprime

14

Total runoff

$230

$5,700

($5,700)

Total Home Lending

$270

$6,550

($5,450)

RFS capital and ROE -

2009

Retail Banking is allocated capital as a stand alone business with a theoretical asset

allocation (i.e. fully matched balance sheet)

Retail Banking has consistently delivered 40% +/-

ROE, performing at target today

Ongoing Consumer Lending business achieving / priced to target returns

Total RFS challenged in medium term; will continue until bad loans runoff

Average Loans

Equity

Net Income ($mm)

ROE

Retail Banking

$18 

$9.5 

$3,903 

41%

Consumer Lending

109 

7.5 

1,894 

25%

  RFS ongoing

$127 

$17.0 

$5,797 

34%

Home Lending runoff

230 

8.0 

(5,700)

NM

  Total RFS

$357 

$25.0 

$97 

0%

($ in billions, unless otherwise noted)

43

RFS capital and ROE

Ongoing

franchise

delivers

near

target

ROE

in

proforma

2009

with

higher

capital

allocated

2009 Equity

2010 Equity

Proforma ROE

ROE target

Retail Banking

$9.5

$10.0

39%

40%

Consumer Lending

7.5

10.5

18%

15%

   RFS ongoing

$17.0

$20.5

28%

30%

Home Lending runoff

8.0

7.5

NM

   Total RFS

$25.0

$28.0

0%

30%

2009 income over 2010 equity ($ in billions)

44

Simulated runoff portfolio forecast

$3B +/-

of capital is freed up over next three years as runoff portfolio liquidates

2009

2010

2011

2012

Average loans

  Purchased credit-impaired

$85

$75

$65

$55

  Other runoff

145

120

100

85

     Total 

$230

$195

$165

$140

Equity

$8.0

$7.5

$6.5

$5.0

($ in billions)

45

Home Lending runoff portfolio -

simulated

2010 results are for scenario purposes only

In 2011 and 2012:

Charge-offs could decline $2B –

$3B per year

Reserve releases could range from $1B –

$4B per year

Net Income could range from $0 –

($2.5B) in 2011 and $0 +/-

in 2012

As the credit environment improves and losses decline, the Home Lending

runoff portfolio could break even in 2012 / 2013 after which it could

contribute net income of $500mm +/-, declining slowly over time

2009

2010

Net interest income

$5,700

$4,200

Expense

1,550

1,750

Charge-off and reserve change

13,600

7,000 – 11,000

   Net Income

($5,700)

($3,000) – ($5,000)

($ in millions)

46

Total RFS simulation

Retail

Banking

uses

2010

analyst

average,

growing

at

8%

per

year

thereafter

Consumer Lending held flat for 2010 scenario, growing at 8% per year thereafter

Runoff from prior page

Future runoff net income ranges shown are for scenario purposes only to provide a variety of

possible results

Key assumptions

2012

2009

2010

2011

2012

Equity

ROE

Retail Banking

$3,903

$4,000

$4,300

$4,600

$10.5

44%

Consumer Lending

1,894

1,900

2,000

2,200

11.5

19%

   RFS ongoing

$5,797

$5,900

$6,300

$6,800

$22.0

31%

Home Lending runoff

(5,700)

(3,000) – (5,000)

0 – (2,500) 

0 +/-

5.0

NM

   Total RFS

$97

$2,900 - $900 

$6,300 - $3,800

$6,800 +/-

$27.0

25%+/-

Net income ($ in millions, equity in billions)

