8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (date of earliest event reported): April 19, 2006

JPMORGAN CHASE & CO.
(Exact name of registrant as specified in its charter)

Delaware
(State or Other Jurisdiction of
Incorporation) 1-5805
(Commission File Number) 13-2624428
(IRS Employer
Identification No.)

270 Park Avenue, New York, NY
(Address of Principal Executive Offices) 10017
(Zip Code)

Registrant’s telephone number, including area code: (212) 270-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition
	Item 9.01 Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EX-12.1: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
EX-12.2: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS
EX-99.1: EARNINGS RELEASE FIRST QUARTER 2006 RESULTS
EX-99.2: EARNINGS RELEASE FINANCIAL SUPPLEMENT FIRST QUARTER 2006

Item 2.02 Results of Operations and Financial Condition

On April 19, 2006, JPMorgan Chase & Co. (“JPMorgan Chase”) reported 2006 first quarter net income of $3.1 billion, or $0.86 per share, compared with net income of $2.3 billion, or $0.63 per share, for the first quarter of 2005. A copy of the 2006 first quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit Number	Description of Exhibit
12.1	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges
12.2	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1	JPMorgan Chase & Co. Earnings Release —First Quarter 2006 Results
99.2	JPMorgan Chase & Co. Earnings Release Financial Supplement — First Quarter 2006

The earnings release 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 results to differ materially from those described in the forward-looking statements can be found in the 2005 Annual Report on Form 10-K for the year ended December 31, 2005, of JPMorgan Chase filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

JPMORGAN CHASE & CO.

(Registrant)

By: /s/ Joseph L. Sclafani

Joseph L. Sclafani

Executive Vice President and Controller

[Principal Accounting Officer]

Dated: April 19, 2006

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EXHIBIT INDEX

Exhibit Number	Description of Exhibit
12.1	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges
12.2	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1	JPMorgan Chase & Co. Earnings Release —First Quarter 2006 Results
99.2	JPMorgan Chase & Co. Earnings Release Financial Supplement — First Quarter 2006

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EX-12.1

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges

Three months ended March 31, (in millions, except ratios)	2006
Excluding Interest on Deposits
Income before income taxes	$	4,653
Fixed charges:
Interest expense		4,576
One-third of rents, net of income from subleases (a)		91
Total fixed charges		4,667
Less:   Equity in undistributed income of affiliates		(43	)
Earnings before taxes and fixed charges, excluding capitalized interest	$	9,277
Fixed charges, as above	$	4,667
Ratio of earnings to fixed charges		1.99
Including Interest on Deposits
Fixed charges, as above	$	4,667
Add:   Interest on deposits		3,738
Total fixed charges and interest on deposits	$	8,405
Earnings before taxes and fixed charges, excluding capitalized interest, as above	$	9,277
Add:   Interest on deposits		3,738
Total earnings before taxes, fixed charges and interest on deposits	$	13,015
Ratio of earnings to fixed charges		1.55

(a) The proportion deemed representative of the interest factor.

EX-12.2

EXHIBIT 12.2

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges
and Preferred Stock Dividend Requirements

Three months ended March 31, (in millions, except ratios)	2006
Excluding Interest on Deposits
Income before income taxes	$	4,653
Fixed charges:
Interest expense		4,576
One-third of rents, net of income from subleases (a)		91
Total fixed charges		4,667
Less:   Equity in undistributed income of affiliates		(43	)
Earnings before taxes and fixed charges, excluding capitalized interest	$	9,277
Fixed charges, as above	$	4,667
Preferred stock dividends (pre-tax)		6
Fixed charges including preferred stock dividends	$	4,673
Ratio of earnings to fixed charges and preferred stock dividend requirements		1.99
Including Interest on Deposits
Fixed charges including preferred stock dividends, as above	$	4,673
Add:   Interest on deposits		3,738
Total fixed charges including preferred stock dividends and interest on deposits	$	8,411
Earnings before taxes and fixed charges, excluding capitalized interest, as above	$	9,277
Add:   Interest on deposits		3,738
Total earnings before taxes, fixed charges and interest on deposits	$	13,015
Ratio of earnings to fixed charges and preferred stock dividend requirements		1.55

(a) The proportion deemed representative of the interest factor.

EX-99.1

Exhibit 99.1

JPMorgan Chase & Co.
270 Park Avenue, New York, NY 10017-2070
NYSE symbol: JPM
www.jpmorganchase.com

News release: IMMEDIATE RELEASE

JPMORGAN CHASE REPORTS 2006 FIRST-QUARTER NET INCOME OF $3.1 BILLION, OR
$0.86 PER SHARE

• Card Services earnings benefit from lower credit losses

• Investment Bank has record revenues of $4.7 billion

• Retail Financial Services generates growth in accounts, deposits and loans

• Asset & Wealth Management, Treasury & Securities Services and Commercial Banking each achieve solid revenue growth

New York, April 19, 2006 — JPMorgan Chase & Co. (NYSE: JPM) today reported 2006 first-quarter net income of $3.1 billion, or $0.86 per share, compared with net income of $2.3 billion, or $0.63 per share, for the first quarter of 2005. The comparison with the prior year benefited from the absence of a charge of $558 million after-tax, or $0.15 per share, related to settlement of the firm’s WorldCom litigation, which occurred in the first quarter of 2005. Included in the current quarter results were the following:

($ millions)	Pre-tax		After-tax
Card Services Bankruptcy-related Benefit (estimated) (1)		$550		$341
Incremental Expense related to SFAS 123R (2)		(459)		(285)
Treasury Portfolio Repositioning		(158)		(98)
Merger Costs		($71)		($44)

(1) Management’s estimate of the benefit following the new bankruptcy legislation that became effective in the fourth-quarter 2005.

(2) See page 13 for a further description.

Jamie Dimon, President and Chief Executive Officer, said, “Our earnings in the first quarter reflected positive momentum across the firm. Overall results benefited from the impact of lower bankruptcies in Card Services and were negatively affected by the incremental expense related to the adoption of SFAS 123R. Our businesses generally experienced underlying growth in customer accounts, loans, deposits, assets under management, and business volumes from new and existing clients. Additionally, the Investment Bank had strong fee income and improved trading performance. We are also pleased to see the progress in the Corporate segment’s results.”

Commenting on the recent agreement to purchase the Bank of New York’s Retail and Middle Market Banking businesses in exchange for the firm’s Corporate Trust business, Mr. Dimon remarked, “We are excited by the unique opportunity to add $15 billion in deposits, over 300 branches, and 400 ATMs to our New York City/Tri-State franchise. This acquisition will allow us to create an unparalleled platform that would have taken many years to build. We also remain committed to our processing and securities services businesses, which have important linkages to our other businesses and clients.”

Investor Contact:	Julia Bates	Media Contact:   Joe Evangelisti
	(212) 270-7318	(212) 270-7438

JPMorgan Chase & Co.
News Release

In the discussion of the business segments below, information is presented on a managed basis. Managed basis starts with GAAP results and includes the following adjustments: for Card Services, the impact of credit card securitization is excluded; and for each line of business and the firm as a whole, net revenue is shown on a tax-equivalent basis. For more information about managed basis, as well as other non-GAAP financial measures used by management to evaluate the performance of each line of business, see Notes 1 and 2 (page 13).

The following discussion compares the first quarter of 2006 with the first quarter of 2005 unless otherwise noted.

INVESTMENT BANK (IB)

Results for IB				4Q05			1Q05
($ millions)	1Q06	4Q05	1Q05		$ O/(U)	O/(U) %		$ O/(U)	O/(U) %
Net Revenue	$4,699	$3,195	$4,187		$1,504	47%		$512	12%
Provision for Credit Losses	183	(83)	(366)		266	NM		549	NM
Noninterest Expense	3,191	2,163	2,527		1,028	48		664	26
Net Income	$850	$667	$1,328		$183	27%		($478)	(36%)

Discussion of Results:
Net income of $850 million was driven by record quarterly revenues of $4.7 billion. Net income declined 36% compared with the prior year due to an increase in the provision for credit losses related to higher loan balances, incremental expense from the adoption of SFAS 123R and higher performance-based compensation. Net income was up 27% from the prior quarter reflecting significantly higher net revenues offset primarily by higher performance-based compensation, an increase in the provision for credit losses due to higher loan balances and incremental expense from the adoption of SFAS 123R.

Net revenue was a record $4.7 billion, up by $512 million, or 12%, compared with the prior year, and up 47% from the prior quarter. Investment banking fees of $1.2 billion were the highest since 2000, up 19% from the prior year. Advisory fees of $389 million, up 48% from last year, were also the highest since 2000. Debt underwriting fees of $569 million were up 18% from the prior year, driven by record loan syndication fees offset partially by lower bond underwriting fees. Equity underwriting fees of $212 million were down 11% from the prior year, reflecting lower market share. Fixed Income Markets revenue of $2.0 billion was down 13% from the prior year due to weaker performance in commodities and rates markets, partially offset by stronger results in emerging markets, currencies and credit markets. Equity Markets produced record revenues of $1.2 billion in the quarter driven by record trading and strong commissions across all regions. Credit Portfolio revenues of $321 million were down 8% from the prior year.

The provision for credit losses was $183 million, as compared with a benefit of $366 million in the prior year and an $83 million benefit in the prior quarter. The current quarter’s provision reflects growth in loan balances and stable credit quality.

Noninterest expense was $3.2 billion, up 26% from the prior year. Excluding incremental expense of $256 million from the adoption of SFAS 123R, expenses were up by $408 million, or 16%, from the prior year. The increase was primarily due to higher incentive compensation related to improved performance, and an increase in the compensation expense to total net revenue ratio, as well as continued investments in strategic initiatives.

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JPMorgan Chase & Co.
News Release

Highlights Include:

• Ranked #1 in Global Syndicated Loans, #2 in Global Long-Term Debt, #2 in Global Debt, Equity and Equity-Related and #3 in Global Announced M&A, year-to-date March 31, 2006, according to Thomson Financial.

• Moved up to #5 from #10 in 2005 in Global Asset-Backed Securities and retained our #1 position in U.S. Commercial Mortgage-Backed Securities, year-to-date March 31, 2006, according to Thomson Financial.

• Average loans retained of $53.7 billion were up by $5.5 billion from the prior quarter.

• Allowance for loan losses to average loans was 2.08% for the current quarter; nonperforming assets were $484 million, down 54% from the prior year and down 25% from the prior quarter.

• Return on Equity was 17%.

• Announced strategic alliance with Fidelity Investments to be the exclusive provider of new issue equity and primary provider of fixed-income products to Fidelity’s brokerage clients and retail customers.

RETAIL FINANCIAL SERVICES (RFS)

Results for RFS							4Q05					1Q05
($ millions)	1Q06		4Q05		1Q05			$ O/(U)		O/(U) %			$ O/(U)		O/(U) %
Net Revenue		$3,763		$3,594		$3,847			$169		5%			($84)		(2)%
Provision for Credit Losses		85		158		94			(73)		(46)			(9)		(10)
Noninterest Expense		2,238		2,141		2,162			97		5			76		4
Net Income		$881		$803		$988			$78		10%			($107)		(11)%

Discussion of Results:
Net income of $881 million was down by $107 million, or 11%, from the prior year. Current and prior period results included charges to transfer automobile loans to held-for-sale and prior-year results also included a charge for the termination of an Education Finance joint venture and a gain on the sale of a recreational vehicle loan portfolio. Excluding all of these items, net income declined by $131 million or 13%. The decrease reflected weakness in Mortgage Banking and continued spread compression on deposits and loans in Regional Banking, as well as continued investment in the retail distribution network. These declines were offset partially by deposit and loan balance growth in Regional Banking and continued favorable credit quality in all loan portfolios.

Net revenue of $3.8 billion was down by $84 million, or 2%, from the prior year. Net interest income of $2.6 billion declined by $91 million, or 3%, reflecting narrower spreads on deposits and loans in Regional Banking as well as reduced balances in the auto loan and lease portfolios. These decreases were offset partially by increased deposit balances and higher levels of home equity loans. Noninterest revenue of $1.2 billion was up by $7 million, or 1%, driven by higher automobile operating lease income and increased fee income on deposit-related products. These increases were offset by lower Mortgage Banking production and servicing income. Current quarter results also included a $50 million write-down on $1.3 billion of automobile loans transferred to held-for-sale, compared with an $88 million write-down last year on $2.7 billon of auto loans transferred to held-for-sale.

The provision for credit losses totaled $85 million, down by $9 million from the prior year. Credit quality continued to be favorable across all businesses.

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JPMorgan Chase & Co.
News Release

Noninterest expense of $2.2 billion was up by $76 million, or 4%, as a result of ongoing investments in the retail distribution network, higher depreciation expense on owned automobiles acquired under operating leases, and incremental expense of $17 million from the adoption of SFAS 123R. These increases were offset in part by operating and merger-related efficiencies and the absence of a $40 million charge related to the dissolution of an Education Finance joint venture.

Regional Banking net income totaled $757 million, down by $29 million, or 4%, from the prior year. Net revenue of $3.0 billion increased by $3 million, essentially flat from the prior year. Results reflected higher deposit balances, growth in home equity and mortgage loan balances, and increased deposit-related fees. These increases were offset by narrower spreads on deposits and loans, and lower investment sales revenue. Credit quality remained favorable for all loan portfolios. Expenses of $1.7 billion were up by $33 million, or 2%, from the prior year. Prior-year results included a $40 million charge to terminate an Education Finance joint venture. Excluding this item, expenses increased as investments in the retail distribution network and incremental expense from the adoption of SFAS 123R offset merger savings and other operating efficiencies. Compared with the prior quarter, net income increased 13%, in part due to the seasonal tax-refund anticipation business.

Highlights Include:

• Announced agreement to acquire The Bank of New York’s consumer and small business banking franchises— which will add 338 branches, 400 ATMs, $12.9 billion of deposits and $4.9 billion of loans.

• Completed the purchase of Collegiate Funding Services on March 1, 2006, adding $6 billion in education loans, providing servicing capability and entry into the Federal Family Education Loan Program consolidation market.

• Checking accounts grew by 143,000, to 8.9 million, during the quarter.

• Average total deposits increased to $185 billion, up 6% from the prior year and up 4% from the prior quarter.

• Branch sales of credit cards increased by 61% from the prior year and 32% from the prior quarter.

• Overhead ratio (excluding amortization of core deposit intangible) increased to 54% from 52% in the prior year and remained flat from the prior quarter.

• Number of branches increased to 2,638, up by 121 from the prior year and down 3 from the prior quarter.

• Average mortgage loans retained of $44.6 billion increased 3%; period-end mortgage loans were $47.0 billion. Average home equity loans retained of $74.1 billion increased by 12%; period-end home equity loans were $75.3 billion.

• Home equity loan originations of $11.7 billion were down 2% from the prior year and down 3% from the prior quarter.

• Net charge-off rate was 0.21%, down from 0.22% in the prior year.

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JPMorgan Chase & Co.
News Release

Mortgage Banking net income was $39 million, down from net income of $139 million in the prior year. Production revenue decreased, reflecting lower gain-on-sale margins on higher mortgage originations. Servicing income of $169 million was down from $283 million in the prior year. The results were primarily driven by lower MSR risk management results, partially offset by increased servicing revenue due to increased levels of third-party loans serviced. Noninterest expense was $324 million, up by $25 million, reflecting increased mortgage originations. During the quarter, the firm implemented SFAS 156, Accounting for Servicing of Financial Assets and, effective January 1, 2006, the MSR asset was recorded on a fair value basis consistent with the associated derivative and other instruments.

Highlights Include:

• Mortgage loan originations of $28.9 billion were up 8% from the prior year and down 9% from the prior quarter.

• Total third-party mortgage loans serviced were $484 billion, an increase of $49 billion, or 11% from the prior year.

Auto Finance net income of $85 million was up by $22 million, or 35%, from the prior year. Current-period results included a net $45 million loss related to auto loans transferred to held-for-sale. Prior-year results included a net $78 million loss associated with auto loans transferred to held-for-sale and a $34 million net benefit from the sale of a recreational vehicle loan portfolio. Excluding these items, the benefit of wider loan spreads and lower credit costs offset the decline in loan and lease balances. After adjusting for the impact of increased depreciation expense on owned automobiles subject to operating leases, expenses declined reflecting lower production volumes and operating efficiencies.

Highlights Include:

• Average loan receivables were $41.2 billion, down by $7.6 billion, or 16%, from the prior year and down by $1.4 billion, or 3%, from the prior quarter.

• Average lease-related assets of $5.0 billion declined by $2.7 billion, or 35%.

• The net charge-off rate was 0.46% compared with 0.60% in the prior year.

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JPMorgan Chase & Co.
News Release

CARD SERVICES (CS)

Results for CS(a)							4Q05					1Q05
($ millions)	1Q06		4Q05		1Q05			$ O/(U)		O/(U) %			$ O/(U)		O/(U) %
Net Revenue		$3,685		$3,721		$3,779			($36)		(1%)			($94)		(2%)
Provision for Credit Losses		1,016		2,236		1,636			(1,220)		(55)			(620)		(38)
Noninterest Expense		1,243		1,017		1,313			226		22			(70)		(5)
Net Income		$901		$302		$522			$599		198%			$379		73%

(a) As a result of the integration of the Chase Merchant Services and Paymentech merchant processing businesses, beginning in the fourth quarter of 2005, net revenue, noninterest expense and pre-tax income have been reduced to reflect the deconsolidation of Paymentech (no periods prior to the fourth quarter of 2005 have been adjusted to reflect the deconsolidation). The deconsolidation of Paymentech has no impact on net income.

Discussion of Results:
Net income of $901 million was up by $379 million, or 73%, from the prior year. The results for the quarter reflected a pre-tax benefit of $550 million, which is based on an estimate by management of the impact of lower bankruptcies following the new bankruptcy legislation that became effective in the fourth-quarter of 2005. Results were also driven by lower credit losses (excluding the impact from the bankruptcy legislation), merger savings and higher loan balances, including the acquisition of the Sears Canada credit card business. These benefits were offset partially by narrower spreads on loans and higher marketing expense.

Net revenue was $3.7 billion, down by $94 million, or 2%, from the prior year. After adjusting the prior-year results for the impact of the deconsolidation of Paymentech, revenue was up 1%. Net interest income was $3.0 billion, flat to the prior year. Higher loan balances, including the acquisition of the Sears Canada credit card business, and increased revenues due to the decline in bankruptcy-related revenue reversals, were offset by narrower loan spreads. Net interest income to average managed receivables was 8.85% down from 9.13% in the prior year, but up from 8.14% in the prior quarter. Noninterest revenue of $672 million was down by $100 million, or 13%. After adjusting the prior-year results for the impact of the deconsolidation of Paymentech, noninterest revenue was up 5% due to higher charge volume, resulting in increased interchange income, partially offset by higher volume-driven payments to partners and higher expense related to reward programs.

