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): October 18, 2006

JPMORGAN CHASE & CO.

(Exact name of registrant as specified in its charter)

Delaware	1-5805	13-2624428
(State or Other Jurisdiction of	(Commission File Number)	(IRS Employer
Incorporation)		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
EX-99.2: EARNINGS RELEASE FINANCIAL SUPPLEMENT

Item 2.02 Results of Operations and Financial Condition

On October 18, 2006, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2006 third quarter net income of $3.3 billion, or $0.92 per share, compared with net income of $2.5 billion, or $0.71 per share, for the third quarter of 2005. A copy of the 2006 third 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.

Each of the Exhibits provided with this Form 8-K shall be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended.

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 — Third Quarter 2006 Results
99.2	JPMorgan Chase & Co. Earnings Release Financial Supplement — Third Quarter 2006

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 Quarterly Reports on Form 10-Q for the quarters ended June 30, 2006 and March 31, 2006 (as amended), and in the 2005 Annual Report on Form 10-K for the year ended December 31, 2005 (as amended), 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: October 18, 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 — Third Quarter 2006 Results
99.2	JPMorgan Chase & Co. Earnings Release Financial Supplement — Third Quarter 2006

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EX-12.1

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges

Nine months ended September 30, (in millions, except ratios)	2006
Excluding Interest on Deposits
Income from continuing operations before income taxes	$	14,712
Fixed charges:
Interest expense		14,724
One-third of rents, net of income from subleases (a)		261
Total fixed charges		14,985
Less: Equity in undistributed income of affiliates		(114	)
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest	$	29,583
Fixed charges, as above	$	14,985
Ratio of earnings to fixed charges		1.97
Including Interest on Deposits
Fixed charges, as above	$	14,985
Add: Interest on deposits		12,140
Total fixed charges and interest on deposits	$	27,125
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest, as above	$	29,583
Add: Interest on deposits		12,140
Total income from continuing operations before income taxes, fixed charges and interest on deposits	$	41,723
Ratio of earnings to fixed charges		1.54

(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

Nine months ended September 30, (in millions, except ratios)	2006
Excluding Interest on Deposits
Income from continuing operations before income taxes	$	14,712
Fixed charges:
Interest expense		14,724
One-third of rents, net of income from subleases (a)		261
Total fixed charges		14,985
Less: Equity in undistributed income of affiliates		(114	)
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest	$	29,583
Fixed charges, as above	$	14,985
Preferred stock dividends (pre-tax)		6
Fixed charges including preferred stock dividends	$	14,991
Ratio of earnings to fixed charges and preferred stock dividend requirements		1.97
Including Interest on Deposits
Fixed charges including preferred stock dividends, as above	$	14,991
Add: Interest on deposits		12,140
Total fixed charges including preferred stock dividends and interest on deposits	$	27,131
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest, as above	$	29,583
Add: Interest on deposits		12,140
Total income from continuing operations before income taxes, fixed charges and interest on deposits	$	41,723
Ratio of earnings to fixed charges and preferred stock dividend requirements		1.54

(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 NET INCOME OF $3.3 BILLION,
OR $0.92 PER SHARE, FOR THE THIRD QUARTER OF 2006

• Investment Bank generates record fees and strong market results

• Asset & Wealth Management and Treasury & Securities Services generate double-digit earnings growth

• Results continue to benefit from favorable credit environment

• New York Tri-state consumer conversion successfully completed

• Completed the acquisition of The Bank of New York’s retail business on October 1st

New York, October 18, 2006 — JPMorgan Chase & Co. (NYSE: JPM) today reported 2006 third-quarter net income of $3.3 billion, or $0.92 per share compared with net income of $2.5 billion, or $0.71 per share, for the third quarter of 2005. The prior-year quarter includes a special provision for credit losses related to Hurricane Katrina of $248 million after-tax, or $0.07 per share. In addition, after-tax merger expenses of $30 million and $137 million were recorded in each period, respectively.

Jamie Dimon, Chief Executive Officer, said, “We are pleased with our results, as earnings improved substantially versus the prior year. It is gratifying that our focus on improving each of our businesses is becoming evident, although we still have much work to do. Earnings benefited from record Investment Banking fees and strong markets results as well as from continued improvement in the Corporate segment. Retail Banking’s performance was affected by weak results in Mortgage Banking. Key business drivers, such as assets under management, assets under custody, credit card accounts and sales volume, checking accounts and loans, all showed continued momentum. Our overall results continue to benefit from a favorable credit environment, which we do not expect to continue. We continue to focus our business planning around a return to normal, or even adverse, credit conditions across all our businesses.”

Commenting on other developments, Mr. Dimon noted, “We successfully completed our New York Tri-state consumer conversion, which was one of the most complex conversions ever in the banking industry and a critical milestone for achieving our merger efficiency goal. We now have linked over 2,600 branches in 17 states on a common systems platform. The effort, dedication and teamwork of the conversion team now will be turned toward the recently acquired Bank of New York branches, which will be converted and refurbished beginning in the spring of 2007.”

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

JPMorgan Chase & Co.
News Release

In the discussion below of the business segments and JPMorgan Chase, information is presented on a managed basis. Managed basis starts with GAAP results and includes the following adjustments: for Card Services and the firm as a whole, the impact of credit card securitizations are 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 14).

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

INVESTMENT BANK (IB)

Results for IB									2Q06						3Q05
($ millions)	3Q06		2Q06			3Q05				$O/(U)		O/(U) %				$O/(U)			O/(U) %
Net Revenue	$	4,673	$	4,184		$	4,471			$	489		12	%		$	202			5	%
Provision for Credit Losses		7		(62	)		(46	)			69	NM					53		NM
Noninterest Expense		3,101		2,946			2,877				155		5				224			8
Net Income	$	976	$	839		$	1,068			$	137		16	%			($92	)		(9	)%

Discussion of Results:
Net income of $976 million was driven by record third-quarter revenues. Compared with the prior year, net income decreased by $92 million, or 9%, reflecting higher compensation expense and a higher provision for credit losses, largely offset by increased revenue. Net income increased by $137 million, or 16% compared with the prior quarter driven by increased revenue, partially offset by increased compensation and a higher provision for credit losses.

Net revenue of $4.7 billion, the second highest level ever posted, was up 5% from the prior year and 12% from the prior quarter. Investment banking fees of $1.4 billion were a record, up 44% from the prior year, driven by record debt underwriting and strong advisory fees, which were the highest since 2000. Advisory fees of $436 million were up 45% over the prior year driven by strong performance in the Americas and Europe. Debt underwriting fees of $708 million were up 49% from the prior year driven by record loan syndication fees and strong bond underwriting fees, with strength in the Americas and Europe. Equity underwriting fees of $275 million were up 31% from the prior year driven by improved market share. Fixed Income Markets revenue of $2.4 billion was down 3% from the prior year’s record level. The current quarter included very strong results in commodities. Equity Markets revenue of $612 million decreased 14%, reflecting lower trading results compared with a strong prior-year quarter, partially offset by strength in commissions. Credit Portfolio revenue of $272 million was down 18%, primarily reflecting lower gains from loan workouts and loan sales.

Provision for credit losses was $7 million for the quarter compared with a benefit of $46 million in the prior year and a benefit of $62 million in the prior quarter. The increase reflects portfolio activity and stable credit quality.

Noninterest expense was $3.1 billion, up by $224 million, or 8%, from the prior year. This increase was due primarily to higher performance-based compensation, including the impact of an increase in the ratio of compensation expense to total net revenue and incremental expense related to SFAS 123R.

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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; #3 in Global Announced M&A; and #2 in U.S. Announced M&A, year-to-date September 30, 2006, based upon volume, according to Thomson Financial.

• Ranked #1 in Investment Banking Fees year-to-date September 30, 2006, according to Dealogic.

• Notable corporate finance transactions during the quarter included:

• M&A advisor and provider of committed financing to Bain Capital, Kohlberg Kravis Roberts, and Merrill Lynch Global Private Equity on their definitive merger agreement to acquire HCA Inc., the largest LBO ever;

• Joint global coordinator and joint bookrunner on Rosneft’s $10.8 billion IPO, the largest Russian IPO and oil & gas IPO ever; and

• Joint bookrunner on China Merchants Bank’s $2.4 billion IPO.

• Total average loans of $85.7 billion were up by $25.5 billion, or 42%, from the prior year and up by $6.7 billion, or 8%, from the prior quarter. Average loans retained of $61.6 billion were up by $14.2 billion, or 30%, from the prior year and up by $2.6 billion, or 4%, from the prior quarter. Average loans held-for-sale of $24.0 billion were up by $11.3 billion, or 89%, from the prior year and up by $4.1 billion, or 21%, from the prior quarter. These increases were driven largely by capital markets-related activity.

• Allowance for loan losses to average loans was 1.64% for the current quarter, down from 2.11% in the prior year; nonperforming assets were $456 million, down 51% from the prior year and down 13% from the prior quarter.

• Return on Equity was 18% on $21 billion of allocated capital.

RETAIL FINANCIAL SERVICES (RFS)

Results for RFS							2Q06							3Q05
($ millions)	3Q06		2Q06		3Q05			$O/(U)			O/(U) %				$O/(U)			O/(U) %
Net Revenue	$	3,555	$	3,779	$	3,590			($224	)		(6	)%			($35	)		(1	)%
Provision for Credit Losses(a)		114		100		378			14			14				(264	)		(70	)
Noninterest Expense		2,139		2,259		2,156			(120	)		(5	)			(17	)		(1	)
Net Income	$	746	$	868	$	656			($122	)		(14	)%		$	90			14	%

(a) Third quarter of 2005 provision for credit losses included $250 million related to Hurricane Katrina, allocated as follows: $230 million in Regional Banking and $20 million in Auto Finance.

Discussion of Results:
Net income of $746 million was up by $90 million, or 14%, from the prior year. Excluding the prior-year impact of the $155 million (after-tax) special provision for credit losses related to Hurricane Katrina, net income would have been down by $65 million, or 8%. The decrease reflected a decline in Mortgage Banking results, partially offset by improved results in Regional Banking and Auto Finance. Compared with the prior quarter, net income was down, primarily due to a decline in Mortgage Banking results.

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JPMorgan Chase & Co.
News Release

Net revenue of $3.6 billion was down by $35 million, or 1%, from the prior year. Net interest income of $2.5 billion was down 2% due to the sale of the insurance business during the quarter, lower auto loan and lease balances, narrower spreads on loans and deposits in Regional Banking and decreased revenue in Mortgage Banking. These declines were offset partially by the benefit of higher deposit and loan balances in Regional Banking. Noninterest revenue of $1.1 billion was up by $20 million, or 2%, driven by increases in deposit-related fees and credit card sales. Also contributing to the increase was the absence of a prior-year net loss in Auto Finance associated with the transfer of $1.5 billion of loans to held-for-sale, higher automobile operating lease revenue and the acquisition of Collegiate Funding Services in the first quarter of 2006. These increases were largely offset by lower net mortgage servicing revenue and by the sale of the insurance business.

The provision for credit losses of $114 million was down by $264 million from the prior year, which included a $250 million special provision for credit losses related to Hurricane Katrina.

Noninterest expense of $2.1 billion was down slightly, benefiting from the sale of the insurance business during the quarter and merger-related and other operating efficiencies. These decreases were offset partially by the acquisition of Collegiate Funding Services in the first quarter of 2006, investments in the retail distribution network and higher depreciation expense on owned automobiles subject to operating leases.

Regional Banking net income of $744 million was up by $181 million from the prior year. Excluding the prior-year impact of a $143 million (after-tax) special provision for credit losses related to Hurricane Katrina, net income would have been up by $38 million, or 5%. Results also reflected the sale of the insurance business during the current quarter. Net revenue of $3.0 billion was up by $84 million, or 3%, benefiting from growth in deposits and home equity loans, increases in deposit-related fees and credit card sales, and the acquisition of Collegiate Funding Services in the first quarter of 2006. These benefits were offset partially by the sale of the insurance business, narrower spreads on loans and narrower spreads on deposits caused by a shift in the deposit mix. The provision for credit losses decreased by $244 million, primarily the result of a $230 million special provision in the prior year related to Hurricane Katrina. Expenses of $1.6 billion were down by $62 million, or 4%, from the prior year. The decrease was due to the sale of the insurance business, merger savings and operating efficiencies, primarily offset by investments in the retail distribution network and the acquisition of Collegiate Funding Services.

Highlights Include:

• Checking accounts of 9.3 million were up by 198,000, or 2%, during the quarter, and up by 568,000, or 7%, from the prior year.

• Average total deposits increased to $187.4 billion, up 7% from the prior year and flat from the prior quarter. End-of-period total deposits were $188.2 billion, up 7% from the prior year and flat from the prior quarter.

• Branch sales of credit cards increased by 66% from the prior year and decreased 24% from a strong prior-quarter level.

• Overhead ratio (excluding amortization of core deposit intangibles) decreased to 51% from 54% in the prior year and was down from 53% in the prior quarter.

• Number of branches increased to 2,677, up by 128 from the prior year and up by 17 from the prior quarter.

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JPMorgan Chase & Co.
News Release

• Average home equity loans of $78.8 billion were up by $7.1 billion from the prior year; period-end home equity loans were $80.4 billion.

• Home equity loan originations of $13.3 billion were down 7% from the prior year and down 5% from the prior quarter.

• Net charge-off rate was 0.17%, down from 0.22% in the prior year.

• Completed the acquisition of The Bank of New York’s consumer and small-business franchises on October 1, 2006, adding $11.7 billion in deposits, $5.4 billion in loans, 339 branches and more than 400 ATMs.

Mortgage Banking net loss was $83 million compared with net income of $53 million in the prior year. Net revenue was $198 million, down by $194 million. Revenue comprises production revenue and net mortgage servicing revenue. Production revenue was $197 million, down by $32 million, reflecting a 28% decrease in mortgage originations, partially offset by wider margins. Net mortgage servicing revenue, which includes loan servicing revenue, MSR risk management results and other changes in fair value, was $1 million compared with $163 million in the prior year. Loan servicing revenue of $579 million increased by $46 million on a 13% increase in third-party loans serviced. MSR risk management revenue of negative $251 million was down by $204 million from the prior year, reflecting a $235 million negative valuation adjustment to the MSR asset due to changes and refinements to inputs and assumptions used in the MSR valuation model. Other changes in fair value of the MSR asset, representing runoff of the asset against the realization of servicing cash flows, were negative $327 million. Noninterest expense was $334 million, up by $25 million, or 8%.

Highlights Include:

• Mortgage loan originations of $28.4 billion were down 28% from the prior year and down 10% from the prior quarter.

• Total third-party mortgage loans serviced were $510.7 billion, an increase of $60.4 billion, or 13%, from the prior year.

Auto Finance net income of $85 million was up by $45 million from the prior year. Net revenue of $395 million was up by $75 million, or 23%, reflecting the absence of a prior-year write-down of $48 million associated with the transfer of $1.5 billion of loans to held-for-sale, higher automobile operating lease revenue and wider loan spreads on lower loan and direct finance lease balances. The provision for credit losses of $61 million decreased by $20 million due to a special provision in the prior year related to Hurricane Katrina. Noninterest expense of $194 million increased by $20 million, or 11%, driven by increased depreciation expense on owned automobiles subject to operating leases.

Highlights Include:

• Average loan receivables were $38.9 billion, down by $4.8 billion, or 11%, from the prior year and down by $1.4 billion, or 3%, from the prior quarter.

• Average lease-related assets of $3.9 billion declined by $2.3 billion, or 37%, from the prior year.

• The net charge-off rate was 0.64% compared with 0.56% in the prior year.

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JPMorgan Chase & Co.
News Release

CARD SERVICES (CS)

Results for CS(a)							2Q06							3Q05
($ millions)	3Q06		2Q06		3Q05			$O/(U)			O/(U) %				$O/(U)			O/(U) %
Net Revenue	$	3,646	$	3,664	$	3,980			($18	)		—	%			($334	)		(8	)%
Provision for Credit Losses(b)		1,270		1,031		1,833			239			23				(563	)		(31	)
Noninterest Expense		1,253		1,249		1,286			4			—				(33	)		(3	)
Net Income	$	711	$	875	$	541			($164	)		(19	)%		$	170			31	%

(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, 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.

(b)

Third quarter of 2005 included a $100 million special provision for credit losses related to Hurricane Katrina, of which $90 million was released in the second quarter of 2006.

Discussion of Results:
Net income of $711 million was up by $170 million, or 31%, from the prior year. Results were driven by a lower provision for credit losses due to significantly lower bankruptcy filings and the absence of an increase in the allowance for credit losses of $124 million (after-tax) in the prior year.

To illustrate underlying business trends, the following discussion of Card Services’ performance assumes for periods prior to the fourth quarter of 2005 that the deconsolidation of Paymentech had occurred as of the first quarter of 2005. The effect of the deconsolidation would have reduced net managed revenue, primarily noninterest revenue, and noninterest expense, but would not have had any impact on net income for such periods. See page 16 of JPMorgan Chase’s Earnings Release Financial Supplement (third-quarter 2006) for a reconciliation of Card Services results for the deconsolidation of Paymentech.

End-of-period managed loans of $143.8 billion increased by $6.3 billion, or 5%, from the prior year and by $4.5 billion, or 3%, from the prior quarter. Average managed loans of $141.7 billion increased by $3.9 billion, or 3%, from the prior year and by $4.5 billion, or 3%, from the prior quarter. The current quarter included average and end-of-period managed loans of $2.1 billion from the acquisition of the Sears Canada credit card business (acquired in the fourth quarter of 2005), as well as $1.6 billion of average managed loans and $1.7 billion of end-of-period managed loans from the acquisition of the Kohl’s private label portfolio (acquired in the second quarter of 2006). Compared with the prior year, both average managed and end-of-period managed loans continued to be affected negatively by higher customer payment rates. Management believes that contributing to the higher payment rates are the new minimum payment rules and a higher proportion of customers in rewards-based programs.

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JPMorgan Chase & Co.
News Release

Net managed revenue was $3.6 billion, down by $183 million, or 5%, from the prior year. Net interest income of $2.9 billion was down by $80 million, or 3%. The decrease in net interest income was driven by attrition of mature, higher spread balances as a result of higher payment rates. Also contributing to the reduction was higher cost of funds on balance growth in promotional, introductory and transactor loan balances, which increased due to continued investment in marketing. These decreases were offset partially by an increase in average managed loan balances due to acquisitions. Compared with the prior quarter, net interest income was down by $78 million, or 3%, due to an increase in revenue reversals related to increased net charge-offs and higher cost of funds on balance growth in introductory, promotional and transactor loan balances. These decreases were offset partially by an increase in average managed loan balances. Noninterest revenue of $762 million was down by $103 million, or 12%, due to higher volume-driven payments to partners, including Kohl’s, and increased rewards expense, partially offset by increased interchange income related to a 15% increase in charge volume.

The managed provision for credit losses was $1.3 billion, down by $563 million, or 31%, from the prior year. This benefit was due to a decrease in net charge-offs of $353 million, reflecting the continued low level of bankruptcy losses, partially offset by increased contractual net charge-offs. The provision also benefited from the lack of an increase in the allowance for credit losses of $200 million related to Hurricane Katrina and higher bankruptcy filings in the prior year. Compared with the prior quarter, the managed provision for credit losses increased by $239 million, or 23%, primarily due to higher bankruptcy-related net charge-offs and the absence of a $90 million release of allowance for credit losses related to Hurricane Katrina. The managed net charge-off rate for the quarter was 3.58%, down from 4.70% in the prior year, but up from 3.28% in the prior quarter. The 30-day managed delinquency rate was 3.17%, down from 3.39% in the prior year, but up slightly from 3.14% in the prior quarter.

Noninterest expense of $1.3 billion was up by $101 million, or 9%, from the prior year due to the acquisitions of the Sears Canada credit card business and Kohl’s private label portfolio as well as higher marketing spending, partially offset by merger savings.

