8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

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

Date of Report (date of earliest event reported): October 17, 2007

JPMORGAN CHASE & CO.

(Exact name of registrant as specified in its charter)

Delaware	1-5805	13-2624428
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(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):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o 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 - THIRD QUARTER 2007 RESULTS
EX-99.2: EARNINGS RELEASE FINANCIAL SUPPLEMENT - THIRD QUARTER 2007

Item 2.02 Results of Operations and Financial Condition

On October 17, 2007, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2007 third quarter net income of $3.4 billion, or $0.97 per share, compared with net income of $3.3 billion, or $0.92 per share, for the third quarter of 2006. A copy of the 2007 third quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

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

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

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

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase’s results to differ materially from those described in the forward-looking statements can be found in the Firm’s Quarterly Reports on Form 10-Q for the quarters ended June 30, 2007 and March 31, 2007, and in the Annual Report on Form 10-K for the year ended December 31, 2006 (as amended), filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

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SIGNATURE

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

JPMORGAN CHASE & CO.
(Registrant)
By:	/s/ Louis Rauchenberger
	Louis Rauchenberger
Managing Director and Controller
[Principal Accounting Officer]

Dated: October 17, 2007

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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 — Third Quarter 2007 Results
99.2	JPMorgan Chase & Co. Earnings Release Financial Supplement — Third Quarter 2007

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EX-12.1

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges

Nine months ended September 30, (in millions, except ratios)	2007
Excluding Interest on Deposits
Income before income taxes	$	18,683
Fixed charges:
Interest expense		17,610
One-third of rents, net of income from subleases (a)		303
Total fixed charges		17,913
Less: Equity in undistributed income of affiliates		(121	)
Income before income taxes and fixed charges, excluding capitalized interest	$	36,475
Fixed charges, as above	$	17,913
Ratio of earnings to fixed charges		2.04
Including Interest on Deposits
Fixed charges, as above	$	17,913
Add: Interest on deposits		15,975
Total fixed charges and interest on deposits	$	33,888
Income before income taxes and fixed charges, excluding capitalized interest, as above	$	36,475
Add: Interest on deposits		15,975
Total income before income taxes, fixed charges and interest on deposits	$	52,450
Ratio of earnings to fixed charges		1.55

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

EX-99.1

Exhibit 99.1

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

www.jpmorganchase.com

News release: IMMEDIATE RELEASE

JPMORGAN CHASE REPORTS THIRD-QUARTER 2007 NET INCOME OF $3.4 BILLION; EARNINGS PER SHARE OF $0.97, UP 5% FROM THE PRIOR YEAR

• Investment Bank results declined, reflecting markdowns of $1.3 billion (net of fees) on leveraged lending funded and unfunded commitments and weaker trading performance

• Retail Financial Services delivered 18% revenue growth; however, earnings declined 14% affected by a net $306 million increase in reserves for home equity loans

• Record earnings and revenue generated by Asset Management and Treasury & Securities Services

• Card Services and Commercial Banking produced double-digit earnings growth; Private Equity posted strong results

• Wholesale deposit conversion and Card Services in-sourcing of processing platform successfully completed

• Capital remains strong, with Tier 1 capital ratio of 8.4% (estimated); wholesale and consumer loan loss reserves increased

New York, October 17, 2007 — JPMorgan Chase & Co. (NYSE: JPM) today reported 2007 third-quarter net income of $3.4 billion, up from $3.3 billion in the third quarter of 2006. Earnings per share of $0.97 were up 5%, compared with $0.92 per share in the third quarter of 2006.

Commenting on the quarter, Jamie Dimon, Chairman and Chief Executive Officer, said, “Our firm performed well overall in the third quarter, despite challenging credit and market conditions. Asset Management and Treasury & Securities Services delivered record earnings, Card Services and Commercial Banking produced double-digit earnings growth, and Private Equity posted another quarter of strong gains. Investment banking is a volatile business, and while we would typically expect lower earnings in the Investment Bank during a difficult market environment, such as this one, we still believe that our performance could have been a bit better. Finally, Retail Financial Services had good revenue growth while further strengthening its reserves for home equity loan losses.”

Remarking further, Dimon said, “It is gratifying that even in this challenging environment, the firm generated record revenue, net income and earnings per share for a third-quarter and year-to-date, while maintaining a fortress balance sheet and improving the infrastructure of the firm. During the quarter, we did not lose focus on becoming more efficient, as we successfully completed the in-sourcing of our credit card processing platform and our conversion of the wholesale deposit system. The wholesale conversion — the largest in the firm’s history and the last significant merger integration event — affected approximately $180 billion in customer balances.”

Discussing the firm’s outlook, Dimon said, “We are comfortable that we are building an increasingly strong company, which can capitalize on opportunities in any environment, due to actions taken over the past few years, including:

• Strengthening our levels of capital, reserves and liquidity.

• Investing in all our businesses, which has:

- strengthened the quality and diversity of earnings; and

- improved our operating systems, cost structure and operating margins.”

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

JPMorgan Chase & Co.
News Release

Dimon further added, “We remain cautious about the future economic environment, but will continue to make investments based upon the long-term outlook for market and client volumes. Our focus will be on investments in areas across our franchise, including the Investment Bank and the retail mortgage business, where we can wisely utilize our balance sheet to better serve our clients and gain market share in the process. I believe our firm is well positioned for the future.”

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 13).

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

INVESTMENT BANK (IB)

Results for IB							2Q07						3Q06
($ millions)	3Q07		2Q07		3Q06		$O/(U)			O/(U) %			$O/(U)			O/(U) %
Net Revenue	$	2,946	$	5,798	$	4,816		($2,852	)		(49	)%		($1,870	)		(39	)%
Provision for Credit Losses		227		164		7		63			38			220			NM
Noninterest Expense		2,378		3,854		3,244		(1,476	)		(38	)		(866	)		(27	)
Net Income	$	296	$	1,179	$	976		($883	)		(75	)%		($680	)		(70	)%

Discussion of Results:

Net income was $296 million, down by $680 million, or 70%, compared with the prior year. The decrease in earnings reflected lower net revenue as well as a higher provision for credit losses, partially offset by lower noninterest expense.

Net revenue was $2.9 billion, down by $1.9 billion, or 39%, from the prior year. Investment banking fees were $1.3 billion, down by 6% from the prior year, reflecting lower debt underwriting fees offset partially by record advisory fees. Debt underwriting fees were $468 million, down 34%, reflecting lower bond underwriting and loan syndication fees, which were negatively affected by market conditions. Advisory fees were $595 million, up 36%, driven by a strong performance across all regions. Equity underwriting fees were $267 million, down 3%, driven by lower revenue in Europe and Asia, partially offset by strong performance in the Americas in common stock and convertible offerings. Fixed Income Markets revenue was $687 million, down by $1.8 billion, or 72%, from the prior year. The decrease was primarily due to markdowns of $1.3 billion (net of fees) on leveraged lending funded and unfunded commitments and markdowns of $339 million (net of hedges) on collateralized debt obligation (CDO) warehouses and unsold positions. Fixed Income Markets revenue also decreased due to very weak credit trading performance and significantly lower commodities results, compared with a strong prior-year quarter. These lower results were offset partially by record revenue in both rates and currencies. Equity Markets revenue was $537 million, down 18% from the prior year, as weaker trading results were offset partially by strong client revenue across businesses. Fixed Income Markets and Equity Markets had a combined benefit of $454 million from the widening of the firm’s credit spread on certain structured liabilities, with an impact of $304 million and $150 million, respectively. Credit Portfolio revenue was $392 million, up 45% from the prior year, primarily due to higher trading revenue from hedging activities and gains from loan workouts.

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JPMorgan Chase & Co.
News Release

The provision for credit losses was $227 million, compared with $7 million in the prior year. The provision was up due to an increase in the allowance for credit losses, primarily related to portfolio growth. Net charge-offs were $67 million, compared with net recoveries of $8 million in the prior year. The allowance for loan losses to average loans retained was 1.80% for the current quarter, an increase from 1.64% in the prior year. Nonperforming assets were $325 million, down 29% from the prior year and up 173% from the prior quarter.

Average loans retained were $61.9 billion, up by $2.9 billion, or 5%, from the prior quarter. Average fair value and held-for-sale loans were $17.3 billion, up by $2.5 billion, or 17%, from the prior quarter. Fair value and held-for-sale loans at September 30, 2007, were $20.2 billion, up by $8.6 billion, or 76%, from the prior quarter. Both average and end-of-period fair value and held-for-sale loans reflect a net increase in third-quarter, 2007 leveraged lending activity.

Noninterest expense was $2.4 billion, down by $866 million, or 27%, from the prior year. The decrease was due primarily to lower performance-based compensation.

Highlights Include:

n	Ranked #1 in Global Equity and Equity-Related; #1 in Global Syndicated Loans; #4 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 September 30, 2007.
n	Return on equity was 6% on $21.0 billion of allocated capital.

RETAIL FINANCIAL SERVICES (RFS)

Results for RFS							2Q07						3Q06
($ millions)	3Q07		2Q07		3Q06		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	4,201	$	4,357	$	3,555		($156	)		(4	)%	$	646			18	%
Provision for Credit Losses		680		587		114		93			16			566			496
Noninterest Expense		2,469		2,484		2,139		(15	)		(1	)		330			15
Net Income	$	639	$	785	$	746		($146	)		(19	)%		($107	)		(14	)%

Discussion of Results:

Net income was $639 million, down by $107 million, or 14%, from the prior year, due to lower results in Regional Banking, primarily due to an increase in the provision for credit losses.

Net revenue was $4.2 billion, up by $646 million, or 18%, from the prior year. Net interest income was $2.7 billion, up by $224 million, or 9%, due to the Bank of New York transaction, wider spreads on loans and higher deposit balances. These benefits were offset partially by a shift to narrower—spread deposit products. Noninterest revenue was $1.5 billion, up by $422 million, or 38%, benefiting from the absence of a prior-year negative valuation adjustment to the MSR asset; increases in deposit-related fees; an increase in mortgage loan originations; a higher level of education loan sales; and increased mortgage loan servicing revenue. Noninterest revenue also benefited from the Bank of New York transaction and the classification of certain mortgage loan origination costs as expense (loan origination costs previously netted against revenue commenced being recorded as an expense in the first quarter

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JPMorgan Chase & Co.
News Release

of 2007 due to the adoption of SFAS 159 (“Fair Value Option”)). These benefits were offset partially by markdowns on the mortgage warehouse and pipeline.

The provision for credit losses was $680 million, compared with $114 million in the prior year. The current-quarter provision includes a net increase of $306 million in the allowance for loan losses related to home equity loans as continued weak housing prices have resulted in an increase in estimated losses for high loan-to-value loans. Home equity net charge-offs were $150 million (0.65% net charge-off rate), compared with $29 million (0.15% net charge-off rate) in the prior year. In addition, the current-quarter provision includes an increase in the allowance for loan losses, reflecting increased loan balances resulting from the decision to retain rather than sell subprime mortgage loans. Subprime mortgage net charge-offs were $40 million (1.62% net charge-off rate), compared with $13 million (0.36% net charge-off rate) in the prior year.

Noninterest expense was $2.5 billion, up by $330 million, or 15%, due to the Bank of New York transaction, the classification of certain loan origination costs as expense due to the adoption of SFAS 159, investments in the retail distribution network and an increase in loan originations in Mortgage Banking.

Regional Banking net income was $611 million, down by $133 million, or 18%, from the prior year. Net revenue was $3.3 billion, up by $376 million, or 13%, benefiting from the following: the Bank of New York transaction; increases in deposit-related fees; a higher level of education loan sales; growth in deposits and wider loan spreads. These benefits were offset partially by a shift to narrower—spread deposit products. The provision for credit losses was $574 million, compared with $53 million in the prior year. The increase in provision was due to the home equity and subprime mortgage portfolios (see Retail Financial Services discussion of provision for credit losses for further detail). Noninterest expense was $1.8 billion, up by $149 million, or 9%, from the prior year due to the Bank of New York transaction and investments in the retail distribution network.

Highlights Include:

n	Checking accounts totaled 10.6 million, up by 1.4 million, or 15%, from the prior year (including approximately 615,000 accounts acquired from The Bank of New York on October 1, 2006).
n	Average total deposits increased to $205.3 billion, up by $17.9 billion, or 10%, from the prior year (including approximately $11.5 billion of deposits acquired from The Bank of New York on October 1, 2006).
n	Average home equity loans of $91.8 billion were up from $78.8 billion in the prior year.
n	Business Banking loan originations of $1.7 billion were up 19% from the prior year.
n	Number of branches increased to 3,096, up by 419 from the prior year (including 339 acquired from The Bank of New York).
n	Branch sales of credit cards increased 59% from the prior year.
n	Branch sales of investment products increased 23% from the prior year.
n	Overhead ratio (excluding amortization of core deposit intangibles) decreased to 49% from 51% in the prior year.

Mortgage Banking net loss was $48 million, compared with a net loss of $83 million in the prior year. Net revenue was $406 million, up by $208 million. Net revenue comprises production revenue and net mortgage servicing revenue. Production revenue was $176

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JPMorgan Chase & Co.
News Release

million, down by $21 million, as markdowns of $186 million on the mortgage warehouse and pipeline were offset partially by an increase in mortgage loan originations and the classification of certain loan origination costs as expense (loan origination costs previously netted against revenue commenced being recorded as an expense in the first quarter of 2007 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 $230 million, compared with $1 million in the prior year. Loan servicing revenue of $629 million increased by $50 million on growth of 17% in third-party loans serviced. MSR risk management revenue of negative $22 million improved by $229 million, due primarily to the absence of a prior-year negative valuation adjustment of $235 million to the MSR asset. Other changes in fair value of the MSR asset, representing run-off of the asset against the realization of servicing cash flows, were negative $377 million, compared with negative $327 million in the prior year. Noninterest expense was $485 million, up by $151 million, or 45%. The increase reflected the classification of certain loan origination costs due to the adoption of SFAS 159, and higher compensation expense, the result of higher loan originations and a greater number of loan officers.

Highlights Include:

n	Mortgage loan originations were $39.2 billion, up by 35%, from the prior year and down 11% from the prior quarter.
n	Total third-party mortgage loans serviced were $600.0 billion, an increase of $89.3 billion, or 17%, from the prior year.

Auto Finance net income was $76 million, down by $9 million, or 11%, from the prior year. Net revenue was $447 million, up by $52 million, or 13%, reflecting higher automobile operating lease revenue and wider loan spreads. The provision for credit losses was $96 million, an increase of $35 million, reflecting an increase in estimated losses from low prior-year levels. Noninterest expense of $224 million increased by $30 million, or 15%, driven by increased depreciation expense on owned automobiles subject to operating leases.

Highlights Include:

n	Auto loan originations were $5.2 billion, down by 5%, compared with the prior year.
n	Average loan receivables were $39.9 billion, up by 3%, compared with the prior year.
n	The net charge-off ratio increased to 0.97% from 0.64% in the prior year.

CARD SERVICES (CS)

Results for CS							2Q07					3Q06
($ millions)	3Q07		2Q07		3Q06		$ O/(U)		O/(U) %			$ O/(U)		O/(U) %
Net Revenue	$	3,867	$	3,717	$	3,646	$	150		4	%	$	221		6	%
Provision for Credit Losses		1,363		1,331		1,270		32		2			93		7
Noninterest Expense		1,262		1,188		1,253		74		6			9		1
Net Income	$	786	$	759	$	711	$	27		4	%	$	75		11	%

Discussion of Results:

Net income was $786 million, up by $75 million, or 11%, from the prior year. Earnings benefited from higher revenue offset partially by an increase in the provision for credit losses.

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JPMorgan Chase & Co.
News Release

End-of-period managed loans of $149.1 billion increased by $5.2 billion, or 4%, from the prior year and by $1.1 billion, or 1%, from the prior quarter. Average managed loans of $148.7 billion increased by $7.0 billion, or 5%, from the prior year and by $1.2 billion, or 1%, from the prior quarter. Both end-of-period and average managed loans benefited from organic growth.

Net managed revenue was $3.9 billion, up by $221 million, or 6%, from the prior year. Net interest income was $3.1 billion, up by $224 million, or 8%, from the prior year. The increase in net interest income was driven by an increased level of fees and higher average loan balances. These benefits were offset partially by the discontinuation of certain billing practices (including the elimination of certain over-limit fees and the two-cycle billing method for calculating finance charges) and a narrower loan spread. Noninterest revenue was $759 million, flat compared with the prior year. Increased net interchange income, which benefited from higher charge volume, was offset by lower net securitization gains. Charge volume growth of 3% reflects an approximate 10% growth rate in sales volume, offset primarily by a lower level of balance transfers, the result of a more targeted marketing effort.

The managed provision for credit losses was $1.4 billion, up by $93 million, or 7%, from the prior year due to a higher level of net charge-offs. Credit quality was stable in the quarter, with a managed net charge-off rate for the quarter of 3.64%, up from 3.58% in the prior year and 3.62% in the prior quarter. The 30-day managed delinquency rate was 3.25%, up from 3.17% in the prior year and 3.00% in the prior quarter.

Noninterest expense was $1.3 billion, up by $9 million, or 1%, compared with the prior year, primarily due to higher volume-related expense. Compared with the prior quarter, noninterest expense increased by $74 million, or 6%, reflecting higher marketing spend.

Highlights Include:

n	Return on equity was 22%, up from 20% in the prior year and flat compared with the prior quarter.
n	Pretax income to average managed loans (ROO) was 3.31%, up from 3.14% in the prior year and 3.26% in the prior quarter.
n	Net interest income as a percentage of average managed loans was 8.29%, up from 8.07% in the prior year and 8.04% in the prior quarter.
n	Net accounts of 4.0 million were opened during the quarter.
n	Charge volume was $89.8 billion, an increase of $2.3 billion, or 3%, from the prior year.
n	Merchant processing volume was $181.4 billion, an increase of $12.7 billion, or 8%, and total transactions were 5.0 billion, an increase of 393 million, or 9%, from the prior year.
n	Card Services processing platform was successfully in-sourced.
n	Chase Freedom Card was enhanced to offer more rewards to customers, including the only triple-rewards program driven by individual customer spending preferences.

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JPMorgan Chase & Co.
News Release

COMMERCIAL BANKING (CB)

Results for CB							2Q07						3Q06
($ millions)	3Q07		2Q07		3Q06		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	1,009	$	1,007	$	933	$	2			—	%	$	76			8	%
Provision for Credit Losses		112		45		54		67			149			58			107
Noninterest Expense		473		496		500		(23	)		(5	)		(27	)		(5	)
Net Income	$	258	$	284	$	231		($26	)		(9	)%	$	27			12	%

Discussion of Results:

Net income was $258 million, up by $27 million, or 12%, from the prior year. The increase was driven by growth in net revenue and lower noninterest expense, offset primarily by a higher provision for credit losses.

Net revenue was $1.0 billion, up by $76 million, or 8%, from the prior year. Net interest income was $719 million, up by $42 million, or 6%. The increase was driven by double-digit growth in liability and loan balances, reflecting organic growth and the Bank of New York transaction, partially offset by a continued shift to narrower—spread liability products and spread compression in the loan and liability portfolios. Noninterest revenue was $290 million, up by $34 million, or 13%, primarily due to higher deposit-related fees and other income.