47

Agenda

Page

48

Appendix

48

Retail Banking

3

Home Lending portfolio updates

19

Repurchase expense

35

Capital and returns

40

NSF/OD policy changes and timeline

50

Home Lending severity

51

Purchased credit-impaired portfolio

52

Option ARM recast risk

56

Prime portfolio -

delinquencies and losses

67

Subprime portfolio -

delinquencies and losses

71

REO forecast assumptions

76

Page

Home Equity portfolio -

delinquencies and losses

57

Appendix table of contents

Modification overview

77

Home Lending -

portfolio runoff detail

78

49

Policy Change

Date

NSF/OD changes

January 28

Reduce daily maximum number of NSF / OD items from 6 to 3

March 29

Debit card & ATM transaction posting order modified so transactions are

recognized as they occur, not largest to smallest; checks, ACH, and deposits still

post at end of day; deposits post first, everything else posts high to low

Implement

a

$5

cushion

(if

the

account

is

overdrawn

by

less

than

$5

at

the

end

of

the day Chase will not charge an overdraft fee)

Move to a flat $34 NSF fee from a tiered structure that charged up to $35

Move to a standard $15 extended overdraft fee

Customers

have

the

option

to

say

“no”

to

Chase

Debit

Card

Overdraft

Coverage

July 1

New

checking

accounts

can

choose

to

opt

in

or

out

of

Chase

Debit

Card

Overdraft Coverage

August 15

All checking account customers (i.e. existing portfolio) that have not chosen to opt

in will no longer receive Chase Debit Card Overdraft Coverage

Annualized after-tax financial impact: ~$500mm

50

Home Lending average loss per unit / severity

Commentary on Home Equity trends

Home Equity severity ~90%

57% of 2009 losses are coming from Home Equity

10%

20%

30%

40%

50%

60%

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Prime

Subprime

Note: Severity is calculated by taking total cum losses for a loan and dividing by the last outstanding principal balance. The severity month is tagged by the most recent month in which the

loan took a loss  

Excluding purchased credit-impaired portfolio

51

Purchased credit-impaired current ECLTVs

CA/FL represented 65% at year-end 2009

The underlying customer delinquency rate for the purchased credit-impaired

loans was 28% at December 31, 2009

24%

(or

$24.2

billion)

is

in

some

stage

of

loss

mitigation

or

in

the

process

of

foreclosure

1

Represents the combined unpaid principal balance of loans which considers all available lien positions related to the property, which we own or service, divided by the

collateral value.  Current property values are estimated based on home valuation models utilizing nationally recognized home price index valuation estimates and do not

represent actual appraisals

2

Ratios of carrying value to current collateral value for the prime mortgage and option ARM portfolios are net of the allowance for loan losses of $1.1 billion and $491

million, respectively, as of December 31, 2009

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

As of December 31, 2009

52

UPB

Current ECLTV

ratio

1

Carrying

value

Carrying value

to

collateral

value

Home Equity

32,958

127%

26,520

102%

Option ARMs

37,379

128%

29,039

98%

2

Prime Mortgage

21,972

121%

19,693

102%

2

Subprime Mortgage

9,021

122%

5,993

81%

Total

101,330

81,245

Remaining accretable yield represents interest income to be recognized over the remaining

life of loans at current market rates

For variable rate loans, the interest rate recorded is adjusted based on the underlying variable

rate index

In 2009, $2.1B of net interest income, or 2.43%, earned on purchased credit-impaired

portfolio. 

The impact on the total Consumer Lending portfolio, which had a reported 270 bps net

yield, was (8) bps

Purchased credit-impaired portfolio yields

($ in millions)

1

Accretable yield dollars and percentages are net of internal funding costs

2

Accretable yield percentages calculated using average loan balances, net of LLR

53

9/25/08

1Q09

2Q09

3Q09

4Q09

Carrying Value, Ending

$90,108

$87,572

$85,406

$83,202

$81,245

Remaining Accretable

Yield

39,454

29,114

26,963

24,459

25,544

Accretable

Yield $ -

Net

1

NA

607

487

487

494

Accretable

Yield % -

Net

1,2

NA

2.79%

2.26%

2.29%

2.42%

0%

5%

10%

15%

20%

25%

30%

35%

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

December

2009

UPB

$21,972

Accounts (000)

60K

Average loan size (as of today in ‘000s)