Highlights Include:

• Pre-tax income to average managed loans (ROO) was 3.14%, up from 2.48% in the prior year, but down from 4.05% in the prior quarter.

• Net interest income as a percentage of average managed loans was 8.07%, down from 8.55% in the prior year and 8.66% in the prior quarter.

• Net accounts opened during the quarter were 4.2 million.

• Charge volume of $87.5 billion increased by $11.1 billion, or 15%, from the prior year.

• Merchant processing volume of $168.7 billion increased by $25.3 billion, or 18%, and total transactions of 4.6 billion increased by 676 million, or 17%, from the prior year.

• Agreement announced to acquire the Pier 1 Imports private label portfolio with $140 million of receivables.

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JPMorgan Chase & Co.
News Release

COMMERCIAL BANKING (CB)

Results for CB									2Q06							3Q05
($ millions)	3Q06		2Q06			3Q05				$O/(U)			O/(U) %				$O/(U)			O/(U) %
Net Revenue	$	933	$	949		$	877				($16	)		(2	)%		$	56			6	%
Provision for Credit Losses(a)		54		(12	)		(46	)			66		NM					100		NM
Noninterest Expense		500		496			458				4			1				42			9
Net Income	$	231	$	283		$	284				($52	)		(18	)%			($53	)		(19	)%

(a) Third quarter of 2005 provision for credit losses included $35 million related to Hurricane Katrina.

Discussion of Results:
Net income was $231 million, down by $53 million, or 19%, from the prior year. The decrease was driven primarily by a higher provision for credit losses.

Net revenue was $933 million, up by $56 million, or 6%, from the prior year. Net interest income was $677 million, up by $54 million, or 9%, due to higher liability balances and loan volumes, largely offset by narrower loan spreads and a shift to lower margin liability products. Noninterest revenue of $256 million was up by $2 million, or 1%.

Each business within Commercial Banking grew revenue over the prior year, primarily driven by increased Treasury Services revenue and lending revenue. Compared with the prior year, Middle Market Banking revenue of $617 million increased by $28 million, or 5%. Mid-Corporate Banking revenue of $160 million increased by $19 million, or 13%, and Real Estate revenue of $119 million increased by $5 million, or 4%.

Provision for credit losses was $54 million reflecting stable credit quality and growth in the loan portfolio. The provision for credit losses was a benefit of $46 million in the prior year, which included a release of the allowance for credit losses that was offset partially by a special provision related to Hurricane Katrina.

Noninterest expense was $500 million, up by $42 million, or 9%, from the prior year, largely due to higher compensation expense and increased expense related to higher client usage of Treasury Services products.

Highlights Include:

• Average loan and lease balances of $53.4 billion were up by $5.4 billion, or 11%, from the prior year, and up by $1.0 billion, or 2%, from the prior quarter.

• Average liability balances of $72.0 billion were up by $7.2 billion, or 11%, from the prior year, and down by $0.5 billion, or 1%, from the prior quarter.

• Nonperforming loans declined by $212 million, or 57%, from the prior year, and declined by $68 million, or 30%, from the prior quarter. The allowance for loan losses to average loans was 2.70% compared with 2.98% in the prior year.

• Overhead ratio was 54% compared with 52% in the prior year.

• Completed the acquisition of The Bank of New York’s middle-market banking business on October 1, 2006, adding $1.3 billion in deposits and $2.5 billion in loans.

8

JPMorgan Chase & Co.
News Release

TREASURY & SECURITIES SERVICES (TSS) ^(a)

Results for TSS							2Q06							3Q05
($ millions)	3Q06		2Q06		3Q05			$O/(U)			O/(U) %				$O/(U)		O/(U) %
Net Revenue	$	1,499	$	1,588	$	1,380			($89	)		(6	)%		$	119		9	%
Noninterest Expense		1,064		1,050		999			14			1				65		7
Net Income	$	256	$	316	$	222			($60	)		(19	)%		$	34		15	%

(a) On October 1, 2006, the firm completed the exchange of select Corporate Trust businesses, including trustee, paying agent, loan agency services and document management, for the consumer, small-business and middle-market banking businesses of The Bank of New York. These Corporate Trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet and income statement activity have been transferred to the Corporate segment for all periods presented.

Discussion of Results:^{(see note (a) above)}
Net income was $256 million, up by $34 million, or 15%, from the prior year. Earnings benefited from higher revenue due to wider spreads on higher average liability balances and growth in client volumes. Compared with the prior quarter, net income was down by $60 million, or 19%, primarily due to the absence of the second quarter’s seasonally strong securities lending activity.

Net revenue was $1.5 billion, up by $119 million, or 9%, from the prior year. Noninterest revenue was $980 million, up by $69 million, or 8%. The improvement was due largely to an increase in assets under custody to $12.9 trillion, which was driven by market value appreciation and new business. Also contributing to the improvement was growth in ADRs, global clearing and securities lending, all of which were driven by a combination of increased product usage by existing clients and new business. Net interest income was $519 million, up by $50 million, or 11%, due to wider spreads on a 22% increase in average liability balances.

Treasury Services net revenue of $697 million was up by $27 million, or 4%, from the prior year. Worldwide Securities Services net revenue of $802 million was up by $92 million, or 13%. TSS firmwide net revenue, which includes Treasury Services net revenue recorded in other lines of business, grew to $2.1 billion, up by $160 million, or 8%. Treasury Services firmwide net revenue grew to $1.3 billion, up by $68 million, or 6%.

Noninterest expense was $1.1 billion, up by $65 million, or 7%. The increase was due to higher compensation expense related to growth in headcount supporting increased client activity, business growth and investment in new product platforms.

Highlights Include:

• Pre-tax margin⁽²⁾ was 27%, up from 25% in the prior year and down from 32% in the prior quarter.

• Average liability balances were $193 billion, an increase of 22%.

• Assets under custody increased to $12.9 trillion, up 23%.

• U.S. dollar ACH transactions originated increased 18%, and U.S. dollar clearing volumes increased 5%.

• Significant product launches and new client relationships included:

• Asia new business, including cash management services for Hess Corporation and trade services for Cisco Systems Inc.;

• Launch of Healthcare Link ^SM, an innovative receivables solution for the healthcare industry; and

• Appointed successor depositary bank for the ADR program for United Utilities, a UK-based FTSE 100 company.

9

JPMorgan Chase & Co.
News Release

ASSET & WEALTH MANAGEMENT (AWM)

Results for AWM										2Q06							3Q05
($ millions)	3Q06			2Q06			3Q05				$O/(U)			O/(U) %				$O/(U)			O/(U) %
Net Revenue	$	1,636		$	1,620		$	1,449			$	16			1	%		$	187			13	%
Provision for Credit Losses(a)		(28	)		(7	)		(19	)			(21	)		(300	)			(9	)		(47	)
Noninterest Expense		1,115			1,081			976				34			3				139			14
Net Income	$	346		$	343		$	315			$	3			1	%		$	31			10	%

(a) Third quarter of 2005 provision for credit losses included $3 million related to Hurricane Katrina.

Discussion of Results:
Net income was $346 million, up by $31 million, or 10%, from the prior year. Performance was driven by increased revenue offset primarily by higher compensation expense.

Net revenue was $1.6 billion, up by $187 million, or 13%, from the prior year. Noninterest revenue, principally fees and commissions, of $1.4 billion was up by $223 million, or 19%. This increase was due largely to increased assets under management and higher performance fees. Net interest income was $231 million, down by $36 million, or 13%, from the prior year, primarily due to narrower deposit spreads, reflecting a shift in the deposit mix, and the sale of BrownCo in the fourth quarter of 2005, partially offset by higher loan and deposit balances.

Private Bank client segment revenue grew 11% from the prior year, to $469 million, due to increased placement activity, higher asset management fees and higher deposit balances, partially offset by narrower deposit spreads. Institutional client segment revenue grew 30%, to $464 million, due to net asset inflows and higher performance fees. Retail client segment revenue grew 10%, to $456 million, primarily due to net asset inflows, partially offset by the sale of BrownCo. Private Client Services client segment revenue decreased 3%, to $247 million, due to narrower deposit and loan spreads, partially offset by higher deposit and loan balances.

Assets under supervision were $1.3 trillion, up 10%, or $112 billion, from the prior year, net of a $33 billion reduction due to the sale of BrownCo. Assets under management were $935 billion, up 13%, or $107 billion, from the prior year. The increase was the result of net asset inflows in the retail segment from third-party distribution, primarily in equity-related products, institutional flows in liquidity products and market appreciation. Custody, brokerage, administration and deposit balances were $330 billion, up by $5 billion, net of a $33 billion reduction from the sale of BrownCo.

Provision for credit losses was a benefit of $28 million compared with a benefit of $19 million in the prior year. The increased benefit reflects a higher level of recoveries.

Noninterest expense of $1.1 billion was up by $139 million, or 14%, from the prior year. The increase was due to higher compensation, including incremental expense related to SFAS 123R, as well as minority interest related to Highbridge Capital Management, partially offset by the sale of BrownCo.

10

'

JPMorgan Chase & Co.
News Release

Highlights Include:

• Pre-tax margin⁽²⁾ was 34%, flat from the prior year.

• Assets under Supervision were $1.3 trillion, up 10%, or $112 billion, from the prior year, net of a $33 billion reduction due to the sale of BrownCo.

• Assets under Management were $935 billion, up 13%, or $107 billion, from the prior year, including growth of 26%, or $19 billion, in alternative assets.

• Average loans of $26.8 billion were up by $3 billion, or 12%, from the prior year, excluding the $3.0 billion reduction in loans from the sale of BrownCo in the fourth quarter of 2005.

• Average deposits of $51.4 billion were up by $13 billion, or 34%, from the prior year, excluding the $3.0 billion reduction in deposits from the sale of BrownCo in the fourth quarter of 2005.

• Assets under Management net inflows were $22 billion for third quarter 2006, and $59 billion, for September year-to-date.

CORPORATE^(a)

Results for Corporate										2Q06						3Q05
($ millions)	3Q06			2Q06			3Q05				$ O/(U)		O/(U) %				$ O/(U)			O/(U) %
Net Revenue	$	287			($66	)		($393	)		$	353	NM				$	680		NM
Provision for Credit Losses (b)		1			—			13				1	NM					(12	)		(92	)%
Noninterest Expense		479			155			607				324		209	%			(128	)		(21	)
Income (Loss) from Continuing Operations		(34	)		(40	)		(617	)			6		15				583			94
Income from Discontinued Operations (after-tax)		65			56			58				9		16				7			12	%
Net Income (Loss)	$	31		$	16			($559	)		$	15		94	%		$	590		NM

(a)

On October 1, 2006, the firm completed the exchange of select Corporate Trust businesses, including trustee, paying agent, loan agency services and document management, for the consumer, small-business and middle-market banking businesses of The Bank of New York. These Corporate Trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet and income statement activity is reflected in the Corporate segment for all periods presented.

(b)

Third quarter of 2005 provision for credit losses included $12 million related to Hurricane Katrina.

Discussion of Results:^{(see note (a) above)}
Net income was $31 million compared with a net loss of $559 million in the prior year. In comparison with the prior year, Private Equity earnings were $95 million, down from $141 million; Treasury net income was $70 million compared with a net loss of $301 million; Other Corporate net loss was $199 million compared with a net loss of $457 million; and earnings from Discontinued Operations were $65 million compared with $58 million.

Net revenue was $287 million compared with negative $393 million in the prior year. Net interest income was negative $55 million compared with negative $650 million in the prior year. Treasury was the primary driver of the improvement, with net interest income of $149 million compared with negative $415 million, primarily benefiting from an improvement in Treasury’s net interest spread and an increase in available-for-sale securities. Noninterest revenue was $342 million compared with $257 million, reflecting $24 million of security gains in Treasury compared with security losses of $43 million. These benefits were offset partially by lower Private Equity gains of $226 million compared with gains of $313 million.

11

JPMorgan Chase & Co.
News Release

Noninterest expense was $479 million, down by $128 million from $607 million in the prior year, and up by $324 million from the prior quarter. Insurance recoveries relating to certain material litigation were $17 million in the current period and $260 million in the prior quarter. Merger costs of $48 million were incurred in the current quarter, $221 million in the prior year and $86 million in the prior quarter.

On October 1, 2006, the firm completed the exchange of select Corporate Trust businesses, including trustee, paying agent, loan agency services and document management, for the consumer, small-business and middle-market banking businesses of The Bank of New York. These Corporate Trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet and income statement activity is reflected in the Corporate segment for all periods presented. During the current quarter, these businesses produced $65 million in net income compared with net income of $58 million in the prior year.

Highlights Include:

• Private Equity portfolio was $5.6 billion, down from $5.9 billion in the prior year and essentially flat versus the prior quarter. The portfolio represented 8.0% of stockholders’ equity less goodwill, down from 9.5% in the prior year and 8.3% in the prior quarter.

• Completed the sale of a 5.3 million-square-foot portfolio of 33 commercial properties in 10 states and signed long-term leases on approximately 60% of the space.

JPMORGAN CHASE (JPM)^(a)(b)

Results for JPM							2Q06							3Q05
($ millions)	3Q06		2Q06		3Q05			$ O/(U)			O/(U) %				$ O/(U)			O/(U) %
Net Revenue	$	16,229	$	15,718	$	15,354		$	511			3	%		$	875			6	%
Provision for Credit Losses(c)		1,419		1,054		2,112			365			35				(693	)		(33	)
Noninterest Expense		9,651		9,236		9,359			415			4				292			3
Income from Continuing Operations		3,232		3,484		2,469			(252	)		(7	)			763			31
Income from Discontinued Operations (after-tax)		65		56		58			9			16				7			12
Net Income	$	3,297	$	3,540	$	2,527			($243	)		(7	)%		$	770			30	%

(a)	On October 1, 2006, the firm completed the exchange of select Corporate Trust businesses, including trustee, paying agent, loan agency services and document management, for the consumer, small-business and middle-market banking businesses of The Bank of New York. These Corporate Trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet and income statement activity have been transferred to the Corporate segment for all periods presented.
(b)	Presented on a managed basis; see Note 1 (Page 14) for further explanation of managed basis.
(c)	Third quarter of 2005 provision for credit losses included $400 million related to Hurricane Katrina, of which $90 million was released in the second quarter of 2006.

Discussion of Results:^{(see notes (a) (b) above)}
Net income was $3.3 billion, up by $770 million compared with $2.5 billion in the prior year. The increase in earnings was driven primarily by higher revenue and lower managed provision for credit losses.

12

JPMorgan Chase & Co.
News Release

Net managed revenue was $16.2 billion, up by $875 million, or 6%, from the prior year. Noninterest revenue of $9.5 billion was up by $561 million, or 6%, reflecting the following: record investment banking fees, increased asset management, administration, and commissions revenue, and higher other income. Offsetting this growth was lower credit card income, decreased principal transactions and lower Mortgage Banking results. Net interest income was $6.8 billion, up by $314 million, or 5%, due to an improvement in the Corporate segment’s net interest spread, and increases in: consumer loans, wholesale deposits, and consumer deposits. This increase was offset partially by narrower spreads on: trading-related assets, consumer loans, and consumer deposits, as well as a shift in the deposit mix.

The managed provision for credit losses was $1.4 billion, down by $693 million, or 33%, from the prior year, partially due to the absence of a special provision of $400 million related to Hurricane Katrina and lower bankruptcy-related losses in Card Services. The wholesale provision for credit losses was $35 million for the quarter compared with a benefit of $99 million in the prior year. The $35 million provision reflects loan growth and stable credit quality. The wholesale loan net recovery rate was 0.03% for the quarter compared with a net recovery rate of 0.12% in the prior year. The total consumer managed provision for credit losses was $1.4 billion, $827 million lower than the prior year, primarily due to the absence of special provisions for Hurricane Katrina and lower bankruptcy-related losses in Card Services. The firm had total nonperforming assets of $2.3 billion at September 30, 2006, down by $539 million, or 19%, from the prior-year level of $2.8 billion.

Noninterest expense was $9.7 billion, up by $292 million, or 3%, from the prior year. Excluding in the current quarter incremental expense of $104 million related to SFAS 123R, $48 million of merger costs, and $17 million of insurance recoveries relating to certain material litigation, and excluding in the prior year $221 million of merger costs, noninterest expense would have been up by $378 million. The increase was driven by higher compensation expense and acquisitions, partially offset by the deconsolidation of Paymentech, and the sale of the insurance underwriting business.

Highlights Include:

• Tier 1 capital ratio was 8.6% at September 30, 2006 (estimated), 8.5% at June 30, 2006, and 8.2% at September 30, 2005.

• During the quarter, $900 million of common stock was repurchased, reflecting 20 million shares purchased at an average price of $44.88 per share. Year-to-date, $2.9 billion of common stock was repurchased, reflecting 70 million shares purchased at an average price of $42.22 per share. As of September 30, 2006, $6.2 billion of capacity remained under the $8 billion share purchase program approved on March 21, 2006.

• Headcount of 171,589 decreased by 834 since June 30, 2006.

13

JPMorgan Chase & Co.
News Release

Merger and other financial information

•     Merger savings and cost: For the quarter ended September 30, 2006, approximately $655 million of merger savings have been realized, which is an annualized rate of $2.6 billion. Management estimates that annualized savings will be approximately $2.8 billion by the end of 2006. Management continues to estimate that annual merger savings of approximately $3.0 billion will be achieved. Merger costs of $48 million were expensed during the third quarter of 2006, bringing the total amount incurred to $3.3 billion (including capitalized costs) since the merger announcement. Management currently expects total merger costs will be approximately $4.0 billion. The remaining merger costs are expected to be incurred by the end of 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. As a result of the adoption of SFAS 123R in the first quarter of 2006, 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. The total incremental expense recorded in the first quarter and second quarter of 2006 was $459 million and $106 million. During the third quarter of 2006 incremental expense of $104 million was recorded. 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 firm estimates that the incremental expense related to the adoption of SFAS 123R for the fourth quarter of 2006 will be approximately $110 million. The incremental expenses incurred during 2006 are non-cash charges and represent accelerated recognition of costs that would have been incurred in future periods.

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 and includes the following adjustments: First, for Card Services and the firm, 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 revenue 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 (third quarter of 2006) for a reconciliation of JPMorgan Chase’s income statement from a reported to managed basis.