Average managed loans of $138.0 billion increased by $4.4 billion, or 3%, from the prior year, but decreased $0.9 billion from the prior quarter. The current quarter included an average of $2.2 billion, and the prior quarter included an average of $1.2 billion, of loans from the Sears Canada acquisition. End-of-period managed loans of $134.3 billion increased by $0.9 billion, or 1%, from the prior year (including $2.0 billion of loans from the Sears Canada acquisition) and decreased by $8.0 billion from the prior quarter. The decline from the prior quarter was caused by higher-than-normal customer payment rates, which management believes may be partially related to the recently implemented new minimum payment rules.

The provision for credit losses was $1.0 billion, down by $620 million, or 38%, from the prior year. This decrease was due primarily to lower bankruptcy-related net charge-offs, which based on an estimate by management, had an impact of $475 million. The managed net charge-off rate for the quarter decreased to 2.99%, down from 4.83% in the prior year and 6.39% in the prior quarter. The 30-day managed delinquency rate was 3.10%, down from 3.54% in the prior year, and up from 2.79% in the prior quarter. These credit statistics reflect the impact of the new bankruptcy legislation. In addition, management believes the underlying credit quality of the managed loan portfolio remains strong.

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JPMorgan Chase & Co.
News Release

Noninterest expense of $1.2 billion decreased by $70 million, or 5%. After adjusting the prior year’s results for the impact of the deconsolidation of Paymentech, expenses were up 5%. The increase was due to increased marketing activity, higher fraud-related losses and the acquisition of the Sears Canada credit card business, largely offset by merger savings.

Highlights Include:

• Agreement announced to acquire Kohl’s private label portfolio with $1.5 billion of receivables and 13 million accounts.

• Pre-tax income to average managed loans (ROO) was 4.2%; excluding the pre-tax benefit, estimated by management to be $550 million, ROO would have been 2.6%.

• Net interest income as a percentage of average managed loans was 8.85%, down from 9.13% in the prior year, and up from 8.14% in the prior quarter.

• Average managed loans of $138.0 billion increased by $4.4 billion, or 3%, from the prior year but decreased $0.9 billion from the prior quarter. The current quarter included $2.2 billion, and the prior quarter included $1.2 billion of average loans from the Sears Canada acquisition.

• Total end-of-period managed loans of $134.3 billion increased by $0.9 billion, or 1%, from the prior year (including $2.0 billion of loans from the Sears Canada acquisition) and decreased by $8.0 billion from the prior quarter.

• Net accounts opened during the first quarter were 2.7 million.

• Charge volume of $74.3 billion increased by $4.0 billion, or 6%, from the prior year.

• Merchant processing volume of $147.7 billion increased by $22.6 billion, or 18%, and total transactions of 4.1 billion increased by 671 million, or 19%, from the prior year.

• Renewed relationships included University of Tennessee, Oregon State University Alumni Association, USA Hockey and New Jersey Nets.

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JPMorgan Chase & Co.
News Release

COMMERCIAL BANKING (CB)

Results for CB							4Q05				1Q05
($millions)	1Q06		4Q05		1Q05		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		$900		$916		$827		($16)		(2%)		$73		9%
Provision for Credit Losses		7		(17)		(6)		24		NM		13		NM
Noninterest Expenses		498		476		454		22		5		44		10
Net Income		$240		$279		$231		($39)		(14%)		$9		4%

Discussion of Results:
Net income was $240 million, up by $9 million, or 4%, from the prior year and down by $39 million, or 14%, from the prior quarter. The increase from the prior year was the result of growth in net interest income offset partially by incremental expense from the adoption of SFAS 123R and an increase in provision for credit losses.

Net revenue was $900 million, up by $73 million, or 9%, from the prior year. Net interest income was $667 million, up by $67 million, or 11%, due to wider spreads and higher volumes related to liability balances and increased loan balances, partially offset by narrower loan spreads. Noninterest revenue was $233 million, up by $6 million, or 3%, from the prior year and down by $21 million, or 8%, from the prior quarter.

Each business within Commercial Banking grew revenue over the prior year. Middle Market Banking revenue was $623 million, an increase of $53 million, or 9%, primarily due to higher treasury services and investment banking revenue. Mid-Corporate Banking and Real Estate revenues increased 11% and 7%, respectively, due primarily to an increase in treasury services revenue.

Provision for credit losses was $7 million, compared with a net benefit of $6 million in the prior year.

Noninterest expense was $498 million, up by $44 million, or 10%, from the prior year. The increase was due primarily to incremental expense of $29 million from the adoption of SFAS 123R.

Highlights Include:

• Agreement announced to acquire The Bank of New York’s Middle Market business, which will add 2,000 clients, $2.9 billion of loans and $1.6 billion in deposits.

• Average loan balances of $50.8 billion were up by $4.2 billion, or 9%, from the prior year due to strong growth across all businesses. Compared with the prior quarter, loans were up $0.8 billion, or 2%.

• Average liability balances of $70.8 billion were up by $5.4 billion, or 8%, from the prior year, and up by $1.9 billion, or 3%, from the prior quarter.

• Nonperforming loans declined by $231 million, or 53%, from the prior year, and declined $70 million, or 26%, from the prior quarter. The allowance for loan losses to average loans was 2.78%, compared with 2.82% in the prior year.

• Overhead ratio of 55% was flat compared with the prior year, and up from 52% in the prior quarter.

• Gross Investment Banking revenue was $114 million, up $7 million, or 7%, from the prior year.

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JPMorgan Chase & Co.
News Release

TREASURY & SECURITIES SERVICES (TSS)

Results for TSS							4Q05				1Q05
($ millions)	1Q06		4Q05		1Q05		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		$1,677		$1,628		$1,498		$49		3%		$179		12%
Noninterest Expense		1,158		1,105		1,067		53		5		91		9
Net Income		$312		$307		$254		$5		2%		$58		23%

Discussion of Results:
Net income was a record $312 million, up by $58 million, or 23%. Earnings benefited from higher revenues due to wider spreads on average liability balances and business growth, partially offset by higher compensation expense resulting from business growth and incremental expense from the adoption of SFAS 123R.

Net revenue of $1.7 billion was up by $179 million, or 12%. Noninterest revenue was $1.1 billion, up by $122 million, or 12%. The improvement was due to an increase in assets under custody to $11.7 trillion, which was driven by market value appreciation and new business. Also contributing to the improvement was the acquisition of Vastera and growth in Fund Services, foreign exchange and wholesale card, all of which were driven by a combination of increased usage by existing clients and new business. Net interest income was $572 million, up by $57 million, primarily resulting from wider spreads on higher average liability balances, which increased 22% to $196 billion.

Treasury Services net revenue of $693 million grew by $59 million, or 9%. Worldwide Securities Services net revenue of $984 million grew by $120 million, or 14%. TSS firmwide net revenue, which includes Treasury Services net revenue recorded in other lines of business, grew to $2.3 billion, up $237 million, or 12%. Treasury Services firmwide net revenue grew to $1.3 billion, up $117 million, or 10%.

Credit reimbursement to the Investment Bank was $30 million, a decrease of $8 million. TSS is charged a credit reimbursement related to certain exposures managed within the Investment Bank credit portfolio on behalf of clients shared with TSS.

Noninterest expense was $1.2 billion, up by $91 million, or 9%. The increase was due to higher compensation expense related to business growth, incremental expense of $25 million from the adoption of SFAS 123R, and the acquisition of Vastera.

     Highlights Include:

• Completed the purchase of the middle and back office operations of Paloma Partners Management Company, a privately owned investment fund management group, on March 1, 2006.

• Announced the sale of select Corporate Trust businesses to The Bank of New York.

• Pre-tax margin⁽²⁾ was 29%, up from 26% in the prior year.

• Average liability balances were $196 billion, an increase of 22%.

• Assets under custody increased to $11.7 trillion, up 14% (excluding trust assets under custody added in the 3^rd quarter of 2005).

• U.S. dollar ACH transactions originated increased 20%, and U.S. dollar clearing volumes increased 16%.

9

Exhibit 99.1

JPMorgan Chase & Co.
News Release

ASSET & WEALTH MANAGEMENT (AWM)

Results for AWM							4Q05				1Q05
($ millions)	1Q06		4Q05		1Q05		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		$1,584		$1,511		$1,361		$73		5%		$223		16%
Provision for Credit Losses		(7)		(10)		(7)		3		30		--		--
Noninterest Expense		1,098		1,033		934		65		6		164		18
Net Income		$313		$342		$276		($29)		(8%)		$37		13%

Discussion of Results:
Net income was $313 million, up by $37 million, or 13%, from the prior year. Performance was driven by increased revenues offset partially by a higher compensation expense related to incremental expense from the adoption of SFAS 123R and higher performance-based compensation.

Net revenue was $1.6 billion, up by $223 million, or 16%, from the prior year. Noninterest revenue, principally fees and commissions, of $1.3 billion was up by $259 million, or 24%. This increase was due primarily to net asset inflows, mainly in equity-related and liquidity products; global equity market appreciation; and higher placement and performance fees. Net interest income was $246 million, down by $36 million, or 13%, from the prior year, primarily due to narrower deposit spreads and the sale of BrownCo in the fourth-quarter of 2005, partially offset by higher deposit balances.

Retail client segment revenue grew 28%, to $442 million, primarily due to net asset inflows, partially offset by the sale of BrownCo. Private Bank client segment revenue grew 5% from the prior year to $441 million, due to increased placement activity and management fees, and higher deposit balances, partially offset by narrower deposit spreads. Institutional client segment revenue grew 35%, to $435 million, due to net asset inflows and higher performance fees. Private Client Services client segment revenue decreased 2%, to $266 million, due to narrower deposit and loan spreads, partially offset by higher deposit and loan balances.

Assets under Supervision were $1.2 trillion, up 10%, or $105 billion, from the prior year, including a $33 billion reduction due to the sale of BrownCo. Assets under Management were $873 billion, up 11%, or $83 billion, from the prior year. The increase was primarily the result of market appreciation and net asset inflows driven by retail flows from third-party distribution, primarily in equity-related products, and institutional flows in liquidity products. Custody, brokerage, administration and deposit balances were $324 billion, up $22 billion, after reflecting a $33 billion reduction from the sale of BrownCo.

Provision for credit losses was a $7 million benefit, flat from the prior year.

Noninterest expense of $1.1 billion was up by $164 million, or 18%, from the prior year. This increase was due to incremental expense of $71 million from the adoption of SFAS 123R, and higher performance-based compensation, partially offset by the sale of BrownCo.

10

JPMorgan Chase & Co.
News Release

Highlights Include:

• Pre-tax margin⁽²⁾ was 31%, down from 32% in the prior year.

• Assets under Supervision were $1.2 trillion, up 10%, or $105 billion, from the prior year, including a $33 billion reduction due to the sale of BrownCo.

• Assets under Management were $873 billion, up 11%, or $83 billion, from the prior year.

• Average loans of $24.5 billion were down 7% from the prior year, including a $3.0 billion reduction in loans as a result of the sale of BrownCo.

• Average deposits of $48.1 billion were up 14% from the prior year including a $3.5 billion reduction in deposits as a result of the sale of BrownCo.

CORPORATE

Results for Corporate							4Q05				1Q05
($ millions)	1Q06		4Q05		1Q05		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		($406)		$390		($759)		($796)		NM		$353		47%
Provision for Credit Losses		--		--		(4)		--		--		4		NM
Noninterest Expense		326		600		1,480		(274)		(46)		(1,154)		(78)
Net Income (Loss)		($416)		($2)		($1,335)		($414)		NM		$919		69%

Discussion of Results:
Net loss was $416 million compared with a net loss of $1.3 billion in the prior year. In comparison to the prior year, Private Equity earnings were $103 million, down from $437 million; Treasury net loss was $270 million compared with a net loss of $828 million; and the net loss in Other Corporate was $249 million compared with a net loss of $944 million.

Net revenue was negative $406 million compared with negative $759 million in the prior year. Net interest income was negative $545 million compared with negative $673 million in the prior year. Treasury was the primary driver of the improvement, with net interest income of negative $278 million compared with negative $409 million in the prior year. The benefit was due primarily to an improvement in Treasury’s net interest spread, offset partially by a reduction in the level of the available-for-sale securities portfolio. Noninterest revenue was $139 million compared with negative $86 million, reflecting lower Treasury securities portfolio losses of $158 million compared with losses of $902 million in the prior year. This increase was offset partially by lower Private Equity gains of $237 million compared with gains of $789 million in the prior year.

Noninterest expense was $326 million, down $1.2 billion from $1.5 billion in the prior year. Excluding in the current quarter, $71 million of merger costs and incremental expense of $57 million from the adoption of SFAS 123R, and excluding in the prior year a material litigation charge of $900 million, primarily related to WorldCom, and $145 million of merger costs, noninterest expense would have been down $237 million. The decrease in expense was due to merger-related savings and other efficiencies.

     Highlights Include:

• Private Equity portfolio was $6.3 billion, down from $7.2 billion in the prior year and up from $6.2 billion in the prior quarter. The portfolio represented 9.7% of stockholders’ equity less goodwill, down from 11.6% in the prior year and unchanged from the prior quarter.

11

JPMorgan Chase & Co.
News Release

JPMORGAN CHASE (JPM)

Results for JPM							4Q05		1Q05
($ millions)	1Q06		4Q05		1Q05		$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue		$15,902		$14,955		$14,740	$947	6%	$1,162	8%
Provision for Credit Losses		1,280		2,286		1,344	(1,006)	(44)	(64)	(5)
Noninterest Expense		9,752		8,535		9,937	1,217	14	(185)	(2)
Net Income		$3,081		$2,698		$2,264	$383	14%	$817	36%

Discussion of Results:
Net income was $3.1 billion, up by $817 million, or 36%, from the prior year. The increase in earnings was driven by higher revenue, lower expenses and a decrease in the provision for credit losses.

Net revenue was $15.9 billion, up by $1.2 billion, or 8%, from the prior year. Noninterest revenue of $9.2 billion was up by $1.5 billion, or 19%, primarily due to lower Treasury securities portfolio losses; increased trading revenue; higher asset management, administration and commissions revenues and higher investment banking fees. Partially offsetting this growth were lower private equity gains, the deconsolidation of Paymentech and lower Mortgage Banking production and servicing income. Net interest income was $6.7 billion, down by $313 million, or 4%, due to narrower spreads on wholesale loans, trading assets, consumer loans and consumer deposits. This decrease was offset partially by an improvement in Treasury’s net interest spread and in the spread on wholesale liabilities, as well as higher balances related to wholesale loans, consumer deposits and consumer loans.

The provision for credit losses was $1.3 billion, down by $64 million, or 5%, from the prior year. The wholesale provision for credit losses was $179 million for the quarter compared with a benefit of $386 million in the prior year, primarily due to loan growth in the Investment Bank. The wholesale loan net recovery rate was 0.06% for the quarter, an improvement from a net recovery rate of 0.03% in the prior year. The total consumer managed provision for credit losses was $1.1 billion, $629 million lower than the prior year, primarily due to lower bankruptcy-related net charge-offs in Card Services. The firm had total nonperforming assets of $2.3 billion at March 31, 2006, down $601 million, or 20%, from the prior-year level of $2.9 billion.

Noninterest expense was $9.8 billion, down by $185 million, or 2%, from the prior year. Excluding in the current year, incremental expense of $459 million from the adoption of SFAS 123R and $71 million of merger costs, and excluding in the prior year, a material litigation charge of $900 million, primarily related to WorldCom, and $145 million of merger costs, noninterest expense would have been up $330 million. The increase was driven by a higher performance-based compensation offset partially by improved operating efficiencies.

Highlights Include:

• Tier 1 capital ratio was 8.5% at March 31, 2006 (estimated), 8.5% at December 31, 2005, and 8.6% at March 31, 2005.

• During the quarter, $1.3 billion of common stock was repurchased, reflecting 31.8 million shares purchased at an average price of $40.54 per share.

• On March 21, 2006, the Board of Directors authorized a new $8 billion share repurchase program, which replaced the previous $6 billion authorization. As of March 31, 2006, a total of $143 million had been repurchased under the share repurchase program.

• Headcount of 170,787 increased by 1,940 since December 31, 2005.

12

JPMorgan Chase & Co.
News Release

Merger and other financial information

• Merger savings and cost: For the quarter ended March 31, 2006, approximately $580 million of merger savings have been realized, which is an annualized rate of $2.3 billion. Management continues to estimate annual merger savings of approximately $3.0 billion. Management estimates that annualized savings will be $2.8 billion by the end of 2006. Merger costs of $71 million were expensed during the first quarter of 2006, bringing the total amount expensed to $2.2 billion since the merger announcement. Management continues to estimate remaining merger costs of $800 million to $1.3 billion, which are expected to be expensed during the remainder of 2006 and 2007.

• FASB Statement No. 123R (“Share-Based Payment”): JPMorgan Chase adopted Statement of Financial Accounting Standards No. 123 (Revised 2004), (“Share-Based Payment”) as of January 1, 2006 under the modified prospective method. SFAS 123R requires that stock compensation granted to retirement-eligible employees be fully expensed at, or prior to, the time of grant rather than amortized over the vesting period. Accordingly, as a result of the adoption of SFAS 123R this quarter, the firm expensed the full amount of the compensation expense associated with grants of restricted stock made in January 2006 to retirement-eligible employees. In addition, during the first quarter of 2006, the firm began to accrue the estimated cost of grants expected to be awarded in January 2007 to retirement-eligible employees. Awards granted to retirement-eligible employees prior to January 1, 2006 have not been accelerated and will continue to be amortized over the original vesting periods. The chart below provides, for each business segment, the incremental expense for the first quarter of 2006 and the estimated incremental expense for the remaining quarters of 2006, related to the adoption of SFAS 123R. The amounts set forth below are non-cash charges and represent accelerated recognition of costs that would have been incurred in future periods.

		Estimated
	Incremental	Incremental Expense
	Expense	per Quarter
	1Q06	2Q06 - 4Q06
Investment Bank	$256	$70
RFS	17	5
Card Services	4	0
Commercial Banking	29	5
TSS	25	5
AWM	71	15
Corporate	57	10
Total	$459	$110

Notes:

1.