$365

Current average ECLTV

121%

>150% ECLTV

21%

>100% ECLTV

72%

Average original CLTV

77%

Limited documentation

73%

Average original FICO

704

Average current FICO

663

% of loans Broker originated

55%

% of loans in CA/FL

66%

% in 2006/2007 vintage

60%

30+ rate

30.2%

90+ rate

25.0%

Note: Prime mortgage excludes government insured loans

ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

Original CLTV = original combined loan to value that was available upon underwriting the loan

Purchased credit-impaired –

Prime

$5.2B in loss mitigation/modification pipeline

Prime Mortgage key characteristics

30 –

150 day delinquencies

30+ day delinquencies

150+ day delinquencies

Prime Mortgage delinquency trend

Commentary

54

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

December

2009

UPB

$37,379

Accounts

89K

Average loan size (as of today in ‘000s)

$420

Current average estimated ECLTV

128%

>150% current ECLTV

29%

>100% current ECLTV

73%

Average original CLTV

73%

Limited documentation

79%

Average original FICO

699

Average current FICO

642

% of loans Broker originated

52%

% of loans in CA/FL

66%

% in 2006/2007 vintage

58%

% of loans making minimum payments

52% (78% of

Currents) 

30+ rate

36.6%

90+ rate

30.4%

Purchased credit-impaired –

Option ARM

$7.5B in loss mitigation/modification

pipeline

30 –

150 day delinquencies

30+ day delinquencies

150+ day delinquencies

Option ARM key characteristics

Option ARM delinquency trend

Commentary

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

Original CLTV = original combined loan to value that was available upon underwriting the loan

55

Option ARM recast risk –

total portfolio

2010

2011

2012

2013+

Total

Total UPB

$6,322

$3,946

$5,024

$4,252

$19,544

Weighted-average payment shock %

7%

28%

49%

12%

23%

Weighted-average ECLTV at recast

105%

119%

102%

60%

97%

Option ARM recasts -

current accounts ($ in millions)

Most borrowers are making minimum payments or payments that are below

interest only

52% of all borrowers are making minimum payments

Of borrowers who are current today 78% are making minimum payments

and 18% are negatively amortizing

~$15B in current conventional Option Arms are projected to recast in the next

3 years with increasingly severe payment shock.

Bulk of recasts are scheduled from bad vintages in 2005-2007

ECLTV and payment shock at recast drive delinquency

Modification efforts targeting borrowers with high payment shocks are

underway

Note:  Estimates made using current market interest rates

ECLTV = estimate combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

56

Home equity portfolio statistics

1st Lien

2nd Lien

Total

UPB

$27.4

$74.0

$101.4

# of Accounts (000’s)

455

1,397

1,852

% Behind Chase 1st

NA

31%

NA

Average current ECLTV

65%

97%

88%

4Q09 Loss Rate

1.01%

5.92%

4.52%

UPB %

<100 ECLTV

90%

65%

72%

100-125 ECLTV

6%

19%

15%

125+ ECLTV

4%

16%

13%

($ in billions), excluding purchased credit-impaired portfolio

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

57

$624

$597

$630

$744

$720

$725

$798

$833

$317

$323

$375

$496

$500

$475

$532

$537

$568

$641

$758

$1,022

$1,010

$952

$1,015

$990

$472

$599

$857

$914

$879

$968

$924

$43

$49

$409

$60

$64

$8

$18

$29

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Prior to 2005

2005

2006

2007

2008

Early and late stage delinquency by vintage (30+ days delinquent)

Note: Data prior to September 2008 is heritage Chase

Home Equity –

excluding purchased credit-impaired portfolio ($ in millions)