2.     Pre-tax margin represents income before income tax expense 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.

14

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 third-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 October 18, 2006, through midnight, Friday, October 27, 2006 (Eastern Time), at (888) 203-1112 (domestic) or (719) 457-0820 (international) access code 4535211. 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 Quarterly Reports on Form 10-Q for the quarters ended June 30, 2006 and March 31, 2006 (as amended), and in the Annual Report on Form 10-K for the year ended December 31, 2005 (as amended), filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

15

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

	QUARTERLY TRENDS															YEAR-TO-DATE
										3Q06 Change												2006 Change
	3Q06			2Q06			3Q05			2Q06			3Q05			2006			2005			2005
SELECTED INCOME STATEMENT DATA
Total Net Revenue	$	15,400		$	14,940		$	14,265			3	%		8	%	$	45,383		$	40,266			13	%
Provision for Credit Losses		812			493			1,245			65			(35	)		2,136			2,259			(5	)
Noninterest Expense		9,651			9,236			9,359			4			3			28,535			29,996			(5	)
Income from Continuing Operations (after-tax)		3,232			3,484			2,469			(7	)		31			9,743			5,612			74
Income from Discontinued Operations (after-tax) (a)		65			56			58			16			12			175			173			1
Net Income		3,297			3,540			2,527			(7	)		30			9,918			5,785			71
Per Common Share:
Income from Continuing Operations - Basic	$	0.93		$	1.00		$	0.71			(7	)		31		$	2.81		$	1.60			76
Net Income Per Share - Basic		0.95			1.02			0.72			(7	)		32			2.86			1.65			73
Income from Continuing Operations - Diluted	$	0.90		$	0.98		$	0.70			(8	)		29		$	2.73		$	1.58			73
Net Income Per Share - Diluted		0.92			0.99			0.71			(7	)		30			2.78			1.62			72
Cash Dividends Declared Per Share		0.34			0.34			0.34			-			-			1.02			1.02			-
Book Value Per Share		32.75			31.89			30.26			3			8			32.75			30.26			8
Closing Share Price		46.96			42.00			33.93			12			38			46.96			33.93			38
Common Shares Outstanding:
Weighted-Average Diluted Shares Outstanding		3,574.0			3,572.2			3,547.7			-			1			3,572.3			3,555.1			-
Common Shares Outstanding at Period-end		3,467.5			3,470.6			3,503.4			-			(1	)		3,467.5			3,503.4			(1	)
SELECTED RATIOS:
Return on Common Equity (“ROE”) (b)		12	%		13	%		9	%								12	%		7	%
Return on Equity-Goodwill (“ROE-GW”) (b) (c)		19			22			16									20			12
Return on Assets (“ROA”) (b) (d)		1.00			1.06			0.84									1.02			0.66
Tier 1 Capital Ratio		8.6	(g)		8.5			8.2
Total Capital Ratio		12.1	(g)		12.0			11.3
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,338,029		$	1,328,001		$	1,203,033			1			11		$	1,338,029		$	1,203,033			11
Wholesale Loans		179,403			178,215			151,591			1			18			179,403			151,591			18
Consumer Loans		284,141			276,889			268,913			3			6			284,141			268,913			6
Deposits (e)		582,115			593,716			535,123			(2	)		9			582,115			535,123			9
Common Stockholders’ Equity		113,561			110,684			105,996			3			7			113,561			105,996			7
Headcount		171,589			172,423			168,955			-			2			171,589			168,955			2
LINE OF BUSINESS EARNINGS
Investment Bank	$	976		$	839		$	1,068			16			(9	)	$	2,665		$	3,007			(11	)
Retail Financial Services		746			868			656			(14	)		14			2,495			2,624			(5	)
Card Services		711			875			541			(19	)		31			2,487			1,605			55
Commercial Banking		231			283			284			(18	)		(19	)		754			672			12
Treasury & Securities Services		256			316			222			(19	)		15			834			609			37
Asset & Wealth Management		346			343			315			1			10			1,002			874			15
Corporate (f)		31			16			(559	)		94		NM				(319	)		(3,606	)		91
Net Income	$	3,297		$	3,540		$	2,527			(7	)		30		$	9,918		$	5,785			71

(a)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses, including trustee, paying agent, loan agency and document management services, for the consumer, small business and middle market banking businesses of The Bank of New York. These corporate trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet, income statement and assets under custody activity has been transferred to the Corporate segment for all periods presented.
(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)	Excludes deposits of $24.0 billion and $26.5 billion at September 30, 2006 and June 30, 2006, respectively that have been reclassified to Liabilities of discontinued operations held-for-sale.
(f)	Includes the after-tax impact of discontinued operations, material litigation reserve charges/recoveries and Merger costs. See Corporate for additional details.
(g)	Estimated.

16

EX-99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD 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

Page 1

JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS

(in millions, except per share, ratio and headcount data)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
SELECTED INCOME STATEMENT DATA
Total Net Revenue	$	15,400		$	14,940		$	15,043		$	13,482		$	14,265			3	%		8	%	$	45,383		$	40,266			13	%
Provision for Credit Losses		812			493			831			1,224			1,245			65			(35	)		2,136			2,259			(5	)
Noninterest Expense		9,651			9,236			9,648			8,430			9,359			4			3			28,535			29,996			(5	)
Income from Continuing Operations (after-tax)		3,232			3,484			3,027			2,642			2,469			(7	)		31			9,743			5,612			74
Income from Discontinued Operations (after-tax) (a)		65			56			54			56			58			16			12			175			173			1
Net Income		3,297			3,540			3,081			2,698			2,527			(7	)		30			9,918			5,785			71
Per Common Share:
Income from Continuing Operations - Basic	$	0.93		$	1.00		$	0.87		$	0.76		$	0.71			(7	)		31		$	2.81		$	1.60			76
Net Income Per Share - Basic		0.95			1.02			0.89			0.78			0.72			(7	)		32			2.86			1.65			73
Income from Continuing Operations - Diluted	$	0.90		$	0.98		$	0.85		$	0.74		$	0.70			(8	)		29		$	2.73		$	1.58			73
Net Income Per Share - Diluted		0.92			0.99			0.86			0.76			0.71			(7	)		30			2.78			1.62			72
Cash Dividends Declared Per Share		0.34			0.34			0.34			0.34			0.34			-			-			1.02			1.02			-
Book Value Per Share		32.75			31.89			31.19			30.71			30.26			3			8			32.75			30.26			8
Closing Share Price		46.96			42.00			41.64			39.69			33.93			12			38			46.96			33.93			38
Common Shares Outstanding:
Weighted-Average Diluted Shares Outstanding		3,574.0			3,572.2			3,570.8			3,563.9			3,547.7			-			1			3,572.3			3,555.1			-
Common Shares Outstanding at Period-end		3,467.5			3,470.6			3,473.0			3,486.7			3,503.4			-			(1	)		3,467.5			3,503.4			(1	)
SELECTED RATIOS:
Return on Common Equity (“ROE”) (b)		12	%		13	%		12	%		10	%		9	%								12	%		7	%
Return on Equity-Goodwill (“ROE-GW”) (b) (c)		19			22			20			17			16									20			12
Return on Assets (“ROA”) (b) (d)		1.00			1.06			1.00			0.89			0.84									1.02			0.66
Tier 1 Capital Ratio		8.6	(g)		8.5			8.5			8.5			8.2
Total Capital Ratio		12.1	(g)		12.0			12.1			12.0			11.3
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,338,029		$	1,328,001		$	1,273,282		$	1,198,942		$	1,203,033			1			11		$	1,338,029		$	1,203,033			11
Wholesale Loans		179,403			178,215			164,799			150,111			151,591			1			18			179,403			151,591			18
Consumer Loans		284,141			276,889			267,282			269,037			268,913			3			6			284,141			268,913			6
Deposits (e)		582,115			593,716			584,465			554,991			535,123			(2	)		9			582,115			535,123			9
Common Stockholders’ Equity		113,561			110,684			108,337			107,072			105,996			3			7			113,561			105,996			7
Headcount		171,589			172,423			170,787			168,847			168,955			-			2			171,589			168,955			2
LINE OF BUSINESS EARNINGS
Investment Bank	$	976		$	839		$	850		$	667		$	1,068			16			(9	)	$	2,665		$	3,007			(11	)
Retail Financial Services		746			868			881			803			656			(14	)		14			2,495			2,624			(5	)
Card Services		711			875			901			302			541			(19	)		31			2,487			1,605			55
Commercial Banking		231			283			240			279			284			(18	)		(19	)		754			672			12
Treasury & Securities Services		256			316			262			254			222			(19	)		15			834			609			37
Asset & Wealth Management		346			343			313			342			315			1			10			1,002			874			15
Corporate (f)		31			16			(366	)		51			(559	)		94			NM			(319	)		(3,606	)		91
Net Income	$	3,297		$	3,540		$	3,081		$	2,698		$	2,527			(7	)		30		$	9,918		$	5,785			71

(a)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses, including trustee, paying agent, loan agency and document management services, for the consumer, small business and middle market banking businesses of The Bank of New York. These corporate trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet, income statement and assets under custody activity has been transferred to the Corporate segment for all periods presented.
(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)	Excludes deposits of $24.0 billion and $26.5 billion at September 30, 2006 and June 30, 2006, respectively that have been reclassified to Liabilities of discontinued operations held-for-sale.
(f)	Includes the after-tax impact of discontinued operations, material litigation reserve charges/recoveries and Merger costs. See Corporate for additional details.
(g)	Estimated.

Page 2

JPMORGAN CHASE & CO.
STATEMENTS OF INCOME

(in millions, except per share and ratio data)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
REVENUE
Investment Banking Fees	$	1,416		$	1,370		$	1,169		$	1,145		$	989			3	%		43	%	$	3,955		$	2,943			34	%
Principal Transactions		2,636			2,628			2,602			1,423			2,886			-			(9	)		7,866			6,246			26
Lending & Deposit Related Fees		867			865			841			853			865			-			-			2,573			2,536			1
Asset Management, Administration and Commissions		2,798			2,933			2,849			2,605			2,500			(5	)		12			8,580			7,286			18
Securities Gains (Losses)		40			(502	)		(116	)		(540	)		(44	)		NM			NM			(578	)		(796	)		27
Mortgage Fees and Related Income		62			213			241			155			201			(71	)		(69	)		516			899			(43	)
Credit Card Income		1,567			1,791			1,910			1,402			1,855			(13	)		(16	)		5,268			5,352			(2	)
Other Income		635			464			554			1,761			230			37			176			1,653			923			79
Noninterest Revenue		10,021			9,762			10,050			8,804			9,482			3			6			29,833			25,389			18
Interest Income		14,936			14,413			13,065			11,996			11,290			4			32			42,414			32,619			30
Interest Expense		9,557			9,235			8,072			7,318			6,507			3			47			26,864			17,742			51
Net Interest Income		5,379			5,178			4,993			4,678			4,783			4			12			15,550			14,877			5
TOTAL NET REVENUE		15,400			14,940			15,043			13,482			14,265			3			8			45,383			40,266			13
Provision for Credit Losses		812			493			831			1,224			1,245			65			(35	)		2,136			2,259			(5	)
NONINTEREST EXPENSE
Compensation Expense		5,390			5,268			5,548			4,237			4,954			2			9			16,206			13,828			17
Occupancy Expense		563			553			594			637			542			2			4			1,710			1,632			5
Technology, Communications and Equipment Expense		911			876			869			904			892			4			2			2,656			2,698			(2	)
Professional & Outside Services		966			939			876			985			1,001			3			(3	)		2,781			3,177			(12	)
Marketing		550			526			519			385			512			5			7			1,595			1,532			4
Other Expense (a)		877			631			816			839			864			39			2			2,324			5,360			(57	)
Amortization of Intangibles		346			357			355			366			373			(3	)		(7	)		1,058			1,124			(6	)
Merger Costs		48			86			71			77			221			(44	)		(78	)		205			645			(68	)
TOTAL NONINTEREST EXPENSE		9,651			9,236			9,648			8,430			9,359			4			3			28,535			29,996			(5	)
Income from Continuing Operations before Income Tax Expense		4,937			5,211			4,564			3,828			3,661			(5	)		35			14,712			8,011			84
Income Tax Expense		1,705			1,727			1,537			1,186			1,192			(1	)		43			4,969			2,399			107
Income from Continuing Operations (after-tax)		3,232			3,484			3,027			2,642			2,469			(7	)		31			9,743			5,612			74
Income from Discontinued Operations (after-tax) (b)		65			56			54			56			58			16			12			175			173			1
NET INCOME	$	3,297		$	3,540		$	3,081		$	2,698		$	2,527			(7	)		30		$	9,918		$	5,785			71
DILUTED EARNINGS PER SHARE
Income from Continuing Operations (after-tax)	$	0.90		$	0.98		$	0.85		$	0.74		$	0.70			(8	)		29		$	2.73		$	1.58			73
Income from Discontinued Operations (after-tax) (b)		0.02			0.01			0.01			0.02			0.01			100			100			0.05			0.04			25
Net Income	$	0.92		$	0.99		$	0.86		$	0.76		$	0.71			(7	)		30		$	2.78		$	1.62			72
FINANCIAL RATIOS
ROE		12	%		13	%		12	%		10	%		9	%								12	%		7	%
ROE-GW		19			22			20			17			16									20			12
ROA		1.00			1.06			1.00			0.89			0.84									1.02			0.66
Effective Income Tax Rate		35			33			34			31			33									34			30
Overhead Ratio		63			62			64			63			66									63			74
EXCLUDING IMPACT OF MERGER COSTS
Income from Continuing Operations	$	3,232		$	3,484		$	3,027		$	2,642		$	2,469			(7	)		31		$	9,743		$	5,612			74
Less Merger Costs (after-tax)		30			53			44			48			137			(43	)		(78	)		127			400			(68	)
Income from Continuing Operations Excluding Merger Costs	$	3,262		$	3,537		$	3,071		$	2,690		$	2,606			(8	)		25		$	9,870		$	6,012			64
Diluted Per Share:
Income from Continuing Operations	$	0.90		$	0.98		$	0.85		$	0.74		$	0.70			(8	)		29		$	2.73		$	1.58			73
Less Merger Costs (after-tax)		0.01			0.01			0.01			0.01			0.04			-			(75	)		0.03			0.11			(73	)
Income from Continuing Operations Excluding Merger Costs	$	0.91		$	0.99		$	0.86		$	0.75		$	0.74			(8	)		23		$	2.76		$	1.69			63

(a)

Includes litigation reserve charges of $2,772 million year-to-date 2005 related to the settlement of the Enron and WorldCom class action litigations and for certain other material legal proceedings. In the third quarter of 2006, second quarter of 2006, first quarter of 2006 and fourth quarter of 2005, insurance recoveries relating to certain material litigation of $17 million, $260 million, $98 million and $208 million, respectively, were recorded. Year-to-date 2006, insurance recoveries relating to certain material litigation of $375 million were recorded.

(b)

On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses, including trustee, paying agent, loan agency and document management services, for the consumer, small business and middle market banking businesses of The Bank of New York. These corporate trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related income statement activity has been transferred to the Corporate segment for all periods presented.

Page 3

JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS

(in millions)

																Sep 30, 2006
																Change
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30
	2006			2006			2006			2005			2005			2006			2005
ASSETS
Cash and Due from Banks	$	36,279		$	38,390		$	36,903		$	36,670		$	33,036			(5	)%		10	%
Deposits with Banks		17,130			14,437			10,545			21,661			14,337			19			19
Federal Funds Sold and Securities Purchased under Resale Agreements		156,194			157,438			153,755			133,981			122,876			(1	)		27
Securities Borrowed		89,222			87,377			93,280			74,604			64,381			2			39
Trading Assets:
Debt and Equity Instruments		289,891			295,604			259,275			248,590			250,171			(2	)		16
Derivative Receivables		58,265			54,075			52,750			49,787			54,389			8			7
Securities		86,548			78,022			67,126			47,600			68,697			11			26
Interests in Purchased Receivables (a)		-			-			29,029			29,740			28,766			NM			NM
Loans (Net of Allowance for Loan Losses)		456,488			448,028			424,806			412,058			413,284			2			10
Private Equity Investments		5,905			5,974			6,499			6,374			6,081			(1	)		(3	)
Accrued Interest and Accounts Receivable		21,178			24,418			21,657			22,421			28,872			(13	)		(27	)
Premises and Equipment		8,553			8,910			8,985			9,081			9,297			(4	)		(8	)
Goodwill		43,372			43,498			43,899			43,621			43,555			-			-
Other Intangible Assets:
Mortgage Servicing Rights		7,378			8,247			7,539			6,452			6,057			(11	)		22
Purchased Credit Card Relationships		2,982			3,138			3,243			3,275			3,352			(5	)		(11	)
All Other Intangibles		4,078			4,231			4,832			4,832			5,139			(4	)		(21	)
Other Assets		53,181			54,981			49,159			48,195			50,743			(3	)		5
Assets of discontinued operations held-for-sale (b)		1,385			1,233			-			-			-			12			NM
TOTAL ASSETS	$	1,338,029		$	1,328,001		$	1,273,282		$	1,198,942		$	1,203,033			1			11
LIABILITIES
Deposits:
U.S. Offices:
Noninterest-Bearing	$	117,197		$	127,311		$	128,982		$	135,599		$	134,129			(8	)		(13	)
Interest-Bearing		310,401			312,517			309,779			287,774			267,288			(1	)		16
Non-U.S. Offices:
Noninterest-Bearing		3,761			6,442			6,591			7,476			6,723			(42	)		(44	)
Interest-Bearing		150,756			147,446			139,113			124,142			126,983			2			19
Total Deposits		582,115			593,716			584,465			554,991			535,123			(2	)		9
Federal Funds Purchased and Securities Sold under Repurchase Agreements		188,395			175,055			151,006			125,925			143,404			8			31
Commercial Paper		18,135			18,554			15,933			13,863			16,166			(2	)		12
Other Borrowed Funds		16,252			10,921			14,400			10,479			15,400			49			6
Trading Liabilities:
Debt and Equity Instruments		106,784			105,445			104,160			94,157			99,163			1			8
Derivative Payables		58,462			52,630			55,938			51,773			53,329			11			10
Accounts Payable, Accrued Expenses and Other Liabilities
(including the Allowance for Lending-
Related Commitments)		73,585			82,569			73,693			78,460			74,698			(11	)		(1	)
Beneficial Interests Issued by Consolidated VIEs		16,254			15,432			42,237			42,197			46,140			5			(65	)
Long-Term Debt		126,619			125,280			112,133			108,357			101,853			1			24
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		13,309			10,827			10,980			11,529			11,622			23			15
Liabilities of discontinued operations held-for-sale (b)		24,558			26,888			-			-			-			(9	)		NM
TOTAL LIABILITIES		1,224,468			1,217,317			1,164,945			1,091,731			1,096,898			1			12
STOCKHOLDERS’ EQUITY
Preferred Stock		-			-			-			139			139			NM			NM
Common Stock		3,658			3,658			3,645			3,618			3,608			-			1
Capital Surplus		77,457			77,098			76,153			74,994			74,396			-			4
Retained Earnings		40,283			38,208			35,892			33,848			32,350			5			25
Accumulated Other Comprehensive Income (Loss)		(526	)		(1,218	)		(1,017	)		(626	)		(602	)		57			13
Treasury Stock, at Cost		(7,311	)		(7,062	)		(6,336	)		(4,762	)		(3,756	)		(4	)		(95	)
TOTAL STOCKHOLDERS’ EQUITY		113,561			110,684			108,337			107,211			106,135			3			7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,338,029		$	1,328,001		$	1,273,282		$	1,198,942		$	1,203,033			1			11

(a)

As a result of restructuring certain multi-seller conduits the Firm administers, during the second quarter of 2006, JPMorgan Chase deconsolidated $29 billion of Interests in Purchased Receivables, $3 billion of Loans and $1 billion of Securities, and recorded $33 billion of Lending-Related Commitments.

(b)

On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses, including trustee, paying agent, loan agency and document management services, for the consumer, small business and middle market banking businesses of The Bank of New York. These corporate trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet activity has been transferred to the Corporate segment for the periods ended September 30, 2006 and June 30, 2006. See footnote (b) on page 5 for additional details.