In addition to analyzing the firm’s results on a reported basis, management analyzes the firm’s and the lines of business results on a managed basis, which is a non-GAAP financial measure. The firm’s definition of managed basis starts with the reported U.S. GAAP results. Effective January 1, 2006, the firm made certain modifications to its financial disclosures. These changes are described in a Current Report on Form 8-K, furnished on April 11, 2006, to which reference is hereby made. Accordingly, effective January 1, 2006, managed basis includes the following adjustments: First, for Card Services, managed basis excludes the impact of credit card securitizations on total net revenue, the provision for credit losses, net charge-offs and loan receivables. JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance and overall financial performance of the underlying credit card loans, both sold and not sold: as the same borrower is continuing to use the credit card for ongoing charges, a borrower’s credit performance will affect both the loan receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed loan receivables, JPMorgan Chase treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire managed credit card portfolio. Second, managed revenue (noninterest revenue and net interest income) for each of the segments and the firm is presented on a tax-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits are presented in the managed results on a basis comparable to taxable securities and investments. This methodology allows management to assess the comparability of revenues arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense. See page 6 of JPMorgan Chase’s Earnings Release Financial Supplement (first quarter 2006) for a reconciliation of JPMorgan Chase’s income statement from a reported to managed basis.

2.

Pre-tax margin represents net income before income taxes divided by total net revenue, which is, in management’s view, a comprehensive measure of pre-tax performance derived by measuring earnings after all costs are taken into consideration. It is, therefore, another basis by which management evaluates the performance of TSS and AWM against that of competitors.

13

JPMorgan Chase & Co.
News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.3 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com.

JPMorgan Chase will host a conference call today at 9:00 a.m. (Eastern time) to review first-quarter financial results. Investors can call (800) 810-0924 (domestic) / (913) 981-4900 (international) or listen via live audio webcast. The live audio webcast and presentation slides will be available on www.jpmorganchase.com under Investor Relations, Investor Presentations. A replay of the conference call will be available beginning at 1:00 p.m. (Eastern time) on April 19, 2006, through midnight, Friday April 28, 2006 (Eastern time), at (888) 203-1112 (domestic) or (719) 457-0820 (international); access code 2143540. The replay also will be available on www.jpmorganchase.com. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available on the JPMorgan Chase Internet site www.jpmorganchase.com.

This earnings release 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 results to differ materially from those described in the forward-looking statements can be found in the firm’s Annual Report on Form 10-K for the year ended December 31, 2005, filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

14

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

	QUARTERLY TRENDS
										1Q06 Change
	1Q06			4Q05			1Q05			4Q05			1Q05
SELECTED INCOME STATEMENT DATA
Total Net Revenue	$	15,236		$	13,678		$	13,647			11	%		12	%
Provision for Credit Losses		831			1,224			427			(32	)		95
Noninterest Expense		9,752			8,535			9,937			14			(2	)
Net Income		3,081			2,698			2,264			14			36
Per Common Share:
Net Income Per Share-Basic	$	0.89		$	0.78		$	0.64			14			39
Net Income Per Share-Diluted		0.86			0.76			0.63			13			37
Cash Dividends Declared Per Share		0.34			0.34			0.34			-			-
Book Value Per Share		31.19			30.71			29.78			2			5
Closing Share Price		41.64			39.69			34.60			5			20
Common Shares Outstanding:
Weighted-Average Diluted Shares Outstanding		3,570.8			3,563.9			3,569.8			-			-
Common Shares Outstanding at Period-end		3,473.0			3,486.7			3,525.3			-			(1	)
SELECTED RATIOS:
Return on Common Equity (“ROE”) (a)		12	%		10	%		9	%
Return on Equity-Goodwill (“ROE-GW”) (a) (b)		20			17			15
Return on Assets (“ROA”) (a) (c)		1.00			0.89			0.79
Tier 1 Capital Ratio		8.5	(g)		8.5			8.6
Total Capital Ratio		12.1	(g)		12.0			11.9
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,273,282		$	1,198,942		$	1,178,305			6			8
Wholesale Loans		164,799			150,111			137,401			10			20
Consumer Loans		267,282			269,037			265,268			(1	)		1
Deposits		584,465			554,991			531,379			5			10
Common Stockholders’ Equity		108,337			107,072			105,001			1			3
Headcount		170,787			168,847			164,381			1			4
LINE OF BUSINESS EARNINGS
Investment Bank	$	850		$	667		$	1,328			27			(36	)
Retail Financial Services		881			803			988			10			(11	)
Card Services		901			302			522			198			73
Commercial Banking		240			279			231			(14	)		4
Treasury & Securities Services		312			307			254			2			23
Asset & Wealth Management		313			342			276			(8	)		13
Corporate (d)		(416	)		(2	)		(1,335	)	NM				69
Net Income	$	3,081		$	2,698		$	2,264			14			36
EXCLUDING IMPACT OF MERGER COSTS (e)
Net Income	$	3,081		$	2,698		$	2,264			14			36
Less Merger Costs (after-tax) (f)		44			48			90			(8	)		(51	)
Earnings Excluding Merger Costs	$	3,125		$	2,746		$	2,354			14			33

(a)	Based on annualized amounts.
(b)	Net income applicable to common stock divided by Total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating performance of the Firm. The Firm utilizes this measure to facilitate comparisons to competitors.
(c)	Represents Net income divided by Total average assets.
(d)	Includes the after-tax impact of material litigation reserve charges and Merger costs.
(e)	Net Income excluding the impact of Merger costs is a non-GAAP financial measure. JPMorgan Chase believes Merger costs are not part of its normal business operations, and therefore not indicative of trends as they do not provide meaningful comparisons with other periods.
(f)	Merger costs are included within Corporate.
(g)	Estimated

15

EX-99.2

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2006

JPMORGAN CHASE & CO.
TABLE OF CONTENTS

	Page
Consolidated Results
Consolidated Financial Highlights		2
Statements of Income		3
Consolidated Balance Sheets		4
Condensed Average Balance Sheets and Annualized Yields		5
Reconciliation from Reported to Managed Summary		6
Business Detail
Line of Business Financial Highlights — Managed Basis		7
Investment Bank		8
Retail Financial Services		10
Card Services — Managed Basis		14
Commercial Banking		17
Treasury & Securities Services		19
Asset & Wealth Management		21
Corporate		24
Credit-Related Information		26
Supplemental Detail
Capital		31
Glossary of Terms		32

Effective January 1, 2006, the Firm modified certain of its financial disclosures. These changes are reflected in this earnings release financial supplement for the first quarter of 2006. The changes are intended to reflect more closely the manner in which JPMorgan Chase’s business segments are managed effective with the first quarter of 2006 and to provide improved comparability of the Firm’s results with that of its competitors. For additional details regarding these enhancements, refer to the Form 8-K furnished to the Securities and Exchange Commission on April 11, 2006 and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

Page 1

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
SELECTED INCOME STATEMENT DATA
Total Net Revenue	$	15,236		$	13,678		$	14,465		$	12,743		$	13,647			11	%		12	%
Provision for Credit Losses (a)		831			1,224			1,245			587			427			(32	)		95
Noninterest Expense		9,752			8,535			9,464			10,899			9,937			14			(2	)
Net Income		3,081			2,698			2,527			994			2,264			14			36
Per Common Share:
Net Income Per Share — Basic	$	0.89		$	0.78		$	0.72		$	0.28		$	0.64			14			39
Net Income Per Share — Diluted		0.86			0.76			0.71			0.28			0.63			13			37
Cash Dividends Declared Per Share		0.34			0.34			0.34			0.34			0.34			-			-
Book Value Per Share		31.19			30.71			30.26			29.95			29.78			2			5
Closing Share Price		41.64			39.69			33.93			35.32			34.60			5			20
Common Shares Outstanding:
Weighted-Average Diluted Shares Outstanding		3,570.8			3,563.9			3,547.7			3,548.3			3,569.8			-			-
Common Shares Outstanding at Period-end		3,473.0			3,486.7			3,503.4			3,514.0			3,525.3			-			(1	)
SELECTED RATIOS:
Return on Common Equity (“ROE”) (b)		12	%		10	%		9	%		4	%		9	%
Return on Equity-Goodwill (“ROE-GW”) (b) (c)		20			17			16			6			15
Return on Assets (“ROA”) (b) (d)		1.00			0.89			0.84			0.34			0.79
Tier 1 Capital Ratio		8.5	(h)		8.5			8.2			8.2			8.6
Total Capital Ratio		12.1	(h)		12.0			11.3			11.3			11.9
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,273,282		$	1,198,942		$	1,203,033		$	1,171,283		$	1,178,305			6			8
Wholesale Loans		164,799			150,111			151,591			149,588			137,401			10			20
Consumer Loans		267,282			269,037			268,913			266,437			265,268			(1	)		1
Deposits		584,465			554,991			535,123			534,640			531,379			5			10
Common Stockholders’ Equity		108,337			107,072			105,996			105,246			105,001			1			3
Headcount		170,787			168,847			168,955			168,708			164,381			1			4
LINE OF BUSINESS EARNINGS
Investment Bank	$	850		$	667		$	1,068		$	611		$	1,328			27			(36	)
Retail Financial Services		881			803			656			980			988			10			(11	)
Card Services		901			302			541			542			522			198			73
Commercial Banking		240			279			284			157			231			(14	)		4
Treasury & Securities Services		312			307			277			242			254			2			23
Asset & Wealth Management		313			342			315			283			276			(8	)		13
Corporate (e)		(416	)		(2	)		(614	)		(1,821	)		(1,335	)	NM				69
Net Income	$	3,081		$	2,698		$	2,527		$	994		$	2,264			14			36
EXCLUDING IMPACT OF MERGER COSTS (f)
Net Income	$	3,081		$	2,698		$	2,527		$	994		$	2,264			14			36
Less Merger Costs (after-tax) (g)		44			48			137			173			90			(8	)		(51	)
Earnings Excluding Merger Costs	$	3,125		$	2,746		$	2,664		$	1,167		$	2,354			14			33

(a)	Third quarter 2005 includes a $400 million special provision related to Hurricane Katrina.
(b)	Based on annualized amounts.
(c)	Net income applicable to common stock divided by Total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating performance of the Firm. The Firm utilizes this measure to facilitate comparisons to competitors.
(d)	Represents Net income divided by Total average assets.
(e)	Includes the after-tax impact of material litigation reserve charges and Merger costs. See Corporate for additional details.
(f)	Net Income excluding the impact of Merger costs is a non-GAAP financial measure. JPMorgan Chase believes Merger costs are not part of its normal business operations, and therefore not indicative of trends as they do not provide meaningful comparisons with other periods.
(g)	Merger costs are included within Corporate.
(h)	Estimated

Page 2

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
REVENUE
Investment Banking Fees	$	1,169		$	1,145		$	989		$	961		$	993			2	%		18	%
Principal Transactions		2,602			1,423			2,886			724			2,636			83			(1	)
Lending & Deposit Related Fees		841			853			865			851			820			(1	)		3
Asset Management, Administration and Commissions		2,973			2,723			2,628			2,541			2,498			9			19
Securities Gains (Losses)		(116	)		(540	)		(44	)		70			(822	)		79			86
Mortgage Fees and Related Income		241			155			201			336			362			55			(33	)
Credit Card Income		1,910			1,402			1,855			1,763			1,734			36			10
Other Income		556			1,764			233			496			201			(68	)		177
Noninterest Revenue		10,176			8,925			9,613			7,742			8,422			14			21
Interest Income		13,374			12,184			11,435			10,949			10,632			10			26
Interest Expense		8,314			7,431			6,583			5,948			5,407			12			54
Net Interest Income		5,060			4,753			4,852			5,001			5,225			6			(3	)
TOTAL NET REVENUE		15,236			13,678			14,465			12,743			13,647			11			12
Provision for Credit Losses (a)		831			1,224			1,245			587			427			(32	)		95
NONINTEREST EXPENSE
Compensation Expense		5,600			4,286			5,001			4,266			4,702			31			19
Occupancy Expense		602			645			549			580			525			(7	)		15
Technology and Communications Expense		874			909			899			896			920			(4	)		(5	)
Professional & Outside Services		888			1,002			1,018			1,130			1,074			(11	)		(17	)
Marketing		519			385			512			537			483			35			7
Other Expense (b)		834			856			882			2,826			1,705			(3	)		(51	)
Amortization of Intangibles		364			375			382			385			383			(3	)		(5	)
Merger Costs		71			77			221			279			145			(8	)		(51	)
TOTAL NONINTEREST EXPENSE		9,752			8,535			9,464			10,899			9,937			14			(2	)
Income before Income Tax Expense		4,653			3,919			3,756			1,257			3,283			19			42
Income Tax Expense		1,572			1,221			1,229			263			1,019			29			54
NET INCOME	$	3,081		$	2,698		$	2,527		$	994		$	2,264			14			36
DILUTED EARNINGS PER SHARE	$	0.86		$	0.76		$	0.71		$	0.28		$	0.63			13			37
EXCLUDING IMPACT OF MERGER COSTS
Net Income	$	3,081		$	2,698		$	2,527		$	994		$	2,264			14			36
Less Merger Costs (after-tax)		44			48			137			173			90			(8	)		(51	)
Earnings Excluding Merger Costs	$	3,125		$	2,746		$	2,664		$	1,167		$	2,354			14			33
Diluted Per Share:
Net Income	$	0.86		$	0.76		$	0.71		$	0.28		$	0.63			13			37
Less Merger Costs (after-tax)		0.01			0.01			0.04			0.05			0.03			-			(67	)
Earnings Excluding Merger Costs	$	0.87		$	0.77		$	0.75		$	0.33		$	0.66			13			32
FINANCIAL RATIOS
ROE		12	%		10	%		9	%		4	%		9	%
ROE-GW		20			17			16			6			15
ROA		1.00			0.89			0.84			0.34			0.79
Effective Income Tax Rate		34			31			33			21			31
Overhead Ratio		64			62			65			86			73

(a)

Third quarter 2005 includes a $400 million special provision related to Hurricane Katrina allocated as follows: Retail Financial Services $250 million, Card Services $100 million, Commercial Banking $35 million, Asset & Wealth Management $3 million and Corporate $12 million.

(b)

Includes litigation reserve charges of $1,872 million in the second quarter of 2005 and $900 million in the first quarter of 2005 relating to the settlement of Enron and WorldCom class action litigation and for certain other material legal proceedings. In the first quarter of 2006 and fourth quarter of 2005, insurance recoveries relating to certain material litigation of $98 million and $208 million, respectively, were recorded.

Page 3

JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS

(in millions)

																Mar 31, 2006
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2006			2005			2005			2005			2005			2005			2005
ASSETS
Cash and Due from Banks	$	36,903		$	36,670		$	33,036		$	35,092		$	37,593			1	%		(2)	%
Deposits with Banks		10,545			21,661			14,337			9,080			14,331			(51	)		(26	)
Federal Funds Sold and Securities Purchased under Resale Agreements		153,755			133,981			122,876			130,785			132,751			15			16
Securities Borrowed		93,280			74,604			64,381			58,457			53,174			25			75
Trading Assets:
Debt and Equity Instruments		259,275			248,590			250,171			235,803			230,725			4			12
Derivative Receivables		52,750			49,787			54,389			55,015			60,388			6			(13	)
Securities		67,126			47,600			68,697			58,573			75,251			41			(11	)
Interests in Purchased Receivables		29,029			29,740			28,766			27,887			28,484			(2	)		2
Loans (Net of Allowance for Loan Losses)		424,806			412,058			413,284			409,231			395,734			3			7
Private Equity Investments		6,499			6,374			6,081			6,488			7,333			2			(11	)
Accrued Interest and Accounts Receivable		21,657			22,421			28,872			24,245			21,098			(3	)		3
Premises and Equipment		8,985			9,081			9,297			9,354			9,344			(1	)		(4	)
Goodwill		43,899			43,621			43,555			43,537			43,440			1			1
Other Intangible Assets:
Mortgage Servicing Rights		7,539			6,452			6,057			5,026			5,663			17			33
Purchased Credit Card Relationships		3,243			3,275			3,352			3,528			3,703			(1	)		(12	)
All Other Intangibles		4,832			4,832			5,139			5,319			5,514			-			(12	)
Other Assets		49,159			48,195			50,743			53,863			53,779			2			(9	)
TOTAL ASSETS	$	1,273,282		$	1,198,942		$	1,203,033		$	1,171,283		$	1,178,305			6			8
LIABILITIES
Deposits:
U.S. Offices:
Noninterest-Bearing	$	128,982		$	135,599		$	134,129		$	138,025		$	130,533			(5	)		(1	)
Interest-Bearing		309,779			287,774			267,288			263,952			271,592			8			14
Non-U.S. Offices:
Noninterest-Bearing		6,591			7,476			6,723			7,289			6,669			(12	)		(1	)
Interest-Bearing		139,113			124,142			126,983			125,374			122,585			12			13
Total Deposits		584,465			554,991			535,123			534,640			531,379			5			10
Federal Funds Purchased and Securities Sold under Repurchase Agreements		151,006			125,925			143,404			137,350			137,062			20			10
Commercial Paper		15,933			13,863			16,166			12,842			13,063			15			22
Other Borrowed Funds		14,400			10,479			15,400			12,716			10,124			37			42
Trading Liabilities:
Debt and Equity Instruments		104,160			94,157			99,163			83,011			96,090			11			8
Derivative Payables		55,938			51,773			53,329			51,269			57,626			8			(3	)
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		73,693			78,460			74,698			77,064			72,183			(6	)		2
Beneficial Interests Issued by Consolidated VIEs		42,237			42,197			46,140			43,826			44,827			-			(6	)
Long-Term Debt		112,133			108,357			101,853			101,182			99,329			3			13
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		10,980			11,529			11,622			11,998			11,282			(5	)		(3	)
TOTAL LIABILITIES		1,164,945			1,091,731			1,096,898			1,065,898			1,072,965			7			9
STOCKHOLDERS’ EQUITY
Preferred Stock		-			139			139			139			339			NM			NM
Common Stock		3,645			3,618			3,608			3,604			3,598			1			1
Capital Surplus		76,153			74,994			74,396			73,911			73,394			2			4
Retained Earnings		35,892			33,848			32,350			31,032			31,253			6			15
Accumulated Other Comprehensive Income (Loss)		(1,017	)		(626	)		(602	)		(61	)		(623	)		(62	)		(63	)
Treasury Stock, at Cost		(6,336	)		(4,762	)		(3,756	)		(3,240	)		(2,621	)		(33	)		(142	)
TOTAL STOCKHOLDERS’ EQUITY		108,337			107,211			106,135			105,385			105,340			1			3
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,273,282		$	1,198,942		$	1,203,033		$	1,171,283		$	1,178,305			6			8

Page 4

JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(in millions, except rates)

