8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

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

Date of Report (date of earliest event reported): April 18, 2007

JPMORGAN CHASE & CO.

(Exact name of registrant as specified in its charter)

Delaware (State or Other Jurisdiction of Incorporation)	1-5805 (Commission File Number)	13-2624428 (IRS Employer Identification No.)
270 Park Avenue, New York, NY (Address of Principal Executive Offices)		10017 (Zip Code)

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

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

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

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition
	Item 9.01 Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EX-12.1: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
EX-99.1: EARNINGS RELEASE - FIRST QUARTER 2007 RESULTS
EX-99.2: EARNINGS RELEASE FINANCIAL SUPPLEMENT - FIRST QUARTER 2007

Item 2.02 Results of Operations and Financial Condition

On April 18, 2007, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2007 first quarter net income of $4.8 billion, or $1.34 per share, compared with net income of $3.1 billion, or $0.86 per share, for the first quarter of 2006. The Firm’s adoption of SFAS 157 (“Fair Value Measurements”) resulted in a benefit to the current quarter’s earnings of $391 million (after-tax), or $0.11 per share. The Firm also announced a $0.04, or 12%, increase to the quarterly common stock dividend payable on July 31, 2007 to shareholders of record at close of business on July 6, 2007, and the authorization of a $10 billion common stock repurchase program. A copy of the 2007 first quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit Number	Description of Exhibit
12.1	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges
99.1	JPMorgan Chase & Co. Earnings Release — First Quarter 2007 Results
99.2	JPMorgan Chase & Co. Earnings Release Financial Supplement — First Quarter 2007

This Form 8-K (including exhibits) 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 2006 Annual Report on Form 10-K for the year ended December 31, 2006, filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

2

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/ Louis Rauchenberger
		Louis Rauchenberger
Managing Director and Controller
[Principal Accounting Officer]

Dated: April 18, 2007

3

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
12.1	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges
99.1	JPMorgan Chase & Co. Earnings Release — First Quarter 2007 Results
99.2	JPMorgan Chase & Co. Earnings Release Financial Supplement — First Quarter 2007

4

EX-12.1

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges

Three months ended March 31, (in millions, except ratios)	2007
Excluding Interest on Deposits
Income from continuing operations before income taxes	$	7,332
Fixed charges:
Interest expense		5,523
One-third of rents, net of income from subleases (a)		99
Total fixed charges		5,622
Less: Equity in undistributed income of affiliates		(33	)
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest	$	12,921
Fixed charges, as above	$	5,622
Ratio of earnings to fixed charges		2.30
Including Interest on Deposits
Fixed charges, as above	$	5,622
Add: Interest on deposits		4,995
Total fixed charges and interest on deposits	$	10,617
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest, as above	$	12,921
Add: Interest on deposits		4,995
Total income from continuing operations before income taxes, fixed charges and interest on deposits	$	17,916
Ratio of earnings to fixed charges		1.69

(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 RECORD NET INCOME OF $4.8 BILLION, OR
$1.34 PER SHARE, ON RECORD REVENUE OF $19.0 BILLION

QUARTERLY COMMON STOCK DIVIDEND INCREASED BY 12% TO
$0.38 PER SHARE

COMMON STOCK REPURCHASE PROGRAM OF $10 BILLION AUTHORIZED

• Investment Bank generates record earnings of $1.5 billion on record revenue of $6.3 billion; record fixed income and equity markets results and investment banking fees

• Asset Management and Commercial Banking produce record earnings; Private Equity posts very strong results

• Retail Financial Services successfully completed the systems conversion and rebranding for 339 former Bank of New York branches; branch sales volumes continue to grow

New York, April 18, 2007 — JPMorgan Chase & Co. (NYSE: JPM) today reported 2007 first-quarter net income of $4.8 billion, or $1.34 per share, compared with net income of $3.1 billion, or $0.86 per share, for the first quarter of 2006. Income from continuing operations was $4.8 billion, or $1.34 per share, in the current quarter compared with $3.0 billion, or $0.85 per share, for the first quarter of 2006. The firm’s adoption of SFAS 157 (“Fair Value Measurements”) resulted in a benefit to the current quarter’s earnings of $391 million¹ (after-tax), or $0.11 per share.

Jamie Dimon, Chairman and Chief Executive Officer, commenting on the quarter said, “We are very pleased with our record results this quarter, which reflected the strength of our broad and diversified franchise. Across all of our businesses, we experienced continued growth in client volumes, including new accounts, loans, deposits and new business. The Investment Bank, Asset Management and Commercial Banking each delivered record earnings. Private equity gains were also very strong. The firm’s strong results include some benefit from the generally favorable credit environment, which we do not expect to continue indefinitely.” Commenting on The Bank of New York branch integration, Dimon noted, “Through the remarkable efforts of thousands of dedicated employees, we now have an integrated and much stronger retail banking business in the New York Tri-state area. Across the U.S. our customers now have available to them the convenience of more than 3,000 branches and 8,500 ATMs.”

The firm also announced the following actions taken by its Board of Directors:

• Declared a quarterly dividend of $0.38 per share on the corporation’s common stock, an increase of $0.04 per share, or 12%. The dividend is payable on July 31, 2007, to stockholders of record at the close of business on July 6, 2007.

• Authorized a new $10 billion common stock repurchase program, replacing the prior $8 billion program that had approximately $850 million of remaining authorization.

Remarking on the dividend and stock repurchase announcements, Dimon said, “Given the substantial improvement in the level and quality of earnings over the past several years, we are pleased the Board of Directors announced the first dividend increase in six years and a new $10 billion stock repurchase program.”

¹ Comprising $103 million related to adjustments to the valuation of liabilities to incorporate the impact of the firm’s credit quality and $288 million related to the valuation of nonpublic private equity investments.

Investor Contact: Julia Bates (212) 270-7318 Media Contact: Joe Evangelisti (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 is excluded; and for each line of business and the firm as a whole, net revenue is shown on a tax-equivalent basis. For more information about managed basis, as well as other non-GAAP financial measures used by management to evaluate the performance of each line of business, see Notes 1 and 2 (page 16).

The following discussion compares the first quarter of 2007 with the first quarter of 2006 unless otherwise noted.

INVESTMENT BANK (IB)

Results for IB							4Q06						1Q06
($ millions)	1Q07		4Q06		1Q06			$ O/(U)		O/(U) %				$ O/(U)			O/(U) %
Net Revenue(a) (b)	$	6,254	$	4,860	$	4,828		$	1,394		29	%		$	1,426			30	%
Provision for Credit Losses		63		63		183			—		—				(120	)		(66	)
Noninterest Expense(b)		3,831		3,205		3,320			626		20				511			15
Net Income	$	1,540	$	1,009	$	850		$	531		53	%		$	690			81	%

(a)

As a result of the adoption on January 1, 2007, of SFAS 157 (“Fair Value Measurements”), the IB recognized a benefit of $166 million in net revenue (primarily in Credit Portfolio, but with smaller impacts to Equity Markets and Fixed Income Markets) relating to the incorporation, commencing in the current quarter, of an adjustment to the valuation of the firm’s derivative liabilities and other liabilities measured at fair value that reflects the credit quality of the firm.

(b)

Certain transaction costs, previously reported within net revenue, have been reclassified to noninterest expense. Net revenue and noninterest expense have been reclassified for all periods presented.

Discussion of Results:
Net income was a record $1.5 billion, up by $690 million, or 81%, compared with the prior year and up by $531 million, or 53%, compared with the prior quarter. Earnings growth reflected record revenue and a lower provision for credit losses, partially offset by higher noninterest expense.

Net revenue was a record $6.3 billion, up 30% from the prior year, driven by record investment banking fees and record markets results. Investment banking fees of $1.7 billion were up 48% from the prior year driven by record debt and record equity underwriting as well as strong advisory fees. Debt underwriting fees of $864 million were up 52% driven by record bond underwriting fees and strong loan syndication fees, which benefited from both leveraged and high grade issuance. Advisory fees of $472 million were up 21%, with particular strength in the Americas. Equity underwriting fees of $393 million were up 85%, reflecting strength in common stock and convertible offerings in the Americas and Europe. Record Fixed Income Markets revenue of $2.6 billion was up 25% from the prior year, benefiting from improved results in commodities (compared with a weak prior-year quarter) as well as strength in credit and rate markets, partially offset by lower results in currencies. Record Equity Markets revenue of $1.5 billion increased 22%, benefiting from particularly strong performance in Europe as well as strong derivatives performance across regions. Credit Portfolio revenue of $394 million was up 23%, due to the incorporation of an adjustment to the valuation of the firm’s derivative liabilities measured at fair value that reflects the credit quality of the firm, in conjunction with SFAS 157 (“Fair Value Measurements”), and higher trading revenue from hedging activities, partially offset by lower gains from loan workouts.

Provision for credit losses was $63 million compared with $183 million in the prior year. The prior-year provision reflected growth in the loan portfolio.

2

JPMorgan Chase & Co.
News Release

Noninterest expense was $3.8 billion, up by $511 million, or 15%, from the prior year. This increase was due to higher compensation expense, primarily performance-based, partially offset by the absence of expense from the adoption of SFAS 123R in the prior-year quarter.

Highlights Include:

• Ranked #1 in both Global and U.S. Equity and Equity-Related for the first time ever; #1 in Global Syndicated Loans; #2 in Global Announced M&A; #2 in Global Debt, Equity and Equity-Related; and #2 in Global Long-Term Debt based upon volume, according to Thomson Financial for year-to-date March 31, 2007.

• Total average loans of $72.7 billion were flat from the prior year and down by $12.0 billion, or 14%, from the prior quarter.

• Average loans retained of $59.9 billion were up by $6.2 billion, or 12%, from the prior year and down by $1.1 billion, or 2%, from the prior quarter.

• Average loans held-for-sale of $12.8 billion were down by $6.4 billion, or 33%, from the prior year and down by $11.0 billion, or 46%, from the prior quarter.

• Approximately $12.0 billion of held-for-sale loans were reclassified to trading assets as a result of the adoption of SFAS 159 (“Fair Value Option”).

• Allowance for loan losses to average loans was 1.76% for the current quarter, down from 2.08% in the prior year; nonperforming assets were $128 million, down 74% from the prior year and down 52% from the prior quarter.

• Return on equity was 30% on $21 billion of allocated capital.

3

JPMorgan Chase & Co.
News Release

RETAIL FINANCIAL SERVICES (RFS)

Results for RFS							4Q06						1Q06
($ millions)	1Q07		4Q06		1Q06			$ O/(U)		O/(U) %				$ O/(U)			O/(U) %
Net Revenue	$	4,106	$	3,728	$	3,763		$	378		10	%		$	343			9	%
Provision for Credit Losses		292		262		85			30		11				207			244
Noninterest Expense		2,407		2,291		2,238			116		5				169			8
Net Income	$	859	$	718	$	881		$	141		20	%			($22	)		(2	%)

Discussion of Results:
Net income of $859 million was down by $22 million, or 2%, from the prior year.

Net revenue of $4.1 billion was up by $343 million, or 9%, from the prior year. Net interest income of $2.6 billion was up 2% due to The Bank of New York transaction, higher home equity loans and deposit balances in Regional Banking, and wider loan spreads in Auto Finance. These benefits were offset partially by lower prime and subprime mortgage balances, the sale of the insurance business, lower auto loan and lease balances, and narrower spreads on deposits. Noninterest revenue of $1.5 billion was up by $288 million, or 24%. Results benefited from higher gain-on-sale income and the reclassification of certain loan origination costs to expense (previously netted against revenue) due to the adoption of SFAS 159 (“Fair Value Option”) in Mortgage Banking; increases in deposit—related fee revenue; The Bank of New York transaction; and higher automobile operating lease revenue. These benefits were offset partially by the sale of the insurance business, a charge resulting from accelerated surrenders of customer annuity contracts, and the absence of a prior-year loss related to auto loans transferred to held-for-sale.

The provision for credit losses of $292 million was up by $207 million from the prior year. This increase was due to higher losses in the subprime mortgage portfolio and, to a lesser extent, increased provision in the home equity portfolio related to weaker housing prices. These increases were offset partially by the reversal of a portion of the reserves related to Hurricane Katrina. The firm’s exposure to subprime mortgages is deemed manageable, with current quarter outstandings of $9.0 billion and net charge-offs of $20 million (0.92% net charge-off rate), compared with $15.1 billion of loans and net charge-offs of $9 million (0.26% net charge-off rate) in the prior-year quarter. Given the firm’s current expectations for continued poor loss experience in subprime mortgages, the provision for credit losses was increased and standards for underwriting were tightened this quarter. In addition, since weaker home prices are expected to continue to affect losses in the home equity portfolio, underwriting standards were tightened and the allowance for this portfolio was increased during the quarter.

Noninterest expense of $2.4 billion was up by $169 million, or 8%, primarily due to The Bank of New York transaction, the reclassification of certain loan origination costs due to the adoption of SFAS 159, investments in the retail distribution network and higher depreciation expense on owned automobiles subject to operating leases. These increases were offset partially by the sale of the insurance business.

Regional Banking net income of $690 million was down by $67 million, or 9%, from the prior year. Net revenue of $3.1 billion was up by $52 million, or 2%. Results benefited from The Bank of New York transaction; growth in home equity loans and deposits; and increases in deposit-related fees. These revenue benefits were offset partially by the sale of the insurance business, a continued shift to narrower-spread deposit products, and a charge resulting from accelerated surrenders

4

JPMorgan Chase & Co.
News Release

of customer annuity contracts. The provision for credit losses was $233 million, up by $167 million, primarily related to higher losses in the subprime mortgage portfolio and to a lesser extent increased provision in the home equity portfolio related to weaker housing prices. These increases were offset partially by the reversal of a portion of the reserves related to Hurricane Katrina. Noninterest expense of $1.7 billion was flat, as increases due to The Bank of New York transaction and investments in the retail distribution network were offset by the sale of the insurance business.

Highlights Include:

• Systems conversion and rebranding successfully completed for the 339 branches acquired from The Bank of New York, adding 1.2 million New York Tri-state deposit accounts to the Chase platform.

• Checking accounts of 10.1 million were up by 1.2 million, or 13%, from the prior year (including approximately 615,000 accounts acquired from The Bank of New York on October 1, 2006), and up by 141,000, or 1%, from the prior quarter.

• Average total deposits increased to $206.5 billion, up by $21.8 billion, or 12%, from the prior year (including approximately $11.5 billion of deposits acquired from The Bank of New York on October 1, 2006), and up 3% from the prior quarter.

• Number of branches increased to 3,071, up by 433 from the prior year (including 339 acquired from The Bank of New York), and down by 8 from the prior quarter.

• Branch sales of credit cards increased 17% from the prior year.

• Branch sales of investment products increased 35% from the prior year and 17% from the prior quarter.

• Business Banking loan originations of $1.7 billion were up 30% from the prior year and 8% from the prior quarter.

• Overhead ratio (excluding amortization of core deposit intangibles) decreased to 52% from 54% in the prior year.

• Average home equity loans of $86.3 billion were up by $12.2 billion from the prior year.

• Prime mortgage loans of $19.4 billion were transferred to Treasury within the Corporate segment. Although the loans, together with the responsibility for the investment management of the portfolio, were transferred to Treasury, the transfer has no impact on the financial results of Regional Banking.

Mortgage Banking net income was $84 million compared with $39 million in the prior year. Net revenue of $604 million was up by $216 million, or 56%, from the prior year. Revenue comprises production revenue and net mortgage servicing revenue. Production revenue was $400 million, up by $181 million, reflecting higher gain-on-sale income and the reclassification of certain loan origination costs to expense (previously netted against revenue) due to the adoption of SFAS 159. Net mortgage servicing revenue, which includes loan servicing revenue, MSR risk management results and other changes in fair value, was $204 million compared with $169 million in the prior year. Loan servicing revenue of $601 million increased by $41 million on a 13% increase in third-party loans serviced. MSR risk management revenue of negative $19 million improved by $23 million from the prior year. Other changes in fair value of the MSR asset, representing run-off of

5

JPMorgan Chase & Co.
News Release

the asset against the realization of servicing cash flows, were negative $378 million. Noninterest expense was $468 million, up by $144 million, or 44%, reflecting the reclassification of certain loan origination costs due to the adoption of SFAS 159 and higher compensation expense reflecting higher loan originations and a greater number of loan officers.

Highlights Include:

• Mortgage loan originations of $34.1 billion were up 21% from the prior year and 10% from the prior quarter.

• Total third-party mortgage loans serviced were $546.1 billion, an increase of $62.0 billion, or 13%, from the prior year.

Auto Finance net income of $85 million was flat compared with the prior year. Net revenue of $410 million was up by $75 million, or 22%, reflecting the absence of a prior-year $50 million pretax loss related to auto loans transferred 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 was $59 million, an increase of $40 million from the prior year, primarily reflecting a reduction of the allowance for credit losses in the prior year. Noninterest expense of $210 million increased by $34 million, or 19%, driven by increased depreciation expense on owned automobiles subject to operating leases.

Highlights Include:

• Average loan receivables of $39.4 billion declined 4% from the prior year and increased 2% from the prior quarter.

• Average lease-related assets of $3.1 billion declined 38% from the prior year and 9% from the prior quarter.

• The net charge-off ratio increased to 0.59% from 0.46% in the prior year.

CARD SERVICES (CS)

Results for CS							4Q06							1Q06
($ millions)	1Q07		4Q06		1Q06			$ O/(U)			O/(U) %				$ O/(U)			O/(U) %
Net Revenue	$	3,680	$	3,750	$	3,685			($70	)		(2	)%			($5	)		—	%
Provision for Credit Losses		1,229		1,281		1,016			(52	)		(4	)			213			21
Noninterest Expense		1,241		1,341		1,243			(100	)		(7	)			(2	)		—
Net Income	$	765	$	719	$	901		$	46			6	%			($136	)		(15	)%

Discussion of Results:
Net income of $765 million was down by $136 million, or 15%, from the prior year. Prior-year results benefited from significantly lower net charge-offs following the change in bankruptcy legislation in the fourth quarter of 2005.

End-of-period managed loans of $146.6 billion increased by $12.3 billion, or 9%, from the prior year and decreased by $6.3 billion, or 4%, from the prior quarter, reflecting seasonally higher payment activity. Average managed loans of $149.4 billion increased by $11.4 billion, or 8%, from the prior year and by $2.0 billion, or 1%, from the prior quarter. The current quarter included $2.0 billion of average and $1.9 billion of end-of-period managed loans acquired with the Kohl’s private-label portfolio in the second quarter of 2006.

6

JPMorgan Chase & Co.
News Release

Net managed revenue was $3.7 billion, flat as compared with the prior year. Net interest income of $3.0 billion was down by $24 million, or 1%, from the prior year. The decrease was driven by higher charge-offs, which resulted in increased revenue reversals in the current quarter and higher cost of funds on balance growth in promotional, introductory and transactor loan balances. These declines were offset partially by higher average managed loan balances and increased fees. Compared with the prior quarter, net interest income was up by $47 million, or 2%, driven by higher average managed loan balances, including growth in nonpromotional balances. Noninterest revenue of $691 million was up by $19 million, or 3%, from the prior year. Interchange income increased, benefiting from 9% higher charge volume, but was more than offset by higher volume-driven payments to partners and increased rewards expense (both of which are netted against interchange income). An additional factor impacting noninterest revenue was an increase in fee-based product revenue. Compared with the prior quarter, noninterest revenue was down by $117 million, or 14%, driven by seasonally lower net interchange income.