58

$77

$61

$95

$110

$113

$120

$201

$109

$164

$191

$171

$182

$248

$263

$219

$315

$443

$493

$429

$456

$191

$165

$278

$386

$455

$411

$400

$1

$7

$10

$16

$18

$19

$23

$21

$36

$35

$141

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Prior to 2005

2005

2006

2007

2008

Home Equity contribution to losses

Note: Data prior to September 2008 is heritage Chase

Net charge-offs ($ in millions), excluding purchased credit-impaired portfolio

59

Home Equity 30+ Delinquency $ Amount 100+ current ECLTV

414

379

423

518

506

510

551

603

64

74

78

86

96

101

97

90

0

200

400

600

800

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

0.0%

2.0%

4.0%

6.0%

8.0%

30-150 day delinquencies

150+ day delinquencies

NCO rate

57

111

286

563

705

609

704

660

51

47

52

39

31

2

6

11

0

100

200

300

400

500

600

700

800

900

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

30-150 day delinquencies

150+  day delinquencies

NCO rate

240

341

356

404

386

347

368

295

29

36

44

46

45

46

37

15

0

100

200

300

400

500

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

30-150 day delinquencies

150+ day delinquencies

NCO rate

Note: Data prior to September 2008 is heritage Chase

ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

807

784

874

1,063

1,042

1,003

1,123

1,142

318

316

316

321

354

419

422

442

0

500

1000

1500

2000

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

0.0%

0.5%

1.0%

1.5%

2.0%

30-150 day delinquencies

150+ day delinquencies

NCO rate

<100% current ECLTV

100 –

125% current ECLTV

125 –

150% current ECLTV

>150% current ECLTV

60

Current ECLTV

12/31/07¹

12/31/08

12/31/09

< 80% 

$51.6

$58.5

$48.5

80 – 90%

15.9

15.3

12.4

90 – 100% 

13.9

11.9

10.9

100 – 125% 

12.2

16.1

16.0

125 – 150% 

1.1

7.4

5.9

>150% 

0.1

5.1

7.7

Total

$94.8

$114.3

$101.4

Home equity current ECLTV stratification –

UPB $

(UPB $ in billions), excluding purchased credit-impaired portfolio

1

12/31/2007 is heritage Chase Only

ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

$13.4

$28.6

$29.6

61

Current ECLTV

1Q09

2Q09

3Q09

4Q09

< 80% 

0.32%

0.33%

0.34%

0.40%

80 – 100% 

2.07%

2.42%

2.43%

2.84%

100 – 125% 

5.91%

7.21%

6.80%

7.15%

125 – 150% 

12.12%

14.72%

13.10%

12.76%

>150% 

28.32%

33.32%

29.34%

27.17%

Total

3.93%

4.61%

4.25%

4.52%

Home equity losses by current ECLTV

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

Net charge-offs ($ in millions), excluding purchased credit-impaired portfolio

Annualized loss rates, excluding purchased credit-impaired portfolio

62

Current ECLTV

1Q09

2Q09

3Q09

4Q09

< 80%

$45

$46

$45

$51

80 –

100%

128

148

144

161

100 –

125%

234

284

258

277

125 –

150%

211

240

219

182

>150%

480

547

476

506

Total

$1,098

$1,265

$1,142

$1,177

Home Equity loss rates by state

UPB

Loss Rate

Losses ($)

4Q09

1Q09

2Q09

3Q09

4Q09

4Q09

California

$20.7

6.46%

7.81%

6.67%

7.04%

$367

Florida

5.3

11.24%

12.71%

9.52%

11.27%

151

Arizona

5.2

7.14%

7.09%

7.47%

9.60%

126

New York

16.9

1.40%

1.94%

2.09%

2.23%

95

Illinois

6.6

2.63%

2.98%

2.96%

3.67%

61

Michigan

3.2

5.01%

5.63%

5.85%

6.47%

53

Nevada

0.5

13.36%

15.54%

15.37%

17.97%

21

All Other

43.0

2.46%

2.99%

3.00%

2.79%

303

Total

$101.4

3.93%

4.61%

4.25%

4.52%

$1,177

(UPB $ in billions, losses in millions), excluding purchased credit-impaired portfolio