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	20,672		$	15,584		$	11,388		$	18,646		$	15,232			33	%		36	%
Federal Funds Sold and Securities Purchased under Resale Agreements		147,391			152,324			146,048			139,864			121,189			(3	)		22
Securities Borrowed		84,220			72,359			66,817			60,207			52,449			16			61
Trading Assets — Debt Instruments		185,679			181,178			189,198			193,660			187,669			2			(1	)
Securities		60,223			60,670			65,192			67,705			93,438			(1	)		(36	)
Interests in Purchased Receivables		30,028			28,338			27,905			28,082			29,277			6			3
Loans		429,239			421,651			415,676			404,318			398,494			2			8
Total Interest-Earning Assets		957,452			932,104			922,224			912,482			897,748			3			7
Trading Assets — Equity Instruments		70,762			56,970			53,025			43,935			43,717			24			62
All Other Noninterest-Earning Assets		220,143			215,710			220,796			219,616			221,353			2			(1	)
TOTAL ASSETS	$	1,248,357		$	1,204,784		$	1,196,045		$	1,176,033		$	1,162,818			4			7
LIABILITIES
Interest-Bearing Deposits	$	434,100		$	401,531		$	398,059		$	394,455		$	388,355			8			12
Federal Funds Purchased and Securities Sold under Repurchase Agreements		158,818			149,428			160,967			158,268			151,335			6			5
Commercial Paper		15,310			17,393			15,188			12,496			12,665			(12	)		21
Other Borrowings (a)		124,773			116,284			111,010			98,936			98,259			7			27
Beneficial Interests Issued by Consolidated VIEs		42,192			45,284			44,381			43,743			45,294			(7	)		(7	)
Long-Term Debt		118,875			117,597			111,921			111,858			108,004			1			10
Total Interest-Bearing Liabilities		894,068			847,517			841,526			819,756			803,912			5			11
Noninterest-Bearing Liabilities		246,985			251,203			248,899			250,792			253,222			(2	)		(2	)
TOTAL LIABILITIES		1,141,053			1,098,720			1,090,425			1,070,548			1,057,134			4			8
Preferred Stock		137			139			139			216			339			(1	)		(60	)
Common Stockholders’ Equity		107,167			105,925			105,481			105,269			105,345			1			2
TOTAL STOCKHOLDERS’ EQUITY		107,304			106,064			105,620			105,485			105,684			1			2
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$	1,248,357		$	1,204,784		$	1,196,045		$	1,176,033		$	1,162,818			4			7
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		6.28	%		5.29	%		4.48	%		4.08	%		4.11	%
Federal Funds Sold and Securities Purchased under Resale Agreements		4.25			3.55			2.97			2.70			2.43
Securities Borrowed		1.86			1.75			1.78			2.08			1.71
Trading Assets — Debt Instruments		5.67			5.07			4.79			5.06			4.89
Securities		5.34			5.00			4.56			3.77			4.93
Interests in Purchased Receivables		4.47			3.97			3.52			3.08			2.58
Loans		7.06			6.57			6.39			6.24			6.11
Total Interest-Earning Assets		5.70			5.21			4.95			4.85			4.83
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		3.49			3.19			2.71			2.39			2.09
Federal Funds Purchased and Securities Sold under Repurchase Agreements		3.47			3.04			2.80			2.69			2.48
Commercial Paper		3.97			3.40			3.13			2.42			2.00
Other Borrowings (a)		4.64			4.44			4.33			4.56			5.06
Beneficial Interests Issued by Consolidated VIEs		3.92			3.66			3.25			2.92			2.44
Long-Term Debt		4.21			4.01			3.65			3.64			3.47
Total Interest-Bearing Liabilities		3.77			3.48			3.10			2.91			2.73
INTEREST RATE SPREAD		1.93%			1.73%			1.85%			1.94%			2.10%
NET YIELD ON INTEREST-EARNING ASSETS		2.17%			2.05%			2.12%			2.24%			2.39%
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		2.65%			2.50%			2.61%			2.76%			2.95%

(a) Includes securities sold but not yet purchased.

Page 5

JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO MANAGED SUMMARY

(in millions)

The Firm prepares its Consolidated financial statements using accounting principles generally accepted in the United States of America (“U.S. GAAP”), which is referred to as “reported basis.” That presentation provides the reader with an understanding of the Firm’s results that can be tracked consistently from year to year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s and the lines’ of business results on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and is adjusted to exclude credit card securitizations and present revenues on a fully taxable equivalent (“FTE”) basis. These adjustments do not have any impact on Net income as reported by the lines of business or by the Firm as a whole. The impact of these adjustments are summarized below. For additional information about managed basis, please refer to the Glossary of Terms on page 32.

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
CREDIT CARD INCOME
Credit Card Income — Reported	$	1,910		$	1,402		$	1,855		$	1,763		$	1,734			36	%		10	%
Impact of:
Credit Card Securitizations		(1,125	)		(442	)		(733	)		(728	)		(815	)		(155	)		(38	)
Credit Card Income — Managed	$	785		$	960		$	1,122		$	1,035		$	919			(18	)		(15	)
OTHER INCOME
Other Income — Reported	$	556		$	1,764		$	233		$	496		$	201			(68	)		177
Impact of:
Tax Equivalent Adjustments		146			158			155			143			115			(8	)		27
Other Income — Managed	$	702		$	1,922		$	388		$	639		$	316			(63	)		122
TOTAL NONINTEREST REVENUE
Total Noninterest Revenue — Reported	$	10,176		$	8,925		$	9,613		$	7,742		$	8,422			14			21
Impact of:
Credit Card Securitizations		(1,125	)		(442	)		(733	)		(728	)		(815	)		(155	)		(38	)
Tax Equivalent Adjustments		146			158			155			143			115			(8	)		27
Total Noninterest Revenue — Managed	$	9,197		$	8,641		$	9,035		$	7,157		$	7,722			6			19
NET INTEREST INCOME
Net Interest Income — Reported	$	5,060		$	4,753		$	4,852		$	5,001		$	5,225			6			(3	)
Impact of:
Credit Card Securitizations		1,574			1,504			1,600			1,658			1,732			5			(9	)
Tax Equivalent Adjustments		71			57			67			84			61			25			16
Net Interest Income — Managed	$	6,705		$	6,314		$	6,519		$	6,743		$	7,018			6			(4	)
TOTAL NET REVENUE
Total Net Revenue — Reported	$	15,236		$	13,678		$	14,465		$	12,743		$	13,647			11			12
Impact of:
Credit Card Securitizations		449			1,062			867			930			917			(58	)		(51	)
Tax Equivalent Adjustments		217			215			222			227			176			1			23
Total Net Revenue — Managed	$	15,902		$	14,955		$	15,554		$	13,900		$	14,740			6			8
PROVISION FOR CREDIT LOSSES
Provision for Credit Losses — Reported	$	831		$	1,224		$	1,245		$	587		$	427			(32	)		95
Impact of:
Credit Card Securitizations		449			1,062			867			930			917			(58	)		(51	)
Provision for Credit Losses — Managed	$	1,280		$	2,286		$	2,112		$	1,517		$	1,344			(44	)		(5	)
INCOME TAX EXPENSE
Income Tax Expense — Reported	$	1,572		$	1,221		$	1,229		$	263		$	1,019			29			54
Impact of:
Tax Equivalent Adjustments		217			215			222			227			176			1			23
Income Tax Expense — Managed	$	1,789		$	1,436		$	1,451		$	490		$	1,195			25			50

Page 6

JPMORGAN CHASE & CO.
LINE OF BUSINESS FINANCIAL HIGHLIGHTS — MANAGED BASIS

(in millions, except ratio data)

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
TOTAL NET REVENUE (FTE)
Investment Bank	$	4,699		$	3,195		$	4,471		$	2,760		$	4,187			47	%		12	%
Retail Financial Services		3,763			3,594			3,590			3,799			3,847			5			(2	)
Card Services		3,685			3,721			3,980			3,886			3,779			(1	)		(2	)
Commercial Banking		900			916			877			868			827			(2	)		9
Treasury & Securities Services		1,677			1,628			1,578			1,610			1,498			3			12
Asset & Wealth Management		1,584			1,511			1,449			1,343			1,361			5			16
Corporate		(406	)		390			(391	)		(366	)		(759	)		NM			47
TOTAL NET REVENUE	$	15,902		$	14,955		$	15,554		$	13,900		$	14,740			6			8
NET INCOME (LOSS)
Investment Bank	$	850		$	667		$	1,068		$	611		$	1,328			27			(36	)
Retail Financial Services		881			803			656			980			988			10			(11	)
Card Services		901			302			541			542			522			198			73
Commercial Banking		240			279			284			157			231			(14	)		4
Treasury & Securities Services		312			307			277			242			254			2			23
Asset & Wealth Management		313			342			315			283			276			(8	)		13
Corporate (a)		(416	)		(2	)		(614	)		(1,821	)		(1,335	)		NM			69
TOTAL NET INCOME	$	3,081		$	2,698		$	2,527		$	994		$	2,264			14			36
AVERAGE EQUITY (b)
Investment Bank	$	20,000		$	20,000		$	20,000		$	20,000		$	20,000			-			-
Retail Financial Services		13,896			13,700			13,475			13,250			13,100			1			6
Card Services		14,100			11,800			11,800			11,800			11,800			19			19
Commercial Banking		5,500			3,400			3,400			3,400			3,400			62			62
Treasury & Securities Services		2,900			1,900			1,900			1,900			1,900			53			53
Asset & Wealth Management		3,500			2,400			2,400			2,400			2,400			46			46
Corporate		47,271			52,725			52,506			52,519			52,745			(10	)		(10	)
TOTAL AVERAGE EQUITY	$	107,167		$	105,925		$	105,481		$	105,269		$	105,345			1			2
RETURN ON EQUITY (b)
Investment Bank		17	%		13	%		21	%		12	%		27	%
Retail Financial Services		26			23			19			30			31
Card Services		26			10			18			18			18
Commercial Banking		18			33			33			19			28
Treasury & Securities Services		44			64			58			51			54
Asset & Wealth Management		36			57			52			47			47

(a)

Includes the after-tax impact of litigation reserve and Merger costs. See Corporate for additional details.

(b)

Each business segment is allocated capital by taking into consideration stand-alone peer comparisons, economic risk measures and regulatory capital requirements. At the time of the Merger, goodwill, as well as the associated capital, was allocated solely to Corporate. Effective January 2006, the Firm prospectively refined its methodology to allocate capital to the business segments to include any goodwill associated with line of business-directed acquisitions since the Merger.

Page 7

JPMORGAN CHASE & CO.
INVESTMENT BANK
FINANCIAL HIGHLIGHTS

(in millions, except ratio data)

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
INCOME STATEMENT
REVENUE
Investment Banking Fees	$	1,170		$	1,161		$	985		$	965		$	985			1	%		19	%
Principal Transactions		2,375			1,163			2,594			427			1,875			104			27
Lending & Deposit Related Fees		137			143			148			146			157			(4	)		(13	)
Asset Management, Administration and Commissions		552			460			445			413			409			20			35
All Other Income		275			115			40			252			127			139			117
Noninterest Revenue		4,509			3,042			4,212			2,203			3,553			48			27
Net Interest Income		190			153			259			557			634			24			(70	)
TOTAL NET REVENUE (a)		4,699			3,195			4,471			2,760			4,187			47			12
Provision for Credit Losses		183			(83	)		(46	)		(343	)		(366	)		NM			NM
Credit Reimbursement from TSS (b)		30			40			38			38			38			(25	)		(21	)
NONINTEREST EXPENSE
Compensation Expense		2,256			1,096			1,885			1,193			1,618			106			39
Noncompensation Expense		935			1,067			992			988			909			(12	)		3
TOTAL NONINTEREST EXPENSE		3,191			2,163			2,877			2,181			2,527			48			26
Income Before Income Tax Expense		1,355			1,155			1,678			960			2,064			17			(34	)
Income Tax Expense		505			488			610			349			736			3			(31	)
NET INCOME	$	850		$	667		$	1,068		$	611		$	1,328			27			(36	)
FINANCIAL RATIOS
ROE		17	%		13	%		21	%		12	%		27	%
ROA		0.53			0.43			0.69			0.41			0.95
Overhead Ratio		68			68			64			79			60
Compensation Expense as a % of Total Net Revenue (c)		43			34			42			43			39
REVENUE BY BUSINESS
Investment Banking Fees:
Advisory	$	389		$	341		$	300		$	359		$	263			14			48
Equity Underwriting		212			311			210			104			239			(32	)		(11	)
Debt Underwriting		569			509			475			502			483			12			18
Total Investment Banking Fees		1,170			1,161			985			965			985			1			19
Fixed Income Markets		1,993			1,112			2,441			1,428			2,296			79			(13	)
Equities Markets		1,215			458			713			72			556			165			119
Credit Portfolio		321			464			332			295			350			(31	)		(8	)
Total Net Revenue	$	4,699		$	3,195		$	4,471		$	2,760		$	4,187			47			12
REVENUE BY REGION
Americas	$	2,067		$	1,484		$	2,700		$	1,843		$	2,231			39			(7	)
Europe/Middle East/Africa		2,047			1,266			1,272			554			1,535			62			33
Asia/Pacific		585			445			499			363			421			31			39
Total Net Revenue	$	4,699		$	3,195		$	4,471		$	2,760		$	4,187			47			12

(a)	Total net revenue includes tax-equivalent adjustments, primarily due to tax-exempt income from municipal bond investments and income tax credits related to affordable housing investments, of $194 million, $191 million, $200 million, $206 million and $155 million for the quarters ended March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively.
(b)	TSS is charged a credit reimbursement related to certain exposures managed within the IB credit portfolio on behalf of clients shared with TSS.
(c)	For the quarter ended March 31, 2006, Compensation Expense to Total Net Revenue ratio is adjusted to present this ratio as if SFAS 123R had always been in effect. IB management believes that adjusting the Compensation Expense to Total Net Revenue ratio in the first quarter of 2006 for the incremental impact of adopting SFAS 123R provides a more meaningful measure of IB’s compensation expense to total net revenue ratio for the quarter.

Page 8

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	646,220		$	618,171		$	617,717		$	594,186		$	568,222			5	%		14	%
Trading Assets — Debt and Equity Instruments		252,415			232,032			234,722			232,980			225,367			9			12
Trading Assets — Derivative Receivables		49,388			48,741			52,399			56,436			63,574			1			(22	)
Loans:
Loans Retained (a)		53,678			48,225			47,113			41,597			41,233			11			30
Loans Held-for-Sale (b)		19,212			15,581			13,045			11,601			7,674			23			150
Total Loans		72,890			63,806			60,158			53,198			48,907			14			49
Adjusted Assets (c)		492,304			459,532			462,056			453,895			445,840			7			10
Equity		20,000			20,000			20,000			20,000			20,000			-			-
Headcount		21,705			19,802			19,558			19,297			18,021			10			20
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(21	)	$	(5	)	$	(69	)	$	(47	)	$	(5	)		(320	)		(320	)
Nonperforming Assets:
- Nonperforming Loans (d)		434			594			702			711			814			(27	)		(47	)
- Other Nonperforming Assets		50			51			232			235			242			(2	)		(79	)
Allowance for Loan Losses		1,117			907			1,002			971			1,191			23			(6	)
Allowance for Lending-Related Commitments		220			226			211			225			296			(3	)		(26	)
Net Charge-off (Recovery) Rate (b)		(0.16	)%		(0.04	)%		(0.58	)%		(0.45	)%		(0.05	)%
Allowance for Loan Losses to Average Loans (b)		2.08			1.88			2.13			2.33			2.89
Allowance for Loan Losses to Nonperforming Loans (d)		305			187			168			137			147
Nonperforming Loans to Average Loans		0.60			0.93			1.17			1.34			1.66
MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR (e) (f) (g)
Trading Activities:
Fixed Income (e)	$	60		$	69		$	57		$	82		$	57			(13	)		5
Foreign Exchange		20			23			24			21			23			(13	)		(13	)
Equities		32			30			41			45			18			7			78
Commodities and Other		47			35			24			15			10			34			370
Diversification (g)		(68	)		(64	)		(62	)		(61	)		(43	)		(6	)		(58	)
Total Trading VAR		91			93			84			102			65			(2	)		40
Credit Portfolio VAR (f)		14			15			15			13			13			(7	)		8
Diversification (g)		(11	)		(13	)		(13	)		(13	)		(8	)		15			(38	)
Total Trading and Credit Portfolio VAR	$	94		$	95		$	86		$	102		$	70			(1	)		34
	YTD 2006						Full Year 2005
	Market						Market
MARKET SHARES AND RANKINGS (h)	Share			Rankings			Share			Rankings
Global Debt, Equity and Equity-Related		7%			#2			6%			#4
Global Syndicated Loans		13%			#1			16%			#1
Global Long-Term Debt		7%			#2			6%			#4
Global Equity and Equity-Related		5%			#9			7%			#6
Global Announced M&A		31%			#3			24%			#3
U.S. Debt, Equity and Equity-Related		10%			#2			8%			#4
U.S. Syndicated Loans		23%			#1			28%			#1
U.S. Long-Term Debt		14%			#1			11%			#2
U.S. Equity and Equity-Related		8%			#5			9%			#5
U.S. Announced M&A		19%			#6			24%			#3

(a)	Loans retained include Credit Portfolio, Conduit loans, leverage leases, bridge loans for underwriting and other accrual loans.
(b)	Loans held-for-sale, which include warehouse loans held as part of the IB’s mortgage-backed, asset-backed and other securitization businesses, are excluded from total loans for the allowance coverage ratio and net charge-off rate.
(c)	Adjusted assets, a non-GAAP financial measure, equals total assets minus (i) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased; (ii) assets of variable interest entities (VIEs) consolidated under FIN 46R; (iii) cash and securities segregated and on deposit for regulatory and other purposes; and (iv) goodwill and intangibles. The amount of adjusted assets is presented to assist the reader in comparing the IB’s asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. The IB believes an adjusted asset amount, which excludes certain assets considered to have a low-risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.
(d)	Nonperforming loans include loans held-for-sale of $68 million, $109 million, $106 million, $2 million and $2 million at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are not included in the allowance coverage ratios.
(e)	Includes substantially all mark-to-market trading activities, plus available-for-sale securities held for the IB’s proprietary purposes (included within Fixed Income).
(f)	Includes VAR on derivative credit valuation adjustments, credit valuation adjustment hedges and mark-to-market hedges of the accrual loan portfolio, which are all reported in Principal Transactions. This VAR does not include the accrual loan portfolio, which is not marked to market.
(g)	Average VARs are less than the sum of the VARs of its market risk components, due to risk offsets resulting from portfolio diversification. The diversification effect reflects the fact that the risks are not perfectly correlated. The risk of a portfolio of positions is therefore usually less than the sum of the risks of the positions themselves.
(h)	Source: Thomson Financial Securities data. Global announced M&A is based on rank value; all other rankings are based upon proceeds, with full credit to each book manager/equal if joint. Because of joint assignments, market share of all participants will add up to more than 100%.