The managed provision for credit losses was $1.2 billion, up by $213 million, or 21%, from the prior year. The prior-year quarter benefited from lower net charge-offs, which reflected a reduction in bankruptcy-related losses following the change in bankruptcy legislation in the fourth quarter of 2005. The current quarter benefited from an $85 million reduction in the allowance for credit losses, primarily related to strength in the underlying credit quality of the loan portfolio. Compared with the prior quarter, the managed provision for credit losses was down by $52 million, or 4%, which reflected an $85 million reduction in the allowance for credit losses, partially offset by a higher level of contractual charge-offs. The managed net charge-off rate for the quarter was 3.57%, up from 2.99% in the prior year and 3.45% in the prior quarter. The 30-day managed delinquency rate was 3.07%, down from 3.10% in the prior year and 3.13% in the prior quarter.

Noninterest expense of $1.2 billion was flat compared with the prior year, primarily due to lower marketing expense and lower fraud-related losses, offset by recent acquisitions and higher expense reflecting increased customer activity.

Highlights Include:

• Return on Equity was 22%, down from 26% in the prior year, but up from 20% in the prior quarter.

• Pretax income to average managed loans (ROO) was 3.28%, down from 4.19% in the prior year, but up from 3.04% in the prior quarter.

• Net interest income as a percentage of average managed loans was 8.11%, down from 8.85% in the prior year, but up from 7.92% in the prior quarter.

• Net accounts opened during the quarter were 3.4 million.

• Charge volume of $81.3 billion increased by $7.0 billion, or 9%, from the prior year.

• Merchant processing volume of $163.6 billion increased by $15.9 billion, or 11%, and total transactions of 4.5 billion increased by 335 million, or 8%, from the prior year.

• Several new partner relationships were signed, including Amtrak; and several partner relationships were renewed, including Buy.com and Speedway SuperAmerica.

7

JPMorgan Chase & Co.
News Release

COMMERCIAL BANKING (CB)

Results for CB							4Q06							1Q06
($ millions)	1Q07		4Q06		1Q06			$ O/(U)			O/(U) %				$ O/(U)			O/(U) %
Net Revenue	$	1,003	$	1,018	$	900			($15	)		(1	%)		$	103			11	%
Provision for Credit Losses		17		111		7			(94	)		(85	)			10			143
Noninterest Expense		485		485		498			—			—				(13	)		(3	)
Net Income	$	304	$	256	$	240		$	48			19	%		$	64			27	%

Discussion of Results:
Net income was a record $304 million, up by $64 million, or 27%, from the prior year, driven by higher net revenue.

Net revenue was $1.0 billion, up by $103 million, or 11%, from the prior year. Net interest income of $668 million was flat. The benefit of higher liability balances and loan volumes, which reflected organic growth and The Bank of New York transaction, were offset largely by the continued shift to narrower-spread liability products and loan-spread compression. Noninterest revenue of $335 million was up by $102 million, or 44%, primarily due to higher investment banking revenue as well as gains related to the sale of securities acquired in the satisfaction of debt.

On a segment basis, Middle Market Banking revenue of $661 million increased by $38 million, or 6%, from the prior year due to growth across all product areas and The Bank of New York transaction. Mid-Corporate Banking revenue of $212 million increased by $75 million, or 55%, reflecting higher investment banking revenue and a gain on the sale of securities acquired in the satisfaction of debt. Real Estate revenue of $102 million decreased by $3 million, or 3%.

Provision for credit losses was $17 million compared with $7 million in the prior year.

Noninterest expense was $485 million, down by $13 million, or 3%, from the prior year due to the absence of prior-year expense from the adoption of SFAS 123R primarily offset by expense related to The Bank of New York transaction.

Highlights Include:

• Overhead ratio was 48%.

• Gross investment banking revenue (which is shared with the Investment Bank) was $231 million, up by $117 million, or 103%, from the prior year and down $15 million, or 6%, from the prior quarter.

• Average loan and lease balances of $57.7 billion were up by $6.8 billion, or 13%, from the prior year, including approximately $2.3 billion of loans acquired from The Bank of New York on October 1, 2006. Compared with the prior quarter, average loan and lease balances were flat.

• Average liability balances of $81.8 billion were up by $11.0 billion, or 16%, from the prior year, including approximately $1.2 billion of liability balances acquired from The Bank of New York on October 1, 2006. Compared with the prior quarter, average liability balances were up by $2.7 billion, or 3%.

• Nonperforming loans of $141 million decreased by $61 million, or 30%, from the prior year, and increased by $20 million, or 17%, from the prior quarter. The allowance for loan losses to average loans was 2.68% compared with 2.80% in the prior year and 2.67% in the prior quarter.

8

JPMorgan Chase & Co.
News Release

TREASURY & SECURITIES SERVICES (TSS)

Results for TSS									4Q06							1Q06
($ millions)	1Q07		4Q06			1Q06				$ O/(U)			O/(U) %				$ O/(U)		O/(U) %
Net Revenue	$	1,526	$	1,537		$	1,485			$	(11	)		(1	)%		$	41		3	%
Provision for Credit Losses		6		(2	)		(4	)			8		NM					10	NM
Noninterest Expense		1,075		1,104			1,048				(29	)		(3	)			27		3
Net Income	$	263	$	256		$	262			$	7			3	%		$	1		—	%

Discussion of Results:
Net income was $263 million, flat compared with the prior year. Earnings benefited from increased revenue and the absence of prior-year expense from the adoption of SFAS 123R, but these items were offset by higher compensation expense and investment in new product platforms.

Net revenue was $1.5 billion, up by $41 million, or 3%, from the prior year. Worldwide Securities Services net revenue of $837 million was up by $45 million, or 6%, driven by increased product usage by existing clients and new business growth, as well as market appreciation. These benefits were partially offset by lower foreign exchange revenue as a result of narrower market spreads. Treasury Services net revenue of $689 million was down by $4 million, or 1%, driven by a continued shift to narrower-spread liability products and price compression across all products, primarily offset by an increase in average liability balances from new and existing clients. TSS firmwide net revenue, which includes Treasury Services net revenue recorded in other lines of business, grew to $2.1 billion, up by $59 million, or 3%. Treasury Services firmwide net revenue grew to $1.3 billion, up by $14 million, or 1%.

Provision for credit losses was $6 million compared with a benefit of $4 million in the prior year.

Noninterest expense was $1.1 billion, up by $27 million, or 3%. The increase was due largely to higher compensation expense related to growth in headcount supporting increased client volume and investment in new product platforms, partially offset by the absence of prior-year expense from the adoption of SFAS 123R.

Highlights Include:

• Pretax margin⁽²⁾ was 27%, down from 28% in the prior year and up from 26% in the prior quarter.

• Average liability balances were $211 billion, an increase of 18%.

• Assets under custody increased to $14.7 trillion, up 31%.

• U.S. dollar ACH transactions originated increased 16%.

• New client relationships included:

• Global payments and core cash management solution for Gap, Inc.;

• Debit cards for unemployment insurance benefits for the Rhode Island Department of Labor and Training;

• Asset servicing for Wellcome Trust, one of the largest charitable foundations in the world; and

• Global Depositary Receipt (GDR) for Uttam Galva Steels Ltd., the first GDR listing on the Singapore Exchange.

• Significant transactions included:

• Completed the acquisition of FisaCure, Inc., a leading provider of data capture technology solutions to healthcare providers; and

9

JPMorgan Chase & Co.
News Release

• Announced the acquisition of the U.S. transfer agency services business of Cincinnati-based Integrated Investment Services (IIS).

ASSET MANAGEMENT (AM)

Results for AM									4Q06						1Q06
($ millions)	1Q07			4Q06		1Q06			$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	1,904		$	1,947	$	1,584		$	(43	)		(2	)%	$	320			20	%
Provision for Credit Losses		(9	)		14		(7	)		(23	)	NM				(2	)		(29	)
Noninterest Expense		1,235			1,284		1,098			(49	)		(4	)		137			12
Net Income	$	425		$	407	$	313		$	18			4	%	$	112			36	%

Discussion of Results:
Net income was a record $425 million, up by $112 million, or 36%, from the prior year. Improved results were due to increased revenue and the absence of prior-year expense from the adoption of SFAS 123R, partially offset by higher compensation expense. Compared with the prior quarter, net income was up 4% due to higher asset management fees, lower noncompensation expense, a benefit from the provision for credit losses and seasonal tax preparation fees, partially offset by seasonally lower performance fees.

Net revenue of $1.9 billion was up by $320 million, or 20%, from the prior year. Noninterest revenue, principally fees and commissions, of $1.7 billion was up by $321 million, or 24%. This increase was due largely to increased assets under management and higher performance fees. Net interest income of $245 million was flat from the prior year, primarily due to a shift to narrower—spread deposit products offset by higher deposit and loan balances.

Private Bank revenue grew 27%, to $560 million, due to higher asset management and placement fees and higher deposit balances, partially offset by narrower spreads on deposits. Institutional revenue grew 27%, to $551 million, due to net asset inflows and performance fees. Retail revenue grew 19%, to $527 million, primarily due to net asset inflows and market appreciation. Private Client Services revenue of $266 million was flat compared with the prior year, as increased revenue from higher assets under management was offset by narrower spreads on deposits and loans.

Assets under supervision were $1.4 trillion, up 17%, or $198 billion, from the prior year. Assets under management were $1.1 trillion, up 21%, or $180 billion, from the prior year. The increase was the result of net asset inflows in the institutional segment, primarily in liquidity and alternative products; retail flows, primarily in equity-related products; and market appreciation. Custody, brokerage, administration and deposit balances were $342 billion, up by $18 billion.

Provision for credit losses was a benefit of $9 million compared with a benefit of $7 million in the prior year.

Noninterest expense of $1.2 billion was up by $137 million, or 12%, from the prior year. The increase was due to higher compensation and increased minority interest expense related to Highbridge Capital Management, partially offset by the absence of prior-year expense from the adoption of SFAS 123R.

10

JPMorgan Chase & Co.
News Release

Highlights Include:

• Pretax margin⁽²⁾ was 36%, up from 31% in the prior year.

• Assets under Supervision were $1.4 trillion, up 17%, or $198 billion, from the prior year.

• Assets under Management were $1.1 trillion, up 21%, or $180 billion, from the prior year, including growth of 47%, or $35 billion, in alternative assets.

• Assets under Management net inflows were $19 billion for first-quarter 2007.

• Assets under Management that were ranked in the top two quartiles for investment performance over the past three years were 76%, similar to the level at the end of the prior quarter.

• Customer assets in 4 and 5 Star rated funds were 61%, up from 58% at the end of the prior quarter.

• Average loans of $25.6 billion were up by $1.2 billion, or 5%, from the prior year. Loans in the current quarter reflected the transfer of $5.3 billion of prime mortgage loans to Treasury within the Corporate segment. Although the loans, together with the responsibility for the investment management of the portfolio, were transferred to Treasury, the transfer has no impact on the financial results of Asset Management.

• Average deposits of $54.8 billion were up by $6.8 billion, or 14%, from the prior year.

11

JPMorgan Chase & Co.
News Release

CORPORATE

Results for Corporate									4Q06						1Q06
($ millions)	1Q07		4Q06			1Q06			$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue(a)	$	1,268	$	194			($404	)	$	1,074		NM			$	1,672		NM
Provision for Credit Losses		3		(2	)		—			5		NM				3		NM
Noninterest Expense		354		175			335			179			102	%		19			6	%
Income (Loss) from Continuing Operations		631		541			(420	)		90			17			1,051		NM
Income from Discontinued Operations (after-tax)(b)		—		620			54			(620	)	NM				(54	)	NM
Net Income/(Loss)	$	631	$	1,161			($366	)		($530	)		(46	)%	$	997		NM

(a)	As a result of the adoption on January 1, 2007, of SFAS 157 (“Fair Value Measurements”), Corporate recognized a benefit of $464 million in net revenue in the current quarter relating to valuation adjustments on nonpublic private equity investments.
(b)	Discontinued operations include the related balance sheet and income statement activity of selected corporate trust businesses sold to The Bank of New York on October 1, 2006. Prior to the second quarter of 2006, these corporate trust businesses were reported in Treasury & Securities Services.

Discussion of Results:^{(see note (a,b) above)}
Net income was $631 million compared with a net loss of $366 million in the prior year and net income of $1.2 billion in the prior quarter. Compared with the prior year, results benefited from higher private equity gains and improved net interest income. In comparison with the prior quarter, the lower results primarily reflected the absence of both a $622 million gain on the sale of the Corporate Trust business and the benefit of $359 million of tax audit resolutions.

Net revenue was $1.3 billion compared with negative $404 million in the prior year. The improvement was driven by the Private Equity and Treasury segments. Private equity gains were $1.3 billion compared with $237 million in the prior year, benefiting from a higher level of realized gains, a fair value adjustment on nonpublic investments of $464 million resulting from the adoption of SFAS 157 (“Fair Value Measurements”), and the reclassification of certain private equity carried interest to compensation expense. Treasury’s results benefited from a $380 million increase in net interest income due to improved net interest spread, as well as the absence of $158 million of securities losses in prior year.

Noninterest expense was $354 million, up from $335 million in the prior year, reflecting the reclassification of certain private equity carried interest to compensation expense and lower recoveries related to certain material litigation, primarily offset by business efficiencies and the absence of prior-year expense from the adoption of SFAS 123R.

Discontinued operations include the related balance sheet and income statement activity of selected corporate trust businesses sold to The Bank of New York on October 1, 2006. Prior to the second quarter of 2006, these corporate trust businesses were reported in Treasury & Securities Services. Net income from discontinued operations was $54 million in the prior year and $620 million in the prior quarter, which included a $622 million after-tax gain on sale.

Highlights Include:

• Private Equity portfolio was $6.4 billion, up from $6.3 billion in the prior year and up from $6.1 billion in the prior quarter. The portfolio represented 8.8% of stockholders’ equity less goodwill, down from 9.7% in the prior year and up from 8.6% in the prior quarter.

12

JPMorgan Chase & Co.
News Release

JPMORGAN CHASE (JPM)^(a)

Results for JPM							4Q06						1Q06
($ millions)	1Q07		4Q06		1Q06		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue(a,b,c)	$	19,741	$	17,034	$	15,841	$	2,707			16	%	$	3,900			25	%
Provision for Credit Losses(a)		1,601		1,727		1,280		(126	)		(7	)		321			25
Noninterest Expense(c)		10,628		9,885		9,780		743			8			848			9
Income from Continuing Operations		4,787		3,906		3,027		881			23			1,760			58
Income from Discontinued Operations (after-tax)(d)		—		620		54		(620	)	NM				(54	)	NM
Net Income	$	4,787	$	4,526	$	3,081	$	261			6	%	$	1,706			55	%

(a)	Presented on a managed basis; see Note 1 (Page 16) for further explanation of managed basis. Net revenue on a GAAP basis was $18,968 million, $16,193 million and $15,175 million for the first quarter of 2007, fourth quarter of 2006 and first quarter of 2006, respectively.
(b)	As a result of the adoption on January 1, 2007, of SFAS 157 (“Fair Value Measurements”), the firm recognized a benefit in the current quarter of $166 million related to the incorporation of an adjustment to the valuation of the firm’s derivative liabilities and other liabilities measured at fair value that reflects the credit quality of the firm and a benefit of $464 million related to valuation adjustments on nonpublic private equity investments.
(c)	Certain transaction costs, previously reported within net revenue, have been reclassified to noninterest expense. Net revenue and noninterest expense have been reclassified for all periods presented.
(d)	Discontinued operations include the related balance sheet and income statement activity of selected corporate trust businesses sold to The Bank of New York on October 1, 2006. Prior to the second quarter of 2006, these corporate trust businesses were reported in Treasury & Securities Services.

Discussion of Results:
Net income was $4.8 billion, up by $1.7 billion, compared with $3.1 billion in the prior year. The increase in earnings was driven by higher managed revenue, partially offset by increased noninterest expense and higher managed provision for credit losses.

Net managed revenue was $19.7 billion, up by $3.9 billion, or 25%, from the prior year. Noninterest revenue of $12.2 billion was up by $3.0 billion, or 33%, reflecting the following: very strong private equity gains (including the impact of adoption of SFAS 157 (“Fair Value Measurements”)); record markets revenue in the Investment Bank; record investment banking fees; increased asset management, administration, and commissions revenue; and improved mortgage fees (including the impact of adoption of SFAS 159 (“Fair Value Option”)). Net interest income was $7.5 billion, up by $889 million, or 13%, due to improved trading net interest income; an improvement in the Corporate segment’s net interest spread; an increase in consumer loans; the impact of The Bank of New York; and higher wholesale liabilities and consumer deposits. This increase was offset partially by a shift to narrower-spread consumer loans and deposits; and a shift to narrower-spread wholesale liabilities and loans.

The managed provision for credit losses was $1.6 billion, up by $321 million, or 25%, from the prior year. The wholesale provision for credit losses was $77 million for the quarter compared with a provision of $179 million in the prior year. The prior-year provision reflected growth in the loan portfolio. Wholesale net recoveries were $6 million in the current quarter compared with net recoveries of $20 million in the prior year, resulting in net recovery rates of 0.02% and 0.06%, respectively. The total consumer managed provision for credit losses was $1.5 billion compared with $1.1 billion in the prior year. The prior year benefited from a lower level of credit card net charge-offs, which reflected a low level of bankruptcy losses following the change in bankruptcy legislation in the fourth quarter of 2005. The increase from last year also reflects higher charge-offs and additions to the allowance for credit losses related to the subprime mortgage and home equity loan portfolios. The firm had total nonperforming assets

13

JPMorgan Chase & Co.
News Release

of $2.4 billion at March 31, 2007, up by $73 million, or 3%, from the prior-year level of $2.3 billion.

Noninterest expense was $10.6 billion, up by $848 million, or 9%, from the prior year. Expense increased due to higher compensation expense, primarily incentive-based. In addition, expense growth was also driven by acquisitions and investments, as well as lower insurance recoveries related to certain material litigation. The increase in expense was offset partially by the absence of a prior-year expense from the adoption of SFAS 123R, as well as business divestitures and expense efficiencies.

Highlights Include:

• Tier 1 capital ratio was 8.5% at March 31, 2007 (estimated), 8.7% at December 31, 2006, and 8.5% at March 31, 2006.

• During the quarter, $4.0 billion of common stock was repurchased, reflecting 80.9 million shares purchased at an average price of $49.45 per share.

• Headcount of 176,314 increased by 1,954 since December 31, 2006.