Middle Market Banking revenue was $680 million, an increase of $63 million, or 10%, from the prior year, due to the Bank of New York transaction, higher deposit-related fees, and growth in investment banking revenue. Mid-Corporate Banking revenue was $167 million, an increase of $7 million, or 4%. Real Estate Banking revenue was $108 million, a decrease of $11 million, or 9%.

The provision for credit losses was $112 million, compared with $54 million in the prior year. The current-quarter provision largely reflects portfolio activity and growth in loan balances. The allowance for loan losses to average loans retained was 2.67% for the current quarter, which decreased from 2.70% in the prior year and increased from 2.63% in the prior quarter. Nonperforming loans were $134 million, down 15% from the prior year and down 1% from the prior quarter. The net charge-off (recovery) rate was 0.13% in the current quarter compared with 0.16% in the prior year and (0.05)% in the prior quarter.

Noninterest expense was $473 million, down by $27 million, or 5%, from the prior year, as lower performance-based compensation expense was offset partially by higher volume-related expense.

Highlights Include:

n	Overhead ratio was 47%, an improvement from 54% in the prior year.
n	Gross investment banking revenue (which is shared with the Investment Bank) was $194 million, up by $24 million, or 14%, from the prior year.
n	Average loan balances were $61.3 billion, up by $7.9 billion, or 15%, from the prior year and up by $1.5 billion, or 2%, from the prior quarter.
n	Average liability balances were $88.1 billion, up by $16.1 billion, or 22%, from the prior year and up by $3.9 billion, or 5%, from the prior quarter.

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JPMorgan Chase & Co.
News Release

TREASURY & SECURITIES SERVICES (TSS)

Results for TSS							2Q07						3Q06
($ millions)	3Q07		2Q07		3Q06		$ O/(U)			O/(U) %			$ O/(U)		O/(U) %
Net Revenue	$	1,748	$	1,741	$	1,499	$	7			—	%	$	249		17	%
Provision for Credit Losses		9		—		1		9			NM			8		NM
Noninterest Expense		1,134		1,149		1,064		(15	)		(1	)		70		7
Net Income	$	360	$	352	$	256	$	8			2	%	$	104		41	%

Discussion of Results:

Net income was a record $360 million, up by $104 million, or 41%, from the prior year, driven by record revenue offset partially by higher noninterest expense. Net income was up by $8 million, or 2%, from the prior quarter. The prior quarter benefited from seasonally strong activity in securities lending and depositary receipts.

Net revenue was $1.7 billion, up by $249 million, or 17%, from the prior year. Worldwide Securities Services net revenue of $968 million was up by $166 million, or 21%. The growth was driven by increased product usage by new and existing clients and market appreciation, partially offset by spread compression and a shift to narrower-spread liability products. Treasury Services net revenue of $780 million was up by $83 million, or 12%, driven by growth in electronic volumes and higher liability balances. These benefits were offset partially by a continued shift to narrower-spread liability products. TSS firmwide net revenue, which includes Treasury Services net revenue recorded in other lines of business, grew to $2.4 billion, up by $308 million, or 15%. Treasury Services firmwide net revenue grew to $1.4 billion, up by $142 million, or 11%.

Noninterest expense was $1.1 billion, up by $70 million, or 7%, from the prior year. The increase was due to higher expense related to business and volume growth, as well as investment in new product platforms.

Highlights Include:

n	TSS pretax margin(2) was 33%, up from 32% in the prior quarter and 27% in the prior year.
n	Average liability balances were $236.4 billion, up by 23% from the prior year.
n	Assets under custody increased to $15.6 trillion, up by 21% from the prior year.
n	Completed the National Deposit System (NDS) conversion to a single U.S. dollar deposit platform, the firm’s largest migration to date — almost $180 billion in balances and nearly $10 trillion in daily transactions.
n	Announced the rollout of enhanced euro payments services.
n	New client relationships included:

- Chosen by Financial Risk Management to provide securities processing for more than $10 billion of assets in fund-of-hedge funds portfolios;

- Maintained leadership position as depositary receipt bank in China, including adding new business from E-House Holding and WuXi PharmaTech during the quarter;

- Selected by the Washington State Investment Board to provide securities processing services for $82 billion of assets; and

8

JPMorgan Chase & Co.
News Release

- Named OCBC Bank’s trade processing partner, responsible for processing import and export transactions on behalf of the OCBC’s overseas branches in eight locations.

ASSET MANAGEMENT (AM)

Results for AM									2Q07					3Q06
($ millions)	3Q07		2Q07			3Q06			$ O/(U)		O/(U) %			$ O/(U)		O/(U) %
Net Revenue	$	2,205	$	2,137		$	1,636		$	68		3	%	$	569		35	%
Provision for Credit Losses		3		(11	)		(28	)		14		NM			31		NM
Noninterest Expense		1,366		1,355			1,115			11		1			251		23
Net Income	$	521	$	493		$	346		$	28		6	%	$	175		51	%

Discussion of Results:

Net income was a record $521 million, up by $175 million, or 51%, from the prior year. Results benefited from record net revenue offset partially by higher noninterest expense.

Net revenue was $2.2 billion, up by $569 million, or 35%, from the prior year. Noninterest revenue, primarily fees and commissions, was $1.9 billion, up by $507 million, or 36%. This result was due largely to increased assets under management and higher performance and placement fees. Net interest income was $293 million, up by $62 million, or 27%, from the prior year, largely due to higher deposit and loan balances and wider deposit spreads.

Private Bank revenue grew 46%, to $686 million, due to higher asset management and placement fees, increased loan and deposit balances, and wider deposit spreads. Retail revenue grew 40%, to $639 million, primarily due to market appreciation and net asset inflows. Institutional revenue grew 30%, to $603 million, due to net asset inflows and performance fees. Private Client Services revenue grew 12%, to $277 million, due to increased revenue from higher assets under management and higher deposit balances.

Assets under supervision were $1.5 trillion, up 22%, or $274 billion, from the prior year. Assets under management were $1.2 trillion, up 24%, or $228 billion, from the prior year. The increase was the result of net asset inflows into the Institutional segment, primarily in liquidity and alternative products; the Retail segment, primarily fixed income, equity and alternative products; the Private Bank segment, primarily in liquidity and alternative products; and from market appreciation. Custody, brokerage, administration and deposit balances were $376 billion, up by $46 billion.

The provision for credit losses was $3 million, compared with a benefit of $28 million in the prior year, reflecting a higher level of recoveries in the prior year.

Noninterest expense was $1.4 billion, up by $251 million, or 23%, from the prior year. The increase was due largely to higher compensation, primarily performance-based, and investments in all business segments.

Highlights Include:

n	Pretax margin(2) was 38%, up from 34% in the prior year.
n	Assets under management were $1.2 trillion, up 24%, or $228 billion, from the prior year, including growth of 31%, or $28 billion, in alternative assets.

9

JPMorgan Chase & Co.
News Release

n	Assets under management net inflows were $33 billion for the third quarter of 2007, and $112 billion for the prior twelve-month period.
n	Assets under management that ranked in the top two quartiles for investment performance were 76% over five years, 73% over three years, and 47% over one year.
n	Customer assets in 4 and 5 Star rated funds were 55%.
n	Average loans of $30.9 billion were up by $4.2 billion, or 16%, from the prior year.
n	Average deposits of $59.9 billion were up by $8.5 billion, or 17%, from the prior year.

CORPORATE

Results for Corporate									2Q07						3Q06
($ millions)	3Q07			2Q07		3Q06			$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	1,001		$	1,062	$	289			($61	)		(6	)%	$	712			246	%
Provision for Credit Losses		(31	)		3		1			(34	)		NM			(32	)		NM
Noninterest Expense		245			502		481			(257	)		(51	)		(236	)		(49	)
Income (Loss) from Continuing Operations		513			382		(34	)		131			34			547			NM
Income from Discontinued Operations (after-tax) (a)		—			—		65			—			—			(65	)		NM
Net Income	$	513		$	382	$	31		$	131			34	%	$	482			NM

(a) Discontinued operations include the 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) above)}

Net income was $513 million, compared with $31 million in the prior year, benefiting from increased net revenue and lower noninterest expense. Prior-year results also included net income from discontinued operations of $65 million.

Net revenue was $1.0 billion, compared with $289 million in the prior year. The increase was driven by Private Equity gains of $766 million, compared with $226 million, reflecting a higher level of gains and the classification of certain private equity carried interest as compensation expense. Net revenue also increased due to higher trading-related gains and a $115 million gain from the sale of MasterCard shares. The increase in revenue was offset partially by a narrower net interest spread.

Noninterest expense was $245 million, down by $236 million from the prior year. The decrease was driven by lower compensation expense and continuing business efficiencies. Partially offsetting the benefit of lower expense was the impact of the classification of certain private equity carried interest as compensation expense.

Highlights Include:

n Private Equity portfolio was $6.6 billion, up from $5.6 billion in the prior year and $6.5 billion in the prior quarter. The portfolio represented 8.8% of stockholders’ equity less goodwill, up from 8.0% in the prior year and unchanged from the prior quarter.

10

JPMorgan Chase & Co.
News Release

JPMORGAN CHASE (JPM)^(a)

Results for JPM							2Q07						3Q06
($ millions)	3Q07		2Q07		3Q06		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue (a)	$	16,977	$	19,819	$	16,374		($2,842	)		(14	)%	$	603			4	%
Provision for Credit Losses(a)		2,363		2,119		1,419		244			12			944			67
Noninterest Expense		9,327		11,028		9,796		(1,701	)		(15	)		(469	)		(5	)
Income from Continuing Operations		3,373		4,234		3,232		(861	)		(20	)		141			4
Income from Discontinued Operations (after-tax)(b)		—		—		65		—			NM			(65	)		NM
Net Income	$	3,373	$	4,234	$	3,297		($861	)		(20	)%	$	76			2	%

(a) Presented on a managed basis; see Note 1 (Page 13) for further explanation of managed basis. Net revenue on a GAAP basis was $16,112 million, $18,908 million and $15,545 million for the third quarter of 2007, second quarter of 2007 and third quarter of 2006, respectively.

(b) Discontinued operations include the 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 a record $3.4 billion, up by $76 million from the prior year. The increase in earnings was driven by record net managed revenue and lower noninterest expense, largely offset by higher managed provision for credit loss.

Net managed revenue was $17.0 billion, up by $603 million, or 4%, from the prior year. Noninterest revenue of $8.1 billion was down by $1.5 billion, or 15%, reflecting markdowns on leveraged lending funded and unfunded commitments and lower fixed income trading results. These decreases were offset partially by increased asset management, administration, and commissions revenue, which benefited from a higher level of assets under management and by strong private equity gains. Net interest income was $8.8 billion, up by $2.1 billion, or 31%, due to trading net interest income; growth in liability and deposit balances, primarily in the wholesale businesses; a higher level of credit card loans and fees; and the impact of the Bank of New York transaction. These increases were offset partially by a narrower net interest spread in the Corporate segment and a shift to narrower—spread deposit products.

The managed provision for credit losses was $2.4 billion, up by $944 million, or 67%, from the prior year. The wholesale provision for credit losses was $351 million, compared with $35 million, reflecting an increase in the allowance for credit losses, primarily related to portfolio growth. Wholesale net charge-offs were $82 million, compared with net recoveries of $11 million, resulting in net charge-off rates of 0.18% and (0.03)%, respectively. The total consumer managed provision for credit losses was $2.0 billion, compared with $1.4 billion in the prior year, reflecting an increase in the allowance for credit losses, largely related to home equity loans, and higher net charge-offs. Consumer managed net charge-offs were $1.7 billion, compared with $1.4 billion, resulting in managed net charge-off rates of 1.96% and 1.69%, respectively. The firm had total nonperforming assets of $3.2 billion at September 30, 2007, up by $881 million, or 38%, from the prior-year level of $2.3 billion.

11

JPMorgan Chase & Co.
News Release

Noninterest expense was $9.3 billion, down by $469 million, or 5%, from the prior year. Expense decreased due to lower compensation expense, primarily performance-based, partially offset by investments across businesses and acquisitions.

Highlights Include:

n	Tier 1 capital ratio was 8.4% at September 30, 2007 (estimated), 8.4% at June 30, 2007, and 8.6% at September 30, 2006.
n	During the quarter, $2.1 billion of common stock was repurchased, reflecting 47.0 million shares purchased at an average price of $45.42 per share.
n	Headcount of 179,847 increased by 8,258 since September 30, 2006.

12

JPMorgan Chase & Co.
News Release

Other financial information

• Merger savings and cost: For the quarter ended September 30, 2007, approximately $740 million of merger savings have been realized, an annualized rate of $2.96 billion. Management estimates that annualized savings will be approximately $3.0 billion by the end of 2007. Merger costs of $61 million were expensed during the third quarter of 2007, bringing the total amount of merger costs incurred to $3.7 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.

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 (third 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 that management uses to evaluate the performance of TSS and AM against the performance of competitors.

13

JPMorgan Chase & Co.
News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.5 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 third-quarter financial results. Investors can call (888) 802-2239 (domestic) / (913) 312-1269 (international), or listen via live audio webcast. The live audio webcast and presentation slides will be available on www.jpmorganchase.com under Investor Relations, Investor Presentations. A replay of the conference call will be available beginning at 1:00 p.m. (Eastern Time) on October 17, 2007, through midnight, Wednesday, October 31, 2007 (Eastern Time), at (888) 203-1112 (domestic) or (719) 457-0820 (international) with the access code 4964528. The replay also will be available on www.jpmorganchase.com. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available on the JPMorgan Chase Internet site www.jpmorganchase.com.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase’s results to differ materially from those described in the forward-looking statements can be found in the firm’s Quarterly Reports on Form 10-Q for the quarters ended June 30, 2007 and March 31, 2007, and in the Annual Report on Form 10-K for the year ended December 31, 2006 (as amended), filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

14

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

	QUARTERLY TRENDS															YEAR-TO-DATE
										3Q07 Change												2007 Change
	3Q07			2Q07			3Q06			2Q07			3Q06			2007			2006			2006
SELECTED INCOME STATEMENT DATA
Total Net Revenue (a)	$	16,112		$	18,908		$	15,545			(15	)%		4	%	$	53,988		$	45,806			18	%
Provision for Credit Losses		1,785			1,529			812			17			120			4,322			2,136			102
Total Noninterest Expense		9,327			11,028			9,796			(15	)		(5	)		30,983			28,958			7
Income from Continuing Operations (after-tax)		3,373			4,234			3,232			(20	)		4			12,394			9,743			27
Income from Discontinued Operations (after-tax) (b)		—			—			65			—			NM			—			175			NM
Net Income		3,373			4,234			3,297			(20	)		2			12,394			9,918			25
PER COMMON SHARE:
Basic Earnings
Income from Continuing Operations	$	1.00		$	1.24		$	0.93			(19	)		8		$	3.63		$	2.81			29
Net Income		1.00			1.24			0.95			(19	)		5			3.63			2.86			27
Diluted Earnings
Income from Continuing Operations	$	0.97		$	1.20		$	0.90			(19	)		8		$	3.52		$	2.73			29
Net Income		0.97			1.20			0.92			(19	)		5			3.52			2.78			27
Cash Dividends Declared		0.38			0.38			0.34			—			12			1.10			1.02			8
Book Value		35.72			35.08			32.75			2			9			35.72			32.75			9
Closing Share Price		45.82			48.45			46.96			(5	)		(2	)		45.82			46.96			(2	)
Market Capitalization		153,901			164,659			162,835			(7	)		(5	)		153,901			162,835			(5	)
COMMON SHARES OUTSTANDING:
Weighted-Average Diluted Shares Outstanding		3,477.7	#		3,521.6	#		3,574.0	#		(1	)		(3	)		3,519.6	#		3,572.3	#		(1	)
Common Shares Outstanding at Period-end		3,358.8			3,398.5			3,467.5			(1	)		(3	)		3,358.8			3,467.5			(3	)
FINANCIAL RATIOS: (c)
Income from Continuing Operations:
Return on Common Equity (“ROE”)		11	%		14	%		11	%								14	%		12	%
Return on Equity-Goodwill (“ROE-GW”) (d)		18			23			19									23			20
Return on Assets (“ROA”) (e)		0.91			1.19			0.98									1.16			1.02
Net Income:
ROE		11			14			12									14			12
ROE-GW (d)		18			23			19									23			20
ROA (f)		0.91			1.19			1.00									1.16			1.02
CAPITAL RATIOS:
Tier 1 Capital Ratio		8.4	(g)		8.4			8.6
Total Capital Ratio		12.5	(g)		12.0			12.1
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,479,575		$	1,458,042		$	1,338,029			1			11		$	1,479,575		$	1,338,029			11
Wholesale Loans		197,728			181,968			179,403			9			10			197,728			179,403			10
Consumer Loans		288,592			283,069			284,141			2			2			288,592			284,141			2
Deposits		678,091			651,370			582,115			4			16			678,091			582,115			16
Common Stockholders’ Equity		119,978			119,211			113,561			1			6			119,978			113,561			6
Headcount		179,847	#		179,664	#		171,589	#		—			5			179,847	#		171,589	#		5
LINE OF BUSINESS EARNINGS
Investment Bank	$	296		$	1,179		$	976			(75	)		(70	)	$	3,015		$	2,665			13
Retail Financial Services		639			785			746			(19	)		(14	)		2,283			2,495			(8	)
Card Services		786			759			711			4			11			2,310			2,487			(7	)
Commercial Banking		258			284			231			(9	)		12			846			754			12
Treasury & Securities Services		360			352			256			2			41			975			834			17
Asset Management		521			493			346			6			51			1,439			1,002			44
Corporate		513			382			31			34			NM			1,526			(319	)		NM
Net Income	$	3,373		$	4,234		$	3,297			(20	)		2		$	12,394		$	9,918			25

(a)	The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see Note 3 of the Firm’s June 30, 2007, Form 10-Q.
(b)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses 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 reported as discontinued operations for each 2006 period.
(c)	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)	Estimated.

