8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

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

Date of Report (date of earliest event reported): July 16, 2009

JPMORGAN CHASE & CO.

(Exact name of registrant as specified in its charter)

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

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

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

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

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

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

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

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition
	Item 9.01 Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EX-12.1
EX-12.2
EX-99.1
EX-99.2

Item 2.02 Results of Operations and Financial Condition

On July 16, 2009, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2009 second quarter net income of $2.7 billion, or $0.28 per share, compared with net income of $2.0 billion, or $0.53 per share, for the second quarter of 2008. A copy of the 2009 second quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

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

This current report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase’s actual results to differ materially from those described in the forward-looking statements can be found in the Firm’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 and its Annual Report on Form 10-K for the year ended December 31, 2008, each of which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase’s website (www.jpmorganchase.com) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit Number	Description of Exhibit
12.1	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges
12.2	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1	JPMorgan Chase & Co. Earnings Release — Second Quarter 2009 Results
99.2	JPMorgan Chase & Co. Earnings Release Financial Supplement — Second Quarter 2009

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SIGNATURE

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

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

Dated: July 16, 2009

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EXHIBIT INDEX

Exhibit Number	Description of Exhibit
12.1	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges
12.2	JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1	JPMorgan Chase & Co. Earnings Release — Second Quarter 2009 Results
99.2	JPMorgan Chase & Co. Earnings Release Financial Supplement — Second Quarter 2009

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EX-12.1

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges

Six months ended June 30, (in millions, except ratios)	2009
Excluding interest on deposits
Income before income tax expense	$	7,128
Fixed charges:
Interest expense		5,587
One-third of rents, net of income from subleases (a)		286
Total fixed charges		5,873
Less: Equity in undistributed income of affiliates		(2	)
Income before income tax expense and fixed charges, excluding capitalized interest	$	12,999
Fixed charges, as above	$	5,873
Ratio of earnings to fixed charges		2.21
Including interest on deposits
Fixed charges, as above	$	5,873
Add: Interest on deposits		2,851
Total fixed charges and interest on deposits	$	8,724
Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	12,999
Add: Interest on deposits		2,851
Total income before income tax expense, fixed charges and interest on deposits	$	15,850
Ratio of earnings to fixed charges		1.82

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

EX-12.2

EXHIBIT 12.2

JPMORGAN CHASE & CO.

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

Six months ended June 30, (in millions, except ratios)	2009
Excluding interest on deposits
Income before income tax expense	$	7,128
Fixed charges:
Interest expense		5,587
One-third of rents, net of income from subleases (a)		286
Total fixed charges		5,873
Less: Equity in undistributed income of affiliates		(2	)
Income before income tax expense and fixed charges, excluding capitalized interest	$	12,999
Fixed charges, as above	$	5,873
Preferred stock dividends (pre-tax) (b)		3,100
Fixed charges including preferred stock dividends	$	8,973
Ratio of earnings to fixed charges and preferred stock dividend requirements		1.45
Including interest on deposits
Fixed charges including preferred stock dividends, as above	$	8,973
Add: Interest on deposits		2,851
Total fixed charges including preferred stock dividends and interest on deposits	$	11,824
Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	12,999
Add: Interest on deposits		2,851
Total income before income tax expense, fixed charges and interest on deposits	$	15,850
Ratio of earnings to fixed charges and preferred stock dividend requirements		1.34

(a)	The proportion deemed representative of the interest factor.
(b)	Includes a one-time $1.6 billion pre-tax payment of TARP preferred dividends.

EX-99.1

Exhibit 99.1

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

News release: IMMEDIATE RELEASE

JPMORGAN CHASE REPORTS SECOND-QUARTER 2009 NET INCOME
OF $2.7 BILLION, OR $0.28 PER SHARE

RECORD REVENUE OF $27.7 BILLION

• Earnings per share reduced by TARP repayment ($0.27) and FDIC special assessment ($0.10)

• Record firmwide revenue of $27.7 billion, resulting in record revenue for the first half of 2009 (on a managed basis¹):

- Reported record Investment Banking Fees and Fixed Income Markets revenue in the Investment Bank; maintained #1 rankings for Global Debt, Equity and Equity-related, and Global Investment Banking Fees

- Continued earnings and revenue growth in Commercial Banking; solid performance in Asset Management, Treasury & Securities Services and Retail Banking