14

JPMorgan Chase & Co.
News Release

Other financial information

•	Common stock dividend: The Board of Directors has declared a quarterly dividend of $0.38 per share on the outstanding shares of the corporation’s common stock, an increase of $0.04 per share, or 12%. The dividend is payable on July 31, 2007, to stockholders of record at the close of business on July 6, 2007. On April 30, 2007, the firm will pay its previously declared quarterly common stock dividend of $0.34 per share to shareholders of record as of April 5, 2007.
•	Common Stock Repurchase Program: The Board of Directors has authorized the repurchase of up to $10 billion of the firm’s common shares. The new authorization commences April 19, 2007, and replaces the firm’s previous $8 billion repurchase program authorized on March 21, 2006. As of the close of business on April 17, 2007, there was approximately $850 million remaining on the March 2006 authorization. The new 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. The new repurchase program does not include specific price targets or timetables; may be executed through open market purchases, privately negotiated transactions or utilizing Rule 10b5-1 programs; and may be suspended at any time.
•	Merger savings and cost related: For the quarter ended March 31, 2007, approximately $720 million of merger savings have been realized, which is an annualized rate of $2.9 billion, in line with management’s target for the year. Management estimates that annualized savings will be approximately $3.0 billion by the end of 2007. Merger costs of $62 million were expensed during the first quarter of 2007, bringing the total amount incurred to $3.5 billion (including capitalized costs) since the beginning of 2004. Management currently expects total merger costs (including costs associated with The Bank of New York transaction) will be approximately $3.8 billion. The remaining merger costs are expected to be incurred by the end of 2007.
•	Accounting Developments:
	FASB Statement No. 157 (“Fair Value Measurements”): JPMorgan Chase chose early adoption for Statement of Financial Accounting Standards No. 157, Fair Value Measurements, effective January 1, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value, and expands disclosures about assets and liabilities measured at fair value. SFAS 157 nullifies the guidance in EITF 02-3, which required deferral of profit at inception of a derivative transaction in the absence of observable data supporting the valuation technique. The standard also eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the firm’s own credit quality when valuing liabilities. The adoption primarily affected the Investment Bank and Private Equity business within Corporate.
	FASB Statement No. 159 (“Fair Value Option”): JPMorgan Chase early adopted Statement of Financial Accounting Standards No. 159, Fair Value Option, effective January 1, 2007. SFAS 159 provides the option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments and written loan commitments. Under SFAS 159, fair value is used for both the initial and subsequent measurement of the designated assets, liabilities and commitments, with the changes in value recognized in earnings. The primary elections related to structured notes and loans warehoused in the Investment Bank, and to prime mortgage loans held in warehouse in Retail Financial Services.
	FASB Interpretation No. 48 (“Accounting for Uncertainty in Income Taxes”): JPMorgan Chase chose early adoption for Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes, effective January 1, 2007. FIN 48 addresses the recognition and measurement of tax positions taken or expected to be taken, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. The firm applied FIN 48 to all of its income tax positions as of January 1, 2007, under the transition provision of the Interpretation.

15

JPMorgan Chase & Co.
News Release

The table below summarizes the impact to 2007 first-quarter net income and equity as a result of the implementation of these accounting standards.

1Q07 Accounting Items ($ millions)	Implementation impacts
	Pretax		After-tax		After-tax
	Income		Income		Equity
SFAS 157 — Fair value measurements
•   EITF 02-3 nullification					$	287
•   Nonperformance risk (IB)	$	166	$	103
•   Nonpublic private equity (Corporate)	$	464	$	288
SFAS 159 — Fair value option					$	199
FIN 48 — Accounting for uncertainty in income taxes					$	436
Total implementation impact	$	630	$	391	$	922

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. 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 incremental expense incurred during 2006 was noncash charges and represented 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. The presentation of Card Services results on a managed basis assumes that credit card loans that have been securitized and sold in accordance with SFAS 140 still remain on the balance sheet and that the earnings on the securitized loans are classified in the same manner as the earnings on retained loans recorded on the balance sheet. JPMorgan Chase uses the concept of managed basis to evaluate the credit performance and overall financial performance of the entire managed credit card portfolio. Operations are funded and decisions are made about allocating resources, such as employees and capital, based upon managed financial information. In addition, the same underwriting standards and ongoing risk monitoring are used for both loans on the balance sheet and securitized loans. Although securitizations result in the sale of credit card receivables to a trust, JPMorgan Chase retains the ongoing customer relationships, as the customers may continue to use their credit cards; accordingly, the customer’s credit performance will affect both the securitized loans and the loans retained on the balance sheet. JPMorgan Chase believes managed basis information is useful to investors, enabling them to understand both the credit risks associated with the loans reported on the balance sheet and the firm’s retained interests in securitized loans. 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 is 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 (first quarter of 2007) for a reconciliation of JPMorgan Chase’s income statement from a reported to managed basis.

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

16

JPMorgan Chase & Co.
News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.4 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 management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com.

JPMorgan Chase will host a conference call today at 9:00 a.m. (Eastern Time) to review first-quarter financial results. Investors can call (800) 818-5264 (domestic) / (913) 981-4910 (international), or listen via live audio webcast. The live audio webcast and presentation slides will be available on www.jpmorganchase.com under Investor Relations, Investor Presentations. A replay of the conference call will be available beginning at 1:00 p.m. (Eastern Time) on April 18, 2007, through midnight, Monday, April 30, 2007 (Eastern Time), at (888) 203-1112 (domestic) or (719) 457-0820 (international) with the access code 3193649. The replay also will be available on www.jpmorganchase.com. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available on the JPMorgan Chase Internet site www.jpmorganchase.com.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase’s results to differ materially from those described in the forward-looking statements can be found in the firm’s Annual Report on Form 10-K for the year ended December 31, 2006, filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

17

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

	QUARTERLY TRENDS
										1Q07 Change
	1Q07			4Q06			1Q06			4Q06			1Q06
SELECTED INCOME STATEMENT DATA
Total Net Revenue (a)	$	18,968		$	16,193		$	15,175			17	%		25	%
Provision for Credit Losses		1,008			1,134			831			(11	)		21
Total Noninterest Expense		10,628			9,885			9,780			8			9
Income from Continuing Operations (after-tax)		4,787			3,906			3,027			23			58
Income from Discontinued Operations (after-tax) (b)		-			620			54		NM			NM
Net Income		4,787			4,526			3,081			6			55
PER COMMON SHARE:
Basic Earnings
Income from Continuing Operations	$	1.38		$	1.13		$	0.87			22			59
Net Income		1.38			1.31			0.89			5			55
Diluted Earnings
Income from Continuing Operations	$	1.34		$	1.09		$	0.85			23			58
Net Income		1.34			1.26			0.86			6			56
Cash Dividends Declared		0.34			0.34			0.34			-			-
Book Value		34.45			33.45			31.19			3			10
Closing Share Price		48.38			48.30			41.64			-			16
Market Capitalization		165,280			167,199			144,614			(1	)		14
COMMON SHARES OUTSTANDING:
Weighted-Average Diluted Shares Outstanding		3,559.5			3,578.6			3,570.8			(1	)		-
Common Shares Outstanding at Period-end		3,416.3			3,461.7			3,473.0			(1	)		(2	)
FINANCIAL RATIOS : (c)
Income from Continuing Operations:
Return on Common Equity (“ROE”)		17	%		14	%		11	%
Return on Equity-Goodwill (“ROE-GW”) (d)		27			22			19
Return on Assets (“ROA”) (e)		1.41			1.14			0.98
Net Income:
ROE		17			16			12
ROE-GW (d)		27			26			20
ROA (f)		1.41			1.32			1.00
CAPITAL RATIOS:
Tier 1 Capital Ratio		8.5	(h)		8.7			8.5
Total Capital Ratio		11.8	(h)		12.3			12.1
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,408,918		$	1,351,520		$	1,273,282			4			11
Wholesale Loans		168,194			183,742			164,799			(8	)		2
Consumer Loans		281,571			299,385			267,282			(6	)		5
Deposits		630,184			638,788			584,465			(1	)		8
Common Stockholders’ Equity		117,704			115,790			108,337			2			9
Headcount		176,314			174,360			170,787			1			3
LINE OF BUSINESS EARNINGS
Investment Bank	$	1,540		$	1,009		$	850			53			81
Retail Financial Services		859			718			881			20			(2	)
Card Services		765			719			901			6			(15	)
Commercial Banking		304			256			240			19			27
Treasury & Securities Services		263			256			262			3			-
Asset Management		425			407			313			4			36
Corporate (g)		631			1,161			(366	)		(46	)	NM
Net Income	$	4,787		$	4,526		$	3,081			6			55

(a)	As a result of the adoption on January 1, 2007, of SFAS 157, the Firm recognized a benefit, in the current quarter, of $166 million related to the incorporation of an adjustment to the valuation of the Firm’s derivative liabilities and other liabilities measured at fair value that reflects the credit quality of the Firm and a benefit of $464 million related to valuation adjustments on nonpublic private equity investments.
(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, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses are being reported as discontinued operations for each of the periods presented.
(c)	Quarterly ratios are based upon annualized amounts.
(d)	Income from continuing operations and 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 also utilizes this measure to facilitate comparisons to competitors.
(e)	Income from continuing operations divided by Total average assets less average Assets of discontinued operations held-for-sale.
(f)	Net income divided by Total average assets.
(g)	Includes the after-tax impact of discontinued operations, recoveries related to material litigation actions, tax audit benefits and Merger costs.
(h)	Estimated.

18

EX-99.2

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2007

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 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
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
SELECTED INCOME STATEMENT DATA
Total Net Revenue (a)	$	18,968		$	16,193		$	15,545		$	15,086		$	15,175			17	%		25	%
Provision for Credit Losses		1,008			1,134			812			493			831			(11	)		21
Total Noninterest Expense		10,628			9,885			9,796			9,382			9,780			8			9
Income from Continuing Operations (after-tax)		4,787			3,906			3,232			3,484			3,027			23			58
Income from Discontinued Operations (after-tax) (b)		-			620			65			56			54		NM		NM
Net Income		4,787			4,526			3,297			3,540			3,081			6			55
PER COMMON SHARE:
Basic Earnings
Income from Continuing Operations	$	1.38		$	1.13		$	0.93		$	1.00		$	0.87			22			59
Net Income		1.38			1.31			0.95			1.02			0.89			5			55
Diluted Earnings
Income from Continuing Operations	$	1.34		$	1.09		$	0.90		$	0.98		$	0.85			23			58
Net Income		1.34			1.26			0.92			0.99			0.86			6			56
Cash Dividends Declared		0.34			0.34			0.34			0.34			0.34			-			-
Book Value		34.45			33.45			32.75			31.89			31.19			3			10
Closing Share Price		48.38			48.30			46.96			42.00			41.64			-			16
Market Capitalization		165,280			167,199			162,835			145,764			144,614			(1	)		14
COMMON SHARES OUTSTANDING:
Weighted-Average Diluted Shares Outstanding		3,559.5			3,578.6			3,574.0			3,572.2			3,570.8			(1	)		-
Common Shares Outstanding at Period-end		3,416.3			3,461.7			3,467.5			3,470.6			3,473.0			(1	)		(2	)
FINANCIAL RATIOS : (c)
Income from Continuing Operations:
Return on Common Equity (“ROE”)		17	%		14	%		11	%		13	%		11	%
Return on Equity-Goodwill (“ROE-GW”) (d)		27			22			19			21			19
Return on Assets (“ROA”) (e)		1.41			1.14			0.98			1.05			0.98
Net Income:
ROE		17			16			12			13			12
ROE-GW (d)		27			26			19			22			20
ROA (f)		1.41			1.32			1.00			1.06			1.00
CAPITAL RATIOS:
Tier 1 Capital Ratio		8.5	(h)		8.7			8.6			8.5			8.5
Total Capital Ratio		11.8	(h)		12.3			12.1			12.0			12.1
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,408,918		$	1,351,520		$	1,338,029		$	1,328,001		$	1,273,282			4			11
Wholesale Loans		168,194			183,742			179,403			178,215			164,799			(8	)		2
Consumer Loans		281,571			299,385			284,141			276,889			267,282			(6	)		5
Deposits		630,184			638,788			582,115			593,716			584,465			(1	)		8
Common Stockholders’ Equity		117,704			115,790			113,561			110,684			108,337			2			9
Headcount		176,314			174,360			171,589			172,423			170,787			1			3
LINE OF BUSINESS EARNINGS
Investment Bank	$	1,540		$	1,009		$	976		$	839		$	850			53			81
Retail Financial Services		859			718			746			868			881			20			(2	)
Card Services		765			719			711			875			901			6			(15	)
Commercial Banking		304			256			231			283			240			19			27
Treasury & Securities Services		263			256			256			316			262			3			-
Asset Management		425			407			346			343			313			4			36
Corporate (g)		631			1,161			31			16			(366	)		(46	)	NM
Net Income	$	4,787		$	4,526		$	3,297		$	3,540		$	3,081			6			55

(a)	As a result of the adoption on January 1, 2007, of SFAS 157, the Firm recognized a benefit, in the current quarter, of $166 million related to the incorporation of an adjustment to the valuation of the Firm’s derivative liabilities and other liabilities measured at fair value that reflects the credit quality of the Firm and a benefit of $464 million related to valuation adjustments on nonpublic private equity investments.
(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, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses are being reported as discontinued operations for each of the periods presented.
(c)	Quarterly ratios are based upon annualized amounts.
(d)	Income from continuing operations and 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 also utilizes this measure to facilitate comparisons to competitors.
(e)	Income from continuing operations divided by Total average assets less average Assets of discontinued operations held-for-sale.
(f)	Net income divided by Total average assets.
(g)	Includes the after-tax impact of discontinued operations, recoveries related to material litigation actions, tax audit benefits and Merger costs. See Corporate for additional details.
(h)	Estimated.

Page 2

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06				1Q06
REVENUE
Investment Banking Fees	$	1,739		$	1,565		$	1,416		$	1,370		$	1,169			11	%			49	%
Principal Transactions (a) (b)		4,471			2,591			2,737			2,741			2,709			73				65
Lending & Deposit Related Fees		895			895			867			865			841			-				6
Asset Management, Administration and Commissions (b)		3,186			3,173			2,842			2,966			2,874			-				11
Securities Gains (Losses)		2			35			40			(502	)		(116	)		(94	)		NM
Mortgage Fees and Related Income		476			75			62			213			241		NM				98
Credit Card Income		1,563			1,645			1,567			1,791			1,910			(5	)			(18	)
Other Income		518			522			635			464			554			(1	)			(6	)
Noninterest Revenue		12,850			10,501			10,166			9,908			10,182			22				26
Interest Income		16,636			16,097			15,157			14,617			13,236			3				26
Interest Expense		10,518			10,405			9,778			9,439			8,243			1				28
Net Interest Income		6,118			5,692			5,379			5,178			4,993			7				23
TOTAL NET REVENUE		18,968			16,193			15,545			15,086			15,175			17				25
Provision for Credit Losses		1,008			1,134			812			493			831			(11	)			21
NONINTEREST EXPENSE
Compensation Expense		6,234			4,985			5,390			5,268			5,548			25				12
Occupancy Expense		640			625			563			553			594			2				8
Technology, Communications and Equipment Expense		922			997			911			876			869			(8	)			6
Professional & Outside Services (b)		1,200			1,246			1,111			1,085			1,008			(4	)			19
Marketing		482			614			550			526			519			(21	)			(7	)
Other Expense (c)		735			948			877			631			816			(22	)			(10	)
Amortization of Intangibles		353			370			346			357			355			(5	)			(1	)
Merger Costs		62			100			48			86			71			(38	)			(13	)
TOTAL NONINTEREST EXPENSE		10,628			9,885			9,796			9,382			9,780			8				9
Income from Continuing Operations before Income Tax Expense		7,332			5,174			4,937			5,211			4,564			42				61
Income Tax Expense		2,545			1,268			1,705			1,727			1,537			101				66
Income from Continuing Operations (after-tax)		4,787			3,906			3,232			3,484			3,027			23				58
Income from Discontinued Operations (after-tax) (d)		-			620			65			56			54		NM			NM
NET INCOME	$	4,787		$	4,526		$	3,297		$	3,540		$	3,081			6				55
DILUTED EARNINGS PER SHARE
Income from Continuing Operations (after-tax)	$	1.34		$	1.09		$	0.90		$	0.98		$	0.85			23				58
Income from Discontinued Operations (after-tax) (d)		-			0.17			0.02			0.01			0.01		NM			NM
Net Income	$	1.34		$	1.26		$	0.92		$	0.99		$	0.86			6				56
FINANCIAL RATIOS
Income from Continuing Operations:
ROE		17	%		14	%		11	%		13	%		11	%
ROE-GW		27			22			19			21			19
ROA		1.41			1.14			0.98			1.05			0.98
Net Income:
ROE		17			16			12			13			12
ROE-GW		27			26			19			22			20
ROA		1.41			1.32			1.00			1.06			1.00
Effective Income Tax Rate (e)		35			25			35			33			34
Overhead Ratio		56			61			63			62			64
EXCLUDING IMPACT OF MERGER COSTS (f)
Income from Continuing Operations	$	4,787		$	3,906		$	3,232		$	3,484		$	3,027			23				58
Less Merger Costs (after-tax)		38			62			30			53			44			(39	)			(14	)
Income from Continuing Operations Excluding Merger Costs	$	4,825		$	3,968		$	3,262		$	3,537		$	3,071			22				57
Diluted Per Share:
Income from Continuing Operations	$	1.34		$	1.09		$	0.90		$	0.98		$	0.85			23				58
Less Merger Costs (after-tax)		0.01			0.02			0.01			0.01			0.01			(50	)			-
Income from Continuing Operations Excluding Merger Costs	$	1.35		$	1.11		$	0.91		$	0.99		$	0.86			22				57

(a)	As a result of the adoption on January 1, 2007, of SFAS 157, the Firm recognized a benefit, in the current quarter, of $166 million related to the incorporation of an adjustment to the valuation of the Firm’s derivative liabilities and other liabilities measured at fair value that reflects the credit quality of the Firm and a benefit of $464 million related to valuation adjustments on nonpublic private equity investments.
(b)	Certain transaction costs that were previously reported in Revenue have been reclassified to Noninterest expense. Revenue and Noninterest expense have been reclassified for all periods presented.
(c)	Insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material legal proceedings were $137 million, $17 million, $260 million and $98 million for the quarters ended December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively.
(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, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses are being reported as discontinued operations for each of the periods presented.
(e)	Based on Income from continuing operations.
(f)	Income from continuing operations excluding Merger costs, a non-GAAP financial measure, is used by the Firm to facilitate comparison of results against the Firm’s ongoing operations and with other companies’ U.S. GAAP financial statements.

page 3

JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS

(in millions)