15

EX-99.2

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD 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																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
SELECTED INCOME STATEMENT DATA
Total Net Revenue (a)	$	16,112		$	18,908		$	18,968		$	16,193		$	15,545			(15	)%		4	%	$	53,988		$	45,806			18	%
Provision for Credit Losses		1,785			1,529			1,008			1,134			812			17			120			4,322			2,136			102
Total Noninterest Expense		9,327			11,028			10,628			9,885			9,796			(15	)		(5	)		30,983			28,958			7
Income from Continuing Operations (after-tax)		3,373			4,234			4,787			3,906			3,232			(20	)		4			12,394			9,743			27
Income from Discontinued Operations (after-tax) (b)		–			–			–			620			65			–		NM				–			175		NM
Net Income		3,373			4,234			4,787			4,526			3,297			(20	)		2			12,394			9,918			25
PER COMMON SHARE:
Basic Earnings
Income from Continuing Operations	$	1.00		$	1.24		$	1.38		$	1.13		$	0.93			(19	)		8		$	3.63		$	2.81			29
Net Income		1.00			1.24			1.38			1.31			0.95			(19	)		5			3.63			2.86			27
Diluted Earnings
Income from Continuing Operations	$	0.97		$	1.20		$	1.34		$	1.09		$	0.90			(19	)		8		$	3.52		$	2.73			29
Net Income		0.97			1.20			1.34			1.26			0.92			(19	)		5			3.52			2.78			27
Cash Dividends Declared		0.38			0.38			0.34			0.34			0.34			–			12			1.10			1.02			8
Book Value		35.72			35.08			34.45			33.45			32.75			2			9			35.72			32.75			9
Closing Share Price		45.82			48.45			48.38			48.30			46.96			(5	)		(2	)		45.82			46.96			(2	)
Market Capitalization		153,901			164,659			165,280			167,199			162,835			(7	)		(5	)		153,901			162,835			(5	)
COMMON SHARES OUTSTANDING:
Weighted-Average Diluted Shares Outstanding		3,477.7	#		3,521.6	#		3,559.5	#		3,578.6	#		3,574.0	#		(1	)		(3	)		3,519.6	#		3,572.3	#		(1	)
Common Shares Outstanding at Period-end		3,358.8			3,398.5			3,416.3			3,461.7			3,467.5			(1	)		(3	)		3,358.8			3,467.5			(3	)
FINANCIAL RATIOS: (c)
Income from Continuing Operations:
Return on Common Equity (“ROE”)		11	%		14	%		17	%		14	%		11	%								14	%		12	%
Return on Equity-Goodwill (“ROE-GW”) (d)		18			23			27			22			19									23			20
Return on Assets (“ROA”) (e)		0.91			1.19			1.41			1.14			0.98									1.16			1.02
Net Income:
ROE		11			14			17			16			12									14			12
ROE-GW (d)		18			23			27			26			19									23			20
ROA (f)		0.91			1.19			1.41			1.32			1.00									1.16			1.02
CAPITAL RATIOS:
Tier 1 Capital Ratio		8.4	(h)		8.4			8.5			8.7			8.6
Total Capital Ratio		12.5	(h)		12.0			11.8			12.3			12.1
SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,479,575		$	1,458,042		$	1,408,918		$	1,351,520		$	1,338,029			1			11		$	1,479,575		$	1,338,029			11
Wholesale Loans		197,728			181,968			168,194			183,742			179,403			9			10			197,728			179,403			10
Consumer Loans		288,592			283,069			281,571			299,385			284,141			2			2			288,592			284,141			2
Deposits		678,091			651,370			626,428			638,788			582,115			4			16			678,091			582,115			16
Common Stockholders’ Equity		119,978			119,211			117,704			115,790			113,561			1			6			119,978			113,561			6
Headcount		179,847	#		179,664	#		176,314	#		174,360	#		171,589	#		–			5			179,847	#		171,589	#		5
LINE OF BUSINESS EARNINGS
Investment Bank	$	296		$	1,179		$	1,540		$	1,009		$	976			(75	)		(70	)	$	3,015		$	2,665			13
Retail Financial Services		639			785			859			718			746			(19	)		(14	)		2,283			2,495			(8	)
Card Services		786			759			765			719			711			4			11			2,310			2,487			(7	)
Commercial Banking		258			284			304			256			231			(9	)		12			846			754			12
Treasury & Securities Services		360			352			263			256			256			2			41			975			834			17
Asset Management		521			493			425			407			346			6			51			1,439			1,002			44
Corporate (g)		513			382			631			1,161			31			34		NM				1,526			(319	)	NM
Net Income	$	3,373		$	4,234		$	4,787		$	4,526		$	3,297			(20	)		2		$	12,394		$	9,918			25

(a)	The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see Note 3 of the Firm’s June 30, 2007, Form 10-Q.
(b)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses 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 reported as discontinued operations for each 2006 period.
(c)	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)	Included the after-tax impact of discontinued operations, recoveries related to material litigation actions, tax audit benefits and merger costs. See Corporate Financial Highlights for additional details.
(h)	Estimated.

Page 2

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
REVENUE
Investment Banking Fees	$	1,336		$	1,898		$	1,739		$	1,565		$	1,416			(30	)%		(6	)%	$	4,973		$	3,955			26	%
Principal Transactions (a)		237			3,566			4,471			2,591			2,737			(93	)		(91	)		8,274			8,187			1
Lending & Deposit Related Fees		1,026			951			895			895			867			8			18			2,872			2,573			12
Asset Management, Administration and Commissions		3,663			3,611			3,186			3,173			2,842			1			29			10,460			8,682			20
Securities Gains (Losses)		237			(223	)		2			35			40		NM				493			16			(578	)	NM
Mortgage Fees and Related Income (b)		221			523			476			75			62			(58	)		256			1,220			516			136
Credit Card Income		1,777			1,714			1,563			1,645			1,567			4			13			5,054			5,268			(4	)
Other Income		289			553			518			522			635			(48	)		(54	)		1,360			1,653			(18	)
Noninterest Revenue		8,786			12,593			12,850			10,501			10,166			(30	)		(14	)		34,229			30,256			13
Interest Income		19,219			17,489			16,636			16,097			15,157			10			27			53,344			43,010			24
Interest Expense		11,893			11,174			10,518			10,405			9,778			6			22			33,585			27,460			22
Net Interest Income		7,326			6,315			6,118			5,692			5,379			16			36			19,759			15,550			27
TOTAL NET REVENUE		16,112			18,908			18,968			16,193			15,545			(15	)		4			53,988			45,806			18
Provision for Credit Losses		1,785			1,529			1,008			1,134			812			17			120			4,322			2,136			102
NONINTEREST EXPENSE
Compensation Expense		4,677			6,309			6,234			4,985			5,390			(26	)		(13	)		17,220			16,206			6
Occupancy Expense		657			652			640			625			563			1			17			1,949			1,710			14
Technology, Communications and Equipment Expense		950			921			922			997			911			3			4			2,793			2,656			5
Professional & Outside Services		1,260			1,259			1,200			1,246			1,111			–			13			3,719			3,204			16
Marketing		561			457			482			614			550			23			2			1,500			1,595			(6	)
Other Expense (c)		812			1,013			735			948			877			(20	)		(7	)		2,560			2,324			10
Amortization of Intangibles		349			353			353			370			346			(1	)		1			1,055			1,058			–
Merger Costs		61			64			62			100			48			(5	)		27			187			205			(9	)
TOTAL NONINTEREST EXPENSE		9,327			11,028			10,628			9,885			9,796			(15	)		(5	)		30,983			28,958			7
Income from Continuing Operations before Income Tax Expense		5,000			6,351			7,332			5,174			4,937			(21	)		1			18,683			14,712			27
Income Tax Expense		1,627			2,117			2,545			1,268			1,705			(23	)		(5	)		6,289			4,969			27
Income from Continuing Operations (after-tax)		3,373			4,234			4,787			3,906			3,232			(20	)		4			12,394			9,743			27
Income from Discontinued Operations (after-tax) (d)		–			–			–			620			65			–		NM				–			175		NM
NET INCOME	$	3,373		$	4,234		$	4,787		$	4,526		$	3,297			(20	)		2		$	12,394		$	9,918			25
DILUTED EARNINGS PER SHARE
Income from Continuing Operations (after-tax)	$	0.97		$	1.20		$	1.34		$	1.09		$	0.90			(19	)		8		$	3.52		$	2.73			29
Income from Discontinued Operations (after-tax) (d)		–			–			–			0.17			0.02			–		NM				–			0.05		NM
Net Income	$	0.97		$	1.20		$	1.34		$	1.26		$	0.92			(19	)		5		$	3.52		$	2.78			27
FINANCIAL RATIOS
Income from Continuing Operations:
ROE		11	%		14	%		17	%		14	%		11	%								14	%		12	%
ROE-GW		18			23			27			22			19									23			20
ROA		0.91			1.19			1.41			1.14			0.98									1.16			1.02
Net Income:
ROE		11			14			17			16			12									14			12
ROE-GW		18			23			27			26			19									23			20
ROA		0.91			1.19			1.41			1.32			1.00									1.16			1.02
Effective Income Tax Rate (e)		33			33			35			25			35									34			34
Overhead Ratio		58			58			56			61			63									57			63
EXCLUDING IMPACT OF MERGER COSTS (f)
Income from Continuing Operations	$	3,373		$	4,234		$	4,787		$	3,906		$	3,232			(20	)		4		$	12,394		$	9,743			27
Less Merger Costs (after-tax)		38			40			38			62			30			(5	)		27			116			127			(9	)
Income from Continuing Operations Excluding Merger Costs	$	3,411		$	4,274		$	4,825		$	3,968		$	3,262			(20	)		5		$	12,510		$	9,870			27
Diluted Per Share:
Income from Continuing Operations	$	0.97		$	1.20		$	1.34		$	1.09		$	0.90			(19	)		8		$	3.52		$	2.73			29
Less Merger Costs (after-tax)		0.01			0.01			0.01			0.02			0.01			–			–			0.03			0.03			–
Income from Continuing Operations Excluding Merger Costs	$	0.98		$	1.21		$	1.35		$	1.11		$	0.91			(19	)		8		$	3.55		$	2.76			29

(a)	The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see Note 3 of the Firm’s June 30, 2007, Form 10-Q.
(b)	The Firm adopted SFAS 159 in the first quarter of 2007. As a result, certain loan origination costs have been classified as expense (previously netted against revenue) for the current-year quarters and nine months ended September 30, 2007.
(c)	Insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material legal proceedings were $137 million and $17 million for the three months ended December 31, 2006 and September 30, 2006, respectively. Year-to-date insurance recoveries were $375 million for 2006.
(d)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses 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 were reported as discontinued operations for each 2006 period.
(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)

																Sep 30, 2007
																Change
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30
	2007			2007			2007			2006			2006			2007			2006
ASSETS
Cash and Due from Banks	$	32,766		$	35,449		$	31,836		$	40,412		$	36,279			(8	)%		(10	)%
Deposits with Banks		26,714			41,736			30,973			13,547			17,130			(36	)		56
Federal Funds Sold and Securities Purchased under Resale Agreements		135,589			125,930			144,306			140,524			156,194			8			(13	)
Securities Borrowed		84,697			88,360			84,800			73,688			89,222			(4	)		(5	)
Trading Assets:
Debt and Equity Instruments		389,119			391,508			373,684			310,137			289,891			(1	)		34
Derivative Receivables		64,592			59,038			49,647			55,601			58,265			9			11
Securities		97,706			95,984			97,029			91,975			86,548			2			13
Loans (Net of Allowance for Loan Losses)		478,207			457,404			442,465			475,848			456,488			5			5
Private Equity Investments		6,929			6,898			6,788			6,359			5,905			–			17
Accrued Interest and Accounts Receivable		26,401			26,716			23,663			22,891			21,178			(1	)		25
Premises and Equipment		8,892			9,044			8,728			8,735			8,553			(2	)		4
Goodwill		45,335			45,254			45,063			45,186			43,372			–			5
Other Intangible Assets:
Mortgage Servicing Rights		9,114			9,499			7,937			7,546			7,378			(4	)		24
Purchased Credit Card Relationships		2,427			2,591			2,758			2,935			2,982			(6	)		(19	)
All Other Intangibles		3,959			4,103			4,205			4,371			4,078			(4	)		(3	)
Other Assets		67,128			58,528			55,036			51,765			53,181			15			26
Assets of Discontinued Operations Held-for-Sale (a)		–			–			–			–			1,385			–		NM
TOTAL ASSETS	$	1,479,575		$	1,458,042		$	1,408,918		$	1,351,520		$	1,338,029			1			11
LIABILITIES
Deposits:
U.S. Offices:
Noninterest-Bearing	$	115,036		$	120,470		$	123,942		$	132,781		$	117,197			(5	)		(2	)
Interest-Bearing		354,459			342,079			342,368			337,812			310,401			4			14
Non-U.S. Offices:
Noninterest-Bearing		6,559			5,919			8,104			7,662			3,761			11			74
Interest-Bearing		202,037			182,902			152,014			160,533			150,756			10			34
Total Deposits		678,091			651,370			626,428			638,788			582,115			4			16
Federal Funds Purchased and Securities Sold under Repurchase Agreements		178,767			205,961			218,917			162,173			188,395			(13	)		(5	)
Commercial Paper		33,978			25,116			25,354			18,849			18,135			35			87
Other Borrowed Funds		31,154			29,263			19,871			18,053			16,252			6			92
Trading Liabilities:
Debt and Equity Instruments		80,748			93,969			94,309			90,488			106,784			(14	)		(24	)
Derivative Payables		68,426			61,396			50,316			57,469			58,462			11			17
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		86,524			84,785			87,603			88,096			73,585			2			18
Beneficial Interests Issued by Consolidated VIEs		13,283			14,808			13,109			16,184			16,254			(10	)		(18	)
Long-Term Debt		173,696			159,493			143,274			133,421			126,619			9			37
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		14,930			12,670			12,033			12,209			13,309			18			12
Liabilities of Discontinued Operations Held-for-Sale (a)		–			–			–			–			24,558			–		NM
TOTAL LIABILITIES		1,359,597			1,338,831			1,291,214			1,235,730			1,224,468			2			11
STOCKHOLDERS’ EQUITY
Common Stock		3,658			3,658			3,658			3,658			3,658			–			–
Capital Surplus		78,295			78,020			77,760			77,807			77,457			–			1
Retained Earnings (b)		53,064			51,011			48,105			43,600			40,283			4			32
Accumulated Other Comprehensive Income (Loss)		(1,830	)		(2,080	)		(1,482	)		(1,557	)		(526	)		12			(248	)
Treasury Stock, at Cost		(13,209	)		(11,398	)		(10,337	)		(7,718	)		(7,311	)		(16	)		(81	)
TOTAL STOCKHOLDERS’ EQUITY		119,978			119,211			117,704			115,790			113,561			1			6
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,479,575		$	1,458,042		$	1,408,918		$	1,351,520		$	1,338,029			1			11

(a)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses 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 period ended September 30, 2006.
(b)	The cumulative effect of changes in accounting principles increased retained earnings as a result of implementing SFAS 157, SFAS 159 and FIN 48 in the first quarter of 2007. For additional information see the Firm’s March 31, 2007, Form 10-Q.

Page 4

JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	39,906		$	18,153		$	16,224		$	19,736		$	31,291			120	%		28	%	$	24,848		$	30,424			(18	)%
Federal Funds Sold and Securities Purchased under Resale Agreements		133,780			132,768			135,499			144,744			125,618			1			6			134,009			127,863			5
Securities Borrowed		87,955			90,810			78,768			82,184			82,216			(3	)		7			85,878			84,385			2
Trading Assets – Debt Instruments		310,445			294,931			257,079			218,188			213,164			5			46			287,680			201,232			43
Securities		95,694			96,921			95,326			89,962			78,029			(1	)		23			95,982			73,762			30
Interests in Purchased Receivables (a)		–			–			–			–			–			–			–			–			18,640		NM
Loans		476,912			465,763			467,453			484,140			461,673			2			3			470,078			444,558			6
Total Interest-Earning Assets		1,144,692			1,099,346			1,050,349			1,038,954			991,991			4			15			1,098,475			980,864			12
Trading Assets – Equity Instruments		86,177			85,830			88,791			81,985			75,366			–			14			86,923			72,075			21
Goodwill		45,276			45,181			45,125			45,163			43,386			–			4			45,194			43,437			4
Other Intangible Assets:
Mortgage Servicing Rights		9,290			8,371			7,784			7,295			8,048			11			15			8,487			7,548			12
All Other Intangible Assets		6,532			6,854			7,139			7,478			7,202			(5	)		(9	)		6,840			7,400			(8	)
All Other Noninterest-Earning Assets		185,367			186,404			179,727			181,732			159,482			(1	)		16			183,853			163,964			12
Assets of Discontinued Operations Held-for-Sale (b)		–			–			–			–			23,664			–		NM				–			22,056		NM
TOTAL ASSETS	$	1,477,334		$	1,431,986		$	1,378,915		$	1,362,607		$	1,309,139			3			13		$	1,429,772		$	1,297,344			10
LIABILITIES
Interest-Bearing Deposits	$	540,937		$	513,451		$	498,717		$	487,368		$	451,509			5			20		$	517,856		$	440,514			18
Federal Funds Purchased and Securities Sold under Repurchase Agreements		206,174			209,323			199,252			198,166			192,674			(2	)		7			204,942			178,936			15
Commercial Paper		26,511			25,282			22,339			18,787			19,207			5			38			24,726			17,348			43
Other Borrowings (c)		104,995			100,715			95,664			96,499			101,366			4			4			100,492			104,049			(3	)
Beneficial Interests Issued by Consolidated VIEs		14,454			13,641			15,993			15,769			13,630			6			6			14,691			32,993			(55	)
Long-Term Debt		177,851			162,465			148,146			140,515			133,279			9			33			162,929			126,011			29
Total Interest-Bearing Liabilities		1,070,922			1,024,877			980,111			957,104			911,665			4			17			1,025,636			899,851			14
Noninterest-Bearing Liabilities		287,436			289,058			282,559			290,741			262,843			(1	)		9			286,369			267,014			7
Liabilities of Discontinued Operations Held-for-Sale (b)		–			–			–			–			22,825			–		NM				–			21,107		NM
TOTAL LIABILITIES		1,358,358			1,313,935			1,262,670			1,247,845			1,197,333			3			13			1,312,005			1,187,972			10
Preferred Stock		–			–			–			–			–			–			–			–			45		NM
Common Stockholders’ Equity		118,976			118,051			116,245			114,762			111,806			1			6			117,767			109,327			8
TOTAL STOCKHOLDERS’ EQUITY		118,976			118,051			116,245			114,762			111,806			1			6			117,767			109,372			8
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$	1,477,334		$	1,431,986		$	1,378,915		$	1,362,607		$	1,309,139			3			13		$	1,429,772		$	1,297,344			10
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		5.06	%		4.56	%		4.65	%		5.18	%		4.46	%								4.85	%		4.42	%
Federal Funds Sold and Securities Purchased under Resale Agreements		4.83			4.99			4.95			4.71			4.55									4.92			4.03
Securities Borrowed		5.60			5.31			5.42			4.56			4.28									5.45			3.89
Trading Assets – Debt Instruments		6.62			5.85			5.99			5.45			5.28									6.17			5.40
Securities		5.69			5.68			5.68			5.57			5.70									5.68			5.51
Interests in Purchased Receivables		–			–			–			–			–									–			4.68
Loans		7.80			7.65			7.53			7.35			7.37									7.66			7.23
Total Interest-Earning Assets		6.69			6.43			6.45			6.17			6.08									6.53			5.89
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		4.13			4.17			4.06			3.99			3.93									4.12			3.68
Federal Funds Purchased and Securities Sold under Repurchase Agreements		5.18			5.19			5.09			4.86			4.63									5.16			4.30
Commercial Paper		4.68			4.92			4.89			4.76			4.78									4.82			4.39
Other Borrowings (c)		4.90			4.69			5.07			4.75			5.13									4.88			5.08
Beneficial Interests Issued by Consolidated VIEs		4.52			3.22			3.82			3.96			4.16									3.86			4.37
Long-Term Debt		3.99			3.77			3.85			4.34			4.08									3.87			4.21
Total Interest-Bearing Liabilities		4.41			4.37			4.35			4.31			4.26									4.38			4.08
INTEREST RATE SPREAD		2.28	%		2.06	%		2.10	%		1.86	%		1.82	%								2.15	%		1.81	%
NET YIELD ON INTEREST-EARNING ASSETS		2.57	%		2.35	%		2.39	%		2.19	%		2.17	%								2.44	%		2.14	%
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		2.89	%		2.68	%		2.73	%		2.54	%		2.54	%								2.77	%		2.57	%

