1
1
CONSOLIDATED AVERAGE BALANCES AND NET INTEREST EARNINGS
J.P. Morgan & Co. Incorporated
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Dollars in millions,
Interest and average rates
on a taxable-equivalent basis Three months ended
----------------------------------------------------------------------------------------
December 31, 1997 December 31, 1996
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Average Average Average Average
balance Interest rate balance Interest rate
----------------------------------------------------------------------------------------
ASSETS
Interest-earning deposits with banks,
mainly in offices outside the U.S. $ 2,305 $ 75 12.91% $ 2,071 $ 29 5.57%
Debt investment securities in
offices in the U.S. (a):
U.S. Treasury 1,219 22 7.16 3,002 44 5.83
U.S. state and political
subdivision 1,174 34 11.49 1,496 43 11.43
Other 15,957 247 6.14 16,708 275 6.55
Debt investment securities in offices
outside the U.S. (a) 3,025 57 7.48 5,522 74 5.33
Trading account assets:
In offices in the U.S. 30,292 484 6.34 19,100 280 5.83
In offices outside the U.S. 37,935 676 7.07 38,328 740 7.68
Securities purchased under agreements
to resell and federal funds sold,
In offices in the U.S. 15,372 247 6.37 18,148 250 5.48
In offices outside the U.S. 26,705 310 4.61 22,318 265 4.72
Securities borrowed,
mainly in offices in the U.S. 41,221 500 4.81 27,899 365 5.20
Loans:
In offices in the U.S. 5,712 100 6.95 5,546 92 6.60
In offices outside the U.S. 27,439 455 6.58 23,721 371 6.22
Other interest-earning assets (b):
In offices in the U.S. 943 37 * 675 51 *
In offices outside the U.S. 571 44 * 817 67 *
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Total interest-earning assets 209,870 3,288 6.22 185,351 2,946 6.32
Allowance for credit losses (c) (897) (1,113)
Cash and due from banks 775 1,082
Other noninterest-earning assets 59,944 48,665
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Total assets 269,692 233,985
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Interest and average rates applying to the following asset categories have been
adjusted to a taxable-equivalent basis: Debt investment securities in offices in
the U.S., Trading account assets in offices in the U.S., and Loans in offices in
the U.S. The applicable tax rate used to determine these adjustments was
approximately 41% for the three months ended December 31, 1997 and 1996.
(a) For the three months ended December 31, 1997 and 1996, average debt
investment securities are computed based on historical amortized cost, excluding
the effects of SFAS No. 115 adjustments.
(b) Interest revenue includes the effect of certain off-balance-sheet
transactions.
(c) Average amount at December 31, 1997 is based on the portions of the
aggregate allowance for credit losses related only to loans and trading account
assets. Average amount at December 31, 1996 is substantially based on the
aggregate allowance for credit losses.
* Not meaningful.
2
2
CONSOLIDATED AVERAGE BALANCES AND NET INTEREST EARNINGS
J.P. Morgan & Co. Incorporated
- -----------------------------------------------------------------------------------------------------------------------------
Dollars in millions,
Interest and average rates Three months ended
on a taxable-equivalent basis ---------------------------------------------------------------------------------
December 31, 1997 December 31, 1996
---------------------------------------------------------------------------------
Average Average Average Average
balance Interest rate balance Interest rate
---------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits:
In offices in the U.S. $ 9,900 $ 137 5.49% $ 7,944 $ 109 5.46%
In offices outside the U.S. 47,620 573 4.77 45,049 537 4.74
Trading account liabilities:
In offices in the U.S. 13,142 236 7.12 8,127 127 6.22
In offices outside the U.S. 16,149 238 5.85 11,812 218 7.34
Securities sold under agreements to
repurchase and federal funds
purchased, mainly in offices in
the U.S. 68,364 915 5.31 69,511 911 5.21
Commercial paper, mainly in offices
in the U.S. 6,086 84 5.48 4,082 56 5.46
Other interest-bearing liabilities:
In offices in the U.S. 14,410 234 6.44 15,772 231 5.83
In offices outside the U.S. 3,111 56 7.14 2,856 59 8.22
Long-term debt,
mainly in offices in the U.S. 22,599 343 6.02 12,630 193 6.08
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Total interest-bearing liabilities 201,381 2,816 5.55 177,783 2,441 5.46
Noninterest-bearing deposits:
In offices in the U.S. 1,028 1,872
In offices outside the U.S. 594 481
Other noninterest-bearing
liabilities 55,221 42,471
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Total liabilities 258,224 222,607
Stockholders' equity 11,468 11,378
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Total liabilities and stockholders'
equity 269,692 233,985
Net yield on interest-earning assets 0.89 1.08
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Net interest earnings 472 505
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3
3
CONSOLIDATED AVERAGE BALANCES AND NET INTEREST EARNINGS