Page 9

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	371		$	374		$	380		$	358		$	340			(1	)%		9	%
Asset Management, Administration and Commissions		437			365			370			369			394			20			11
Securities Gains (Losses)		(6	)		(1	)		-			-			10			(500	)		NM
Mortgage Fees and Related Income		236			183			212			341			368			29			(36	)
Credit Card Income		115			118			109			105			94			(3	)		22
All Other Income		48			73			7			68			(12	)		(34	)		NM
Noninterest Revenue		1,201			1,112			1,078			1,241			1,194			8			1
Net Interest Income		2,562			2,482			2,512			2,558			2,653			3			(3	)
TOTAL NET REVENUE		3,763			3,594			3,590			3,799			3,847			5			(2	)
Provision for Credit Losses (a)		85			158			378			94			94			(46	)		(10	)
NONINTEREST EXPENSE
Compensation Expense		920			853			842			820			822			8			12
Noncompensation Expense		1,207			1,163			1,189			1,181			1,215			4			(1	)
Amortization of Intangibles		111			125			125			125			125			(11	)		(11	)
TOTAL NONINTEREST EXPENSE		2,238			2,141			2,156			2,126			2,162			5			4
Income Before Income Tax Expense		1,440			1,295			1,056			1,579			1,591			11			(9	)
Income Tax Expense		559			492			400			599			603			14			(7	)
NET INCOME	$	881		$	803		$	656		$	980		$	988			10			(11	)
FINANCIAL RATIOS
ROE		26	%		23	%		19	%		30	%		31	%
ROA		1.54			1.40			1.14			1.74			1.78
Overhead Ratio		59			60			60			56			56
Overhead Ratio Excluding Core Deposit Intangibles (b)		57			56			57			53			53
SELECTED BALANCE SHEETS (Ending)
Assets	$	235,127		$	224,801		$	230,698		$	223,391		$	224,562			5			5
Loans (c)		202,591			197,299			200,434			197,927			199,215			3			2
Deposits		200,154			191,415			187,621			185,558			187,225			5			7
SELECTED BALANCE SHEETS (Average)
Assets	$	231,587		$	226,866		$	227,875		$	225,574		$	225,120			2			3
Loans (d)		198,797			197,359			199,057			197,707			198,494			1			-
Deposits		194,382			189,113			187,216			186,523			184,336			3			5
Equity		13,896			13,700			13,475			13,250			13,100			1			6
Headcount		62,472			60,998			60,375			59,631			59,322			2			5
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	121		$	162		$	144		$	114		$	152			(25	)		(20	)
Nonperforming Loans (e)		1,349			1,338			1,203			1,132			1,150			1			17
Nonperforming Assets		1,537			1,518			1,387			1,319			1,351			1			14
Allowance for Loan Losses		1,333			1,363			1,375			1,135			1,168			(2	)		14
Net Charge-off Rate (d)		0.27	%		0.36	%		0.31	%		0.25	%		0.34	%
Allowance for Loan Losses to Ending Loans (c)		0.71			0.75			0.75			0.61			0.64
Allowance for Loan Losses to Nonperforming Loans (e)		100			104			115			103			104
Nonperforming Loans to Total Loans		0.67			0.68			0.60			0.57			0.58

(a)	Third quarter 2005 includes a $250 million special provision related to Hurricane Katrina allocated as follows: $230 million in Regional Banking and $20 million in Auto Finance; within Regional Banking, $140 million was for real estate and $90 million was for Business Banking.
(b)	Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business which are operating in nature. Including CDI amortization expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years, and a lower overhead ratio in later years; this would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excludes Regional Banking’s core deposit intangible amortization expense related to the Bank One merger of $109 million for the quarter ended March 31, 2006 and $124 million in each quarter of 2005.
(c)	Includes loans held-for-sale of $14,343 million, $16,598 million, $17,695 million, $13,112 million and $16,532 million at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are not included in the allowance coverage ratios.
(d)	Average loans include loans held-for-sale of $16,362 million, $16,505 million, $15,707 million, $14,620 million and $15,861 million for the quarters ended March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are not included in the net charge-off rate.
(e)	Nonperforming loans include loans held-for-sale of $16 million, $27 million, $10 million, $26 million and $31 million at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are not included in the allowance coverage ratios.

Page 10

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
REGIONAL BANKING
Noninterest Revenue	$	820		$	701		$	789		$	821		$	827			17	%		(1	)%
Net Interest Income		2,220			2,101			2,089			2,131			2,210			6			-
Total Net Revenue		3,040			2,802			2,878			2,952			3,037			8			-
Provision for Credit Losses		66			87			297			63			65			(24	)		2
Noninterest Expense		1,738			1,636			1,673			1,661			1,705			6			2
Income Before Income Tax Expense		1,236			1,079			908			1,228			1,267			15			(2	)
Net Income		757			669			563			762			786			13			(4	)
ROE		31	%		28	%		24	%		34	%		36	%
ROA		1.95			1.73			1.46			2.04			2.17
Overhead Ratio		57			58			58			56			56
Overhead Ratio Excluding Core Deposit Intangibles (a)		54			54			54			52			52
BUSINESS METRICS (in billions)
Home Equity Origination Volume	$	11.7		$	12.1		$	14.3		$	15.8		$	11.9			(3	)		(2	)
End of Period Loans Owned:
Home Equity	$	75.3		$	73.9		$	72.5		$	71.2		$	67.7			2			11
Mortgage		47.0			44.6			47.0			47.7			46.6			5			1
Business Banking		12.8			12.8			12.7			12.6			12.7			-			1
Education		9.5			3.0			2.9			2.0			4.3			217			121
Other Loans (b)		2.7			2.6			2.9			2.8			2.9			4			(7	)
Total End of Period Loans		147.3			136.9			138.0			136.3			134.2			8			10
End of Period Deposits:
Checking	$	64.9		$	64.9		$	62.3		$	61.6		$	62.6			-			4
Savings		91.0			87.7			86.9			86.5			88.3			4			3
Time and Other		34.2			29.7			27.0			25.8			25.0			15			37
Total End of Period Deposits		190.1			182.3			176.2			173.9			175.9			4			8
Average Loans Owned:
Home Equity	$	74.1		$	72.7		$	71.7		$	69.0		$	66.2			2			12
Mortgage Loans		44.6			45.6			46.6			46.0			43.4			(2	)		3
Business Banking		12.8			12.6			12.5			12.5			12.5			2			2
Education		5.4			2.6			2.2			2.8			4.6			108			17
Other Loans (b)		3.0			2.7			2.6			2.7			3.4			11			(12	)
Total Average Loans (c)		139.9			136.2			135.6			133.0			130.1			3			8
Average Deposits:
Checking	$	63.0		$	61.7		$	61.0		$	62.3		$	61.7			2			2
Savings		89.3			87.8			87.1			87.3			87.8			2			2
Time and Other		32.4			28.1			26.3			25.4			24.6			15			32
Total Average Deposits		184.7			177.6			174.4			175.0			174.1			4			6
Average Assets		157.1			153.4			152.9			150.0			146.9			2			7
Average Equity		9.8			9.4			9.2			9.0			8.8			4			11

Page 11

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
REGIONAL BANKING (continued)
CREDIT DATA AND QUALITY STATISTICS
30+ Day Delinquency Rate (d) (e)		1.36	%		1.68	%		1.45	%		1.32	%		1.34	%
Net Charge-offs
Home Equity	$	33		$	42		$	32		$	32		$	35			(21	)%		(6	)%
Mortgage		12			5			6			8			6			140			100
Business Banking		18			32			25			25			19			(44	)		(5	)
Other Loans (f)		7			6			11			2			9			17			(22	)
Total Net Charge-offs		70			85			74			67			69			(18	)		1
Net Charge-off Rate
Home Equity		0.18	%		0.23	%		0.18	%		0.19	%		0.21	%
Mortgage		0.11			0.04			0.05			0.07			0.06
Business Banking		0.57			1.01			0.79			0.80			0.62
Other Loans (c) (f)		0.56			0.88			1.68			0.23			1.04
Total Net Charge-off Rate (c)		0.21			0.25			0.22			0.21			0.22
Nonperforming Assets (g) (h) (i)	$	1,339		$	1,282		$	1,141		$	1,084		$	1,136			4			18
RETAIL BRANCH BUSINESS METRICS
Investment Sales Volume	$	3,553		$	2,622		$	2,745		$	2,907		$	2,870			36			24
Number of:
Branches		2,638			2,641			2,549			2,539			2,517			(3)	#		121	#
ATMs		7,400			7,312			7,136			6,961			6,687			88			713
Personal Bankers		7,019			7,067			6,719			6,258			5,798			(48	)		1,221
Sales Specialists		3,318			3,214			3,117			2,987			2,846			104			472
Active Online Customers (in thousands)		5,030			4,231			4,099			4,053			3,671			799			1,359
Checking Accounts (in thousands)		8,936			8,793			8,702			8,504			8,287			143			649
MORTGAGE BANKING
Production Income	$	219		$	134		$	229		$	144		$	237			63	%		(8	)%
Mortgage Servicing Income:
Servicing Revenue		560			546			533			517			519			3			8
Changes in MSR Asset Fair Value:
Due to Inputs or Assumptions in Model (j)		711			157			767			(702	)		548			353			30
Other Changes in Fair Value (k)		(349	)		(309	)		(323	)		(324	)		(339	)		(13	)		(3	)
Derivative Valuation Adjustments and Other		(753	)		(104	)		(814	)		869			(445	)	NM				(69	)
Total Mortgage Servicing Income		169			290			163			360			283			(42	)		(40	)
Total Net Revenue		388			424			392			504			520			(8	)		(25	)
Noninterest Expense		324			325			309			306			299			-			8
Income Before Income Tax Expense		64			99			83			198			221			(35	)		(71	)
Net Income		39			63			53			124			139			(38	)		(72	)
ROE		9	%		16	%		13	%		31	%		35	%
ROA		0.58			1.03			0.89			2.40			2.71
Business Metrics (in billions)
Third Party Mortgage Loans Serviced (Ending)	$	484.1		$	467.5		$	450.3		$	438.1		$	435.5			4			11
MSR Net Carrying Value (Ending)		7.5			6.5			6.1			5.0			5.7			15			32
Average Mortgage Loans Held-for-Sale		13.0			13.1			13.5			10.5			11.4			(1	)		14
Average Assets		27.1			24.2			23.7			20.7			20.8			12			30
Average Equity		1.7			1.6			1.6			1.6			1.6			6			6
Mortgage Origination Volume by Channel (in billions)
Retail	$	9.1		$	10.7		$	13.9		$	11.7		$	10.0			(15	)		(9	)
Wholesale		7.4			8.2			10.1			8.7			7.2			(10	)		3
Correspondent (Including Negotiated Transactions)		12.4			13.0			15.3			10.7			9.5			(5	)		31
Total		28.9			31.9			39.3			31.1			26.7			(9	)		8

Page 12

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
AUTO FINANCE
Noninterest Revenue	$	44		$	75		$	14		$	32		$	(35	)		(41	)%		NM
Net Interest Income		291			293			306			311			325			(1	)		(10	)%
Total Net Revenue		335			368			320			343			290			(9	)		16
Provision for Credit Losses		19			71			81			31			29			(73	)		(34	)
Noninterest Expense		176			180			174			159			158			(2	)		11
Income Before Income Tax Expense		140			117			65			153			103			20			36
Net Income		85			71			40			94			63			20			35
ROE		14	%		10	%		6	%		14	%		9	%
ROA		0.73			0.57			0.31			0.69			0.45
Business Metrics (in billions)
Auto Origination Volume	$	4.3		$	4.1		$	5.1		$	4.1		$	4.8			5			(10	)
End-of-Period Loans and Lease Related Assets
Loans Outstanding	$	41.0		$	41.7		$	43.3		$	44.3		$	48.4			(2	)		(15	)
Lease Financing Receivables		3.6			4.3			5.1			6.1			7.0			(16	)		(49	)
Operating Lease Assets		1.1			0.9			0.7			0.4			0.2			22			450
Total End-of-Period Loans and Lease Related Assets		45.7			46.9			49.1			50.8			55.6			(3	)		(18	)
Average Loans and Lease Related Assets
Loans Outstanding (l)	$	41.2		$	42.6		$	43.7		$	47.0		$	48.8			(3	)		(16	)
Lease Financing Receivables		4.0			4.7			5.6			6.6			7.6			(15	)		(47	)
Operating Lease Assets		1.0			0.8			0.6			0.3			0.1			25			NM
Total Average Loans and Lease Related Assets		46.2			48.1			49.9			53.9			56.5			(4	)		(18	)
Average Assets		47.3			49.3			51.3			54.9			57.4			(4	)		(18	)
Average Equity		2.4			2.7			2.7			2.7			2.7			(11	)		(11	)
Credit Quality Statistics
30+ Day Delinquency Rate		1.39	%		1.66	%		1.60	%		1.45	%		1.37	%
Net Charge-offs
Loans	$	48		$	72		$	66		$	45		$	74			(33	)		(35	)
Lease Receivables		3			5			4			2			9			(40	)		(67	)
Total Net Charge-offs		51			77			70			47			83			(34	)		(39	)
Net Charge-off Rate
Loans (l)		0.47	%		0.68	%		0.60	%		0.40	%		0.61	%
Lease Receivables		0.30			0.42			0.28			0.12			0.48
Total Net Charge-off Rate (l)		0.46			0.66			0.56			0.37			0.60
Nonperforming Assets	$	198		$	236		$	246		$	235		$	215			(16	)		(8	)

(a)	Regional Banking uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business which are operating in nature. Including CDI amortization expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years, and a lower overhead ratio in later years; this would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excludes Regional Banking’s core deposit intangible amortization expense related to the Bank One merger of $109 million for the quarter ended March 31, 2006 and $124 million in each quarter of 2005.
(b)	Includes commercial loans derived from community development activities and insurance policy loans.
(c)	Average loans include loans held-for-sale of $3.3 billion, $2.6 billion, $2.2 billion, $2.0 billion and $4.5 billion for the quarters ended March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are not included in the net charge-off rate.
(d)	Excludes delinquencies related to loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by government agencies of $0.9 billion, $0.9 billion, $0.8 billion, $0.7 billion and $0.7 billion at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are excluded as reimbursement is proceeding normally.
(e)	Excludes delinquencies that are insured by government agencies under the Federal Family Education Loan Program of $0.4 billion at March 31, 2006. Delinquencies were insignificant in each quarter of 2005. These amounts are excluded as reimbursement is proceeding normally.
(f)	Includes insignificant amounts of Education net charge-offs.
(g)	Excludes nonperforming assets related to loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by government agencies of $1.1 billion, $1.1 billion, $1.0 billion, $1.0 billion and $1.1 billion at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are excluded as reimbursement is proceeding normally.
(h)	Excludes loans that are 90 days past due and still accruing, which are insured by government agencies under the Federal Family Education Loan Program of $0.2 billion at March 31, 2006. The Education loans past due 90 days were insignificant in each quarter of 2005. These amounts are excluded as reimbursement is proceeding normally.
(i)	Includes nonperforming loans held-for-sale related to mortgage banking activities of $16 million, $27 million, $10 million, $26 million and $31 million at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively.
(j)	Represents MSR asset fair value adjustments due to changes in inputs, such as interest rates and volatility, to the valuation model. Also includes updates to assumptions used in the MSR valuation process.
(k)	Includes changes in the MSR value due to servicing portfolio runoff (or time decay). For periods prior to January 1, 2006, this amount represents MSR asset amortization expense.
(l)	Average loans include loans held-for-sale of $0.8 billion and $2.1 billion for the quarters ended December 31, 2005 and June 30, 2005, respectively. Average loans held-for-sale for the quarters ended March 31, 2006, September 30, 2005 and March 31, 2005 were insignificant. These amounts are not included in the net charge-off rate.

Page 13

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
INCOME STATEMENT
REVENUE
Credit Card Income	$	601		$	772		$	950		$	868		$	761			(22	)%		(21	)%
All Other Income		71			99			60			42			11			(28	)		NM
Noninterest Revenue		672			871			1,010			910			772			(23	)		(13	)
Net Interest Income		3,013			2,850			2,970			2,976			3,007			6			-
TOTAL NET REVENUE (a)		3,685			3,721			3,980			3,886			3,779			(1	)		(2	)
Provision for Credit Losses (b)		1,016			2,236			1,833			1,641			1,636			(55	)		(38	)
NONINTEREST EXPENSE
Compensation Expense		259			221			284			291			285			17			(9	)
Noncompensation Expense		796			614			813			904			839			30			(5	)
Amortization of Intangibles		188			182			189			188			189			3			(1	)
TOTAL NONINTEREST EXPENSE (a)		1,243			1,017			1,286			1,383			1,313			22			(5	)
Income Before Income Tax Expense (a)		1,426			468			861			862			830			205			72
Income Tax Expense		525			166			320			320			308			216			70
NET INCOME	$	901		$	302		$	541		$	542		$	522			198			73
Memo: Net Securitization Gains (Amortization)	$	8		$	28		$	25		$	15		$	(12	)		(71	)		NM
FINANCIAL METRICS
ROE		26	%		10	%		18	%		18	%		18	%
Overhead Ratio		34			27			32			36			35
% of Average Managed Outstandings:
Net Interest Income		8.85			8.14			8.55			8.83			9.13
Provision for Credit Losses		2.99			6.39			5.28			4.87			4.97
Noninterest Revenue		1.97			2.49			2.91			2.70			2.34
Risk Adjusted Margin (c)		7.84			4.24			6.18			6.66			6.51
Noninterest Expense		3.65			2.91			3.70			4.10			3.99
Pre-tax Income		4.19			1.34			2.48			2.56			2.52
Net Income		2.65			0.86			1.56			1.61			1.58
BUSINESS METRICS
Charge Volume (in billions)	$	74.3		$	79.6		$	76.4		$	75.6		$	70.3			(7	)		6
Net Accounts Opened (in thousands)		2,718			12,501			3,022			2,789			2,744			(78	)		(1	)
Credit Cards Issued (in thousands)		112,446			110,439			98,236			95,465			94,367			2			19
Number of Registered Internet Customers (in millions)		15.9			14.6			14.6			12.0			10.9			9			46
Merchant Acquiring Business (d)
Bank Card Volume (in billions)	$	147.7		$	153.4		$	143.4		$	141.2		$	125.1			(4	)		18
Total Transactions (in millions) (e)		4,130			4,315			3,921			3,804			3,459			(4	)		19

(a)	As a result of the integration of Chase Merchant Services and Paymentech merchant processing businesses into a joint venture, beginning in the fourth quarter of 2005, Total Net Revenue, Noninterest Expense and Income Before Income Tax Expense have been reduced to reflect the deconsolidation of Paymentech. There is no impact to Net Income.
(b)	Third quarter 2005 includes a $100 million special provision related to Hurricane Katrina.
(c)	Represents Total net revenue less Provision for credit losses.
(d)	Represents 100% of the merchant acquiring business.
(e)	Periods prior to the fourth quarter 2005 have been restated to conform methodologies following the integration of Chase Merchant Services and Paymentech merchant processing businesses.