(a)	As a result of restructuring certain multi-seller conduits the Firm administers, during the second quarter of 2006, JPMorgan Chase deconsolidated $29 billion of Interests in Purchased Receivables, $3 billion of Loans and $1 billion of Securities, and recorded $33 billion of Lending-Related Commitments.
(b)	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.
(c)	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																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
CREDIT CARD INCOME
Credit Card Income – Reported	$	1,777		$	1,714		$	1,563		$	1,645		$	1,567			4	%		13	%	$	5,054		$	5,268			(4	)%
Impact of:
Credit Card Securitizations		(836	)		(788	)		(746	)		(726	)		(721	)		(6	)		(16	)		(2,370	)		(2,783	)		15
Credit Card Income – Managed	$	941		$	926		$	817		$	919		$	846			2			11		$	2,684		$	2,485			8
OTHER INCOME
Other Income – Reported	$	289		$	553		$	518		$	522		$	635			(48	)		(54	)	$	1,360		$	1,653			(18	)
Impact of:
Tax-Equivalent Adjustments		192			199			110			195			165			(4	)		16			501			481			4
Other Income – Managed	$	481		$	752		$	628		$	717		$	800			(36	)		(40	)	$	1,861		$	2,134			(13	)
TOTAL NONINTEREST REVENUE
Total Noninterest Revenue – Reported	$	8,786		$	12,593		$	12,850		$	10,501		$	10,166			(30	)		(14	)	$	34,229		$	30,256			13
Impact of:
Credit Card Securitizations		(836	)		(788	)		(746	)		(726	)		(721	)		(6	)		(16	)		(2,370	)		(2,783	)		15
Tax-Equivalent Adjustments		192			199			110			195			165			(4	)		16			501			481			4
Total Noninterest Revenue – Managed	$	8,142		$	12,004		$	12,214		$	9,970		$	9,610			(32	)		(15	)	$	32,360		$	27,954			16
NET INTEREST INCOME
Net Interest Income – Reported	$	7,326		$	6,315		$	6,118		$	5,692		$	5,379			16			36		$	19,759		$	15,550			27
Impact of:
Credit Card Securitizations		1,414			1,378			1,339			1,319			1,328			3			6			4,131			4,400			(6	)
Tax-Equivalent Adjustments		95			122			70			53			57			(22	)		67			287			175			64
Net Interest Income – Managed	$	8,835		$	7,815		$	7,527		$	7,064		$	6,764			13			31		$	24,177		$	20,125			20
TOTAL NET REVENUE
Total Net Revenue – Reported	$	16,112		$	18,908		$	18,968		$	16,193		$	15,545			(15	)		4		$	53,988		$	45,806			18
Impact of:
Credit Card Securitizations		578			590			593			593			607			(2	)		(5	)		1,761			1,617			9
Tax-Equivalent Adjustments		287			321			180			248			222			(11	)		29			788			656			20
Total Net Revenue – Managed	$	16,977		$	19,819		$	19,741		$	17,034		$	16,374			(14	)		4		$	56,537		$	48,079			18
PROVISION FOR CREDIT LOSSES
Provision for Credit Losses – Reported	$	1,785		$	1,529		$	1,008		$	1,134		$	812			17			120		$	4,322		$	2,136			102
Impact of:
Credit Card Securitizations		578			590			593			593			607			(2	)		(5	)		1,761			1,617			9
Provision for Credit Losses – Managed	$	2,363		$	2,119		$	1,601		$	1,727		$	1,419			12			67		$	6,083		$	3,753			62
INCOME TAX EXPENSE
Income Tax Expense – Reported	$	1,627		$	2,117		$	2,545		$	1,268		$	1,705			(23	)		(5	)	$	6,289		$	4,969			27
Impact of:
Tax-Equivalent Adjustments		287			321			180			248			222			(11	)		29			788			656			20
Income Tax Expense – Managed	$	1,914		$	2,438		$	2,725		$	1,516		$	1,927			(21	)		(1	)	$	7,077		$	5,625			26

Page 6

JPMORGAN CHASE & CO.
LINE OF BUSINESS FINANCIAL HIGHLIGHTS – MANAGED BASIS
(in millions, except ratio data)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
TOTAL NET REVENUE (FTE)
Investment Bank	$	2,946		$	5,798		$	6,254		$	4,860		$	4,816			(49	)%		(39	)%	$	14,998		$	13,973			7	%
Retail Financial Services		4,201			4,357			4,106			3,728			3,555			(4	)		18			12,664			11,097			14
Card Services		3,867			3,717			3,680			3,750			3,646			4			6			11,264			10,995			2
Commercial Banking		1,009			1,007			1,003			1,018			933			–			8			3,019			2,782			9
Treasury & Securities Services		1,748			1,741			1,526			1,537			1,499			–			17			5,015			4,572			10
Asset Management		2,205			2,137			1,904			1,947			1,636			3			35			6,246			4,840			29
Corporate		1,001			1,062			1,268			194			289			(6	)		246			3,331			(180	)	NM
TOTAL NET REVENUE	$	16,977		$	19,819		$	19,741		$	17,034		$	16,374			(14	)		4		$	56,537		$	48,079			18
NET INCOME (LOSS)
Investment Bank	$	296		$	1,179		$	1,540		$	1,009		$	976			(75	)		(70	)	$	3,015		$	2,665			13
Retail Financial Services		639			785			859			718			746			(19	)		(14	)		2,283			2,495			(8	)
Card Services		786			759			765			719			711			4			11			2,310			2,487			(7	)
Commercial Banking		258			284			304			256			231			(9	)		12			846			754			12
Treasury & Securities Services		360			352			263			256			256			2			41			975			834			17
Asset Management		521			493			425			407			346			6			51			1,439			1,002			44
Corporate (a)		513			382			631			1,161			31			34		NM				1,526			(319	)	NM
TOTAL NET INCOME (b)	$	3,373		$	4,234		$	4,787		$	4,526		$	3,297			(20	)		2		$	12,394		$	9,918			25
AVERAGE EQUITY (c)
Investment Bank	$	21,000		$	21,000		$	21,000		$	21,000		$	21,000			–			–		$	21,000		$	20,670			2
Retail Financial Services		16,000			16,000			16,000			16,000			14,300			–			12			16,000			14,167			13
Card Services		14,100			14,100			14,100			14,100			14,100			–			–			14,100			14,100			–
Commercial Banking		6,700			6,300			6,300			6,300			5,500			6			22			6,435			5,500			17
Treasury & Securities Services		3,000			3,000			3,000			2,200			2,200			–			36			3,000			2,314			30
Asset Management		4,000			3,750			3,750			3,500			3,500			7			14			3,834			3,500			10
Corporate		54,176			53,901			52,095			51,662			51,206			1			6			53,398			49,076			9
TOTAL AVERAGE EQUITY	$	118,976		$	118,051		$	116,245		$	114,762		$	111,806			1			6		$	117,767		$	109,327			8
RETURN ON EQUITY (c)
Investment Bank		6	%		23	%		30	%		19	%		18	%								19	%		17	%
Retail Financial Services		16			20			22			18			21									19			24
Card Services		22			22			22			20			20									22			24
Commercial Banking		15			18			20			16			17									18			18
Treasury & Securities Services		48			47			36			46			46									43			48
Asset Management		52			53			46			46			39									50			38

(a)	Included the after-tax impact of discontinued operations, material litigation reserve charges/recoveries, tax audit benefits and merger costs. See Corporate Financial Highlights for additional details.
(b)	Net income included income from discontinued operations (after-tax) of $620 million and $65 million for the quarters ended December 31, 2006 and September 30, 2006, respectively, and $175 million for year-to-date September 30, 2006. There was no income from discontinued operations in 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.

Page 7

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Investment Banking Fees	$	1,330		$	1,900		$	1,729		$	1,580		$	1,419			(30	)%		(6	)%	$	4,959		$	3,957			25	%
Principal Transactions (a)		(848	)		2,178			3,126			2,327			2,548		NM			NM				4,456			7,185			(38	)
Lending & Deposit Related Fees		118			93			93			119			127			27			(7	)		304			398			(24	)
Asset Management, Administration and Commissions		712			643			641			569			512			11			39			1,996			1,671			19
All Other Income		(76	)		122			42			91			159		NM			NM				88			437			(80	)
Noninterest Revenue		1,236			4,936			5,631			4,686			4,765			(75	)		(74	)		11,803			13,648			(14	)
Net Interest Income (a)		1,710			862			623			174			51			98		NM				3,195			325		NM
TOTAL NET REVENUE (b)		2,946			5,798			6,254			4,860			4,816			(49	)		(39	)		14,998			13,973			7
Provision for Credit Losses		227			164			63			63			7			38		NM				454			128			255
Credit Reimbursement from TSS (c)		31			30			30			31			30			3			3			91			90			1
NONINTEREST EXPENSE
Compensation Expense		1,178			2,589			2,637			1,880			2,093			(54	)		(44	)		6,404			6,310			1
Noncompensation Expense		1,200			1,265			1,194			1,325			1,151			(5	)		4			3,659			3,345			9
TOTAL NONINTEREST EXPENSE		2,378			3,854			3,831			3,205			3,244			(38	)		(27	)		10,063			9,655			4
Income Before Income Tax Expense		372			1,810			2,390			1,623			1,595			(79	)		(77	)		4,572			4,280			7
Income Tax Expense		76			631			850			614			619			(88	)		(88	)		1,557			1,615			(4	)
NET INCOME	$	296		$	1,179		$	1,540		$	1,009		$	976			(75	)		(70	)	$	3,015		$	2,665			13
FINANCIAL RATIOS
ROE		6	%		23	%		30	%		19	%		18	%								19	%		17	%
ROA		0.17			0.68			0.95			0.62			0.62									0.59			0.55
Overhead Ratio		81			66			61			66			67									67			69
Compensation Expense as a % of Total Net Revenue (d)		40			45			42			38			42									43			43
REVENUE BY BUSINESS Investment Banking Fees:
Advisory	$	595		$	560		$	472		$	482		$	436			6			36		$	1,627		$	1,177			38
Equity Underwriting		267			509			393			327			275			(48	)		(3	)		1,169			851			37
Debt Underwriting		468			831			864			771			708			(44	)		(34	)		2,163			1,929			12
Total Investment Banking Fees		1,330			1,900			1,729			1,580			1,419			(30	)		(6	)		4,959			3,957			25
Fixed Income Markets		687			2,445			2,592			2,061			2,468			(72	)		(72	)		5,724			6,675			(14	)
Equity Markets		537			1,249			1,539			958			658			(57	)		(18	)		3,325			2,500			33
Credit Portfolio		392			204			394			261			271			92			45			990			841			18
Total Net Revenue	$	2,946		$	5,798		$	6,254		$	4,860		$	4,816			(49	)		(39	)	$	14,998		$	13,973			7
REVENUE BY REGION
Americas	$	1,016		$	2,655		$	3,366		$	2,535		$	2,803			(62	)		(64	)	$	7,037		$	7,066			–
Europe/Middle East/Africa		1,389			2,327			2,251			1,886			1,714			(40	)		(19	)		5,967			5,535			8
Asia/Pacific		541			816			637			439			299			(34	)		81			1,994			1,372			45
Total Net Revenue	$	2,946		$	5,798		$	6,254		$	4,860		$	4,816			(49	)		(39	)	$	14,998		$	13,973			7

(a)	The Firm adopted SFAS 157 and SFAS 159 in the first quarter of 2007. For additional information related to their impact to the Investment Bank (“IB”), see IB business segment results in the Firm’s June 30, 2007, Form 10-Q.
(b)	Total net revenue included tax-equivalent adjustments, primarily due to tax-exempt income from municipal bond investments and income tax credits related to affordable housing investments, of $255 million, $290 million, $152 million, $218 million, and $197 million for the quarters ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively, and $697 million and $584 million for year-to-date 2007 and 2006, respectively.
(c)	Treasury & Securities Services (“TSS”) was charged a credit reimbursement related to certain exposures managed within the Investment Bank credit portfolio on behalf of clients shared with TSS.
(d)	For 2006, the compensation expense to Total net revenue ratio was 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.

Page 8

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	710,665		$	696,230		$	658,724		$	645,993		$	626,245			2	%		13	%	$	688,730		$	648,101			6	%
Trading Assets – Debt and Equity Instruments (a)		372,212			359,387			335,118			295,317			283,915			4			31			355,708			268,256			33
Trading Assets – Derivative Receivables		63,017			58,520			56,398			59,802			53,184			8			18			59,336			52,769			12
Loans:
Loans Retained (b)		61,919			59,065			58,973			60,947			61,623			5			–			59,996			58,137			3
Loans at Fair Value & Loans Held-for-Sale (a)		17,315			14,794			13,684			23,743			24,030			17			(28	)		15,278			21,072			(27	)
Total Loans		79,234			73,859			72,657			84,690			85,653			7			(7	)		75,274			79,209			(5	)
Adjusted Assets (c)		625,619			603,839			572,017			548,628			539,278			4			16			600,688			520,718			15
Equity		21,000			21,000			21,000			21,000			21,000			–			–			21,000			20,670			2
Headcount		25,691	#		25,356	#		23,892	#		23,729	#		23,447	#		1			10			25,691	#		23,447	#		10
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	67		$	(16	)	$	(6	)	$	10		$	(8	)	NM			NM			$	45		$	(41	)	NM
Nonperforming Assets:
Nonperforming Loans (d)		265			72			92			231			420			268			(37	)		265			420			(37	)
Other Nonperforming Assets		60			47			36			38			36			28			67			60			36			67
Allowance for Credit Losses:
Allowance for Loan Losses		1,112			1,037			1,037			1,052			1,010			7			10			1,112			1,010			10
Allowance for Lending-Related Commitments		568			487			310			305			292			17			95			568			292			95
Total Allowance for Credit Losses		1,680			1,524			1,347			1,357			1,302			10			29			1,680			1,302			29
Net Charge-off (Recovery) Rate (a) (b)		0.43	%		(0.11	)%		(0.04	)%		0.07	%		(0.05	)%								0.10	%		(0.09	)%
Allowance for Loan Losses to Average Loans (a) (b)		1.80			1.76			1.76			1.73			1.64									1.85			1.74
Allowance for Loan Losses to Nonperforming Loans (d)		585			2,206			1,178			461			253									585			253
Nonperforming Loans to Average Loans		0.33			0.10			0.13			0.27			0.49									0.35			0.53
MARKET RISK – AVERAGE TRADING AND CREDIT PORTFOLIO VAR
Trading Activities:
Fixed Income	$	98		$	74		$	45		$	51		$	63			32			56		$	72		$	58			24
Foreign Exchange		23			20			19			20			24			15			(4	)		21			23			(9	)
Equities		35			51			42			35			32			(31	)		9			43			29			48
Commodities and Other		28			40			34			35			46			(30	)		(39	)		34			48			(29	)
Diversification (e)		(70	)		(73	)		(58	)		(58	)		(82	)		4			15			(67	)		(74	)		9
Total Trading VAR		114			112			82			83			83			2			37			103			84			23
Credit Portfolio VAR (f)		17			12			13			15			14			42			21			14			14			–
Diversification (e)		(24	)		(14	)		(12	)		(11	)		(8	)		(71	)		(200	)		(17	)		(9	)		(89	)
Total Trading and Credit Portfolio VAR	$	107		$	110		$	83		$	87		$	89			(3	)		20		$	100		$	89			12
	September 30, 2007 YTD						Full Year 2006
	Market						Market
MARKET SHARES AND RANKINGS (g)	Share			Rankings			Share			Rankings
Global Debt, Equity and Equity-Related		7	%		# 2			7	%		# 2
Global Syndicated Loans		14	%		# 1			14	%		# 1
Global Long-Term Debt		7	%		# 2			6	%		# 3
Global Equity and Equity-Related		9	%		# 1			7	%		# 6
Global Announced M&A		23	%		# 4			23	%		# 4
U.S. Debt, Equity and Equity-Related		10	%		# 2			9	%		# 2
U.S. Syndicated Loans		26	%		# 1			26	%		# 1
U.S. Long-Term Debt		11	%		# 2			12	%		# 2
U.S. Equity and Equity-Related (h)		11	%		# 2			8	%		# 6
U.S. Announced M&A		26	%		# 5			28	%		# 3

(a)	As a result of the adoption of SFAS 159 in the first quarter of 2007, $11.7 billion of loans were reclassified to trading assets. Loans at fair value & loans held-for-sale were excluded when calculating the allowance coverage ratio and Net charge-off rate.
(b)	Loans retained included credit portfolio loans, leveraged leases and other accrual loans, and excluded loans at fair value.
(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 believed an adjusted asset amount that excluded the assets discussed above, which were considered to have a low risk profile, provided a more meaningful measure of balance sheet leverage in the securities industry.
(d)	Nonperforming loans included loans held-for-sale of $75 million, $25 million, $4 million, $3 million, and $21 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively, which were excluded from the allowance coverage ratios. Nonperforming loans excluded distressed loans held-for-sale purchased as part of IB’s proprietary activities and assets classified as trading assets. Loans elected under the fair value option and classified within trading assets are also excluded from nonperforming loans.
(e)	Average VARs were less than the sum of the VARs of their market risk components, which was due to risk offsets resulting from portfolio diversification. The diversification effect reflected the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is usually less than the sum of the risks of the positions themselves.
(f)	Includes VAR on derivative credit valuation adjustments, hedges of the credit valuation adjustment and mark-to-market hedges of the retained loan portfolio, which were all reported in Principal Transactions revenue. The VAR did not include the retained loan portfolio.
(g)	Source: Thomson Financial Securities data. Global announced M&A was based on rank value; all other rankings were 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%.
(h)	References U.S. domiciled equity and equity-related transactions, per Thomson Financial.