J.P. Morgan & Co. Incorporated
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Dollars in millions,
Interest and average rates Twelve months ended
on a taxable-equivalent basis --------------------------------------------------------------------------------------
December 31, 1997 December 31, 1996
--------------------------------------------------------------------------------------
Average Average Average Average
balance Interest rate balance Interest rate
--------------------------------------------------------------------------------------
ASSETS
Interest-earning deposits with banks,
mainly in offices outside the U.S. $ 2,035 $ 199 9.78% $ 2,022 $ 110 5.44%
Debt investment securities in
offices in the U.S.(a):
U.S. Treasury 1,296 95 7.33 1,581 106 6.70
U.S. state and political
subdivision 1,264 148 11.71 1,591 183 11.50
Other 17,260 1,095 6.34 17,399 1,109 6.37
Debt investment securities in offices
outside the U.S.(a) 3,733 273 7.31 4,452 271 6.09
Trading account assets:
In offices in the U.S. 25,245 1,587 6.29 16,591 994 5.99
In offices outside the U.S. 39,367 2,693 6.84 29,656 2,285 7.71
Securities purchased under agreements
to resell and federal funds sold,
In offices in the U.S. 15,660 895 5.72 24,653 1,269 5.15
In offices outside the U.S. 24,785 1,164 4.70 18,411 985 5.35
Securities borrowed,
mainly in offices in the U.S. 36,287 1,784 4.92 25,310 1,284 5.07
Loans:
In offices in the U.S. 5,146 381 7.40 6,227 418 6.71
In offices outside the U.S. 25,490 1,661 6.52 21,794 1,371 6.29
Other interest-earning assets (b):
In offices in the U.S. 774 168 * 940 139 *
In offices outside the U.S. 707 282 * 1,027 274 *
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Total interest-earning assets 199,049 12,425 6.24 171,654 10,798 6.29
Allowance for credit losses (c) (911) (1,119)
Cash and due from banks 797 935
Other noninterest-earning assets 53,960 43,573
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Total assets 252,895 215,043
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Interest and average rates applying to the following asset categories have been
adjusted to a taxable-equivalent basis: Debt investment securities in offices in
the U.S., Trading account assets in offices in the U.S., and Loans in offices in
the U.S. The applicable tax rate used to determine these adjustments was
approximately 41% for the twelve months ended December 31, 1997 and 1996.
(a) For the twelve months ended December 31, 1997 and 1996, average debt
investment securities are computed based on historical amortized cost, excluding
the effects of SFAS No. 115 adjustments.
(b) Interest revenue includes the effect of certain off-balance-sheet
transactions.
(c) Average amount at December 31, 1997 is based on the portions of the
aggregate allowance for credit losses related only to loans and trading account
assets. Average amount at December 31, 1996 is substantially based on the
aggregate allowance for credit losses.
* Not meaningful.
4
4
CONSOLIDATED AVERAGE BALANCES AND NET INTEREST EARNINGS
J.P. Morgan & Co. Incorporated
- -----------------------------------------------------------------------------------------------------------------------------
Dollars in millions,
Interest and average rates Twelve months ended
on a taxable-equivalent basis ------------------------------------------------------------------------------------
December 31, 1997 December 31, 1996
------------------------------------------------------------------------------------
Average Average Average Average
balance Interest rate balance Interest rate
------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits:
In offices in the U.S. $ 9,676 $ 538 5.56% $ 3,962 $ 204 5.15%
In offices outside the U.S. 46,254 2,215 4.79 45,148 2,337 5.18
Trading account liabilities:
In offices in the U.S. 11,390 785 6.89 8,295 522 6.29
In offices outside the U.S. 14,291 867 6.07 11,056 780 7.05
Securities sold under agreements to
repurchase and federal funds
purchased, mainly in offices in
the U.S. 67,121 3,532 5.26 63,424 3,295 5.20
Commercial paper, mainly in offices
in the U.S. 4,858 262 5.39 4,133 225 5.44
Other interest-bearing liabilities:
In offices in the U.S. 15,590 958 6.14 14,331 819 5.71
In offices outside the U.S. 4,026 227 5.64 2,258 204 9.03
Long-term debt,
mainly in offices in the U.S. 18,155 1,097 6.04 10,643 625 5.87
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Total interest-bearing liabilities 191,361 10,481 5.48 163,250 9,011 5.52
Noninterest-bearing deposits:
In offices in the U.S. 1,033 2,298
In offices outside the U.S. 452 737
Other noninterest-bearing
liabilities 48,696 37,767
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Total liabilities 241,542 204,052
Stockholders' equity 11,353 10,991
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Total liabilities and stockholders'
equity 252,895 215,043
Net yield on interest-earning assets 0.98 1.04
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Net interest earnings 1,944 1,787
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