EX-99.1

JPMorgan Chase & Co.

Revised Financial Disclosure

Commencing October 1, 2008, JPMorgan Chase & Co. (“JPMC” or the “Firm”) revised certain of its financial disclosures to reflect more closely the manner in which its business segments are now being managed. The revisions are reflected in the Firm’s financial reports and disclosures commencing with its report of financial results for the fourth quarter of 2008.

In summary, the changes that have been made in financial reporting disclosure are as follows:

1. Retail Financial Services (“RFS”)—RFS has been reorganized, commencing October 1, 2008, into the following two business segments: Retail Banking and Consumer Lending. The chart on the following page provides a mapping of the previous segment reporting to the new RFS segments.

•

All prior periods have been reclassified to conform to current period presentation.

2. Corporate/Private Equity & RFS—Prime mortgage balances that were originated in RFS and, prior to October 1, 2008, had been held in the Corporate/Private Equity segment have been transferred, effective October 1, 2008, to RFS and are included, for financial reporting and risk management purposes, in the Consumer Lending segment of RFS.

•

All prior periods have been reclassified to conform to current period presentation.

3. Washington Mutual—As previously disclosed, the acquisition of the banking operations of Washington Mutual Bank (“WaMu”) from the Federal Deposit Insurance Corporation on September 25, 2008, did not have a material impact on the results of operations of the Firm for the quarter ended September 30, 2008, except with respect to the charge to conform WaMu’s loan loss reserves and the extraordinary gain related to the transaction, both of which were reflected in the Corporate/Private Equity segment. Commencing October 1, 2008, the assets acquired and liabilities assumed from WaMu were assigned to the appropriate lines of business, primarily RFS, Card Services and Commercial Banking, as well as to the Corporate/Private Equity segment. The results of operations resulting from such assets and liabilities have been reflected in each respective line of business starting in the fourth quarter of 2008. Disclosures related to these assets and liabilities have been enhanced as follows:

•		WaMu balance sheet items at September 30, 2008, have been reclassified to the appropriate business segments and are reflected in end of period third quarter balance sheet amounts.
•		In addition:

RFS—the Consumer Lending loan balance and other balance-related credit data has been enhanced to provide detail on credit-impaired versus non-credit impaired balances.

Card Services—Managed loan balances and selected key statistics for WaMu and heritage JPMorgan Chase-only are provided as supplemental information.

Commercial Banking—Commercial Term Lending has been added as a client segment and includes WaMu’s multi-family and commercial mortgage business. All other WaMu-related commercial bank activities are reported in the Real Estate Banking or Other segments of Commercial Banking.

4. Additional line item disclosures have been provided in this financial supplement as follows:

•		RFS—Retail Banking deposit margin
•		Commercial Banking—Nonperforming assets

Page 2

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
SELECTED INCOME STATEMENT DATA
Total net revenue (a)	$	14,737		$	18,399		$	16,890		$	17,384		$	16,112		$	18,908		$	18,968		$	71,372		$	61,999
Provision for credit losses (b)		5,787			3,455			4,424			2,542			1,785			1,529			1,008			6,864			3,270
Total noninterest expense		11,137			12,177			8,931			10,720			9,327			11,028			10,628			41,703			38,843

Income (loss) from continuing operations		(54	)		2,003			2,373			2,971			3,373			4,234			4,787			15,365			13,649
Income from discontinued operations (c)		—			—			—			—			—			—			—			—			795
Extraordinary gain (d)		581			—			—			—			—			—			—			—			—
Net income		527			2,003			2,373			2,971			3,373			4,234			4,787			15,365			14,444

PER COMMON SHARE:
Basic Earnings
Income (loss) from continuing operations		(0.06	)		0.56			0.70			0.88			1.00			1.24			1.38			4.51			3.93
Net income		0.11			0.56			0.70			0.88			1.00			1.24			1.38			4.51			4.16

Diluted Earnings
Income (loss) from continuing operations		(0.06	)		0.54			0.68			0.86			0.97			1.20			1.34			4.38			3.82
Net income		0.11			0.54			0.68			0.86			0.97			1.20			1.34			4.38			4.04

Cash dividends declared		0.38			0.38			0.38			0.38			0.38			0.38			0.34			1.48			1.36
Book value		36.95			37.02			36.94			36.59			35.72			35.08			34.45			36.59			33.45
Closing share price		46.70			34.31			42.95			43.65			45.82			48.45			48.38			43.65			48.30
Market capitalization		174,048			117,881			146,066			146,986			153,901			164,659			165,280			146,986			167,199

COMMON SHARES OUTSTANDING:
Weighted-average diluted shares outstanding		3,444.6	(k)		3,531.0			3,494.7			3,471.8			3,477.7			3,521.6			3,559.5			3,507.6			3,573.9
Common shares outstanding at period-end (e)		3,726.9			3,435.7			3,400.8			3,367.4			3,358.8			3,398.5			3,416.3			3,367.4			3,461.7

FINANCIAL RATIOS: (f)
Income (loss) from continuing operations:
Return on common equity (“ROE”)		(1	)%		6	%		8	%		10	%		11	%		14	%		17	%		13	%		12	%
Return on equity-goodwill (“ROE-GW”) (g)		(1	)		10			12			15			18			23			27			21			20
Return on assets (“ROA”) (h)		(0.01	)		0.48			0.61			0.77			0.91			1.19			1.41			1.06			1.04
Net income:
ROE		1			6			8			10			11			14			17			13			13
ROE-GW (g)		2			10			12			15			18			23			27			21			22
ROA		0.12			0.48			0.61			0.77			0.91			1.19			1.41			1.06			1.10

CAPITAL RATIOS:
Tier 1 capital ratio		8.9			9.2			8.3			8.4			8.4			8.4			8.5			8.4			8.7
Total capital ratio		12.6			13.4			12.5			12.6			12.5			12.0			11.8			12.6			12.3

SELECTED BALANCE SHEET DATA (Period-end)
Total assets	$	2,251,469		$	1,775,670		$	1,642,862		$	1,562,147		$	1,479,575		$	1,458,042		$	1,408,918		$	1,562,147		$	1,351,520
Wholesale loans		288,445			229,359			231,297			213,076			197,728			181,968			168,194			213,076			183,742
Consumer loans		472,936			308,670			305,759			306,298			288,592			283,069			281,571			306,298			299,385
Deposits		969,783			722,905			761,626			740,728			678,091			651,370			626,428			740,728			638,788
Common stockholders’ equity		137,691			127,176			125,627			123,221			119,978			119,211			117,704			123,221			115,790

Headcount (i)		228,452			195,594			182,166			180,667			179,847			179,664			176,314			180,667			174,360

LINE OF BUSINESS NET INCOME (LOSS)
Investment Bank	$	882		$	394		$	(87	)	$	124		$	296		$	1,179		$	1,540		$	3,139		$	3,674
Retail Financial Services		64			503			(311	)		731			618			753			823			2,925			3,213
Card Services		292			250			609			609			786			759			765			2,919			3,206
Commercial Banking		312			355			292			288			258			284			304			1,134			1,010
Treasury & Securities Services		406			425			403			422			360			352			263			1,397			1,090
Asset Management		351			395			356			527			521			493			425			1,966			1,409
Corporate/Private Equity (j)		(1,780	)		(319	)		1,111			270			534			414			667			1,885			842

Net income	$	527		$	2,003		$	2,373		$	2,971		$	3,373		$	4,234		$	4,787		$	15,365		$	14,444

(a) The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see Note 4 of JPMorgan Chase’s 2007 Annual Report

(b) Includes accounting conformity loan loss reserve provision related to the acquisition of Washington Mutual Bank’s banking operations.

(c) 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 2006.

(d) JPMorgan Chase acquired the banking operations of Washington Mutual Bank for $1.9 billion. The fair value of the net assets acquired exceeded the purchase price which resulted in negative goodwill. In accordance with SFAS 141, nonfinancial assets that are not held-for-sale were written down against that negative goodwill. The negative goodwill that remained after writing down nonfinancial assets was recognized as an extraordinary gain.

(e) On September 30, 2008, the Firm issued $11.5 billion, or 284 million shares, of its common stock at $40.50 per share.

(f) Quarterly ratios are based upon annualized amounts.

(g) 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.

(h) Income from continuing operations divided by total average assets less average assets of discontinued operations held-for-sale.

(i) Increases in the third quarter and second quarter of 2008 predominantly relate to the acquisition of Washington Mutual Bank’s banking operations and Bear Stearns & Co., respectively.

(j) See Corporate/Private Equity Financial Highlights for additional details.

(k) Common equivalent shares have been excluded from the computation of diluted earnings per share for the third quarter of 2008, as the effect would be antidilutive.

Page 4

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
STATEMENTS OF INCOME

(in millions, except per share and ratio data)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
REVENUE
Investment banking fees	$	1,316		$	1,612		$	1,216		$	1,662		$	1,336		$	1,898		$	1,739		$	6,635		$	5,520
Principal transactions (a)		(2,763	)		752			(803	)		165			650			3,713			4,487			9,015			10,778
Lending & deposit-related fees		1,168			1,105			1,039			1,066			1,026			951			895			3,938			3,468
Asset management, administration and commissions		3,485			3,628			3,596			3,896			3,663			3,611			3,186			14,356			11,855
Securities gains (losses)		424			647			33			148			237			(223	)		2			164			(543	)
Mortgage fees and related income (b)		457			696			525			898			221			523			476			2,118			591
Credit card income		1,771			1,803			1,796			1,857			1,777			1,714			1,563			6,911			6,913
Other income		(115	)		(138	)		1,829			469			289			553			518			1,829			2,175

Noninterest revenue		5,743			10,105			9,231			10,161			9,199			12,740			12,866			44,966			40,757

Interest income		17,326			16,529			17,532			18,619			18,806			17,342			16,620			71,387			59,107
Interest expense		8,332			8,235			9,873			11,396			11,893			11,174			10,518			44,981			37,865

Net interest income		8,994			8,294			7,659			7,223			6,913			6,168			6,102			26,406			21,242


TOTAL NET REVENUE		14,737			18,399			16,890			17,384			16,112			18,908			18,968			71,372			61,999

Provision for credit losses (c)		5,787			3,455			4,424			2,542			1,785			1,529			1,008			6,864			3,270

NONINTEREST EXPENSE
Compensation expense		5,858			6,913			4,951			5,469			4,677			6,309			6,234			22,689			21,191
Occupancy expense		766			669			648			659			657			652			640			2,608			2,335
Technology, communications and equipment expense		1,112			1,028			968			986			950			921			922			3,779			3,653
Professional & outside services		1,451			1,450			1,333			1,421			1,260			1,259			1,200			5,140			4,450
Marketing		453			413			546			570			561			457			482			2,070			2,209
Other expense (d)		1,096			1,233			169			1,254			812			1,013			735			3,814			3,272
Amortization of intangibles		305			316			316			339			349			353			353			1,394			1,428
Merger costs		96			155			—			22			61			64			62			209			305

TOTAL NONINTEREST EXPENSE		11,137			12,177			8,931			10,720			9,327			11,028			10,628			41,703			38,843


Income (loss) from continuing operations before income tax expense		(2,187	)		2,767			3,535			4,122			5,000			6,351			7,332			22,805			19,886
Income tax expense (benefit) (e)		(2,133	)		764			1,162			1,151			1,627			2,117			2,545			7,440			6,237

Income (loss) from continuing operations		(54	)		2,003			2,373			2,971			3,373			4,234			4,787			15,365			13,649
Income from discontinued operations (f)		—			—			—			—			—			—			—			—			795
Extraordinary gain (g)		581			—			—			—			—			—			—			—			-

NET INCOME	$	527		$	2,003		$	2,373		$	2,971		$	3,373		$	4,234		$	4,787		$	15,365		$	14,444


DILUTED EARNINGS PER SHARE
Income (loss) from continuing operations	$	(0.06	)	$	0.54		$	0.68		$	0.86		$	0.97		$	1.20		$	1.34		$	4.38		$	3.82
Income from discontinued operations (f)		—			—			—			—			—			—			—			—			0.22
Extraordinary gain (g)		0.17			—			—			—			—			—			—			—			-

Net Income	$	0.11		$	0.54		$	0.68		$	0.86		$	0.97		$	1.20		$	1.34		$	4.38		$	4.04


FINANCIAL RATIOS
Income (loss) from continuing operations:
ROE		(1	)%		6	%		8	%		10	%		11	%		14	%		17	%		13	%		12	%
ROE-GW		(1	)		10			12			15			18			23			27			21			20
ROA		(0.01	)		0.48			0.61			0.77			0.91			1.19			1.41			1.06			1.04
Net income:
ROE		1			6			8			10			11			14			17			13			13
ROE-GW		2			10			12			15			18			23			27			21			22
ROA		0.12			0.48			0.61			0.77			0.91			1.19			1.41			1.06			1.10
Effective income tax rate (e)		98			28			33			28			33			33			35			33			31
Overhead ratio		76			66			53			62			58			58			56			58			63

EXCLUDING IMPACT OF MERGER COSTS (h)
Income (loss) from continuing operations	$	(54	)	$	2,003		$	2,373		$	2,971		$	3,373		$	4,234		$	4,787		$	15,365		$	13,649
Merger costs (after-tax)		60			96			—			14			38			40			38			130			189

Income from continuing operations excluding merger costs	$	6		$	2,099		$	2,373		$	2,985		$	3,411		$	4,274		$	4,825		$	15,495		$	13,838


Diluted Per Share:
Income (loss) from continuing operations	$	(0.06	)	$	0.54		$	0.68		$	0.86		$	0.97		$	1.20		$	1.34		$	4.38		$	3.82
Merger costs (after-tax)		0.02			0.03			—			—			0.01			0.01			0.01			0.04			0.05

Income (loss) from continuing operations excluding merger costs	$	(0.04	)	$	0.57		$	0.68		$	0.86		$	0.98		$	1.21		$	1.35		$	4.42		$	3.87


(a)		The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see Note 4 of JPMorgan Chase’s 2007 Annual Report

(b)		The Firm adopted SFAS 159 in the first quarter of 2007. As a result, beginning in the first quarter of 2007, certain loan origination costs have been classified as expense (previously netted against revenue).

(c)		Includes accounting conformity loan loss reserve provision related to the acquisition of Washington Mutual Bank’s banking operations.

(d)		Insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material legal proceedings were $512 million for full year 2006.

(e)		The income tax benefit in the 2008 third quarter includes the result of an increased proportion of income that was not subject to U.S. federal income taxes, increased tax credits, and the realization of a benefit from the release of deferred tax liabilities associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely.

(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.

(g)		JPMorgan Chase acquired the banking operations of Washington Mutual Bank from the FDIC for $1.9 billion. The fair value of the net assets acquired from the FDIC exceeded the purchase price which resulted in negative goodwill. In accordance with SFAS 141, nonfinancial assets that are not held-for-sale were written down against that negative goodwill. The negative goodwill that remained after writing down nonfinancial assets was recognized as an extraordinary gain.

(h)		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 5

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS

(in millions)


	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
	2008			2008			2008			2007			2007			2007			2007			2006
ASSETS
Cash and due from banks	$	54,350		$	32,255		$	46,888		$	40,144		$	32,766		$	35,449		$	31,836		$	40,412
Deposits with banks		34,372			17,150			12,414			11,466			26,714			41,736			30,973			13,547
Federal funds sold and securities purchased under resale agreements		233,668			176,287			203,176			170,897			135,589			125,930			144,306			140,524
Securities borrowed		152,050			142,854			81,014			84,184			84,697			88,360			84,800			73,688
Trading assets:
Debt and equity instruments		401,609			409,608			386,170			414,273			389,119			391,508			373,684			310,137
Derivative receivables		118,648			122,389			99,110			77,136			64,592			59,038			49,647			55,601
Securities		150,779			119,173			101,647			85,450			97,706			95,984			97,029			91,975
Loans (net of allowance for loan losses)		742,329			524,783			525,310			510,140			478,207			457,404			442,465			475,848
Accrued interest and accounts receivable (a)		104,232			64,294			50,989			24,823			26,401			26,716			23,663			22,891
Premises and equipment		9,962			11,843			9,457			9,319			8,892			9,044			8,728			8,735
Goodwill		46,121			45,993			45,695			45,270			45,335			45,254			45,063			45,186
Other intangible assets:
Mortgage servicing rights		17,048			11,617			8,419			8,632			9,114			9,499			7,937			7,546
Purchased credit card relationships		1,827			1,984			2,140			2,303			2,427			2,591			2,758			2,935
All other intangibles		3,653			3,675			3,815			3,796			3,959			4,103			4,205			4,371
Other assets (b)		180,821			91,765			66,618			74,314			74,057			65,426			61,824			58,124

TOTAL ASSETS	$	2,251,469		$	1,775,670		$	1,642,862		$	1,562,147		$	1,479,575		$	1,458,042		$	1,408,918		$	1,351,520


LIABILITIES
Deposits	$	969,783		$	722,905		$	761,626		$	740,728		$	678,091		$	651,370		$	626,428		$	638,788
Federal funds purchased and securities sold under repurchase agreements		224,075			194,724			192,633			154,398			178,767			205,961			218,917			162,173
Commercial paper		54,480			50,151			50,602			49,596			33,978			25,116			25,354			18,849
Other borrowed funds (b)		167,827			22,594			28,430			28,835			31,154			29,263			19,871			18,053
Trading liabilities:
Debt and equity instruments		76,213			87,841			78,982			89,162			80,748			93,969			94,309			90,488
Derivative payables		85,816			95,749			78,983			68,705			68,426			61,396			50,316			57,469
Accounts payable, accrued expenses and other liabilities (including the allowance for lending-related commitments) (c)		260,563			171,004			106,088			94,476			86,524			84,785			87,603			88,096
Beneficial interests issued by consolidated VIEs		11,437			20,071			14,524			14,016			13,283			14,808			13,109			16,184
Long-term debt		238,034			260,192			189,995			183,862			173,696			159,493			143,274			133,421
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		17,398			17,263			15,372			15,148			14,930			12,670			12,033			12,209

TOTAL LIABILITIES		2,105,626			1,642,494			1,517,235			1,438,926			1,359,597			1,338,831			1,291,214			1,235,730

STOCKHOLDERS’ EQUITY
Preferred stock		8,152			6,000			—			—			—			—			—			—
Common stock		3,942			3,658			3,658			3,658			3,658			3,658			3,658			3,658
Capital surplus		90,535			78,870			78,072			78,597			78,295			78,020			77,760			77,807
Retained earnings (d)		55,217			56,313			55,762			54,715			53,064			51,011			48,105			43,600
Accumulated other comprehensive income (loss)		(2,227	)		(1,566	)		(512	)		(917	)		(1,830	)		(2,080	)		(1,482	)		(1,557	)
Shares held in RSU trust		(267	)		(269	)		—			—			—			—			—			—
Treasury stock, at cost		(9,509	)		(9,830	)		(11,353	)		(12,832	)		(13,209	)		(11,398	)		(10,337	)		(7,718	)

TOTAL STOCKHOLDERS’ EQUITY		145,843			133,176			125,627			123,221			119,978			119,211			117,704			115,790

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,251,469		$	1,775,670		$	1,642,862		$	1,562,147		$	1,479,575		$	1,458,042		$	1,408,918		$	1,351,520


(a)		Includes margin loans; receivables from brokers, dealers and clearing organizations; and securities fails.