Page 9

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	492		$	470		$	423		$	430		$	406			5	%		21	%	$	1,385		$	1,167			19	%
Asset Management, Administration and Commissions		336			344			263			293			326			(2	)		3			943			1,129			(16	)
Securities Gains (Losses)		–			–			–			(5	)		(7	)		–			NM			–			(52	)		NM
Mortgage Fees and Related Income (a)		229			495			482			111			67			(54	)		242			1,206			507			138
Credit Card Income		167			163			142			143			136			2			23			472			380			24
All Other Income		296			212			179			176			170			40			74			687			381			80
Noninterest Revenue		1,520			1,684			1,489			1,148			1,098			(10	)		38			4,693			3,512			34
Net Interest Income		2,681			2,673			2,617			2,580			2,457			–			9			7,971			7,585			5
TOTAL NET REVENUE		4,201			4,357			4,106			3,728			3,555			(4	)		18			12,664			11,097			14
Provision for Credit Losses		680			587			292			262			114			16			496			1,559			299			421
NONINTEREST EXPENSE
Compensation Expense (a)		1,087			1,104			1,065			950			886			(2	)		23			3,256			2,707			20
Noncompensation Expense (a)		1,265			1,264			1,224			1,211			1,142			–			11			3,753			3,595			4
Amortization of Intangibles		117			116			118			130			111			1			5			351			334			5
TOTAL NONINTEREST EXPENSE		2,469			2,484			2,407			2,291			2,139			(1	)		15			7,360			6,636			11
Income Before Income Tax Expense		1,052			1,286			1,407			1,175			1,302			(18	)		(19	)		3,745			4,162			(10	)
Income Tax Expense		413			501			548			457			556			(18	)		(26	)		1,462			1,667			(12	)
NET INCOME	$	639		$	785		$	859		$	718		$	746			(19	)		(14	)	$	2,283		$	2,495			(8	)
FINANCIAL RATIOS
ROE		16	%		20	%		22	%		18	%		21	%								19	%		24	%
Overhead Ratio (a)		59			57			59			61			60									58			60
Overhead Ratio Excluding Core Deposit Intangibles (a) (b)		56			54			56			58			57									55			57
SELECTED BALANCE SHEETS (Ending)
Assets	$	216,754		$	217,421		$	212,997		$	237,887		$	227,056			–			(5	)	$	216,754		$	227,056			(5	)
Loans:
Loans Retained		172,498			166,992			163,462			180,760			188,549			3			(9	)		172,498			188,549			(9	)
Loans at Fair Value & Loans Held-for-Sale (c)		18,274			23,501			25,006			32,744			17,005			(22	)		7			18,274			17,005			7
Total Loans		190,772			190,493			188,468			213,504			205,554			–			(7	)		190,772			205,554			(7	)
Deposits		216,135			217,689			221,840			214,081			198,260			(1	)		9			216,135			198,260			9
SELECTED BALANCE SHEETS (Average)
Assets	$	214,852		$	216,692		$	217,135		$	235,301		$	225,307			(1	)		(5	)	$	216,218		$	230,307			(6	)
Loans:
Loans Retained		168,495			165,136			162,744			190,426			189,313			2			(11	)		165,479			186,852			(11	)
Loans at Fair Value & Loans Held-for-Sale (c)		19,560			25,166			28,235			21,228			13,994			(22	)		40			24,289			14,411			69
Total Loans		188,055			190,302			190,979			211,654			203,307			(1	)		(8	)		189,768			201,263			(6	)
Deposits		216,904			219,171			216,933			211,915			198,967			(1	)		9			217,669			197,491			10
Equity		16,000			16,000			16,000			16,000			14,300			–			12			16,000			14,167			13
Headcount		68,528	#		68,254	#		67,247	#		65,570	#		61,915	#		–			11			68,528	#		61,915	#		11
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	350		$	270		$	185		$	214		$	128			30			173		$	805		$	362			122
Nonperforming Loans (d)		1,991			1,760			1,655			1,677			1,404			13			42			1,991			1,404			42
Nonperforming Assets		2,404			2,099			1,910			1,902			1,595			15			51			2,404			1,595			51
Allowance for Loan Losses		2,105			1,772			1,453			1,392			1,306			19			61			2,105			1,306			61
Net Charge-off Rate (e)		0.82	%		0.66	%		0.46	%		0.45	%		0.27	%								0.65	%		0.26	%
Allowance for Loan Losses to Ending Loans (e)		1.22			1.06			0.89			0.77			0.69									1.22			0.69
Allowance for Loan Losses to Nonperforming Loans (e)		107			115			94			89			95									107			95
Nonperforming Loans to Total Loans		1.04			0.92			0.88			0.79			0.68									1.04			0.68

(a)	The Firm adopted SFAS 159 in the first quarter of 2007. As a result, certain loan origination costs have been classified as expense (previously netted against revenue) for the current-year quarters and nine months ended September 30, 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 method would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excluded Regional Banking’s core deposit intangible amortization expense related to The Bank of New York transaction and the Bank One merger of $116 million, $115 million, $116 million, $130 million, and $109 million for the quarters ending September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively, and $347 million and $328 million for year-to-date 2007 and 2006, respectively.
(c)	Loans included prime mortgage loans originated with the intent to sell, which, for new originations on or after January 1, 2007, were accounted for at fair value under SFAS 159. These loans, classified as Trading assets on the Consolidated balance sheets, totaled $14.4 billion, $15.2 billion, and $11.6 billion at September 30, 2007, June 30, 2007 and March 31, 2007, respectively. Average loans included $14.1 billion, $13.5 billion and $6.5 billion for the quarters ended September 30, 2007, June 30, 2007 and March 31, 2007, respectively, and $11.4 billion for the nine months ended September 30, 2007.
(d)	Nonperforming loans included Loans held-for-sale and Loans accounted for at fair value under SFAS 159 of $17 million, $217 million, $112 million, $116 million, and $24 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively. Certain of these loans are classified as Trading assets on the Consolidated balance sheet.
(e)	Loans held-for-sale and Loans accounted for at fair value under SFAS 159 were excluded when calculating the allowance coverage ratio and the Net charge-off rate.

Page 10

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
REGIONAL BANKING
Noninterest Revenue	$	1,013		$	977		$	793		$	678		$	855			4	%		18	%	$	2,783		$	2,526			10	%
Net Interest Income		2,325			2,296			2,299			2,229			2,107			1			10			6,920			6,539			6
Total Net Revenue		3,338			3,273			3,092			2,907			2,962			2			13			9,703			9,065			7
Provision for Credit Losses		574			494			233			165			53			16		NM				1,301			189		NM
Noninterest Expense		1,760			1,749			1,729			1,730			1,611			1			9			5,238			5,095			3
Income Before Income Tax Expense		1,004			1,030			1,130			1,012			1,298			(3	)		(23	)		3,164			3,781			(16	)
Net Income		611			629			690			619			744			(3	)		(18	)		1,930			2,265			(15	)
ROE		21	%		21	%		24	%		21	%		29	%								22	%		30	%
Overhead Ratio		53			53			56			60			54									54			56
Overhead Ratio Excluding Core Deposit Intangibles (a)		49			50			52			55			51									50			53
BUSINESS METRICS (in billions)
Home Equity Origination Volume	$	11.2		$	14.6		$	12.7		$	12.9		$	13.3			(23	)		(16	)	$	38.5		$	39.0			(1	)
End of Period Loans Owned:
Home Equity	$	93.0		$	91.0		$	87.7		$	85.7		$	80.4			2			16		$	93.0		$	80.4			16
Mortgage (b)		12.3			8.8			9.2			30.1			46.6			40			(74	)		12.3			46.6			(74	)
Business Banking		14.9			14.6			14.3			14.1			13.1			2			14			14.9			13.1			14
Education		10.2			10.2			11.1			10.3			9.4			–			9			10.2			9.4			9
Other Loans (c)		2.4			2.5			2.7			2.7			2.2			(4	)		9			2.4			2.2			9
Total End of Period Loans		132.8			127.1			125.0			142.9			151.7			4			(12	)		132.8			151.7			(12	)
End of Period Deposits:
Checking	$	64.5		$	67.3		$	69.3		$	68.7		$	59.8			(4	)		8		$	64.5		$	59.8			8
Savings		95.7			97.7			100.1			92.4			86.9			(2	)		10			95.7			86.9			10
Time and Other		46.5			41.9			42.2			43.3			41.5			11			12			46.5			41.5			12
Total End of Period Deposits		206.7			206.9			211.6			204.4			188.2			–			10			206.7			188.2			10
Average Loans Owned:
Home Equity	$	91.8		$	89.2		$	86.3		$	84.2		$	78.8			3			16		$	88.8		$	76.4			16
Mortgage Loans (b)		9.9			8.8			8.9			40.8			47.8			13			(79	)		9.5			46.5			(80	)
Business Banking		14.8			14.5			14.3			14.0			13.0			2			14			14.5			12.9			12
Education		9.8			10.5			11.0			9.9			8.9			(7	)		10			10.4			7.7			35
Other Loans (c)		2.4			2.4			3.0			2.7			2.2			–			9			2.6			2.6			–
Total Average Loans (d)		128.7			125.4			123.5			151.6			150.7			3			(15	)		125.8			146.1			(14	)
Average Deposits:
Checking	$	64.9		$	67.2		$	67.3		$	65.5		$	60.3			(3	)		8		$	66.5		$	61.9			7
Savings		97.1			98.4			96.7			92.2			88.1			(1	)		10			97.4			89.1			9
Time and Other		43.3			41.7			42.5			43.0			39.0			4			11			42.5			35.6			19
Total Average Deposits		205.3			207.3			206.5			200.7			187.4			(1	)		10			206.4			186.6			11
Average Assets		140.6			137.7			135.9			162.5			159.1			2			(12	)		138.1			160.3			(14	)
Average Equity		11.8			11.8			11.8			11.9			10.2			–			16			11.8			10.1			17

Page 11

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
REGIONAL BANKING (continued)
CREDIT DATA AND QUALITY STATISTICS
30+ Day Delinquency Rate (e) (f)		2.39	%		1.88	%		1.84	%		2.02	%		1.57	%								2.39	%		1.57	%
Net Charge-offs
Home Equity	$	150		$	98		$	68		$	51		$	29			53	%		417	%	$	316		$	92			243	%
Mortgage		40			26			20			21			14			54			186			86			35			146
Business Banking		33			30			25			38			19			10			74			88			53			66
Other Loans		23			52			13			27			1			(56	)	NM				88			21			319
Total Net Charge-offs		246			206			126			137			63			19			290			578			201			188
Net Charge-off Rate
Home Equity		0.65	%		0.44	%		0.32	%		0.24	%		0.15	%								0.48	%		0.16	%
Mortgage		1.60			1.19			0.91			0.20			0.12									1.21			0.10
Business Banking		0.88			0.83			0.71			1.08			0.58									0.81			0.55
Other Loans		1.01			2.32			0.55			1.15			0.05									1.28			0.36
Total Net Charge-off Rate (d)		0.78			0.68			0.43			0.37			0.17									0.63			0.19
Nonperforming Assets (g) (h)	$	2,248		$	1,968		$	1,770		$	1,725		$	1,421			14			58		$	2,248		$	1,421			58
RETAIL BRANCH BUSINESS METRICS
Investment Sales Volume	$	4,346		$	5,117		$	4,783		$	4,101		$	3,536			(15	)		23		$	14,246		$	10,781			32
Number of:
Branches		3,096	#		3,089	#		3,071	#		3,079	#		2,677	#		7	#		419	#		3,096	#		2,677	#		419	#
ATMs		8,943			8,649			8,560			8,506			7,825			294			1,118			8,943			7,825			1,118
Personal Bankers (i)		9,503			9,025			7,846			7,573			7,484			478			2,019			9,503			7,484			2,019
Sales Specialists (i)		4,025			3,915			3,712			3,614			3,471			110			554			4,025			3,471			554
Active Online Customers (in thousands) (j)		5,706			5,448			5,295			4,909			4,717			258			989			5,706			4,717			989
Checking Accounts (in thousands)		10,644			10,356			10,158			9,995			9,270			288			1,374			10,644			9,270			1,374
MORTGAGE BANKING
Production Revenue (k)	$	176		$	463		$	400		$	215		$	197			(62	)%		(11	)%	$	1,039		$	618			68	%
Net Mortgage Servicing Revenue:
Loan Servicing Revenue		629			615			601			598			579			2			9			1,845			1,702			8
Changes in MSR Asset Fair Value:
Due to Inputs or Assumptions in Model		(810	)		952			108			38			(1,075	)	NM				25			250			127			97
Other Changes in Fair Value		(377	)		(383	)		(378	)		(372	)		(327	)		2			(15	)		(1,138	)		(1,068	)		(7	)
Total Changes in MSR Asset Fair Value		(1,187	)		569			(270	)		(334	)		(1,402	)	NM				15			(888	)		(941	)		6
Derivative Valuation Adjustments and Other		788			(1,014	)		(127	)		(69	)		824		NM				(4	)		(353	)		(475	)		26
Total Net Mortgage Servicing Revenue		230			170			204			195			1			35		NM				604			286			111
Total Net Revenue		406			633			604			410			198			(36	)		105			1,643			904			82
Noninterest Expense (k)		485			516			468			354			334			(6	)		45			1,469			987			49
Income (Loss) Before Income Tax Expense		(79	)		117			136			56			(136	)	NM				42			174			(83	)	NM
Net Income (Loss)		(48	)		71			84			34			(83	)	NM				42			107			(51	)	NM
ROE	NM				14	%		17	%		8	%	NM										7	%	NM
Business Metrics (in billions)
Third Party Mortgage Loans Serviced (Ending)	$	600.0		$	572.4		$	546.1		$	526.7		$	510.7			5			17		$	600.0		$	510.7			17
MSR Net Carrying Value (Ending)		9.1			9.5			7.9			7.5			7.4			(4	)		23			9.1			7.4			23
Avg Mortgage Loans at Fair Value & Loans Held-for-Sale (l)		16.4			21.3			23.8			17.9			10.5			(23	)		56			20.4			11.1			84
Average Assets		31.4			35.6			38.0			29.8			22.4			(12	)		40			35.0			24.5			43
Average Equity		2.0			2.0			2.0			1.7			1.7			–			18			2.0			1.7			18
Mortgage Origination Volume by Channel (in billions)
Retail	$	11.1		$	13.6		$	10.9		$	10.5		$	10.1			(18	)		10		$	35.6		$	30.0			19
Wholesale		9.8			12.8			9.9			9.0			7.7			(23	)		27			32.5			23.8			37
Correspondent		7.2			6.4			4.8			3.5			2.7			13			167			18.4			9.8			88
CNT (Including Negotiated Transactions)		11.1			11.3			10.5			6.8			8.5			(2	)		31			32.9			25.8			28
Total (m)		39.2			44.1			36.1			29.8			29.0			(11	)		35			119.4			89.4			34
AUTO FINANCE
Noninterest Revenue	$	140		$	138		$	131		$	124		$	110			1			27		$	409		$	244			68
Net Interest Income		307			312			279			287			285			(2	)		8			898			884			2
Total Net Revenue		447			450			410			411			395			(1	)		13			1,307			1,128			16
Provision for Credit Losses		96			92			59			97			61			4			57			247			110			125
Noninterest Expense		224			219			210			207			194			2			15			653			554			18
Income Before Income Tax Expense		127			139			141			107			140			(9	)		(9	)		407			464			(12	)
Net Income		76			85			85			65			85			(11	)		(11	)		246			281			(12	)
ROE		14	%		15	%		16	%		11	%		14	%								15	%		16	%
ROA		0.70			0.79			0.80			0.60			0.77									0.76			0.82

Page 12

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
AUTO FINANCE (continued)
Business Metrics (in billions)
Auto Origination Volume	$	5.2		$	5.3		$	5.2		$	5.0		$	5.5			(2	)%		(5	)%	$	15.7		$	14.3			10	%
End-of-Period Loans and Lease Related Assets
Loans Outstanding	$	40.3		$	40.4		$	39.7		$	39.3		$	38.1			–			6		$	40.3		$	38.1			6
Lease Financing Receivables		0.6			0.8			1.2			1.7			2.2			(25	)		(73	)		0.6			2.2			(73	)
Operating Lease Assets		1.8			1.8			1.7			1.6			1.5			–			20			1.8			1.5			20
Total End-of-Period Loans and Lease Related Assets		42.7			43.0			42.6			42.6			41.8			(1	)		2			42.7			41.8			2
Average Loans and Lease Related Assets
Loans Outstanding (n)	$	39.9		$	40.1		$	39.4		$	38.7		$	38.9			–			3		$	39.8		$	40.1			(1	)
Lease Financing Receivables		0.7			1.0			1.5			1.9			2.5			(30	)		(72	)		1.1			3.2			(66	)
Operating Lease Assets		1.8			1.7			1.6			1.5			1.4			6			29			1.7			1.2			42
Total Average Loans and Lease Related Assets		42.4			42.8			42.5			42.1			42.8			(1	)		(1	)		42.6			44.5			(4	)
Average Assets		42.9			43.4			43.2			43.1			43.8			(1	)		(2	)		43.1			45.6			(5	)
Average Equity		2.2			2.2			2.2			2.4			2.4			–			(8	)		2.2			2.4			(8	)
Credit Quality Statistics
30+ Day Delinquency Rate		1.65	%		1.43	%		1.33	%		1.72	%		1.61	%								1.65	%		1.61	%
Net Charge-offs
Loans	$	98		$	62		$	58		$	76		$	63			58			56		$	218		$	155			41
Lease Receivables		1			1			1			1			2			–			(50	)		3			6			(50	)
Total Net Charge-offs		99			63			59			77			65			57			52			221			161			37
Net Charge-off Rate
Loans (n)		0.97	%		0.62	%		0.60	%		0.78	%		0.66	%								0.73	%		0.53	%
Lease Receivables		0.57			0.40			0.27			0.21			0.32									0.36			0.25
Total Net Charge-off Rate (n)		0.97			0.61			0.59			0.75			0.64									0.72			0.51
Nonperforming Assets	$	156		$	131		$	140		$	177		$	174			19			(10	)	$	156		$	174			(10	)

(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 inclusion would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excluded Regional Banking’s core deposit intangible amortization expense related to The Bank of New York transaction and the Bank One merger of $116 million, $115 million, $116 million, $130 million, and $109 million for the quarters ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, and $347 million and $328 million for year-to-date 2007 and 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. The transfer had no impact on the financial results of Regional Banking. Balances reported for current-year quarter ends primarily reflected subprime mortgage loans owned.
(c)	Included commercial loans derived from community development activities and, prior to July 1, 2006, insurance policy loans.
(d)	Average loans included loans held-for-sale of $3.2 billion, $3.9 billion, $4.4 billion, $3.3 billion, and $2.5 billion for the quarters ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively, and $3.8 billion and $2.6 billion for year-to-date 2007 and 2006, respectively. These amounts were excluded when calculating the Net charge-off rate.
(e)	Excluded delinquencies related to loans eligible for repurchase as well as loans repurchased from Governmental National Mortgage Association (“GNMA”) pools that are insured by U.S. government agencies and U.S. government-sponsored enterprises of $979 million, $879 million, $975 million, $960 million, and $880 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(f)	Excluded loans that are 30 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $590 million, $523 million, $519 million, $464 million, and $462 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(g)	Excluded 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, $1.3 billion, $1.2 billion, and $1.1 billion at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively, and (2) education loans that are 90 days past due and still accruing, which were insured by U.S. government agencies under the Federal Family Education Loan Program of $241 million, $200 million, $178 million, $219 million, and $189 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.
(h)	Nonperforming assets included loans held-for-sale and loans accounted for at fair value under SFAS 159 related to mortgage banking activities of $17 million, $217 million, $79 million, $11 million, and $3 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively.
(i)	Employees acquired as part of The Bank of New York transaction are included beginning June 30, 2007. This transaction was completed on October 1, 2006.
(j)	During the quarter ended June 30, 2007, RFS changed the methodology for determining active online customers to include all individual RFS customers with one or more online accounts that have been active within 90 days of period end, including customers who also have online accounts with Card Services. Prior periods have been restated to conform to this new methodology.
(k)	The Firm adopted SFAS 159 in the first quarter of 2007. As a result, certain loan origination costs have been classified as expense (previously netted against revenue) for the 2007 quarters and year-to-date period.
(l)	Included $14.1 billion, $13.5 billion and $6.5 billion of prime mortgage loans at fair value for the quarters ended September 30, 2007, June 30, 2007, and March 31, 2007, respectively, and $11.4 billion for year-to-date 2007. These loans are classified as trading assets on the consolidated balance sheets for 2007.
(m)	During the second quarter of 2007, RFS changed its definition of mortgage originations to include all newly originated mortgage loans sourced through RFS channels, and to exclude all mortgage loan originations sourced through IB channels. Prior periods have been restated to conform to this new definition.
(n)	Average loans included Loans held-for-sale of $943 million for the quarter ended September 30, 2006. Average Loans held-for-sale for the quarters ended September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, and year-to-date 2007 were insignificant. The year-to-date average Loans held-for-sale were $709 million for 2006. These amounts are excluded when calculating the Net charge-off rate.