• Maintained fortress balance sheet with Tier 1 Capital of $122.2 billion, resulting in 9.7% Tier 1 Capital ratio and 7.7% Tier 1 Common¹ ratio:

- Added $2 billion to credit reserves, bringing the total to $30 billion; firmwide loan loss coverage ratio of 5%² as of June 30, 2009

- Repaid in full the $25 billion TARP preferred capital

• Continued lending and foreclosure prevention efforts:

- Extended approximately $150 billion in new credit to consumers, corporations, small businesses, municipalities, and non-profits

- Approved 138,000 trial mortgage modifications in the second quarter, bringing total foreclosures prevented since 2007 to 565,000

New York, July 16, 2009 — JPMorgan Chase & Co. (NYSE: JPM) today reported second-quarter 2009 net income of $2.7 billion, an increase of 36% compared with net income of $2.0 billion in the second quarter of 2008. Earnings per share were $0.28, compared with $0.53 in the second quarter of 2008. Current-quarter earnings per share reflected a one-time, non-cash reduction in net income applicable to common stockholders of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital.

Jamie Dimon, Chairman and Chief Executive Officer commented on the results: “We are pleased that, despite a continued difficult economic environment, we were able to report $2.7 billion in earnings and record revenue of almost $28 billion. Of particular note, the Investment Bank reported record overall revenue for the first half of the year, which included record fees and Fixed Income Markets revenue for this quarter. In addition, Commercial Banking, Asset Management,

Investor Contact: Julia Bates (212) 270-7325 Media Contact: Joe Evangelisti (212) 270-7438

1	For notes on non-GAAP measures, see page 13.
2	Excludes the impact of purchased credit-impaired loans, see page 13.

J.P. Morgan Chase & Co.
News Release

Treasury & Securities Services and Retail Banking each delivered another quarter of solid performance. These results were negatively affected by the continued high levels of credit costs in Consumer Lending and Card Services, which we expect will remain elevated for the foreseeable future.”

Regarding balance sheet strength, Dimon added: “Even after further strengthening our credit reserves by $2 billion to $30 billion and repaying the $25 billion of TARP capital, the firm ended the quarter with a very strong Tier 1 Capital ratio of 9.7% and a Tier 1 Common ratio of 7.7%. With these additions to reserves, we now have an extremely high loan loss coverage ratio of 5%”.

Dimon further remarked: “Throughout this crisis, we have remained committed to doing our part to help bring stability to the communities in which we operate and to the financial system overall. During the quarter, we maintained our efforts to support economic recovery and to help keep people in their homes. We continued to lend, extending approximately $150 billion in new credit to consumer and corporate customers. We approved 138,000 trial mortgage modifications, bringing total foreclosures prevented since 2007 to 565,000 — a number we expect to continue to grow.”

Commenting on the second half of 2009, Dimon concluded: “While we do not know if the economy will deteriorate further, we feel confident that, with our strong capital and reserve levels and significant earnings power, we can continue to reinvest in our businesses and do well for our clients, communities and shareholders over the long term.”

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

The following discussion compares the second quarter of 2009 with the second quarter of 2008 unless otherwise noted.

INVESTMENT BANK (IB)

Results for IB							1Q09						2Q08
($ millions)	2Q09		1Q09		2Q08		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	7,301	$	8,371	$	5,500		($1,070	)		(13	)%	$	1,801			33	%
Provision for Credit Losses		871		1,210		398		(339	)		(28	)		473			119
Noninterest Expense		4,067		4,774		4,734		(707	)		(15	)		(667	)		(14	)
Net Income/(Loss)	$	1,471	$	1,606	$	394		($135	)		(8	)%	$	1,077			273	%

Discussion of Results:
Net income was $1.5 billion, an increase of $1.1 billion from the prior year. The results reflected higher net revenue and lower noninterest expense, partially offset by a higher provision for credit losses.

Net revenue was $7.3 billion, an increase of $1.8 billion from the prior year. Investment banking fees were up 29% to a record $2.2 billion and comprised the following: advisory fees, up 6% to $393 million; equity underwriting fees, up by $561 million to a record $1.1 billion; and debt

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J.P. Morgan Chase & Co.
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underwriting fees, down 10% to $743 million. Fixed Income Markets revenue was a record $4.9 billion, up by $2.6 billion from the prior year, driven by strong results across all products, as well as the absence of markdowns related to leveraged lending funded and unfunded commitments and mortgage-related exposure. The current period had modest gains on those exposures, compared with losses totaling $1.1 billion in the prior year. Fixed Income Markets revenue was offset partially by losses of $773 million from the tightening of the firm’s credit spread on certain structured liabilities. Equity Markets revenue was $708 million, down by $371 million, or 34%, reflecting weak trading results and losses of $326 million from the tightening of the firm’s credit spread on certain structured liabilities, offset by strong client revenue, particularly in prime services. Credit Portfolio revenue was a loss of $575 million, down by $914 million, reflecting mark-to-market losses on hedges of retained loans, partially offset by the net impact of credit spreads on derivative assets and liabilities and net interest income on loans.