(b)		On September 18, 2008, the Federal Reserve established a special lending facility, the AML Facility, to provide liquidity to eligible money market mutual funds. The Firm participated in the AML Facility and had ABCP investments totaling $61.3 billion at September 30, 2008. These ABCP investments were recorded in other assets with the corresponding nonrecourse liability to the Federal Reserve Bank of Boston for the same amounts recorded in other borrowed funds.
(c)		Includes brokerage customer payables; payables to brokers, dealers and clearing organizations; and securities fails.

(d)		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 Note 4 of JPMorgan Chase’s 2007 Annual Report.

Page 6

JPMorgan Chase & Co.

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

(in millions, except rates)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
AVERAGE BALANCES
ASSETS
Deposits with banks	$	41,303		$	38,813		$	31,975		$	41,363		$	39,906		$	18,153		$	16,224		$	29,010		$	27,730
Federal funds sold and securities purchased under resale agreements		164,980			155,664			153,864			140,622			133,780			132,768			135,499			135,677			132,118
Securities borrowed		134,651			100,322			83,490			86,649			87,955			90,810			78,768			86,072			83,831
Trading assets — debt instruments		298,760			302,053			322,986			308,175			310,445			294,931			257,079			292,846			205,506
Securities		119,443			109,834			89,757			93,236			95,694			96,921			95,326			95,290			77,845
Interests in purchased receivables (a)		—			—			—			—			—			—			—			—			13,941
Loans		536,890			537,964			526,598			508,172			476,912			465,763			467,453			479,679			454,535
Other assets (b)		37,237			15,629			—			—			—			—			—			—			—

Total interest-earning assets		1,333,264			1,260,279			1,208,670			1,178,217			1,144,692			1,099,346			1,050,349			1,118,574			995,506
Trading assets — equity instruments		92,300			99,525			78,810			93,453			86,177			85,830			88,791			88,569			74,573
Goodwill		45,947			45,781			45,699			45,321			45,276			45,181			45,125			45,226			43,872
Other intangible assets:
Mortgage servicing rights		11,811			9,947			8,273			8,795			9,290			8,371			7,784			8,565			7,484
All other intangible assets		5,512			5,823			6,202			6,220			6,532			6,854			7,139			6,684			7,420
All other noninterest-earning assets		267,525			247,344			222,143			198,031			185,367			186,404			179,727			187,426			168,442
Assets of discontinued operations held-for-sale (c)		—			—			—			—			—			—			—			—			16,497

TOTAL ASSETS	$	1,756,359		$	1,668,699		$	1,569,797		$	1,530,037		$	1,477,334		$	1,431,986		$	1,378,915		$	1,455,044		$	1,313,794

LIABILITIES
Interest-bearing deposits	$	589,348		$	612,305		$	600,132		$	587,297		$	540,937		$	513,451		$	498,717		$	535,359		$	452,323
Federal funds purchased and securities sold under repurchase agreements		200,032			203,348			179,897			171,450			206,174			209,323			199,252			196,500			183,783
Commercial paper		47,579			47,323			47,584			48,821			26,511			25,282			22,339			30,799			17,710
Other borrowings and liabilities (d)		161,821			111,477			107,552			99,259			104,995			100,715			95,664			100,181			102,147
Beneficial interests issued by consolidated VIEs		11,431			17,990			14,082			14,183			14,454			13,641			15,993			14,563			28,652
Long-term debt		261,385			229,336			200,354			191,797			177,851			162,465			148,146			170,206			129,667

Total interest-bearing liabilities		1,271,596			1,221,779			1,149,601			1,112,807			1,070,922			1,024,877			980,111			1,047,608			914,282
Noninterest-bearing liabilities		351,023			315,965			295,616			295,670			287,436			289,058			282,559			288,713			272,994
Liabilities of discontinued operations held-for-sale (c)		—			—			—			—			—			—			—			—			15,787

TOTAL LIABILITIES		1,622,619			1,537,744			1,445,217			1,408,477			1,358,358			1,313,935			1,262,670			1,336,321			1,203,063

Preferred stock		7,100			4,549			—			—			—			—			—			—			34
Common stockholders’ equity		126,640			126,406			124,580			121,560			118,976			118,051			116,245			118,723			110,697

TOTAL STOCKHOLDERS’ EQUITY		133,740			130,955			124,580			121,560			118,976			118,051			116,245			118,723			110,731

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,756,359		$	1,668,699		$	1,569,797		$	1,530,037		$	1,477,334		$	1,431,986		$	1,378,915		$	1,455,044		$	1,313,794

AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks		3.04	%		3.87	%		4.22	%		4.95	%		5.06	%		4.56	%		4.65	%		4.89	%		4.56	%
Federal funds sold and securities purchased under resale agreements		3.76			3.84			3.80			4.41			4.83			4.99			4.95			4.79			4.22
Securities borrowed		2.07			2.29			3.56			4.77			5.60			5.31			5.42			5.27			4.06
Trading assets — debt instruments		6.06			5.59			5.75			5.84			6.09			5.65			5.96			5.89			5.41
Securities		5.09			5.27			5.47			5.58			5.69			5.68			5.68			5.65			5.53
Interests in purchased receivables		—			—			—			—			—			—			—			—			4.68
Loans		6.31			6.36			7.10			7.60			7.80			7.65			7.53			7.65			7.26
Other assets (b)		3.29			3.97			—			—			—			—			—			—			—
Total interest-earning assets		5.22			5.34			5.88			6.30			6.55			6.37			6.44			6.42			5.96

INTEREST-BEARING LIABILITIES
Interest-bearing deposits		2.26			2.36			3.09			3.84			4.13			4.17			4.06			4.04			3.77
Federal funds purchased and securities sold under repurchase agreements		2.63			2.73			3.31			4.35			5.18			5.19			5.09			4.98			4.45
Commercial paper		2.05			2.17			3.41			4.40			4.68			4.92			4.89			4.65			4.49
Other borrowings and liabilities (d)		2.84			3.77			5.03			5.02			4.90			4.69			5.07			4.91			5.00
Beneficial interests issued by consolidated VIEs		2.87			2.24			3.78			4.36			4.52			3.22			3.82			3.98			4.31
Long-term debt		3.31			3.27			3.82			3.90			3.99			3.77			3.85			3.88			4.24
Total interest-bearing liabilities		2.61			2.71			3.45			4.06			4.41			4.37			4.35			4.29			4.14
INTEREST RATE SPREAD		2.61	%		2.63	%		2.43	%		2.24	%		2.14	%		2.00	%		2.09	%		2.13	%		1.82	%

NET YIELD ON INTEREST-EARNING ASSETS		2.73	%		2.71	%		2.59	%		2.46	%		2.43	%		2.30	%		2.38	%		2.39	%		2.16	%

NET YIELD ON INTEREST-EARNING ASSETS
ADJUSTED FOR SECURITIZATIONS		3.06	%		3.06	%		2.95	%		2.80	%		2.75	%		2.63	%		2.73	%		2.73	%		2.56	%


(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)		Includes margin loans and the Firm’s investment in asset-backed commercial paper under the Federal Reserve Bank of Boston’s AML Facility.

(c)		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, for purposes of the consolidated average balance sheet for assets and liabilities transferred to discontinued operations, JPMorgan Chase used Federal funds sold interest income as a reasonable estimate of the earnings on corporate trust deposits for the periods prior to the close of the transaction; therefore, JPMorgan Chase transferred to assets of discontinued operations held-for-sale average federal funds sold, along with the related interest income earned, and transferred to liabilities of discontinued operations held-for-sale average corporate trust deposits.

(d)		Includes securities sold but not yet purchased, brokerage customer payables and advances from federal home loan bank.

Page 7

JPMorgan Chase & Co.

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 assume 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 37.


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
CREDIT CARD INCOME
Credit card income — reported	$	1,771		$	1,803		$	1,796		$	1,857		$	1,777		$	1,714		$	1,563		$	6,911		$	6,913
Impact of:
Credit card securitizations		(843	)		(843	)		(937	)		(885	)		(836	)		(788	)		(746	)		(3,255	)		(3,509	)

Credit card income — managed	$	928		$	960		$	859		$	972		$	941		$	926		$	817		$	3,656		$	3,404


OTHER INCOME
Other income — reported	$	(115	)	$	(138	)	$	1,829		$	469		$	289		$	553		$	518		$	1,829		$	2,175
Impact of:
Tax-equivalent adjustments		323			247			203			182			192			199			110			683			676

Other income — managed	$	208		$	109		$	2,032		$	651		$	481		$	752		$	628		$	2,512		$	2,851


TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	5,743		$	10,105		$	9,231		$	10,161		$	9,199		$	12,740		$	12,866		$	44,966		$	40,757
Impact of:
Credit card securitizations		(843	)		(843	)		(937	)		(885	)		(836	)		(788	)		(746	)		(3,255	)		(3,509	)
Tax-equivalent adjustments		323			247			203			182			192			199			110			683			676

Total noninterest revenue — managed	$	5,223		$	9,509		$	8,497		$	9,458		$	8,555		$	12,151		$	12,230		$	42,394		$	37,924


NET INTEREST INCOME
Net interest income — reported	$	8,994		$	8,294		$	7,659		$	7,223		$	6,913		$	6,168		$	6,102		$	26,406		$	21,242
Impact of:
Credit card securitizations		1,716			1,673			1,618			1,504			1,414			1,378			1,339			5,635			5,719
Tax-equivalent adjustments		155			202			124			90			95			122			70			377			228

Net interest income — managed	$	10,865		$	10,169		$	9,401		$	8,817		$	8,422		$	7,668		$	7,511		$	32,418		$	27,189


TOTAL NET REVENUE
Total net revenue — reported	$	14,737		$	18,399		$	16,890		$	17,384		$	16,112		$	18,908		$	18,968		$	71,372		$	61,999
Impact of:
Credit card securitizations		873			830			681			619			578			590			593			2,380			2,210
Tax-equivalent adjustments		478			449			327			272			287			321			180			1,060			904

Total net revenue — managed	$	16,088		$	19,678		$	17,898		$	18,275		$	16,977		$	19,819		$	19,741		$	74,812		$	65,113


PROVISION FOR CREDIT LOSSES
Provision for credit losses — reported	$	5,787		$	3,455		$	4,424		$	2,542		$	1,785		$	1,529		$	1,008		$	6,864		$	3,270
Impact of:
Credit card securitizations		873			830			681			619			578			590			593			2,380			2,210

Provision for credit losses — managed	$	6,660		$	4,285		$	5,105		$	3,161		$	2,363		$	2,119		$	1,601		$	9,244		$	5,480


INCOME TAX EXPENSE
Income tax expense (benefit) — reported	$	(2,133	)	$	764		$	1,162		$	1,151		$	1,627		$	2,117		$	2,545		$	7,440		$	6,237
Impact of:
Tax-equivalent adjustments		478			449			327			272			287			321			180			1,060			904

Income tax expense (benefit) — managed	$	(1,655	)	$	1,213		$	1,489		$	1,423		$	1,914		$	2,438		$	2,725		$	8,500		$	7,141

Page 8

JPMorgan Chase & Co.

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

(in millions, except ratio data)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
TOTAL NET REVENUE (FTE)
Investment Bank	$	4,035		$	5,470		$	3,011		$	3,172		$	2,946		$	5,798		$	6,254		$	18,170		$	18,833
Retail Financial Services		4,963			5,110			4,763			4,796			4,150			4,309			4,050			17,305			14,825
Card Services		3,887			3,775			3,904			3,971			3,867			3,717			3,680			15,235			14,745
Commercial Banking		1,125			1,106			1,067			1,084			1,009			1,007			1,003			4,103			3,800
Treasury & Securities Services		1,953			2,019			1,913			1,930			1,748			1,741			1,526			6,945			6,109
Asset Management		1,961			2,064			1,901			2,389			2,205			2,137			1,904			8,635			6,787
Corporate/Private Equity		(1,836	)		134			1,339			933			1,052			1,110			1,324			4,419			14

TOTAL NET REVENUE	$	16,088		$	19,678		$	17,898		$	18,275		$	16,977		$	19,819		$	19,741		$	74,812		$	65,113


NET INCOME (LOSS)
Investment Bank	$	882		$	394		$	(87	)	$	124		$	296		$	1,179		$	1,540		$	3,139		$	3,674
Retail Financial Services		64			503			(311	)		731			618			753			823			2,925			3,213
Card Services		292			250			609			609			786			759			765			2,919			3,206
Commercial Banking		312			355			292			288			258			284			304			1,134			1,010
Treasury & Securities Services		406			425			403			422			360			352			263			1,397			1,090
Asset Management		351			395			356			527			521			493			425			1,966			1,409
Corporate/Private Equity (a) (b)		(1,780	)		(319	)		1,111			270			534			414			667			1,885			842

TOTAL NET INCOME (c)	$	527		$	2,003		$	2,373		$	2,971		$	3,373		$	4,234		$	4,787		$	15,365		$	14,444


AVERAGE EQUITY (d)
Investment Bank	$	26,000		$	23,319		$	22,000		$	21,000		$	21,000		$	21,000		$	21,000		$	21,000		$	20,753
Retail Financial Services		17,000			17,000			17,000			16,000			16,000			16,000			16,000			16,000			14,629
Card Services		14,100			14,100			14,100			14,100			14,100			14,100			14,100			14,100			14,100
Commercial Banking		7,000			7,000			7,000			6,700			6,700			6,300			6,300			6,502			5,702
Treasury & Securities Services		3,500			3,500			3,500			3,000			3,000			3,000			3,000			3,000			2,285
Asset Management		5,500			5,066			5,000			4,000			4,000			3,750			3,750			3,876			3,500
Corporate/Private Equity		53,540			56,421			55,980			56,760			54,176			53,901			52,095			54,245			49,728

TOTAL AVERAGE EQUITY	$	126,640		$	126,406		$	124,580		$	121,560		$	118,976		$	118,051		$	116,245		$	118,723		$	110,697


RETURN ON EQUITY (d)
Investment Bank		13	%		7	%		(2	)%		2	%		6	%		23	%		30	%		15	%		18	%
Retail Financial Services		1			12			(7	)		18			15			19			21			18			22
Card Services		8			7			17			17			22			22			22			21			23
Commercial Banking		18			20			17			17			15			18			20			17			18
Treasury & Securities Services		46			49			46			56			48			47			36			47			48
Asset Management		25			31			29			52			52			53			46			51			40


(a)		See Corporate/Private Equity Financial Highlights for additional details.

(b)		For 2006, included the after-tax impact of discontinued operations, material litigation actions, tax audit benefits and merger costs. See Corporate/Private Equity Financial Highlights for additional details.

(c)		Net income included income from discontinued operations (after-tax) of $795 million for full year 2006. There was no income from discontinued operations in 2008 and 2007.