Page 13

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Credit Card Income	$	692		$	682		$	599		$	697		$	636			1	%		9	%	$	1,973		$	1,890			4	%
All Other Income		67			80			92			111			126			(16	)		(47	)		239			246			(3	)
Noninterest Revenue		759			762			691			808			762			–			–			2,212			2,136			4
Net Interest Income		3,108			2,955			2,989			2,942			2,884			5			8			9,052			8,859			2
TOTAL NET REVENUE		3,867			3,717			3,680			3,750			3,646			4			6			11,264			10,995			2
Provision for Credit Losses		1,363			1,331			1,229			1,281			1,270			2			7			3,923			3,317			18
NONINTEREST EXPENSE
Compensation Expense		256			251			254			242			251			2			2			761			761			–
Noncompensation Expense		827			753			803			915			823			10			–			2,383			2,429			(2	)
Amortization of Intangibles		179			184			184			184			179			(3	)		–			547			555			(1	)
TOTAL NONINTEREST EXPENSE		1,262			1,188			1,241			1,341			1,253			6			1			3,691			3,745			(1	)
Income Before Income Tax Expense		1,242			1,198			1,210			1,128			1,123			4			11			3,650			3,933			(7	)
Income Tax Expense		456			439			445			409			412			4			11			1,340			1,446			(7	)
NET INCOME	$	786		$	759		$	765		$	719		$	711			4			11		$	2,310		$	2,487			(7	)
Memo: Net Securitization Gains (Amortization)	$	–		$	16		$	23		$	32		$	48		NM			NM			$	39		$	50			(22	)
FINANCIAL METRICS
ROE		22	%		22	%		22	%		20	%		20	%								22	%		24	%
Overhead Ratio		33			32			34			36			34									33			34
% of Average Managed Outstandings:
Net Interest Income		8.29			8.04			8.11			7.92			8.07									8.15			8.52
Provision for Credit Losses		3.64			3.62			3.34			3.45			3.56									3.53			3.19
Noninterest Revenue		2.03			2.07			1.88			2.17			2.13									1.99			2.05
Risk Adjusted Margin (a)		6.68			6.49			6.65			6.65			6.65									6.61			7.39
Noninterest Expense		3.37			3.23			3.37			3.61			3.51									3.32			3.60
Pretax Income (ROO)		3.31			3.26			3.28			3.04			3.14									3.29			3.78
Net Income		2.10			2.06			2.08			1.94			1.99									2.08			2.39
BUSINESS METRICS
Charge Volume (in billions)	$	89.8		$	88.0		$	81.3		$	93.4		$	87.5			2			3		$	259.1		$	246.2			5
Net Accounts Opened (in thousands) (b)		3,957	#		3,706	#		3,439	#		14,392	#		4,186	#		7			(5	)		11,102	#		31,477	#		(65	)
Credit Cards Issued (in thousands)		153,637			150,883			152,097			154,424			139,513			2			10			153,637			139,513			10
Number of Registered Internet Customers (in millions)		26.4			24.6			24.3			22.5			20.4			7			29			26.4			20.4			29
Merchant Acquiring Business (c)
Bank Card Volume (in billions)	$	181.4		$	179.7		$	163.6		$	177.9		$	168.7			1			8		$	524.7		$	482.7			9
Total Transactions (in millions)		4,990	#		4,811	#		4,465	#		4,968	#		4,597	#		4			9			14,266	#		13,203	#		8

(a)	Represents Total Net Revenue less Provision for Credit Losses.
(b)	Fourth quarter of 2006 included approximately 9 million accounts from the acquisition of the BP and Pier 1 Imports, Inc. private label portfolios. In addition, year-to-date 2006 included approximately 21 million accounts from the acquisition of the Kohl’s private label portfolio in the second quarter of 2006.
(c)	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																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheets	$	79,409		$	80,495		$	78,173		$	85,881		$	78,587			(1	)%		1	%	$	79,409		$	78,587			1	%
Securitized Loans		69,643			67,506			68,403			66,950			65,245			3			7			69,643			65,245			7
Managed Loans	$	149,052		$	148,001		$	146,576		$	152,831		$	143,832			1			4		$	149,052		$	143,832			4
SELECTED AVERAGE BALANCES
Managed Assets	$	154,956		$	154,406		$	156,271		$	153,973		$	148,272			–			5		$	155,206		$	146,192			6
Loans:
Loans on Balance Sheets	$	79,993		$	79,000		$	81,932		$	81,489		$	76,655			1			4		$	80,301		$	71,129			13
Securitized Loans		68,673			68,428			67,485			65,898			65,061			–			6			68,200			67,862			–
Managed Loans	$	148,666		$	147,428		$	149,417		$	147,387		$	141,716			1			5		$	148,501		$	138,991			7
Equity	$	14,100		$	14,100		$	14,100		$	14,100		$	14,100			–			–		$	14,100		$	14,100			–
Headcount		18,887	#		18,913	#		18,749	#		18,639	#		18,696	#		–			1			18,887	#		18,696	#		1
MANAGED CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,363		$	1,331		$	1,314		$	1,281		$	1,280			2			6		$	4,008		$	3,417			17
Net Charge-off Rate		3.64	%		3.62	%		3.57	%		3.45	%		3.58	%								3.61	%		3.29	%
Managed delinquency ratios
30+ days		3.25	%		3.00	%		3.07	%		3.13	%		3.17	%								3.25	%		3.17	%
90+ days		1.50			1.42			1.52			1.50			1.48									1.50			1.48
Allowance for Loan Losses	$	3,107		$	3,096		$	3,092		$	3,176		$	3,176			–			(2	)	$	3,107		$	3,176			(2	)
Allowance for Loan Losses to Period-end Loans		3.91	%		3.85	%		3.96	%		3.70	%		4.04	%								3.91	%		4.04	%

Page 15

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Basis for the Period	$	1,528		$	1,470		$	1,345		$	1,423		$	1,357			4	%		13	%	$	4,343		$	4,673			(7	)%
Securitization Adjustments		(836	)		(788	)		(746	)		(726	)		(721	)		(6	)		(16	)		(2,370	)		(2,783	)		15
Managed Credit Card Income	$	692		$	682		$	599		$	697		$	636			1			9		$	1,973		$	1,890			4
Net Interest Income
Reported Basis for the Period	$	1,694		$	1,577		$	1,650		$	1,623		$	1,556			7			9		$	4,921		$	4,459			10
Securitization Adjustments		1,414			1,378			1,339			1,319			1,328			3			6			4,131			4,400			(6	)
Managed Net Interest Income	$	3,108		$	2,955		$	2,989		$	2,942		$	2,884			5			8		$	9,052		$	8,859			2
Total Net Revenue
Reported Basis for the Period	$	3,289		$	3,127		$	3,087		$	3,157		$	3,039			5			8		$	9,503		$	9,378			1
Securitization Adjustments		578			590			593			593			607			(2	)		(5	)		1,761			1,617			9
Managed Total Net Revenue	$	3,867		$	3,717		$	3,680		$	3,750		$	3,646			4			6		$	11,264		$	10,995			2
Provision for Credit Losses
Reported Basis for the Period	$	785		$	741		$	636		$	688		$	663			6			18		$	2,162		$	1,700			27
Securitization Adjustments		578			590			593			593			607			(2	)		(5	)		1,761			1,617			9
Managed Provision for Credit Losses	$	1,363		$	1,331		$	1,229		$	1,281		$	1,270			2			7		$	3,923		$	3,317			18
BALANCE SHEETS — AVERAGE BALANCES (a)
Total Average Assets
Reported Basis for the Period	$	88,856		$	88,486		$	91,157		$	90,283		$	85,301			—			4		$	89,491		$	80,395			11
Securitization Adjustments		66,100			65,920			65,114			63,690			62,971			—			5			65,715			65,797			—
Managed Average Assets	$	154,956		$	154,406		$	156,271		$	153,973		$	148,272			—			5		$	155,206		$	146,192			6
CREDIT QUALITY STATISTICS (a)
Net Charge-offs
Reported Net Charge-offs Data for the Period	$	785		$	741		$	721		$	688		$	673			6			17		$	2,247		$	1,800			25
Securitization Adjustments		578			590			593			593			607			(2	)		(5	)		1,761			1,617			9
Managed Net Charge-offs	$	1,363		$	1,331		$	1,314		$	1,281		$	1,280			2			6		$	4,008		$	3,417			17

(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.

Page 16

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	159		$	158		$	158		$	155		$	145			1	%		10	%	$	475		$	434			9	%
Asset Management, Administration and Commissions		24			21			23			20			16			14			50			68			47			45
All Other Income (a)		107			133			154			135			95			(20	)		13			394			282			40
Noninterest Revenue		290			312			335			310			256			(7	)		13			937			763			23
Net Interest Income		719			695			668			708			677			3			6			2,082			2,019			3
TOTAL NET REVENUE		1,009			1,007			1,003			1,018			933			—			8			3,019			2,782			9
Provision for Credit Losses		112			45			17			111			54			149			107			174			49			255
NONINTEREST EXPENSE
Compensation Expense		160			182			180			174			190			(12	)		(16	)		522			566			(8	)
Noncompensation Expense		300			300			290			296			296			—			1			890			883			1
Amortization of Intangibles		13			14			15			15			14			(7	)		(7	)		42			45			(7	)
TOTAL NONINTEREST EXPENSE		473			496			485			485			500			(5	)		(5	)		1,454			1,494			(3	)
Income Before Income Tax Expense		424			466			501			422			379			(9	)		12			1,391			1,239			12
Income Tax Expense		166			182			197			166			148			(9	)		12			545			485			12
NET INCOME	$	258		$	284		$	304		$	256		$	231			(9	)		12		$	846		$	754			12
MEMO:
Revenue by Product:
Lending	$	343		$	348		$	348		$	359		$	335			(1	)		2		$	1,039		$	985			5
Treasury Services		594			569			556			576			551			4			8			1,719			1,667			3
Investment Banking		64			82			76			87			60			(22	)		7			222			166			34
Other		8			8			23			(4	)		(13	)		—			NM			39			(36	)		NM
Total Commercial Banking Revenue	$	1,009		$	1,007		$	1,003		$	1,018		$	933			—			8		$	3,019		$	2,782			9
IB Revenues, Gross (b)	$	194		$	236		$	231		$	246		$	170			(18	)		14		$	661		$	470			41
Revenue by Business:
Middle Market Banking	$	680		$	653		$	661		$	661		$	617			4			10		$	1,994		$	1,874			6
Mid-Corporate Banking		167			197			212			198			160			(15	)		4			576			458			26
Real Estate Banking		108			109			102			120			119			(1	)		(9	)		319			338			(6	)
Other		54			48			28			39			37			13			46			130			112			16
Total Commercial Banking Revenue	$	1,009		$	1,007		$	1,003		$	1,018		$	933			—			8		$	3,019		$	2,782			9
FINANCIAL RATIOS
ROE		15	%		18	%		20	%		16	%		17	%								18	%		18	%
Overhead Ratio		47			49			48			48			54									48			54

(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 (“CB”) clients.

Page 17

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	86,652		$	84,687		$	82,545		$	62,227		$	57,378			2	%		51	%	$	84,643		$	56,246			50	%
Loans and Leases (a)		61,272			59,812			57,660			57,657			53,404			2			15			59,595			52,227			14
Liability Balances (b)		88,081			84,187			81,752			79,050			72,009			5			22			84,697			71,781			18
Equity		6,700			6,300			6,300			6,300			5,500			6			22			6,435			5,500			17
MEMO:
Loans by Business:
Middle Market Banking	$	37,617		$	37,099		$	36,317		$	35,618		$	32,890			1			14		$	37,016		$	32,418			14
Mid-Corporate Banking		12,076			11,692			10,669			9,898			8,756			3			38			11,484			8,205			40
Real Estate Banking		7,144			6,894			7,074			7,745			7,564			4			(6	)		7,038			7,505			(6	)
Other		4,435			4,127			3,600			4,396			4,194			7			6			4,057			4,099			(1	)
Total Commercial Banking Loans	$	61,272		$	59,812		$	57,660		$	57,657		$	53,404			2			15		$	59,595		$	52,227			14
Headcount		4,158	#		4,295	#		4,281	#		4,459	#		4,447	#		(3	)		(6	)		4,158	#		4,447	#		(6	)
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	20		$	(8	)	$	(1	)	$	16		$	21		NM				(5	)	$	11		$	11			—
Nonperforming Loans		134			135			141			121			157			(1	)		(15	)		134			157			(15	)
Allowance for Credit Losses:
Allowance for Loan Losses		1,623			1,551			1,531			1,519			1,431			5			13			1,623			1,431			13
Allowance for Lending-Related Commitments		236			222			187			187			156			6			51			236			156			51
Total Allowance for Credit Losses		1,859			1,773			1,718			1,706			1,587			5			17			1,859			1,587			17
Net Charge-off (Recovery) Rate (a)		0.13	%		(0.05	)%		(0.01	)%		0.11	%		0.16	%								0.02	%		0.03	%
Allowance for Loan Losses to Average Loans (a)		2.67			2.63			2.68			2.67			2.70									2.75			2.76
Allowance for Loan Losses to Nonperforming Loans		1,211			1,149			1,086			1,255			911									1,211			911
Nonperforming Loans to Average Loans		0.22			0.23			0.24			0.21			0.29									0.22			0.30

(a)

Average loans included Loans held-for-sale of $433 million, $741 million, $475 million, $804 million, and $359 million for the quarters ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively, and $550 million and $321 million for year-to-date September 30, 2007 and 2006, respectively. These amounts are excluded when calculating the Net charge-off (recovery) rate and the allowance coverage ratio.

(b)

Liability balances include deposits and deposits 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																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	244		$	219		$	213		$	186		$	183			11	%		33	%	$	676		$	549			23	%
Asset Management, Administration and Commissions		730			828			686			717			642			(12	)		14			2,244			1,975			14
All Other Income		171			184			125			133			155			(7	)		10			480			479			—
Noninterest Revenue		1,145			1,231			1,024			1,036			980			(7	)		17			3,400			3,003			13
Net Interest Income		603			510			502			501			519			18			16			1,615			1,569			3
TOTAL NET REVENUE		1,748			1,741			1,526			1,537			1,499			—			17			5,015			4,572			10
Provision for Credit Losses		9			—			6			(2	)		1			NM			NM			15			1			NM
Credit Reimbursement to IB (a)		(31	)		(30	)		(30	)		(31	)		(30	)		(3	)		(3	)		(91	)		(90	)		(1	)
NONINTEREST EXPENSE
Compensation Expense		579			609			558			555			557			(5	)		4			1,746			1,643			6
Noncompensation Expense		538			523			502			533			489			3			10			1,563			1,462			7
Amortization of Intangibles		17			17			15			16			18			—			(6	)		49			57			(14	)
TOTAL NONINTEREST EXPENSE		1,134			1,149			1,075			1,104			1,064			(1	)		7			3,358			3,162			6
Income before Income Tax Expense		574			562			415			404			404			2			42			1,551			1,319			18
Income Tax Expense		214			210			152			148			148			2			45			576			485			19
NET INCOME	$	360		$	352		$	263		$	256		$	256			2			41		$	975		$	834			17
REVENUE BY BUSINESS
Treasury Services	$	780		$	720		$	689			700		$	697			8			12		$	2,189		$	2,092			5
Worldwide Securities Services		968			1,021			837			837			802			(5	)		21			2,826			2,480			14
TOTAL NET REVENUE	$	1,748		$	1,741		$	1,526		$	1,537		$	1,499			—			17		$	5,015		$	4,572			10
FINANCIAL RATIOS
ROE		48	%		47	%		36	%		46	%		46	%								43	%		48	%
Overhead Ratio		65			66			70			72			71									67			69
Pretax Margin Ratio (b)		33			32			27			26			27									31			29
FIRMWIDE BUSINESS METRICS
Assets under Custody (in billions)	$	15,614		$	15,203		$	14,661		$	13,903		$	12,873			3			21		$	15,614		$	12,873			21
Number of:
US$ ACH transactions originated (in millions)		943	#		972	#		971	#		931	#		886	#		(3	)		6			2,886	#		2,572	#		12
Total US$ Clearing Volume (in thousands)		28,031			27,779			26,840			26,906			26,252			1			7			82,650			77,940			6
International Electronic Funds Transfer Volume (in thousands) (c)		41,415			42,068			42,399			41,007			35,322			(2	)		17			125,882			104,318			21
Wholesale Check Volume (in millions)		731			767			771			793			860			(5	)		(15	)		2,269			2,616			(13	)
Wholesale Cards Issued (in thousands) (d)		18,108			17,535			17,146			17,228			16,662			3			9			18,108			16,662			9

Page 19

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
SELECTED BALANCE SHEETS (Average)
Total Assets	$	55,688		$	50,687		$	46,005		$	35,422		$	30,558			10	%		82	%	$	50,829		$	30,526			67	%
Loans		20,602			20,195			18,948			19,030			15,231			2			35			19,921			14,396			38
Liability Balances (e)		236,381			217,514			210,639			193,129			192,518			9			23			221,606			188,330			18
Equity		3,000			3,000			3,000			2,200			2,200			—			36			3,000			2,314			30
Headcount		25,209	#		25,206	#		24,875	#		25,423	#		24,575	#		—			3			25,209	#		24,575	#		3
TSS FIRMWIDE METRICS
Treasury Services Firmwide Revenue (f)	$	1,442		$	1,354		$	1,305		$	1,333		$	1,300			6			11		$	4,101		$	3,909			5
Treasury & Securities Services Firmwide Revenue (f)		2,410			2,375			2,142			2,170			2,102			1			15			6,927			6,389			8
Treasury Services Firmwide Overhead Ratio (g)		54	%		59	%		59	%		56	%		57	%								57	%		56	%
Treasury & Securities Services Firmwide Overhead Ratio (g)		59			60			63			63			63									60			61
Treasury Services Firmwide Liability Balances (Average) (h)	$	201,671		$	189,214		$	186,631		$	168,321		$	162,326			7			24		$	192,560		$	159,897			20
Treasury & Securities Services Firmwide Liability Balances (Average) (h)		324,462			301,701			292,391			272,178			264,527			8			23			306,302			259,477			18