Page 14

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheets	$	64,691		$	71,738		$	68,479		$	68,510		$	66,053			(10	)%		(2	)%
Securitized Loans		69,580			70,527			69,095			68,808			67,328			(1	)		3
Managed Loans	$	134,271		$	142,265		$	137,574		$	137,318		$	133,381			(6	)		1
SELECTED AVERAGE BALANCES
Managed Assets	$	145,994		$	144,166		$	144,225		$	140,741		$	138,512			1			5
Loans:
Loans on Balance Sheets	$	68,455		$	69,038		$	68,877		$	67,131		$	64,218			(1	)		7
Securitized Loans		69,571			69,840			68,933			68,075			69,370			-			-
Managed Loans	$	138,026		$	138,878		$	137,810		$	135,206		$	133,588			(1	)		3
Equity		14,100			11,800			11,800			11,800			11,800			19			19
Headcount		18,801			18,629			19,463			20,647			20,137			1			(7	)
CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,016		$	2,236		$	1,633		$	1,641		$	1,590			(55	)		(36	)
Net Charge-off Rate		2.99	%		6.39	%		4.70	%		4.87	%		4.83	%
Delinquency ratios
30+ days		3.10	%		2.79	%		3.39	%		3.34	%		3.54	%
90+ days		1.39			1.27			1.55			1.54			1.71
Allowance for Loan Losses	$	3,274		$	3,274		$	3,255		$	3,055		$	3,040			-			8
Allowance for Loan Losses to Period-end Loans		5.06	%		4.56	%		4.75	%		4.46	%		4.60	%

Page 15

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Data for the period	$	1,726		$	1,214		$	1,683		$	1,596		$	1,576			42	%		10	%
Securitization Adjustments		(1,125	)		(442	)		(733	)		(728	)		(815	)		(155	)		(38	)
Managed Credit Card Income	$	601		$	772		$	950		$	868		$	761			(22	)		(21	)
Net Interest Income
Reported Data for the Period	$	1,439		$	1,346		$	1,370		$	1,318		$	1,275			7			13
Securitization Adjustments		1,574			1,504			1,600			1,658			1,732			5			(9	)
Managed Net Interest Income	$	3,013		$	2,850		$	2,970		$	2,976		$	3,007			6			-
Total Net Revenue
Reported Data for the Period	$	3,236		$	2,659		$	3,113		$	2,956		$	2,862			22			13
Securitization Adjustments		449			1,062			867			930			917			(58	)		(51	)
Managed Total Net Revenue	$	3,685		$	3,721		$	3,980		$	3,886		$	3,779			(1	)		(2	)
Provision for Credit Losses
Reported Data for the Period (b)	$	567		$	1,174		$	966		$	711		$	719			(52	)		(21	)
Securitization Adjustments		449			1,062			867			930			917			(58	)		(51	)
Managed Provision for Credit Losses (b)	$	1,016		$	2,236		$	1,833		$	1,641		$	1,636			(55	)		(38	)
BALANCE SHEETS - AVERAGE BALANCES (a)
Total Average Assets
Reported Data for the Period	$	78,437		$	76,207		$	77,204		$	74,515		$	71,003			3			10
Securitization Adjustments		67,557			67,959			67,021			66,226			67,509			(1	)		-
Managed Average Assets	$	145,994		$	144,166		$	144,225		$	140,741		$	138,512			1			5
CREDIT QUALITY STATISTICS (a)
Net Charge-offs
Reported Net Charge-offs Data for the period	$	567		$	1,174		$	766		$	711		$	673			(52	)		(16	)
Securitization Adjustments		449			1,062			867			930			917			(58	)		(51	)
Managed Net Charge-offs	$	1,016		$	2,236		$	1,633		$	1,641		$	1,590			(55	)		(36	)

(a)

JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance and overall performance of the underlying credit card loans, both sold and not sold: as the same borrower is continuing to use the credit card for ongoing charges, a borrower’s credit performance will affect both the receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed loan receivables, JPMorgan Chase treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire managed credit card portfolio. Managed results exclude the impact of credit card securitizations on Total net revenue, the Provision for credit losses, net charge-offs and loan receivables. Securitization does not change reported net income versus managed earnings; however, it does affect the classification of items on the Consolidated statements of income.

(b)

Third quarter 2005 includes a $100 million special provision related to Hurricane Katrina.

Page 16

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	142		$	143		$	145		$	142		$	142			(1	)%		-	%
Asset Management, Administration and Commissions		15			14			15			14			14			7			7
All Other Income (a)		76			97			94			96			71			(22	)		7
Noninterest Revenue		233			254			254			252			227			(8	)		3
Net Interest Income		667			662			623			616			600			1			11
TOTAL NET REVENUE		900			916			877			868			827			(2	)		9
Provision for Credit Losses (b)		7			(17	)		(46	)		142			(6	)		NM			NM
NONINTEREST EXPENSE
Compensation Expense		197			171			164			159			161			15			22
Noncompensation Expense		285			289			279			293			276			(1	)		3
Amortization of Intangibles		16			16			15			17			17			-			(6	)
TOTAL NONINTEREST EXPENSE		498			476			458			469			454			5			10
Income Before Income Tax Expense		395			457			465			257			379			(14	)		4
Income Tax Expense		155			178			181			100			148			(13	)		5
NET INCOME	$	240		$	279		$	284		$	157		$	231			(14	)		4
MEMO:
Revenue by Product:
Lending	$	319		$	310		$	302		$	311		$	292			3			9
Treasury Services		550			546			517			502			497			1			11
Investment Banking		40			56			50			61			39			(29	)		3
Other		(9	)		4			8			(6	)		(1	)		NM			NM
Total Commercial Banking Revenue	$	900		$	916		$	877		$	868		$	827			(2	)		9
IB Revenues, Gross	$	114		$	150		$	145		$	150		$	107			(24	)		7
Revenue by Business:
Middle Market Banking	$	623		$	608		$	589		$	591		$	570			2			9
Mid-Corporate Banking		137			148			141			139			123			(7	)		11
Real Estate		105			122			114			100			98			(14	)		7
Other		35			38			33			38			36			(8	)		(3	)
Total Commercial Banking Revenue	$	900		$	916		$	877		$	868		$	827			(2	)		9
FINANCIAL RATIOS
ROE		18	%		33	%		33	%		19	%		28	%
ROA		1.78			2.04			2.17			1.21			1.83
Overhead Ratio		55			52			52			54			55

(a)	IB-related and commercial card revenues are included in All Other Income.
(b)	Third quarter 2005 includes a $35 million special provision related to Hurricane Katrina.

Page 17

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	54,771		$	54,205		$	51,988		$	52,073		$	51,135			1	%		7	%
Loans and Leases		50,836			50,042			47,999			47,792			46,599			2			9
Liability Balances (a)		70,763			68,895			64,772			65,150			65,380			3			8
Equity		5,500			3,400			3,400			3,400			3,400			62			62
MEMO:
Loans by Business:
Middle Market Banking	$	31,861		$	32,014		$	31,402		$	31,092		$	30,243			-			5
Mid-Corporate Banking		7,577			7,055			6,434			6,250			5,799			7			31
Real Estate		7,436			7,350			6,623			6,724			6,937			1			7
Other		3,962			3,623			3,540			3,726			3,620			9			9
Total Commercial Banking Loans	$	50,836		$	50,042		$	47,999		$	47,792		$	46,599			2			9
Headcount		4,310			4,418			4,441			4,442			4,464			(2	)		(3	)
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(7	)	$	21		$	6		$	(3	)	$	2			NM			NM
Nonperforming Loans		202			272			369			434			433			(26	)		(53	)
Allowance for Loan Losses		1,415			1,392			1,423			1,431			1,312			2			8
Allowance for Lending-Related Commitments		145			154			161			196			170			(6	)		(15	)
Net Charge-off (Recovery) Rate		(0.06	)%		0.17	%		0.05	%		(0.03	)%		0.02	%
Allowance for Loan Losses to Average Loans		2.78			2.78			2.96			2.99			2.82
Allowance for Loan Losses to Nonperforming Loans		700			512			386			330			303
Nonperforming Loans to Average Loans		0.40			0.54			0.77			0.91			0.93

(a) Liability balances include deposits and deposits that are swept to on-balance sheet liabilities.

Page 18

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	182		$	184		$	179		$	198		$	170			(1	)%		7	%
Asset Management, Administration and Commissions		774			747			733			736			692			4			12
All Other Income		149			136			130			142			121			10			23
Noninterest Revenue		1,105			1,067			1,042			1,076			983			4			12
Net Interest Income		572			561			536			534			515			2			11
TOTAL NET REVENUE		1,677			1,628			1,578			1,610			1,498			3			12
Provision for Credit Losses		(4	)		2			(1	)		2			(3	)		NM			(33	)
Credit Reimbursement to IB (a)		(30	)		(40	)		(38	)		(38	)		(38	)		25			21
NONINTEREST EXPENSE
Compensation Expense		601			502			533			522			504			20			19
Noncompensation Expense		529			574			547			644			534			(8	)		(1	)
Amortization of Intangibles		28			29			28			30			29			(3	)		(3	)
TOTAL NONINTEREST EXPENSE		1,158			1,105			1,108			1,196			1,067			5			9
Income before Income Tax Expense		493			481			433			374			396			2			24
Income Tax Expense		181			174			156			132			142			4			27
NET INCOME	$	312		$	307		$	277		$	242		$	254			2			23
REVENUE BY BUSINESS
Treasury Services	$	693		$	687		$	670		$	704		$	634			1			9
Worldwide Securities Services		984			941			908			906			864			5			14
TOTAL NET REVENUE	$	1,677		$	1,628		$	1,578		$	1,610		$	1,498			3			12
FINANCIAL RATIOS
ROE		44	%		64	%		58	%		51	%		54	%
Overhead Ratio		69			68			70			74			71
Pre-tax Margin Ratio (b)		29			30			27			23			26
FIRMWIDE BUSINESS METRICS
Assets under Custody (in billions) (c)	$	11,737		$	11,249		$	10,991		$	10,190		$	10,154			4			16
Corporate Trust Securities under Administration (in billions) (d)		7,040			6,818			6,706			6,704			6,745			3			4
Number of:
US$ ACH transactions originated (in millions)		838			787			753			727			699			6			20
Total US$ Clearing Volume (in thousands)		25,182			24,902			24,906			24,200			21,705			1			16
International Electronic Funds Transfer Volume (in thousands) (e)		33,741			29,641			22,723			20,014			17,159			14			97
Wholesale Check Volume (in millions)		852			876			928			991			940			(3	)		(9	)
Wholesale Cards Issued (in thousands) (f)		16,977			13,206			12,810			12,075			11,834			29			43

Page 19

JPMORGAN CHASE & CO.
TREASURY & SECURITIES SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
SELECTED BALANCE SHEETS (Average)
Total Assets	$	30,131		$	30,716		$	29,246		$	28,524		$	29,534			(2	)%		2	%
Loans		13,137			14,043			12,263			11,551			12,021			(6	)		9
Liability Balances (g)		196,255			179,304			174,765			171,384			160,906			9			22
Equity		2,900			1,900			1,900			1,900			1,900			53			53
Headcount (h)		25,924			24,489			24,181			24,122			23,076			6			12
TSS FIRMWIDE METRICS
Treasury Services Firmwide Revenue (i)	$	1,291		$	1,280		$	1,232		$	1,250		$	1,174			1			10
Treasury & Securities Services Firmwide Revenue (i)		2,275			2,221			2,140			2,156			2,038			2			12
Treasury Services Firmwide Overhead Ratio (j)		56	%		57	%		59	%		57	%		59	%
Treasury & Securities Services Firmwide Overhead Ratio (j)		62			61			64			67			64
Treasury Services Firmwide Liability Balances (Average) (k)	$	155,422		$	146,266		$	140,079		$	138,058		$	133,770			6			16
Treasury & Securities Services Firmwide Liability Balances (Average) (k)		266,450			248,182			239,535			236,534			226,286			7			18

FOOTNOTES

(a)	Treasury & Securities Services (“TSS”) is charged a credit reimbursement related to certain exposures managed within the IB credit portfolio on behalf of clients shared with TSS.
(b)	Pre-tax margin represents Income before Income Tax Expense divided by Total Net Revenue, which is a comprehensive measure of pre-tax performance and is another basis by which TSS management evaluates its performance and that of its competitors. Pre-tax margin is an effective measure of TSS’ earnings after all operating costs are taken into consideration.
(c)	At September 30, 2005, approximately $130 billion of Trust related assets under custody (“AUC”) were included in the total amount. Approximately 5% of total AUC are trust related.
(d)	Corporate Trust Securities under Administration include debt held in trust on behalf of third parties and debt serviced as agent.
(e)	International Electronic Funds Transfer includes non-US$ ACH and clearing volume.
(f)	Wholesale cards issued include domestic commercial card, stored value card, prepaid card, and government electronic benefit card products.
(g)	Liability balances include deposits and deposits swept to on-balance sheet liabilities.
(h)	Second quarter 2005 headcount has been restated to reflect the inclusion of international staff of Vastera.

TSS FIRMWIDE METRICS

TSS firmwide metrics include certain TSS product revenues and liability balances reported in other lines of business for customers who are also customers of those lines of business. In order to capture the firmwide impact of Treasury Services (“TS”) and TSS products and revenues, management reviews firmwide metrics such as liability balances, revenues and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.

(i)	Firmwide revenue includes TS revenue recorded in the Commercial Banking (“CB”), Regional Banking and Asset & Wealth Management lines of business (see below) and exclude FX revenues recorded in the Investment Bank (“IB”) for TSS-related FX activity. TSS firmwide FX revenue, which include FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of the IB, was $118 million for the quarter ended March 31, 2006.
(j)	Overhead ratios have been calculated based on firmwide revenues and TSS and TS expenses, respectively, including those allocated to certain other lines of business. FX revenues and expenses recorded in the IB for TSS-related FX activity are not included in this ratio.
(k)	Firmwide liability balances include TS liability balances recorded in certain other lines of business. Liability balances associated with TS customers who are also customers of the CB line of business are not included in TS liability balances.

	QUARTERLY TRENDS
											1Q06 Change
	1Q06		4Q05		3Q05		2Q05		1Q05		4Q05			1Q05
TS Revenue Reported in CB	$	550	$	546	$	517	$	502	$	497		1	%		11	%
TS Revenue Reported in Other Lines of Business		48		47		45		44		43		2			12

Page 20

JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT

FINANCIAL HIGHLIGHTS
(in millions, except ratio, ranking and headcount data)

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
INCOME STATEMENT
REVENUE
Asset Management, Administration and Commissions	$	1,222		$	1,155		$	1,065		$	994		$	975			6	%		25	%
All Other Income		116			98			117			75			104			18			12
Noninterest Revenue		1,338			1,253			1,182			1,069			1,079			7			24
Net Interest Income		246			258			267			274			282			(5	)		(13	)
TOTAL NET REVENUE		1,584			1,511			1,449			1,343			1,361			5			16
Provision for Credit Losses (a)		(7	)		(10	)		(19	)		(20	)		(7	)		30			-
NONINTEREST EXPENSE
Compensation Expense		682			578			554			509			538			18			27
Noncompensation Expense		394			431			397			383			371			(9	)		6
Amortization of Intangibles		22			24			25			25			25			(8	)		(12	)
TOTAL NONINTEREST EXPENSE		1,098			1,033			976			917			934			6			18
Income Before Income Tax Expense		493			488			492			446			434			1			14
Income Tax Expense		180			146			177			163			158			23			14
NET INCOME	$	313		$	342		$	315		$	283		$	276			(8	)		13
REVENUE BY CLIENT SEGMENT
Retail	$	442		$	420		$	415		$	363		$	346			5			28
Private Bank		441			437			421			409			422			1			5
Institutional		435			402			358			313			322			8			35
Private Client Services		266			252			255			258			271			6			(2	)
Total Net Revenue	$	1,584		$	1,511		$	1,449		$	1,343		$	1,361			5			16
FINANCIAL RATIOS
ROE		36	%		57	%		52	%		47	%		47	%
Overhead Ratio		69			68			67			68			69
Pre-tax Margin Ratio (b)		31			32			34			33			32
BUSINESS METRICS
Number of:
Client Advisors		1,439			1,430			1,417			1,409			1,390			1			4
Retirement Planning Services Participants		1,327,000			1,299,000			1,293,000			1,210,000			1,181,000			2			12
% of Customer Assets in 4 & 5 Star Funds (c)		54	%		46	%		44	%		50	%		48	%		17			13
% of AUM in 1st and 2nd Quartiles: (d) 1 Year		72	%		69	%		62	%		75	%		71	%		4			1
3 Years		75	%		68	%		72	%		72	%		73	%		10			3
5 Years		75	%		74	%		72	%		73	%		71	%		1			6
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	41,012		$	42,213		$	42,427		$	42,001		$	39,716			(3	)		3
Loans (e)		24,482			26,657			26,850			26,572			26,357			(8	)		(7	)
Deposits (e) (f)		48,066			44,205			41,453			40,774			42,043			9			14
Equity		3,500			2,400			2,400			2,400			2,400			46			46
Headcount		12,511			12,127			12,531			12,455			12,378			3			1
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	7		$	8		$	23		$	(2	)	$	(6	)		(13	)		NM
Nonperforming Loans		79			104			118			100			78			(24	)		1
Allowance for Loan Losses		119			132			148			195			214			(10	)		(44	)
Allowance for Lending Related Commitments		3			4			6			3			5			(25	)		(40	)
Net Charge-off (Recovery) Rate		0.12	%		0.12	%		0.34	%		(0.03	)%		(0.09	)%
Allowance for Loan Losses to Average Loans		0.49			0.50			0.55			0.73			0.81
Allowance for Loan Losses to Nonperforming Loans		151			127			125			195			274
Nonperforming Loans to Average Loans		0.32			0.39			0.44			0.38			0.30

(a)	Third quarter 2005 includes a $3 million special provision related to Hurricane Katrina.
(b)	Pre-tax margin represents Income before Income Tax Expense divided by Total Net Revenue, which is a comprehensive measure of pre-tax performance and is another basis by which AWM management evaluates its performance and that of its competitors. Pre-tax margin is an effective measure of AWM’s earnings, after all costs are taken into consideration.
(c)	Derived from Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.
(d)	Quartile rankings sourced from Lipper for the United States and Taiwan; Micropal for the United Kingdom, Luxembourg and Hong Kong; and Nomura for Japan.
(e)	The sale of BrownCo, which occurred on November 30, 2005, included $3.0 billion in both loans and deposits; the respective fourth quarter 2005 average balances were approximately $2.0 billion.
(f)	Reflects the transfer of certain consumer deposits from Retail Financial Services to Asset & Wealth Management.