63

Home Equity current ECLTV by state –

UPB $

<80%

80 – 90%

90 – 100%

100 – 125%

125 – 150%

>150%

California

$7.8

$2.0

$1.6

$3.0

$2.5

$3.8

Arizona

1.1

0.3

0.3

0.9

0.8

1.9

Florida

1.2

0.4

0.4

1.1

0.9

1.4

Michigan

0.8

0.3

0.3

0.7

0.7

0.4

Nevada

0.1

0.0

0.0

0.1

0.1

0.2

Illinois

2.8

1.0

1.0

1.6

0.2

0.0

New York

10.2

2.2

1.9

2.4

0.2

0.0

All Other

24.5

6.2

5.4

6.2

0.5

0.0

Total

$48.5

$12.4

$10.9

$16.0

$5.9

$7.7

% of Total

48%

12%

11%

16%

6%

7%

(UPB $ in billions), excluding purchased credit-impaired portfolio

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

64

Home Equity losses by current ECLTV

<80%

80 – 100%

100 – 125%

125 – 150%

>150%

California

$22

$12

$78

$322

$1,084

Florida

<1

5

58

147

425

Arizona

<1

<1

20

54

359

Nevada

1

<1

5

9

63

Michigan

4

18

38

67

67

Illinois

1

38

116

58

0

New York

16

87

198

33

0

All Other

143

421

540

162

11

Total

$187

$581

$1,053

$852

$2,009

% of Total

4%

12%

23%

18%

43%

2009 net charge-offs ($ in millions), excluding purchased credit-impaired portfolio

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

65

<80%

80 – 100%

100 – 125%

125 – 150%

>150%

California

0.29%

0.35%

2.67%

13.38%

29.49%

Florida

0.00%

0.61%

5.60%

16.65%

29.68%

Arizona

0.00%

0.00%

2.28%

6.90%

18.83%

Nevada

1.25%

0.00%

6.39%

13.27%

33.14%

Michigan

0.46%

2.86%

4.89%

9.71%

15.41%

Illinois

0.02%

1.77%

7.10%

37.00%

4.67%

New York

0.16%

2.17%

8.60%

17.51%

0.48%

All Other

0.60%

3.67%

8.48%

21.94%

26.72%

Total

0.39%

2.49%

6.58%

14.41%

26.06%

Home Equity losses rates by current ECLTV

2009

annualized

loss

rates

,

excluding

purchased

credit

impaired

portfolio

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

66

Net charge-offs ($ in millions), excluding purchased credit-impaired portfolio

Prime contribution to losses

Note: Data prior to September 2008 is heritage Chase

$12

$11

$18

$13

$19

$39

$44

$61

$18

$37

$62

$72

$122

$159

$149

$156

$20

$56

$93

$100

$148

$247

$285

$288

$4

$10

$23

$63

$47

$36

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Prior to 2006

2006

2007

2008

67

Prime losses by current ECLTV

Current ECLTV

1Q09

2Q09

3Q09

4Q09

< 80% 

0.49%

0.83%

0.75%

0.66%

80 – 100% 

0.63%

1.55%

1.61%

1.70%

100 – 125% 

1.33%

3.01%

3.36%

3.80%

125 – 150% 

4.90%

8.53%

9.12%

11.28%

>150% 

15.33%

18.79%

22.99%

23.33%

Total

1.95%

3.07%

3.45%

3.81%

Annualized loss rates, excluding purchased credit-impaired

Current ECLTV

1Q09

2Q09

3Q09

4Q09

< 80% 

$33

$53

$48

$41

80 – 100% 

28

66

68

70

100 – 125% 

34

75

83

98

125 – 150% 

54

89

95

105

>150% 

163

198

231

254

Total

$312

$481

$525

$568

Net charge-offs ($ in millions), excluding purchased credit-impaired

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

68

Prime loss rates by state

UPB

Loss Rate

Losses ($)