Page 4

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

(in millions, except rates)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
AVERAGE BALANCES (a)
ASSETS
Deposits with Banks	$	31,291		$	39,193		$	20,672		$	15,584		$	11,388			(20	)%		175	%	$	30,424		$	15,075			102	%
Federal Funds Sold and Securities Purchased under Resale Agreements (b)		125,618			128,740			129,268			135,155			129,290			(2	)		(3	)		127,863			119,216			7
Securities Borrowed		82,216			86,742			84,220			72,359			66,817			(5	)		23			84,385			59,877			41
Trading Assets - Debt Instruments		213,164			204,551			185,679			181,019			188,684			4			13			201,232			189,838			6
Securities		78,029			82,845			60,216			60,663			65,185			(6	)		20			73,762			75,334			(2	)
Interests in Purchased Receivables (c)		-			26,221			30,028			28,338			27,905			NM			NM			18,640			28,416			(34	)
Loans		461,673			442,601			429,043			421,434			415,574			4			11			444,558			406,131			9
Total Interest-Earning Assets		991,991			1,010,893			939,126			914,552			904,843			(2	)		10			980,864			893,887			10
Trading Assets - Equity Instruments		75,366			70,045			70,762			56,970			53,025			8			42			72,075			46,926			54
All Other Noninterest-Earning Assets		218,118			229,898			219,045			214,256			219,452			(5	)		(1	)		222,349			219,377			1
Assets of discontinued operations held-for-sale (b) (d)		23,664			23,033			19,424			19,006			18,725			3			26			22,056			18,230			21
TOTAL ASSETS	$	1,309,139		$	1,333,869		$	1,248,357		$	1,204,784		$	1,196,045			(2	)		9		$	1,297,344		$	1,178,420			10
LIABILITIES
Interest-Bearing Deposits (b)	$	451,509		$	449,782		$	419,903		$	388,818		$	385,540			-			17		$	440,514		$	381,386			16
Federal Funds Purchased and Securities Sold under Repurchase Agreements		192,674			184,943			158,818			149,269			160,453			4			20			178,936			156,688			14
Commercial Paper		19,207			17,484			15,310			17,393			15,188			10			26			17,348			13,459			29
Other Borrowings (e)		101,366			103,150			107,702			101,261			97,620			(2	)		4			104,049			91,239			14
Beneficial Interests Issued by Consolidated VIEs		13,630			43,470			42,192			45,284			44,381			(69	)		(69	)		32,993			44,469			(26	)
Long-Term Debt		133,279			125,723			118,875			117,597			111,921			6			19			126,011			110,608			14
Total Interest-Bearing Liabilities		911,665			924,552			862,800			819,622			815,103			(1	)		12			899,851			797,849			13
Noninterest-Bearing Liabilities		262,843			278,229			259,936			261,522			257,892			(6	)		2			267,014			257,970			4
Liabilities of discontinued operations held-for-sale (b) (d)		22,825			22,131			18,317			17,576			17,430			3			31			21,107			17,005			24
TOTAL LIABILITIES		1,197,333			1,224,912			1,141,053			1,098,720			1,090,425			(2	)		10			1,187,972			1,072,824			11
Preferred Stock		-			-			137			139			139			NM			NM			45			230			(80	)
Common Stockholders’ Equity		111,806			108,957			107,167			105,925			105,481			3			6			109,327			105,366			4
TOTAL STOCKHOLDERS’ EQUITY		111,806			108,957			107,304			106,064			105,620			3			6			109,372			105,596			4
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$	1,309,139		$	1,333,869		$	1,248,357		$	1,204,784		$	1,196,045			(2	)		9		$	1,297,344		$	1,178,420			10
AVERAGE RATES (a)
INTEREST-EARNING ASSETS
Deposits with Banks		4.46	%		4.43	%		4.31	%		4.77	%		4.48	%								4.42	%		4.19	%
Federal Funds Sold and Securities Purchased under Resale Agreements (b)		3.52			3.18			3.21			2.85			2.48									3.30			2.39
Securities Borrowed		4.28			3.89			3.51			3.00			2.63									3.89			2.39
Trading Assets - Debt Instruments		5.28			5.33			5.61			5.08			4.81									5.40			4.93
Securities		5.70			5.45			5.34			5.00			4.56									5.51			4.47
Interests in Purchased Receivables		NM			4.92			4.47			3.97			3.52									4.68			3.06
Loans		7.46			7.25			7.06			6.57			6.39									7.26			6.25
Total Interest-Earning Assets		6.00			5.74			5.67			5.23			4.98									5.81			4.91
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits (b)		3.93			3.67			3.43			3.18			2.72									3.68			2.41
Federal Funds Purchased and Securities Sold under Repurchase Agreements		4.18			3.85			3.47			3.05			2.81									3.86			2.66
Commercial Paper		4.78			4.31			3.97			3.40			3.13									4.39			2.56
Other Borrowings (e)		5.13			4.93			5.16			5.10			4.93									5.08			5.22
Beneficial Interests Issued by Consolidated VIEs		4.16			4.86			3.92			3.66			3.25									4.37			2.87
Long-Term Debt		4.08			4.34			4.21			4.01			3.65									4.21			3.59
Total Interest-Bearing Liabilities		4.16			4.01			3.79			3.54			3.17									3.99			2.97
INTEREST RATE SPREAD		1.84	%		1.73	%		1.88	%		1.69	%		1.81	%								1.82	%		1.94	%
NET YIELD ON INTEREST-EARNING ASSETS		2.17	%		2.07	%		2.19	%		2.05	%		2.13	%								2.14	%		2.26	%
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		2.54	%		2.50	%		2.67	%		2.51	%		2.63	%								2.57	%		2.79	%

(a)	Prior periods have been adjusted to reflect the reclassification of certain balances to more appropriate balance sheet line items.
(b)	For purposes of the consolidated average balance sheet for assets and liabilities transferred to discontinued operations, JPMorgan Chase used Federal funds sold interest income as a reasonable estimate of the earnings on corporate trust deposits; therefore, JPMorgan Chase transferred to Assets of discontinued operations held-for-sale average Federal funds sold, along with the related interest income earned, and transferred to Liabilities of discontinued operations held-for-sale average corporate trust deposits.
(c)	As a result of restructuring certain multi-seller conduits the Firm administers, during the second quarter of 2006, JPMorgan Chase deconsolidated $29 billion of Interests in Purchased Receivables, $3 billion of Loans and $1 billion of Securities, and recorded $33 billion of Lending-Related Commitments.
(d)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses, including trustee, paying agent, loan agency and document management services, for the consumer, small business and middle market banking businesses of The Bank of New York. These corporate trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet activity has been transferred to the Corporate segment for all periods presented.
(e)	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”). That presentation, which is referred to as “reported basis,” provides the reader with an understanding of the Firm’s results that can be tracked consistently from year to year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s 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 includes the following adjustments: for Card Services and the Firm as a whole, the impact of credit card securitizations are excluded; and for each line of business and the Firm as a whole, Total net revenue is shown 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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
CREDIT CARD INCOME
Credit Card Income - Reported	$	1,567		$	1,791		$	1,910		$	1,402		$	1,855			(13	)%		(16	)%	$	5,268		$	5,352			(2	)%
Impact of:
Credit Card Securitizations		(721	)		(937	)		(1,125	)		(442	)		(733	)		23			2			(2,783	)		(2,276	)		(22	)
Credit Card Income - Managed	$	846		$	854		$	785		$	960		$	1,122			(1	)		(25	)	$	2,485		$	3,076			(19	)
OTHER INCOME
Other Income - Reported	$	635		$	464		$	554		$	1,761		$	230			37			176		$	1,653		$	923			79
Impact of:
Tax Equivalent Adjustments		165			170			146			158			155			(3	)		6			481			413			16
Other Income - Managed	$	800		$	634		$	700		$	1,919		$	385			26			108		$	2,134		$	1,336			60
TOTAL NONINTEREST REVENUE
Total Noninterest Revenue - Reported	$	10,021		$	9,762		$	10,050		$	8,804		$	9,482			3			6		$	29,833		$	25,389			18
Impact of:
Credit Card Securitizations		(721	)		(937	)		(1,125	)		(442	)		(733	)		23			2			(2,783	)		(2,276	)		(22	)
Tax Equivalent Adjustments		165			170			146			158			155			(3	)		6			481			413			16
Total Noninterest Revenue - Managed	$	9,465		$	8,995		$	9,071		$	8,520		$	8,904			5			6		$	27,531		$	23,526			17
NET INTEREST INCOME
Net Interest Income - Reported	$	5,379		$	5,178		$	4,993		$	4,678		$	4,783			4			12		$	15,550		$	14,877			5
Impact of:
Credit Card Securitizations		1,328			1,498			1,574			1,504			1,600			(11	)		(17	)		4,400			4,990			(12	)
Tax Equivalent Adjustments		57			47			71			57			67			21			(15	)		175			212			(17	)
Net Interest Income - Managed	$	6,764		$	6,723		$	6,638		$	6,239		$	6,450			1			5		$	20,125		$	20,079			-
TOTAL NET REVENUE
Total Net Revenue - Reported	$	15,400		$	14,940		$	15,043		$	13,482		$	14,265			3			8		$	45,383		$	40,266			13
Impact of:
Credit Card Securitizations		607			561			449			1,062			867			8			(30	)		1,617			2,714			(40	)
Tax Equivalent Adjustments		222			217			217			215			222			2			-			656			625			5
Total Net Revenue - Managed	$	16,229		$	15,718		$	15,709		$	14,759		$	15,354			3			6		$	47,656		$	43,605			9
PROVISION FOR CREDIT LOSSES
Provision for Credit Losses - Reported	$	812		$	493		$	831		$	1,224		$	1,245			65			(35	)	$	2,136		$	2,259			(5	)
Impact of:
Credit Card Securitizations		607			561			449			1,062			867			8			(30	)		1,617			2,714			(40	)
Provision for Credit Losses - Managed	$	1,419		$	1,054		$	1,280		$	2,286		$	2,112			35			(33	)	$	3,753		$	4,973			(25	)
INCOME TAX EXPENSE
Income Tax Expense - Reported	$	1,705		$	1,727		$	1,537		$	1,186		$	1,192			(1	)		43		$	4,969		$	2,399			107
Impact of:
Tax Equivalent Adjustments		222			217			217			215			222			2			-			656			625			5
Income Tax Expense - Managed	$	1,927		$	1,944		$	1,754		$	1,401		$	1,414			(1	)		36		$	5,625		$	3,024			86

Page 6

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

(in millions, except ratio data)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
TOTAL NET REVENUE (FTE)
Investment Bank	$	4,673		$	4,184		$	4,699		$	3,195		$	4,471			12	%		5	%	$	13,556		$	11,418			19	%
Retail Financial Services		3,555			3,779			3,763			3,594			3,590			(6	)		(1	)		11,097			11,236			(1	)
Card Services		3,646			3,664			3,685			3,721			3,980			-			(8	)		10,995			11,645			(6	)
Commercial Banking		933			949			900			916			877			(2	)		6			2,782			2,572			8
Treasury & Securities Services		1,499			1,588			1,485			1,436			1,380			(6	)		9			4,572			4,103			11
Asset & Wealth Management		1,636			1,620			1,584			1,511			1,449			1			13			4,840			4,153			17
Corporate		287			(66	)		(407	)		386			(393	)		NM			NM			(186	)		(1,522	)		88
TOTAL NET REVENUE	$	16,229		$	15,718		$	15,709		$	14,759		$	15,354			3			6		$	47,656		$	43,605			9
NET INCOME (LOSS)
Investment Bank	$	976		$	839		$	850		$	667		$	1,068			16			(9	)	$	2,665		$	3,007			(11	)
Retail Financial Services		746			868			881			803			656			(14	)		14			2,495			2,624			(5	)
Card Services		711			875			901			302			541			(19	)		31			2,487			1,605			55
Commercial Banking		231			283			240			279			284			(18	)		(19	)		754			672			12
Treasury & Securities Services		256			316			262			254			222			(19	)		15			834			609			37
Asset & Wealth Management		346			343			313			342			315			1			10			1,002			874			15
Corporate (a)		31			16			(366	)		51			(559	)		94			NM			(319	)		(3,606	)		91
TOTAL NET INCOME (b)	$	3,297		$	3,540		$	3,081		$	2,698		$	2,527			(7	)		30		$	9,918		$	5,785			71
AVERAGE EQUITY (c)
Investment Bank	$	21,000		$	21,000		$	20,000		$	20,000		$	20,000			-			5		$	20,670		$	20,000			3
Retail Financial Services		14,300			14,300			13,896			13,700			13,475			-			6			14,167			13,276			7
Card Services		14,100			14,100			14,100			11,800			11,800			-			19			14,100			11,800			19
Commercial Banking		5,500			5,500			5,500			3,400			3,400			-			62			5,500			3,400			62
Treasury & Securities Services		2,200			2,200			2,545			1,525			1,525			-			44			2,314			1,525			52
Asset & Wealth Management		3,500			3,500			3,500			2,400			2,400			-			46			3,500			2,400			46
Corporate		51,206			48,357			47,626			53,100			52,881			6			(3	)		49,076			52,965			(7	)
TOTAL AVERAGE EQUITY	$	111,806		$	108,957		$	107,167		$	105,925		$	105,481			3			6		$	109,327		$	105,366			4
RETURN ON EQUITY (c)
Investment Bank		18	%		16	%		17	%		13	%		21	%								17	%		20	%
Retail Financial Services		21			24			26			23			19									24			26
Card Services		20			25			26			10			18									24			18
Commercial Banking		17			21			18			33			33									18			26
Treasury & Securities Services		46			58			42			66			58									48			53
Asset & Wealth Management		39			39			36			57			52									38			49

(a)	Includes the after-tax impact of discontinued operations, material litigation reserve charges/recoveries and Merger costs. See Corporate for additional details.
(b)	Net income includes Income from discontinued operations (after-tax) of $65 million, $56 million, $54 million, $56 million and $58 million for the quarter ended September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005 and September 30, 2005, respectively, and $175 million and $173 million year-to-date 2006 and 2005, respectively.
(c)	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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
INCOME STATEMENT
REVENUE
Investment Banking Fees	$	1,419		$	1,368		$	1,170		$	1,161		$	985			4	%		44	%	$	3,957		$	2,935			35	%
Principal Transactions		2,449			2,045			2,375			1,163			2,594			20			(6	)		6,869			4,896			40
Lending & Deposit Related Fees		127			134			137			143			148			(5	)		(14	)		398			451			(12	)
Asset Management, Administration and Commissions		468			550			552			460			445			(15	)		5			1,570			1,267			24
All Other Income		159			3			275			115			40		NM				298			437			419			4
Noninterest Revenue		4,622			4,100			4,509			3,042			4,212			13			10			13,231			9,968			33
Net Interest Income		51			84			190			153			259			(39	)		(80	)		325			1,450			(78	)
TOTAL NET REVENUE (a)		4,673			4,184			4,699			3,195			4,471			12			5			13,556			11,418			19
Provision for Credit Losses		7			(62	)		183			(83	)		(46	)	NM			NM				128			(755	)	NM
Credit Reimbursement from TSS (b)		30			30			30			40			38			-			(21	)		90			114			(21	)
NONINTEREST EXPENSE
Compensation Expense		2,093			1,961			2,256			1,096			1,885			7			11			6,310			4,696			34
Noncompensation Expense		1,008			985			935			1,067			992			2			2			2,928			2,889			1
TOTAL NONINTEREST EXPENSE		3,101			2,946			3,191			2,163			2,877			5			8			9,238			7,585			22
Income Before Income Tax Expense		1,595			1,330			1,355			1,155			1,678			20			(5	)		4,280			4,702			(9	)
Income Tax Expense		619			491			505			488			610			26			1			1,615			1,695			(5	)
NET INCOME	$	976		$	839		$	850		$	667		$	1,068			16			(9	)	$	2,665		$	3,007			(11	)
FINANCIAL RATIOS
ROE		18	%		16	%		17	%		13	%		21	%								17	%		20	%
ROA		0.62			0.50			0.53			0.43			0.69									0.55			0.68
Overhead Ratio		66			70			68			68			64									68			66
Compensation Expense as a % of Total Net Revenue (c)		44			45			43			34			42									44			41
REVENUE BY BUSINESS
Investment Banking Fees:
Advisory	$	436		$	352		$	389		$	341		$	300			24			45		$	1,177		$	922			28
Equity Underwriting		275			364			212			311			210			(24	)		31			851			553			54
Debt Underwriting		708			652			569			509			475			9			49			1,929			1,460			32
Total Investment Banking Fees		1,419			1,368			1,170			1,161			985			4			44			3,957			2,935			35
Fixed Income Markets		2,370			2,037			1,993			1,112			2,441			16			(3	)		6,400			6,165			4
Equities Markets		612			528			1,215			458			713			16			(14	)		2,355			1,341			76
Credit Portfolio		272			251			321			464			332			8			(18	)		844			977			(14	)
Total Net Revenue	$	4,673		$	4,184		$	4,699		$	3,195		$	4,471			12			5		$	13,556		$	11,418			19
REVENUE BY REGION
Americas	$	2,700		$	2,010		$	2,067		$	1,484		$	2,700			34			-		$	6,777		$	6,774			-
Europe/Middle East/Africa		1,678			1,747			2,047			1,266			1,272			(4	)		32			5,472			3,361			63
Asia/Pacific		295			427			585			445			499			(31	)		(41	)		1,307			1,283			2
Total Net Revenue	$	4,673		$	4,184		$	4,699		$	3,195		$	4,471			12			5		$	13,556		$	11,418			19

(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 $197 million, $193 million, $194 million, $191 million and $200 million for the quarters ended September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005 and September 30, 2005, and $584 million and $561 million year-to-date 2006 and 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)	Beginning in 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 for the incremental impact of adopting SFAS 123R provides a more meaningful measure of IB’s compensation expense to total net revenue ratio.

Page 8

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	626,245		$	672,056		$	646,220		$	618,171		$	617,717			(7	)%		1	%	$	648,101		$	593,557			9	%
Trading Assets - Debt and Equity Instruments		283,915			268,091			252,415			232,032			234,722			6			21			268,256			231,057			16
Trading Assets - Derivative Receivables		53,184			55,692			49,388			48,741			52,399			(5	)		1			52,769			57,429			(8	)
Loans:
Loans Retained (a)		61,623			59,026			53,678			48,438			47,411			4			30			58,137			43,591			33
Loans Held-for-Sale (b)		24,030			19,920			19,212			15,368			12,747			21			89			21,072			10,538			100
Total Loans		85,653			78,946			72,890			63,806			60,158			8			42			79,209			54,129			46
Adjusted Assets (c)		539,278			530,057			492,304			459,532			462,056			2			17			520,718			453,990			15
Equity		21,000			21,000			20,000			20,000			20,000			-			5			20,670			20,000			3
Headcount		23,447			22,914			21,705			19,802			19,558			2			20			23,447			19,558			20
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(8	)	$	(12	)	$	(21	)	$	(5	)	$	(69	)		33			88		$	(41	)	$	(121	)		66
Nonperforming Assets:
- Nonperforming Loans (d)		420			488			434			594			702			(14	)		(40	)		420			702			(40	)
- Other Nonperforming Assets		36			37			50			51			232			(3	)		(84	)		36			232			(84	)
Allowance for Loan Losses		1,010			1,038			1,117			907			1,002			(3	)		1			1,010			1,002			1
Allowance for Lending-Related Commitments		292			249			220			226			211			17			38			292			211			38
Net Charge-off (Recovery) Rate (b)		(0.05	)%		(0.08	)%		(0.16	)%		(0.04	)%		(0.58	)%								(0.09	)%		(0.37	)%
Allowance for Loan Losses to Average Loans (b)		1.64			1.76			2.08			1.87			2.11									1.74			2.30
Allowance for Loan Losses to Nonperforming Loans (d)		253			248			305			187			168									253			168
Nonperforming Loans to Average Loans		0.49			0.62			0.60			0.93			1.17									0.53			1.30
MARKET RISK - AVERAGE TRADING AND CREDIT PORTFOLIO VAR
Trading Activities:
Fixed Income	$	63		$	52		$	60		$	69		$	57			21			11		$	58		$	66			(12	)
Foreign Exchange		24			25			20			23			24			(4	)		-			23			23			-
Equities		32			24			32			30			41			33			(22	)		29			35			(17	)
Commodities and Other		46			52			47			35			24			(12	)		92			48			16			200
Diversification (e)		(82	)		(74	)		(68	)		(64	)		(62	)		(11	)		(32	)		(74	)		(56	)		(32	)
Total Trading VAR (f)		83			79			91			93			84			5			(1	)		84			84			-
Credit Portfolio VAR (g)		14			14			14			15			15			-			(7	)		14			14			-
Diversification (e)		(8	)		(9	)		(11	)		(13	)		(13	)		11			38			(9	)		(12	)		25
Total Trading and Credit Portfolio VAR	$	89		$	84		$	94		$	95		$	86			6			3		$	89		$	86			3

	YTD 2006		Full Year 2005
	Market		Market
MARKET SHARES AND RANKINGS (h)	Share	Rankings	Share	Rankings
Global Debt, Equity and Equity-Related	7%	#2	7%	#2
Global Syndicated Loans	15%	#1	15%	#1
Global Long-Term Debt	7%	#2	6%	#4
Global Equity and Equity-Related	8%	#5	7%	#6
Global Announced M&A	26%	#3	23%	#3
U.S. Debt, Equity and Equity-Related	9%	#2	8%	#3
U.S. Syndicated Loans	27%	#1	28%	#1
U.S. Long-Term Debt	12%	#2	11%	#2
U.S. Equity and Equity-Related	8%	#5	9%	#6
U.S. Announced M&A	28%	#2	26%	#3