The provision for credit losses was $871 million, compared with $398 million in the prior year, due to higher charge-offs, as well as a higher allowance reflecting continued deterioration in the credit environment. Net charge-offs were $433 million, while the increase to the allowance for loan losses was $438 million. The resulting allowance for loan losses to end-of-period loans retained was 7.91%, compared with 3.44% in the prior year. Nonperforming loans were $3.5 billion, up by $3.2 billion from the prior year and $1.7 billion from the prior quarter.

Noninterest expense was $4.1 billion, compared with $4.7 billion in the prior year.

  Key Metrics and Business Updates:
  ^{(All comparisons refer to the prior-year quarter except as noted)}

§	Ranked #1 in Global Debt, Equity and Equity-related; #1 in Global Equity and Equity-related; #1 in Global Long-Term Debt; #1 in Global Syndicated Loans; and #3 in Global Announced M&A, based on volume, for the six months ended June 30, 2009, according to Thomson Reuters.
§	Ranked #1 in Global Investment Banking Fees for the six months ended June 30, 2009, according to Dealogic.
§	Return on Equity was 18% on $33.0 billion of average allocated capital.
§	End-of-period loans retained were $64.5 billion, down 9% from the prior year. End-of-period fair-value and held-for-sale loans were $6.8 billion, down by $12.9 billion, or 65%, from the prior year, driven primarily by a reduction in leveraged loan exposure.

RETAIL FINANCIAL SERVICES (RFS)

Results for RFS							1Q09						2Q08
($ millions)	2Q09		1Q09		2Q08		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	7,970	$	8,835	$	5,110		($865	)		(10	)%	$	2,860			56	%
Provision for Credit Losses		3,846		3,877		1,585		(31	)		(1	)		2,261			143
Noninterest Expense		4,079		4,171		2,680		(92	)		(2	)		1,399			52
Net Income/(Loss)	$	15	$	474	$	503		($459	)		(97	)%		($488	)		(97	)%

Discussion of Results:
Net income was $15 million, a decrease of $488 million, or 97%, from the prior year. A higher provision for credit losses and higher noninterest expense were offset partially by higher net revenue, reflecting the impact of the Washington Mutual transaction. Compared with the prior quarter, net income decreased by $459 million, or 97%, reflecting a decline in MSR risk management results, narrower loan spreads and lower loan balances; these effects were offset

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J.P. Morgan Chase & Co.
News Release

partially by higher deposit- related fees, efficiencies related to the Washington Mutual transaction and wider deposit spreads.

Net revenue was $8.0 billion, an increase of $2.9 billion, or 56%, from the prior year. Net interest income was $5.0 billion, up by $1.9 billion, or 60%, reflecting the impact of the Washington Mutual transaction, wider loan spreads, wider deposit spreads and higher deposit balances offset partially by lower loan balances in the heritage Chase portfolio. Noninterest revenue was $2.9 billion, up by $980 million, or 50%, driven by the impact of the Washington Mutual transaction and higher deposit-related fees.

The provision for credit losses was $3.8 billion, an increase of $2.3 billion from the prior year. Weak economic conditions and housing price declines continued to drive higher estimated losses for the home equity and mortgage loan portfolios. The provision included a $1.2 billion addition to the allowance for loan losses, compared with an addition of $600 million in the prior year and $1.7 billion in the prior quarter. Home equity net charge-offs were $1.3 billion (4.61% net charge-off rate²), compared with $511 million (2.16% net charge-off rate) in the prior year. Subprime mortgage net charge-offs were $410 million (11.50% net charge-off rate²), compared with $192 million (4.98% net charge-off rate) in the prior year. Prime mortgage net charge-offs were $481 million (3.07% net charge-off rate²), compared with $104 million (1.08% net charge-off rate) in the prior year.