FOOTNOTES

(a)	TSS was 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 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																YEAR-TO-DATE
											3Q07 Change										2007 Change
	3Q07		2Q07		1Q07		4Q06		3Q06		2Q07			3Q06			2007		2006		2006
TS Revenue Reported in CB	$	592	$	569	$	556	$	576	$	551		4	%		7	%	$	1,717	$	1,667		3	%
TS Revenue Reported in Other Lines of Business		70		65		60		57		52		8			35			195		150		30

	TSS firmwide FX revenue, which included FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of the IB, was $144 million for the quarter ended September 30, 2007, and $395 million for year-to-date September 30, 2007.
(g)	Overhead ratios have been calculated based upon 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																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Asset Management, Administration and Commissions	$	1,760		$	1,671		$	1,489		$	1,509		$	1,285			5	%		37	%	$	4,920		$	3,786			30	%
All Other Income		152			173			170			192			120			(12	)		27			495			329			50
Noninterest Revenue		1,912			1,844			1,659			1,701			1,405			4			36			5,415			4,115			32
Net Interest Income		293			293			245			246			231			—			27			831			725			15
TOTAL NET REVENUE		2,205			2,137			1,904			1,947			1,636			3			35			6,246			4,840			29
Provision for Credit Losses		3			(11	)		(9	)		14			(28	)		NM			NM			(17	)		(42	)		60
NONINTEREST EXPENSE
Compensation Expense		848			879			764			750			676			(4	)		25			2,491			2,027			23
Noncompensation Expense		498			456			451			512			417			9			19			1,405			1,201			17
Amortization of Intangibles		20			20			20			22			22			—			(9	)		60			66			(9	)
TOTAL NONINTEREST EXPENSE		1,366			1,355			1,235			1,284			1,115			1			23			3,956			3,294			20
Income Before Income Tax Expense		836			793			678			649			549			5			52			2,307			1,588			45
Income Tax Expense		315			300			253			242			203			5			55			868			586			48
NET INCOME	$	521		$	493		$	425		$	407		$	346			6			51		$	1,439		$	1,002			44
REVENUE BY CLIENT SEGMENT
Private Bank	$	686		$	646		$	560		$	528		$	469			6			46		$	1,892		$	1,379			37
Retail		639			602			527			541			456			6			40			1,768			1,344			32
Institutional		603			617			551			624			464			(2	)		30			1,771			1,348			31
Private Client Services		277			272			266			254			247			2			12			815			769			6
Total Net Revenue	$	2,205		$	2,137		$	1,904		$	1,947		$	1,636			3			35		$	6,246		$	4,840			29
FINANCIAL RATIOS
ROE		52	%		53	%		46	%		46	%		39	%								50	%		38	%
Overhead Ratio		62			63			65			66			68									63			68
Pretax Margin Ratio (a)		38			37			36			33			34									37			33
BUSINESS METRICS
Number of:
Client Advisors		1,680	#		1,582	#		1,533	#		1,506	#		1,489	#		6			13			1,680	#		1,489	#		13
Retirement Planning Services Participants		1,495,000			1,477,000			1,423,000			1,362,000			1,372,000			1			9			1,495,000			1,372,000			9
% of Customer Assets in 4 & 5 Star Funds (b)		55	%		65	%		61	%		58	%		58	%		(15	)		(5	)		55	%		58	%		(5	)
% of AUM in 1st and 2nd Quartiles: (c)
1 Year		47	%		65	%		76	%		83	%		79	%		(28	)		(41	)		47	%		79	%		(41	)
3 Years		73	%		77	%		76	%		77	%		75	%		(5	)		(3	)		73	%		75	%		(3	)
5 Years		76	%		76	%		81	%		79	%		80	%		—			(5	)		76	%		80	%		(5	)
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	53,879		$	51,710		$	45,816		$	46,716		$	43,524			4			24		$	50,498		$	42,597			19
Loans (d)		30,928			28,695			25,640			28,917			26,770			8			16			28,440			25,695			11
Deposits		59,907			55,981			54,816			51,341			51,395			7			17			56,920			50,360			13
Equity		4,000			3,750			3,750			3,500			3,500			7			14			3,834			3,500			10
Headcount		14,510	#		14,108	#		13,568	#		13,298	#		12,761	#		3			14			14,510	#		12,761	#		14
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(5	)	$	(5	)	$	—		$	2		$	(24	)		—			79		$	(10	)	$	(21	)		52
Nonperforming Loans		28			21			34			39			57			33			(51	)		28			57			(51	)
Allowance for Loan Losses		115			105			114			121			112			10			3			115			112			3
Allowance for Lending Related Commitments		6			7			5			6			4			(14	)		50			6			4			50
Net Charge-off (Recovery) Rate		(0.06)	%		(0.07)	%		—	%		0.03	%		(0.36)	%								(0.05)	%		(0.11)	%
Allowance for Loan Losses to Average Loans		0.37			0.37			0.44			0.42			0.42									0.40			0.44
Allowance for Loan Losses to Nonperforming Loans		411			500			335			310			196									411			196
Nonperforming Loans to Average Loans		0.09			0.07			0.13			0.13			0.21									0.10			0.22

(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 and Hong Kong; and Nomura for Japan.
(d)	Held-for-investment prime mortgage loans that transferred from AM to Treasury within the Corporate segment during the third and first quarters of 2007 totaled $1.2 billion and $5.3 billion, respectively. There were no transfers during the second quarter of 2007 or the full year 2006. The transfer had no material impact on the financial results of AM.

Page 21

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

											Sep 30, 2007
											Change
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		June 30			Sep 30
	2007		2007		2007		2006		2006		2007			2006
Assets by Asset Class
Liquidity	$	368	$	333	$	318	$	311	$	281		11	%		31	%
Fixed Income		195		190		180		175		171		3			14
Equities & Balanced		481		467		446		427		392		3			23
Alternatives		119		119		109		100		91		—			31
TOTAL ASSETS UNDER MANAGEMENT		1,163		1,109		1,053		1,013		935		5			24
Custody / Brokerage / Administration / Deposits		376		363		342		334		330		4			14
TOTAL ASSETS UNDER SUPERVISION	$	1,539	$	1,472	$	1,395	$	1,347	$	1,265		5			22
Assets by Client Segment
Institutional	$	603	$	565	$	550	$	538	$	503		7			20
Private Bank		196		185		170		159		150		6			31
Retail		304		300		274		259		228		1			33
Private Client Services		60		59		59		57		54		2			11
TOTAL ASSETS UNDER MANAGEMENT	$	1,163	$	1,109	$	1,053	$	1,013	$	935		5			24
Institutional	$	604	$	566	$	551	$	539	$	505		7			20
Private Bank		423		402		374		357		347		5			22
Retail		399		393		361		343		309		2			29
Private Client Services		113		111		109		108		104		2			9
TOTAL ASSETS UNDER SUPERVISION	$	1,539	$	1,472	$	1,395	$	1,347	$	1,265		5			22
Assets by Geographic Region
U.S. / Canada	$	745	$	700	$	664	$	630	$	596		6			25
International		418		409		389		383		339		2			23
TOTAL ASSETS UNDER MANAGEMENT	$	1,163	$	1,109	$	1,053	$	1,013	$	935		5			24
U.S. / Canada	$	1,022	$	971	$	929	$	889	$	855		5			20
International		517		501		466		458		410		3			26
TOTAL ASSETS UNDER SUPERVISION	$	1,539	$	1,472	$	1,395	$	1,347	$	1,265		5			22
Mutual Funds Assets by Asset Class
Liquidity	$	308	$	268	$	257	$	255	$	221		15			39
Fixed Income		46		49		48		46		45		(6	)		2
Equity		235		235		219		206		184		—			28
TOTAL MUTUAL FUND ASSETS	$	589	$	552	$	524	$	507	$	450		7			31

Page 22

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

	QUARTERLY TRENDS											YEAR-TO-DATE
	3Q07			2Q07		1Q07		4Q06		3Q06		2007		2006
ASSETS UNDER SUPERVISION (continued)
Assets Under Management Rollforward
Beginning Balance	$	1,109		$	1,053	$	1,013	$	935	$	898	$	1,013	$	847
Flows:
Liquidity		33			12		7		24		15		52		20
Fixed Income		(2	)		6		2		1		4		6		10
Equities, Balanced & Alternatives		2			12		10		5		3		24		29
Market / Performance / Other Impacts		21			26		21		48		15		68		29
TOTAL ASSETS UNDER MANAGEMENT	$	1,163		$	1,109	$	1,053	$	1,013	$	935	$	1,163	$	935
Assets Under Supervision Rollforward
Beginning Balance	$	1,472		$	1,395	$	1,347	$	1,265	$	1,213	$	1,347	$	1,149
Net Asset Flows		41			38		27		31		26		106		71
Market / Performance / Other Impacts		26			39		21		51		26		86		45
TOTAL ASSETS UNDER SUPERVISION	$	1,539		$	1,472	$	1,395	$	1,347	$	1,265	$	1,539	$	1,265

Page 23

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Principal Transactions (a) (b)	$	1,082		$	1,372		$	1,325		$	236		$	195			(21	)%		455	%	$	3,779		$	945			300	%
Securities Gains (Losses) (c)		128			(227	)		(8	)		18			24			NM			433			(107	)		(626	)		83
All Other Income		70			90			68			27			125			(22	)		(44	)		228			458			(50	)
Noninterest Revenue		1,280			1,235			1,385			281			344			4			272			3,900			777			402
Net Interest Income (Expense)		(279	)		(173	)		(117	)		(87	)		(55	)		(61	)		(407	)		(569	)		(957	)		41
TOTAL NET REVENUE		1,001			1,062			1,268			194			289			(6	)		246			3,331			(180	)		NM
Provision for Credit Losses		(31	)		3			3			(2	)		1			NM			NM			(25	)		1			NM
NONINTEREST EXPENSE
Compensation Expense (b)		569			695			776			434			737			(18	)		(23	)		2,040			2,192			(7	)
Noncompensation Expense (d)		674			818			556			678			731			(18	)		(8	)		2,048			1,679			22
Merger Costs		61			64			62			100			48			(5	)		27			187			205			(9	)
Subtotal		1,304			1,577			1,394			1,212			1,516			(17	)		(14	)		4,275			4,076			5
Net Expenses Allocated to Other Businesses		(1,059	)		(1,075	)		(1,040	)		(1,037	)		(1,035	)		1			(2	)		(3,174	)		(3,104	)		(2	)
TOTAL NONINTEREST EXPENSE		245			502			354			175			481			(51	)		(49	)		1,101			972			13
Income (Loss) from Continuing Operations before Income Tax Expense		787			557			911			21			(193	)		41			NM			2,255			(1,153	)		NM
Income Tax Expense (Benefit) (e)		274			175			280			(520	)		(159	)		57			NM			729			(659	)		NM
Income (Loss) from Continuing Operations		513			382			631			541			(34	)		34			NM			1,526			(494	)		NM
Income from Discontinued Operations (after-tax)(f)		—			—			—			620			65			—			NM			—			175			NM
NET INCOME (LOSS)	$	513		$	382		$	631		$	1,161		$	31			34			NM		$	1,526		$	(319	)		NM
MEMO:
TOTAL NET REVENUE
Private Equity (a)(b)	$	733		$	1,293		$	1,253		$	250		$	188			(43	)		290		$	3,279		$	892			268
Treasury and Other Corporate (c)		268			(231	)		15			(56	)		101			NM			165			52			(1,072	)		NM
TOTAL NET REVENUE	$	1,001		$	1,062		$	1,268		$	194		$	289			(6	)		246		$	3,331		$	(180	)		NM
NET INCOME (LOSS)
Private Equity (a)	$	409		$	702		$	698		$	136		$	95			(42	)		331		$	1,809		$	491			268
Treasury and Other Corporate (c) (d) (e)		142			(280	)		(29	)		467			(99	)		NM			NM			(167	)		(858	)		81
Merger Costs		(38	)		(40	)		(38	)		(62	)		(30	)		5			(27	)		(116	)		(127	)		9
Income (Loss) from Continuing Operations		513			382			631			541			(34	)		34			NM			1,526			(494	)		NM
Income from Discontinued Operations (after-tax)		—			—			—			620			65			—			NM			—			175			NM
TOTAL NET INCOME (LOSS)	$	513		$	382		$	631		$	1,161		$	31			34			NM		$	1,526		$	(319	)		NM
Headcount		22,864	#		23,532	#		23,702	#		23,242	#		25,748	#		(3	)		(11	)		22,864	#		25,748	#		(11	)

(a)	The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see the Firm’s June 30, 2007, Form 10-Q.
(b)	Quarters ending in 2007 included the reclassification of certain private equity carried interest from net revenue to compensation expense.
(c)	Included a gain of $115 million in the third quarter of 2007 related to the sale of MasterCard shares.
(d)	Included insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material proceedings of $137 million and $17 million for the quarters ended December 31, 2006, and September 30, 2006, respectively. Year-to-date insurance recoveries were $375 million for 2006.
(e)	Included a tax benefit of $359 million related to audit resolutions in the fourth quarter of 2006.
(f)	On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses 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 were reported as discontinued operations for 2006. Included $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																				YEAR-TO-DATE
															3Q07 Change												2007 Change
	3Q07		2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
SUPPLEMENTAL
TREASURY
Securities Gains (Losses) (a)	$	126	$	(227	)	$	(8	)	$	7		$	24			NM	%		425	%	$	(109	)	$	(626	)		83	%
Investment Securities Portfolio (Average)		85,470		87,760			86,436			80,616			68,619			(3	)		25			86,552			57,545			50
Investment Securities Portfolio (Ending)		86,495		86,821			88,681			82,091			77,116			—			12			86,495			77,116			12
Mortgage Loans (Average) (b)		29,854		26,830			25,244			—			—			11			NM			27,326			—			NM
Mortgage Loans (Ending) (b)		32,804		27,299			26,499			—			—			20			NM			32,804			—			NM
PRIVATE EQUITY
Private Equity Gains (Losses)
Direct Investments
Realized Gains	$	504	$	985		$	723		$	254		$	194			(49	)		160		$	2,212		$	969			128
Write-ups / (Write-downs) (c)		222		209			648			12			(21	)		6			NM			1,079			(85	)		NM
Mark-to-Market Gains (Losses)		5		81			(127	)		(6	)		25			(94	)		(80	)		(41	)		78			NM
Total Direct Investments		731		1,275			1,244			260			198			(43	)		269			3,250			962			238
Third-Party Fund Investments		35		53			34			27			28			(34	)		25			122			50			144
Total Private Equity Gains (d)	$	766	$	1,328		$	1,278		$	287		$	226			(42	)		239		$	3,372		$	1,012			233
Private Equity Portfolio Information
Direct Investments
Publicly-Held Securities
Carrying Value	$	409	$	465		$	389		$	587		$	696			(12	)		(41	)
Cost		291		367			366			451			539			(21	)		(46	)
Quoted Public Value		560		600			493			831			1,022			(7	)		(45	)
Privately-Held Direct Securities
Carrying Value		5,336		5,247			5,294			4,692			4,241			2			26
Cost		5,003		5,228			5,574			5,795			5,482			(4	)		(9	)
Third-Party Fund Investments
Carrying Value		839		812			744			802			682			3			23
Cost		1,078		1,067			1,026			1,080			1,000			1			8
Total Private Equity Portfolio — Carrying Value	$	6,584	$	6,524		$	6,427		$	6,081		$	5,619			1			17
Total Private Equity Portfolio — Cost	$	6,372	$	6,662		$	6,966		$	7,326		$	7,021			(4	)		(9	)

(a)	Included a gain of $115 million in the third quarter of 2007 related to the sale of MasterCard shares. Losses reflected repositioning of the Treasury investment securities portfolio.
(b)	Held-for-investment prime mortgage loans were transferred from RFS and AM to the Corporate segment for risk management and reporting purposes. The transfer has no material impact on the financial results of Corporate.
(c)	The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see the Firm’s June 30, 2007, Form 10-Q. Quarters ending in 2007 included the reclassification of certain private equity carried interest from net revenue to compensation expense.
(d)	Included in Principal Transactions revenue.

Page 25

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

											Sep 30, 2007
											Change
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		June 30			Sep 30
	2007		2007		2007		2006		2006		2007			2006
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	126,336	$	111,082	$	108,627	$	118,686	$	123,791		14	%		2	%
Loans — Non-U.S.		71,392		70,886		59,567		65,056		55,612		1			28
TOTAL WHOLESALE LOANS — REPORTED (b)		197,728		181,968		168,194		183,742		179,403		9			10
CONSUMER (c)
Home Equity		93,026		90,989		87,741		85,730		80,399		2			16
Mortgage (includes RFS and Corporate)		47,730		43,114		46,574		59,668		60,075		11			(21	)
Auto Loans and Leases		40,871		41,231		40,937		41,009		40,310		(1	)		1
Credit Card — Reported		79,409		80,495		78,173		85,881		78,587		(1	)		1
Other Loans		27,556		27,240		28,146		27,097		24,770		1			11
TOTAL CONSUMER LOANS — REPORTED (d)		288,592		283,069		281,571		299,385		284,141		2			2
TOTAL LOANS — REPORTED		486,320		465,037		449,765		483,127		463,544		5			5
Credit Card — Securitizations		69,643		67,506		68,403		66,950		65,245		3			7
TOTAL LOANS — MANAGED		555,963		532,543		518,168		550,077		528,789		4			5
Derivative Receivables		64,592		59,038		49,647		55,601		58,265		9			11
TOTAL CREDIT-RELATED ASSETS		620,555		591,581		567,815		605,678		587,054		5			6
Wholesale Lending-Related Commitments		468,145		435,718		412,382		391,424		374,417		7			25
TOTAL	$	1,088,700	$	1,027,299	$	980,197	$	997,102	$	961,471		6			13
Memo: Total by Category
Total Wholesale Exposure (e)	$	730,465	$	676,724	$	630,223	$	630,767	$	612,085		8			19
Total Consumer Managed Loans (f)		358,235		350,575		349,974		366,335		349,386		2			3
Total	$	1,088,700	$	1,027,299	$	980,197	$	997,102	$	961,471		6			13
Risk Profile of Wholesale Credit Exposure:
Investment-Grade (g)	$	548,663	$	532,134	$	487,309	$	490,185	$	481,249		3			14
Noninvestment-Grade: (g)
Noncriticized		155,172		127,818		121,981		113,049		106,831		21			45
Criticized Performing		5,605		4,964		5,090		4,599		4,169		13			34
Criticized Nonperforming		414		252		263		427		674		64			(39	)
Total Noninvestment-Grade		161,191		133,034		127,334		118,075		111,674		21			44
Loans at Fair Value & Loans Held-for-Sale		20,611		11,556		15,580		22,256		18,889		78			9
Purchased Nonperforming Wholesale Loans (h)		—		—		—		251		273		—			NM
Total Wholesale Exposure	$	730,465	$	676,724	$	630,223	$	630,767	$	612,085		8			19

(a)	Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management.
(b)	Includes Loans at fair value & loans held-for sale. As a result of the adoption of SFAS 159 in the first quarter of 2007, $11.7 billion of loans were reclassified to Trading assets and excluded from wholesale loans reported.
(c)	Includes Retail Financial Services, Card Services and residential mortgage loans reported in the Corporate segment to be risk managed by the Chief Investment Office.
(d)	As a result of the adoption of SFAS 159 in the first quarter of 2007, $11.6 billion of consumer loans were reclassified to Trading assets and excluded from consumer loans reported.
(e)	Represents Total Wholesale Loans, Derivative Receivables and Wholesale Lending-Related Commitments.
(f)	Represents Total Consumer Loans plus Credit Card Securitizations, excluding consumer lending-related commitments.
(g)	Excludes Loans at fair value & loans held-for-sale.
(h)	Represents distressed held-for-sale wholesale loans purchased as part of IB’s proprietary activities, which were excluded from nonperforming assets. During the first quarter of 2007, the Firm elected the fair value option of accounting for this portfolio of nonperforming loans. These loans were classified as trading assets for quarters ending on or after March 31, 2007.