(a)	Loans retained include Credit Portfolio, Conduit loans, leveraged 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 (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased; (2) assets of variable interest entities (VIEs) consolidated under FIN 46R; (3) cash and securities segregated and on deposit for regulatory and other purposes; and (4) 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 $21 million, $70 million, $68 million, $109 million and $106 million at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively. These amounts are not included in the allowance coverage ratios.
(e)	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.
(f)	Includes substantially all trading activities; however, particular risk parameters of certain products are not fully captured, for example, correlation risk.
(g)	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.
(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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	406		$	390		$	371		$	374		$	380			4	%		7	%	$	1,167		$	1,078			8	%
Asset Management, Administration and Commissions		326			366			437			365			370			(11	)		(12	)		1,129			1,133			-
Securities Gains (Losses)		(7	)		(39	)		(6	)		(1	)		-			82		NM				(52	)		10		NM
Mortgage Fees and Related Income		67			204			236			183			212			(67	)		(68	)		507			921			(45	)
Credit Card Income		136			129			115			118			109			5			25			380			308			23
All Other Income		170			163			48			73			7			4		NM				381			63		NM
Noninterest Revenue		1,098			1,213			1,201			1,112			1,078			(9	)		2			3,512			3,513			-
Net Interest Income		2,457			2,566			2,562			2,482			2,512			(4	)		(2	)		7,585			7,723			(2	)
TOTAL NET REVENUE		3,555			3,779			3,763			3,594			3,590			(6	)		(1	)		11,097			11,236			(1	)
Provision for Credit Losses (a)		114			100			85			158			378			14			(70	)		299			566			(47	)
NONINTEREST EXPENSE
Compensation Expense		886			901			920			853			842			(2	)		5			2,707			2,484			9
Noncompensation Expense		1,142			1,246			1,207			1,163			1,189			(8	)		(4	)		3,595			3,585			-
Amortization of Intangibles		111			112			111			125			125			(1	)		(11	)		334			375			(11	)
TOTAL NONINTEREST EXPENSE		2,139			2,259			2,238			2,141			2,156			(5	)		(1	)		6,636			6,444			3
Income Before Income Tax Expense		1,302			1,420			1,440			1,295			1,056			(8	)		23			4,162			4,226			(2	)
Income Tax Expense		556			552			559			492			400			1			39			1,667			1,602			4
NET INCOME	$	746		$	868		$	881		$	803		$	656			(14	)		14		$	2,495		$	2,624			(5	)
FINANCIAL RATIOS
ROE		21	%		24	%		26	%		23	%		19	%								24	%		26	%
ROA		1.31			1.49			1.54			1.40			1.14									1.45			1.55
Overhead Ratio		60			60			59			60			60									60			57
Overhead Ratio Excluding Core Deposit Intangibles (b)		57			57			57			56			57									57			54
SELECTED BALANCE SHEETS (Ending)
Assets	$	227,056		$	233,748		$	235,127		$	224,801		$	230,698			(3	)		(2	)	$	227,056		$	230,698			(2	)
Loans (c)		205,554			203,928			202,591			197,299			200,434			1			3			205,554			200,434			3
Deposits		198,260			198,273			200,154			191,415			187,621			-			6			198,260			187,621			6
SELECTED BALANCE SHEETS (Average)
Assets	$	225,307		$	234,097		$	231,587		$	226,866		$	227,875			(4	)		(1	)	$	230,307		$	226,200			2
Loans (d)		203,307			201,635			198,797			197,359			199,057			1			2			201,263			198,421			1
Deposits		198,967			199,075			194,382			189,113			187,216			-			6			197,491			186,035			6
Equity		14,300			14,300			13,896			13,700			13,475			-			6			14,167			13,276			7
Headcount		61,915			62,450			62,472			60,998			60,375			(1	)		3			61,915			60,375			3
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	128		$	113		$	121		$	162		$	144			13			(11	)	$	362		$	410			(12	)
Nonperforming Loans (e)		1,404			1,339			1,349			1,338			1,203			5			17			1,404			1,203			17
Nonperforming Assets		1,595			1,520			1,537			1,518			1,387			5			15			1,595			1,387			15
Allowance for Loan Losses		1,306			1,321			1,333			1,363			1,375			(1	)		(5	)		1,306			1,375			(5	)
Net Charge-off Rate (d)		0.27	%		0.24	%		0.27	%		0.36	%		0.31	%								0.26	%		0.30	%
Allowance for Loan Losses to Ending Loans (c)		0.69			0.69			0.71			0.75			0.75									0.69			0.75
Allowance for Loan Losses to Nonperforming Loans (e)		95			99			100			104			115									95			115
Nonperforming Loans to Total Loans		0.68			0.66			0.67			0.68			0.60									0.68			0.60

(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. 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, $110 million, $109 million, $124 million, and $124 million for the quarters ending September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, and $328 million and $372 million year-to-date 2006 and 2005, respectively.
(c)	Includes loans held-for-sale of $17,005 million, $11,834 million, $14,343 million, $16,598 million and $17,695 million at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively. These amounts are not included in the allowance coverage ratios.
(d)	Average loans include loans held-for-sale of $13,994 million, $12,903 million, $16,362 million, $16,505 million and $15,707 million for the quarters ended September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively. The year-to-date average loans held-for-sale were $14,411 million and $15,395 million for 2006 and 2005, respectively. These amounts are not included in the net charge-off rate.
(e)	Nonperforming loans include loans held-for-sale of $24 million, $9 million, $16 million, $27 million and $10 million at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
REGIONAL BANKING
Noninterest Revenue	$	855		$	851		$	820		$	701		$	789			-	%		8	%	$	2,526		$	2,437			4	%
Net Interest Income		2,107			2,212			2,220			2,101			2,089			(5	)		1			6,539			6,430			2
Total Net Revenue		2,962			3,063			3,040			2,802			2,878			(3	)		3			9,065			8,867			2
Provision for Credit Losses		53			70			66			87			297			(24	)		(82	)		189			425			(56	)
Noninterest Expense		1,611			1,746			1,738			1,636			1,673			(8	)		(4	)		5,095			5,039			1
Income Before Income Tax Expense		1,298			1,247			1,236			1,079			908			4			43			3,781			3,403			11
Net Income		744			764			757			669			563			(3	)		32			2,265			2,111			7
ROE		29	%		30	%		31	%		28	%		24	%								30	%		31	%
ROA		1.86			1.86			1.95			1.73			1.46									1.89			1.88
Overhead Ratio		54			57			57			58			58									56			57
Overhead Ratio Excluding Core Deposit Intangibles (a)		51			53			54			54			54									53			53
BUSINESS METRICS (in billions)
Home Equity Origination Volume	$	13.3		$	14.0		$	11.7		$	12.1		$	14.3			(5	)		(7	)	$	39.0		$	42.0			(7	)
End of Period Loans Owned:
Home Equity	$	80.4		$	77.8		$	75.3		$	73.9		$	72.5			3			11		$	80.4		$	72.5			11
Mortgage		46.6			48.6			47.0			44.6			47.0			(4	)		(1	)		46.6			47.0			(1	)
Business Banking		13.1			13.0			12.8			12.8			12.7			1			3			13.1			12.7			3
Education		9.4			8.3			9.5			3.0			2.9			13			224			9.4			2.9			224
Other Loans (b)		2.2			2.6			2.7			2.6			2.9			(15	)		(24	)		2.2			2.9			(24	)
Total End of Period Loans		151.7			150.3			147.3			136.9			138.0			1			10			151.7			138.0			10
End of Period Deposits:
Checking	$	59.8		$	62.3		$	64.9		$	64.9		$	62.3			(4	)		(4	)	$	59.8		$	62.3			(4	)
Savings		86.9			89.1			91.0			87.7			86.9			(2	)		-			86.9			86.9			-
Time and Other		41.5			36.5			34.2			29.7			27.0			14			54			41.5			27.0			54
Total End of Period Deposits		188.2			187.9			190.1			182.3			176.2			-			7			188.2			176.2			7
Average Loans Owned:
Home Equity	$	78.8		$	76.2		$	74.1		$	72.7		$	71.7			3			10		$	76.4		$	69.0			11
Mortgage Loans		47.8			47.1			44.6			45.6			46.6			1			3			46.5			45.3			3
Business Banking		13.0			13.0			12.8			12.6			12.5			-			4			12.9			12.5			3
Education		8.9			8.7			5.4			2.6			2.2			2			305			7.7			2.8			175
Other Loans (b)		2.2			2.6			3.0			2.7			2.6			(15	)		(15	)		2.6			3.3			(21	)
Total Average Loans (c)		150.7			147.6			139.9			136.2			135.6			2			11			146.1			132.9			10
Average Deposits:
Checking	$	60.3		$	62.6		$	63.0		$	61.7		$	61.0			(4	)		(1	)	$	61.9		$	61.7			-
Savings		88.1			89.8			89.3			87.8			87.1			(2	)		1			89.1			87.4			2
Time and Other		39.0			35.4			32.4			28.1			26.3			10			48			35.6			25.4			40
Total Average Deposits		187.4			187.8			184.7			177.6			174.4			-			7			186.6			174.5			7
Average Assets		159.1			164.6			157.1			153.4			152.9			(3	)		4			160.3			150.0			7
Average Equity		10.2			10.2			9.8			9.4			9.2			-			11			10.1			9.0			12

Page 11

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data and where otherwise noted)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
REGIONAL BANKING (continued)
CREDIT DATA AND QUALITY STATISTICS
30+ Day Delinquency Rate (d) (e)		1.57	%		1.48	%		1.36	%		1.68	%		1.45	%								1.57	%		1.45	%
Net Charge-offs
Home Equity	$	29		$	30		$	33		$	42		$	32			(3	)%		(9	)%	$	92		$	99			(7	)%
Mortgage		14			9			12			5			6			56			133			35			20			75
Business Banking		19			16			18			32			25			19			(24	)		53			69			(23	)
Other Loans (f)		1			13			7			6			11			(92	)		(91	)		21			22			(5	)
Total Net Charge-offs		63			68			70			85			74			(7	)		(15	)		201			210			(4	)
Net Charge-off
Home Equity		0.15	%		0.16	%		0.18	%		0.23	%		0.18	%								0.16	%		0.19	%
Mortgage		0.12			0.08			0.11			0.04			0.05									0.10			0.06
Business Banking		0.58			0.49			0.57			1.01			0.79									0.55			0.74
Other Loans (c) (f)		0.05			0.55			0.56			0.88			1.68									0.36			0.92
Total Net Charge-off Rate (c) (f)		0.17			0.19			0.21			0.25			0.22									0.19			0.22
Nonperforming Assets (g) (h) (i)	$	1,421		$	1,349		$	1,339		$	1,282		$	1,141			5			25		$	1,421		$	1,141			25
RETAIL BRANCH BUSINESS METRICS
Investment Sales Volume	$	3,536		$	3,692		$	3,553		$	2,622		$	2,745			(4	)		29		$	10,781		$	8,522			27
Number of:
Branches		2,677			2,660			2,638			2,641			2,549			17	#		128	#		2,677			2,549			128	#
ATMs		7,825			7,753			7,400			7,312			7,136			72			689			7,825			7,136			689
Personal Bankers		7,484			7,260			7,019			7,067			6,719			224			765			7,484			6,719			765
Sales Specialists		3,471			3,376			3,318			3,214			3,117			95			354			3,471			3,117			354
Active Online Customers (in thousands)		5,340			5,072			5,030			4,231			4,099			268			1,241			5,340			4,099			1,241
Checking Accounts (in thousands)		9,270			9,072			8,936			8,793			8,702			198			568			9,270			8,702			568
MORTGAGE BANKING
Production Revenue	$	197		$	202		$	219		$	134		$	229			(2	)%		(14	)%	$	618		$	610			1	%
Net Mortgage Servicing Revenue:
Servicing Revenue		579			563			560			546			533			3			9			1,702			1,569			8
Changes in MSR Asset Fair Value:
Due to Inputs or Assumptions in Model (j)		(1,075	)		491			711			157			767		NM			NM				127			613			(79	)
Other Changes in Fair Value (k)		(327	)		(392	)		(349	)		(309	)		(323	)		17			(1	)		(1,068	)		(986	)		(8	)
Derivative Valuation Adjustments and Other		824			(546	)		(753	)		(104	)		(814	)	NM			NM				(475	)		(390	)		(22	)
Total Net Mortgage Servicing Revenue		1			116			169			290			163			(99	)		(99	)		286			806			(65	)
Total Net Revenue		198			318			388			424			392			(38	)		(49	)		904			1,416			(36	)
Noninterest Expense		334			329			324			325			309			2			8			987			914			8
Income (Loss) Before Income Tax Expense		(136	)		(11	)		64			99			83		NM			NM				(83	)		502		NM
Net Income (Loss)		(83	)		(7	)		39			63			53		NM			NM				(51	)		316		NM
ROE	NM			NM				9	%		16	%		13	%							NM				26	%
ROA	NM			NM				0.58			1.03			0.89								NM				1.94
Business Metrics (in billions)
Third Party Mortgage Loans Serviced (Ending)	$	510.7		$	497.4		$	484.1		$	467.5		$	450.3			3			13		$	510.7		$	450.3			13
MSR Net Carrying Value (Ending)		7.4			8.2			7.5			6.5			6.1			(10	)		21			7.4			6.1			21
Average Mortgage Loans Held-for-Sale		10.5			9.8			13.0			13.1			13.5			7			(22	)		11.1			11.8			(6	)
Average Assets		22.4			23.9			27.1			24.2			23.7			(6	)		(5	)		24.5			21.8			12
Average Equity		1.7			1.7			1.7			1.6			1.6			-			6			1.7			1.6			6
Mortgage Origination Volume by Channel (in billions)
Retail	$	10.1		$	10.8		$	9.1		$	10.7		$	13.9			(6	)		(27	)	$	30.0		$	35.6			(16	)
Wholesale		7.7			8.7			7.4			8.2			10.1			(11	)		(24	)		23.8			26.0			(8	)
Correspondent (Including Negotiated Transactions) (l)		10.6			12.0			11.7			13.0			15.3			(12	)		(31	)		34.3			35.5			(3	)
Total		28.4			31.5			28.2			31.9			39.3			(10	)		(28	)		88.1			97.1			(9	)

Page 12

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
AUTO FINANCE
Noninterest Revenue	$	110		$	90		$	44		$	75		$	14			22	%	NM			$	244		$	11		NM
Net Interest Income		285			308			291			293			306			(7	)		(7	)%		884			942			(6	)%
Total Net Revenue		395			398			335			368			320			(1	)		23			1,128			953			18
Provision for Credit Losses		61			30			19			71			81			103			(25	)		110			141			(22	)
Noninterest Expense		194			184			176			180			174			5			11			554			491			13
Income Before Income Tax Expense		140			184			140			117			65			(24	)		115			464			321			45
Net Income		85			111			85			71			40			(23	)		113			281			197			43
ROE		14	%		19	%		14	%		10	%		6	%								16	%		10	%
ROA		0.77			0.98			0.73			0.57			0.31									0.82			0.48
Business Metrics (in billions)
Auto Origination Volume	$	5.5		$	4.5		$	4.3		$	4.1		$	5.1			22			8		$	14.3		$	14.0			2
End-of-Period Loans and Lease Related Assets
Loans Outstanding	$	38.1		$	39.4		$	41.0		$	41.7		$	43.3			(3	)		(12	)	$	38.1		$	43.3			(12	)
Lease Financing Receivables		2.2			2.8			3.6			4.3			5.1			(21	)		(57	)		2.2			5.1			(57	)
Operating Lease Assets		1.5			1.3			1.1			0.9			0.7			15			114			1.5			0.7			114
Total End-of-Period Loans and Lease Related Assets		41.8			43.5			45.7			46.9			49.1			(4	)		(15	)		41.8			49.1			(15	)
Average Loans and Lease Related Assets
Loans Outstanding (m)	$	38.9		$	40.3		$	41.2		$	42.6		$	43.7			(3	)		(11	)	$	40.1		$	46.5			(14	)
Lease Financing Receivables		2.5			3.2			4.0			4.7			5.6			(22	)		(55	)		3.2			6.6			(52	)
Operating Lease Assets		1.4			1.2			1.0			0.8			0.6			17			133			1.2			0.4			200
Total Average Loans and Lease Related Assets		42.8			44.7			46.2			48.1			49.9			(4	)		(14	)		44.5			53.5			(17	)
Average Assets		43.8			45.6			47.3			49.3			51.3			(4	)		(15	)		45.6			54.5			(16	)
Average Equity		2.4			2.4			2.4			2.7			2.7			-			(11	)		2.4			2.7			(11	)
Credit Quality Statistics
30+ Day Delinquency Rate		1.61	%		1.37	%		1.39	%		1.66	%		1.60	%								1.61	%		1.60	%
Net Charge-offs
Loans	$	63		$	44		$	48		$	72		$	66			43			(5	)	$	155		$	185			(16	)
Lease Receivables		2			1			3			5			4			100			(50	)		6			15			(60	)
Total Net Charge-offs		65			45			51			77			70			44			(7	)		161			200			(20	)
Net Charge-off Rate
Loans (m)		0.66	%		0.45	%		0.47	%		0.68	%		0.60	%								0.53	%		0.54	%
Lease Receivables		0.32			0.13			0.30			0.42			0.28									0.25			0.30
Total Net Charge-off Rate (m)		0.64			0.43			0.46			0.66			0.56									0.51			0.51
Nonperforming Assets	$	174		$	171		$	198		$	236		$	246			2			(29	)	$	174		$	246			(29	)