Noninterest expense was $4.1 billion, an increase of $1.4 billion, or 52% reflecting the impact of the Washington Mutual transaction, higher servicing expense and higher FDIC insurance premiums.

Retail Banking reported net income of $970 million, up by $296 million, or 44%, from the prior year. Compared with the prior quarter, net income increased by $107 million, or 12%, due to higher deposit-related fees, wider deposit spreads, and efficiencies related to the Washington Mutual transaction.

Net revenue was $4.5 billion, up by $1.8 billion, or 65% reflecting the impact of the Washington Mutual transaction, wider deposit spreads, higher deposit balances and higher deposit-related fees.

The provision for credit losses was $361 million, compared with $62 million in the prior year, reflecting higher estimated losses and an increase in the allowance for loan losses for Business Banking loans.

Noninterest expense was $2.6 billion, up by $1.0 billion, or 64% due to the impact of the Washington Mutual transaction and higher FDIC insurance premiums.

  Key Metrics and Business Updates:
  ^{(All comparisons refer to the prior-year quarter except as noted)}

§	Checking accounts totaled 25.3 million, up from 11.3 million in the prior year (primarily due to the Washington Mutual transaction) and up 1% from the prior quarter.
§	Average total deposits grew to $348.1 billion, up 63% from the prior year (primarily due to the Washington Mutual transaction) and 1% from the prior quarter.
§	Deposit margin was 2.92%, compared with 2.88% in prior year and 2.85% in the prior quarter.

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J.P. Morgan Chase & Co.
News Release

§	Average Business Banking and other loans were $18.0 billion, and originations were $578 million.
§	Branch sales of credit cards increased 37% from the prior year and 2% from the prior quarter.
§	Branch sales of investment products increased 2% from the prior year and 20% from the prior quarter.
§	Overhead ratio (excluding amortization of core deposit intangibles) was 55%, compared with 53% in the prior year and 58% in the prior quarter.
§	Number of branches grew to 5,203, up 65% from the prior year, and substantially flat compared with the prior quarter.
§	Successfully completed the first phase of Washington Mutual deposit conversions, by migrating nearly 3 million consumer banking and small business accounts from 341 branches onto the Chase deposit platform.

Consumer Lending reported a net loss of $955 million, compared with a net loss of $171 million in the prior year and $389 million in the prior quarter. Compared with the prior quarter, results reflected a decline in MSR risk management results, narrower loan spreads, lower loan balances and an increase in reserves for the repurchase of previously-sold loans, partially offset by a lower provision for credit losses.

Net revenue was $3.4 billion, up by $1.1 billion, or 45%, from the prior year. The increase was driven by the impact of the Washington Mutual transaction and wider loan spreads, largely offset by lower loan balances in the heritage Chase portfolio. Mortgage fees and related income increased due to higher net mortgage servicing revenue, partially offset by a decline in mortgage production revenue. Mortgage production revenue was $284 million, down $110 million from the prior year, as an increase in reserves for the repurchase of previously-sold loans and markdowns on the mortgage warehouse were offset partially by wider margins on new originations. Net mortgage servicing revenue (which includes loan servicing revenue, other changes in fair value and MSR risk management results) was $523 million, an increase of $221 million from the prior year. Loan servicing revenue, net of other changes in fair value of the MSR asset, was up $191 million, reflecting a 70% growth in third-party loans serviced. MSR risk management results were $81 million, compared with $51 million in the prior year.

The provision for credit losses was $3.5 billion, compared with $1.5 billion in the prior year, reflecting weakness in the home equity, mortgage and student loan portfolios (see Retail Financial Services discussion of the provision for credit losses, above, for further detail).

Noninterest expense was $1.5 billion, up by $399 million, or 36%, from the prior year, reflecting higher servicing expense due to increased delinquencies and defaults and the impact of the Washington Mutual transaction.

  Key Metrics and Business Updates:
  ^{(All comparisons refer to the prior-year quarter except as noted)}

§	Average mortgage loans were $145.2 billion, up by $90.4 billion, due to the Washington Mutual transaction. Mortgage loan originations were $41.1 billion, down 27% from the prior year and up 9% from the prior quarter.
§	Total third-party mortgage loans serviced were $1.1 trillion, an increase of $458 billion, or 70%, predominantly due to the Washington Mutual transaction.