(d)		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 9

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
INVESTMENT BANK

FINANCIAL HIGHLIGHTS
(in millions, except ratio data)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,593		$	1,735		$	1,206		$	1,657		$	1,330		$	1,900		$	1,729		$	6,616		$	5,537
Principal transactions		(922	)		838			(798	)		(623	)		(435	)		2,325			3,142			4,409			9,512
Lending & deposit-related fees		118			105			102			142			118			93			93			446			517
Asset management, administration and commissions		847			709			744			705			712			643			641			2,701			2,240
All other income		(279	)		(226	)		(66	)		(166	)		(76	)		122			42			(78	)		528

Noninterest revenue		1,357			3,161			1,188			1,715			1,649			5,083			5,647			14,094			18,334
Net interest income (a)		2,678			2,309			1,823			1,457			1,297			715			607			4,076			499

TOTAL NET REVENUE (b)		4,035			5,470			3,011			3,172			2,946			5,798			6,254			18,170			18,833

Provision for credit losses		234			398			618			200			227			164			63			654			191
Credit reimbursement from TSS (c)		31			30			30			30			31			30			30			121			121

NONINTEREST EXPENSE
Compensation expense		2,162			3,132			1,241			1,561			1,178			2,589			2,637			7,965			8,190
Noncompensation expense		1,654			1,602			1,312			1,450			1,200			1,265			1,194			5,109			4,670

TOTAL NONINTEREST EXPENSE		3,816			4,734			2,553			3,011			2,378			3,854			3,831			13,074			12,860


Income (loss) before income tax expense		16			368			(130	)		(9	)		372			1,810			2,390			4,563			5,903
Income tax expense (benefit) (d)		(866	)		(26	)		(43	)		(133	)		76			631			850			1,424			2,229

NET INCOME (LOSS)	$	882		$	394		$	(87	)	$	124		$	296		$	1,179		$	1,540		$	3,139		$	3,674

FINANCIAL RATIOS
ROE		13	%		7	%		(2	)%		2	%		6	%		23	%		30	%		15	%		18	%
ROA		0.39			0.19			(0.05	)		0.07			0.17			0.68			0.95			0.45			0.57
Overhead ratio		95			87			85			95			81			66			61			72			68
Compensation expense as a % of total net revenue (e)		54			57			41			49			40			45			42			44			41

REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	576		$	370		$	483		$	646		$	595		$	560		$	472		$	2,273		$	1,659
Equity underwriting		518			542			359			544			267			509			393			1,713			1,178
Debt underwriting		499			823			364			467			468			831			864			2,630			2,700

Total investment banking fees		1,593			1,735			1,206			1,657			1,330			1,900			1,729			6,616			5,537
Fixed income markets		815			2,347			466			615			687			2,445			2,592			6,339			8,736
Equity markets		1,650			1,079			976			578			537			1,249			1,539			3,903			3,458
Credit portfolio		(23	)		309			363			322			392			204			394			1,312			1,102

Total net revenue	$	4,035		$	5,470		$	3,011		$	3,172		$	2,946		$	5,798		$	6,254		$	18,170		$	18,833


REVENUE BY REGION
Americas	$	1,052		$	3,165		$	536		$	1,128		$	1,016		$	2,655		$	3,366		$	8,165		$	9,601
Europe/Middle East/Africa		2,509			1,512			1,641			1,334			1,389			2,327			2,251			7,301			7,421
Asia/Pacific		474			793			834			710			541			816			637			2,704			1,811

Total net revenue	$	4,035		$	5,470		$	3,011		$	3,172		$	2,946		$	5,798		$	6,254		$	18,170		$	18,833


(a)		The Firm adopted SFAS 157 and SFAS 159 in the first quarter of 2007; for additional information related to the impact to the Investment Bank (“IB”), see IB business segment results in the Firm’s 2007 Annual Report.

(b)		Total net revenue included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments and income tax credits related to affordable housing investments of $427 million, $404 million, $289 million, $230 million, $255 million, $290 million and $152 million for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007 respectively, and $927 million and $802 million for full year 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)		The income tax benefit in the third quarter of 2008 is predominantly the result of reduced deferred tax liabilities on overseas earnings.

(e)		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 10

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
INVESTMENT BANK

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
SELECTED BALANCE SHEET DATA (Period-end)
Equity	$	33,000		$	26,000		$	22,000		$	21,000		$	21,000		$	21,000		$	21,000		$	21,000		$	21,000

SELECTED BALANCE SHEET DATA (Average)
Total assets	$	890,040		$	814,860		$	755,828		$	735,685		$	710,665		$	696,230		$	658,724		$	700,565		$	647,569
Trading assets — debt and equity instruments (a)		360,821			367,184			369,456			371,842			372,212			359,387			335,118			359,775			275,077
Trading assets — derivative receivables		105,462			99,395			90,234			74,659			63,017			58,520			56,398			63,198			54,541
Loans:
Loans retained (b)		69,022			76,239			74,106			68,928			61,919			59,065			58,973			62,247			58,846
Loans held-for-sale & loans at fair value (a)		17,612			20,440			19,612			24,977			17,315			14,794			13,684			17,723			21,745

Total loans		86,634			96,679			93,718			93,905			79,234			73,859			72,657			79,970			80,591
Adjusted assets (c)		694,459			676,777			662,419			644,573			625,619			603,839			572,017			611,749			527,753
Equity		26,000			23,319			22,000			21,000			21,000			21,000			21,000			21,000			20,753

Headcount		30,993			37,057			25,780			25,543			25,691			25,356			23,892			25,543			23,729

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (recoveries)	$	13		$	(8	)	$	13		$	(9	)	$	67		$	(16	)	$	(6	)	$	36		$	(31	)
Nonperforming assets:
Nonperforming loans (d)		436			313			321			353			265			72			92			353			231
Other nonperforming assets		147			177			118			100			60			47			36			100			38
Allowance for credit losses:
Allowance for loan losses		2,654			2,429			1,891			1,329			1,112			1,037			1,037			1,329			1,052
Allowance for lending-related commitments		463			469			607			560			568			487			310			560			305


Total allowance for credit losses		3,117			2,898			2,498			1,889			1,680			1,524			1,347			1,889			1,357

Net charge-off (recovery) rate (a) (e)		0.07	%		(0.04	)%		0.07	%		(0.05	)%		0.43	%		(0.11	)%		(0.04	)%		0.06	%		(0.05)	%
Allowance for loan losses to average loans (a) (e)		3.85			3.19	(e)		2.55	(e)		1.93			1.80			1.76			1.76			2.14			1.79
Allowance for loan losses to nonperforming loans (d)		657			843			683			439			585			2,206			1,178			439			461
Nonperforming loans to average loans		0.50			0.32			0.34			0.38			0.33			0.10			0.13			0.44			0.29


(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 held-for-sale & loans at fair value 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 Investment Bank’s (“IB”) asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. The IB believes an adjusted asset amount that excludes the assets discussed above, which are considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.

(d)		Nonperforming loans included loans held-for-sale and loans at fair value of $32 million, $25 million, $44 million, $50 million, $75 million, $25 million, $4 million and $3 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, which were excluded from the allowance coverage ratios. Nonperforming loans excluded distressed loans held-for-sale that were purchased as part of IB’s proprietary activities.

(e)		Excluding the impact of a loan originated in March 2008 to Bear Stearns, the adjusted ratio would be 3.46% and 2.61% for the quarters ended June 30, 2008, and March 31, 2008, respectively. The average balance of the loan extended to Bear Stearns was $6.0 billion and $1.7 billion for the quarters ended June 30, 2008, and March 31, 2008, respectively.

Page 11

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
INVESTMENT BANK

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VaR 99% CONFIDENCE LEVEL (a)
Trading activities:
Fixed income	$	183		$	155		$	120		$	103		$	98		$	74		$	45		$	80		$	56
Foreign exchange		20			26			35			31			23			20			19			23			22
Equities		80			30			31			63			35			51			42			48			31
Commodities and other		41			31			28			29			28			40			34			33			45
Diversification (b)		(104	)		(92	)		(92	)		(102	)		(72	)		(73	)		(58	)		(77	)		(70	)

Total trading VaR (c)		220			150			122			124			112			112			82			107			84

Credit portfolio VaR (d)		47			35			30			26			17			12			13			17			15
Diversification (b)		(49	)		(36	)		(30	)		(27	)		(22	)		(14	)		(12	)		(18	)		(11	)

Total trading and credit portfolio VaR	$	218		$	149		$	122		$	123		$	107		$	110		$	83		$	106		$	88


	September 30, 2008 YTD					Full Year 2007					Full Year 2006

MARKET SHARES AND RANKINGS (e)	Market Share			Rankings		Market Share			Rankings		Market Share			Rankings

Global debt, equity and equity-related		10	%		#1		8	%		# 2		7	%		# 2
Global syndicated loans		12	%		#1		13	%		# 1		14	%		# 1
Global long-term debt (f)		9	%		#1		7	%		# 3		6	%		# 3
Global equity and equity-related (g)		12	%		#1		9	%		# 2		7	%		# 6
Global announced M&A (h)		24	%		#3		27	%		# 4		26	%		# 4
U.S. debt, equity and equity-related		15	%		#1		10	%		# 2		9	%		# 2
U.S. syndicated loans		27	%		#1		24	%		# 1		26	%		# 1
U.S. long-term debt (f)		15	%		#1		10	%		# 2		12	%		# 2
U.S. equity and equity-related (g)		17	%		#1		11	%		# 5		8	%		# 6
U.S. announced M&A (h)		33	%		#3		28	%		# 3		29	%		# 3


(a)		Results for second quarter 2008 include one month of the combined Firm’s results and two months of heritage JPMorgan Chase & Co. results. All prior periods reflect heritage JPMorgan Chase & Co. results.

(b)		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.

(c)		Trading VaR includes predominantly all trading activities in IB; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. Trading VaR does not include VaR related to held-for-sale funded loans and unfunded commitments, nor the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm. Trading VaR also does not include the MSR portfolio or VaR related to other corporate functions, such as Corporate/Private Equity. Beginning in the fourth quarter of 2008, Trading VaR includes the estimated credit spread sensitivity of certain mortgage products.

(d)		Includes VaR on derivative credit valuation adjustments, hedges of the credit valuation adjustment and mark-to-market hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio.

(e)		Source: Thomson Reuters. September 30, 2008 YTD results are pro forma for the acquisition of Bear Stearns. Full year 2007 and 2006 results represent heritage-JPMorgan Chase & Co. only.

(f)		Includes asset-backed securities, mortgage-backed securities and municipal securities.

(g)		Includes rights offerings; U.S. domiciled equity and equity-related transactions.

(h)		Global announced M&A is based upon 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%. Global and U.S. announced M&A market share and ranking for 2007 and 2006 include transactions withdrawn since December 31, 2007 and 2006, respectively. U.S. announced M&A represents any U.S. involvement ranking.

Page 12

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
INCOME STATEMENT
REVENUE
Lending & deposit-related fees	$	538		$	497		$	461		$	496		$	492		$	470		$	423		$	1,881		$	1,597
Asset management, administration and commissions		346			375			377			332			336			344			263			1,275			1,422
Securities gains (losses)		—			—			—			1			—			—			—			1			(57	)
Mortgage fees and related income (a)		438			696			525			888			229			495			482			2,094			618
Credit card income		204			194			174			174			167			163			142			646			523

All other income		206			198			152			218			293			207			164			882			557

Noninterest revenue		1,732			1,960			1,689			2,109			1,517			1,679			1,474			6,779			4,660
Net interest income		3,231			3,150			3,074			2,687			2,633			2,630			2,576			10,526			10,165

TOTAL NET REVENUE		4,963			5,110			4,763			4,796			4,150			4,309			4,050			17,305			14,825

Provision for credit losses		2,056			1,585			2,688			1,063			663			590			294			2,610			561

NONINTEREST EXPENSE
Compensation expense		1,120			1,184			1,160			1,113			1,087			1,104			1,065			4,369			3,657
Noncompensation expense		1,559			1,396			1,312			1,314			1,266			1,265			1,226			5,071			4,806
Amortization of intangibles		100			100			100			114			117			116			118			465			464

TOTAL NONINTEREST EXPENSE		2,779			2,680			2,572			2,541			2,470			2,485			2,409			9,905			8,927


Income (loss) before income tax expense		128			845			(497	)		1,192			1,017			1,234			1,347			4,790			5,337
Income tax expense (benefit)		64			342			(186	)		461			399			481			524			1,865			2,124

NET INCOME (LOSS)	$	64		$	503		$	(311	)	$	731		$	618		$	753		$	823		$	2,925		$	3,213


FINANCIAL RATIOS
ROE		1	%		12	%		(7	)%		18	%		15	%		19	%		21	%		18	%		22	%
Overhead ratio		56			52			54			53			60			58			59			57			60
Overhead ratio excluding core deposit intangibles (b)		54			51			52			51			57			55			57			55			57

SELECTED BALANCE SHEET DATA (Period-end)
Assets	$	426,435		$	265,845		$	262,118		$	256,351		$	243,322		$	239,807		$	234,390		$	256,351		$	237,887
Loans:
Loans retained		371,153			223,047			218,489			211,324			198,952			189,317			184,811			211,324			180,760
Loans held-for-sale & loans at fair value (c)		10,223			16,282			18,000			16,541			18,274			23,501			25,006			16,541			32,744

Total loans		381,376			239,329			236,489			227,865			217,226			212,818			209,817			227,865			213,504
Deposits		353,660			223,121			230,854			221,129			216,135			217,689			221,840			221,129			214,081
Equity		25,000			17,000			17,000			16,000			16,000			16,000			16,000			16,000			16,000

SELECTED BALANCE SHEET DATA (Average)
Assets	$	265,367		$	267,808		$	260,013		$	249,594		$	239,082		$	238,500		$	237,159		$	241,112		$	231,566
Loans:
Loans retained		222,640			221,132			214,586			204,062			192,632			186,902			182,741			191,645			187,753
Loans held-for-sale & loans at fair value (c)		16,037			20,492			17,841			17,538			19,560			25,166			28,235			22,587			16,129

Total loans		238,677			241,624			232,427			221,600			212,192			212,068			210,976			214,232			203,882
Deposits		222,180			226,487			225,555			219,226			216,904			219,171			216,933			218,062			201,127
Equity		17,000			17,000			17,000			16,000			16,000			16,000			16,000			16,000			14,629

Headcount		101,826			69,550			70,095			69,465			68,528			68,254			67,247			69,465			65,570


(a)		The Firm adopted SFAS 159 in the first quarter of 2007. As a result, beginning in the first quarter of 2007, certain loan-origination costs have been classified as expense (previously netted against revenue).

(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 excludes Regional Banking’s core deposit intangible amortization expense related to The Bank of New York transaction and the Bank One merger of $99 million, $99 million, $99 million, $113 million, $116 million, $115 million, and $116 million for the quarters ending September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007, respectively, and $460 million and $458 million for full year 2007 and 2006, respectively.

(c)		Loans included prime mortgage loans originated with the intent to sell, which were accounted for at fair value. These loans, classified as trading assets on the Consolidated balance sheets, totaled $8.1 billion, $14.1 billion, $13.5 billion, $12.6 billion, $14.4 billion, $15.2 billion, and $11.6 billion at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007, respectively. Average loans included prime mortgage loans, classified as trading assets on the Consolidated balance sheets, of $14.5 billion, $16.9 billion, $13.4 billion, $13.5 billion, $14.1 billion, $13.5 billion, and $6.5 billion for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007, respectively, and $11.9 billion for full year 2007.

Page 13

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	1,326		$	1,025		$	825		$	535		$	354		$	273		$	188		$	1,350		$	576
Nonperforming loans (a) (b) (c) (d)		5,724			4,574			3,742			2,828			2,073			1,771			1,631			2,828			1,677
Nonperforming assets (a) (b) (c) (d)		8,085			5,333			4,359			3,378			2,530			2,137			1,898			3,378			1,902
Allowance for loan losses		7,517			5,062			4,496			2,668			2,135			1,818			1,501			2,668			1,392

Net charge-off rate (e)		2.37	%		1.86	%		1.55	%		1.04	%		0.73	%		0.59	%		0.42	%		0.70	%		0.31	%
Allowance for loan losses to ending loans (e)		2.03			2.27			2.06			1.26			1.07			0.96			0.81			1.26			0.77
Allowance for loan losses to ending loans excluding purchased credit impaired loans (e) (f)		2.56			2.27			2.06			1.26			1.07			0.96			0.81			1.26			0.77
Allowance for loan losses to nonperforming loans (e)		136			115			124			97			104			114			97			97			89
Nonperforming loans to total loans		1.50			1.91			1.58			1.24			0.95			0.83			0.78			1.24			0.79


(a)		Excludes credit impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing under SOP 03-3.

(b)		Nonperforming loans and assets included loans held-for-sale and loans accounted for at fair value of $207 million, $180 million, $129 million, $69 million, $17 million, $178 million, $84 million and $116 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. Certain of these loans are classified as trading assets on the Consolidated balance sheets.

(c)		Nonperforming loans and assets excluded (1) loans eligible for repurchase as well as loans repurchased from Governmental National Mortgage Association (“GNMA”) pools that are insured by U.S. government agencies of $1.8 billion, $1.9 billion, $1.8 billion, $1.5 billion, $1.3 billion, $1.2 billion, $1.3 billion and $1.2 billion at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, and (2) education loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $405 million, $371 million, $252 million, $279 million, $241 million, $200 million, $178 million and $219 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.

(d)		During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform with all other home lending products. Prior period nonperforming loans and assets have been revised to conform with this change.

(e)		Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratio and the net charge-off rate.

(f)		Excludes the impact of purchased credit impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans were accounted for a fair value on the acquisition date, which reflected expected cash flows (including credit losses), over the remaining life of the portfolio. Accordingly, no charge-offs and no allowance for loan losses has been recorded for these loans.