(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. 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, $110 million, $109 million, $124 million and $124 million for the quarters ending September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, and $328 million and $372 million year-to-date 2006 and 2005, respectively.
(b)	Includes commercial loans derived from community development activities and prior to July 3, 2006, includes insurance policy loans.
(c)	Average loans include loans held-for-sale of $2.5 billion, $1.9 billion, $3.3 billion, $2.6 billion and $2.2 billion for the quarters ended September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively. The year-to-date average loans held-for-sale were $2.6 billion and $2.9 billion for 2006 and 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, $0.8 billion, $0.9 billion, $0.9 billion and $0.8 billion at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 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 $0.5 billion, $0.4 billion and $0.4 billion at September 30, 2006, June 30, 2006 and March 31, 2006, respectively. Delinquencies were insignificant in the last two quarters 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, $1.1 billion, $1.1 billion and $1.0 billion at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 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 for each quarter in 2006. The Education loans past due 90 days were insignificant in the last two quarters of 2005. These amounts are excluded as reimbursement is proceeding normally.
(i)	Includes nonperforming loans held-for-sale related to mortgage banking activities of $3 million, $9 million, $16 million, $27 million and $10 million at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively.
(j)	Represents MSR asset fair value adjustments due to changes in inputs, such as interest rates and volatility, as well as updates to assumptions used in the valuation model.
(k)	Includes changes in the MSR value due to servicing portfolio runoff (or time decay). Effective January 1, 2006, the Firm implemented SFAS 156, adopting fair value for the MSR asset. For periods prior to January 1, 2006, this amount represents MSR asset amortization expense calculated in accordance with SFAS 140.
(l)	Excludes purchased correspondent bulk servicing. Prior periods have been restated to conform with current methodologies.
(m)	Average loans include loans held-for-sale of $0.9 billion, $1.2 billion and $0.8 billion for the quarters ended September 30, 2006, June 30, 2006 and December 31, 2005, respectively. Average loans held-for-sale for the quarters ended September 30, 2005 and March 31, 2006 were insignificant. The year-to-date average loans held-for-sale was $0.7 billion for both 2006 and 2005. 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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
INCOME STATEMENT
REVENUE
Credit Card Income	$	636		$	653		$	601		$	772		$	950			(3	)%		(33	)%	$	1,890		$	2,579			(27	)%
All Other Income		126			49			71			99			60			157			110			246			113			118
Noninterest Revenue		762			702			672			871			1,010			9			(25	)		2,136			2,692			(21	)
Net Interest Income		2,884			2,962			3,013			2,850			2,970			(3	)		(3	)		8,859			8,953			(1	)
TOTAL NET REVENUE (a)		3,646			3,664			3,685			3,721			3,980			-			(8	)		10,995			11,645			(6	)
Provision for Credit Losses (b)		1,270			1,031			1,016			2,236			1,833			23			(31	)		3,317			5,110			(35	)
NONINTEREST EXPENSE
Compensation Expense		251			251			259			221			284			-			(12	)		761			860			(12	)
Noncompensation Expense		823			810			796			614			813			2			1			2,429			2,556			(5	)
Amortization of Intangibles		179			188			188			182			189			(5	)		(5	)		555			566			(2	)
TOTAL NONINTEREST EXPENSE (a)		1,253			1,249			1,243			1,017			1,286			-			(3	)		3,745			3,982			(6	)
Income Before Income Tax Expense (a)		1,123			1,384			1,426			468			861			(19	)		30			3,933			2,553			54
Income Tax Expense		412			509			525			166			320			(19	)		29			1,446			948			53
NET INCOME	$	711		$	875		$	901		$	302		$	541			(19	)		31		$	2,487		$	1,605			55
Memo: Net Securitization Gains (Amortization)	$	48		$	(6	)	$	8		$	28		$	25		NM				92		$	50		$	28			79
FINANCIAL METRICS
ROE		20	%		25	%		26	%		10	%		18	%								24	%		18	%
Overhead Ratio		34			34			34			27			32									34			34
% of Average Managed Outstandings:
Net Interest Income		8.07			8.66			8.85			8.14			8.55									8.52			8.83
Provision for Credit Losses		3.56			3.01			2.99			6.39			5.28									3.19			5.04
Noninterest Revenue		2.13			2.05			1.97			2.49			2.91									2.05			2.66
Risk Adjusted Margin (c)		6.65			7.70			7.84			4.24			6.18									7.39			6.45
Noninterest Expense		3.51			3.65			3.65			2.91			3.70									3.60			3.93
Pre-tax Income (ROO)		3.14			4.05			4.19			1.34			2.48									3.78			2.52
Net Income		1.99			2.56			2.65			0.86			1.56									2.39			1.58
BUSINESS METRICS
Charge Volume (in billions)	$	87.5		$	84.4		$	74.3		$	79.6		$	76.4			4			15		$	246.2		$	222.3			11
Net Accounts Opened (in thousands) (d)		4,186			24,573			2,718			12,501			3,022			(83	)		39			31,477			8,555			268
Credit Cards Issued (in thousands)		139,513			136,685			112,446			110,439			98,236			2			42			139,513			98,236			42
Number of Registered Internet Customers (in millions)		20.4			19.1			15.9			14.6			14.6			7			40			20.4			14.6			40
Merchant Acquiring Business (e)
Bank Card Volume (in billions)	$	168.7		$	166.3		$	147.7		$	153.4		$	143.4			1			18		$	482.7		$	409.7			18
Total Transactions (in millions) (f)		4,597			4,476			4,130			4,315			3,921			3			17			13,203			11,184			18

(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, Total 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)	Second quarter 2006 includes a $90 million release of Allowance for loan losses related to Hurricane Katrina. Third quarter 2005 includes a $100 million special provision related to Hurricane Katrina.
(c)	Represents Total Net Revenue less Provision for Credit Losses.
(d)	Second quarter 2006 includes 21 million accounts from the acquisition of the Kohl’s private label portfolio. Fourth quarter 2005 includes 10 million accounts from the acquisition of the Sears Canada portfolio.
(e)	Represents 100% of the merchant acquiring business.
(f)	Periods prior to the fourth quarter of 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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheets	$	78,587		$	72,961		$	64,691		$	71,738		$	68,479			8	%		15	%	$	78,587		$	68,479			15	%
Securitized Loans		65,245			66,349			69,580			70,527			69,095			(2	)		(6	)		65,245			69,095			(6	)
Managed Loans	$	143,832		$	139,310		$	134,271		$	142,265		$	137,574			3			5		$	143,832		$	137,574			5
SELECTED AVERAGE BALANCES
Managed Assets	$	148,272		$	144,284		$	145,994		$	144,166		$	144,225			3			3		$	146,192		$	141,180			4
Loans:
Loans on Balance Sheets	$	76,655		$	68,185		$	68,455		$	69,038		$	68,877			12			11		$	71,129		$	66,759			7
Securitized Loans		65,061			69,005			69,571			69,840			68,933			(6	)		(6	)		67,862			68,791			(1	)
Managed Loans	$	141,716		$	137,190		$	138,026		$	138,878		$	137,810			3			3		$	138,991		$	135,550			3
Equity		14,100			14,100			14,100			11,800			11,800			-			19			14,100			11,800			19
Headcount		18,696			18,753			18,801			18,629			19,463			-			(4	)		18,696			19,463			(4	)
CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,280		$	1,121		$	1,016		$	2,236		$	1,633			14			(22	)	$	3,417		$	4,864			(30	)
Net Charge-off Rate		3.58	%		3.28	%		2.99	%		6.39	%		4.70	%								3.29	%		4.80	%
Delinquency ratios
30+ days		3.17	%		3.14	%		3.10	%		2.79	%		3.39	%								3.17	%		3.39	%
90+ days		1.48			1.52			1.39			1.27			1.55									1.48			1.55
Allowance for Loan Losses	$	3,176		$	3,186		$	3,274		$	3,274		$	3,255			-			(2	)	$	3,176		$	3,255			(2	)
Allowance for Loan Losses to Period-end Loans		4.04	%		4.37	%		5.06	%		4.56	%		4.75	%								4.04	%		4.75	%

Page 15

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Data for the period	$	1,357		$	1,590		$	1,726		$	1,214		$	1,683			(15	)%		(19	)%	$	4,673		$	4,855			(4	)%
Securitization Adjustments		(721	)		(937	)		(1,125	)		(442	)		(733	)		23			2			(2,783	)		(2,276	)		(22	)
Managed Credit Card Income	$	636		$	653		$	601		$	772		$	950			(3	)		(33	)	$	1,890		$	2,579			(27	)
Net Interest Income
Reported Data for the Period	$	1,556		$	1,464		$	1,439		$	1,346		$	1,370			6			14		$	4,459		$	3,963			13
Securitization Adjustments		1,328			1,498			1,574			1,504			1,600			(11	)		(17	)		4,400			4,990			(12	)
Managed Net Interest Income	$	2,884		$	2,962		$	3,013		$	2,850		$	2,970			(3	)		(3	)	$	8,859		$	8,953			(1	)
Total Net Revenue
Reported Data for the Period	$	3,039		$	3,103		$	3,236		$	2,659		$	3,113			(2	)		(2	)	$	9,378		$	8,931			5
Securitization Adjustments		607			561			449			1,062			867			8			(30	)		1,617			2,714			(40	)
Managed Total Net Revenue	$	3,646		$	3,664		$	3,685		$	3,721		$	3,980			-			(8	)	$	10,995		$	11,645			(6	)
Provision for Credit Losses
Reported Data for the Period (b)	$	663		$	470		$	567		$	1,174		$	966			41			(31	)	$	1,700		$	2,396			(29	)
Securitization Adjustments		607			561			449			1,062			867			8			(30	)		1,617			2,714			(40	)
Managed Provision for Credit Losses (b)	$	1,270		$	1,031		$	1,016		$	2,236		$	1,833			23			(31	)	$	3,317		$	5,110			(35	)
BALANCE SHEETS - AVERAGE BALANCES (a)
Total Average Assets
Reported Data for the Period	$	85,301		$	77,371		$	78,437		$	76,207		$	77,204			10			10		$	80,395		$	74,263			8
Securitization Adjustments		62,971			66,913			67,557			67,959			67,021			(6	)		(6	)		65,797			66,917			(2	)
Managed Average Assets	$	148,272		$	144,284		$	145,994		$	144,166		$	144,225			3			3		$	146,192		$	141,180			4
CREDIT QUALITY STATISTICS (a)
Net Charge-offs
Reported Net Charge-offs Data for the period	$	673		$	560		$	567		$	1,174		$	766			20			(12	)	$	1,800		$	2,150			(16	)
Securitization Adjustments		607			561			449			1,062			867			8			(30	)		1,617			2,714			(40	)
Managed Net Charge-offs	$	1,280		$	1,121		$	1,016		$	2,236		$	1,633			14			(22	)	$	3,417		$	4,864			(30	)
RECONCILIATION OF CARD SERVICES’ MANAGED RESULTS TO ADJUSTED RESULTS AS IF PAYMENTECH HAD NOT BEEN CONSOLIDATED The financial information below is presented to illustrate the underlying trends of how Card Services may have appeared had Paymentech been deconsolidated prior to the earliest date indicated.
	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
Noninterest Revenue
Reported for the period	$	762		$	702		$	672		$	871		$	1,010			9	%		(25	)%	$	2,136		$	2,692			(21	)%
Adjustment for Paymentech		-			-			-			-			(145	)	NM			NM				-			(422	)	NM
Adjusted Noninterest Revenue	$	762		$	702		$	672		$	871		$	865			9			(12	)	$	2,136		$	2,270			(6	)
Total Net Revenue
Reported for the period	$	3,646		$	3,664		$	3,685		$	3,721		$	3,980			-			(8	)	$	10,995		$	11,645			(6	)
Adjustment for Paymentech		-			-			-			-			(151	)	NM			NM				-			(435	)	NM
Adjusted Total Net Revenue	$	3,646		$	3,664		$	3,685		$	3,721		$	3,829			-			(5	)	$	10,995		$	11,210			(2	)
Noninterest Expense
Reported for the period	$	1,253		$	1,249		$	1,243		$	1,017		$	1,286			-			(3	)	$	3,745		$	3,982			(6	)
Adjustment for Paymentech		-			-			-			-			(134	)	NM			NM				-			(389	)	NM
Adjusted Total Noninterest Expense	$	1,253		$	1,249		$	1,243		$	1,017		$	1,152			-			9		$	3,745		$	3,593			4

(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 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)

Second quarter 2006 includes a $90 million release of Allowance for loan losses related to Hurricane Katrina. 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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	145		$	147		$	142		$	143		$	145			(1)	%		-	%	$	434		$	429			1	%
Asset Management, Administration and Commissions		16			16			15			14			15			-			7			47			43			9
All Other Income (a)		95			111			76			97			94			(14	)		1			282			261			8
Noninterest Revenue		256			274			233			254			254			(7	)		1			763			733			4
Net Interest Income		677			675			667			662			623			-			9			2,019			1,839			10
TOTAL NET REVENUE		933			949			900			916			877			(2	)		6			2,782			2,572			8
Provision for Credit Losses (b)		54			(12	)		7			(17	)		(46	)	NM			NM				49			90			(46	)
NONINTEREST EXPENSE
Compensation Expense		190			179			197			171			164			6			16			566			484			17
Noncompensation Expense		296			302			285			289			279			(2	)		6			883			848			4
Amortization of Intangibles		14			15			16			16			15			(7	)		(7	)		45			49			(8	)
TOTAL NONINTEREST EXPENSE		500			496			498			476			458			1			9			1,494			1,381			8
Income Before Income Tax Expense		379			465			395			457			465			(18	)		(18	)		1,239			1,101			13
Income Tax Expense		148			182			155			178			181			(19	)		(18	)		485			429			13
NET INCOME	$	231		$	283		$	240		$	279		$	284			(18	)		(19	)	$	754		$	672			12
MEMO:
Revenue by Product:
Lending	$	335		$	331		$	319		$	310		$	302			1			11		$	985		$	905			9
Treasury Services		551			566			550			546			517			(3	)		7			1,667			1,516			10
Investment Banking		60			66			40			56			50			(9	)		20			166			150			11
Other		(13	)		(14	)		(9	)		4			8			7		NM				(36	)		1		NM
Total Commercial Banking Revenue	$	933		$	949		$	900		$	916		$	877			(2	)		6		$	2,782		$	2,572			8
IB Revenues, Gross (c)	$	170		$	186		$	114		$	150		$	145			(9	)		17		$	470		$	402			17
Revenue by Business:
Middle Market Banking	$	617		$	634		$	623		$	608		$	589			(3	)		5		$	1,874		$	1,750			7
Mid-Corporate Banking		160			161			137			148			141			(1	)		13			458			403			14
Real Estate		119			114			105			122			114			4			4			338			312			8
Other		37			40			35			38			33			(8	)		12			112			107			5
Total Commercial Banking Revenue	$	933		$	949		$	900		$	916		$	877			(2	)		6		$	2,782		$	2,572			8
FINANCIAL RATIOS
ROE		17	%		21	%		18	%		33	%		33	%								18	%		26	%
ROA		1.60			2.01			1.78			2.04			2.17									1.79			1.74
Overhead Ratio		54			52			55			52			52									54			54

(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.
(c)	Represents 100% of the revenue related to investment banking products for which there is a sharing agreement between Commercial Banking and the Investment Bank and for the investment banking products that are sold through Commercial Banking.

Page 17

JPMORGAN CHASE & CO.
COMMERCIAL BANKING

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	57,378		$	56,561		$	54,771		$	54,205		$	51,988			1	%		10	%	$	56,246		$	51,735			9	%
Loans and Leases (a)		53,404			52,413			50,836			50,042			47,999			2			11			52,227			47,468			10
Liability Balances (b)		72,009			72,556			70,763			68,895			64,772			(1	)		11			71,781			65,098			10
Equity		5,500			5,500			5,500			3,400			3,400			-			62			5,500			3,400			62
MEMO:
Loans by Business:
Middle Market Banking	$	32,890		$	32,492		$	31,861		$	32,014		$	31,402			1			5		$	32,418		$	30,917			5
Mid-Corporate Banking		8,756			8,269			7,577			7,055			6,434			6			36			8,205			6,163			33
Real Estate		7,564			7,515			7,436			7,350			6,623			1			14			7,505			6,760			11
Other		4,194			4,137			3,962			3,623			3,540			1			18			4,099			3,628			13
Total Commercial Banking Loans	$	53,404		$	52,413		$	50,836		$	50,042		$	47,999			2			11		$	52,227		$	47,468			10
Headcount		4,447			4,320			4,310			4,418			4,441			3			-			4,447			4,441			-
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	21		$	(3	)	$	(7	)	$	21		$	6		NM				250		$	11		$	5			120
Nonperforming Loans		157			225			202			272			369			(30	)		(57	)		157			369			(57	)
Allowance for Loan Losses		1,431			1,394			1,415			1,392			1,423			3			1			1,431			1,423			1
Allowance for Lending-Related Commitments		156			157			145			154			161			(1	)		(3	)		156			161			(3	)
Net Charge-off (Recovery) Rate (a)		0.16	%		(0.02)	%		(0.06)	%		0.17	%		0.05	%								0.03	%		0.01	%
Allowance for Loan Losses to Average Loans (a)		2.70			2.68			2.80			2.79			2.98									2.76			3.02
Allowance for Loan Losses to Nonperforming Loans		911			620			700			512			386									911			386
Nonperforming Loans to Average Loans		0.29			0.43			0.40			0.54			0.77									0.30			0.78

(a)

Average loans include loans held-for-sale of $359 million, $334 million, $268 million, $213 million and $298 million for the quarters ended September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively. The year-to-date average loans held-for-sale were $321 million and $307 million for 2006 and 2005, respectively. These amounts are not included in the net charge-off rate or allowance coverage ratios.

(b)

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

Page 18

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	183		$	184		$	182		$	184		$	179			(1)	%		2	%	$	549		$	547			-	%
Asset Management, Administration and Commissions		642			683			650			629			605			(6	)		6			1,975			1,780			11
All Other Income		155			178			146			134			127			(13	)		22			479			385			24
Noninterest Revenue		980			1,045			978			947			911			(6	)		8			3,003			2,712			11
Net Interest Income		519			543			507			489			469			(4	)		11			1,569			1,391			13
TOTAL NET REVENUE		1,499			1,588			1,485			1,436			1,380			(6	)		9			4,572			4,103			11
Provision for Credit Losses		1			4			(4	)		2			(1	)		(75	)		NM			1			(2	)	NM
Credit Reimbursement to IB (b)		(30	)		(30	)		(30	)		(40	)		(38	)		-			21			(90	)		(114	)		21
NONINTEREST EXPENSE
Compensation Expense		557			537			549			454			487			4			14			1,643			1,420			16
Noncompensation Expense		489			493			480			523			493			(1	)		(1	)		1,462			1,572			(7	)
Amortization of Intangibles		18			20			19			20			19			(10	)		(5	)		57			61			(7	)
TOTAL NONINTEREST EXPENSE		1,064			1,050			1,048			997			999			1			7			3,162			3,053			4
Income before Income Tax Expense		404			504			411			397			344			(20	)		17			1,319			938			41
Income Tax Expense		148			188			149			143			122			(21	)		21			485			329			47
NET INCOME	$	256		$	316		$	262		$	254		$	222			(19	)		15		$	834		$	609			37
REVENUE BY BUSINESS
Treasury Services	$	697		$	702		$	693		$	687		$	670			(1	)		4		$	2,092		$	2,009			4
Worldwide Securities Services		802			886			792			749			710			(9	)		13			2,480			2,094			18
TOTAL NET REVENUE	$	1,499		$	1,588		$	1,485		$	1,436		$	1,380			(6	)		9		$	4,572		$	4,103			11
FINANCIAL RATIOS
ROE		46	%		58	%		42	%		66	%		58	%								48	%		53	%
Overhead Ratio		71			66			71			69			72									69			74
Pre-tax Margin Ratio (c)		27			32			28			28			25									29			23
FIRMWIDE BUSINESS METRICS
Assets under Custody (in billions)	$	12,873		$	11,536		$	11,179		$	10,662		$	10,448			12			23		$	12,873		$	10,448			23
Number of:
US$ ACH transactions originated (in millions)		886			848			838			787			753			4			18			2,572			2,179			18
Total US$ Clearing Volume (in thousands)		26,252			26,506			25,182			24,902			24,906			(1	)		5			77,940			70,811			10
International Electronic Funds Transfer Volume (in thousands) (d)		35,322			35,255			33,741			29,641			22,723			-			55			104,318			59,896			74
Wholesale Check Volume (in millions)		860			904			852			876			928			(5	)		(7	)		2,616			2,859			(8	)
Wholesale Cards Issued (in thousands) (e)		16,662			16,271			16,977			13,206			12,810			2			30			16,662			12,810			30

Page 19

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
SELECTED BALANCE SHEETS (Average)
Total Assets	$	30,558		$	31,774		$	29,230		$	29,280		$	27,679			(4)	%		10	%	$	30,526		$	27,846			10	%
Loans		15,231			14,993			12,940			13,826			12,160			2			25			14,396			11,851			21
Liability Balances (f)		192,518			194,181			178,133			161,976			157,493			(1	)		22			188,330			152,289			24
Equity		2,200			2,200			2,545			1,525			1,525			-			44			2,314			1,525			52
Headcount		24,575			24,100			23,598			22,207			21,878			2			12			24,575			21,878			12
TSS FIRMWIDE METRICS
Treasury Services Firmwide Revenue (g)	$	1,300		$	1,318		$	1,291		$	1,280		$	1,232			(1	)		6		$	3,909		$	3,657			7
Treasury & Securities Services Firmwide Revenue (g)		2,102			2,204			2,083			2,029			1,942			(5	)		8			6,389			5,751			11
Treasury Services Firmwide Overhead Ratio (h)		57	%		56	%		56	%		57	%		59	%								56	%		58	%
Treasury & Securities Services Firmwide Overhead Ratio (h)		63			59			62			62			64									61			66
Treasury Services Firmwide Liability Balances (Average) (i)	$	162,326		$	161,866		$	155,422		$	146,266		$	140,079			-			16		$	159,897		$	137,325			16
Treasury & Securities Services Firmwide Liability Balances (Average) (i)		264,527			265,398			248,328			230,854			222,264			-			19			259,477			217,387			19

FOOTNOTES

(a)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses, including trustee, paying agent, loan agency and document management services, for the consumer, small business and middle market banking businesses of The Bank of New York. These corporate trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet, income statement and assets under custody activity has been transferred to the Corporate segment for all periods presented.
(b)	Treasury & Securities Services (“TSS”) is charged a credit reimbursement related to certain exposures managed within the Investment Bank (“IB”) credit portfolio on behalf of clients shared with TSS.
(c)	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.
(d)	International Electronic Funds Transfer includes non-US$ ACH and clearing volume.
(e)	Wholesale cards issued include domestic commercial card, stored value card, prepaid card, and government electronic benefit card products.
(f)	Liability balances include deposits and deposits swept to on-balance sheet liabilities.