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J.P. Morgan Chase & Co.
News Release

§	Average home equity loans were $138.1 billion, up by $43.0 billion, due to the Washington Mutual transaction. Home equity originations were $593 million, down 89% from the prior year and 33% from the prior quarter.
§	Average auto loans were $43.1 billion, down 4%. Auto loan originations were $5.3 billion, down 5% from both the prior year and prior quarter.

CARD SERVICES (CS)^(a)

Results for CS									1Q09						2Q08
($ millions)	2Q09			1Q09			2Q08		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	4,868		$	5,129		$	3,775		($261	)		(5	)%	$	1,093			29	%
Provision for Credit Losses		4,603			4,653			2,194		(50	)		(1	)		2,409			110
Noninterest Expense		1,333			1,346			1,185		(13	)		(1	)		148			12	%
Net Income/(Loss)		($672	)		($547	)	$	250		($125	)		(23	)%		($922	)	NM

(a) Presented on a managed basis; see notes on page 13 for further explanation of managed basis.

Discussion of Results:
Net loss was $672 million, a decline of $922 million from the prior year. The decrease was driven by a higher provision for credit losses, partially offset by higher net revenue.

End-of-period managed loans were $171.5 billion, an increase of $16.1 billion, or 10%, from the prior year and a decrease of $4.6 billion, or 3%, from the prior quarter. Average managed loans were $174.1 billion, an increase of $21.3 billion, or 14%, from the prior year and a decrease of $9.3 billion, or 5%, from the prior quarter. The increases from the prior year in both end-of-period and average managed loans were predominantly due to the impact of the Washington Mutual transaction, partially offset by lower charge volume and a higher level of charge-offs. Excluding the impact of the Washington Mutual transaction, end-of-period and average managed loans were $148.4 billion and $149.7 billion, respectively.

Managed net revenue was $4.9 billion, an increase of $1.1 billion, or 29%, from the prior year. Net interest income was $4.3 billion, up by $1.3 billion, or 43%, from the prior year, driven by the impact of the Washington Mutual transaction and wider loan spreads. These benefits were offset partially by higher revenue reversals associated with higher charge-offs and a decreased level of fees. Noninterest revenue was $557 million, a decrease of $207 million, or 27%, from the prior year. The decline was driven by an increase in the credit enhancement for securitization trusts combined with lower securitization income, partially offset by higher merchant servicing revenue related to the dissolution of the Chase Paymentech Solutions joint venture.

The managed provision for credit losses was $4.6 billion, an increase of $2.4 billion from the prior year, reflecting a higher level of charge-offs due to continued deterioration in the credit environment. The managed net charge-off rate for the quarter was 10.03%, up from 4.98% in the prior year and 7.72% in the prior quarter. The 30-day managed delinquency rate was 5.86%, up from 3.46% in the prior year and down from 6.16% in the prior quarter, reflecting normal seasonal patterning. Excluding Washington Mutual, the managed net charge-off rate for the second quarter was 8.97% and the 30-day delinquency rate was 5.27%.

Noninterest expense was $1.3 billion, an increase of $148 million, or 12%, from the prior year, due to the dissolution of the Chase Paymentech Solutions joint venture and the impact of the Washington Mutual transaction.

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J.P. Morgan Chase & Co.
News Release

  Key Metrics and Business Updates:
  ^{(All comparisons refer to the prior-year quarter except as noted)}

§	Return on equity was negative 18%, down from positive 7% in the prior year.
§	Pretax income to average managed loans (ROO) was negative 2.46%, compared with positive 1.04% in the prior year and negative 1.92% in the prior quarter.
§	Net interest income as a percentage of average managed loans was 9.93%, up from 7.92% in the prior year and 9.91% in the prior quarter. Excluding Washington Mutual, the ratio was 8.63%.
§	Net accounts of 2.4 million were opened.
§	Charge volume was $82.8 billion, a decrease of $10.8 billion, or 12%, from the prior year. Excluding Washington Mutual, charge volume was $78.3 billion, a decrease of $15.3 billion, or 16%, driven by a decline in sales volume of 7%.
§	Merchant processing volume was $101.4 billion, on 4.5 billion total transactions processed.

COMMERCIAL BANKING (CB)

Results for CB							1Q09						2Q08
($ millions)	2Q09		1Q09		2Q08		$ O/(U)			O/(U) %			$ O/(U)		O/(U) %
Net Revenue	$	1,453	$	1,402	$	1,106	$	51			4	%	$	347		31	%
Provision for Credit Losses		312		293		47		19			6			265	NM
Noninterest Expense		535		553		476		(18	)		(3	)		59		12
Net Income	$	368	$	338	$	355	$	30			9	%	$	13		4	%

Discussion of Results:
Net income was $368 million, an increase of $13 million, or 4%, from the prior year. Higher net revenue, reflecting the impact of the Washington Mutual transaction, was predominantly offset by a higher provision for credit losses and higher noninterest expense.