																Mar 31, 2007
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2007			2006			2006			2006			2006			2006			2006
ASSETS
Cash and Due from Banks	$	31,836		$	40,412		$	36,279		$	38,390		$	36,903			(21	)%		(14	)%
Deposits with Banks		30,973			13,547			17,130			14,437			10,545			129			194
Federal Funds Sold and Securities Purchased under Resale Agreements (a)		144,306			140,524			156,194			157,438			153,755			3			(6	)
Securities Borrowed		84,800			73,688			89,222			87,377			93,280			15			(9	)
Trading Assets:
Debt and Equity Instruments		373,684			310,137			289,891			295,604			259,275			20			44
Derivative Receivables		49,647			55,601			58,265			54,075			52,750			(11	)		(6	)
Securities		97,029			91,975			86,548			78,022			67,126			5			45
Interests in Purchased Receivables (b)		-			-			-			-			29,029		NM			NM
Loans (Net of Allowance for Loan Losses) (a)		442,465			475,848			456,488			448,028			424,806			(7	)		4
Private Equity Investments		6,788			6,359			5,905			5,974			6,499			7			4
Accrued Interest and Accounts Receivable		23,663			22,891			21,178			24,418			21,657			3			9
Premises and Equipment		8,728			8,735			8,553			8,910			8,985			-			(3	)
Goodwill		45,063			45,186			43,372			43,498			43,899			-			3
Other Intangible Assets:
Mortgage Servicing Rights		7,937			7,546			7,378			8,247			7,539			5			5
Purchased Credit Card Relationships		2,758			2,935			2,982			3,138			3,243			(6	)		(15	)
All Other Intangibles		4,205			4,371			4,078			4,231			4,832			(4	)		(13	)
Other Assets (a)		55,036			51,765			53,181			54,981			49,159			6			12
Assets of discontinued operations held-for-sale (c)		-			-			1,385			1,233			-		NM			NM
TOTAL ASSETS	$	1,408,918		$	1,351,520		$	1,338,029		$	1,328,001		$	1,273,282			4			11
LIABILITIES
Deposits:
U.S. Offices:
Noninterest-Bearing	$	123,942		$	132,781		$	117,197		$	127,311		$	128,982			(7	)		(4	)
Interest-Bearing (a)		342,368			337,812			310,401			312,517			309,779			1			11
Non-U.S. Offices:
Noninterest-Bearing		8,104			7,662			3,761			6,442			6,591			6			23
Interest-Bearing (a)		155,770			160,533			150,756			147,446			139,113			(3	)		12
Total Deposits		630,184			638,788			582,115			593,716			584,465			(1	)		8
Federal Funds Purchased and Securities Sold under Repurchase Agreements (a)		218,917			162,173			188,395			175,055			151,006			35			45
Commercial Paper		25,354			18,849			18,135			18,554			15,933			35			59
Other Borrowed Funds (a)		17,215			18,053			16,252			10,921			14,400			(5	)		20
Trading Liabilities:
Debt and Equity Instruments		96,606			90,488			106,784			105,445			104,160			7			(7	)
Derivative Payables		50,316			57,469			58,462			52,630			55,938			(12	)		(10	)
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		87,603			88,096			73,585			82,569			73,693			(1	)		19
Beneficial Interests Issued by Consolidated VIEs (a)		13,109			16,184			16,254			15,432			42,237			(19	)		(69	)
Long-Term Debt (a)		139,877			133,421			126,619			125,280			112,133			5			25
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		12,033			12,209			13,309			10,827			10,980			(1	)		10
Liabilities of discontinued operations held-for-sale (c)		-			-			24,558			26,888			-		NM			NM
TOTAL LIABILITIES		1,291,214			1,235,730			1,224,468			1,217,317			1,164,945			4			11
STOCKHOLDERS’ EQUITY
Common Stock		3,658			3,658			3,658			3,658			3,645			-			-
Capital Surplus		77,760			77,807			77,457			77,098			76,153			-			2
Retained Earnings (a) (d)		48,105			43,600			40,283			38,208			35,892			10			34
Accumulated Other Comprehensive Income (Loss)		(1,482	)		(1,557	)		(526	)		(1,218	)		(1,017	)		5			(46	)
Treasury Stock, at Cost		(10,337	)		(7,718	)		(7,311	)		(7,062	)		(6,336	)		(34	)		(63	)
TOTAL STOCKHOLDERS’ EQUITY		117,704			115,790			113,561			110,684			108,337			2			9
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,408,918		$	1,351,520		$	1,338,029		$	1,328,001		$	1,273,282			4			11

(a)	Includes fair value amounts related to designated assets, liabilities or commitments for which the Firm has elected the fair value option of accounting. The Firm early adopted SFAS 157 and SFAS 159 effective January 1, 2007.
(b)	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.
(c)	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, business banking and middle-market banking businesses of The Bank of New York. As a result of this transaction, assets and liabilities of this business were reclassified and reported as discontinued operations for the periods ended September 30, 2006 and June 30, 2006. JPMorgan Chase did not reclassify any Assets or Liabilities of discontinued operations held-for-sale at March 31, 2006.
(d)	The cumulative effect of changes in accounting principles increased Retained earnings as a result of implementing SFAS 157, SFAS 159 and FIN 48 was $922 million (after-tax) in the first quarter of 2007.

Page 4

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

(in millions, except rates)

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	16,224		$	19,736		$	31,291		$	39,193		$	20,672			(18	)%		(22	)%
Federal Funds Sold and Securities Purchased under Resale Agreements (a)		135,499			144,744			125,618			128,740			129,268			(6	)		5
Securities Borrowed		78,768			82,184			82,216			86,742			84,220			(4	)		(6	)
Trading Assets - Debt Instruments		257,079			218,188			213,164			204,551			185,679			18			38
Securities		95,326			89,962			78,029			82,845			60,216			6			58
Interests in Purchased Receivables (b)		-			-			-			26,221			30,028		NM			NM
Loans (a)		467,453			484,140			461,673			442,601			429,043			(3	)		9
Total Interest-Earning Assets		1,050,349			1,038,954			991,991			1,010,893			939,126			1			12
Trading Assets - Equity Instruments		88,791			81,985			75,366			70,045			70,762			8			25
Goodwill		37,341			37,868			35,338			35,586			36,759			(1	)		2
Other Intangible Assets:
Mortgage Servicing Rights		7,784			7,295			8,048			7,937			6,642			7			17
All Other Intangible Assets		14,923			14,773			15,250			15,456			14,127			1			6
All Other Noninterest-Earning Assets (a)		179,727			181,732			159,482			170,919			161,517			(1	)		11
Assets of discontinued operations held-for-sale (c)		-			-			23,664			23,033			19,424		NM			NM
TOTAL ASSETS	$	1,378,915		$	1,362,607		$	1,309,139		$	1,333,869		$	1,248,357			1			10
LIABILITIES
Interest-Bearing Deposits (a)	$	498,717		$	487,368		$	451,509		$	449,782		$	419,903			2			19
Federal Funds Purchased and Securities Sold under Repurchase Agreements		199,252			198,166			192,674			184,943			158,818			1			25
Commercial Paper		22,339			18,787			19,207			17,484			15,310			19			46
Other Borrowings (a) (d)		95,664			96,499			101,366			103,150			107,702			(1	)		(11	)
Beneficial Interests Issued by Consolidated VIEs (a)		15,993			15,769			13,630			43,470			42,192			1			(62	)
Long-Term Debt (a)		148,146			140,515			133,279			125,723			118,875			5			25
Total Interest-Bearing Liabilities		980,111			957,104			911,665			924,552			862,800			2			14
Noninterest-Bearing Liabilities		282,559			290,741			262,843			278,229			259,936			(3	)		9
Liabilities of discontinued operations held-for-sale (c)		-			-			22,825			22,131			18,317		NM			NM
TOTAL LIABILITIES		1,262,670			1,247,845			1,197,333			1,224,912			1,141,053			1			11
Preferred Stock		-			-			-			-			137		NM			NM
Common Stockholders’ Equity (a)		116,245			114,762			111,806			108,957			107,167			1			8
TOTAL STOCKHOLDERS’ EQUITY		116,245			114,762			111,806			108,957			107,304			1			8
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$	1,378,915		$	1,362,607		$	1,309,139		$	1,333,869		$	1,248,357			1			10
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		4.65	%		5.18	%		4.46	%		4.43	%		4.31	%
Federal Funds Sold and Securities Purchased under Resale Agreements		4.95			4.71			4.55			3.81			3.74
Securities Borrowed		5.42			4.56			4.28			3.89			3.51
Trading Assets - Debt Instruments		5.99			5.45			5.28			5.33			5.61
Securities		5.68			5.57			5.70			5.45			5.34
Interests in Purchased Receivables	NM			NM			NM				4.92			4.47
Loans		7.53			7.35			7.37			7.25			7.06
Total Interest-Earning Assets		6.45			6.17			6.08			5.82			5.75
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		4.06			3.99			3.93			3.67			3.43
Federal Funds Purchased and Securities Sold under Repurchase Agreements		5.09			4.86			4.63			4.30			3.90
Commercial Paper		4.89			4.76			4.78			4.31			3.97
Other Borrowings (d)		5.07			4.75			5.13			4.93			5.16
Beneficial Interests Issued by Consolidated VIEs		3.82			3.96			4.16			4.86			3.92
Long-Term Debt		3.85			4.34			4.08			4.34			4.21
Total Interest-Bearing Liabilities		4.35			4.31			4.26			4.09			3.87
INTEREST RATE SPREAD		2.10	%		1.86	%		1.82	%		1.73	%		1.88	%
NET YIELD ON INTEREST-EARNING ASSETS		2.39	%		2.19	%		2.17	%		2.07	%		2.19	%
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		2.73	%		2.54	%		2.54	%		2.50	%		2.67	%

(a)	Includes fair value amounts related to designated assets, liabilities or commitments for which the Firm has elected the fair value option of accounting. The Firm early adopted SFAS 157 and SFAS 159 effective January 1, 2007.
(b)	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.
(c)	As a result of the transaction with The Bank of New York, 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 for the periods prior to the close of the transaction; 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.
(d)	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 certain reclassifications that assumes credit card loans securitized by Card Services remain on the balance sheet and presents revenue 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
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
CREDIT CARD INCOME
Credit Card Income - Reported	$	1,563		$	1,645		$	1,567		$	1,791		$	1,910			(5	)%		(18	)%
Impact of:
Credit Card Securitizations		(746	)		(726	)		(721	)		(937	)		(1,125	)		(3	)		34
Credit Card Income - Managed	$	817		$	919		$	846		$	854		$	785			(11	)		4
OTHER INCOME
Other Income - Reported	$	518		$	522		$	635		$	464		$	554			(1	)		(6	)
Impact of:
Tax-Equivalent Adjustments		110			195			165			170			146			(44	)		(25	)
Other Income - Managed	$	628		$	717		$	800		$	634		$	700			(12	)		(10	)
TOTAL NONINTEREST REVENUE
Total Noninterest Revenue - Reported	$	12,850		$	10,501		$	10,166		$	9,908		$	10,182			22			26
Impact of:
Credit Card Securitizations		(746	)		(726	)		(721	)		(937	)		(1,125	)		(3	)		34
Tax-Equivalent Adjustments		110			195			165			170			146			(44	)		(25	)
Total Noninterest Revenue - Managed	$	12,214		$	9,970		$	9,610		$	9,141		$	9,203			23			33
NET INTEREST INCOME
Net Interest Income - Reported	$	6,118		$	5,692		$	5,379		$	5,178		$	4,993			7			23
Impact of:
Credit Card Securitizations		1,339			1,319			1,328			1,498			1,574			2			(15	)
Tax-Equivalent Adjustments		70			53			57			47			71			32			(1	)
Net Interest Income - Managed	$	7,527		$	7,064		$	6,764		$	6,723		$	6,638			7			13
TOTAL NET REVENUE
Total Net Revenue - Reported	$	18,968		$	16,193		$	15,545		$	15,086		$	15,175			17			25
Impact of:
Credit Card Securitizations		593			593			607			561			449			-			32
Tax-Equivalent Adjustments		180			248			222			217			217			(27	)		(17	)
Total Net Revenue - Managed	$	19,741		$	17,034		$	16,374		$	15,864		$	15,841			16			25
PROVISION FOR CREDIT LOSSES
Provision for Credit Losses - Reported	$	1,008		$	1,134		$	812		$	493		$	831			(11	)		21
Impact of:
Credit Card Securitizations		593			593			607			561			449			-			32
Provision for Credit Losses - Managed	$	1,601		$	1,727		$	1,419		$	1,054		$	1,280			(7	)		25
INCOME TAX EXPENSE
Income Tax Expense - Reported	$	2,545		$	1,268		$	1,705		$	1,727		$	1,537			101			66
Impact of:
Tax-Equivalent Adjustments		180			248			222			217			217			(27	)		(17	)
Income Tax Expense - Managed	$	2,725		$	1,516		$	1,927		$	1,944		$	1,754			80			55

Page 6

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

(in millions, except ratio data)

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
TOTAL NET REVENUE (FTE)
Investment Bank	$	6,254		$	4,860		$	4,816		$	4,329		$	4,828			29	%		30	%
Retail Financial Services		4,106			3,728			3,555			3,779			3,763			10			9
Card Services		3,680			3,750			3,646			3,664			3,685			(2	)		-
Commercial Banking		1,003			1,018			933			949			900			(1	)		11
Treasury & Securities Services		1,526			1,537			1,499			1,588			1,485			(1	)		3
Asset Management		1,904			1,947			1,636			1,620			1,584			(2	)		20
Corporate		1,268			194			289			(65	)		(404	)	NM			NM
TOTAL NET REVENUE	$	19,741		$	17,034		$	16,374		$	15,864		$	15,841			16			25
NET INCOME (LOSS)
Investment Bank	$	1,540		$	1,009		$	976		$	839		$	850			53			81
Retail Financial Services		859			718			746			868			881			20			(2	)
Card Services		765			719			711			875			901			6			(15	)
Commercial Banking		304			256			231			283			240			19			27
Treasury & Securities Services		263			256			256			316			262			3			-
Asset Management		425			407			346			343			313			4			36
Corporate (a)		631			1,161			31			16			(366	)		(46	)	NM
TOTAL NET INCOME (b)	$	4,787		$	4,526		$	3,297		$	3,540		$	3,081			6			55
AVERAGE EQUITY (c)
Investment Bank	$	21,000		$	21,000		$	21,000		$	21,000		$	20,000			-			5
Retail Financial Services		16,000			16,000			14,300			14,300			13,896			-			15
Card Services		14,100			14,100			14,100			14,100			14,100			-			-
Commercial Banking		6,300			6,300			5,500			5,500			5,500			-			15
Treasury & Securities Services		3,000			2,200			2,200			2,200			2,545			36			18
Asset Management		3,750			3,500			3,500			3,500			3,500			7			7
Corporate		52,095			51,662			51,206			48,357			47,626			1			9
TOTAL AVERAGE EQUITY	$	116,245		$	114,762		$	111,806		$	108,957		$	107,167			1			8
RETURN ON EQUITY (c)
Investment Bank		30	%		19	%		18	%		16	%		17	%
Retail Financial Services		22			18			21			24			26
Card Services		22			20			20			25			26
Commercial Banking		20			16			17			21			18
Treasury & Securities Services		36			46			46			58			42
Asset Management		46			46			39			39			36

(a)	Includes the after-tax impact of discontinued operations, insurance recoveries related to material litigation actions, tax audit benefits and Merger costs. See Corporate for additional details.
(b)	Net income includes Income from discontinued operations (after-tax) of $620 million, $65 million, $56 million and $54 million for the quarters ended December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. There was no Income from discontinued operations in the first quarter of 2007.
(c)	Each business segment is allocated capital by taking into consideration stand-alone peer comparisons, economic risk measures and regulatory capital requirements. The amount of capital assigned to each business is referred to as equity. Effective January 1, 2006, the Firm 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
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
INCOME STATEMENT
REVENUE
Investment Banking Fees	$	1,729		$	1,580		$	1,419		$	1,368		$	1,170			9	%		48	%
Principal Transactions (a) (b)		3,126			2,327			2,548			2,157			2,480			34			26
Lending & Deposit Related Fees		93			119			127			134			137			(22	)		(32	)
Asset Management, Administration and Commissions (b)		641			569			512			583			576			13			11
All Other Income		42			91			159			3			275			(54	)		(85	)
Noninterest Revenue		5,631			4,686			4,765			4,245			4,638			20			21
Net Interest Income		623	(f)		174			51			84			190			258			228
TOTAL NET REVENUE (c)		6,254			4,860			4,816			4,329			4,828			29			30
Provision for Credit Losses		63			63			7			(62	)		183			-			(66	)
Credit Reimbursement from TSS (d)		30			31			30			30			30			(3	)		-
NONINTEREST EXPENSE
Compensation Expense		2,637			1,880			2,093			1,961			2,256			40			17
Noncompensation Expense (b)		1,194			1,325			1,151			1,130			1,064			(10	)		12
TOTAL NONINTEREST EXPENSE		3,831			3,205			3,244			3,091			3,320			20			15
Income Before Income Tax Expense		2,390			1,623			1,595			1,330			1,355			47			76
Income Tax Expense		850			614			619			491			505			38			68
NET INCOME	$	1,540		$	1,009		$	976		$	839		$	850			53			81
FINANCIAL RATIOS
ROE		30	%		19	%		18	%		16	%		17	%
ROA		0.95			0.62			0.62			0.50			0.53
Overhead Ratio		61			66			67			71			69
Compensation Expense as a % of Total Net Revenue (e)		42			38			42			44			41
REVENUE BY BUSINESS
Investment Banking Fees:
Advisory	$	472		$	482		$	436		$	352		$	389			(2	)		21
Equity Underwriting		393			327			275			364			212			20			85
Debt Underwriting		864			771			708			652			569			12			52
Total Investment Banking Fees		1,729			1,580			1,419			1,368			1,170			9			48
Fixed Income Markets		2,592			2,061			2,468			2,131			2,076			26			25
Equity Markets		1,539			958			658			580			1,262			61			22
Credit Portfolio		394			261			271			250			320			51			23
Total Net Revenue	$	6,254		$	4,860		$	4,816		$	4,329		$	4,828			29			30
REVENUE BY REGION
Americas	$	3,366		$	2,535		$	2,803		$	2,110		$	2,153			33			56
Europe/Middle East/Africa		2,251			1,886			1,714			1,796			2,025			19			11
Asia/Pacific		637			439			299			423			650			45			(2	)
Total Net Revenue	$	6,254		$	4,860		$	4,816		$	4,329		$	4,828			29			30

(a)	As a result of the adoption on January 1, 2007, of SFAS 157, the IB recognized a benefit, in the current quarter, of $166 million in Net revenue (primarily in Credit Portfolio, but with smaller impacts to Equity Markets and Fixed Income Markets) relating to the incorporation of an adjustment to the valuation of the Firm’s derivative liabilities and other liabilities measured at fair value that reflects the credit quality of the Firm.
(b)	Certain transaction costs, previously reported within Revenue, have been reclassified to Noninterest expense. Revenue and Noninterest expense have been reclassified for all periods presented.
(c)	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 $152 million, $218 million, $197 million, $193 million and $194 million for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006.
(d)	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.
(e)	For the quarters ended December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, the 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 for 2006.
(f)	Net Interest Income for the quarter ended March 31, 2007 increased from the prior quarter primarily due to the adoption of SFAS 159. For certain IB structured notes elected, all components of earnings are reported in Principal Transactions, this caused a shift between Principal Transactions and Net Interest Income in the current quarter.