4Q09

1Q09

2Q09

3Q09

4Q09

4Q09

California

$18.3

3.38%

4.76%

4.80%

4.75%

$217

Florida

5.2

5.71%

6.08%

10.00%

8.52%

111

New York

7.8

0.31%

0.36%

0.53%

1.30%

25

Arizona

1.3

3.38%

7.45%

7.38%

7.16%

24

Nevada

0.7

4.83%

9.34%

8.07%

7.26%

13

Illinois

2.2

0.65%

1.41%

2.14%

1.58%

9

Michigan

1.2

1.80%

4.58%

1.86%

3.27%

9

All Other

22.7

0.39%

1.67%

1.71%

2.81%

160

Total

$59.4

1.95%

3.07%

3.45%

3.81%

$568

Note: Loss rates are annualized

(UPB $ in billions), excluding purchased credit-impaired

69

<80%

80 – 100%

100 – 125%

125 – 150%

>150%

California

$41

$34

$112

$186

$516

Florida

12

22

47

85

240

Arizona

3

3

12

15

52

Nevada

1

1

7

9

33

Michigan

3

5

11

6

5

Illinois

5

12

8

5

0

New York

9

19

17

2

0

All Other

101

136

76

35

0

Total

$175

$232

$290

$343

$846

% of Total

9%

12%

16%

18%

45%

Prime losses by current ECLTV

FY2009 net charge-offs ($ in millions), excluding purchased credit-impaired portfolio

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

70

Excluding purchased credit-impaired portfolio

Subprime mortgage delinquency

Note:

30+

day

delinquencies

prior

to

September

2008

are

heritage

Chase

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

30 - 59 days delinquent

60 - 89 days delinquent

90 - 150 days delinquent

150+ days delinquent

Jan-10

71

Excluding

purchased

credit-impaired

portfolio

(net

charge-offs

-

$

in

millions)

Subprime contribution to losses

Note: Data prior to September 2008 is heritage Chase

$54

$77

$84

$64

$117

$117

$104

$127

$50

$42

$47

$40

$42

$42

$50

$51

$45

$73

$139

$204

$195

$237

$250

$261

$3

$14

$18

$13

$10

$11

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

Prior to 2006

2006

2007

2008

72

Subprime losses by current ECLTV

Current ECLTV

1Q09

2Q09

3Q09

4Q09

< 80% 

2.85%

3.19%

2.71%

3.28%

80 – 100% 

6.22%

8.10%

7.76%

9.95%

100 – 125% 

12.74%

16.30%

16.45%

18.61%

125 – 150% 

22.05%

25.28%

23.46%

26.59%

>150% 

34.57%

36.73%

51.57%

43.93%

Total

9.91%

11.50%

12.31%

14.01%

Current ECLTV

1Q09

2Q09

3Q09

4Q09

< 80% 

$36

$38

$31

$34

80 – 100% 

61

77

71

87

100 – 125% 

93

116

112

125

125 – 150% 

81

81

80

71

>150% 

93

98

128

135

Total

$364

$410

$422

$452

Net charge-offs ($ in millions), excluding purchased credit-impaired portfolio

Annualized loss rates, excluding purchased credit-impaired portfolio

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

73

Subprime loss rates by state

UPB

Loss Rate

Losses ($)