Page 14

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
RETAIL BANKING
Noninterest revenue	$	1,089		$	1,062		$	966		$	998		$	1,004		$	979		$	782		$	3,763		$	3,259
Net interest income		1,756			1,671			1,545			1,547			1,565			1,556			1,525			6,193			5,698

Total net revenue		2,845			2,733			2,511			2,545			2,569			2,535			2,307			9,956			8,957
Provision for credit losses		70			62			49			50			42			37			(50	)		79			114
Noninterest expense		1,580			1,557			1,562			1,568			1,549			1,531			1,518			6,166			5,667

Income before income tax expense		1,195			1,114			900			927			978			967			839			3,711			3,176

Net income	$	723		$	674		$	545		$	561		$	591		$	586		$	507		$	2,245		$	1,922


Overhead ratio		56	%		57	%		62	%		62	%		60	%		60	%		66	%		62	%		63	%
Overhead ratio excluding core deposit intangibles (a)		52			53			58			57			56			56			61			57			58

BUSINESS METRICS (in billions)
Business banking origination volume	$	1.2		$	1.7		$	1.8		$	1.7		$	1.7		$	1.8		$	1.7		$	6.9		$	5.7
End of period loans owned:		18.6			16.5			15.9			15.6			14.8			14.5			14.2			15.6			14.0
End of period deposits:
Checking	$	106.7		$	69.1		$	69.0		$	66.9		$	64.5		$	65.9		$	67.6		$	66.9		$	67.1
Savings		146.4			105.8			105.4			96.0			95.7			96.9			99.1			96.0			91.5
Time and other		85.8			37.0			44.6			48.6			46.4			41.7			42.1			48.6			43.2

Total end of period deposits		338.9			211.9			219.0			211.5			206.6			204.5			208.8			211.5			201.8
Average loans owned:	$	16.6		$	16.2		$	15.8		$	15.3		$	15.0		$	14.7		$	14.5		$	14.9		$	13.4
Average deposits:
Checking	$	68.0		$	68.4		$	66.1		$	64.4		$	64.9		$	67.0		$	67.0		$	65.8		$	62.7
Savings		105.4			105.9			100.3			96.3			97.1			98.4			96.5			97.1			89.7
Time and other		36.7			39.6			47.7			47.7			43.2			41.7			42.5			43.8			37.5

Total average deposits		210.1			213.9			214.1			208.4			205.2			207.1			206.0			206.7			189.9
Deposit margin		3.06	%		2.88	%		2.64	%		2.67	%		2.75	%		2.73	%		2.73	%		2.72	%		2.74	%
Average assets	$	25.6		$	25.7		$	25.4		$	25.4		$	25.0		$	24.9		$	24.7		$	25.0		$	20.5

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	68		$	61		$	49		$	50		$	43		$	38		$	32		$	163		$	114
Net charge-off rate		1.63	%		1.51	%		1.25	%		1.30	%		1.14	%		1.04	%		0.90	%		1.09	%		0.85	%
Nonperforming assets	$	380		$	337		$	328		$	294		$	276		$	275		$	259		$	294		$	244

RETAIL BRANCH BUSINESS METRICS
Investment sales volume	$	4,389		$	5,211		$	4,084		$	4,114		$	4,346		$	5,117		$	4,783		$	18,360		$	14,882

Number of:
Branches		5,423			3,157			3,146			3,152			3,096			3,089			3,071			3,152			3,079
ATMs		14,389			9,310			9,237			9,186			8,943			8,649			8,560			9,186			8,506
Personal bankers (b)		15,491			9,995			9,826			9,650			9,503			9,025			7,846			9,650			7,573
Sales specialists (b)		5,899			4,116			4,133			4,105			4,025			3,915			3,712			4,105			3,614
Active online customers (in thousands) (c)		11,682			7,180			6,454			5,918			5,706			5,448			5,295			5,918			4,909
Checking accounts (in thousands)		24,490			11,336			11,068			10,839			10,644			10,356			10,158			10,839			9,995


(a)		Retail 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 excludes Retail Banking’s core deposit intangible amortization expense related to The Bank of New York transaction and the Bank One merger of $99 million, $99 million, $99 million, $113 million, $116 million, $115 million, and $116 million for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007, respectively, and $460 million and $458 million for full year 2007 and 2006, respectively.

(b)		Employees acquired as part of The Bank of New York transaction are included beginning June 30, 2007.

(c)		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.

Page 15

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
CONSUMER LENDING
Noninterest revenue	$	643		$	898		$	723		$	1,111		$	513		$	700		$	692		$	3,016		$	1,401
Net interest income		1,475			1,479			1,529			1,140			1,068			1,074			1,051			4,333			4,467

Total net revenue		2,118			2,377			2,252			2,251			1,581			1,774			1,743			7,349			5,868
Provision for credit losses		1,986			1,523			2,639			1,013			621			553			344			2,531			447
Noninterest expense		1,199			1,123			1,010			973			921			954			891			3,739			3,260

Income (loss) before income tax expense		(1,067	)		(269	)		(1,397	)		265			39			267			508			1,079			2,161
Net income (loss)	$	(659	)	$	(171	)	$	(856	)	$	170		$	27		$	167		$	316		$	680		$	1,291


Overhead ratio		57	%		47	%		45	%		43	%		58	%		54	%		51	%		51	%		56	%

BUSINESS METRICS (in billions)
LOANS EXCLUDING PURCHASED CREDIT IMPAIRED
End of period loans owned:
Home equity	$	116.8		$	95.1		$	95.0		$	94.8		$	93.0		$	91.0		$	87.7		$	94.8		$	85.7
Prime mortgage		63.0			40.1			38.2			34.0			29.2			26.3			28.8			34.0			46.5
Subprime mortgage		18.1			14.8			15.8			15.5			12.1			11.9			12.7			15.5			13.2
Option ARMs		19.0			—			—			—			—			—			—			—			—
Education		15.3			13.0			12.4			11.0			10.2			10.2			11.1			11.0			10.3
Auto loans and leases		43.3			44.9			44.7			42.3			40.9			41.2			40.9			42.3			41.0
Other		1.0			0.9			1.0			2.1			2.6			2.5			2.8			2.1			2.8

Total end of period loans		276.5			208.8			207.1			199.7			188.0			183.1			184.0			199.7			199.5
Average loans owned:
Home equity	$	94.8		$	95.1		$	95.0		$	94.0		$	91.8		$	89.2		$	86.3		$	90.4		$	78.3
Prime mortgage		39.7			39.3			36.0			30.9			27.2			28.3			35.8			30.4			43.3
Subprime mortgage		14.2			15.5			15.7			13.6			11.4			12.5			13.1			12.7			15.4
Education		14.1			12.7			12.0			10.6			9.8			10.5			11.0			10.5			8.3
Auto loans and leases		43.9			44.9			43.2			41.6			40.6			41.1			40.9			41.1			42.7
Other		0.9			1.0			1.3			2.1			2.3			2.2			2.9			2.3			2.4

Total average loans (a)		207.6			208.5			203.2			192.8			183.1			183.8			190.0			187.4			190.4
PURCHASED CREDIT IMPAIRED LOANS (b)
End of period loans owned:
Home equity	$	26.5		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Prime mortgage		24.7			—			—			—			—			—			—			—			—
Subprime mortgage		3.9			—			—			—			—			—			—			—			—
Option ARMs		22.6			—			—			—			—			—			—			—			—

Total end of period loans		77.7			—			—			—			—			—			—			—			—
TOTAL CONSUMER LENDING PORTFOLIO
End of period loans owned:
Home equity	$	143.3		$	95.1		$	95.0		$	94.8		$	93.0		$	91.0		$	87.7		$	94.8		$	85.7
Prime mortgage		87.7			40.1			38.2			34.0			29.2			26.3			28.8			34.0			46.5
Subprime mortgage		22.0			14.8			15.8			15.5			12.1			11.9			12.7			15.5			13.2
Option ARMs		41.6			—			—			—			—			—			—			—			—
Education		15.3			13.0			12.4			11.0			10.2			10.2			11.1			11.0			10.3
Auto loans and leases		43.3			44.9			44.7			42.3			40.9			41.2			40.9			42.3			41.0
Other		1.0			0.9			1.0			2.1			2.6			2.5			2.8			2.1			2.8

Total end of period loans		354.2			208.8			207.1			199.7			188.0			183.1			184.0			199.7			199.5


(a)		Average loans included loans held-for-sale of $1.5 billion, $3.6 billion, $4.4 billion, $4.0 billion, $5.4 billion, $11.6 billion, and $21.7 billion for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007 respectively, and $10.6 billion and $16.1 billion for full year 2007 and 2006, respectively. These amounts were excluded when calculating the net charge-off rate.

(b)		Purchased credit impaired loans represent loans acquired in the Washington Mutual transaction that were considered credit impaired under SOP 03-3. Under SOP 03-3, these loans are initially recorded at fair value and accrete interest income over the estimated life of the loan when cash flows are reasonably estimable even if the underlying loans are contractually past due.

Page 16

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006

CONSUMER LENDING (continued)

CREDIT DATA AND QUALITY STATISTICS

Net charge-offs excluding purchased credit impaired:
Home equity	$	663		$	511		$	447		$	248		$	150		$	98		$	68		$	564		$	143
Prime mortgage		177			104			50			17			9			4			3			33			9
Subprime mortgage		273			192			149			71			40			26			20			157			47
Auto loans and leases		124			119			118			133			99			63			59			354			238
Other		21			38			12			16			13			44			6			79			25

Total net charge-offs excluding purchased credit impaired		1,258			964			776			485			311			235			156			1,187			462

Net charge-off rate excluding purchased credit impaired:
Home equity		2.78	%		2.16	%		1.89	%		1.05	%		0.65	%		0.44	%		0.32	%		0.62	%		0.18	%
Prime mortgage		1.79			1.08			0.56			0.22			0.13			0.07			0.05			0.13			0.03
Subprime mortgage		7.65			4.98			3.82			2.08			1.62			1.21			0.92			1.55			0.34
Auto loans and leases		1.12			1.07			1.10			1.27			0.97			0.61			0.59			0.86			0.56
Other		0.60			1.44			0.52			0.71			0.58			2.01			0.26			0.88			0.31
Total net charge-off rate excluding purchased credit impaired (a)		2.43			1.89			1.57			1.02			0.69			0.55			0.38			0.67			0.27

30+ day delinquency rate (b) (c)		6.21			3.88			3.33			3.10			2.39			1.97			1.85			3.10			1.80
Nonperforming assets (d) (e) (f)	$	7,705		$	4,996		$	4,031		$	3,084		$	2,254		$	1,862		$	1,639		$	3,084		$	1,658
Allowance for loan losses to ending loans		1.95	%		2.33	%		2.10	%		1.24	%		1.01	%		0.88	%		0.72	%		1.24	%		0.64	%
Allowance for loan losses to ending loans excluding purchased credit impaired loans (g)		2.50			2.33			2.10			1.24			1.01			0.88			0.72			1.24			0.64


(a)		Average loans included loans held-for-sale of $1.5 billion, $3.6 billion, $4.4 billion, $4.0 billion, $5.4 billion, $11.6 billion, and $21.7 billion for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007 respectively, and $10.6 billion and $16.1 billion for full year 2007 and 2006, respectively. These amounts were excluded when calculating the net charge-off rate.

(b)		Excluded loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by U.S. government agencies of $2.0 billion, $1.5 billion, $1.5 billion, $1.2 billion, $979 million, $879 million, $975 million and $960 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.

(c)		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 $787 million, $594 million, $534 million, $663 million, $590 million, $523 million, $519 million and $464 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.

(d)		Nonperforming assets excluded (1) loans eligible for repurchase as well as loans repurchased from Governmental National Mortgage Association (“GNMA”) pools that are insured by U.S. government agencies of $1.8 billion, $1.9 billion, $1.8 billion, $1.5 billion, $1.3 billion, $1.2 billion, $1.3 billion and $1.2 billion at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, and (2) education loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $405 million, $371 million, $252 million, $279 million, $241 million, $200 million, $178 million and $219 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.

(e)		During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform with all other home lending products. Prior period nonperforming assets have been revised to conform with this change.

(f)		Excludes purchased credit impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing under SOP 03-3.

(g)		Excludes the impact of purchased credit impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which reflected expected cash flows (including credit losses), over the remaining life of the portfolio. Accordingly, no allowance for loan losses has been recorded for these loans.

Page 17

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED
(in billions, except ratio data and where otherwise noted)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
CONSUMER LENDING (continued)

Origination volume:
Mortgage origination volume by channel
Retail	$	8.4		$	12.5		$	12.6		$	9.9		$	11.1		$	13.6		$	10.9		$	45.5		$	40.5
Wholesale		5.9			9.1			10.6			10.2			9.8			12.8			9.9			42.7			32.8
Correspondent		13.2			17.0			12.0			9.5			7.2			6.4			4.8			27.9			13.3
CNT (negotiated transactions)		10.2			17.5			11.9			10.4			11.1			11.3			10.5			43.3			32.6

Total mortgage origination volume		37.7			56.1			47.1			40.0			39.2			44.1			36.1			159.4			119.2

Home equity		2.6			5.3			6.7			9.8			11.2			14.6			12.7			48.3			51.9
Education		2.6			1.3			2.0			1.2			2.7			1.1			2.0			7.0			8.1
Auto loans and leases		3.8			5.6			7.2			5.6			5.2			5.3			5.2			21.3			19.3

Avg mortgage loans held-for-sale & loans at fair value (a)		14.9			17.4			13.8			13.8			16.4			21.3			23.8			18.8			12.9
Average assets		239.8			242.1			234.6			224.2			214.1			213.6			212.5			216.1			211.1
Third-party mortgage loans serviced (ending)		1,114.8			659.1			627.1			614.7			600.0			572.4			546.1			614.7			526.7
MSR net carrying value (ending)		16.4			10.9			8.4			8.6			9.1			9.5			7.9			8.6			7.5

SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions)
Production revenue	$	66		$	394		$	376		$	165		$	33		$	368		$	314		$	880		$	304

Net mortgage servicing revenue:
Loan servicing revenue		654			645			593			625			581			563			565			2,334			2,139
Changes in MSR asset fair value:
Due to inputs or assumptions in model		(786	)		1,519			(632	)		(766	)		(810	)		952			108			(516	)		165
Other changes in fair value		(390	)		(394	)		(425	)		(393	)		(377	)		(383	)		(378	)		(1,531	)		(1,440	)

Total changes in MSR asset fair value		(1,176	)		1,125			(1,057	)		(1,159	)		(1,187	)		569			(270	)		(2,047	)		(1,275	)
Derivative valuation adjustments and other		894			(1,468	)		613			1,257			802			(1,005	)		(127	)		927			(550	)

Total net mortgage servicing revenue		372			302			149			723			196			127			168			1,214			314

Mortgage fees and related income		438			696			525			888			229			495			482			2,094			618


(a)		Included $14.5 billion, $16.9 billion, $13.4 billion, $13.5 billion, $14.1 billion, $13.5 billion, and $6.5 billion of prime mortgage loans at fair value for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007, respectively, and $11.9 billion for full year 2007. These loans are classified as trading assets on the Consolidated balance sheets.

Page 18

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CARD SERVICES — MANAGED BASIS

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
INCOME STATEMENT
REVENUE
Credit card income	$	633		$	673		$	600		$	712		$	692		$	682		$	599		$	2,685		$	2,587
All other income		13			91			119			122			67			80			92			361			357

Noninterest revenue		646			764			719			834			759			762			691			3,046			2,944
Net interest income		3,241			3,011			3,185			3,137			3,108			2,955			2,989			12,189			11,801

TOTAL NET REVENUE		3,887			3,775			3,904			3,971			3,867			3,717			3,680			15,235			14,745

Provision for credit losses		2,229			2,194			1,670			1,788			1,363			1,331			1,229			5,711			4,598

NONINTEREST EXPENSE
Compensation expense		267			258			267			260			256			251			254			1,021			1,003
Noncompensation expense		773			763			841			790			827			753			803			3,173			3,344
Amortization of intangibles		154			164			164			173			179			184			184			720			739

TOTAL NONINTEREST EXPENSE		1,194			1,185			1,272			1,223			1,262			1,188			1,241			4,914			5,086


Income before income tax expense		464			396			962			960			1,242			1,198			1,210			4,610			5,061
Income tax expense		172			146			353			351			456			439			445			1,691			1,855

NET INCOME	$	292		$	250		$	609		$	609		$	786		$	759		$	765		$	2,919		$	3,206


Memo: Net securitization gains (amortization)	$	(28	)	$	36		$	70		$	28		$	—		$	16		$	23		$	67		$	82

FINANCIAL METRICS
ROE		8	%		7	%		17	%		17	%		22	%		22	%		22	%		21	%		23	%
Overhead ratio		31			31			33			31			33			32			34			32			34
% of average managed outstandings:
Net interest income		8.18			7.92			8.34			8.20			8.29			8.04			8.11			8.16			8.36
Provision for credit losses		5.63			5.77			4.37			4.67			3.64			3.62			3.34			3.82			3.26
Noninterest revenue		1.63			2.01			1.88			2.18			2.03			2.07			1.88			2.04			2.09
Risk adjusted margin (a)		4.19			4.16			5.85			5.71			6.68			6.49			6.65			6.38			7.19
Noninterest expense		3.01			3.12			3.33			3.20			3.37			3.23			3.37			3.29			3.60
Pretax income (ROO) (b)		1.17			1.04			2.52			2.51			3.31			3.26			3.28			3.09			3.59
Net income		0.74			0.66			1.60			1.59			2.10			2.06			2.08			1.95			2.27

BUSINESS METRICS
Charge volume (in billions)	$	93.9		$	93.6		$	85.4		$	95.5		$	89.8		$	88.0		$	81.3		$	354.6		$	339.6
Net accounts opened (in millions) (c)		16.6			3.6			3.4			5.3			4.0			3.7			3.4			16.4			45.9
Credit cards issued (in millions)		171.9			157.6			156.4			155.0			153.6			150.9			152.1			155.0			154.4
Number of registered internet customers (in millions)		34.3			28.0			26.7			28.3			26.4			24.6			24.3			28.3			22.5

Merchant acquiring business (d)
Bank card volume (in billions)	$	197.1		$	199.3		$	182.4		$	194.4		$	181.4		$	179.7		$	163.6		$	719.1		$	660.6
Total transactions (in billions)		5.7			5.6			5.2			5.4			5.0			4.8			4.5			19.7			18.2


(a)		Represents total net revenue less provision for credit losses.