Page 8

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	658,724		$	645,993		$	626,245		$	672,056		$	646,220			2	%		2	%
Trading Assets - Debt and Equity Instruments		335,118			295,317			283,915			268,091			252,415			13			33
Trading Assets - Derivative Receivables		56,398			59,802			53,184			55,692			49,388			(6	)		14
Loans:
Loans Retained (a)		59,873			60,947			61,623			59,026			53,678			(2	)		12
Loans Held-for-Sale (b)		12,784			23,743			24,030			19,920			19,212			(46	)		(33	)
Total Loans		72,657			84,690			85,653			78,946			72,890			(14	)		-
Adjusted Assets (c)		572,017			548,628			539,278			530,057			492,304			4			16
Equity		21,000			21,000			21,000			21,000			20,000			-			5
Headcount		23,892			23,729			23,447			22,914			21,705			1			10
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(6	)	$	10		$	(8	)	$	(12	)	$	(21	)	NM				71
Nonperforming Assets:
- Nonperforming Loans (d)		92			231			420			488			434			(60	)		(79	)
- Other Nonperforming Assets		36			38			36			37			50			(5	)		(28	)
Allowance for Loan Losses		1,037			1,052			1,010			1,038			1,117			(1	)		(7	)
Allowance for Lending-Related Commitments		310			305			292			249			220			2			41
Net Charge-off (Recovery) Rate (a) (b)		(0.04	)%		0.07	%		(0.05	)%		(0.08	)%		(0.16	)%
Allowance for Loan Losses to Average Loans (a) (b)		1.76			1.73			1.64			1.76			2.08
Allowance for Loan Losses to Nonperforming Loans (d)		1,178			461			253			248			305
Nonperforming Loans to Average Loans		0.13			0.27			0.49			0.62			0.60
MARKET RISK - AVERAGE TRADING AND CREDIT PORTFOLIO VAR
Trading Activities:
Fixed Income	$	45		$	51		$	63		$	52		$	60			(12	)		(25	)
Foreign Exchange		19			20			24			25			20			(5	)		(5	)
Equities		42			35			32			24			32			20			31
Commodities and Other		34			35			46			52			47			(3	)		(28	)
Diversification (e)		(58	)		(58	)		(82	)		(74	)		(68	)		-			15
Total Trading VAR		82			83			83			79			91			(1	)		(10	)
Credit Portfolio VAR (f)		13			15			14			14			14			(13	)		(7	)
Diversification (e)		(12	)		(11	)		(8	)		(9	)		(11	)		(9	)		(9	)
Total Trading and Credit Portfolio VAR	$	83		$	87		$	89		$	84		$	94			(5	)		(12	)

	March 31, 2007 YTD					Full Year 2006
MARKET SHARES AND RANKINGS (g)	Market Share			Rankings		Market Share			Rankings
Global Debt, Equity and Equity-Related		8	%		# 2		7	%		# 2
Global Syndicated Loans		15	%		# 1		14	%		# 1
Global Long-Term Debt		8	%		# 2		6	%		# 3
Global Equity and Equity-Related		13	%		# 1		7	%		# 6
Global Announced M&A		23	%		# 2		22	%		# 4
U.S. Debt, Equity and Equity-Related		11	%		# 2		9	%		# 3
U.S. Syndicated Loans		27	%		# 1		26	%		# 1
U.S. Long-Term Debt		12	%		# 2		12	%		# 2
U.S. Equity and Equity-Related		19	%		# 1		8	%		# 6
U.S. Announced M&A		39	%		# 2		28	%		# 4

(a)	Loans retained include credit portfolio, conduit loans, leveraged leases, bridge loans for underwriting, other accrual loans and certain loans carried at fair value. Average loans carried at fair value were $900 million for the quarter ended March 31, 2007. This amount is excluded from Total loans for the allowance coverage ratio and Net charge-off rate.
(b)	Loans held-for-sale (which include loan syndications and warehouse loans held as part of the IB’s mortgage-backed, asset-backed and other securitization businesses) are excluded from the allowance coverage ratio and Net charge-off rate. Loans held-for-sale for the quarter ended March 31, 2007 reflect the impact of reclassifying approximately $12.0 billion of Loans held-for-sale to Trading assets as a result of the adoption of SFAS 159 effective January 1, 2007.
(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 that excludes the assets discussed above, which are 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 $4 million, $3 million, $21 million, $70 million and $68 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively, which are excluded from the allowance coverage ratios. Nonperforming loans exclude distressed HFS loans purchased as part of IB’s proprietary activities (beginning January 1, 2007, fair value accounting was elected for this portfolio).
(e)	Average VARs are less than the sum of the VARs of its market risk components, which is 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 VAR on derivative credit and debt valuation adjustments, hedges of the credit valuation adjustment and mark-to-market hedges of the retained loan portfolio, which are all reported in Principal Transactions. This VAR does not include the retained loan portfolio, which is not marked to market.
(g)	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
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	423		$	430		$	406		$	390		$	371			(2	)%		14	%
Asset Management, Administration and Commissions		263			293			326			366			437			(10	)		(40	)
Securities Gains (Losses)		-			(5	)		(7	)		(39	)		(6	)	NM			NM
Mortgage Fees and Related Income (a)		482			111			67			204			236			334			104
Credit Card Income		142			143			136			129			115			(1	)		23
All Other Income		179			176			170			163			48			2			273
Noninterest Revenue		1,489			1,148			1,098			1,213			1,201			30			24
Net Interest Income		2,617			2,580			2,457			2,566			2,562			1			2
TOTAL NET REVENUE		4,106			3,728			3,555			3,779			3,763			10			9
Provision for Credit Losses		292			262			114			100			85			11			244
NONINTEREST EXPENSE
Compensation Expense (a)		1,065			950			886			901			920			12			16
Noncompensation Expense (a)		1,224			1,211			1,142			1,246			1,207			1			1
Amortization of Intangibles		118			130			111			112			111			(9	)		6
TOTAL NONINTEREST EXPENSE		2,407			2,291			2,139			2,259			2,238			5			8
Income Before Income Tax Expense		1,407			1,175			1,302			1,420			1,440			20			(2	)
Income Tax Expense		548			457			556			552			559			20			(2	)
NET INCOME	$	859		$	718		$	746		$	868		$	881			20			(2	)
FINANCIAL RATIOS
ROE		22	%		18	%		21	%		24	%		26	%
Overhead Ratio		59			61			60			60			59
Overhead Ratio Excluding Core Deposit Intangibles (b)		56			58			57			57			57
SELECTED BALANCE SHEETS (Ending)
Assets	$	212,997		$	237,887		$	227,056		$	233,748		$	235,127			(10	)		(9	)
Loans, including Trading Loans (c) (d)		188,468			213,504			205,554			203,928			202,591			(12	)		(7	)
Deposits		221,840			214,081			198,260			198,273			200,154			4			11
SELECTED BALANCE SHEETS (Average)
Assets	$	217,135		$	235,301		$	225,307		$	234,097		$	231,587			(8	)		(6	)
Loans, including Trading Loans (e) (f)		190,979			211,654			203,307			201,635			198,797			(10	)		(4	)
Deposits		216,933			211,915			198,967			199,075			194,382			2			12
Equity		16,000			16,000			14,300			14,300			13,896			-			15
Headcount		67,247			65,570			61,915			62,450			62,472			3			8
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	185		$	214		$	128		$	113		$	121			(14	)		53
Nonperforming Loans (g)		1,655			1,677			1,404			1,339			1,349			(1	)		23
Nonperforming Assets		1,910			1,902			1,595			1,520			1,537			-			24
Allowance for Loan Losses		1,453			1,392			1,306			1,321			1,333			4			9
Net Charge-off Rate (e) (f)		0.46	%		0.45	%		0.27	%		0.24	%		0.27	%
Allowance for Loan Losses to Ending Loans (c) (d)		0.89			0.77			0.69			0.69			0.71
Allowance for Loan Losses to Nonperforming Loans (g)		94			89			95			99			100
Nonperforming Loans to Total Loans		0.88			0.79			0.68			0.66			0.67

(a)	As a result of the adoption of SFAS 159, certain loan origination costs have been reclassified to Expense (previously netted against Revenue) in the quarter ended March 31, 2007.
(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 of New York transaction and the Merger of $116 million, $130 million, $109 million, $110 million and $109 million for the quarters ending March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively.
(c)	End-of-period Loans include prime mortgage loans accounted for at fair value under SFAS 159 of $11.6 billion at March 31, 2007. These loans are classified as Trading Assets on the Consolidated balance sheet and are not included in the allowance coverage ratio.
(d)	End-of-period Loans include Loans held-for-sale of $13.4 billion, $32.7 billion, $17.0 billion, $11.8 billion and $14.3 billion at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. These amounts are not included in the allowance coverage ratios.
(e)	Average loans include prime mortgage loans accounted for at fair value under SFAS 159 of $6.5 billion for the quarter ended March 31, 2007. These loans are classified as Trading Assets on the Consolidated balance sheet and are not included in the Net charge-off rate.
(f)	Average loans include Loans held-for-sale of $21.7 billion, $21.2 billion, $14.0 billion, $12.9 billion and $16.4 billion for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. These amounts are not included in the Net charge-off rate.
(g)	Nonperforming loans include Loans held-for-sale of $112 million, $116 million, $24 million, $9 million and $16 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, 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
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
REGIONAL BANKING
Noninterest Revenue	$	793		$	678		$	855		$	851		$	820			17	%		(3	)%
Net Interest Income		2,299			2,229			2,107			2,212			2,220			3			4
Total Net Revenue		3,092			2,907			2,962			3,063			3,040			6			2
Provision for Credit Losses		233			165			53			70			66			41			253
Noninterest Expense		1,729			1,730			1,611			1,746			1,738			-			(1	)
Income Before Income Tax Expense		1,130			1,012			1,298			1,247			1,236			12			(9	)
Net Income		690			619			744			764			757			11			(9	)
ROE		24	%		21	%		29	%		30	%		31	%
Overhead Ratio		56			60			54			57			57
Overhead Ratio Excluding Core Deposit Intangibles (a)		52			55			51			53			54
BUSINESS METRICS (in billions)
Home Equity Origination Volume	$	12.7		$	12.9		$	13.3		$	14.0		$	11.7			(2	)		9
End of Period Loans Owned:
Home Equity	$	87.7		$	85.7		$	80.4		$	77.8		$	75.3			2			16
Mortgage (b)		9.2			30.1			46.6			48.6			47.0			(69	)		(80	)
Business Banking		14.3			14.1			13.1			13.0			12.8			1			12
Education		11.1			10.3			9.4			8.3			9.5			8			17
Other Loans (c)		2.7			2.7			2.2			2.6			2.7			-			-
Total End of Period Loans		125.0			142.9			151.7			150.3			147.3			(13	)		(15	)
End of Period Deposits:
Checking	$	69.3		$	68.7		$	59.8		$	62.3		$	64.9			1			7
Savings		100.1			92.4			86.9			89.1			91.0			8			10
Time and Other		42.2			43.3			41.5			36.5			34.2			(3	)		23
Total End of Period Deposits		211.6			204.4			188.2			187.9			190.1			4			11
Average Loans Owned:
Home Equity	$	86.3		$	84.2		$	78.8		$	76.2		$	74.1			2			16
Mortgage Loans (b)		8.9			40.8			47.8			47.1			44.6			(78	)		(80	)
Business Banking		14.3			14.0			13.0			13.0			12.8			2			12
Education		11.0			9.9			8.9			8.7			5.4			11			104
Other Loans (c)		3.0			2.7			2.2			2.6			3.0			11			-
Total Average Loans (d)		123.5			151.6			150.7			147.6			139.9			(19	)		(12	)
Average Deposits:
Checking	$	67.3		$	65.5		$	60.3		$	62.6		$	63.0			3			7
Savings		96.7			92.2			88.1			89.8			89.3			5			8
Time and Other		42.5			43.0			39.0			35.4			32.4			(1	)		31
Total Average Deposits		206.5			200.7			187.4			187.8			184.7			3			12
Average Assets		135.9			162.5			159.1			164.6			157.1			(16	)		(13	)
Average Equity		11.8			11.9			10.2			10.2			9.8			(1	)		20

Page 11

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
REGIONAL BANKING (continued)
CREDIT DATA AND QUALITY STATISTICS
30+ Day Delinquency Rate (e) (f)		1.93	%		2.02	%		1.57	%		1.48	%		1.36	%
Net Charge-offs
Home Equity	$	68		$	51		$	29		$	30		$	33			33	%		106	%
Mortgage		20			21			14			9			12			(5	)		67
Business Banking		25			38			19			16			18			(34	)		39
Other Loans		13			27			1			13			7			(52	)		86
Total Net Charge-offs		126			137			63			68			70			(8	)		80
Net Charge-off Rate
Home Equity		0.32	%		0.24	%		0.15	%		0.16	%		0.18	%
Mortgage		0.91			0.20			0.12			0.08			0.11
Business Banking		0.71			1.08			0.58			0.49			0.57
Other Loans (d)		0.55			1.15			0.05			0.55			0.56
Total Net Charge-off Rate (d) (g)		0.43			0.37			0.17			0.19			0.21
Nonperforming Assets (g) (h) (i)	$	1,770		$	1,725		$	1,421		$	1,349		$	1,339			3			32
RETAIL BRANCH BUSINESS METRICS
Investment Sales Volume	$	4,783		$	4,101		$	3,536		$	3,692		$	3,553			17			35
Number of:
Branches		3,071			3,079			2,677			2,660			2,638			(8)	#		433	#
ATMs		8,560			8,506			7,825			7,753			7,400			54			1,160
Personal Bankers (j)		7,846			7,573			7,484			7,260			7,019			273			827
Sales Specialists (j)		3,712			3,614			3,471			3,376			3,318			98			394
Active Online Customers (in thousands) (k)		6,172			5,715			5,340			5,072			5,030			457			1,142
Checking Accounts (in thousands)		10,136			9,995			9,270			9,072			8,936			141			1,200
MORTGAGE BANKING
Production Revenue (l)	$	400		$	215		$	197		$	202		$	219			86	%		83	%
Net Mortgage Servicing Revenue:
Loan Servicing Revenue		601			598			579			563			560			1			7
Changes in MSR Asset Fair Value:
Due to Inputs or Assumptions in Model (m)		108			38			(1,075	)		491			711			184			(85	)
Other Changes in Fair Value (n)		(378	)		(372	)		(327	)		(392	)		(349	)		(2	)		(8	)
Derivative Valuation Adjustments and Other		(127	)		(69	)		824			(546	)		(753	)		(84	)		83
Total Net Mortgage Servicing Revenue		204			195			1			116			169			5			21
Total Net Revenue		604			410			198			318			388			47			56
Noninterest Expense (l)		468			354			334			329			324			32			44
Income (Loss) Before Income Tax Expense		136			56			(136	)		(11	)		64			143			113
Net Income (Loss)		84			34			(83	)		(7	)		39			147			115
ROE		17	%		8	%	NM			NM				9	%
Business Metrics (in billions)
Third Party Mortgage Loans Serviced (Ending)	$	546.1		$	526.7		$	510.7		$	497.4		$	484.1			4			13
MSR Net Carrying Value (Ending)		7.9			7.5			7.4			8.2			7.5			5			5
Avg Mortgage Trading Loans and Loans Held-for-Sale (o)		23.8			17.9			10.5			9.8			13.0			33			83
Average Assets		38.0			29.8			22.4			23.9			27.1			28			40
Average Equity		2.0			1.7			1.7			1.7			1.7			18			18
Mortgage Origination Volume by Channel (in billions)
Retail	$	10.9		$	10.4		$	10.1		$	10.8		$	9.1			5			20
Wholesale		10.0			9.0			7.7			8.7			7.4			11			35
Correspondent (Including Negotiated Transactions)		13.2			11.6			10.6			12.0			11.7			14			13
Total		34.1			31.0			28.4			31.5			28.2			10			21

Page 12

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
AUTO FINANCE
Noninterest Revenue	$	131		$	124		$	110		$	90		$	44			6	%		198	%
Net Interest Income		279			287			285			308			291			(3	)		(4	)
Total Net Revenue		410			411			395			398			335			-			22
Provision for Credit Losses		59			97			61			30			19			(39	)		211
Noninterest Expense		210			207			194			184			176			1			19
Income Before Income Tax Expense		141			107			140			184			140			32			1
Net Income		85			65			85			111			85			31			-
ROE		16	%		11	%		14	%		19	%		14	%
ROA		0.80			0.60			0.77			0.98			0.73
Business Metrics (in billions)
Auto Origination Volume	$	5.2		$	5.0		$	5.5		$	4.5		$	4.3			4			21
End-of-Period Loans and Lease Related Assets
Loans Outstanding	$	39.7		$	39.3		$	38.1		$	39.4		$	41.0			1			(3	)
Lease Financing Receivables		1.2			1.7			2.2			2.8			3.6			(29	)		(67	)
Operating Lease Assets		1.7			1.6			1.5			1.3			1.1			6			55
Total End-of-Period Loans and Lease Related Assets		42.6			42.6			41.8			43.5			45.7			-			(7	)
Average Loans and Lease Related Assets
Loans Outstanding (p)	$	39.4		$	38.7		$	38.9		$	40.3		$	41.2			2			(4	)
Lease Financing Receivables		1.5			1.9			2.5			3.2			4.0			(21	)		(63	)
Operating Lease Assets		1.6			1.5			1.4			1.2			1.0			7			60
Total Average Loans and Lease Related Assets		42.5			42.1			42.8			44.7			46.2			1			(8	)
Average Assets		43.2			43.1			43.8			45.6			47.3			-			(9	)
Average Equity		2.2			2.4			2.4			2.4			2.4			(8	)		(8	)
Credit Quality Statistics
30+ Day Delinquency Rate		1.33	%		1.72	%		1.61	%		1.37	%		1.39	%
Net Charge-offs
Loans	$	58		$	76		$	63		$	44		$	48			(24	)		21
Lease Receivables		1			1			2			1			3			-			(67	)
Total Net Charge-offs		59			77			65			45			51			(23	)		16
Net Charge-off Rate
Loans (p)		0.60	%		0.78	%		0.66	%		0.45	%		0.47	%
Lease Receivables		0.27			0.21			0.32			0.13			0.30
Total Net Charge-off Rate (p)		0.59			0.75			0.64			0.43			0.46
Nonperforming Assets	$	140		$	177		$	174		$	171		$	198			(21	)		(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 of New York transaction and the Merger of $116 million, $130 million, $109 million, $110 million and $109 million for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively.
(b)	As of January 1, 2007, $19.4 billion of held-for-investment prime mortgage loans were transferred from Retail Financial Services (“RFS”) to Treasury within the Corporate segment for risk management and reporting purposes. Although the loans, together with the responsibility for the investment management of the portfolio, were transferred to Treasury, the transfer has no impact on the financial results of Regional Banking. The balances reported at and for the quarter ended March 31, 2007, reflect primarily subprime mortgage loans owned.
(c)	Includes commercial loans derived from community development activities and, prior to July 1, 2006, insurance policy loans.
(d)	Average loans include Loans held-for-sale of $4.4 billion, $3.3 billion, $2.5 billion, $1.9 billion and $3.3 billion for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. These amounts are not included in the Net charge-off rate.
(e)	Excludes delinquencies related to loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by government agencies of $975 million, $960 million, $880 million, $828 million and $942 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(f)	Excludes loans that are 30 days past due and still accruing, which are insured by government agencies under the Federal Family Education Loan Program of $519 million, $464 million, $462 million, $416 million and $370 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(g)	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 $178 million, $219 million, $189 million, $163 million and $156 million for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(h)	Excludes Nonperforming assets related to loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by government agencies of $1.3 billion, $1.2 billion, $1.1 billion, $1.1 billion and $1.1 billion at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(i)	Includes Nonperforming loans held-for-sale related to mortgage banking activities of $79 million, $11 million, $3 million, $9 million and $16 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively.
(j)	Excludes employees acquired as part of The Bank of New York transaction. Mapping of the existing Bank of New York acquired employee base into Chase employment categories is expected to be completed over the next year.
(k)	Includes Mortgage Banking and Auto Finance online customers.
(l)	As a result of the adoption of SFAS 159, certain loan origination costs have been reclassified to Expense (previously netted against Revenue) in the quarter ended March 31, 2007.
(m)	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.
(n)	Includes changes in the MSR value due to servicing portfolio runoff (or time decay).
(o)	Includes $6.5 billion of prime mortgage loans for which the fair value option was elected under SFAS 159. These loans are classified as Trading Assets on the Consolidated balance sheets for the quarter ended March 31, 2007.
(p)	Average loans include Loans held-for-sale of $943 million, and $1.2 billion for the quarters ended September 30, 2006 and June 30, 2006, respectively. Average loans held-for-sale for the quarters ended March 31, 2007, December 31, 2006 and March 31, 2006 were insignificant. These amounts are not included in the Net charge-off rate.