Page 21

JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)

											Mar 31, 2006
											Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
	2006		2005		2005		2005		2005		2005			2005
Assets by Asset Class
Liquidity	$	236	$	238	$	239	$	223	$	228		(1	)%		4
Fixed Income		166		165		166		171		171		1			(3	)
Equities & Balanced		397		370		351		323		326		7			22
Alternatives		74		74		72		66		65		-			14
TOTAL ASSETS UNDER MANAGEMENT		873		847		828		783		790		3			11
Custody / Brokerage / Administration / Deposits		324		302		325		310		302		7			7
TOTAL ASSETS UNDER SUPERVISION	$	1,197	$	1,149	$	1,153	$	1,093	$	1,092		4			10
Assets by Client Segment
Institutional (a)	$	468	$	481	$	479	$	455	$	462		(3	)		1
Private Bank		137		145		142		135		138		(6	)		(1	)
Retail (a)		214		169		155		141		138		27			55
Private Client Services		54		52		52		52		52		4			4
TOTAL ASSETS UNDER MANAGEMENT	$	873	$	847	$	828	$	783	$	790		3			11
Institutional (a)	$	471	$	484	$	483	$	458	$	467		(3	)		1
Private Bank		332		318		309		300		299		4			11
Retail (a)		291		245		261		238		232		19			25
Private Client Services		103		102		100		97		94		1			10
TOTAL ASSETS UNDER SUPERVISION	$	1,197	$	1,149	$	1,153	$	1,093	$	1,092		4			10
Assets by Geographic Region
U.S. / Canada	$	564	$	562	$	548	$	527	$	550		-			3
International		309		285		280		256		240		8			29
TOTAL ASSETS UNDER MANAGEMENT	$	873	$	847	$	828	$	783	$	790		3			11
U.S. / Canada		822		805		815		776		792		2			4
International		375		344		338		317		300		9			25
TOTAL ASSETS UNDER SUPERVISION	$	1,197	$	1,149	$	1,153	$	1,093	$	1,092		4			10
Mutual Funds Assets by Asset Class
Liquidity	$	167	$	182	$	188	$	174	$	175		(8	)		(5	)
Fixed Income		48		45		39		41		45		7			7
Equity		189		150		137		114		106		26			78
TOTAL MUTUAL FUND ASSETS	$	404	$	377	$	364	$	329	$	326		7			24

(a) During the first quarter of 2006, assets under management of $22 billion from Retirement Planning Services has been reclassified from the Institutional client segment to the Retail client segment in order to be consistent with the revenue by client segment reporting.

Page 22

JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)

	QUARTERLY TRENDS
	1Q06			4Q05			3Q05			2Q05			1Q05
ASSETS UNDER SUPERVISION (continued)
Assets Under Management Rollforward
Beginning Balance	$	847		$	828		$	783		$	790		$	791
Flows:
Liquidity		(5	)		-			19			(5	)		(6	)
Fixed Income		-			2			(4	)		(2	)		4
Equities, Balanced & Alternatives		13			11			4			8			1
Market / Performance / Other Impacts (a)		18			6			26			(8	)		-
TOTAL ASSETS UNDER MANAGEMENT	$	873		$	847		$	828		$	783		$	790
Assets Under Supervision Rollforward
Beginning Balance	$	1,149		$	1,153		$	1,093		$	1,092		$	1,106
Net Asset Flows		12			15			28			-			6
Acquisitions / Divestitures (b)		-			(33	)		-			-			-
Market / Performance / Other Impacts (a)		36			14			32			1			(20	)
TOTAL ASSETS UNDER SUPERVISION	$	1,197		$	1,149		$	1,153		$	1,093		$	1,092

(a)	Includes AWM’s strategic decision to exit the Institutional Fiduciary business in the second quarter of 2005 ($12 billion).
(b)	Reflects the sale of BrownCo in the fourth quarter of 2005 ($33 billion).

Page 23

JPMORGAN CHASE & CO.
CORPORATE

FINANCIAL HIGHLIGHTS
(in millions)

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
INCOME STATEMENT
REVENUE
Principal Transactions	$	196		$	229		$	262		$	289		$	743			(14	)%		(74	)%
Securities Gains (Losses)		(158	)		(547	)		(43	)		6			(902	)		71			82
All Other Income (a)		101			1,360			38			111			73			(93	)		38
Noninterest Revenue		139			1,042			257			406			(86	)		(87	)		NM
Net Interest Income		(545	)		(652	)		(648	)		(772	)		(673	)		16			19
TOTAL NET REVENUE		(406	)		390			(391	)		(366	)		(759	)		NM			47
Provision for Credit Losses (b)		-			-			13			1			(4	)		NM			NM
NONINTEREST EXPENSE
Compensation Expense		685			865			739			772			774			(21	)		(11	)
Noncompensation Expense (c)		608			766			776			2,718			1,703			(21	)		(64	)
Merger Costs		71			77			221			279			145			(8	)		(51	)
Subtotal		1,364			1,708			1,736			3,769			2,622			(20	)		(48	)
Net Expenses Allocated to Other Businesses		(1,038	)		(1,108	)		(1,133	)		(1,142	)		(1,142	)		6			9
TOTAL NONINTEREST EXPENSE		326			600			603			2,627			1,480			(46	)		(78	)
Income before Income Tax Expense		(732	)		(210	)		(1,007	)		(2,994	)		(2,235	)		(249	)		67
Income Tax (Benefit)		(316	)		(208	)		(393	)		(1,173	)		(900	)		(52	)		65
NET INCOME (LOSS)	$	(416	)	$	(2	)	$	(614	)	$	(1,821	)	$	(1,335	)		NM			69
MEMO:
TOTAL NET REVENUE
Private Equity	$	204		$	251		$	272		$	255		$	744			(19	)		(73	)
Treasury		(464	)		(984	)		(486	)		(457	)		(1,344	)		53			65
Corporate Other (a)		(146	)		1,123			(177	)		(164	)		(159	)		NM			8
TOTAL NET REVENUE	$	(406	)	$	390		$	(391	)	$	(366	)	$	(759	)		NM			47
NET INCOME (LOSS)
Private Equity	$	103		$	121		$	141		$	122		$	437			(15	)		(76	)
Treasury		(270	)		(574	)		(300	)		(323	)		(828	)		53			67
Corporate Other (c)		(205	)		499			(318	)		(1,447	)		(854	)		NM			76
Merger Costs		(44	)		(48	)		(137	)		(173	)		(90	)		8			51
TOTAL NET INCOME (LOSS)	$	(416	)	$	(2	)	$	(614	)	$	(1,821	)	$	(1,335	)		NM			69

(a)	Includes the gain of $1,254 million on the sale of BrownCo in the fourth quarter of 2005.
(b)	Third quarter 2005 includes a $12 million special provision related to Hurricane Katrina.
(c)	Includes litigation reserve charges of $1,872 million in the second quarter of 2005 and $900 million in the first quarter of 2005 relating to the settlement of Enron and WorldCom class action litigation and for certain other material legal proceedings. In the first quarter of 2006 and fourth quarter of 2005, insurance recoveries relating to certain material litigation of $98 million and $208 million, respectively, were recorded.

Page 24

JPMORGAN CHASE & CO.
CORPORATE

FINANCIAL HIGHLIGHTS, CONTINUED
(in millions)

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
SUPPLEMENTAL
TREASURY
Securities Gains (Losses) (a)	$	(158	)	$	(547	)	$	(43	)	$	6		$	(902	)		71	%		82	%
Investment Securities Portfolio (Average)		39,989			37,814			39,351			43,652			65,646			6			(39	)
Investment Securities Portfolio (Ending)		46,093			32,253			42,754			34,319			46,943			43			(2	)
PRIVATE EQUITY
Private Equity Gains (Losses)
Direct Investments
Realized Gains	$	207		$	351		$	430		$	555		$	633			(41	)		(67	)
Write-ups / (Write-downs)		10			(74	)		(71	)		(133	)		206		NM				(95	)
Mark-to-Market Gains (Losses)		4			(32	)		(64	)		(153	)		(89	)	NM			NM
Total Direct Investments		221			245			295			269			750			(10	)		(71	)
Third-Party Fund Investments		16			44			18			31			39			(64	)		(59	)
Total Private Equity Gains (b)	$	237		$	289		$	313		$	300		$	789			(18	)		(70	)
Private Equity Portfolio Information
Direct Investments
Publicly-Held Securities
Carrying Value	$	501		$	479		$	563		$	761		$	1,149			5			(56	)
Cost		395			403			451			580			808			(2	)		(51	)
Quoted Public Value		677			683			795			1,082			1,713			(1	)		(60	)
Privately-Held Direct Securities
Carrying Value		5,077			5,028			4,793			5,037			5,490			1			(8	)
Cost		6,501			6,463			6,187			6,362			6,689			1			(3	)
Third-Party Fund Investments
Carrying Value		675			669			561			552			550			1			23
Cost		1,000			1,003			920			921			934			-			7
Total Private Equity Portfolio - Carrying Value	$	6,253		$	6,176		$	5,917		$	6,350		$	7,189			1			(13	)
Total Private Equity Portfolio - Cost	$	7,896		$	7,869		$	7,558		$	7,863		$	8,431			-			(6	)

(a)	Losses in the first quarter of 2006 and the fourth quarter of 2005 reflect repositioning of the Treasury investment securities portfolio. Losses in the first quarter of 2005 were primarily due to the sale of $20 billion of investment securities during the month of March 2005. Excludes gains/losses on securities used to manage risk associated with MSRs.
(b)	Included in Principal Transactions.

Page 25

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

											Mar 31, 2006
											Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
	2006		2005		2005		2005		2005		2005			2005
CREDIT EXPOSURE
WHOLESALE (a)
Loans - U.S.	$	118,501	$	112,065	$	113,048	$	110,096	$	101,261		6	%		17	%
Loans - Non-U.S.		46,298		38,046		38,543		39,492		36,140		22			28
TOTAL WHOLESALE LOANS - REPORTED		164,799		150,111		151,591		149,588		137,401		10			20
CONSUMER
Home Equity		75,241		73,866		72,504		71,239		67,703		2			11
Mortgage		57,690		58,959		60,995		59,020		56,114		(2	)		3
Auto Loans and Leases		44,600		46,081		48,444		50,356		55,492		(3	)		(20	)
All Other Loans		25,060		18,393		18,491		17,312		19,906		36			26
Total Retail Financial Services		202,591		197,299		200,434		197,927		199,215		3			2
Credit Card Receivables - Reported		64,691		71,738		68,479		68,510		66,053		(10	)		(2	)
TOTAL CONSUMER LOANS - REPORTED		267,282		269,037		268,913		266,437		265,268		(1	)		1
TOTAL LOANS - REPORTED		432,081		419,148		420,504		416,025		402,669		3			7
Credit Card Securitizations		69,580		70,527		69,095		68,808		67,328		(1	)		3
TOTAL LOANS - MANAGED		501,661		489,675		489,599		484,833		469,997		2			7
Derivative Receivables		52,750		49,787		54,389		55,015		60,388		6			(13	)
Interests in Purchased Receivables (b)		29,029		29,740		28,766		27,887		28,484		(2	)		2
TOTAL CREDIT-RELATED ASSETS		583,440		569,202		572,754		567,735		558,869		3			4
Wholesale Lending-Related Commitments		322,575		323,764		316,984		314,034		316,282		-			2
TOTAL	$	906,015	$	892,966	$	889,738	$	881,769	$	875,151		1			4
Memo: Total by Category
Total Wholesale Exposure (c)	$	569,153	$	553,402	$	551,730	$	546,524	$	542,555		3			5
Total Consumer Managed Loans (d)		336,862		339,564		338,008		335,245		332,596		(1	)		1
Total	$	906,015	$	892,966	$	889,738	$	881,769	$	875,151		1			4
Risk Profile of Wholesale Credit Exposure:
Investment-Grade (e)	$	445,848	$	435,303	$	432,459	$	423,813	$	430,967		2			3
Noninvestment-Grade: (e)
Noncriticized		98,354		95,375		98,380		100,377		99,906		3			(2	)
Criticized Performing (f)		4,325		4,222		4,857		4,492		4,798		2			(10	)
Criticized Nonperforming (f)		731		950		1,337		1,502		1,588		(23	)		(54	)
Total Noninvestment-Grade	$	103,410	$	100,547	$	104,574	$	106,371	$	106,292		3			(3	)
Held-for-Sale:
Held-for-Sale Wholesale Loans	$	19,555	$	17,211	$	14,339	$	15,962	$	4,977		14			293
Purchased Nonperforming Held-for-Sale Wholesale Loans (g)		340		341		358		378		319		-			7
Total Held-for-Sale	$	19,895	$	17,552	$	14,697	$	16,340	$	5,296		13			276
Total Wholesale Exposure	$	569,153	$	553,402	$	551,730	$	546,524	$	542,555		3			5

(a)	Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset & Wealth Management.
(b)	These represent undivided interests in pools of receivables and similar types of assets.
(c)	Represents Total Wholesale Loans, Derivative Receivables, Interests in Purchased Receivables and Wholesale Lending-Related Commitments.
(d)	Represents Total Consumer Loans plus Credit Card Securitizations, excluding consumer lending-related commitments. Includes loans held-for-sale.
(e)	Excludes loans held-for-sale.
(f)	For the quarter ended March 31, 2005, the Firm conformed its methodology for reporting Criticized exposure. Excluding this change in methodology, Criticized exposure would have been $7,632 million in the first quarter of 2005.
(g)	Represents distressed wholesale loans purchased as part of IB’s proprietary activities.
Note:	The risk profile is based on JPMorgan Chase’s internal risk ratings, which generally correspond to the following ratings as defined by Standard & Poor’s / Moody’s:
	Investment-Grade: AAA / Aaa to BBB- / Baa3
	Noninvestment-Grade: BB+ / Ba1 and below

Page 26

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

																Mar 31, 2006
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2006			2005			2005			2005			2005			2005			2005
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS
Loans - U.S.	$	572		$	819		$	914		$	959		$	1,005			(30	)%		(43	)%
Loans - Non-U.S.		165			173			278			292			324			(5	)		(49	)
TOTAL WHOLESALE LOANS-REPORTED (a)		737			992			1,192			1,251			1,329			(26	)		(45	)
CONSUMER LOANS
Home Equity		451			422			394			368			389			7			16
Mortgage		451			442			316			294			300			2			50
Auto Loans and Leases		157			193			202			189			169			(19	)		(7	)
All Other Loans		290			281			291			281			292			3			(1	)
Total Retail Financial Services		1,349			1,338			1,203			1,132			1,150			1			17
Credit Card Receivables - Reported		12			13			9			9			8			(8	)		50
TOTAL CONSUMER LOANS-REPORTED		1,361			1,351			1,212			1,141			1,158			1			18
TOTAL LOANS REPORTED (a)		2,098			2,343			2,404			2,392			2,487			(10	)		(16	)
Derivative Receivables		49			50			231			234			241			(2	)		(80	)
Assets Acquired in Loan Satisfactions		201			197			204			206			221			2			(9	)
TOTAL NONPERFORMING ASSETS (a)	$	2,348		$	2,590		$	2,839		$	2,832		$	2,949			(9	)		(20	)
PURCHASED HELD-FOR-SALE WHOLESALE LOANS (b)	$	340		$	341		$	358		$	378		$	319			-			7
TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.49	%		0.56	%		0.57	%		0.57	%		0.62	%
NONPERFORMING ASSETS BY LOB
Investment Bank	$	484		$	645		$	934		$	946		$	1,056			(25	)		(54	)
Retail Financial Services		1,537			1,518			1,387			1,319			1,351			1			14
Card Services		12			13			9			9			8			(8	)		50
Commercial Banking		214			288			388			452			452			(26	)		(53	)
Treasury & Securities Services		22			22			3			6			4			-			450
Asset & Wealth Management		79			104			118			100			78			(24	)		1
TOTAL	$	2,348		$	2,590		$	2,839		$	2,832		$	2,949			(9	)		(20	)

(a)	Excludes purchased held-for-sale (“HFS”) wholesale loans.
(b)	Represents distressed wholesale loans purchased as part of IB’s proprietary activities and are excluded from nonperforming assets.

Page 27

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
GROSS CHARGE-OFFS
Wholesale Loans	$	39		$	123		$	40		$	31		$	61			(68	)%		(36	)%
Consumer (Excluding Card)		178			216			193			167			219			(18	)		(19	)
Credit Card Receivables - Reported		665			1,374			881			811			753			(52	)		(12	)
Total Loans - Reported		882			1,713			1,114			1,009			1,033			(49	)		(15	)
Credit Card Securitizations		527			1,243			999			1,060			1,034			(58	)		(49	)
Total Loans - Managed		1,409			2,956			2,113			2,069			2,067			(52	)		(32	)
RECOVERIES
Wholesale Loans		59			99			80			83			70			(40	)		(16	)
Consumer (Excluding Card)		57			54			49			53			67			6			(15	)
Credit Card Receivables - Reported		98			200			115			100			80			(51	)		23
Total Loans - Reported		214			353			244			236			217			(39	)		(1	)
Credit Card Securitizations		78			181			132			130			117			(57	)		(33	)
Total Loans - Managed		292			534			376			366			334			(45	)		(13	)
NET CHARGE-OFFS
Wholesale Loans		(20	)		24			(40	)		(52	)		(9	)		NM			(122	)
Consumer (Excluding Card)		121			162			144			114			152			(25	)		(20	)
Credit Card Receivables - Reported		567			1,174			766			711			673			(52	)		(16	)
Total Loans - Reported		668			1,360			870			773			816			(51	)		(18	)
Credit Card Securitizations		449			1,062			867			930			917			(58	)		(51	)
Total Loans - Managed	$	1,117		$	2,422		$	1,737		$	1,703		$	1,733			(54	)		(36	)
NET CHARGE-OFF RATES - ANNUALIZED
Wholesale Loans (a)		(0.06	)%		0.07	%		(0.12	)%		(0.16	)%		(0.03	)%
Consumer (Excluding Card) (b)		0.27			0.36			0.31			0.25			0.34
Credit Card Receivables - Reported		3.36			6.75			4.41			4.25			4.25
Total Loans - Reported (a) (b)		0.69			1.39			0.89			0.82			0.88
Credit Card Securitizations		2.62			6.03			4.99			5.48			5.36
Total Loans - Managed (a) (b)		0.98			2.09			1.51			1.53			1.58
Memo: Credit Card - Managed		2.99			6.39			4.70			4.87			4.83

(a)	Average wholesale loans held-for-sale were $19,480 million, $15,581 million, $13,045 million, $11,601 million and $7,674 million for the quarters ended March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005, and March 31, 2005, respectively. These amounts are not included in the net charge-off rates.
(b)	Average consumer loans (excluding Card) held-for-sale were $16,362 million, $16,505 million, $15,707 million, $14,620 million and $15,861 million for the quarters ended March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are not included in the net charge-off rates.