(b)		Pretax return on average managed outstandings.

(c)		Third quarter of 2008 included approximately 13 million credit card accounts acquired by JPMorgan Chase & Co. in the Washington Mutual transaction; full year 2006 included approximately 30 million accounts from loan portfolio acquisitions.

(d)		Represents 100% of the merchant acquiring business.

Page 19

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CARD SERVICES — MANAGED BASIS

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
SELECTED ENDING BALANCES
Loans:
Loans on balance sheets	$	92,881		$	76,278		$	75,888		$	84,352		$	79,409		$	80,495		$	78,173		$	84,352		$	85,881
Securitized loans		93,664			79,120			75,062			72,701			69,643			67,506			68,403			72,701			66,950

Managed loans	$	186,545		$	155,398		$	150,950		$	157,053		$	149,052		$	148,001		$	146,576		$	157,053		$	152,831


Equity	$	15,000		$	14,100		$	14,100		$	14,100		$	14,100		$	14,100		$	14,100		$	14,100		$	14,100

SELECTED AVERAGE BALANCES
Managed assets	$	169,413		$	161,601		$	159,602		$	158,183		$	154,956		$	154,406		$	156,271		$	155,957		$	148,153
Loans:
Loans on balance sheets	$	79,183		$	75,630		$	79,445		$	79,028		$	79,993		$	79,000		$	81,932		$	79,980		$	73,740
Securitized loans		78,371			77,195			74,108			72,715			68,673			68,428			67,485			69,338			67,367

Managed average loans	$	157,554		$	152,825		$	153,553		$	151,743		$	148,666		$	147,428		$	149,417		$	149,318		$	141,107


Equity	$	14,100		$	14,100		$	14,100		$	14,100		$	14,100		$	14,100		$	14,100		$	14,100		$	14,100

Headcount		22,283			19,570			18,931			18,554			18,887			18,913			18,749			18,554			18,639

MANAGED CREDIT QUALITY STATISTICS
Net charge-offs	$	1,979		$	1,894		$	1,670		$	1,488		$	1,363		$	1,331		$	1,314		$	5,496		$	4,698
Net charge-off rate		5.00	%		4.98	%		4.37	%		3.89	%		3.64	%		3.62	%		3.57	%		3.68	%		3.33	%

Managed delinquency ratios
30+ day		3.91	%		3.46	%		3.66	%		3.48	%		3.25	%		3.00	%		3.07	%		3.48	%		3.13	%
90+ day		1.77			1.76			1.84			1.65			1.50			1.42			1.52			1.65			1.50

Allowance for loan losses (a)	$	5,946		$	3,705		$	3,404		$	3,407		$	3,107		$	3,096		$	3,092		$	3,407		$	3,176
Allowance for loan losses to period-end loans (a)		6.40	%		4.86	%		4.49	%		4.04	%		3.91	%		3.85	%		3.96	%		4.04	%		3.70	%

KEY STATS — WASHINGTON MUTUAL ONLY (b)
Managed loans	$	27,235
30+ day delinquency ratio		5.20	%
90+ day delinquency ratio		1.95

KEY STATS EXCLUDING WASHINGTON MUTUAL
Managed loans	$	159,310		$	155,398		$	150,950		$	157,053		$	149,052		$	148,001		$	146,576		$	157,053			152,831
Managed average loans		157,554			152,825			153,553			151,743		$	148,666		$	147,428		$	149,417			149,318			141,107
Net interest income (c)		8.18	%		7.92	%		8.34	%		8.20	%		8.29	%		8.04	%		8.11	%		8.16	%		8.36	%
Risk adjusted margin (c)(d)		4.19			4.16			5.85			5.71			6.68			6.49			6.65			6.38			7.19
Net charge-off rate		5.00			4.98			4.37			3.89			3.64			3.62			3.57			3.68			3.33
30+ day delinquency ratio		3.69			3.46			3.66			3.48			3.25			3.00			3.07			3.48			3.13
90+ day delinquency ratio		1.74			1.76			1.84			1.65			1.50			1.42			1.52			1.65			1.50


(a)		Loans on a reported basis.

(b)		Statistics are only presented for periods after which the banking operations of Washington Mutual were acquired.

(c)		As a % of average managed outstandings.

(d)		Represents total net revenue less provision for credit losses.

Page 20

JPMorgan Chase & Co.

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
INCOME STATEMENT DATA (a)
Credit card income
Reported	$	1,476		$	1,516		$	1,537		$	1,597		$	1,528		$	1,470		$	1,345		$	5,940		$	6,096
Securitization adjustments		(843	)		(843	)		(937	)		(885	)		(836	)		(788	)		(746	)		(3,255	)		(3,509	)

Managed credit card income	$	633		$	673		$	600		$	712		$	692		$	682		$	599		$	2,685		$	2,587


Net interest income
Reported	$	1,525		$	1,338		$	1,567		$	1,633		$	1,694		$	1,577		$	1,650		$	6,554		$	6,082
Securitization adjustments		1,716			1,673			1,618			1,504			1,414			1,378			1,339			5,635			5,719

Managed net interest income	$	3,241		$	3,011		$	3,185		$	3,137		$	3,108		$	2,955		$	2,989		$	12,189		$	11,801


Total net revenue
Reported	$	3,014		$	2,945		$	3,223		$	3,352		$	3,289		$	3,127		$	3,087		$	12,855		$	12,535
Securitization adjustments		873			830			681			619			578			590			593			2,380			2,210

Managed total net revenue	$	3,887		$	3,775		$	3,904		$	3,971		$	3,867		$	3,717		$	3,680		$	15,235		$	14,745


Provision for credit losses
Reported	$	1,356		$	1,364		$	989		$	1,169		$	785		$	741		$	636		$	3,331		$	2,388
Securitization adjustments		873			830			681			619			578			590			593			2,380			2,210

Managed provision for credit losses	$	2,229		$	2,194		$	1,670		$	1,788		$	1,363		$	1,331		$	1,229		$	5,711		$	4,598


BALANCE SHEETS — AVERAGE BALANCES (a)
Total average assets
Reported	$	93,701		$	87,021		$	88,013		$	88,244		$	88,856		$	88,486		$	91,157		$	89,177		$	82,887
Securitization adjustments		75,712			74,580			71,589			69,939			66,100			65,920			65,114			66,780			65,266

Managed average assets	$	169,413		$	161,601		$	159,602		$	158,183		$	154,956		$	154,406		$	156,271		$	155,957		$	148,153

CREDIT QUALITY STATISTICS (a)
Net charge-offs
Reported	$	1,106		$	1,064		$	989		$	869		$	785		$	741		$	721		$	3,116		$	2,488
Securitization adjustments		873			830			681			619			578			590			593			2,380			2,210

Managed net charge-offs	$	1,979		$	1,894		$	1,670		$	1,488		$	1,363		$	1,331		$	1,314		$	5,496		$	4,698


(a)		JPMorgan Chase & Co. 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 & Co. 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 21

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
COMMERCIAL BANKING

FINANCIAL HIGHLIGHTS
(in millions, except ratio data)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
INCOME STATEMENT
REVENUE
Lending & deposit-related fees	$	212		$	207		$	193		$	172		$	159		$	158		$	158		$	647		$	589
Asset management, administration and commissions		29			26			26			24			24			21			23			92			67
All other income (a)		147			150			115			130			107			133			154			524			417

Noninterest revenue		388			383			334			326			290			312			335			1,263			1,073
Net interest income		737			723			733			758			719			695			668			2,840			2,727

TOTAL NET REVENUE		1,125			1,106			1,067			1,084			1,009			1,007			1,003			4,103			3,800
Provision for credit losses		126			47			101			105			112			45			17			279			160
NONINTEREST EXPENSE
Compensation expense		177			173			178			184			160			182			180			706			740
Noncompensation expense		298			290			294			307			300			300			290			1,197			1,179
Amortization of intangibles		11			13			13			13			13			14			15			55			60

TOTAL NONINTEREST EXPENSE		486			476			485			504			473			496			485			1,958			1,979


Income before income tax expense		513			583			481			475			424			466			501			1,866			1,661
Income tax expense		201			228			189			187			166			182			197			732			651

NET INCOME	$	312		$	355		$	292		$	288		$	258		$	284		$	304		$	1,134		$	1,010


MEMO:
Revenue by product:
Lending	$	377		$	376		$	379		$	380		$	343		$	348		$	348		$	1,419		$	1,344
Treasury services		643			630			616			631			594			569			556			2,350			2,243
Investment banking		87			91			68			70			64			82			76			292			253
Other		18			9			4			3			8			8			23			42			(40	)

Total Commercial Banking revenue	$	1,125		$	1,106		$	1,067		$	1,084		$	1,009		$	1,007		$	1,003		$	4,103		$	3,800


IB revenue, gross (b)	$	252		$	270		$	203		$	227		$	194		$	236		$	231		$	888		$	716


Revenue by business:
Middle Market Banking	$	729		$	708		$	706		$	695		$	680		$	653		$	661		$	2,689		$	2,535
Mid-Corporate Banking		236			235			207			239			167			197			212			815			656
Real Estate Banking		91			94			97			102			108			109			102			421			458
Other		69			69			57			48			54			48			28			178			151

Total Commercial Banking revenue	$	1,125		$	1,106		$	1,067		$	1,084		$	1,009		$	1,007		$	1,003		$	4,103		$	3,800


FINANCIAL RATIOS
ROE		18	%		20	%		17	%		17	%		15	%		18	%		20	%		17	%		18	%
Overhead ratio		43			43			45			46			47			49			48			48			52


(a)		IB-related and commercial card revenue is included in all other income.

(b)		Represents the total revenue related to investment banking products sold to Commercial Banking (“CB”) clients.

Page 22

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
COMMERCIAL BANKING

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
SELECTED BALANCE SHEET DATA (Period-end)
Equity	$	8,000		$	7,000		$	7,000		$	6,700		$	6,700		$	6,300		$	6,300		$	6,700		$	6,300

SELECTED BALANCE SHEET DATA (Average)
Total assets	$	101,681		$	103,469		$	101,979		$	94,550		$	86,652		$	84,687		$	82,545		$	87,140		$	57,754
Loans:
Loans retained		71,901			70,682			67,510			63,749			60,839			59,071			57,185			60,231			53,154
Loans held-for-sale & loans at fair value		397			379			521			1,795			433			741			475			863			442

Total loans		72,298			71,061			68,031			65,544			61,272			59,812			57,660			61,094			53,596
Liability balances (a)		99,410			99,404			99,477			96,716			88,081			84,187			81,752			87,726			73,613
Equity		7,000			7,000			7,000			6,700			6,700			6,300			6,300			6,502			5,702

MEMO:
Loans by business:
Middle Market Banking	$	43,155		$	42,879		$	40,111		$	38,275		$	37,617		$	37,099		$	36,317		$	37,333		$	33,225
Mid-Corporate Banking		16,491			15,357			15,150			15,440			12,076			11,692			10,669			12,481			8,632
Real Estate Banking		7,513			7,500			7,457			7,347			7,144			6,894			7,074			7,116			7,566
Other		5,139			5,325			5,313			4,482			4,435			4,127			3,600			4,164			4,173

Total Commercial Banking loans	$	72,298		$	71,061		$	68,031		$	65,544		$	61,272		$	59,812		$	57,660		$	61,094		$	53,596


Headcount		5,298			4,028			4,075			4,125			4,158			4,295			4,281			4,125			4,459

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	40		$	49		$	81		$	33		$	20		$	(8	)	$	(1	)	$	44		$	27
Nonperforming loans (b)(c)		844			486			446			146			134			135			141			146			121
Nonperforming assets		923			510			453			148			136			137			142			148			122
Allowance for credit losses:
Allowance for loan losses (d)		1,905			1,843			1,790			1,695			1,623			1,551			1,531			1,695			1,519
Allowance for lending-related commitments		191			170			200			236			236			222			187			236			187

Total allowance for credit losses		2,096			2,013			1,990			1,931			1,859			1,773			1,718			1,931			1,706

Net charge-off rate (e)		0.22	%		0.28	%		0.48	%		0.21	%		0.13	%		(0.05)	%		(0.01)	%		0.07	%		0.05	%
Allowance for loan losses to average loans (c)(e)		2.32	(f)		2.61			2.65			2.66			2.67			2.63			2.68			2.81			2.86
Allowance for loan losses to nonperforming loans (b)(c)		320	(f)		401			426			1,161			1,211			1,149			1,086			1,161			1,255
Nonperforming loans to average loans (c)		0.72	(f)		0.68			0.66			0.22			0.22			0.23			0.24			0.24			0.23


(a)		Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities sold under repurchase agreements.

(b)		Nonperforming loans included loans held-for-sale and loans at fair value of $26 million at both June 30, 2008 and March 31, 2008. These amounts were excluded when calculating the allowance coverage ratios. There were no nonperforming loans held-for-sale or held at fair value at September 30, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006.

(c)		Purchased credit impaired loans accounted for under SOP03-3 that were acquired as part of the Washington Mutual transaction were included as nonperforming and were included when calculating the allowance coverage ratio, the allowance for loan losses to nonperforming loans ratio, and the nonperforming loans to average loans ratio. The credit impaired loans at September 30, 2008 were $272 million.

(d)		Beginning in the quarter ended September 30, 2008, the allowance for loan losses included an amount related to loans acquired in the Washington Mutual transaction. Beginning in the quarter ended June 30, 2008, the allowance for loan losses included an amount related to loans acquired in the merger with Bear Stearns.

(e)		Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratio and the net charge-off rate.

(f)		Calculations reflect the inclusion of the September 30, 2008, loan balance of $44.5 billion acquired in the Washington Mutual transaction.

Page 23

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
TREASURY & SECURITIES SERVICES

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
INCOME STATEMENT
REVENUE
Lending & deposit-related fees	$	290		$	283		$	269		$	247		$	244		$	219		$	213		$	923		$	735
Asset management, administration and commissions		719			846			820			806			730			828			686			3,050			2,692
All other income		221			228			200			228			171			184			125			708			612


Noninterest revenue		1,230			1,357			1,289			1,281			1,145			1,231			1,024			4,681			4,039
Net interest income		723			662			624			649			603			510			502			2,264			2,070

TOTAL NET REVENUE		1,953			2,019			1,913			1,930			1,748			1,741			1,526			6,945			6,109

Provision for credit losses		18			7			12			4			9			—			6			19			(1	)
Credit reimbursement to IB (a)		(31	)		(30	)		(30	)		(30	)		(31	)		(30	)		(30	)		(121	)		(121	)

NONINTEREST EXPENSE
Compensation expense		664			669			641			607			579			609			558			2,353			2,198
Noncompensation expense		661			632			571			598			538			523			502			2,161			1,995
Amortization of intangibles		14			16			16			17			17			17			15			66			73

TOTAL NONINTEREST EXPENSE		1,339			1,317			1,228			1,222			1,134			1,149			1,075			4,580			4,266


Income before income tax expense		565			665			643			674			574			562			415			2,225			1,723
Income tax expense		159			240			240			252			214			210			152			828			633

NET INCOME	$	406		$	425		$	403		$	422		$	360		$	352		$	263		$	1,397		$	1,090


REVENUE BY BUSINESS
Treasury Services	$	897		$	852		$	813		$	824		$	780		$	720		$	689		$	3,013		$	2,792
Worldwide Securities Services		1,056			1,167			1,100			1,106			968			1,021			837			3,932			3,317

TOTAL NET REVENUE	$	1,953		$	2,019		$	1,913		$	1,930		$	1,748		$	1,741		$	1,526		$	6,945		$	6,109


FINANCIAL RATIOS
ROE		46	%		49	%		46	%		56	%		48	%		47	%		36	%		47	%		48	%
Overhead ratio		69			65			64			63			65			66			70			66			70
Pretax margin ratio (b)		29			33			34			35			33			32			27			32			28

SELECTED BALANCE SHEET DATA (Period-end)
Equity	$	4,500		$	3,500		$	3,500		$	3,000		$	3,000		$	3,000		$	3,000		$	3,000		$	2,200

SELECTED BALANCE SHEET DATA (Average)
Total assets	$	49,386		$	56,192		$	57,204		$	60,830		$	55,688		$	50,687		$	46,005		$	53,350		$	31,760
Loans (c)		26,650			23,822			23,086			23,489			20,602			20,195			18,948			20,821			15,564
Liability balances (d)		259,992			268,293			254,369			250,645			236,381			217,514			210,639			228,925			189,540
Equity		3,500			3,500			3,500			3,000			3,000			3,000			3,000			3,000			2,285

Headcount		27,592			27,232			26,561			25,669			25,209			25,206			24,875			25,669			25,423


(a)		TSS is charged a credit reimbursement related to certain exposures managed within the IB credit portfolio on behalf of clients shared with TSS.

(b)		Pretax margin represents income before income tax expense divided by total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.