Page 13

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
INCOME STATEMENT
REVENUE
Credit Card Income	$	599		$	697		$	636		$	653		$	601			(14	)%		-	%
All Other Income		92			111			126			49			71			(17	)		30
Noninterest Revenue		691			808			762			702			672			(14	)		3
Net Interest Income		2,989			2,942			2,884			2,962			3,013			2			(1	)
TOTAL NET REVENUE		3,680			3,750			3,646			3,664			3,685			(2	)		-
Provision for Credit Losses (a)		1,229			1,281			1,270			1,031			1,016			(4	)		21
NONINTEREST EXPENSE
Compensation Expense		254			242			251			251			259			5			(2	)
Noncompensation Expense		803			915			823			810			796			(12	)		1
Amortization of Intangibles		184			184			179			188			188			-			(2	)
TOTAL NONINTEREST EXPENSE		1,241			1,341			1,253			1,249			1,243			(7	)		-
Income Before Income Tax Expense		1,210			1,128			1,123			1,384			1,426			7			(15	)
Income Tax Expense		445			409			412			509			525			9			(15	)
NET INCOME	$	765		$	719		$	711		$	875		$	901			6			(15	)
Memo: Net Securitization Gains (Amortization)	$	23		$	32		$	48		$	(6	)	$	8			(28	)		188
FINANCIAL METRICS
ROE		22	%		20	%		20	%		25	%		26	%
Overhead Ratio		34			36			34			34			34
% of Average Managed Outstandings:
Net Interest Income		8.11			7.92			8.07			8.66			8.85
Provision for Credit Losses		3.34			3.45			3.56			3.01			2.99
Noninterest Revenue		1.88			2.17			2.13			2.05			1.97
Risk Adjusted Margin (b)		6.65			6.65			6.65			7.70			7.84
Noninterest Expense		3.37			3.61			3.51			3.65			3.65
Pretax Income (ROO)		3.28			3.04			3.14			4.05			4.19
Net Income		2.08			1.94			1.99			2.56			2.65
BUSINESS METRICS
Charge Volume (in billions)	$	81.3		$	93.4		$	87.5		$	84.4		$	74.3			(13	)		9
Net Accounts Opened (in thousands) (c)		3,439			14,392			4,186			24,573			2,718			(76	)		27
Credit Cards Issued (in thousands)		152,097			154,424			139,513			136,685			112,446			(2	)		35
Number of Registered Internet Customers (in millions)		24.3			22.5			20.4			19.1			15.9			8			53
Merchant Acquiring Business (d)
Bank Card Volume (in billions)	$	163.6		$	177.9		$	168.7		$	166.3		$	147.7			(8	)		11
Total Transactions (in millions)		4,465			4,968			4,597			4,476			4,130			(10	)		8

(a)	Second quarter of 2006 includes a $90 million release of a $100 million special provision, originally recorded in the third quarter of 2005, related to Hurricane Katrina.
(b)	Represents Total Net Revenue less Provision for Credit Losses.
(c)	Fourth quarter of 2006 includes approximately 9 million accounts from the acquisition of the BP and Pier 1 Imports, Inc. private label portfolios. Second quarter of 2006 includes approximately 21 million accounts from the acquisition of the Kohl’s private label portfolio.
(d)	Represents 100% of the merchant acquiring business.

Page 14

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheets	$	78,173		$	85,881		$	78,587		$	72,961		$	64,691			(9	)%		21	%
Securitized Loans		68,403			66,950			65,245			66,349			69,580			2			(2	)
Managed Loans	$	146,576		$	152,831		$	143,832		$	139,310		$	134,271			(4	)		9
SELECTED AVERAGE BALANCES
Managed Assets	$	156,271		$	153,973		$	148,272		$	144,284		$	145,994			1			7
Loans:
Loans on Balance Sheets	$	81,932		$	81,489		$	76,655		$	68,185		$	68,455			1			20
Securitized Loans		67,485			65,898			65,061			69,005			69,571			2			(3	)
Managed Loans	$	149,417		$	147,387		$	141,716		$	137,190		$	138,026			1			8
Equity		14,100			14,100			14,100			14,100			14,100			-			-
Headcount		18,749			18,639			18,696			18,753			18,801			1			-
MANAGED CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,314		$	1,281		$	1,280		$	1,121		$	1,016			3			29
Net Charge-off Rate		3.57	%		3.45	%		3.58	%		3.28	%		2.99	%
Managed delinquency ratios
30+ days		3.07	%		3.13	%		3.17	%		3.14	%		3.10	%
90+ days		1.52			1.50			1.48			1.52			1.39
Allowance for Loan Losses	$	3,092		$	3,176		$	3,176		$	3,186		$	3,274			(3	)		(6	)
Allowance for Loan Losses to Period-end Loans		3.96	%		3.70	%		4.04	%		4.37	%		5.06	%

Page 15

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Basis for the Period	$	1,345		$	1,423		$	1,357		$	1,590		$	1,726			(5	)%		(22	)%
Securitization Adjustments		(746	)		(726	)		(721	)		(937	)		(1,125	)		(3	)		34
Managed Credit Card Income	$	599		$	697		$	636		$	653		$	601			(14	)		-
Net Interest Income
Reported Basis for the Period	$	1,650		$	1,623		$	1,556		$	1,464		$	1,439			2			15
Securitization Adjustments		1,339			1,319			1,328			1,498			1,574			2			(15	)
Managed Net Interest Income	$	2,989		$	2,942		$	2,884		$	2,962		$	3,013			2			(1	)
Total Net Revenue
Reported Basis for the Period	$	3,087		$	3,157		$	3,039		$	3,103		$	3,236			(2	)		(5	)
Securitization Adjustments		593			593			607			561			449			-			32
Managed Total Net Revenue	$	3,680		$	3,750		$	3,646		$	3,664		$	3,685			(2	)		-
Provision for Credit Losses
Reported Basis for the Period (b)	$	636		$	688		$	663		$	470		$	567			(8	)		12
Securitization Adjustments		593			593			607			561			449			-			32
Managed Provision for Credit Losses (b)	$	1,229		$	1,281		$	1,270		$	1,031		$	1,016			(4	)		21
BALANCE SHEETS - AVERAGE BALANCES (a)
Total Average Assets
Reported Basis for the Period	$	91,157		$	90,283		$	85,301		$	77,371		$	78,437			1			16
Securitization Adjustments		65,114			63,690			62,971			66,913			67,557			2			(4	)
Managed Average Assets	$	156,271		$	153,973		$	148,272		$	144,284		$	145,994			1			7
CREDIT QUALITY STATISTICS (a)
Net Charge-offs
Reported Net Charge-offs Data for the Period	$	721		$	688		$	673		$	560		$	567			5			27
Securitization Adjustments		593			593			607			561			449			-			32
Managed Net Charge-offs	$	1,314		$	1,281		$	1,280		$	1,121		$	1,016			3			29

(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 and Consolidated Balance Sheets.

(b)

Second quarter of 2006 includes a $90 million release of a $100 million special provision, originally recorded in the third quarter of 2005, related to Hurricane Katrina.

Page 16

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	158		$	155		$	145		$	147		$	142			2	%		11	%
Asset Management, Administration and Commissions		23			20			16			16			15			15			53
All Other Income (a)		154			135			95			111			76			14			103
Noninterest Revenue		335			310			256			274			233			8			44
Net Interest Income		668			708			677			675			667			(6	)		-
TOTAL NET REVENUE		1,003			1,018			933			949			900			(1	)		11
Provision for Credit Losses		17			111			54			(12	)		7			(85	)		143
NONINTEREST EXPENSE
Compensation Expense		180			174			190			179			197			3			(9	)
Noncompensation Expense		290			296			296			302			285			(2	)		2
Amortization of Intangibles		15			15			14			15			16			-			(6	)
TOTAL NONINTEREST EXPENSE		485			485			500			496			498			-			(3	)
Income Before Income Tax Expense		501			422			379			465			395			19			27
Income Tax Expense		197			166			148			182			155			19			27
NET INCOME	$	304		$	256		$	231		$	283		$	240			19			27
MEMO:
Revenue by Product:
Lending	$	348		$	359		$	335		$	331		$	319			(3	)		9
Treasury Services		556			576			551			566			550			(3	)		1
Investment Banking		76			87			60			66			40			(13	)		90
Other		23			(4	)		(13	)		(14	)		(9	)	NM			NM
Total Commercial Banking Revenue	$	1,003		$	1,018		$	933		$	949		$	900			(1	)		11
IB Revenues, Gross (b)	$	231		$	246		$	170		$	186		$	114			(6	)		103
Revenue by Business:
Middle Market Banking	$	661		$	661		$	617		$	634		$	623			-			6
Mid-Corporate Banking		212			198			160			161			137			7			55
Real Estate Banking		102			120			119			114			105			(15	)		(3	)
Other		28			39			37			40			35			(28	)		(20	)
Total Commercial Banking Revenue	$	1,003		$	1,018		$	933		$	949		$	900			(1	)		11
FINANCIAL RATIOS
ROE		20	%		16	%		17	%		21	%		18	%
Overhead Ratio		48			48			54			52			55

(a)	IB-related and commercial card revenues are included in All Other Income.
(b)	Represents the total revenue related to Investment Banking products sold to Commercial Banking clients.

Page 17

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	82,545		$	62,227		$	57,378		$	56,561		$	54,771			33	%		51	%
Loans and Leases (a)		57,660			57,657			53,404			52,413			50,836			-			13
Liability Balances (b)		81,752			79,050			72,009			72,556			70,763			3			16
Equity		6,300			6,300			5,500			5,500			5,500			-			15
MEMO:
Loans by Business:
Middle Market Banking	$	36,317		$	35,618		$	32,890		$	32,492		$	31,861			2			14
Mid-Corporate Banking		10,669			9,898			8,756			8,269			7,577			8			41
Real Estate Banking		7,074			7,745			7,564			7,515			7,436			(9	)		(5	)
Other		3,600			4,396			4,194			4,137			3,962			(18	)		(9	)
Total Commercial Banking Loans	$	57,660		$	57,657		$	53,404		$	52,413		$	50,836			-			13
Headcount		4,281			4,459			4,447			4,320			4,310			(4	)		(1	)
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(1	)	$	16		$	21		$	(3	)	$	(7	)	NM				86
Nonperforming Loans		141			121			157			225			202			17			(30	)
Allowance for Loan Losses		1,531			1,519			1,431			1,394			1,415			1			8
Allowance for Lending-Related Commitments		187			187			156			157			145			-			29
Net Charge-off (Recovery) Rate (a)		(0.01	)%		0.11	%		0.16	%		(0.02	)%		(0.06	)%
Allowance for Loan Losses to Average Loans (a)		2.68			2.67			2.70			2.68			2.80
Allowance for Loan Losses to Nonperforming Loans		1,086			1,255			911			620			700
Nonperforming Loans to Average Loans		0.24			0.21			0.29			0.43			0.40

(a)	Average loans include Loans held-for-sale of $475 million, $804 million, $359 million, $334 million and $268 million for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, 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
FINANCIAL HIGHLIGHTS
(in millions, except ratio data and where otherwise noted)

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	213		$	186		$	183		$	184		$	182			15	%		17	%
Asset Management, Administration and Commissions		686			717			642			683			650			(4	)		6
All Other Income		125			133			155			178			146			(6	)		(14	)
Noninterest Revenue		1,024			1,036			980			1,045			978			(1	)		5
Net Interest Income		502			501			519			543			507			-			(1	)
TOTAL NET REVENUE		1,526			1,537			1,499			1,588			1,485			(1	)		3
Provision for Credit Losses		6			(2	)		1			4			(4	)	NM			NM
Credit Reimbursement to IB (a)		(30	)		(31	)		(30	)		(30	)		(30	)		3			-
NONINTEREST EXPENSE
Compensation Expense		558			555			557			537			549			1			2
Noncompensation Expense		502			533			489			493			480			(6	)		5
Amortization of Intangibles		15			16			18			20			19			(6	)		(21	)
TOTAL NONINTEREST EXPENSE		1,075			1,104			1,064			1,050			1,048			(3	)		3
Income before Income Tax Expense		415			404			404			504			411			3			1
Income Tax Expense		152			148			148			188			149			3			2
NET INCOME	$	263		$	256		$	256		$	316		$	262			3			-
REVENUE BY BUSINESS
Treasury Services	$	689			700		$	697		$	702		$	693			(2	)		(1	)
Worldwide Securities Services		837			837			802			886			792			-			6
TOTAL NET REVENUE	$	1,526		$	1,537		$	1,499		$	1,588		$	1,485			(1	)		3
FINANCIAL RATIOS
ROE		36	%		46	%		46	%		58	%		42	%
Overhead Ratio		70			72			71			66			71
Pretax Margin Ratio (b)		27			26			27			32			28
FIRMWIDE BUSINESS METRICS
Assets under Custody (in billions)	$	14,661		$	13,903		$	12,873		$	11,536		$	11,179			5			31
Number of:
US$ ACH transactions originated (in millions)		971			931			886			848			838			4			16
Total US$ Clearing Volume (in thousands)		26,840			26,906			26,252			26,506			25,182			-			7
International Electronic Funds Transfer Volume (in thousands) (c)		42,399			41,007			35,322			35,255			33,741			3			26
Wholesale Check Volume (in millions)		771			793			860			904			852			(3	)		(10	)
Wholesale Cards Issued (in thousands) (d)		17,146			17,228			16,662			16,271			16,977			-			1

Page 19

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
SELECTED BALANCE SHEETS (Average)
Total Assets	$	46,005		$	35,422		$	30,558		$	31,774		$	29,230			30	%		57	%
Loans		18,948			19,030			15,231			14,993			12,940			-			46
Liability Balances (e)		210,639			193,129			192,518			194,181			178,133			9			18
Equity		3,000			2,200			2,200			2,200			2,545			36			18
Headcount		24,875			25,423			24,575			24,100			23,598			(2	)		5
TSS FIRMWIDE METRICS
Treasury Services Firmwide Revenue (f)	$	1,305		$	1,333		$	1,300		$	1,318		$	1,291			(2	)		1
Treasury & Securities Services Firmwide Revenue (f)		2,142			2,170			2,102			2,204			2,083			(1	)		3
Treasury Services Firmwide Overhead Ratio (g)		59	%		56	%		57	%		56	%		56	%
Treasury & Securities Services Firmwide Overhead Ratio (g)		63			63			63			59			62
Treasury Services Firmwide Liability Balances (Average) (h)	$	186,631		$	168,321		$	162,326		$	161,866		$	155,422			11			20
Treasury & Securities Services Firmwide Liability Balances (Average)(h)		292,391			272,178			264,527			265,398			248,328			7			18

	FOOTNOTES
(a)	TSS is charged a credit reimbursement related to certain exposures managed within the IB credit portfolio on behalf of clients shared with TSS.
(b)	Pretax margin represents Income before income tax expense divided by Total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.
(c)	International electronic funds transfer includes non-US$ ACH and clearing volume.
(d)	Wholesale cards issued include domestic commercial card, stored value card, prepaid card, and government electronic benefit card products.
(e)	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.

(f) Firmwide revenue includes TS revenue recorded in the Commercial Banking (“CB”), Regional Banking and Asset Management (“AM”) lines of business (see below) and excludes FX revenues recorded in the IB for TSS-related FX activity.

	QUARTERLY TRENDS
											1Q07 Change
	1Q07		4Q06		3Q06		2Q06		1Q06		4Q06			1Q06
TS Revenue Reported in CB	$	556	$	576	$	551	$	566	$	550		(3	)%		1	%
TS Revenue Reported in Other Lines of Business		60		57		52		50		48		5			25

	TSS firmwide FX revenue, which includes FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of the IB, was $112 million for the quarter ended March 31, 2007.
(g)	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.
(h)	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.