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

Page 26

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

																Sep 30, 2007
																Change
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30
	2007			2007			2007			2006			2006			2007			2006
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS (a)
Loans — U.S.	$	401		$	190		$	205		$	309		$	486			111	%		(17	)%
Loans — Non-U.S.		26			38			62			82			170			(32	)		(85	)
TOTAL WHOLESALE LOANS-REPORTED		427			228			267			391			656			87			(35	)
CONSUMER LOANS (b)
Home Equity		576			483			459			454			400			19			44
Mortgage (includes RFS and Corporate)		1,224			1,034			960			769			588			18			108
Auto Loans and Leases		92			81			95			132			130			14			(29	)
Credit Card — Reported		7			8			9			9			10			(13	)		(30	)
Other Loans		336			335			326			322			286			—			17
TOTAL CONSUMER LOANS-REPORTED (c)		2,235			1,941			1,849			1,686			1,414			15			58
TOTAL LOANS REPORTED		2,662			2,169			2,116			2,077			2,070			23			29
Derivative Receivables		34			30			36			36			35			13			(3	)
Assets Acquired in Loan Satisfactions		485			387			269			228			195			25			149
TOTAL NONPERFORMING ASSETS	$	3,181		$	2,586		$	2,421		$	2,341		$	2,300			23			38
TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.55	%		0.47	%		0.47	%		0.43	%		0.45	%
NONPERFORMING ASSETS BY LOB
Investment Bank	$	325		$	119		$	128		$	269		$	456			173			(29	)
Retail Financial Services		2,387			2,097			1,910			1,902			1,595			14			50
Card Services		7			8			9			9			10			(13	)		(30	)
Commercial Banking		136			137			142			122			160			(1	)		(15	)
Treasury & Securities Services		—			—			—			—			22			—			NM
Asset Management		28			21			35			39			57			33			(51	)
Corporate (d)		298			204			197			—			—			46			NM
TOTAL	$	3,181		$	2,586		$	2,421		$	2,341		$	2,300			23			38

(a)	Included nonperforming loans held-for-sale of $75 million, $25 million, $4 million, $4 million, and $21 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively. Excluded purchased held-for-sale wholesale loans.
(b)	There were no nonperforming loans held-for-sale at September 30, 2007, while there were $215 million, $112 million, $116 million, and $24 million at June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively.
(c)	Excluded 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, $1.3 billion, $1.2 billion, and $1.1 billion at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively, and (2) education loans that are 90 days past due and still accruing, which were insured by U.S. government agencies under the Federal Family Education Loan Program of $241 million, $200 million, $178 million, $219 million, and $189 million for the quarters ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.
(d)	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																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
GROSS CHARGE-OFFS
Wholesale Loans	$	101		$	13		$	17		$	76		$	48			NM	%		110	%	$	131		$	110			19	%
Consumer (includes RFS and Corporate)		403			321			241			266			186			26			117			965			536			80
Credit Card — Reported		911			877			847			801			777			4			17			2,635			2,095			26
Total Loans — Reported		1,415			1,211			1,105			1,143			1,011			17			40			3,731			2,741			36
Credit Card — Securitizations		679			704			702			694			702			(4	)		(3	)		2,085			1,885			11
Total Loans — Managed		2,094			1,915			1,807			1,837			1,713			9			22			5,816			4,626			26
RECOVERIES
Wholesale Loans		19			42			23			48			59			(55	)		(68	)		84			160			(48	)
Consumer (includes RFS and Corporate)		49			48			53			52			58			2			(16	)		150			174			(14	)
Credit Card — Reported		126			136			126			113			104			(7	)		21			388			295			32
Total Loans — Reported		194			226			202			213			221			(14	)		(12	)		622			629			(1	)
Credit Card — Securitizations		101			114			109			101			95			(11	)		6			324			268			21
Total Loans — Managed		295			340			311			314			316			(13	)		(7	)		946			897			5
NET CHARGE-OFFS
Wholesale Loans		82			(29	)		(6	)		28			(11	)		NM			NM			47			(50	)		NM
Consumer (includes RFS and Corporate)		354			273			188			214			128			30			177			815			362			125
Credit Card — Reported		785			741			721			688			673			6			17			2,247			1,800			25
Total Loans — Reported		1,221			985			903			930			790			24			55			3,109			2,112			47
Credit Card — Securitizations		578			590			593			593			607			(2	)		(5	)		1,761			1,617			9
Total Loans — Managed	$	1,799		$	1,575		$	1,496		$	1,523		$	1,397			14			29		$	4,870		$	3,729			31
NET CHARGE-OFF RATES — ANNUALIZED
Wholesale Loans (a)		0.19	%		(0.07	)%		(0.02	)%		0.07	%		(0.03	)%								0.04	%		(0.04	)%
Consumer (includes RFS and Corporate) (b)		0.70			0.57			0.47			0.45			0.27									0.56			0.26
Credit Card — Reported		3.89			3.76			3.57			3.35			3.48									3.74			3.38
Total Loans — Reported (a) (b)		1.07			0.90			0.85			0.84			0.74									0.94			0.69
Credit Card — Securitizations		3.34			3.46			3.56			3.57			3.70									3.45			3.19
Total Loans — Managed (a) (b)		1.37			1.25			1.22			1.20			1.13									1.28			1.05
Memo: Credit Card — Managed		3.64			3.62			3.57			3.45			3.58									3.61			3.29

(a)

Average wholesale Loans at fair value & loans held-for-sale were $17.8 billion, $15.5 billion, $14.2 billion, $24.5 billion, and $24.4 billion for the quarters ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively, and $15.8 billion and $21.4 billion for year-to-date 2007 and 2006, respectively. These amounts were excluded when calculating the net charge-off rates.

(b)

Average consumer (excluding card) Loans at fair value & loans held-for-sale were $5.4 billion, $11.7 billion, $21.7 billion, $21.2 billion, and $14.0 billion for the quarters ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively, and $12.9 billion and $14.4 billion for year-to-date 2007 and 2006, respectively. These amounts were excluded when calculating the net charge-off rates.

Page 28

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	7,633		$	7,300		$	7,279		$	7,056		$	7,076			5	%		8	%	$	7,279		$	7,090			3	%
Net Charge-Offs		(1,221	)		(985	)		(903	)		(930	)		(790	)		(24	)		(55	)		(3,109	)		(2,112	)		(47	)
Provision for Loan Losses		1,693			1,316			979			1,085			768			29			120			3,988			2,068			93
Other (a) (b)		8			2			(55	)		68			2			300			300			(45	)		10			NM
Ending Balance	$	8,113		$	7,633		$	7,300		$	7,279		$	7,056			6			15		$	8,113		$	7,056			15
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	766		$	553		$	524		$	468		$	424			39			81		$	524		$	400			31
Provision for Lending-Related Commitments		92			213			29			49			44			(57	)		109			334			68			391
Other (b)		—			—			—			7			—			—			—			—			—			—
Ending Balance	$	858		$	766		$	553		$	524		$	468			12			83		$	858		$	468			83
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset Specific	$	53		$	52		$	54		$	51		$	101			2			(48	)
Formula — Based		2,810			2,650			2,639			2,660			2,473			6			14
Total Wholesale		2,863			2,702			2,693			2,711			2,574			6			11
Consumer (c)		5,250			4,931			4,607			4,568			4,482			6			17
Total Allowance for Loan Losses		8,113			7,633			7,300			7,279			7,056			6			15
Allowance for Lending-Related Commitments		858			766			553			524			468			12			83
Total Allowance for Credit Losses	$	8,971		$	8,399		$	7,853		$	7,803		$	7,524			7			19
Wholesale Allowance for Loan Losses to Total Wholesale Loans (d)		1.62	%		1.59	%		1.76	%		1.68	%		1.61	%
Consumer Allowance for Loan Losses to Total Consumer Loans (e)		1.84			1.79			1.72			1.71			1.68
Allowance for Loan Losses to Total Loans (d) (e)		1.76			1.71			1.74			1.70			1.65
Allowance for Loan Losses to Total Nonperforming Loans (f)		314			396			365			372			348
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,112		$	1,037		$	1,037		$	1,052		$	1,010			7			10
Retail Financial Services		2,105			1,772			1,453			1,392			1,306			19			61
Card Services		3,107			3,096			3,092			3,176			3,176			—			(2	)
Commercial Banking		1,623			1,551			1,531			1,519			1,431			5			13
Treasury & Securities Services		13			9			11			7			9			44			44
Asset Management		115			105			114			121			112			10			3
Corporate (g)		38			63			62			12			12			(40	)		217
Total	$	8,113		$	7,633		$	7,300		$	7,279		$	7,056			6			15

(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, Card Services and Corporate.
(d)	Wholesale Loans at fair value & loans held-for-sale were $20.6 billion, $11.6 billion, $15.6 billion, $22.5 billion, and $19.2 billion at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(e)	Consumer Loans held-for-sale were $3.9 billion, $8.3 billion, $13.4 billion, $32.7 billion, and $17.0 billion at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(f)	Nonperforming Loans held-for-sale were $75 million, $240 million, $116 million, $120 million, and $45 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(g)	March 31, 2007 included $50 million associated with mortgages originated by RFS and AM and transferred to Corporate to be risk managed by the Chief Investment Office.

Page 29

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	146		$	(13	)	$	35		$	50		$	(36	)		NM	%		NM	%	$	168		$	62			171	%
Commercial Banking		98			10			17			86			55			NM			78			125			47			166
Treasury & Securities Services		3			(1	)		4			(2	)		1			NM			200			6			1			500
Asset Management		4			(13	)		(8	)		12			(29	)		NM			NM			(17	)		(42	)		60
Corporate		—			—			—			(2	)		1			—			NM			—			1			NM
Total Wholesale		251			(17	)		48			144			(8	)		NM			NM			282			69			309
Retail Financial Services		688			589			292			253			113			17			NM			1,569			299			425
Card Services		785			741			636			688			663			6			18			2,162			1,700			27
Corporate (a)		(31	)		3			3			—			—			NM			NM			(25	)		—			NM
Total Consumer		1,442			1,333			931			941			776			8			86			3,706			1,999			85
Total Provision for Loan Losses	$	1,693		$	1,316		$	979		$	1,085		$	768			29			120		$	3,988		$	2,068			93
LENDING-RELATED COMMITMENTS
Investment Bank	$	81		$	177		$	28		$	13		$	43			(54	)		88		$	286		$	66			333
Commercial Banking		14			35			—			25			(1	)		(60	)		NM			49			2			NM
Treasury & Securities Services		6			1			2			—			—			500			NM			9			—			NM
Asset Management		(1	)		2			(1	)		2			1			NM			NM			—			—			—
Total Wholesale		100			215			29			40			43			(53	)		133			344			68			406
Retail Financial Services		(8	)		(2	)		—			9			1			(300	)		NM			(10	)		—			NM
Card Services		—			—			—			—			—			—			—			—			—			—
Total Consumer		(8	)		(2	)		—			9			1			(300	)		NM			(10	)		—			NM
Total Provision for Lending-Related Commitments	$	92		$	213		$	29		$	49		$	44			(57	)		109		$	334		$	68			391
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	227		$	164		$	63		$	63		$	7			38			NM		$	454		$	128			255
Commercial Banking		112			45			17			111			54			149			107			174			49			255
Treasury & Securities Services		9			—			6			(2	)		1			NM			NM			15			1			NM
Asset Management		3			(11	)		(9	)		14			(28	)		NM			NM			(17	)		(42	)		60
Corporate		—			—			—			(2	)		1			—			NM			—			1			NM
Total Wholesale		351			198			77			184			35			77			NM			626			137			357
Retail Financial Services		680			587			292			262			114			16			496			1,559			299			421
Card Services		785			741			636			688			663			6			18			2,162			1,700			27
Corporate (a)		(31	)		3			3			—			—			NM			NM			(25	)		—			NM
Total Consumer		1,434			1,331			931			950			777			8			85			3,696			1,999			85
Total Provision for Credit Losses		1,785			1,529			1,008			1,134			812			17			120			4,322			2,136			102
Securitized Credit Losses		578			590			593			593			607			(2	)		(5	)		1,761			1,617			9
Managed Provision for Credit Losses	$	2,363		$	2,119		$	1,601		$	1,727		$	1,419			12			67		$	6,083		$	3,753			62

(a) 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																					YEAR-TO-DATE
																3Q07 Change												2007 Change
	3Q07			2Q07			1Q07			4Q06			3Q06			2Q07			3Q06			2007			2006			2006
COMMON SHARES OUTSTANDING
Weighted-Average Basic Shares Outstanding		3,375.9	#		3,415.1	#		3,456.4	#		3,465.3	#		3,468.6	#		(1	)%		(3	)%		3,415.8	#		3,471.7	#		(2	)%
Weighted-Average Diluted Shares Outstanding		3,477.7			3,521.6			3,559.5			3,578.6			3,574.0			(1	)		(3	)		3,519.6			3,572.3			(1	)
Common Shares Outstanding — at Period End		3,358.8			3,398.5			3,416.3			3,461.7			3,467.5			(1	)		(3	)		3,358.8			3,467.5			(3	)
Cash Dividends Declared per Share	$	0.38		$	0.38		$	0.34		$	0.34		$	0.34			—			12		$	1.10		$	1.02			8
Book Value per Share		35.72			35.08			34.45			33.45			32.75			2			9			35.72			32.75			9
Dividend Payout (a)		39	%		31	%		25	%		27	%		37	%								31	%		37	%
NET INCOME	$	3,373		$	4,234		$	4,787		$	4,526		$	3,297			(20	)		2		$	12,394		$	9,918			25
Preferred Dividends		—			—			—			—			—			—			—			—			4			NM
Net Income Applicable to Common Stock	$	3,373		$	4,234		$	4,787		$	4,526		$	3,297			(20	)		2		$	12,394		$	9,914			25
INCOME PER SHARE
Basic Earnings per Share
Income from continuing operations	$	1.00		$	1.24		$	1.38		$	1.13		$	0.93			(19	)		8		$	3.63		$	2.81			29
Net Income		1.00			1.24			1.38			1.31			0.95			(19	)		5			3.63			2.86			27
Diluted Earnings per Share
Income from continuing operations	$	0.97		$	1.20		$	1.34		$	1.09		$	0.90			(19	)		8		$	3.52		$	2.73			29
Net Income		0.97			1.20			1.34			1.26			0.92			(19	)		5			3.52			2.78			27
SHARE PRICE
High	$	50.48		$	53.25		$	51.95		$	49.00		$	47.49			(5	)		6		$	53.25		$	47.49			12
Low		42.16			47.70			45.91			45.51			40.40			(12	)		4			42.16			37.88			11
Close		45.82			48.45			48.38			48.30			46.96			(5	)		(2	)		45.82			46.96			(2	)
Market Capitalization		153,901			164,659			165,280			167,199			162,835			(7	)		(5	)		153,901			162,835			(5	)
STOCK REPURCHASE PROGRAM (b)
Aggregate Repurchases	$	2,135.4		$	1,875.3		$	4,000.9		$	1,000.3		$	900.0			14			137		$	8,011.6		$	2,935.8			173
Common Shares Repurchased		47.0	#		36.7	#		80.9	#		21.1	#		20.0	#		28			135			164.6	#		69.5	#		137
Average Purchase Price	$	45.42		$	51.13		$	49.45		$	47.33		$	44.88			(11	)		1		$	48.67		$	42.22			15
CAPITAL RATIOS
Tier 1 Capital	$	86,096	(c)	$	85,096		$	82,538		$	81,055		$	79,830			1			8
Total Capital		128,543	(c)		122,276			115,142			115,265			111,670			5			15
Risk-Weighted Assets		1,027,493	(c)		1,016,031			972,813			935,909			926,455			1			11
Adjusted Average Assets		1,423,171	(c)		1,376,727			1,324,145			1,308,699			1,257,364			3			13
Tier 1 Capital Ratio		8.4	%(c)		8.4	%		8.5	%		8.7	%		8.6	%
Total Capital Ratio		12.5	(c)		12.0			11.8			12.3			12.1
Tier 1 Leverage Ratio		6.0	(c)		6.2			6.2			6.2			6.3
INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	45,335		$	45,254		$	45,063		$	45,186		$	43,372			—			5
Mortgage Servicing Rights		9,114			9,499			7,937			7,546			7,378			(4	)		24
Purchased Credit Card Relationships		2,427			2,591			2,758			2,935			2,982			(6	)		(19	)
All Other Intangibles		3,959			4,103			4,205			4,371			4,078			(4	)		(3	)
Total Intangibles	$	60,835		$	61,447		$	59,963		$	60,038		$	57,810			(1	)		5

(a)	Based on Net income amounts.
(b)	Excludes commission costs.
(c)	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 46(R): 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 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.

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 and other.

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 (Revenue): Realized and unrealized gains and losses from trading activities (including physical commodities inventories that are accounted for at the lower of cost or fair value) and changes in fair value associated with instruments held by the Investment Bank for which the SFAS 159 fair value option was elected. Principal transactions revenue also include private equity gains and losses.

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 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 within income tax expense.

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

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. In addition, Credit portfolio revenue includes 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.

Retail Financial Services (continued)

MORTGAGE BANKING’S ORIGINATION CHANNELS COMPRISE THE FOLLOWING:

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

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

3. Correspondent (including negotiated transactions) — Correspondents are banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.

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

Retail Financial Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN REGIONAL BANKING:

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

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

MORTGAGE BANKING REVENUES COMPRISE THE FOLLOWING:

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

2. Net mortgage servicing revenue

     a) Servicing revenue represents all gross income earned from servicing third-party mortgage loans including stated service fees, excess service fees, late fees, and other ancillary fees.

     b) Changes in MSR asset fair value due to:

          — market-based inputs such as interest rates and volatility, as well as updates to valuation assumptions used in the MSR valuation model.

          — servicing portfolio runoff (or time decay)

     c) Derivative valuation adjustments and other, which represents changes in the fair value of derivative instruments used to offset the impact of changes in the market-based inputs to the MSR valuation model.

3. MSR risk management results include changes in the MSR asset fair value due to inputs or assumptions and derivative valuation adjustments and other.

Card Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN CARD SERVICES:

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

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

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

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

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

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

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN COMMERCIAL BANKING:

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

2. IB revenues, gross — Represents total revenue related to investment banking products sold to CB clients.

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.

Treasury & Securities Services

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

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN TREASURY & SECURITIES SERVICES:

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

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