Net revenue was $1.5 billion, an increase of $347 million, or 31%, from the prior year. Net interest income was $995 million, up by $272 million, or 38%, driven by the impact of the Washington Mutual transaction. Excluding Washington Mutual, net interest income was flat compared with the prior year, as wider loan spreads, a shift to higher-spread liability products and overall growth in liability balances were offset predominantly by spread compression on liability products and lower loan balances. Noninterest revenue was $458 million, an increase of $75 million, or 20%, reflecting the second straight quarter of record levels of lending- and deposit-related fees.

Revenue from Middle Market Banking was $772 million, an increase of $64 million, or 9%, from the prior year. Revenue from Commercial Term Lending was $224 million, a decrease of $4 million, or 2%, from the prior quarter. Record revenue from Mid-Corporate Banking was $305 million, an increase of $70 million, or 30%, from the prior year. Revenue from Real Estate Banking was $120 million, an increase of $26 million, or 28%, from the prior year, due to the impact of the Washington Mutual transaction.

The provision for credit losses was $312 million, compared with $47 million in the prior year, reflecting continued deterioration in the credit environment. The allowance for loan losses to end-of-period loans retained was 2.87%, up from 2.59% in the prior year and 2.65% in the prior quarter. Nonperforming loans were $2.1 billion, up by $1.6 billion from the prior year, reflecting the impact of the Washington Mutual transaction and higher levels of such loans in each business segment. Compared with the prior quarter, nonperforming loans were up by $580 million, driven

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J.P. Morgan Chase & Co.
News Release

by continued deterioration in the credit environment across all business segments. Net charge-offs were $181 million (0.67% net charge-off rate), compared with $49 million (0.28% net charge-off rate) in the prior year and $134 million (0.48% net charge-off rate) in the prior quarter.

Noninterest expense was $535 million, an increase of $59 million, or 12%, from the prior year, due to the impact of the Washington Mutual transaction and higher FDIC insurance premiums offset partially by lower headcount-related expense.

  Key Metrics and Business Updates:
  ^{(All comparisons refer to the prior-year quarter except as noted)}

§	Overhead ratio was 37%, an improvement from 43%.
§	Record gross investment banking revenue (which is shared with the Investment Bank) was $328 million, up by $58 million, or 21%.
§	Average loan balances were $109.0 billion, up by $38.0 billion, or 53%, from the prior year, predominantly due to the impact of the Washington Mutual transaction, and down by $4.8 billion, or 4%, from the prior quarter. End-of-period loan balances were $105.9 billion, up by $34.4 billion, or 48%, from the prior year, and down by $5.3 billion, or 5%, from the prior quarter.
§	Average liability balances were $105.8 billion, up by $6.4 billion, or 6%, from the prior year and down by $9.1 billion, or 8%, from the prior quarter.

TREASURY & SECURITIES SERVICES (TSS)

Results for TSS									1Q09						2Q08
($ millions)	2Q09			1Q09			2Q08		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	1,900		$	1,821		$	2,019	$	79			4	%		($119	)		(6	)%
Provision for Credit Losses		(5	)		(6	)		7		1			17			(12	)	NM
Noninterest Expense		1,288			1,319			1,317		(31	)		(2	)		(29	)		(2	)
Net Income/(Loss)	$	379		$	308		$	425	$	71			23	%		($46	)		(11	)%

Discussion of Results:
Net income was $379 million, a decrease of $46 million, or 11%, from the prior year, driven by lower net revenue offset partially by lower noninterest expense. Compared with the prior quarter, net income increased by $71 million, or 23%, reflecting seasonal activity in securities lending and depositary receipts as well as the effect of market appreciation on assets under custody.