(c)		Loan balances include wholesale overdrafts, commercial card and trade finance loans.

(d)		Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements.

Page 24

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
TREASURY & SECURITIES SERVICES

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

TSS firmwide metrics include revenue recorded in the CB, Retail Banking and Asset Management (“AM”) lines of business and excludes FX revenue recorded in the IB for TSS-related FX activity. In order to capture the firmwide impact of Treasury Services (“TS”) and TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
TSS FIRMWIDE DISCLOSURES
Treasury Services revenue — reported	$	897		$	852		$	813		$	824		$	780		$	720		$	689		$	3,013		$	2,792
Treasury Services revenue reported in Commercial Banking		643			630			616			631			594			569			556			2,350			2,243
Treasury Services revenue reported in other lines of business		76			72			69			75			70			65			60			270			207
Treasury Services firmwide revenue (a)		1,616			1,554			1,498			1,530			1,444			1,354			1,305			5,633			5,242

Worldwide Securities Services revenue		1,056			1,167			1,100			1,106			968			1,021			837			3,932			3,317
Treasury & Securities Services firmwide revenue (a)	$	2,672		$	2,721		$	2,598		$	2,636		$	2,412		$	2,375		$	2,142		$	9,565		$	8,559

Treasury Services firmwide liability balances (average) (b)	$	227,760		$	230,689		$	221,716		$	218,416		$	201,671		$	189,214		$	186,631		$	199,077		$	162,020
Treasury & Securities Services firmwide liability balances (average) (b)		359,401			367,670			353,845			347,361			324,462			301,701			292,391			316,651			262,678

TSS FIRMWIDE FINANCIAL RATIOS
Treasury Services firmwide overhead ratio (c)		52	%		54	%		55	%		53	%		54	%		59	%		59	%		56	%		56	%
Treasury & Securities Services firmwide overhead ratio (c)		60			58			58			57			59			60			63			60			62

FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)	$	14,417		$	15,476		$	15,690		$	15,946		$	15,614		$	15,203		$	14,661		$	15,946		$	13,903

Number of:
US$ ACH transactions originated (in millions)		997			993			1,004			984			943			972			971			3,870			3,503
Total US$ clearing volume (in thousands)		29,277			29,063			28,056			28,386			28,031			27,779			26,840			111,036			104,846
International electronic funds transfer volume (in thousands) (d)		41,831			41,432			40,039			42,723			41,415			42,068			42,399			168,605			145,325
Wholesale check volume (in millions)		595			618			623			656			731			767			771			2,925			3,409
Wholesale cards issued (in thousands) (e)		21,858			19,917			19,122			18,722			18,108			17,535			17,146			18,722			17,228


(a)		TSS firmwide FX revenue, which includes FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of the IB, was $196 million, $222 million, $191 million, $157 million, $144 million, $139 million and $112 million for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007, respectively, and $552 million and $445 million for full year 2007 and 2006, respectively. This is not included in the TS and TSS firmwide revenue.

(b)		Firmwide liability balances include TS’ liability balances recorded in the Commercial Banking line of business.

(c)		Overhead ratios have been calculated based upon firmwide revenue and TSS and TS expense, respectively, including those allocated to certain other lines of business. FX revenue and expense recorded in the IB for TSS-related FX activity are not included in this ratio.

(d)		International electronic funds transfer includes non-US$ ACH and clearing volume.

(e)		Wholesale cards issued include domestic commercial card, stored value card, prepaid card, and government electronic benefit card products.

Page 25

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
ASSET MANAGEMENT

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


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,538		$	1,573		$	1,531		$	1,901		$	1,760		$	1,671		$	1,489		$	6,821		$	5,295
All other income		43			130			59			159			152			173			170			654			521

Noninterest revenue		1,581			1,703			1,590			2,060			1,912			1,844			1,659			7,475			5,816
Net interest income		380			361			311			329			293			293			245			1,160			971

TOTAL NET REVENUE		1,961			2,064			1,901			2,389			2,205			2,137			1,904			8,635			6,787

Provision for credit losses		20			17			16			(1	)		3			(11	)		(9	)		(18	)		(28	)

NONINTEREST EXPENSE
Compensation expense		816			886			825			1,030			848			879			764			3,521			2,777
Noncompensation expense		525			494			477			510			498			456			451			1,915			1,713
Amortization of intangibles		21			20			21			19			20			20			20			79			88

TOTAL NONINTEREST EXPENSE		1,362			1,400			1,323			1,559			1,366			1,355			1,235			5,515			4,578


Income before income tax expense		579			647			562			831			836			793			678			3,138			2,237
Income tax expense		228			252			206			304			315			300			253			1,172			828

NET INCOME	$	351		$	395		$	356		$	527		$	521		$	493		$	425		$	1,966		$	1,409


REVENUE BY CLIENT SEGMENT
Private Bank (a)	$	631		$	708		$	596		$	650		$	624		$	585		$	503		$	2,362		$	1,686
Institutional		486			472			490			754			603			617			551			2,525			1,972
Retail		399			490			466			640			639			602			527			2,408			1,885
Private Wealth Management (a)		352			356			349			345			339			333			323			1,340			1,244
Bear Stearns Brokerage		93			38			—			—			—			—			—			—			—

Total net revenue	$	1,961		$	2,064		$	1,901		$	2,389		$	2,205		$	2,137		$	1,904		$	8,635		$	6,787


FINANCIAL RATIOS
ROE		25	%		31	%		29	%		52	%		52	%		53	%		46	%		51	%		40	%
Overhead ratio		69			68			70			65			62			63			65			64			67
Pretax margin ratio (b)		30			31			30			35			38			37			36			36			33

BUSINESS METRICS
Number of:
Client advisors		1,684			1,717			1,744			1,729			1,680			1,582			1,533			1,729			1,506
Retirement planning services participants		1,492,000			1,505,000			1,519,000			1,501,000			1,495,000			1,477,000			1,423,000			1,501,000			1,362,000
Bear Stearns brokers		323			326			—			—			—			—			—			—			—

% of customer assets in 4 & 5 Star Funds (c)		39	%		40	%		49	%		55	%		55	%		65	%		61	%		55	%		58	%

% of AUM in 1st and 2nd quartiles: (d)
1 year		49	%		51	%		52	%		57	%		47	%		65	%		76	%		57	%		83	%
3 years		67	%		70	%		73	%		75	%		73	%		77	%		76	%		75	%		77	%
5 years		77	%		76	%		75	%		76	%		76	%		76	%		81	%		76	%		79	%

SELECTED BALANCE SHEET DATA (Period-end)
Equity	$	7,000		$	5,200		$	5,000		$	4,000		$	4,000		$	3,750		$	3,750		$	4,000		$	3,500

SELECTED BALANCE SHEET DATA (Average)
Total assets	$	71,189		$	65,015		$	60,286		$	55,989		$	53,879		$	51,710		$	45,816		$	51,882		$	43,635
Loans (e)		39,750			39,264			36,628			32,627			30,928			28,695			25,640			29,496			26,507
Deposits		65,621			69,975			68,184			64,630			59,907			55,981			54,816			58,863			50,607
Equity		5,500			5,066			5,000			4,000			4,000			3,750			3,750			3,876			3,500

Headcount		15,493			15,840			14,955			14,799			14,510			14,108			13,568			14,799			13,298

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (recoveries) (f)	$	(1	)	$	2		$	(2	)	$	2		$	(5	)	$	(5	)	$	—		$	(8	)	$	(19	)
Nonperforming loans		121			68			11			12			28			21			34			12			39
Allowance for loan losses		170			147			130			112			115			105			114			112			121
Allowance for lending-related commitments		5			5			6			7			6			7			5			7			6
Net charge-off (recovery) rate		(0.01	)%		0.02	%		(0.02	)%		0.02	%		(0.06	)%		(0.07	)%		—	%		(0.03	)%		(0.07	)%
Allowance for loan losses to average loans		0.43			0.37			0.35			0.34			0.37			0.37			0.44			0.38			0.46
Allowance for loan losses to nonperforming loans		140			216			1,182			933			411			500			335			933			310
Nonperforming loans to average loans		0.30			0.17			0.03			0.04			0.09			0.07			0.13			0.04			0.15


(a)		In the third quarter of 2008, certain clients were transferred from Private Bank to Private Wealth Management. Prior periods have been revised to conform with this change.

(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)		Derived from the following rating services: Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.

(d)		Derived from the following rating services: Lipper for the United States and Taiwan; Micropal for the United Kingdom, Luxembourg and Hong Kong; and Nomura for Japan.

(e)		Reflects the transfer commencing in the first quarter of 2007 of held-for-investment prime mortgage loans from AM to Corporate within the Corporate/Private Equity segment.

(f)		Net charge-offs are disclosed before any revenue share with other lines of business.

Page 26

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)


	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
	2008		2008		2008		2007		2007		2007		2007		2006
Assets by asset class
Liquidity	$	524	$	478	$	471	$	400	$	368	$	333	$	318	$	311
Fixed income		189		199		200		200		195		190		180		175
Equities & balanced		308		378		390		472		481		467		446		427
Alternatives		132		130		126		121		119		119		109		100

TOTAL ASSETS UNDER MANAGEMENT		1,153		1,185		1,187		1,193		1,163		1,109		1,053		1,013
Custody / brokerage / administration / deposits		409		426		382		379		376		363		342		334

TOTAL ASSETS UNDER SUPERVISION	$	1,562	$	1,611	$	1,569	$	1,572	$	1,539	$	1,472	$	1,395	$	1,347


Assets by client segment
Institutional	$	653	$	645	$	652	$	632	$	603	$	565	$	550	$	538
Private Bank (a)		194		181		179		183		179		169		154		142
Retail		223		276		279		300		304		300		274		259
Private Wealth Management (a)		75		75		77		78		77		75		75		74
Bear Stearns Brokerage		8		8		—		—		—		—		—		—

TOTAL ASSETS UNDER MANAGEMENT	$	1,153	$	1,185	$	1,187	$	1,193	$	1,163	$	1,109	$	1,053	$	1,013


Institutional	$	653	$	646	$	652	$	633	$	604	$	566	$	551	$	539
Private Bank (a)		417		415		412		403		395		373		345		328
Retail		303		357		366		394		399		393		361		343
Private Wealth Management (a)		134		133		139		142		141		140		138		137
Bear Stearns Brokerage		55		60		—		—		—		—		—		—

TOTAL ASSETS UNDER SUPERVISION	$	1,562	$	1,611	$	1,569	$	1,572	$	1,539	$	1,472	$	1,395	$	1,347


Assets by geographic region
U.S. / Canada	$	785	$	771	$	773	$	760	$	745	$	700	$	664	$	630
International		368		414		414		433		418		409		389		383

TOTAL ASSETS UNDER MANAGEMENT	$	1,153	$	1,185	$	1,187	$	1,193	$	1,163	$	1,109	$	1,053	$	1,013


U.S. / Canada	$	1,100	$	1,093	$	1,063	$	1,032	$	1,022	$	971	$	929	$	889
International		462		518		506		540		517		501		466		458

TOTAL ASSETS UNDER SUPERVISION	$	1,562	$	1,611	$	1,569	$	1,572	$	1,539	$	1,472	$	1,395	$	1,347


Mutual fund assets by asset class
Liquidity	$	470	$	416	$	405	$	339	$	308	$	268	$	257	$	255
Fixed income		44		47		45		46		46		49		48		46
Equities		134		179		186		224		235		235		219		206

TOTAL MUTUAL FUND ASSETS	$	648	$	642	$	636	$	609	$	589	$	552	$	524	$	507


(a)		In the third quarter of 2008, certain clients were transferred from Private Bank to Private Wealth Management. Prior periods have been revised to conform with this change.

Page 27

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)


																				Full Year		Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07		1Q07		2007		2006
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,185		$	1,187		$	1,193		$	1,163		$	1,109		$	1,053	$	1,013	$	1,013	$	847
Net asset flows:
Liquidity		55			1			68			26			33			12		7		78		44
Fixed income		(4	)		(1	)		—			3			(2	)		6		2		9		11
Equities, balanced & alternative		(5	)		(3	)		(21	)		4			2			12		10		28		34
Market / performance / other impacts (a)		(78	)		1			(53	)		(3	)		21			26		21		65		77

TOTAL ASSETS UNDER MANAGEMENT	$	1,153		$	1,185		$	1,187		$	1,193		$	1,163		$	1,109	$	1,053	$	1,193	$	1,013


Assets under supervision rollforward
Beginning balance	$	1,611		$	1,569		$	1,572		$	1,539		$	1,472		$	1,395	$	1,347	$	1,347	$	1,149
Net asset flows		61			(5	)		52			37			41			38		27		143		102
Market / performance / other impacts (a)		(110	)		47			(55	)		(4	)		26			39		21		82		96

TOTAL ASSETS UNDER SUPERVISION	$	1,562		$	1,611		$	1,569		$	1,572		$	1,539		$	1,472	$	1,395	$	1,572	$	1,347


(a)		Second quarter 2008 reflects $15 billion for assets under management and $68 billion for assets under supervision from the Bear Stearns merger on May 30, 2008.

Page 28

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CORPORATE/PRIVATE EQUITY

FINANCIAL HIGHLIGHTS
(in millions, except headcount data)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
INCOME STATEMENT
REVENUE
Principal transactions (a) (b)	$	(1,876	)	$	(97	)	$	5		$	773		$	1,082		$	1,372		$	1,325		$	4,552		$	1,181
Securities gains (losses) (c)		440			656			42			146			128			(227	)		(8	)		39			(608	)
All other income (d)		(275	)		(378	)		1,641			214			73			95			83			465			485

Noninterest revenue		(1,711	)		181			1,688			1,133			1,283			1,240			1,400			5,056			1,058
Net interest income (expense)		(125	)		(47	)		(349	)		(200	)		(231	)		(130	)		(76	)		(637	)		(1,044	)

TOTAL NET REVENUE		(1,836	)		134			1,339			933			1,052			1,110			1,324			4,419			14

Provision for credit losses (e)		1,977			37			—			2			(14	)		—			1			(11	)		(1	)

NONINTEREST EXPENSE
Compensation expense		652			611			639			714			569			695			776			2,754			2,626
Noncompensation expense (f) (g)		563			689			(84	)		981			673			817			554			3,025			2,357
Merger costs		96			155			—			22			61			64			62			209			305

Subtotal		1,311			1,455			555			1,717			1,303			1,576			1,392			5,988			5,288
Net expense allocated to other businesses		(1,150	)		(1,070	)		(1,057	)		(1,057	)		(1,059	)		(1,075	)		(1,040	)		(4,231	)		(4,141	)

TOTAL NONINTEREST EXPENSE		161			385			(502	)		660			244			501			352			1,757			1,147


Income (loss) from continuing operations before income tax expense		(3,974	)		(288	)		1,841			271			822			609			971			2,673			(1,132	)
Income tax expense (benefit) (h)		(1,613	)		31			730			1			288			195			304			788			(1,179	)

Income (loss) from continuing operations		(2,361	)		(319	)		1,111			270			534			414			667			1,885			47
Income from discontinued operations (i)		—			—			—			—			—			—			—			—			795
Extraordinary gain (j)		581			—			—			—			—			—			—			—			—

NET INCOME (LOSS)	$	(1,780	)	$	(319	)	$	1,111		$	270		$	534		$	414		$	667		$	1,885		$	842


MEMO:
TOTAL NET REVENUE
Private equity (b)	$	(216	)	$	197		$	163		$	688		$	733		$	1,293		$	1,253		$	3,967		$	1,142
Corporate		(1,620	)		(63	)		1,176			245			319			(183	)		71			452			(1,128	)

TOTAL NET REVENUE	$	(1,836	)	$	134		$	1,339		$	933		$	1,052		$	1,110		$	1,324		$	4,419		$	14

NET INCOME (LOSS)
Private equity (b)	$	(164	)	$	99		$	57		$	356		$	409		$	702		$	698		$	2,165		$	627
Corporate (g) (h)		(881	)		122			1,054			(72	)		163			(248	)		7			(150	)		(391	)
Merger related items (k)		(735	)		(540	)		—			(14	)		(38	)		(40	)		(38	)		(130	)		(189	)

Income (loss) from continuing operations		(1,780	)		(319	)		1,111			270			534			414			667			1,885			47
Income from discontinued operations		—			—			—			—			—			—			—			—			795

TOTAL NET INCOME (LOSS)	$	(1,780	)	$	(319	)	$	1,111		$	270		$	534		$	414		$	667		$	1,885		$	842


Headcount		24,967			22,317			21,769			22,512			22,864			23,532			23,702			22,512			23,242


(a)		Included losses on preferred equity interests in Fannie Mae and Freddie Mac in the third quarter of 2008.

(b)		The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see the Firm’s 2007 Annual Report.

(c)		Included gain on sale of MasterCard shares in the second quarter of 2008.

(d)		Included proceeds from the sale of Visa shares in its initial public offering in the first quarter of 2008.

(e)		Included a $2.0 billion charge to conform Washington Mutual’s loan loss reserves to JPMorgan Chase’s accounting policy in the third quarter of 2008.

(f)		Included a release of credit card litigation reserves in the first quarter of 2008.

(g)		Insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material proceedings were $512 million for full year 2006.

(h)		Included a tax benefit of $359 million related to audit resolutions in the fourth quarter of 2006.

(i)		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.