4Q09

1Q09

2Q09

3Q09

4Q09

4Q09

Florida

$1.6

24.93%

21.74%

30.80%

31.27%

$130

California

1.7

15.24%

14.73%

12.60%

14.60%

62

New York

1.5

5.18%

4.88%

5.02%

9.36%

36

Illinois

0.6

16.90%

18.37%

22.12%

20.51%

30

Michigan

0.3

28.12%

35.77%

27.75%

23.50%

19

Arizona

0.3

16.43%

19.23%

18.68%

16.54%

13

Nevada

0.1

18.52%

16.74%

19.88%

21.23%

5

All Other

6.4

3.34%

7.66%

7.49%

9.77%

157

Total

$12.5

9.91%

11.50%

12.31%

14.01%

$452

Note: Loss Rate calculated using Quarter End Balances. Loss rates are annualized

(UPB $ in billions), excluding purchased credit-impaired portfolio

74

Subprime losses by current ECLTV

<80%

80 – 100%

100 – 125%

125 – 150%

>150%

Arizona

$2

$2

$6

$12

$35

California

7

11

47

85

116

Florida

13

16

70

133

253

Illinois

10

23

75

18

0

Michigan

6

13

25

31

35

Nevada

0

0

2

2

15

New York

13

31

52

3

0

All Other

88

200

169

28

1

Total

$139

$296

$446

$312

$455

% of Total

8%

18%

27%

19%

28%

Net charge-offs ($ in millions), excluding purchased credit-impaired portfolio

Note: ECLTV = estimated combined loan to value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

75

Key assumptions used for REO forecast

Delinquency

Assumptions

Loss Mitigation

Assumptions

Delinquency units (30+)

Increase 10% to 25% through mid 2010

Delinquency units (30-59)

Flattish to +7% though mid 2010

% of delinquent units that flow into loss mitigation

50%-75%

% of loss mitigation units that turn into permanent modifications

12.5%-25%

Recidivism rate on completed modifications

1 year out: 35%-50%

3 years out: 50%-65%

Foreclosure

Timelines

Timelines to remain at current levels

Conservative assumptions used to understand the range of outcomes –

business may perform meaningfully better

REO and distressed sales lower with:

Lower delinquency

Higher percent of permanent modifications

Lower recidivism

Current elongated foreclosure timelines (timing only for REO)

76

25 customers do not pay as agreed

75 customers pay as agreed

29 do not submit all documents required or submit documents

that require refinement for underwriting

13 are not HAMP eligible but will qualify for other modification

products

33 are able to be underwritten

Program Summary (as of January 31, 2010)

Modification overview

Many borrowers return forms missing key information

(signatures, SSN, etc.) or do not return one of four

required documents

Current outreach strategy includes 36 calls, 15 letters,

and 2 door-knocks per account prior to cancellation for

missing documents

Treasury issued a new directive

5

requiring mortgagor

document perfection prior to HAMP trial modification

offer

1

Data in table from January 1, 2009 through January 31, 2010.  HAMP program launched April 1

2 

Chase program modifications include Home Equity

3

HAMP modifications offered data as of January 29, 2010

4 

Seasoned population are those HAMP modifications with first payments due April –

November, therefore all required payments were complete by January 31

5

Treasury directive issued January 28, 2010 and effective June 1, 2010

Modification offers continue to grow, but obtaining documents required for HAMP completion

remains an issue

For every 100 seasoned

4

HAMP trial modifications offered:

Dedicated resources

15 operating sites across the country

Approximately 14,750 staff dedicated to loss mitigation

Local loan-modification counselors in 34 Chase

Homeownership Centers

Focused campaign

Borrowers assigned a specific agent with end-to-end

responsibility

What we are doing

Documentation challenges and mitigation efforts

77

HAMP

Chase

Programs²

Agency

Total

Modifications

offered

3

222,192

193,104

232,166

647,462

Approved for

permanent

modifications

41,149

70,888

30,676

142,713

Permanent

modifications

completed

11,592

60,210

28,089

99,891

1

Home Lending runoff portfolio -

simulated

2010 results are for scenario purposes only and numbers are rounded

2009

2010

Purchased credit-impaired

Net Interest Income

$2,100

$1,800

Expenses

650

750

Impairment

1,600

Net Income

($100)

$600

Runoff (excl purchased credit-impaired)

Net Interest Income

$3,600

$2,400

Expenses

900

1,000

Charge-offs and reserve change

12,000

7,000 - 11,000

Net Income

(5,600)

(3,500) - (5,500)

Total

($5,700)

($3,000) - ($5,000)

($ in millions)

78