Page 20

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
INCOME STATEMENT
REVENUE
Asset Management, Administration and Commissions	$	1,489		$	1,509		$	1,285		$	1,279		$	1,222			(1	)%		22	%
All Other Income		170			192			120			93			116			(11	)		47
Noninterest Revenue		1,659			1,701			1,405			1,372			1,338			(2	)		24
Net Interest Income		245			246			231			248			246			-			-
TOTAL NET REVENUE		1,904			1,947			1,636			1,620			1,584			(2	)		20
Provision for Credit Losses		(9	)		14			(28	)		(7	)		(7	)	NM				(29	)
NONINTEREST EXPENSE
Compensation Expense		764			750			676			669			682			2			12
Noncompensation Expense		451			512			417			390			394			(12	)		14
Amortization of Intangibles		20			22			22			22			22			(9	)		(9	)
TOTAL NONINTEREST EXPENSE		1,235			1,284			1,115			1,081			1,098			(4	)		12
Income Before Income Tax Expense		678			649			549			546			493			4			38
Income Tax Expense		253			242			203			203			180			5			41
NET INCOME	$	425		$	407		$	346		$	343		$	313			4			36
REVENUE BY CLIENT SEGMENT
Private Bank	$	560		$	528		$	469		$	469		$	441			6			27
Institutional		551			624			464			449			435			(12	)		27
Retail		527			541			456			446			442			(3	)		19
Private Client Services		266			254			247			256			266			5			-
Total Net Revenue	$	1,904		$	1,947		$	1,636		$	1,620		$	1,584			(2	)		20
FINANCIAL RATIOS
ROE		46	%		46	%		39	%		39	%		36	%
Overhead Ratio		65			66			68			67			69
Pretax Margin Ratio (a)		36			33			34			34			31
BUSINESS METRICS
Number of:
Client Advisors		1,533			1,506			1,489			1,486			1,499			2			2
Retirement Planning Services Participants		1,423,000			1,362,000			1,372,000			1,361,000			1,327,000			4			7
% of Customer Assets in 4 & 5 Star Funds (b)		61	%		58	%		58	%		56	%		54	%		5			13
% of AUM in 1st and 2nd Quartiles: (c)
1 Year		76	%		83	%		79	%		71	%		72	%		(8	)		6
3 Years		76	%		77	%		75	%		75	%		75	%		(1	)		1
5 Years		81	%		79	%		80	%		81	%		75	%		3			8
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	45,816		$	46,716		$	43,524		$	43,228		$	41,012			(2	)		12
Loans (d)		25,640			28,917			26,770			25,807			24,482			(11	)		5
Deposits		54,816			51,341			51,395			51,583			48,066			7			14
Equity		3,750			3,500			3,500			3,500			3,500			7			7
Headcount		13,568			13,298			12,761			12,786			12,511			2			8
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	-		$	2		$	(24	)	$	(4	)	$	7		NM			NM
Nonperforming Loans		34			39			57			76			79			(13	)		(57	)
Allowance for Loan Losses		114			121			112			117			119			(6	)		(4	)
Allowance for Lending Related Commitments		5			6			4			3			3			(17	)		67
Net Charge-off (Recovery) Rate		-	%		0.03	%		(0.36	)%		(0.06	)%		0.12	%
Allowance for Loan Losses to Average Loans		0.44			0.42			0.42			0.45			0.49
Allowance for Loan Losses to Nonperforming Loans		335			310			196			154			151
Nonperforming Loans to Average Loans		0.13			0.13			0.21			0.29			0.32

(a)	Pretax margin represents Income Before Income Tax Expense divided by Total Net Revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.
(b)	Derived from Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.
(c)	Quartile rankings sourced from Lipper for the United States and Taiwan; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.
(d)	As of January 1, 2007, $5.3 billion of held-for-investment prime mortgage loans were transferred from AM to Treasury within the Corporate segment. Although the loans, together with the responsibility for the investment management of the portfolio, were transferred to Treasury, the transfer has no impact on the financial results of AM.

Page 21

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

											Mar 31, 2007
											Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
	2007		2006		2006		2006		2006		2006			2006
Assets by Asset Class
Liquidity (a)	$	318	$	311	$	281	$	247	$	236		2	%		35	%
Fixed Income		180		175		171		172		166		3			8
Equities & Balanced		446		427		392		393		397		4			12
Alternatives		109		100		91		86		74		9			47
TOTAL ASSETS UNDER MANAGEMENT		1,053		1,013		935		898		873		4			21
Custody / Brokerage / Administration / Deposits		342		334		330		315		324		2			6
TOTAL ASSETS UNDER SUPERVISION	$	1,395	$	1,347	$	1,265	$	1,213	$	1,197		4			17
Assets by Client Segment
Institutional	$	550	$	538	$	503	$	484	$	468		2			18
Private Bank		170		159		150		143		137		7			24
Retail		274		259		228		219		214		6			28
Private Client Services		59		57		54		52		54		4			9
TOTAL ASSETS UNDER MANAGEMENT	$	1,053	$	1,013	$	935	$	898	$	873		4			21
Institutional	$	551	$	539	$	505	$	486	$	471		2			17
Private Bank		374		357		347		331		332		5			13
Retail		361		343		309		295		291		5			24
Private Client Services		109		108		104		101		103		1			6
TOTAL ASSETS UNDER SUPERVISION	$	1,395	$	1,347	$	1,265	$	1,213	$	1,197		4			17
Assets by Geographic Region
U.S. / Canada	$	664	$	630	$	596	$	577	$	564		5			18
International		389		383		339		321		309		2			26
TOTAL ASSETS UNDER MANAGEMENT	$	1,053	$	1,013	$	935	$	898	$	873		4			21
U.S. / Canada	$	929	$	889	$	855	$	828	$	822		4			13
International		466		458		410		385		375		2			24
TOTAL ASSETS UNDER SUPERVISION	$	1,395	$	1,347	$	1,265	$	1,213	$	1,197		4			17
Mutual Funds Assets by Asset Class
Liquidity	$	257	$	255	$	221	$	178	$	167		1			54
Fixed Income		48		46		45		47		48		4			-
Equity		219		206		184		194		189		6			16
TOTAL MUTUAL FUND ASSETS	$	524	$	507	$	450	$	419	$	404		3			30

(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.

Page 22

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

	QUARTERLY TRENDS
	1Q07		4Q06		3Q06		2Q06			1Q06
ASSETS UNDER SUPERVISION (continued)
Assets Under Management Rollforward
Beginning Balance	$	1,013	$	935	$	898	$	873		$	847
Flows:
Liquidity		7		24		15		10			(5	)
Fixed Income		2		1		4		6			-
Equities, Balanced & Alternatives		10		5		3		13			13
Market / Performance / Other Impacts		21		48		15		(4	)		18
TOTAL ASSETS UNDER MANAGEMENT	$	1,053	$	1,013	$	935	$	898		$	873
Assets Under Supervision Rollforward
Beginning Balance	$	1,347	$	1,265	$	1,213	$	1,197		$	1,149
Net Asset Flows		27		31		26		33			12
Market / Performance / Other Impacts		21		51		26		(17	)		36
TOTAL ASSETS UNDER SUPERVISION	$	1,395	$	1,347	$	1,265	$	1,213		$	1,197

Page 23

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
INCOME STATEMENT
REVENUE
Principal Transactions (a) (b) (c)	$	1,325		$	236		$	195		$	551		$	199			461	%	NM
Securities Gains (Losses)		(8	)		18			24			(492	)		(158	)	NM				95	%
All Other Income (d)		68			27			125			231			102			152			(33	)
Noninterest Revenue		1,385			281			344			290			143			393		NM
Net Interest Income		(117	)		(87	)		(55	)		(355	)		(547	)		(34	)		79
TOTAL NET REVENUE		1,268			194			289			(65	)		(404	)	NM			NM
Provision for Credit Losses		3			(2	)		1			-			-		NM			NM
NONINTEREST EXPENSE
Compensation Expense (b)		776			434			737			770			685			79			13
Noncompensation Expense (c) (e)		556			678			731			336			612			(18	)		(9	)
Merger Costs		62			100			48			86			71			(38	)		(13	)
Subtotal		1,394			1,212			1,516			1,192			1,368			15			2
Net Expenses Allocated to Other Businesses		(1,040	)		(1,037	)		(1,035	)		(1,036	)		(1,033	)		-			(1	)
TOTAL NONINTEREST EXPENSE		354			175			481			156			335			102			6
Income (Loss) from continuing operations before Income Tax Expense		911			21			(193	)		(221	)		(739	)	NM			NM
Income Tax Expense (Benefit) (f)		280			(520	)		(159	)		(181	)		(319	)	NM			NM
Income (Loss) from Continuing Operations	$	631		$	541		$	(34	)	$	(40	)	$	(420	)		17		NM
Income from Discontinued Operations (after-tax) (g)		-			620			65			56			54		NM			NM
NET INCOME (LOSS)	$	631		$	1,161		$	31		$	16		$	(366	)		(46	)	NM
MEMO:
TOTAL NET REVENUE
Private Equity (a) (b)	$	1,253		$	250		$	188		$	500		$	204			401		NM
Treasury and Other Corporate (c) (d)		15			(56	)		101			(565	)		(608	)	NM			NM
TOTAL NET REVENUE	$	1,268		$	194		$	289		$	(65	)	$	(404	)	NM			NM
NET INCOME (LOSS)
Private Equity (a) (b)	$	698		$	136		$	95		$	293		$	103			413		NM
Treasury and Other Corporate (c) (d) (e) (f)		(29	)		467			(99	)		(280	)		(479	)	NM				94
Merger Costs		(38	)		(62	)		(30	)		(53	)		(44	)		39			14
Income (Loss) from Continuing Operations	$	631		$	541		$	(34	)	$	(40	)	$	(420	)		17		NM
Income from Discontinued Operations (after-tax)		-			620			65			56			54		NM			NM
TOTAL NET INCOME (LOSS)	$	631		$	1,161		$	31		$	16		$	(366	)		(46	)	NM
Headcount		23,702			23,242			25,748			27,100			27,390			2			(13	)

(a)	As a result of the adoption on January 1, 2007 of SFAS 157, Corporate recognized a benefit of $464 million in Net revenue, in the current quarter, relating to valuation adjustments on nonpublic private equity investments.
(b)	The first quarter of 2007 includes the reclassification of certain private equity carried interest from Net revenue to Compensation expense.
(c)	Certain transaction costs that were previously reported in Revenue have been reclassified to Noninterest expense. Revenue and Noninterest expense have been reclassified for all periods presented.
(d)	Includes a gain of $103 million in the second quarter of 2006 related to the initial public offering of MasterCard.
(e)	Includes insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material legal proceedings of $137 million, $17 million, $260 million and $98 million for the quarters ended December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively.
(f)	Includes tax benefit of $359 million related to audit resolutions in the fourth quarter of 2006.
(g)	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, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses are being reported as discontinued operations for each of the periods presented. Includes $622 million gain on sale in the fourth quarter of 2006.

Page 24

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

	QUARTERLY TRENDS
															1Q07 Change
	1Q07			4Q06			3Q06		2Q06			1Q06			4Q06			1Q06
SUPPLEMENTAL
TREASURY
Securities Gains (Losses) (a)	$	(8	)	$	7		$	24	$	(492	)	$	(158	)	NM				95	%
Investment Securities Portfolio (Average)		86,436			80,616			68,619		63,714			39,989			7	%		116
Investment Securities Portfolio (Ending)		88,681			82,091			77,116		61,990			46,093			8			92
Mortgage Loans (Average) (b)		25,244			-			-		-			-		NM			NM
Mortgage Loans (Ending) (b)		26,499			-			-		-			-		NM			NM
PRIVATE EQUITY
Private Equity Gains (Losses)
Direct Investments
Realized Gains	$	723		$	254		$	194	$	568		$	207			185			249
Write-ups / (Write-downs) (c)		648			12			(21)		(74)			10		NM			NM
Mark-to-Market Gains (Losses)		(127	)		(6	)		25		49			4		NM			NM
Total Direct Investments		1,244			260			198		543			221			378			463
Third-Party Fund Investments		34			27			28		6			16			26			113
Total Private Equity Gains (d)	$	1,278		$	287		$	226	$	549		$	237			345			439
Private Equity Portfolio Information
Direct Investments
Publicly-Held Securities
Carrying Value	$	389		$	587		$	696	$	589		$	501			(34	)		(22	)
Cost		366			451			539		446			395			(19	)		(7	)
Quoted Public Value		493			831			1,022		808			677			(41	)		(27	)
Privately-Held Direct Securities
Carrying Value		5,294			4,692			4,241		4,321			5,077			13			4
Cost		5,574			5,795			5,482		5,647			6,501			(4	)		(14	)
Third-Party Fund Investments
Carrying Value		744			802			682		642			675			(7	)		10
Cost		1,026			1,080			1,000		963			1,000			(5	)		3
Total Private Equity Portfolio - Carrying Value	$	6,427		$	6,081		$	5,619	$	5,552		$	6,253			6			3
Total Private Equity Portfolio - Cost	$	6,966		$	7,326		$	7,021	$	7,056		$	7,896			(5	)		(12	)

(a)	Losses reflect repositioning of the Treasury investment securities portfolio. Excludes gains/losses on securities used to manage risk associated with MSRs.
(b)	As of January 1, 2007, $19.4 billion and $5.3 billion of held-for-investment residential mortgage loans were transferred from RFS and AM, respectively, to the Corporate segment for risk management and reporting purposes.
(c)	Private equity gains in the first quarter of 2007 include a fair value adjustment of $464 million related to the adoption of SFAS 157. In addition, the first quarter of 2007 includes the reclassification of certain private equity carried interest from Net revenue to Compensation expense.
(d)	Included in Principal Transactions.

Page 25

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

											Mar 31, 2007
											Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
	2007		2006		2006		2006		2006		2006			2006
CREDIT EXPOSURE
WHOLESALE (a) (b)
Loans - U.S.	$	108,627	$	118,686	$	123,791	$	125,870	$	118,501		(8	)%		(8	)%
Loans - Non-U.S.		59,567		65,056		55,612		52,345		46,298		(8	)		29
TOTAL WHOLESALE LOANS - REPORTED		168,194		183,742		179,403		178,215		164,799		(8	)		2
CONSUMER (c) (d)
Home Equity		87,741		85,730		80,399		77,826		75,241		2			17
Mortgage (includes RFS and Corporate)		46,574		59,668		60,075		60,014		57,690		(22	)		(19	)
Auto Loans and Leases		40,937		41,009		40,310		42,184		44,600		-			(8	)
Credit Card Receivables - Reported		78,173		85,881		78,587		72,961		64,691		(9	)		21
Other Loans		28,146		27,097		24,770		23,904		25,060		4			12
TOTAL CONSUMER LOANS - REPORTED		281,571		299,385		284,141		276,889		267,282		(6	)		5
TOTAL LOANS - REPORTED		449,765		483,127		463,544		455,104		432,081		(7	)		4
Credit Card Securitizations		68,403		66,950		65,245		66,349		69,580		2			(2	)
TOTAL LOANS - MANAGED		518,168		550,077		528,789		521,453		501,661		(6	)		3
Derivative Receivables		49,647		55,601		58,265		54,075		52,750		(11	)		(6	)
Interests in Purchased Receivables (e) (f)		-		-		-		-		29,029	NM			NM
TOTAL CREDIT-RELATED ASSETS		567,815		605,678		587,054		575,528		583,440		(6	)		(3	)
Wholesale Lending-Related Commitments (f)		412,382		391,424		374,417		366,914		322,575		5			28
TOTAL	$	980,197	$	997,102	$	961,471	$	942,442	$	906,015		(2	)		8
Memo: Total by Category
Total Wholesale Exposure (g)	$	630,223	$	630,767	$	612,085	$	599,204	$	569,153		-			11
Total Consumer Managed Loans (h)		349,974		366,335		349,386		343,238		336,862		(4	)		4
Total	$	980,197	$	997,102	$	961,471	$	942,442	$	906,015		(2	)		8
Risk Profile of Wholesale Credit Exposure:
Investment-Grade (i)	$	487,404	$	490,185	$	481,249	$	464,982	$	445,848		(1	)		9
Noninvestment-Grade: (i)
Noncriticized		122,759		113,049		106,831		105,383		98,354		9			25
Criticized Performing		5,117		4,599		4,169		3,431		4,325		11			18
Criticized Nonperforming		263		427		674		783		731		(38	)		(64	)
Total Noninvestment-Grade		128,139		118,075		111,674		109,597		103,410		9			24
Held-for-Sale Wholesale Loans		14,680		22,256		18,889		24,323		19,555		(34	)		(25	)
Purchased Nonperforming Held-for-Sale Wholesale Loans (j)		-		251		273		302		340	NM			NM
Total Wholesale Exposure	$	630,223	$	630,767	$	612,085	$	599,204	$	569,153		-			11

(a)	Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management.
(b)	Excludes approximately $12.0 billion of loans reclassified from held-for-sale to Trading assets as a result of the adoption of SFAS 159 effective January 1, 2007.
(c)	Includes Retail Financial Services, Card Services and residential mortgage loans reported in the Corporate segment.
(d)	Excludes $11.6 billion of consumer loans carried at fair value and classified as Trading Assets.
(e)	These represent undivided interests in pools of receivables and similar types of assets.
(f)	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 a related increase of $33 billion of Lending-Related Commitments.
(g)	Represents Total Wholesale Loans, Derivative Receivables, Interests in Purchased Receivables and Wholesale Lending-Related Commitments.
(h)	Represents Total Consumer Loans plus Credit Card Securitizations, excluding consumer Lending-related commitments.
(i)	Excludes HFS loans.
(j)	Represents distressed HFS wholesale loans purchased as part of IB’s proprietary activities, which are excluded from Nonperforming assets. Beginning January 1, 2007, fair value accounting was elected for this portfolio and the loans were reclassified as Trading Assets.

Note: The risk profile is based on JPMorgan Chase’s internal risk ratings, which generally correspond to the following ratings as defined by Standard & Poor’s / Moody’s:
Investment-Grade: AAA / Aaa to BBB- / Baa3
Noninvestment-Grade: BB+ / Ba1 and below

Page 26

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

																Mar 31, 2007
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2007			2006			2006			2006			2006			2006			2006
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS (a)
Loans - U.S.	$	205		$	309		$	486		$	663		$	572			(34	)%		(64	)%
Loans - Non-U.S.		62			82			170			148			165			(24	)		(62	)
TOTAL WHOLESALE LOANS-REPORTED (b)		267			391			656			811			737			(32	)		(64	)
CONSUMER LOANS (c)
Home Equity		459			454			400			403			451			1			2
Mortgage (includes RFS and Corporate)		960			769			588			503			451			25			113
Auto Loans and Leases		95			132			130			133			157			(28	)		(39	)
Credit Card Receivables - Reported		9			9			10			11			12			-			(25	)
Other Loans		326			322			286			300			290			1			12
TOTAL CONSUMER LOANS-REPORTED (d)		1,849			1,686			1,414			1,350			1,361			10			36
TOTAL LOANS REPORTED (b)		2,116			2,077			2,070			2,161			2,098			2			1
Derivative Receivables		36			36			35			36			49			-			(27	)
Assets Acquired in Loan Satisfactions		269			228			195			187			201			18			34
TOTAL NONPERFORMING ASSETS (b)	$	2,421		$	2,341		$	2,300		$	2,384		$	2,348			3			3
PURCHASED HELD-FOR-SALE WHOLESALE LOANS (e)	$	-		$	251		$	273		$	302		$	340		NM			NM
TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.47	%		0.43	%		0.45	%		0.47	%		0.49	%
NONPERFORMING ASSETS BY LOB
Investment Bank	$	128		$	269		$	456		$	525		$	484			(52	)		(74	)
Retail Financial Services		1,910			1,902			1,595			1,520			1,537			-			24
Card Services		9			9			10			11			12			-			(25	)
Commercial Banking		142			122			160			230			214			16			(34	)
Treasury & Securities Services		-			-			22			22			22		NM			NM
Asset Management		35			39			57			76			79			(10	)		(56	)
Corporate (f)		197			-			-			-			- -		NM			NM
TOTAL	$	2,421		$	2,341		$	2,300		$	2,384		$	2,348			3			3

(a)	Includes nonperforming HFS loans of $4 million, $4 million, $21 million, $70 million and $68 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively.
(b)	Excludes purchased HFS wholesale loans.
(c)	Includes nonperforming HFS loans of $112 million, $116 million, $24 million, $9 million and $16 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively.
(d)	Excludes Nonperforming assets related to (1) loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by U.S. government agencies and U.S. government- sponsored enterprises of $1.3 billion, $1.2 billion, $1.1 billion, $1.1 billion and $1.1 billion at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006, and March 31, 2006, respectively, and (2) education loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $178 million, $219 million, $189 million, $163 million and $156 million for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.
(e)	Represents distressed HFS wholesale loans purchased as part of IB’s proprietary activities, which are excluded from Nonperforming assets. Beginning January 1, 2007, fair value accounting was elected for this portfolio and the loans were reclassified as Trading Assets.
(f)	Relates to held-for-investment prime mortgage loans transferred from RFS and AM to the Corporate segment.