(j)		Effective September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank from the FDIC for $1.9 billion. The fair value of the net assets acquired from the FDIC exceeded the purchase price which resulted in negative goodwill. In accordance with SFAS 141, nonfinancial assets that are not held for sale were written down against that negative goodwill. The negative goodwill that remained after writing down nonfinancial assets was recognized as an extraordinary gain.

(k)		Included an accounting conformity loan loss reserve provision and an extraordinary gain related to the Washington Mutual transaction in the third quarter of 2008. The second quarter of 2008 reflects Bear Stearns’ equity earnings. Beginning in the second quarter of 2008, Bear Stearns merger related items include merger costs, Bear Stearns’ asset management liquidation costs and Bear Stearns’ private client services broker retention expense. Periods prior to the second quarter of 2008 represent costs related to the Bank One and Bank of New York transactions.

Page 29

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CORPORATE/PRIVATE EQUITY

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


																				Full Year		Full Year
	3Q08			2Q08			1Q08			4Q07		3Q07		2Q07			1Q07			2007		2006
SUPPLEMENTAL
TREASURY
Securities gains (losses) (a)	$	442		$	656		$	42		$	146	$	126	$	(227	)	$	(8	)	$	37	$	(619	)
Investment securities portfolio (average) (b)		105,984			97,223			80,443			82,445		85,470		87,760			86,436			85,517		63,361
Investment securities portfolio (ending) (b)		115,703			103,751			91,323			76,200		86,495		86,821			88,681			76,200		82,091
Mortgage loans (average) (c)		7,221			7,004			6,730			6,514		5,717		5,065			5,247			5,639		—
Mortgage loans (ending) (c)		7,297			7,150			6,847			6,635		6,351		4,974			5,150			6,635		—

PRIVATE EQUITY
Private equity gains (losses)
Direct investments
Realized gains	$	40		$	540		$	1,113		$	100	$	504	$	985		$	723		$	2,312	$	1,223
Unrealized gains (losses) (d)(e)		(273	)		(326	)		(881	)		569		227		290			521			1,607		(1	)

Total direct investments		(233	)		214			232			669		731		1,275			1,244			3,919		1,222
Third-party fund investments		27			6			(43	)		43		35		53			34			165		77

Total private equity gains (losses) (f)	$	(206	)	$	220		$	189		$	712	$	766	$	1,328		$	1,278		$	4,084	$	1,299


Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	600		$	615		$	603		$	390	$	409	$	465		$	389		$	390	$	587
Cost		705			665			499			288		291		367			366			288		451
Quoted public value		657			732			720			536		560		600			493			536		831
Privately-held direct securities
Carrying value		6,038			6,270			5,191			5,914		5,336		5,247			5,294			5,914		4,692
Cost		6,058			6,113			4,973			4,867		5,003		5,228			5,574			4,867		5,795
Third-party fund investments
Carrying value		889			838			811			849		839		812			744			849		802
Cost		1,121			1,094			1,064			1,076		1,078		1,067			1,026			1,076		1,080


Total private equity portfolio — Carrying value	$	7,527		$	7,723		$	6,605		$	7,153	$	6,584	$	6,524		$	6,427		$	7,153	$	6,081


Total private equity portfolio — Cost	$	7,884		$	7,872		$	6,536		$	6,231	$	6,372	$	6,662		$	6,966		$	6,231	$	7,326


(a)		The second quarter of 2008 included gain on the sale of MasterCard shares. All periods reflect repositioning of the Corporate investment securities portfolio and exclude gains/losses on securities used to manage risk associated with MSRs.

(b)		Includes Chief Investment Office investment securities only.

(c)		Held-for-investment prime mortgage loans were transferred from AM to the Corporate/Private Equity segment for risk management and reporting purposes. The initial transfer in the first quarter of 2007 had no material impact on the financial results of Corporate/Private Equity.

(d)		Unrealized gains (losses) contains reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.

(e)		The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see the Firm’s 2007 Annual Report.

(f)		Included in principal transactions revenue in the Consolidated Statements of Income.

Page 30

JPMorgan Chase & Co.

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


	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
	2008		2008		2008		2007		2007		2007		2007		2006
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	202,170	$	137,236	$	141,921	$	133,253	$	126,343	$	111,082	$	108,627	$	118,686
Loans — Non-U.S.		86,275		92,123		89,376		79,823		71,385		70,886		59,567		65,056

TOTAL WHOLESALE LOANS — REPORTED (b)		288,445		229,359		231,297		213,076		197,728		181,968		168,194		183,742

CONSUMER (c)
Home loan portfolio — excluding purchased credit impaired:
Home equity		116,804		95,129		94,968		94,832		93,026		90,989		87,741		85,730
Prime mortgage		70,375		47,185		45,080		40,558		35,610		31,242		33,912		46,488
Subprime mortgage		18,162		14,792		15,775		15,473		12,120		11,872		12,662		13,180
Option ARMs		18,989		—		—		—		—		—		—		—

Total home loan portfolio — excluding purchased credit impaired		224,330		157,106		155,823		150,863		140,756		134,103		134,315		145,398
Home loan portfolio -purchased credit impaired: (d)
Home equity		26,507		—		—		—		—		—		—		—
Prime mortgage		24,672		—		—		—		—		—		—		—
Subprime mortgage		3,863		—		—		—		—		—		—		—
Option ARMs		22,653		—		—		—		—		—		—		—

Total home loan portfolio — purchased credit impaired		77,695		—		—		—		—		—		—		—
Other Consumer:
Auto loans and leases		43,306		44,867		44,714		42,350		40,871		41,231		40,937		41,009
Credit card — reported (e)		92,881		76,278		75,888		84,352		79,409		80,495		78,173		85,881
Other loans		34,724		30,419		29,334		28,733		27,556		27,240		28,146		27,097

TOTAL CONSUMER LOANS — REPORTED		472,936		308,670		305,759		306,298		288,592		283,069		281,571		299,385

TOTAL LOANS — REPORTED		761,381		538,029		537,056		519,374		486,320		465,037		449,765		483,127
Credit card — securitized		93,664		79,120		75,062		72,701		69,643		67,506		68,403		66,950

TOTAL LOANS — MANAGED		855,045		617,149		612,118		592,075		555,963		532,543		518,168		550,077
Derivative receivables		118,648		122,389		99,110		77,136		64,592		59,038		49,647		55,601
Receivables from customers (f)		25,422		26,572		—		—		—		—		—		—

TOTAL CREDIT-RELATED ASSETS		999,115		766,110		711,228		669,211		620,555		591,581		567,815		605,678
Wholesale lending-related commitments		407,823		430,028		438,392		446,652		468,145		435,718		412,382		391,424

TOTAL	$	1,406,938	$	1,196,138	$	1,149,620	$	1,115,863	$	1,088,700	$	1,027,299	$	980,197	$	997,102

Memo: Total by category
Total wholesale exposure (g)	$	840,338	$	808,348	$	768,799	$	736,864	$	730,465	$	676,724	$	630,223	$	630,767
Total consumer managed loans (h)		566,600		387,790		380,821		378,999		358,235		350,575		349,974		366,335

Total	$	1,406,938	$	1,196,138	$	1,149,620	$	1,115,863	$	1,088,700	$	1,027,299	$	980,197	$	997,102


Risk profile of wholesale credit exposure:

Investment-grade (i)	$	620,524	$	595,043	$	590,439	$	571,394	$	548,663	$	532,134	$	487,309	$	490,185

Noninvestment-grade: (i)
Noncriticized		161,503		154,218		147,771		134,983		155,172		127,818		121,981		113,049
Criticized performing		14,491		11,611		9,570		6,267		5,605		4,964		5,090		4,599
Criticized nonperforming		1,418		899		742		571		414		252		263		427

Total noninvestment-grade		177,412		166,728		158,083		141,821		161,191		133,034		127,334		118,075

Loans held-for-sale & loans at fair value		16,980		20,005		20,277		23,649		20,611		11,556		15,580		22,256
Receivables from customers (f)		25,422		26,572		—		—		—		—		—		—
Purchased nonperforming wholesale loans (j)		—		—		—		—		—		—		—		251

Total wholesale exposure	$	840,338	$	808,348	$	768,799	$	736,864	$	730,465	$	676,724	$	630,223	$	630,767


(a)		Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management.

(b)		Includes loans held-for-sale and loans at fair value.

(c)		Includes Retail Financial Services, Card Services and residential mortgage loans reported in the Corporate/Private Equity segment to be risk managed by the Chief Investment Office.

(d)		Purchased credit impaired loans represent loans acquired in the Washington Mutual transaction that were considered credit impaired under SOP 03-3, and include loans that were considered nonperforming by Washington Mutual prior to the transaction closing. Under SOP 03-3, these loans are considered to be performing loans as of the transaction date and are initially recorded at fair value and accrete interest income over the estimated life of the loan when cash flows are reasonably estimable, even if the underlying loans are contractually past due.

(e)		Includes $158 million of purchased credit impaired loans at September 30, 2008.

(f)		Represents margin loans to brokerage customers included in accrued interest and accounts receivable on the Consolidated Balance Sheet.

(g)		Represents total wholesale loans, derivative receivables, wholesale lending-related commitments and receivables from customers.

(h)		Represents total consumer loans plus credit card securitizations, and excludes consumer lending-related commitments.

(i)		Excludes loans held-for-sale and loans at fair value.

(j)		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 commencing January 1, 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 31

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
	2008			2008			2008			2007			2007			2007			2007			2006
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS (a)
Loans — U.S.	$	1,185		$	806		$	761		$	490		$	401		$	190		$	205		$	309
Loans — Non-U.S.		220			64			20			24			26			38			62			82

TOTAL WHOLESALE LOANS		1,405			870			781			514			427			228			267			391


CONSUMER LOANS (b)
Home loan portfolio (includes RFS and Corporate/Private Equity):
Home equity (c)		1,142			1,008			924			786			556			469			442			454
Prime mortgage		1,496			1,232			860			501			282			404			319			181
Subprime mortgage (c)		2,384			1,715			1,401			1,017			790			481			449			588

Total home loan portfolio		5,022			3,955			3,185			2,304			1,628			1,354			1,210			1,223
Auto loans and leases		119			102			94			116			92			81			95			132
Credit card — reported		5			6			6			7			7			8			9			9
Other loans		382			340			335			341			336			335			326			322

TOTAL CONSUMER LOANS (d) (e)		5,528			4,403			3,620			2,768			2,063			1,778			1,640			1,686



TOTAL NONPERFORMING LOANS REPORTED (c)		6,933			5,273			4,401			3,282			2,490			2,006			1,907			2,077

Derivative receivables		45			80			31			29			34			30			36			36
Assets acquired in loan satisfactions		2,542			880			711			622			485			387			269			228

TOTAL NONPERFORMING ASSETS	$	9,520		$	6,233		$	5,143		$	3,933		$	3,009		$	2,423		$	2,212		$	2,341


TOTAL NONPERFORMING LOANS TO TOTAL LOANS REPORTED		0.91	%		0.98	%		0.82	%		0.63	%		0.51	%		0.43	%		0.42	%		0.43	%
NONPERFORMING ASSETS BY LOB

Investment Bank	$	583		$	490		$	439		$	453		$	325		$	119		$	128		$	269
Retail Financial Services (c) (e)		7,878			5,153			4,230			3,309			2,513			2,134			1,898			1,902
Card Services		5			6			6			7			7			8			9			9
Commercial Banking		923			510			453			148			136			137			142			122
Treasury & Securities Services		—			—			—			—			—			—			—			—
Asset Management		121			68			11			12			28			21			35			39
Corporate/Private Equity (f)		10			6			4			4			—			4			—			—

TOTAL	$	9,520		$	6,233		$	5,143		$	3,933		$	3,009		$	2,423		$	2,212		$	2,341


(a)		Included nonperforming loans held-for-sale and loans at fair value of $32 million, $51 million, $70 million, $50 million, $75 million, $25 million, $4 million and $4 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. Excluded purchased held-for-sale wholesale loans.

(b)		There were no nonperforming loans held-for-sale at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, and September 30, 2007, while there were $215 million, $112 million and $116 million at June 30, 2007, March 31, 2007, and December 31, 2006, respectively.

(c)		During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform with all other home lending products. Prior period nonperforming loans and assets have been revised to conform with this change.

(d)		Nonperforming loans and assets excluded (1) loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by U.S. government agencies of $1.8 billion, $1.9 billion, $1.8 billion, $1.5 billion, $1.3 billion, $1.2 billion, $1.3 billion, and $1.2 billion at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March, 31, 2007, and December 31, 2006, respectively, and (2) education loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $405 million, $371 million, $252 million, $279 million, $241 million, $200 million, $178 million, and $219 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.

(e)		Excludes purchased credit impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing under SOP 03-3.

(f)		Predominantly relates to held-for-investment prime mortgage loans transferred from AM to the Corporate/Private Equity segment.

Page 32

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
GROSS CHARGE-OFFS
Wholesale loans	$	71		$	82		$	130		$	54		$	101		$	13		$	17		$	185		$	186
Consumer (includes RFS and Corporate/Private Equity)		1,375			1,079			880			582			403			321			241			1,547			802
Credit card — reported		1,245			1,209			1,144			1,000			911			877			847			3,635			2,896

Total loans — reported		2,691			2,370			2,154			1,636			1,415			1,211			1,105			5,367			3,884
Credit card — securitized		985			949			791			716			679			704			702			2,801			2,579

Total loans — managed		3,676			3,319			2,945			2,352			2,094			1,915			1,807			8,168			6,463


RECOVERIES
Wholesale loans		19			41			38			29			19			42			23			113			208
Consumer (includes RFS and Corporate/Private Equity)		49			54			55			47			49			48			53			197			226
Credit card — reported		139			145			155			131			126			136			126			519			408

Total loans — reported		207			240			248			207			194			226			202			829			842
Credit card — securitized		112			119			110			97			101			114			109			421			369

Total loans — managed		319			359			358			304			295			340			311			1,250			1,211


NET CHARGE-OFFS
Wholesale loans		52			41			92			25			82			(29	)		(6	)		72			(22	)
Consumer (includes RFS and Corporate/Private Equity)		1,326			1,025			825			535			354			273			188			1,350			576
Credit card — reported		1,106			1,064			989			869			785			741			721			3,116			2,488

Total loans — reported		2,484			2,130			1,906			1,429			1,221			985			903			4,538			3,042
Credit card — securitized		873			830			681			619			578			590			593			2,380			2,210

Total loans — managed	$	3,357		$	2,960		$	2,587		$	2,048		$	1,799		$	1,575		$	1,496		$	6,918		$	5,252


NET CHARGE-OFF RATES
Wholesale loans (a)		0.10	%		0.08	%		0.18	%		0.05	%		0.19	%		(0.07	)%		(0.02	)%		0.04	%		(0.01	)%
Consumer (b)		2.29			1.81			1.50			1.01			0.70			0.57			0.47			0.69			0.31
Credit card — reported		5.56			5.66			5.01			4.36			3.89			3.76			3.57			3.90			3.37
Total loans — reported (a) (b)		1.91			1.67			1.53			1.19			1.07			0.90			0.85			1.00			0.73
Credit card — securitized		4.43			4.32			3.70			3.38			3.34			3.46			3.56			3.43			3.28
Total loans — managed (a) (b)		2.24			2.02			1.81			1.48			1.37			1.25			1.22			1.33			1.09

Memo: Credit card — managed		5.00			4.98			4.37			3.89			3.64			3.62			3.57			3.68			3.33


(a)		Average wholesale loans held-for-sale and loans at fair value were $18.0 billion, $20.8 billion, $20.1 billion, $26.8 billion, $17.8 billion, $15.5 billion and $14.2 billion for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007, respectively, and $18.6 billion and $22.2 billion for full year 2007 and 2006, respectively. These amounts were excluded when calculating the net charge-off rates.

(b)		Average consumer (excluding card) loans held-for-sale and loans at fair value were $1.5 billion, $3.6 billion, $4.4 billion, $4.0 billion, $5.4 billion, $11.7 billion and $21.7 billion for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, and March 31, 2007, respectively, and $10.6 billion and $16.1 billion for full year 2007 and 2006, respectively. These amounts were excluded when calculating the net charge-off rates.