Page 28

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	7,090		$	7,220		$	6,794		$	6,935		$	7,320			(2	)%		(3	)%
Net Charge-Offs		(668	)		(1,360	)		(870	)		(773	)		(816	)		51			18
Provision for Loan Losses		847			1,219			1,289			636			431			(31	)		97
Other		6			11			7			(4	)		-			(45	)		NM
Ending Balance	$	7,275		$	7,090		$	7,220		$	6,794		$	6,935			3			5
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	400		$	395		$	439		$	488		$	492			1			(19	)
Provision for Lending-Related Commitments		(16	)		5			(44	)		(49	)		(4	)		NM			(300	)
Ending Balance	$	384		$	400		$	395		$	439		$	488			(4	)		(21	)
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset Specific	$	118		$	203		$	341		$	314		$	385			(42	)		(69	)
Formula - Based (a)
Statistical Calculation		1,713			1,629			1,590			1,604			1,448			5			18
Adjustments to the Statistical Calculation		837			621			659			686			894			35			(6	)
Total Wholesale		2,668			2,453			2,590			2,604			2,727			9			(2	)
Consumer
Formula - Based
Statistical Calculation		3,288			3,422			3,432			3,064			3,113			(4	)		6
Adjustments to the Statistical Calculation		1,319			1,215			1,198			1,126			1,095			9			20
Total Consumer		4,607			4,637			4,630			4,190			4,208			(1	)		9
Total Allowance for Loan Losses		7,275			7,090			7,220			6,794			6,935			3			5
Allowance for Lending-Related Commitments		384			400			395			439			488			(4	)		(21	)
Total Allowance for Credit Losses	$	7,659		$	7,490		$	7,615		$	7,233		$	7,423			2			3
Wholesale Allowance for Loan Losses to Total Wholesale Loans (b)		1.84	%		1.85	%		1.89	%		1.95	%		2.06	%
Consumer Allowance for Loan Losses to Total Consumer Loans (c)		1.82			1.84			1.84			1.65			1.69
Allowance for Loan Losses to Total Loans (b) (c)		1.83			1.84			1.86			1.76			1.82
Allowance for Loan Losses to Total Nonperforming Loans (d)		361			321			316			287			283
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,117		$	907		$	1,002		$	971		$	1,191			23			(6	)
Retail Financial Services		1,333			1,363			1,375			1,135			1,168			(2	)		14
Card Services		3,274			3,274			3,255			3,055			3,040			-			8
Commercial Banking		1,415			1,392			1,423			1,431			1,312			2			8
Treasury & Securities Services		6			11			6			7			5			(45	)		20
Asset & Wealth Management		119			132			148			195			214			(10	)		(44	)
Corporate		11			11			11			-			5			-			120
Total	$	7,275		$	7,090		$	7,220		$	6,794		$	6,935			3			5

(a)	During the second quarter 2005, the Firm refined its historical and market based inputs used for estimating the Formula Based component of the allowance. These refinements resulted in an increase to the Statistical Calculation and a decrease to the Adjustments to the Statistical Calculation, the component of the allowance that covers estimate imprecision.
(b)	Loans held-for-sale were $19,895 million, $17,552 million, $14,697 million, $16,340 million and $5,296 million at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are not included in the allowance coverage ratios.
(c)	Loans held-for-sale were $14,343 million, $16,598 million, $17,695 million, $13,112 million and $16,532 million at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are not included in the allowance coverage ratios.
(d)	Nonperforming loans held-for-sale were $84 million, $136 million, $116 million, $28 million and $33 million at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005, respectively. These amounts are not included in the allowance coverage ratios.

Page 29

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

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	189		$	(98	)	$	(32	)	$	(271	)	$	(356	)		NM			NM
Commercial Banking		16			(10	)		(11	)		116			(8	)		NM			NM
Treasury & Securities Services		(4	)		3			(1	)		2			(5	)		NM			20	%
Asset & Wealth Management		(6	)		(8	)		(22	)		(18	)		(7	)		25	%		14
Corporate		-			-			13			1			(4	)		NM			NM
Total Wholesale		195			(113	)		(53	)		(170	)		(380	)		NM			NM
Retail Financial Services		85			158			376			95			92			(46	)		(8	)
Card Services		567			1,174			966			711			719			(52	)		(21	)
Total Consumer		652			1,332			1,342			806			811			(51	)		(20	)
Total Provision for Loan Losses		847			1,219			1,289			636			431			(31	)		97
LENDING-RELATED COMMITMENTS
Investment Bank	$	(6	)	$	15		$	(14	)	$	(72	)	$	(10	)		NM			40
Commercial Banking		(9	)		(7	)		(35	)		26			2			(29	)		NM
Treasury & Securities Services		-			(1	)		-			-			2			NM			NM
Asset & Wealth Management		(1	)		(2	)		3			(2	)		-			50			NM
Corporate		-			-			-			-			-			NM			NM
Total Wholesale		(16	)		5			(46	)		(48	)		(6	)		NM			(167	)
Retail Financial Services		-			-			2			(1	)		2			NM			NM
Card Services		-			-			-			-			-			NM			NM
Total Consumer		-			-			2			(1	)		2			NM			NM
Total Provision for Lending-Related Commitments		(16	)		5			(44	)		(49	)		(4	)		NM			(300	)
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	183		$	(83	)	$	(46	)	$	(343	)	$	(366	)		NM			NM
Commercial Banking (a)		7			(17	)		(46	)		142			(6	)		NM			NM
Treasury & Securities Services		(4	)		2			(1	)		2			(3	)		NM			(33	)
Asset & Wealth Management (a)		(7	)		(10	)		(19	)		(20	)		(7	)		30			-
Corporate (a)		-			-			13			1			(4	)		NM			NM
Total Wholesale		179			(108	)		(99	)		(218	)		(386	)		NM			NM
Retail Financial Services (a)		85			158			378			94			94			(46	)		(10	)
Card Services (a)		567			1,174			966			711			719			(52	)		(21	)
Total Consumer		652			1,332			1,344			805			813			(51	)		(20	)
Total Provision for Credit Losses		831			1,224			1,245			587			427			(32	)		95
Securitized Credit Losses		449			1,062			867			930			917			(58	)		(51	)
Managed Provision for Credit Losses	$	1,280		$	2,286		$	2,112		$	1,517		$	1,344			(44	)		(5	)

(a) Third quarter 2005 includes a $400 million special provision related to Hurricane Katrina allocated as follows: Retail Financial Services $250 million, Card Services $100 million, Commercial Banking $35 million, Asset & Wealth Management $3 million and Corporate $12 million.

Page 30

JPMORGAN CHASE & CO.
CAPITAL

(in millions, except per share and ratio data)

	QUARTERLY TRENDS
																1Q06 Change
	1Q06			4Q05			3Q05			2Q05			1Q05			4Q05			1Q05
COMMON SHARES OUTSTANDING
Weighted-Average Basic Shares Outstanding		3,472.7			3,472.1			3,485.0			3,493.0			3,517.5			-	%		(1	)%
Weighted-Average Diluted Shares Outstanding		3,570.8			3,563.9			3,547.7			3,548.3			3,569.8			-			-
Common Shares Outstanding - at Period End		3,473.0			3,486.7			3,503.4			3,514.0			3,525.3			-			(1	)
Cash Dividends Declared per Share	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34			-			-
Book Value per Share		31.19			30.71			30.26			29.95			29.78			2			5
Dividend Payout		39	%		44	%		48	%		122	%		54	%
NET INCOME	$	3,081		$	2,698		$	2,527		$	994		$	2,264			14			36
Preferred Dividends		4			2			3			3			5			100			(20	)
Net Income Applicable to Common Stock	$	3,077		$	2,696		$	2,524		$	991		$	2,259			14			36
NET INCOME PER SHARE
Basic	$	0.89		$	0.78		$	0.72		$	0.28		$	0.64			14			39
Diluted		0.86			0.76			0.71			0.28			0.63			13			37
SHARE PRICE
High	$	42.43		$	40.56		$	35.95		$	36.50		$	39.69			5			7
Low		37.88			32.92			33.31			33.35			34.32			15			10
Close		41.64			39.69			33.93			35.32			34.60			5			20
STOCK REPURCHASE PROGRAM (a) (b)
Aggregate Repurchases	$	1,291.0		$	1,000.0		$	500.0		$	593.7		$	1,315.6			29			(2	)
Common Shares Repurchased		31.8			26.3			14.4			16.8			36.0			21			(12	)
Average Purchase Price	$	40.54		$	38.05		$	34.61		$	35.32		$	36.57			7			11
CAPITAL RATIOS
Tier 1 Capital	$	73,085	(c)	$	72,474		$	70,745		$	69,782		$	69,435			1			5
Total Capital		103,800	(c)		102,437			98,254			96,089			96,378			1			8
Risk-Weighted Assets		855,564	(c)		850,643			866,289			850,241			811,822			1			5
Adjusted Average Assets		1,195,072	(c)		1,152,546			1,143,449			1,123,609			1,110,058			4			8
Tier 1 Capital Ratio		8.5%	(c)		8.5	%		8.2	%		8.2	%		8.6	%
Total Capital Ratio		12.1	(c)		12.0			11.3			11.3			11.9
Tier 1 Leverage Ratio		6.1	(c)		6.3			6.2			6.2			6.3
INTANGIBLE ASSETS
Goodwill	$	43,899		$	43,621		$	43,555		$	43,537		$	43,440			1			1
Mortgage Servicing Rights		7,539			6,452			6,057			5,026			5,663			17			33
Purchased Credit Card Relationships		3,243			3,275			3,352			3,528			3,703			(1	)		(12	)
All Other Intangibles		4,832			4,832			5,139			5,319			5,514			-			(12	)
Total Intangibles	$	59,513		$	58,180		$	58,103		$	57,410		$	58,320			2			2

(a)	On March 21, 2006, JPMorgan Chase announced that its Board of Directors had authorized the repurchase of up to $8 billion of the Firm’s common shares. The new authorization commenced immediately and replaced the Firm’s previous repurchase authorization. The authorization will be utilized at management’s discretion and the timing of purchases and the exact number of shares purchased will depend on market conditions and alternative investment opportunities.
(b)	Excludes commission costs.
(c)	Estimated

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JPMORGAN CHASE & CO.
Glossary of Terms

ACH: Automated Clearing House

Assets Under Management: Represent assets actively managed by Asset & Wealth Management on behalf of institutional, private banking, private client services and retail clients. Excludes assets managed by American Century Companies, Inc., in which the Firm has a 43% ownership interest.

Assets Under Supervision: Represent assets under management as well as custody, brokerage, administration and deposit accounts.

Average Managed Assets: Refers to total assets on the Firm’s balance sheet plus credit card receivables that have been securitized.

Contractual Credit Card Charge-off: In accordance with the Federal Financial Institutions Examination Council Policy, credit card loans are charged-off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification of the filing of bankruptcy, whichever is earlier.

Corporate: Includes Private Equity, Treasury and Corporate Other, which includes other centrally managed expenses.

Managed Basis: Includes reclassifications related to credit card securitizations and taxable equivalents as described below. Management uses certain non-GAAP financial measures at the business segment level because it believes these non-GAAP financial measures provide information to investors in understanding the underlying operational performance and trends of the particular business segment and facilitate a comparison of the business segment with the performance of competitors.

Credit Card Securitizations: In the case of Card Services, managed basis excludes the impact of credit card securitizations on total net revenue, the provision for credit losses, net charge-offs and loan receivables. Through securitization, the Firm transforms a portion of its credit card receivables into securities, which are sold to investors. The credit card receivables are removed from the Consolidated balance sheets through the transfer of the receivables to a trust, and the sale of undivided interests to investors that entitle the investors to specific cash flows generated from the credit card receivables. The Firm retains the remaining undivided interests as seller’s interests, which are recorded in Loans on the Consolidated balance sheets. A gain or loss on the sale of credit card receivables to investors is recorded in Other Income. Securitization also affects the Firm’s Consolidated statements of income as interest income, certain fee revenue, recoveries in excess of interest paid to the investors, gross credit losses and other trust expenses related to the securitized receivables are all reclassified into credit card income.

Tax-Equivalent Basis: Noninterest revenue and net interest income for each of the segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from tax exempt securities and investments that receive tax credits are presented in the managed results on a basis comparable to taxable securities and investments. This non-GAAP financial measure allows management to assess the comparability of revenues arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense.

Managed Credit Card Receivables: Refers to credit card receivables on the Firm’s balance sheet plus credit card receivables that have been securitized.

NA: Data is not applicable for the period presented.

NM: Not meaningful

Overhead Ratio: Noninterest expense as a percentage of total net revenue.

Principal Transactions: Represents Trading revenue, primarily in the Investment Bank, plus Private equity gains (losses), primarily in the Private Equity business in Corporate.

Reported Basis: Financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reported basis includes the impact of credit card securitizations, but excludes the impact of taxable equivalent adjustments.

Segment Results: All periods are on a comparable basis, although restatements may occur in future periods to reflect further alignment of management accounting policies or changes in organizational structures between businesses.

Unaudited: The financial statements and information included throughout this document are unaudited and have not been subjected to auditing procedures sufficient to permit an independent certified public accountant to express an opinion.

Value-at-Risk (“VAR”): A measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.

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JPMORGAN CHASE & CO.
Line of Business Metrics

Investment Banking

IB REVENUES ARE COMPRISED OF THE FOLLOWING:

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

2. Fixed income markets includes client and portfolio management revenue related to both market-making and proprietary risk-taking across global fixed income markets, including government and corporate debt, foreign exchange, interest rate and commodities markets.

3. Equities markets includes client and portfolio management revenue related to market-making and proprietary risk-taking across global equity products, including cash instruments, derivatives and convertibles.

4. Credit portfolio revenue includes Net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring, for IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities, and changes in the credit valuation adjustment (“CVA”), which is the component of the fair value of a derivative that reflects the credit quality of the counterparty.

Retail Financial Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN REGIONAL BANKING:

1. Personal bankers — Retail branch office personnel who acquire, retain and expand new and existing customer relationships by assessing customer needs and recommending and selling appropriate banking products and services.

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

MORTGAGE BANKING REVENUES ARE COMPRISED OF THE FOLLOWING:

1. Production income includes Mortgage Servicing Rights created from the sales of loans, net gains or losses on the sales of loans, and other production-related fees. Also includes revenue associated with originations of subprime mortgage loans.

2. Mortgage servicing income

     a) Servicing revenue represents all gross income earned from servicing third party mortgage loans including stated service fee, excess service fees, late fees, and other ancillary fees. Also includes income associated with the servicing of subprime mortgages.

     b) Changes in MSR asset fair value due to:

            — inputs or assumptions in the model includes rates and other market based factors. Also includes updates to assumptions used in the MSR valuation process and changes in the value of servicing assets associated with subprime loans.

            — other changes in fair value includes any factors other than those noted in the definition above. The single largest component of this line item is the change in MSR value due to servicing portfolio runoff (or time decay). For periods prior to January 1, 2006, this amount represents MSR asset amortization expense under SFAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities — a replacement of FASB Statement No. 125. Includes the results of both prime and subprime servicing assets.

            — derivative valuation adjustments and other represents fair value adjustments to the derivatives and other instruments used to hedge the MSR asset.

Retail Financial Services (continued)

MORTGAGE BANKING’S ORIGINATION CHANNELS ARE COMPRISED OF THE FOLLOWING:

1. Retail — Borrowers who are buying or refinancing a home are directly contacted by a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by real estate brokers, home builders or other third parties.

2. Wholesale — A third-party mortgage broker refers loan applications to a mortgage banker at the Firm. Brokers are independent loan originators that specialize in finding and counseling borrowers but do not provide funding for loans.

3. Correspondent negotiated transactions (“CNT”) — Mid- to large-sized mortgage lenders, banks and bank-owned mortgage companies sell servicing to the Firm on an as-originated basis. These transactions supplement traditional production channels and provide growth opportunities in the servicing portfolio in stable and rising-rate periods.

Card Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN CARD SERVICES:

1. Charge volume — Represents the dollar amount of cardmember purchases, balance transfers and cash advance activity.

2. Net accounts opened — Includes originations, portfolio purchases and sales.

3. Merchant acquiring business — Represents an entity that processes payments for merchants. JPMorgan Chase is a partner in Chase Paymentech Solutions, LLC.

4. Bank card volume — Represents the dollar amount of transactions processed for the merchants.

5. Total transactions — Represents the number of transactions and authorizations processed for the merchants.

Commercial Banking

COMMERCIAL BANKING REVENUES ARE COMPRISED OF THE FOLLOWING:

1. Lending includes a variety of financing alternatives, which are often provided on a basis secured by receivables, inventory, equipment, real estate or other assets. Products include Term loans, Revolving lines of credit, Bridge financing, Asset-backed structures, and Leases.

2. Treasury services includes a broad range of products and services enabling clients to transfer, invest and manage the receipt and disbursement of funds, while providing the related information reporting. These products and services include U.S. dollar and multi-currency clearing, ACH, Lockbox, Disbursement and reconciliation services, Check deposits, Other check and currency-related services, Trade finance and logistics solutions, Commercial card, and Deposit products, sweeps and money market mutual funds.

3. Investment banking products provide clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through Loan syndications, Investment-grade debt, Asset-backed securities, Private placements, High-yield bonds, Equity underwriting, Advisory, Interest rate derivatives, and Foreign exchange hedges.

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN COMMERCIAL BANKING:

1. Liability balances include deposits and deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, fed funds purchases, and repurchase agreements).

2. IB revenues, gross — Represents 100% of investment banking product revenue related to Commercial Bank customers that is shared between the Commercial and Investment Banks.

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JPMORGAN CHASE & CO.
Line of Business Metrics (continued)

Treasury & Securities Services

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

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN TREASURY & SECURITIES SERVICES:

Liability balances include deposits and deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, fed funds purchases, and repurchase agreements).

Asset & Wealth Management

AWM’s CLIENT SEGMENTS ARE COMPRISED OF THE FOLLOWING:

1. Institutional serves large and mid-size corporate and public institutions, endowments and foundations, and governments globally. AWM offers these institutions comprehensive global investment services, including investment management across asset classes, pension analytics, asset liability management, active risk budgeting and overlay strategies.

2. The Private bank addresses every facet of wealth management for ultra-high-net-worth individuals and families worldwide, including investment management, capital markets and risk management, tax and estate planning, banking, capital raising and specialty wealth advisory services.

3. Retail provides customers worldwide with investment management services and retirement planning and administration through third-party and direct distribution channels.

4. Private client services offers high-net-worth individuals, families and business owners comprehensive wealth management solutions that include financial planning, personal trust, investment and banking products and services.

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