Page 27

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
GROSS CHARGE-OFFS
Wholesale Loans	$	17		$	76		$	48		$	23		$	39			(78	)%		(56	)%
Consumer (includes RFS and Corporate)		241			266			186			172			178			(9	)		35
Credit Card Receivables - Reported		847			801			777			653			665			6			27
Total Loans - Reported		1,105			1,143			1,011			848			882			(3	)		25
Credit Card Securitizations		702			694			702			656			527			1			33
Total Loans - Managed		1,807			1,837			1,713			1,504			1,409			(2	)		28
RECOVERIES
Wholesale Loans		23			48			59			42			59			(52	)		(61	)
Consumer (includes RFS and Corporate)		53			52			58			59			57			2			(7	)
Credit Card Receivables - Reported		126			113			104			93			98			12			29
Total Loans - Reported		202			213			221			194			214			(5	)		(6	)
Credit Card Securitizations		109			101			95			95			78			8			40
Total Loans - Managed		311			314			316			289			292			(1	)		7
NET CHARGE-OFFS
Wholesale Loans		(6	)		28			(11	)		(19	)		(20	)	NM				70
Consumer (includes RFS and Corporate)		188			214			128			113			121			(12	)		55
Credit Card Receivables - Reported		721			688			673			560			567			5			27
Total Loans - Reported		903			930			790			654			668			(3	)		35
Credit Card Securitizations		593			593			607			561			449			-			32
Total Loans - Managed	$	1,496		$	1,523		$	1,397		$	1,215		$	1,117			(2	)		34
NET CHARGE-OFF RATES - ANNUALIZED
Wholesale Loans (a)		(0.02	)%		0.07	%		(0.03	)%		(0.05	)%		(0.06	)%
Consumer (includes RFS and Corporate) (b)		0.47			0.45			0.27			0.24			0.27
Credit Card Receivables - Reported		3.57			3.35			3.48			3.29			3.36
Total Loans - Reported (a) (b)		0.85			0.84			0.74			0.64			0.69
Credit Card Securitizations		3.56			3.57			3.70			3.26			2.62
Total Loans - Managed (a) (b)		1.22			1.20			1.13			1.02			0.98
Memo: Credit Card - Managed		3.57			3.45			3.58			3.28			2.99

(a)

Average wholesale loans held-for-sale were $13.3 billion, $24.5 billion, $24.4 billion, $20.3 billion and $19.5 billion for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. Average wholesale loans carried at fair value were $900 million for the quarter ended March 31, 2007. These amounts are not included in the net charge-off rates.

(b)

Average consumer loans (excluding Card) held-for-sale were $21.7 billion, $21.2 billion, $14.0 billion, $12.9 billion and $16.4 billion for the quarters ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, 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
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	7,279		$	7,056		$	7,076		$	7,275		$	7,090			3	%		3	%
Net Charge-Offs		(903	)		(930	)		(790	)		(654	)		(668	)		3			(35	)
Provision for Loan Losses		979			1,085			768			453			847			(10	)		16
Other (a)(b)		(55	)		68			2			2			6			(99	)		(83	)
Ending Balance	$	7,300		$	7,279		$	7,056		$	7,076		$	7,275			-			-
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	524		$	468		$	424		$	384		$	400			12			31
Provision for Lending-Related Commitments		29			49			44			40			(16	)		(41	)	NM
Other (b)		-			7			-			-			-		NM			NM
Ending Balance	$	553		$	524		$	468		$	424		$	384			6			44
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset Specific	$	54		$	51		$	101		$	160		$	118			6			(54	)
Formula - Based		2,639			2,660			2,473			2,409			2,550			(1	)		3
Total Wholesale		2,693			2,711			2,574			2,569			2,668			(1	)		1
Consumer (c)
Formula - Based		4,607			4,568			4,482			4,507			4,607			1			-
Total Allowance for Loan Losses		7,300			7,279			7,056			7,076			7,275			-			-
Allowance for Lending-Related Commitments		553			524			468			424			384			6			44
Total Allowance for Credit Losses	$	7,853		$	7,803		$	7,524		$	7,500		$	7,659			1			3
Wholesale Allowance for Loan Losses to Total Wholesale Loans (d)		1.76	%		1.68	%		1.61	%		1.67	%		1.84	%
Consumer Allowance for Loan Losses to Total Consumer Loans (e)		1.72			1.71			1.68			1.70			1.82
Allowance for Loan Losses to Total Loans (d) (e)		1.74			1.70			1.65			1.69			1.83
Allowance for Loan Losses to Total Nonperforming Loans (f)		365			372			348			340			361
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,037		$	1,052		$	1,010		$	1,038		$	1,117			(1	)		(7	)
Retail Financial Services		1,453			1,392			1,306			1,321			1,333			4			9
Card Services		3,092			3,176			3,176			3,186			3,274			(3	)		(6	)
Commercial Banking		1,531			1,519			1,431			1,394			1,415			1			8
Treasury & Securities Services		11			7			9			9			6			57			83
Asset Management		114			121			112			117			119			(6	)		(4	)
Corporate (g)		62			12			12			11			11			417			464
Total	$	7,300		$	7,279		$	7,056		$	7,076		$	7,275			-			-

(a)	First quarter of 2007 primarily relates to the Firm’s adoption of SFAS 159 effective January 1, 2007.
(b)	Fourth quarter of 2006 reflects The Bank of New York transaction.
(c)	Includes RFS, CS and Corporate.
(d)	Wholesale loans held-for-sale were $14.7 billion, $22.5 billion, $19.2 billion, $24.6 billion and $19.9 billion at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. Wholesale loans carried at fair value were $900 million for the quarter ended March 31, 2007 These amounts are not included in the allowance coverage ratios.
(e)	Consumer loans held-for-sale were $13.4 billion, $32.7 billion, $17.0 billion, $11.8 billion and $14.3 billion at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively. These amounts are not included in the allowance coverage ratios.
(f)	Nonperforming loans held-for-sale were $116 million, $120 million, $45 million, $79 million and $84 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, espectively. These amounts are not included in the allowance coverage ratios.
(g)	March 31, 2007 includes $50 million associated with held-for-investment prime mortgages transferred from RFS and AM to the Corporate segment and $12 million related to Hurricane Katrina.

Page 29

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	35		$	50		$	(36	)	$	(91	)	$	189			(30	)%		(81	)%
Commercial Banking		17			86			55			(24	)		16			(80	)		6
Treasury & Securities Services		4			(2	)		1			4			(4	)	NM			NM
Asset Management		(8	)		12			(29	)		(7	)		(6	)	NM				(33	)
Corporate		-			(2	)		1			-			-		NM			NM
Total Wholesale		48			144			(8	)		(118	)		195			(67	)		(75	)
Retail Financial Services		292			253			113			101			85			15			244
Card Services (a)		636			688			663			470			567			(8	)		12
Corporate (b)		3			-			-			-			-		NM			NM
Total Consumer		931			941			776			571			652			(1	)		43
Total Provision for Loan Losses		979			1,085			768			453			847			(10	)		16
LENDING-RELATED COMMITMENTS
Investment Bank	$	28		$	13		$	43		$	29		$	(6	)		115		NM
Commercial Banking		-			25			(1	)		12			(9	)	NM			NM
Treasury & Securities Services		2			-			-			-			-		NM			NM
Asset Management		(1	)		2			1			-			(1	)	NM				-
Total Wholesale		29			40			43			41			(16	)		(28	)	NM
Retail Financial Services		-			9			1			(1	)		-		NM			NM
Card Services		-			-			-			-			-		NM			NM
Total Consumer		-			9			1			(1	)		-		NM			NM
Total Provision for Lending-Related Commitments		29			49			44			40			(16	)		(41	)	NM
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	63		$	63		$	7		$	(62	)	$	183			-			(66	)
Commercial Banking		17			111			54			(12	)		7			(85	)		143
Treasury & Securities Services		6			(2	)		1			4			(4	)	NM			NM
Asset Management		(9	)		14			(28	)		(7	)		(7	)	NM				(29	)
Corporate		-			(2	)		1			-			-		NM			NM
Total Wholesale		77			184			35			(77	)		179			(58	)		(57	)
Retail Financial Services		292			262			114			100			85			11			244
Card Services (a)		636			688			663			470			567			(8	)		12
Corporate (b)		3			-			-			-			-		NM			NM
Total Consumer		931			950			777			570			652			(2	)		43
Total Provision for Credit Losses		1,008			1,134			812			493			831			(11	)		21
Securitized Credit Losses		593			593			607			561			449			-			32
Managed Provision for Credit Losses	$	1,601		$	1,727		$	1,419		$	1,054		$	1,280			(7	)		25

(a)	Second quarter of 2006 includes a $90 million release of a $100 million special provision, originally recorded in the third quarter of 2005, related to Hurricane Katrina.
(b)	Includes amounts related to held-for-investment prime mortgages transferred from RFS and AM to the Corporate segment.

Page 30

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

	QUARTERLY TRENDS
																1Q07 Change
	1Q07			4Q06			3Q06			2Q06			1Q06			4Q06			1Q06
COMMON SHARES OUTSTANDING
Weighted - Average Basic Shares Outstanding		3,456.4			3,465.3			3,468.6			3,473.8			3,472.7			-	%		-	%
Weighted - Average Diluted Shares Outstanding		3,559.5			3,578.6			3,574.0			3,572.2			3,570.8			(1	)		-
Common Shares Outstanding - at Period End		3,416.3			3,461.7			3,467.5			3,470.6			3,473.0			(1	)		(2	)
Cash Dividends Declared per Share	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34			-			-
Book Value per Share		34.45			33.45			32.75			31.89			31.19			3			10
Dividend Payout (a)		25	%		27	%		37	%		35	%		39	%
NET INCOME	$	4,787		$	4,526		$	3,297		$	3,540		$	3,081			6			55
Preferred Dividends		-			-			-			-			4		NM			NM
Net Income Applicable to Common Stock	$	4,787		$	4,526		$	3,297		$	3,540		$	3,077			6			56
INCOME PER SHARE
Basic Earnings per Share
Income from continuing operations	$	1.38		$	1.13		$	0.93		$	1.00		$	0.87			22			59
Net Income		1.38			1.31			0.95			1.02			0.89			5			55
Diluted Earnings per Share
Income from continuing operations	$	1.34		$	1.09		$	0.90		$	0.98		$	0.85			23			58
Net Income		1.34			1.26			0.92			0.99			0.86			6			56
SHARE PRICE
High	$	51.95		$	49.00		$	47.49		$	46.80		$	42.43			6			22
Low		45.91			45.51			40.40			39.33			37.88			1			21
Close		48.38			48.30			46.96			42.00			41.64			-			16
Market Capitalization		165,280			167,199			162,835			145,764			144,614			(1	)		14
STOCK REPURCHASE PROGRAM (b) (c)
Aggregate Repurchases	$	4,000.9		$	1,000.3		$	900.0		$	745.5		$	1,290.3			300			210
Common Shares Repurchased		80.9			21.1			20.0			17.7			31.8			283			154
Average Purchase Price	$	49.45		$	47.33		$	44.88		$	42.24		$	40.54			4			22
CAPITAL RATIOS
Tier 1 Capital	$	82,538	(d)	$	81,055		$	79,830		$	74,983		$	73,085			2			13
Total Capital		115,258	(d)		115,265			111,670			106,283			103,800			-			11
Risk - Weighted Assets		974,530	(d)		935,909			926,455			884,228			858,080			4			14
Adjusted Average Assets		1,324,145	(d)		1,308,699			1,257,364			1,282,233			1,195,231			1			11
Tier 1 Capital Ratio		8.5	%(d)		8.7	%		8.6	%		8.5	%		8.5	%
Total Capital Ratio		11.8	(d)		12.3			12.1			12.0			12.1
Tier 1 Leverage Ratio		6.2	(d)		6.2			6.3			5.8			6.1
INTANGIBLE ASSETS (PERIOD - END)
Goodwill	$	45,063		$	45,186		$	43,372		$	43,498		$	43,899			-			3
Mortgage Servicing Rights		7,937			7,546			7,378			8,247			7,539			5			5
Purchased Credit Card Relationships		2,758			2,935			2,982			3,138			3,243			(6	)		(15	)
All Other Intangibles		4,205			4,371			4,078			4,231			4,832			(4	)		(13	)
Total Intangibles	$	59,963		$	60,038		$	57,810		$	59,114		$	59,513			-			1

(a)	Based on Net income amounts.
(b)	The Board of Directors has authorized the repurchase of up to $10.0 billion of the Firm’s common shares. The new authorization commences April 19, 2007, and replaces the Firm’s previous $8.0 billion repurchase program authorized on March 21, 2006. As of the close of business on April 17, 2007, there was approximately $850 million remaining on the March 2006 authorization.
(c)	Excludes commission costs.
(d)	Estimated.

Page 31

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.

Beneficial interest issued by consolidated VIEs: Represents the interest of third-party holders of debt/equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates under FIN 46R. The underlying obligations of the VIEs consist of short-term borrowings, commercial paper and long-term debt. The related assets consist of trading assets, available- for-sale securities, loans and other assets.

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

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.

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.

FIN 39: FASB Interpretation No. 39, “Offsetting of Amounts Related to Certain Contracts - an interpretation of APB Opinion No. 10 and FASB Statement No. 105.”

FIN 46R: FASB Interpretation No. 46 (revised December 2003), “Consolidation of Variable Interest Entities - an interpretation of Accounting Research Bulletin No. 51.”

FIN 48: FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109.”

Interests in Purchased Receivables: Represent an ownership interest in a percentage in cash flows of an underlying pool of receivables transferred by a third-party seller into a bankruptcy remote entity, generally a trust.

Investment-grade: An indication of credit quality based upon JPMorgan Chase’s internal risk assessment system. “Investment-grade” generally represents a risk profile similar to a rating of a BBB-/Baa3 or better, as defined by independent rating agencies.

Managed Basis: A non-GAAP presentation of financial results that includes reclassifications related to credit card securitizations and taxable equivalents. Management uses this non-GAAP financial measure at the segment level because it believes this provides information to investors in understanding the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.

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

Mark-to-market exposure: A measure, at a point in time, of the value of a derivative or foreign exchange contract in the open market. When the mark-to-market value is positive, it indicates the counterparty owes JPMorgan Chase and, therefore, creates a repayment risk for the Firm. When the mark-to-market value is negative, JPMorgan Chase owes the counterparty. In this situation, the Firm does not have repayment risk.

Master netting agreement: An agreement between two counterparties that have multiple derivative contracts with each other that provides for the net settlement of all contracts through a single payment, in a single currency, in the event of default on or termination of any one contract. See FIN 39.

Merger: The July 1, 2004, merger with Bank One Corporation.

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

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

Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.

NM: Not meaningful.

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

Principal Transactions: Represents Trading revenue (which includes physical commodities carried at the lower of cost or fair value), 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.

SFAS: Statement of Financial Accounting Standards.

SFAS 123R: “Share-Based Payment.”

SFAS 140: “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities - a replacement of FASB Statement No. 125.”

SFAS 156: “Accounting for Servicing of Financial Assets - an amendment of FASB Statement No. 140.”

SFAS 157: “Fair Value Measurements.”

SFAS 159: “The Fair Value Option for Financial Assets and Financial Liabilities - Including an amendment of FASB Statement No. 115.”

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 with income tax expense.

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 thereon.

U.S. GAAP: Accounting principles generally accepted in the United States of America.

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

Page 32

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 product-specific experts who are licensed or specifically trained to assist in the sale of investments, mortgages, home equity lines and loans, and products tailored to small businesses.

NET MORTGAGE SERVICING REVENUE COMPRISES THE FOLLOWING:

1. Production income - Includes net gain or loss on sales of mortgage loans, and other production related fees.

2. Servicing revenue - Represents all revenues earned from servicing mortgage loans for third parties, including stated service fees, excess service fees, late fees, and other ancillary fees.

3. Changes in MSR asset fair value due to:

      — inputs or assumptions in the model - Represents MSR asset fair value adjustments due to changes in market-based inputs, such as interest rates and volatility, as well as updates to valuation assumptions used in the valuation model.

      — other changes - 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 assets. For the years ended December 31, 2005 and 2004, this amount represents MSR asset amortization expense calculated in accordance with SFAS 140.

4. Derivative valuation adjustments and other - Changes in the fair value of derivative instruments used to offset the impact of changes in market-based inputs to the MSR valuation model.

5. MSR risk management results - Includes “Changes in MSR asset fair value due to inputs or assumptions in model” and “Derivative valuation adjustments and other.”

Retail Financial Services (continued)

MORTGAGE BANKING’S ORIGINATION CHANNELS COMPRISE THE FOLLOWING:

1. Retail - Borrowers who are buying or refinancing a home work directly with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by 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 - Banks, thrifts, other mortgage banks and other financial institutions sell closed loans to the Firm.

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

Card Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN CARD SERVICES:

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

2. Net accounts opened - Includes originations, 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 merchants.

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

Page 33

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

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 advisory, equity underwriting, loan syndications, investment-grade debt, asset-backed securities, private placements, high-yield bonds, derivatives, foreign exchange hedges and securities sales.

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 the revenue related to investment banking products sold to CB clients.

Treasury & Securities Services

Treasury & Securities Services 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. Management reviews firmwide metrics such as liability balances, revenues and overhead ratios in assessing financial performance for TSS as such firmwide metrics capture the firmwide impact of TS’ and TSS’ products and services. Management believes such firmwide metrics are necessary 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 Management

Assets Under Management: Represent assets actively managed by Asset 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 44% 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.

AM’s CLIENT SEGMENTS COMPRISE THE FOLLOWING:

1. Institutional brings comprehensive global investment services — including asset management, pension analytics, asset-liability management and active risk budgeting strategies - to corporate and public institutions, endowments, foundations, not-for-profit organizations and governments worldwide.

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

3. 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.

4. Private Client Services offers high-net-worth individuals, families and business owners in the United States comprehensive wealth management solutions, including investment management, capital markets and risk management, tax and estate planning, banking, and specialty-wealth advisory services.

Page 34