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.

(g)	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 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 $85 million for the quarter ended September 30, 2006 and $349 million year-to-date 2006.
(h)	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.
(i)	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																YEAR-TO-DATE
											3Q06 Change										2006 Change
	3Q06		2Q06		1Q06		4Q05		3Q05		2Q06			3Q05			2006		2005		2005
TS Revenue Reported in CB	$	551	$	566	$	550	$	546	$	517		(3	)%		7	%	$	1,667	$	1,516		10	%
TS Revenue Reported in Other Lines of Business		52		50		48		47		45		4			16			150		132		14

Page 20

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
INCOME STATEMENT
REVENUE
Asset Management, Administration and Commissions	$	1,285		$	1,279		$	1,222		$	1,155		$	1,065			-	%		21	%	$	3,786		$	3,034			25	%
All Other Income		120			93			116			98			117			29			3			329			296			11
Noninterest Revenue		1,405			1,372			1,338			1,253			1,182			2			19			4,115			3,330			24
Net Interest Income		231			248			246			258			267			(7	)		(13	)		725			823			(12	)
TOTAL NET REVENUE		1,636			1,620			1,584			1,511			1,449			1			13			4,840			4,153			17
Provision for Credit Losses (a)		(28	)		(7	)		(7	)		(10	)		(19	)		(300	)		(47	)		(42	)		(46	)		9
NONINTEREST EXPENSE
Compensation Expense		676			669			682			578			554			1			22			2,027			1,601			27
Noncompensation Expense		417			390			394			431			397			7			5			1,201			1,151			4
Amortization of Intangibles		22			22			22			24			25			-			(12	)		66			75			(12	)
TOTAL NONINTEREST EXPENSE		1,115			1,081			1,098			1,033			976			3			14			3,294			2,827			17
Income Before Income Tax Expense		549			546			493			488			492			1			12			1,588			1,372			16
Income Tax Expense		203			203			180			146			177			-			15			586			498			18
NET INCOME	$	346		$	343		$	313		$	342		$	315			1			10		$	1,002		$	874			15
REVENUE BY CLIENT SEGMENT
Private Bank	$	469		$	469		$	441		$	437		$	421			-			11		$	1,379		$	1,252			10
Institutional		464			449			435			402			358			3			30			1,348			993			36
Retail		456			446			442			420			415			2			10			1,344			1,124			20
Private Client Services		247			256			266			252			255			(4	)		(3	)		769			784			(2	)
Total Net Revenue	$	1,636		$	1,620		$	1,584		$	1,511		$	1,449			1			13		$	4,840		$	4,153			17
FINANCIAL RATIOS
ROE		39	%		39	%		36	%		57	%		52	%								38	%		49	%
Overhead Ratio		68			67			69			68			67									68			68
Pre-tax Margin Ratio (b)		34			34			31			32			34									33			33
BUSINESS METRICS
Number of:
Client Advisors		1,489			1,486			1,499			1,484			1,461			-			2			1,489			1,461			2
Retirement Planning Services Participants		1,372,000			1,361,000			1,327,000			1,299,000			1,293,000			1			6			1,372,000			1,293,000			6
% of Customer Assets in 4 & 5 Star Funds (c)		58	%		56	%		54	%		46	%		44	%		4			32			58	%		44	%		32
% of AUM in 1st and 2nd Quartiles: (d)
1 Year		79	%		71	%		72	%		69	%		62	%		11			27			79	%		62	%		27
3 Years		75	%		75	%		75	%		68	%		72	%		-			4			75	%		72	%		4
5 Years		80	%		81	%		75	%		74	%		72	%		(1	)		11			80	%		72	%		11
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	43,524		$	43,228		$	41,012		$	42,213		$	42,427			1			3		$	42,597		$	41,391			3
Loans (e)		26,770			25,807			24,482			26,657			26,850			4			-			25,695			26,595			(3	)
Deposits (e) (f)		51,395			51,583			48,066			44,205			41,453			-			24			50,360			41,421			22
Equity		3,500			3,500			3,500			2,400			2,400			-			46			3,500			2,400			46
Headcount		12,761			12,786			12,511			12,127			12,531			-			2			12,761			12,531			2
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(24	)	$	(4	)	$	7		$	8		$	23			(500	)	NM			$	(21	)	$	15		NM
Nonperforming Loans		57			76			79			104			118			(25	)		(52	)		57			118			(52	)
Allowance for Loan Losses		112			117			119			132			148			(4	)		(24	)		112			148			(24	)
Allowance for Lending Related Commitments		4			3			3			4			6			33			(33	)		4			6			(33	)
Net Charge-off (Recovery) Rate		(0.36	)%		(0.06	)%		0.12	%		0.12	%		0.34	%								(0.11	)%		0.08	%
Allowance for Loan Losses to Average Loans		0.42			0.45			0.49			0.50			0.55									0.44			0.56
Allowance for Loan Losses to Nonperforming Loans		196			154			151			127			125									196			125
Nonperforming Loans to Average Loans		0.21			0.29			0.32			0.39			0.44									0.22			0.44

(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 in 2005 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)

											Sep 30, 2006
											Change
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30			Sep 30
	2006		2006		2006		2005		2005		2006			2005
Assets by Asset Class
Liquidity (a)	$	281	$	247	$	236	$	238	$	239		14	%		18	%
Fixed Income		171		172		166		165		166		(1	)		3
Equities & Balanced		392		393		397		370		351		-			12
Alternatives		91		86		74		74		72		6			26
TOTAL ASSETS UNDER MANAGEMENT		935		898		873		847		828		4			13
Custody / Brokerage / Administration / Deposits		330		315		324		302		325		5			2
TOTAL ASSETS UNDER SUPERVISION	$	1,265	$	1,213	$	1,197	$	1,149	$	1,153		4			10
Assets by Client Segment
Institutional (b)	$	503	$	484	$	468	$	481	$	479		4			5
Private Bank		150		143		137		145		142		5			6
Retail (b)		228		219		214		169		155		4			47
Private Client Services		54		52		54		52		52		4			4
TOTAL ASSETS UNDER MANAGEMENT	$	935	$	898	$	873	$	847	$	828		4			13
Institutional (b)	$	505	$	486	$	471	$	484	$	483		4			5
Private Bank		347		331		332		318		309		5			12
Retail (b)		309		295		291		245		261		5			18
Private Client Services		104		101		103		102		100		3			4
TOTAL ASSETS UNDER SUPERVISION	$	1,265	$	1,213	$	1,197	$	1,149	$	1,153		4			10
Assets by Geographic Region
U.S. / Canada	$	596	$	577	$	564	$	562	$	548		3			9
International		339		321		309		285		280		6			21
TOTAL ASSETS UNDER MANAGEMENT	$	935	$	898	$	873	$	847	$	828		4			13
U.S. / Canada	$	855	$	828	$	822	$	805	$	815		3			5
International		410		385		375		344		338		6			21
TOTAL ASSETS UNDER SUPERVISION	$	1,265	$	1,213	$	1,197	$	1,149	$	1,153		4			10
Mutual Funds Assets by Asset Class
Liquidity	$	221	$	178	$	167	$	182	$	188		24			18
Fixed Income		45		47		48		45		39		(4	)		15
Equity		184		194		189		150		137		(5	)		34
TOTAL MUTUAL FUND ASSETS	$	450	$	419	$	404	$	377	$	364		7			24

(a)	Third quarter 2006 data reflects the reclassification of $19 billion of assets under management into liquidity from other asset classes. Prior period data were not restated.
(b)	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														YEAR-TO-DATE
	3Q06		2Q06			1Q06			4Q05			3Q05			2006		2005
ASSETS UNDER SUPERVISION (continued)
Assets Under Management Rollforward
Beginning Balance	$	898	$	873		$	847		$	828		$	783		$	847	$	791
Flows:
Liquidity		15		10			(5	)		-			19			20		8
Fixed Income		4		6			-			2			(4	)		10		(2	)
Equities, Balanced & Alternatives		3		13			13			11			4			29		13
Market / Performance / Other Impacts		15		(4	)		18			6			26			29		18
TOTAL ASSETS UNDER MANAGEMENT	$	935	$	898		$	873		$	847		$	828		$	935	$	828
Assets Under Supervision Rollforward
Beginning Balance	$	1,213	$	1,197		$	1,149		$	1,153		$	1,093		$	1,149	$	1,106
Net Asset Flows		26		33			12			15			28			71		34
Acquisitions / Divestitures (a)		-		-			-			(33	)		-			-		-
Market / Performance / Other Impacts		26		(17	)		36			14			32			45		13
TOTAL ASSETS UNDER SUPERVISION	$	1,265	$	1,213		$	1,197		$	1,149		$	1,153		$	1,265	$	1,153

(a) 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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
INCOME STATEMENT
REVENUE
Principal Transactions	$	193		$	550		$	196		$	229		$	262			(65	)%		(26	)%	$	939		$	1,294			(27	)%
Securities Gains (Losses)		24			(492	)		(158	)		(547	)		(43	)		NM			NM			(626	)		(938	)		33
All Other Income (a)		125			231			102			1,359			38			(46	)		229			458			222			106
Noninterest Revenue		342			289			140			1,041			257			18			33			771			578			33
Net Interest Income		(55	)		(355	)		(547	)		(655	)		(650	)		85			92			(957	)		(2,100	)		54
TOTAL NET REVENUE		287			(66	)		(407	)		386			(393	)		NM			NM			(186	)		(1,522	)		88
Provision for Credit Losses (b)		1			-			-			-			13			NM			(92	)		1			10			(90	)
NONINTEREST EXPENSE
Compensation Expense		737			770			685			864			738			(4	)		-			2,192			2,283			(4	)
Noncompensation Expense (c)		729			335			609			765			776			118			(6	)		1,673			5,198			(68	)
Merger Costs		48			86			71			77			221			(44	)		(78	)		205			645			(68	)
Subtotal		1,514			1,191			1,365			1,706			1,735			27			(13	)		4,070			8,126			(50	)
Net Expenses Allocated to Other Businesses		(1,035	)		(1,036	)		(1,033	)		(1,103	)		(1,128	)		-			8			(3,104	)		(3,402	)		9
TOTAL NONINTEREST EXPENSE		479			155			332			603			607			209			(21	)		966			4,724			(80	)
Income (Loss) from continuing operations before Income Tax Expense		(193	)		(221	)		(739	)		(217	)		(1,013	)		13			81			(1,153	)		(6,256	)		82
Income Tax Expense (Benefit)		(159	)		(181	)		(319	)		(212	)		(396	)		12			60			(659	)		(2,477	)		73
Income (Loss) from Continuing Operations	$	(34	)	$	(40	)	$	(420	)	$	(5	)	$	(617	)		15			94		$	(494	)	$	(3,779	)		87
Income from Discontinued Operations (after-tax) (d)		65			56			54			56			58			16			12			175			173			1
NET INCOME (LOSS)	$	31		$	16		$	(366	)	$	51		$	(559	)		94			NM		$	(319	)	$	(3,606	)		91
MEMO:
TOTAL NET REVENUE
Private Equity	$	188		$	500		$	204		$	251		$	272			(62	)		(31	)	$	892		$	1,271			(30	)
Treasury		185			(562	)		(466	)		(986	)		(489	)		NM			NM			(843	)		(2,294	)		63
Corporate Other (a)		(86	)		(4	)		(145	)		1,121			(176	)		NM			51			(235	)		(499	)		53
TOTAL NET REVENUE	$	287		$	(66	)	$	(407	)	$	386		$	(393	)		NM			NM		$	(186	)	$	(1,522	)		88
NET INCOME (LOSS)
Private Equity	$	95		$	293		$	103		$	121		$	141			(68	)		(33	)	$	491		$	700			(30	)
Treasury		70			(347	)		(272	)		(575	)		(301	)		NM			NM			(549	)		(1,454	)		62
Corporate Other (a) (c)		(169	)		67			(207	)		497			(320	)		NM			47			(309	)		(2,625	)		88
Merger Costs		(30	)		(53	)		(44	)		(48	)		(137	)		43			78			(127	)		(400	)		68
Income (Loss) from Continuing Operations	$	(34	)	$	(40	)	$	(420	)	$	(5	)	$	(617	)		15			94		$	(494	)	$	(3,779	)		87
Income from Discontinued Operations (after-tax)		65			56			54			56			58			16			12			175			173			1
TOTAL NET INCOME (LOSS)	$	31		$	16		$	(366	)	$	51		$	(559	)		94			NM		$	(319	)	$	(3,606	)		91
Headcount		25,748			27,100			27,390			30,666			30,709			(5	)		(16	)		25,748			30,709			(16	)

(a)	Includes a gain of $103 million in the second quarter of 2006 related to the initial public offering of MasterCard, and 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 $2,772 million year-to-date 2005 related to the settlement of the Enron and WorldCom class action litigations and for certain other material legal proceedings. In the third quarter of 2006, second quarter of 2006, first quarter of 2006 and fourth quarter of 2005, insurance recoveries relating to certain material litigation of $17 million, $260 million, $98 million and $208 million, respectively, were recorded. Year-to-date 2006, insurance recoveries relating to certain material litigation of $375 million were recorded.
(d)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses, including trustee, paying agent, loan agency and document management services, for the consumer, small business and middle market banking businesses of The Bank of New York. These corporate trust businesses, which were previously reported in Treasury & Securities Services, have been deemed discontinued operations. The related balance sheet, income statement and assets under custody activity has been transferred to the Corporate segment for all periods presented.

Page 24

JPMORGAN CHASE & CO.
CORPORATE

FINANCIAL HIGHLIGHTS, CONTINUED
(in millions)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
SUPPLEMENTAL
TREASURY
Securities Gains (Losses) (a)	$	24		$	(492	)	$	(158	)	$	(547	)	$	(43	)		NM			NM		$	(626	)	$	(939	)		33	%
Investment Securities Portfolio (Average)		68,619			63,714			39,989			37,814			39,351			8	%		74	%		57,545			49,453			16
Investment Securities Portfolio (Ending)		77,116			61,990			46,093			32,253			42,754			24			80			77,116			42,754			80
PRIVATE EQUITY
Private Equity Gains (Losses)
Direct Investments
Realized Gains	$	194		$	568		$	207		$	351		$	430			(66	)		(55	)	$	969		$	1,618			(40	)
Write-ups / (Write-downs)		(21	)		(74	)		10			(74	)		(71	)		72			70			(85	)		2			NM
Mark-to-Market Gains (Losses)		25			49			4			(32	)		(64	)		(49	)		NM			78			(306	)		NM
Total Direct Investments		198			543			221			245			295			(64	)		(33	)		962			1,314			(27	)
Third-Party Fund Investments		28			6			16			44			18			367			56			50			88			(43	)
Total Private Equity Gains (b)	$	226		$	549		$	237		$	289		$	313			(59	)		(28	)	$	1,012		$	1,402			(28	)
Private Equity Portfolio Information
Direct Investments
Publicly-Held Securities
Carrying Value	$	696		$	589		$	501		$	479		$	563			18			24
Cost		539			446			395			403			451			21			20
Quoted Public Value		1,022			808			677			683			795			26			29
Privately-Held Direct Securities
Carrying Value		4,241			4,321			5,077			5,028			4,793			(2	)		(12	)
Cost		5,482			5,647			6,501			6,463			6,187			(3	)		(11	)
Third-Party Fund Investments
Carrying Value		682			642			675			669			561			6			22
Cost		1,000			963			1,000			1,003			920			4			9
Total Private Equity Portfolio - Carrying Value	$	5,619		$	5,552		$	6,253		$	6,176		$	5,917			1			(5	)
Total Private Equity Portfolio - Cost	$	7,021		$	7,056		$	7,896		$	7,869		$	7,558			-			(7	)

(a)	Losses reflect repositioning of the Treasury investment securities portfolio. 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)

											Sep 30, 2006
											Change
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30			Sep 30
	2006		2006		2006		2005		2005		2006			2005
CREDIT EXPOSURE
WHOLESALE (a)
Loans - U.S.	$	123,791	$	125,870	$	118,501	$	112,065	$	113,048		(2	)%		10	%
Loans - Non-U.S.		55,612		52,345		46,298		38,046		38,543		6			44
TOTAL WHOLESALE LOANS - REPORTED		179,403		178,215		164,799		150,111		151,591		1			18
CONSUMER
Home Equity		80,399		77,826		75,241		73,866		72,504		3			11
Mortgage		60,075		60,014		57,690		58,959		60,995		-			(2	)
Auto Loans and Leases		40,310		42,184		44,600		46,081		48,444		(4	)		(17	)
All Other Loans		24,770		23,904		25,060		18,393		18,491		4			34
Total Retail Financial Services		205,554		203,928		202,591		197,299		200,434		1			3
Credit Card Receivables - Reported		78,587		72,961		64,691		71,738		68,479		8			15
TOTAL CONSUMER LOANS - REPORTED		284,141		276,889		267,282		269,037		268,913		3			6
TOTAL LOANS - REPORTED		463,544		455,104		432,081		419,148		420,504		2			10
Credit Card Securitizations		65,245		66,349		69,580		70,527		69,095		(2	)		(6	)
TOTAL LOANS - MANAGED		528,789		521,453		501,661		489,675		489,599		1			8
Derivative Receivables		58,265		54,075		52,750		49,787		54,389		8			7
Interests in Purchased Receivables (b) (c)		-		-		29,029		29,740		28,766		NM			NM
TOTAL CREDIT-RELATED ASSETS		587,054		575,528		583,440		569,202		572,754		2			2
Wholesale Lending-Related Commitments (c)		374,417		366,914		322,575		321,109		314,537		2			19
TOTAL	$	961,471	$	942,442	$	906,015	$	890,311	$	887,291		2			8
Memo: Total by Category
Total Wholesale Exposure (d)	$	612,085	$	599,204	$	569,153	$	550,747	$	549,283		2			11
Total Consumer Managed Loans (e)		349,386		343,238		336,862		339,564		338,008		2			3
Total	$	961,471	$	942,442	$	906,015	$	890,311	$	887,291		2			8
Risk Profile of Wholesale Credit Exposure:
Investment-Grade (f)	$	481,249	$	464,982	$	445,848	$	432,648	$	430,012		3			12
Noninvestment-Grade: (f)
Noncriticized		106,831		105,383		98,354		95,375		98,380		1			9
Criticized Performing		4,169		3,431		4,325		4,222		4,857		22			(14	)
Criticized Nonperforming		674		783		731		950		1,337		(14	)		(50	)
Total Noninvestment-Grade	$	111,674	$	109,597	$	103,410	$	100,547	$	104,574		2			7
Held-for-Sale:
Held-for-Sale Wholesale Loans	$	18,889	$	24,323	$	19,555	$	17,211	$	14,339		(22	)		32
Purchased Nonperforming Held-for-Sale Wholesale Loans (g)		273		302		340		341		358		(10	)		(24	)
Total Held-for-Sale	$	19,162	$	24,625	$	19,895	$	17,552	$	14,697		(22	)		30
Total Wholesale Exposure	$	612,085	$	599,204	$	569,153	$	550,747	$	549,283		2			11

(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)	As a result of restructuring certain multi-seller conduits the Firm administers, during the second quarter of 2006, JPMorgan Chase deconsolidated $29 billion of Interests in Purchased Receivables, $3 billion of Loans and $1 billion of Securities, and recorded $33 billion of Lending-Related Commitments.
(d)	Represents Total Wholesale Loans, Derivative Receivables, Interests in Purchased Receivables and Wholesale Lending-Related Commitments.
(e)	Represents Total Consumer Loans plus Credit Card Securitizations, excluding consumer lending-related commitments.
(f)	Excludes loans held-for-sale (“HFS”).
(g)	Represents distressed HFS 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)

																Sep 30, 2006
																Change
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30
	2006			2006			2006			2005			2005			2006			2005
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS
Loans - U.S.	$	486		$	663		$	572		$	819		$	914			(27	)%		(47	)%
Loans - Non-U.S.		170			148			165			173			278			15			(39	)
TOTAL WHOLESALE LOANS-REPORTED (a)		656			811			737			992			1,192			(19	)		(45	)
CONSUMER LOANS
Home Equity		400			403			451			422			394			(1	)		2
Mortgage		588			503			451			442			316			17			86
Auto Loans and Leases		130			133			157			193			202			(2	)		(36	)
All Other Loans		286			300			290			281			291			(5	)		(2	)
Total Retail Financial Services		1,404			1,339			1,349			1,338			1,203			5			17
Credit Card Receivables - Reported		10			11			12			13			9			(9	)		11
TOTAL CONSUMER LOANS-REPORTED		1,414			1,350			1,361			1,351			1,212			5			17
TOTAL LOANS REPORTED (a)		2,070			2,161			2,098			2,343			2,404			(4	)		(14	)
Derivative Receivables		35			36			49			50			231			(3	)		(85	)
Assets Acquired in Loan Satisfactions		195			187			201			197			204			4			(4	)
TOTAL NONPERFORMING ASSETS (a)	$	2,300		$	2,384		$	2,348		$	2,590		$	2,839			(4	)		(19	)
PURCHASED HELD-FOR-SALE WHOLESALE LOANS (b)	$	273		$	302		$	340		$	341		$	358			(10	)		(24	)
TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.45	%		0.47	%		0.49	%		0.56	%		0.57	%
NONPERFORMING ASSETS BY LOB
Investment Bank	$	456		$	525		$	484		$	645		$	934			(13	)		(51	)
Retail Financial Services		1,595			1,520			1,537			1,518			1,387			5			15
Card Services		10			11			12			13			9			(9	)		11
Commercial Banking		160			230			214			288			388			(30	)		(59	)
Treasury & Securities Services		22			22			22			22			3			-			NM
Asset & Wealth Management		57			76			79			104			118			(25	)		(52	)
TOTAL	$	2,300		$	2,384		$	2,348		$	2,590		$	2,839			(4	)		(19	)

(a)	Excludes purchased HFS wholesale loans.
(b)	Represents distressed HFS wholesale loans purchased as part of IB’s proprietary activities, which are excluded from nonperforming assets.