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JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	13,246		$	11,746		$	9,234		$	8,113		$	7,633		$	7,300		$	7,279		$	7,279		$	7,090
Additions resulting from acquisition, September 25, 2008 (a)		2,535			—			—			—			—			—			—			—			—
Net charge-offs		(2,484	)		(2,130	)		(1,906	)		(1,429	)		(1,221	)		(985	)		(903	)		(4,538	)		(3,042	)
Provision for loan losses (b)		5,760			3,624			4,419			2,550			1,693			1,316			979			6,538			3,153
Other (c)		(5	)		6			(1	)		—			8			2			(55	)		(45	)		78

Ending balance	$	19,052		$	13,246		$	11,746		$	9,234		$	8,113		$	7,633		$	7,300		$	9,234		$	7,279


SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING- RELATED COMMITMENTS
Beginning balance	$	686		$	855		$	850		$	858		$	766		$	553		$	524		$	524		$	400
Provision for lending-related commitments (d)		27			(169	)		5			(8	)		92			213			29			326			124

Ending balance	$	713		$	686		$	855		$	850		$	858		$	766		$	553		$	850		$	524


ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset specific	$	253		$	174		$	146		$	108		$	53		$	52		$	54		$	108		$	51
Formula — based		5,326			4,295			3,691			3,046			2,810			2,650			2,639			3,046			2,660

Total wholesale		5,579			4,469			3,837			3,154			2,863			2,702			2,693			3,154			2,711


Consumer
Asset specific		70			61			75			80			70			81			70			80		$	67
Formula — based		13,403			8,716			7,834			6,000			5,180			4,850			4,537			6,000			4,501

Total consumer		13,473			8,777			7,909			6,080			5,250			4,931			4,607			6,080			4,568


Total allowance for loan losses		19,052			13,246			11,746			9,234			8,113			7,633			7,300			9,234			7,279
Allowance for lending-related commitments		713			686			855			850			858			766			553			850			524

Total allowance for credit losses	$	19,765		$	13,932		$	12,601		$	10,084		$	8,971		$	8,399		$	7,853		$	10,084		$	7,803


Wholesale allowance for loan losses to total wholesale loans (e)		2.06	%		2.13	%		1.82	%		1.67	%		1.62	%		1.59	%		1.76	%		1.67	%		1.68	%
Consumer allowance for loan losses to total consumer loans (f) (g)		2.86			2.86			2.63			2.01			1.84			1.79			1.72			2.01			1.71
Allowance for loan losses to total loans (e) (f) (g)		2.56			2.57			2.29			1.88			1.76			1.71			1.74			1.88			1.70
Allowance for loan losses to total nonperforming loans (h) (i)		287			254			271			286			336			432			408			286			372
Allowance for loan losses to ending loans excluding purchased impaired loans (g)		2.87			2.57			2.29			1.88			1.76			1.71			1.74			1.88			1.70

ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	2,654		$	2,429		$	1,891		$	1,329		$	1,112		$	1,037		$	1,037		$	1,329		$	1,052
Retail Financial Services		7,517			5,062			4,496			2,668			2,135			1,818			1,501			2,668			1,392
Card Services		5,946			3,705			3,404			3,407			3,107			3,096			3,092			3,407			3,176
Commercial Banking		2,698			1,843			1,790			1,695			1,623			1,551			1,531			1,695			1,519
Treasury & Securities Services		47			40			26			18			13			9			11			18			7
Asset Management		170			147			130			112			115			105			114			112			121
Corporate/Private Equity		20			20			9			5			8			17			14			5			12

Total	$	19,052		$	13,246		$	11,746		$	9,234		$	8,113		$	7,633		$	7,300		$	9,234		$	7,279


(a)		Related to the Washington Mutual transaction in the third quarter of 2008.

(b)		Includes accounting conformity loan loss reserve provision related to the acquisition of Washington Mutual Bank’s banking operations.

(c)		Full year 2006 primarily reflect The Bank of New York transaction.

(d)		Full year 2006 included $7 million related to The Bank of New York transaction.

(e)		Wholesale loans held-for-sale and loans at fair value were $17.0 billion, $20.0 billion, $20.3 billion, $23.6 billion, $20.6 billion, $11.6 billion, $15.6 billion, and $22.5 billion at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively, these amounts were excluded when calculating the allowance coverage ratios.

(f)		Consumer loans held-for-sale were $1.6 billion, $2.2 billion, $4.5 billion, $4.0 billion, $3.9 billion, $8.3 billion, $13.4 billion, and $32.7 billion at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively. These amounts were excluded when calculating the allowance coverage ratios.

(g)		Includes $78.1 billion in purchased credit impaired loans acquired in the Washington Mutual transaction and accounted for under SOP 03-3 at September 30, 2008. These loans were accounted for at fair value on the acquisition date, including an adjustment for expected credit losses over the remaining life of the portfolio. Accordingly, no allowance for loan losses has been recorded for these loans as of September 30, 2008.

(h)		Nonperforming loans held-for-sale and loans at fair value were $32 million, $51 million, $70 million, $50 million, $75 million, $240 million, $116 million, and $120 million at September 30, 2008, June 30, 2007, March 31, 2007, December 31, 2007, September 30, 2007, June 30, 2007, March 31, 2007, and December 31, 2006, respectively.

(i)		Approximately $6.7 billion in nonperforming loans acquired in the Washington Mutual transaction and accounted for under SOP 03-3 were excluded when calculating the ratio of allowance for loan losses to total nonperforming loans. These loans were recorded at fair value on the acquisition date, which reflected expected cash flows (including credit losses), over the remaining life of the portfolio. Accordingly, no allowance for loan losses has been recorded for these assets as of September 30, 2008.

Page 34

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	238		$	538		$	571		$	208		$	146		$	(13	)	$	35		$	376		$	112
Commercial Banking		105			77			143			105			98			10			17			230			133
Treasury & Securities Services		7			7			11			5			3			(1	)		4			11			(1	)
Asset Management		21			17			17			(2	)		4			(13	)		(8	)		(19	)		(30	)
Corporate/Private Equity (a) (b)		564			36			—			—			—			—			—			—			(1	)

Total wholesale		935			675			742			316			251			(17	)		48			598			213

Retail Financial Services		2,056			1,584			2,688			1,063			671			592			294			2,620			552
Card Services — reported		1,356			1,364			989			1,169			785			741			636			3,331			2,388
Corporate/Private Equity (a) (c)		1,413			1			—			2			(14	)		—			1			(11	)		—

Total consumer		4,825			2,949			3,677			2,234			1,442			1,333			931			5,940			2,940

Total provision for loan losses	$	5,760		$	3,624		$	4,419		$	2,550		$	1,693		$	1,316		$	979		$	6,538		$	3,153


LENDING-RELATED COMMITMENTS
Investment Bank	$	(4	)	$	(140	)	$	47		$	(8	)	$	81		$	177		$	28		$	278		$	79
Commercial Banking		21			(30	)		(42	)		—			14			35			—			49			27
Treasury & Securities Services		11			—			1			(1	)		6			1			2			8			—
Asset Management		(1	)		—			(1	)		1			(1	)		2			(1	)		1			2

Total wholesale		27			(170	)		5			(8	)		100			215			29			336			108

Retail Financial Services		—			1			—			—			(8	)		(2	)		—			(10	)		9
Card Services — reported		—			—			—			—			—			—			—			—			—

Total consumer		—			1			—			—			(8	)		(2	)		—			(10	)		9

Total provision for lending-related commitments	$	27		$	(169	)	$	5		$	(8	)	$	92		$	213		$	29		$	326		$	117


TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	234		$	398		$	618		$	200		$	227		$	164		$	63		$	654		$	191
Commercial Banking		126			47			101			105			112			45			17			279			160
Treasury & Securities Services		18			7			12			4			9			—			6			19			(1	)
Asset Management		20			17			16			(1	)		3			(11	)		(9	)		(18	)		(28	)
Corporate/Private Equity (a) (b)		564			36			—			—			—			—			—			—			(1	)

Total wholesale		962			505			747			308			351			198			77			934			321

Retail Financial Services		2,056			1,585			2,688			1,063			663			590			294			2,610			561
Card Services — reported		1,356			1,364			989			1,169			785			741			636			3,331			2,388
Corporate/Private Equity (a) (c)		1,413			1			—			2			(14	)		—			1			(11	)		—

Total consumer		4,825			2,950			3,677			2,234			1,434			1,331			931			5,930			2,949

Total provision for credit losses		5,787			3,455			4,424			2,542			1,785			1,529			1,008			6,864			3,270


Card Services — securitized		873			830			681			619			578			590			593			2,380			2,210

Managed provision for credit losses	$	6,660		$	4,285		$	5,105		$	3,161		$	2,363		$	2,119		$	1,601		$	9,244		$	5,480


(a)		Represents provision expense related to loans acquired in the Washington Mutual transaction in the third quarter of 2008.

(b)		Represents provision expense related to loans acquired in the Bear Stearns transaction in the second quarter of 2008.

(c)		Includes amounts related to held-for-investment prime mortgages transferred from AM to the Corporate/Private Equity segment during 2007.

Page 35

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
CAPITAL, INTANGIBLE ASSETS AND DEPOSITS

(in millions, except per share and ratio data)


																						Full Year			Full Year
	3Q08			2Q08			1Q08			4Q07			3Q07			2Q07			1Q07			2007			2006
COMMON SHARES OUTSTANDING
Weighted-average basic shares outstanding		3,444.6			3,426.2			3,396.0			3,367.1			3,375.9			3,415.1			3,456.4			3,403.6			3,470.1
Weighted-average diluted shares outstanding		3,444.6	(d)		3,531.0			3,494.7			3,471.8			3,477.7			3,521.6			3,559.5			3,507.6			3,573.9
Common shares outstanding — at period end		3,726.9			3,435.7			3,400.8			3,367.4			3,358.8			3,398.5			3,416.3			3,367.4			3,461.7

Cash dividends declared per share	$	0.38		$	0.38		$	0.38		$	0.38		$	0.38		$	0.38		$	0.34		$	1.48		$	1.36
Book value per share		36.95			37.02			36.94			36.59			35.72			35.08			34.45			36.59			33.45
Dividend payout (a)		399	%		71	%		56	%		44	%		39	%		31	%		25	%		34	%		34	%

NET INCOME	$	527		$	2,003		$	2,373		$	2,971		$	3,373		$	4,234		$	4,787		$	15,365		$	14,444
Preferred dividends		161			90			—			—			—			—			—			—			4

Net income applicable to common stock	$	366		$	1,913		$	2,373		$	2,971		$	3,373		$	4,234		$	4,787		$	15,365		$	14,440


NET INCOME PER SHARE
Basic earnings per share
Income (loss) from continuing operations		(0.06	)		0.56			0.70			0.88			1.00			1.24			1.38			4.51			3.93
Net income		0.11			0.56			0.70			0.88			1.00			1.24			1.38			4.51			4.16

Diluted earnings per share
Income (loss) from continuing operations		(0.06	)		0.54			0.68			0.86			0.97			1.20			1.34			4.38			3.82
Net income		0.11			0.54			0.68			0.86			0.97			1.20			1.34			4.38			4.04

SHARE PRICE
High	$	49.00		$	49.95		$	49.29		$	48.02		$	50.48		$	53.25		$	51.95		$	53.25		$	49.00
Low		29.24			33.96			36.01			40.15			42.16			47.70			45.91			40.15			37.88
Close		46.70			34.31			42.95			43.65			45.82			48.45			48.38			43.65			48.30
Market capitalization		174,048			117,881			146,066			146,986			153,901			164,659			165,280			146,986			167,199

STOCK REPURCHASE PROGRAM (b)
Aggregate repurchases	$	—		$	—		$	—		$	163.3		$	2,135.4		$	1,875.3		$	4,000.9		$	8,174.9		$	3,936.1
Common shares repurchased		—			—			—			3.6			47.0			36.7			80.9			168.2			90.7
Average purchase price	$	—		$	—		$	—		$	45.29		$	45.42		$	51.13		$	49.45		$	48.60		$	43.41

CAPITAL RATIOS (c)
Tier 1 capital	$	111,630		$	98,775		$	89,646		$	88,746		$	86,096		$	85,096		$	82,538		$	88,746		$	81,055
Total capital		159,175			145,012			134,948			132,242			128,543			122,276			115,142			132,242			115,265
Risk-weighted assets		1,261,034			1,079,199			1,075,697			1,051,879			1,028,551			1,016,031			972,813			1,051,879			935,909
Adjusted average assets		1,555,297			1,536,439			1,507,724			1,473,541			1,423,171			1,376,727			1,324,145			1,473,541			1,308,699
Tier 1 capital ratio		8.9	%		9.2	%		8.3	%		8.4	%		8.4	%		8.4	%		8.5	%		8.4	%		8.7	%
Total capital ratio		12.6			13.4			12.5			12.6			12.5			12.0			11.8			12.6			12.3
Tier 1 leverage ratio		7.2			6.4			5.9			6.0			6.0			6.2			6.2			6.0			6.2

INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	46,121		$	45,993		$	45,695		$	45,270		$	45,335		$	45,254		$	45,063		$	45,270		$	45,186
Mortgage servicing rights		17,048			11,617			8,419			8,632			9,114			9,499			7,937			8,632			7,546
Purchased credit card relationships		1,827			1,984			2,140			2,303			2,427			2,591			2,758			2,303			2,935
All other intangibles		3,653			3,675			3,815			3,796			3,959			4,103			4,205			3,796			4,371

Total intangibles	$	68,649		$	63,269		$	60,069		$	60,001		$	60,835		$	61,447		$	59,963		$	60,001		$	60,038


DEPOSITS
U.S. offices:
Noninterest-bearing	$	193,253		$	125,606		$	132,072		$	129,406		$	115,036		$	120,470		$	123,942		$	129,406		$	132,781
Interest-bearing		506,974			362,150			394,613			376,194			354,459			342,079			342,368			376,194			337,812
Non-U.S. offices:
Noninterest-bearing		9,747			7,827			7,232			6,342			6,559			5,919			8,104			6,342			7,662
Interest-bearing		259,809			227,322			227,709			228,786			202,037			182,902			152,014			228,786			160,533

Total deposits	$	969,783		$	722,905		$	761,626		$	740,728		$	678,091		$	651,370		$	626,428		$	740,728		$	638,788


(a)		Based on net income amounts.

(b)		Excludes commission costs.

(c)		The Federal Reserve has granted the Firm, for a period of 18 months following the merger with Bear Stearns, relief up to a certain specified amount and subject to certain conditions from the Federal Reserve’s risk-based and leverage capital guidelines in respect to the Bear Stearns risk-weighted assets and other exposures acquired. The amount of such relief is subject to reduction by one-sixth each quarter subsequent to the merger with Bear Stearns and expires on October 1, 2009.

(d)		Common equivalent shares have been excluded from the computation of diluted earnings per share for the third quarter of 2008, as the effect would be antidilutive.

Page 36

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
Glossary of Terms

ACH: Automated Clearing House.

Average managed assets: Refers to total assets on the Firm’s Consolidated Balance Sheets 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 & Co. 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/Private Equity: Includes Private Equity, Treasury and Corporate Other, which includes other centrally managed expense 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 expense related to the securitized receivables are reclassified into credit card income in the Consolidated Statements of Income.

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

Investment-grade: An indication of credit quality based upon JPMorgan Chase & Co.’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 to present revenue on a fully taxable-equivalent basis. Management uses this non-GAAP financial measure at the segment level because it believes this provides information to enable investors to understand 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 Consolidated Balance Sheets 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 & Co. and, therefore, creates a repayment risk for the Firm. When the mark-to-market value is negative, JPMorgan Chase & Co. owes the counterparty. In this situation, the Firm does not have repayment risk.

Merger costs: Reflects costs associated with the Washington Mutual and Bear Stearns mergers in 2008, costs associated with The Bank of New York, Inc. transaction (“The Bank of New York”) in 2007, and costs associated with the 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 financial 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 140: “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities — a replacement of FASB Statement No. 125.”

SFAS 141: “Business Combinations.”

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.”

SOP 03-3: “Accounting for Certain Loans of Debt Securities Acquired in a Transfer.”

Taxable-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 fully taxable securities and investments. This non-GAAP financial measure 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.

Unaudited: Financial statements and information 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 37

JPMorgan Chase & Co.

JPMORGAN CHASE & CO.
Line of Business Metrics

Investment Banking

IB’S REVENUE COMPRISES THE FOLLOWING:

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

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

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

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

Retail Financial Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN RETAIL 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 FEES AND RELATED INCOME COMPRISE THE FOLLOWING:

1. Production revenue includes net gains or losses on originations and sales of prime and subprime mortgage loans and other production-related fees.

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 assumptions used in the MSR valuation model.

	—		modeled servicing portfolio runoff (or time decay)

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.

Retail Financial Services (continued)

MORTGAGE ORIGINATION CHANNELS COMPRISE THE FOLLOWING:

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

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

3. Correspondent - Correspondents are banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.

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

Card Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN CARD SERVICES:

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

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

3. Merchant acquiring business - Represents an entity that processes bank card transactions for merchants. JPMorgan Chase & Co. is a partner in Chase Paymentech Solutions, LLC, a merchant acquiring business.

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

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

Page 38

JPMorgan Chase & Co.

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

Commercial Banking

COMMERCIAL BANKING REVENUE COMPRISES THE FOLLOWING:

1. Lending includes a variety of financing alternatives, which are primarily 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-based 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, foreign exchange hedges and securities sales.

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN COMMERCIAL BANKING:

1. Liability balances include deposits and deposits that are swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities sold under repurchase agreements.

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

Treasury & Securities Services

Treasury & Securities Services firmwide metrics include certain TSS product revenue 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 revenue, management reviews firmwide metrics such as liability balances, revenue 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 such as commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements.

Asset Management

Assets under management: Represent assets actively managed by Asset Management on behalf of institutional, private banking, retail, private client services and Bear Stearns brokerage clients. Excludes assets managed by American Century Companies, Inc., in which the Firm has a 43% ownership interest as of September 30, 2008.

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

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

4. Private Wealth Management 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.

5. Bear Stearns Brokerage provides investment advice and wealth management services to high-net-worth individuals, money managers, and small corporations.

Page 39


	Page

Summary of Revisions		2

Consolidated Results
Consolidated Financial Highlights		4
Statements of Income		5
Consolidated Balance Sheets		6
Condensed Average Balance Sheets and Annualized Yields		7
Reconciliation from Reported to Managed Summary		8

Business Detail
Line of Business Financial Highlights — Managed Basis		9
Investment Bank		10
Retail Financial Services		13
Card Services — Managed Basis		19
Commercial Banking		22
Treasury & Securities Services		24
Asset Management		26
Corporate/Private Equity		29

Credit-Related Information		31

Supplemental Detail
Capital, Intangible Assets and Deposits		36

Glossary of Terms		37