Page 27

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
GROSS CHARGE-OFFS
Wholesale Loans	$	48		$	23		$	39		$	123		$	40			109	%		20	%	$	110		$	132			(17	)%
Consumer (Excluding Card)		186			172			178			216			193			8			(4	)		536			579			(7	)
Credit Card Receivables - Reported		777			653			665			1,374			881			19			(12	)		2,095			2,445			(14	)
Total Loans - Reported		1,011			848			882			1,713			1,114			19			(9	)		2,741			3,156			(13	)
Credit Card Securitizations		702			656			527			1,243			999			7			(30	)		1,885			3,093			(39	)
Total Loans - Managed		1,713			1,504			1,409			2,956			2,113			14			(19	)		4,626			6,249			(26	)
RECOVERIES
Wholesale Loans		59			42			59			99			80			40			(26	)		160			233			(31	)
Consumer (Excluding Card)		58			59			57			54			49			(2	)		18			174			169			3
Credit Card Receivables - Reported		104			93			98			200			115			12			(10	)		295			295			-
Total Loans - Reported		221			194			214			353			244			14			(9	)		629			697			(10	)
Credit Card Securitizations		95			95			78			181			132			-			(28	)		268			379			(29	)
Total Loans - Managed		316			289			292			534			376			9			(16	)		897			1,076			(17	)
NET CHARGE-OFFS
Wholesale Loans		(11	)		(19	)		(20	)		24			(40	)		42			73			(50	)		(101	)		50
Consumer (Excluding Card)		128			113			121			162			144			13			(11	)		362			410			(12	)
Credit Card Receivables - Reported		673			560			567			1,174			766			20			(12	)		1,800			2,150			(16	)
Total Loans - Reported		790			654			668			1,360			870			21			(9	)		2,112			2,459			(14	)
Credit Card Securitizations		607			561			449			1,062			867			8			(30	)		1,617			2,714			(40	)
Total Loans - Managed	$	1,397		$	1,215		$	1,117		$	2,422		$	1,737			15			(20	)	$	3,729		$	5,173			(28	)
NET CHARGE-OFF RATES - ANNUALIZED
Wholesale Loans (a)		(0.03	)%		(0.05	)%		(0.06	)%		0.07	%		(0.12	)%								(0.04	)%		(0.10	)%
Consumer (Excluding Card) (b)		0.27			0.24			0.27			0.36			0.31									0.26			0.30
Credit Card Receivables - Reported		3.48			3.29			3.36			6.75			4.41									3.38			4.31
Total Loans - Reported (a) (b)		0.74			0.64			0.69			1.39			0.89									0.69			0.87
Credit Card Securitizations		3.70			3.26			2.62			6.03			4.99									3.19			5.27
Total Loans - Managed (a) (b)		1.13			1.02			0.98			2.09			1.51									1.05			1.54
Memo: Credit Card - Managed		3.58			3.28			2.99			6.39			4.70									3.29			4.80

(a)

Average wholesale loans held-for-sale were $24,389 million, $20,254 million, $19,480 million, $15,581 million and $13,045 million for the quarters ended September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively. The year-to-date average loans held-for-sale were $21,393 million and $10,845 million for 2006 and 2005, respectively. These amounts are not included in the net charge-off rates.

(b)

Average consumer loans (excluding Card) held-for-sale were $13,994 million, $12,903 million, $16,362 million, $16,505 million and $15,707 million for the quarters ended September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively. The year-to-date average loans held-for-sale were $14,411 million and $15,395 million for 2006 and 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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	7,076		$	7,275		$	7,090		$	7,220		$	6,794			(3	)%		4	%	$	7,090		$	7,320			(3	)%
Net Charge-Offs		(790	)		(654	)		(668	)		(1,360	)		(870	)		(21	)		9			(2,112	)		(2,459	)		14
Provision for Loan Losses		768			453			847			1,219			1,289			70			(40	)		2,068			2,356			(12	)
Other		2			2			6			11			7			-			(71	)		10			3			233
Ending Balance	$	7,056		$	7,076		$	7,275		$	7,090		$	7,220			-			(2	)	$	7,056		$	7,220			(2	)
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	424		$	384		$	400		$	395		$	439			10			(3	)	$	400		$	492			(19	)
Provision for Lending-Related Commitments		44			40			(16	)		5			(44	)		10		NM				68			(97	)	NM
Ending Balance	$	468		$	424		$	384		$	400		$	395			10			18		$	468		$	395			18
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset Specific	$	101		$	160		$	118		$	203		$	341			(37	)		(70	)
Formula - Based
Statistical Calculation		1,653			1,639			1,713			1,629			1,590			1			4
Adjustments to the Statistical Calculation		820			770			837			621			659			6			24
Total Wholesale		2,574			2,569			2,668			2,453			2,590			-			(1	)
Consumer
Formula - Based
Statistical Calculation		3,258			3,217			3,288			3,422			3,432			1			(5	)
Adjustments to the Statistical Calculation		1,224			1,290			1,319			1,215			1,198			(5	)		2
Total Consumer		4,482			4,507			4,607			4,637			4,630			(1	)		(3	)
Total Allowance for Loan Losses		7,056			7,076			7,275			7,090			7,220			-			(2	)
Allowance for Lending-Related Commitments		468			424			384			400			395			10			18
Total Allowance for Credit Losses	$	7,524		$	7,500		$	7,659		$	7,490		$	7,615			-			(1	)
Wholesale Allowance for Loan Losses to Total Wholesale Loans (a)		1.61	%		1.67	%		1.84	%		1.85	%		1.89	%
Consumer Allowance for Loan Losses to Total Consumer Loans (b)		1.68			1.70			1.82			1.84			1.84
Allowance for Loan Losses to Total Loans (a) (b)		1.65			1.69			1.83			1.84			1.86
Allowance for Loan Losses to Total Nonperforming Loans (c)		348			340			361			321			316
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,010		$	1,038		$	1,117		$	907		$	1,002			(3	)		1
Retail Financial Services		1,306			1,321			1,333			1,363			1,375			(1	)		(5	)
Card Services		3,176			3,186			3,274			3,274			3,255			-			(2	)
Commercial Banking		1,431			1,394			1,415			1,392			1,423			3			1
Treasury & Securities Services		9			9			6			11			6			-			50
Asset & Wealth Management		112			117			119			132			148			(4	)		(24	)
Corporate		12			11			11			11			11			9			9
Total	$	7,056		$	7,076		$	7,275		$	7,090		$	7,220			-			(2	)

(a)	Loans held-for-sale were $19,162 million, $24,625 million, $19,895 million, $17,552 million and $14,697 million at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively. These amounts are not included in the allowance coverage ratios.
(b)	Loans held-for-sale were $17,005 million, $11,834 million, $14,343 million, $16,598 million and $17,695 million at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively. These amounts are not included in the allowance coverage ratios.
(c)	Nonperforming loans held-for-sale were $45 million, $79 million, $84 million, $136 million and $116 million at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	(36	)	$	(91	)	$	189		$	(98	)	$	(32	)		60	%		(13	)%	$	62		$	(659	)	NM
Commercial Banking		55			(24	)		16			(10	)		(11	)	NM			NM				47			97			(52	)%
Treasury & Securities Services		1			4			(4	)		3			(1	)		(75	)	NM				1			(4	)	NM
Asset & Wealth Management		(29	)		(7	)		(6	)		(8	)		(22	)		(314	)		(32	)		(42	)		(47	)		11
Corporate		1			-			-			-			13		NM				(92	)		1			10			(90	)
Total Wholesale		(8	)		(118	)		195			(113	)		(53	)		93			85			69			(603	)	NM
Retail Financial Services		113			101			85			158			376			12			(70	)		299			563			(47	)
Card Services		663			470			567			1,174			966			41			(31	)		1,700			2,396			(29	)
Total Consumer		776			571			652			1,332			1,342			36			(42	)		1,999			2,959			(32	)
Total Provision for Loan Losses		768			453			847			1,219			1,289			70			(40	)		2,068			2,356			(12	)
LENDING-RELATED COMMITMENTS
Investment Bank	$	43		$	29		$	(6	)	$	15		$	(14	)		48		NM			$	66		$	(96	)	NM
Commercial Banking		(1	)		12			(9	)		(7	)		(35	)	NM				97			2			(7	)	NM
Treasury & Securities Services		-			-			-			(1	)		-		NM			NM				-			2		NM
Asset & Wealth Management		1			-			(1	)		(2	)		3		NM				(67	)		-			1		NM
Corporate		-			-			-			-			-		NM			NM				-			—		NM
Total Wholesale		43			41			(16	)		5			(46	)		5		NM				68			(100	)	NM
Retail Financial Services		1			(1	)		-			-			2		NM				(50	)		-			3		NM
Card Services		-			-			-			-			-		NM			NM				-			-		NM
Total Consumer		1			(1	)		-			-			2		NM				(50	)		-			3		NM
Total Provision for Lending-Related Commitments		44			40			(16	)		5			(44	)		10		NM				68			(97	)	NM
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	7		$	(62	)	$	183		$	(83	)	$	(46	)	NM			NM			$	128		$	(755	)	NM
Commercial Banking (a)		54			(12	)		7			(17	)		(46	)	NM			NM				49			90			(46	)
Treasury & Securities Services		1			4			(4	)		2			(1	)		(75	)	NM				1			(2	)	NM
Asset & Wealth Management (a)		(28	)		(7	)		(7	)		(10	)		(19	)		(300	)		(47	)		(42	)		(46	)		9
Corporate (a)		1			-			-			-			13		NM				(92	)		1			10			(90	)
Total Wholesale		35			(77	)		179			(108	)		(99	)	NM			NM				137			(703	)	NM
Retail Financial Services (a)		114			100			85			158			378			14			(70	)		299			566			(47	)
Card Services (a)		663			470			567			1,174			966			41			(31	)		1,700			2,396			(29	)
Total Consumer		777			570			652			1,332			1,344			36			(42	)		1,999			2,962			(33	)
Total Provision for Credit Losses		812			493			831			1,224			1,245			65			(35	)		2,136			2,259			(5	)
Securitized Credit Losses		607			561			449			1,062			867			8			(30	)		1,617			2,714			(40	)
Managed Provision for Credit Losses	$	1,419		$	1,054		$	1,280		$	2,286		$	2,112			35			(33	)	$	3,753		$	4,973			(25	)

(a) Second quarter 2006 includes a $90 million release of Allowance for loan losses related to Hurricane Katrina in Card Services. 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																					YEAR-TO-DATE
																3Q06 Change												2006 Change
	3Q06			2Q06			1Q06			4Q05			3Q05			2Q06			3Q05			2006			2005			2005
COMMON SHARES OUTSTANDING
Weighted-Average Basic Shares Outstanding		3,468.6			3,473.8			3,472.7			3,472.1			3,485.0			-	%		-	%		3,471.7			3,498.4			(1	)%
Weighted-Average Diluted Shares Outstanding		3,574.0			3,572.2			3,570.8			3,563.9			3,547.7			-			1			3,572.3			3,555.1			-
Common Shares Outstanding - at Period End		3,467.5			3,470.6			3,473.0			3,486.7			3,503.4			-			(1	)		3,467.5			3,503.4			(1	)
Cash Dividends Declared per Share	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34			-			-		$	1.02		$	1.02			-
Book Value per Share		32.75			31.89			31.19			30.71			30.26			3			8			32.75			30.26			8
Dividend Payout		37	%		35	%		39	%		44	%		48	%								37	%		63	%
NET INCOME	$	3,297		$	3,540		$	3,081		$	2,698		$	2,527			(7	)		30		$	9,918		$	5,785			71
Preferred Dividends		-			-			4			2			3		NM			NM				4			11			(64	)
Net Income Applicable to Common Stock	$	3,297		$	3,540		$	3,077		$	2,696		$	2,524			(7	)		31		$	9,914		$	5,774			72
NET INCOME PER SHARE
Basic Earnings per Share
Income from continuing operations	$	0.93		$	1.00		$	0.87		$	0.76		$	0.71			(7	)		31		$	2.81		$	1.60			76
Net Income		0.95			1.02			0.89			0.78			0.72			(7	)		32			2.86			1.65			73
Diluted Earnings per Share
Income from continuing operations	$	0.90		$	0.98		$	0.85		$	0.74		$	0.70			(8	)		29		$	2.73		$	1.58			73
Net Income		0.92			0.99			0.86			0.76			0.71			(7	)		30			2.78			1.62			72
SHARE PRICE
High	$	47.49		$	46.80		$	42.43		$	40.56		$	35.95			1			32		$	47.49		$	39.69			20
Low		40.40			39.33			37.88			32.92			33.31			3			21			37.88			33.31			14
Close		46.96			42.00			41.64			39.69			33.93			12			38			46.96			33.93			38
STOCK REPURCHASE PROGRAM (a) (b)
Aggregate Repurchases	$	900.0		$	745.5		$	1,290.3		$	1,000.0		$	500.0			21			80		$	2,935.8		$	2,409.3			22
Common Shares Repurchased		20.0			17.7			31.8			26.3			14.4			13			39			69.5			67.2			3
Average Purchase Price	$	44.88		$	42.24		$	40.54		$	38.05		$	34.61			6			30		$	42.22		$	35.50			19
CAPITAL RATIOS
Tier 1 Capital	$	79,830	(d)	$	74,983		$	73,085		$	72,474		$	70,745			6			13
Total Capital		111,670	(d)		106,283			103,800			102,437			98,254			5			14
Risk-Weighted Assets		925,724	(d)		884,228			858,080			850,643			866,289			5			7
Adjusted Average Assets		1,257,364	(d)		1,282,233			1,195,231			1,152,546			1,143,449			(2	)		10
Tier 1 Capital Ratio		8.6	%(d)		8.5	%		8.5	%		8.5	%		8.2	%
Total Capital Ratio		12.1	(d)		12.0			12.1			12.0			11.3
Tier 1 Leverage Ratio		6.3	(d)		5.8			6.1			6.3			6.2
INTANGIBLE ASSETS (PERIOD-END) (c)
Goodwill	$	43,372		$	43,498		$	43,899		$	43,621		$	43,555			-			-
Mortgage Servicing Rights		7,378			8,247			7,539			6,452			6,057			(11	)		22
Purchased Credit Card Relationships		2,982			3,138			3,243			3,275			3,352			(5	)		(11	)
All Other Intangibles		4,078			4,231			4,832			4,832			5,139			(4	)		(21	)
Total Intangibles	$	57,810		$	59,114		$	59,513		$	58,180		$	58,103			(2	)		(1	)

(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)	Third quarter and second quarter 2006 reflect the impact of discontinued operations.
(d)	Estimated.

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JPMORGAN CHASE & CO.
Glossary of Terms

ACH: Automated Clearing House

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 and discontinued operations.

Discontinued operations: A component of an entity that is classified as held-for-sale or that has been disposed of from ongoing operations in its entirety or piecemeal, and for which the entity will not have any significant continuing involvement. A discontinued operation may be a separate major business segment, a component of a major business segment or a geographical area of operations of the entity that can be separately distinguished operationally and for financial reporting purposes.

Managed Basis: Includes reclassifications related to credit card securitizations and taxable equivalents as described below. Management uses certain non-GAAP financial measures at the 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: Card Services’ managed results 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 the aggregate amount of interest income, certain fee revenue and recoveries that is in excess of the aggregate amount of interest paid to the investors, gross credit losses and other trust expenses related to the securitized receivables are reclassified into credit card income.

Tax-Equivalent Basis: Total net revenue for each of the business segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from tax exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to 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.

MSR Risk Management Revenue: Includes changes in MSR asset fair value due to inputs or assumptions in model and derivative valuation adjustments and other.

NA: Data is not applicable or available for the period presented.

NM: Not meaningful

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

Principal Transactions: Represents Trading revenue (which includes physical commodities carried at the lower of cost or market), primarily in the Investment Bank, plus Private equity gains (losses), primarily in the Private Equity business of 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’S REVENUES COMPRISE 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 for IB’s credit portfolio. Credit portfolio revenue also includes gains or losses on securities received as part of a loan restructuring, 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. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

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 COMPRISE THE FOLLOWING:

1. Production revenue 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. Net mortgage servicing revenue

      a) Servicing revenue represents all gross income earned from servicing third-party mortgage loans including stated service fees, 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 include interest 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 include 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 COMPRISE 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 (including negotiated transactions) - Correspondents are banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm. Correspondent negotiated transactions occur when mid- to large-sized mortgage lenders, banks and bank-owned mortgage companies sell servicing to the Firm on an as-originated basis. 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, 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 COMPRISE 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 purchased, and repurchase agreements).

2. IB revenues, gross - Represents 100% of the revenue related to investment banking products for which there is a sharing agreement between Commercial Banking and the Investment Bank and for the investment banking products that are sold through Commercial Banking.

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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 purchased, and repurchase agreements).

Asset & Wealth Management

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

Alternative Assets: The following types of assets constitute alternative investments - hedge funds, currency, real estate and private equity.

AWM’s CLIENT SEGMENTS COMPRISE 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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