Net revenue was $1.9 billion, a decrease of $119 million, or 6%, from the prior year. Worldwide Securities Services net revenue was $966 million, a decrease of $148 million, or 13%, from the prior year. The decrease was driven by the effect of market depreciation on assets under custody and lower securities lending balances, primarily as a result of declines in asset valuations and demand. Treasury Services net revenue was $934 million, an increase of $29 million, or 3%, reflecting growth across cash management products and higher trade revenue driven by wider spreads, partially offset by spread compression on deposit products. TSS firmwide net revenue, which includes net revenue recorded in other lines of business, was $2.6 billion, a decrease of $79 million, or 3%, compared with the prior year, primarily due to declines in Worldwide Securities Services. Treasury Services firmwide net revenue grew to $1.7 billion, an increase of $69 million, or 4%, from the prior year.

The provision for credit losses was a benefit of $5 million, compared with an expense of $7 million in the prior year.

8

J.P. Morgan Chase & Co.
News Release

Noninterest expense was $1.3 billion, a decrease of $29 million, reflecting lower headcount-related expense, partially offset by higher FDIC insurance premiums.

  Key Metrics and Business Updates:
  ^{(All comparisons refer to the prior-year quarter except as noted)}

§	Pretax margin1 was 31%, down from 33% in the prior year and up from 26% in the prior quarter.
§	Average liability balances were $234.2 billion, down 13% from the prior year and 15% from the prior quarter.
§	Assets under custody were $13.7 trillion, down 11% from the prior year and up 2% from the prior quarter.

ASSET MANAGEMENT (AM)

Results for AM							1Q09					2Q08
($ millions)	2Q09		1Q09		2Q08		$ O/(U)		O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	1,982	$	1,703	$	2,064	$	279		16	%		($82	)		(4	)%
Provision for Credit Losses		59		33		17		26		79			42			247
Noninterest Expense		1,354		1,298		1,400		56		4			(46	)		(3	)
Net Income/(Loss)	$	352	$	224	$	395	$	128		57	%		($43	)		(11	)%

Discussion of Results:
Net income was $352 million, a decrease of $43 million, or 11%, from the prior year, due to lower net revenue and higher provision for credit losses offset partially by lower noninterest expense. Compared with the prior quarter, net income increased by $128 million, or 57%, driven by higher valuations of seed capital investments, higher brokerage fees and the effect of improved market levels.

Net revenue was $2.0 billion, a decrease of $82 million, or 4%, from the prior year. Noninterest revenue was $1.6 billion, a decrease of $135 million, or 8%, due to the effect of lower market levels and lower placement fees; these effects were offset partially by higher valuations of seed capital investments. Net interest income was $414 million, up by $53 million, or 15%, from the prior year, predominantly due to wider loan and deposit spreads and higher deposit balances.

Private Bank revenue decreased by 10% to $640 million due to the effect of lower market levels and lower placement fees, largely offset by wider loan and deposit spreads. Institutional revenue increased by 3% to $487 million due to higher valuations of seed capital investments, largely offset by the effect of lower market levels. Retail revenue decreased by 16% to $411 million due to the effect of lower market levels and net equity outflows, partially offset by higher valuations of seed capital investments. Private Wealth Management revenue decreased by 6% to $334 million due to the effect of lower market levels and narrower deposit spreads. Bear Stearns Private Client Services contributed $110 million to revenue.

Assets under supervision were $1.5 trillion, a decrease of $68 billion, or 4%, from the prior year. Assets under management were $1.2 trillion, a decrease of $14 billion, or 1%, from the prior year. The decreases were due to the effect of lower market levels and outflows from non-liquidity products, predominantly offset by liquidity product inflows. Custody, brokerage, administration and deposit balances were $372 billion, down $54 billion, due to the effect of lower market levels on brokerage and custody balances, partially offset by brokerage inflows in the Private Bank.

9

J.P. Morgan Chase & Co.
News Release

The provision for credit losses was $59 million, an increase of $42 million from the prior year, reflecting continued deterioration in the credit environment.

Noninterest expense was $1.4 billion, a decrease of $46 million, or 3%, from the prior year due to lower performance-based compensation and lower headcount-related expense, largely offset by the impact of the Bear Stearns merger and higher FDIC insurance premiums.

  Key Metrics and Business Updates:
  ^{(All comparisons refer to the prior-year quarter except as noted)}

§	Pretax margin1 was 29%, down from 31%.
§	Assets under management net inflows were $3.0 billion for the quarter and $125.0 billion for the 12-month period ended June 30, 2009.
§	Assets under management ranked in the top two quartiles for investment performance were 80% over five years, 69% over three years and 62% over one year.
§	Customer assets in 4 and 5 Star—rated funds were 45%.
§	Average loans were $34.3 billion, down by $5.0 billion, or 13%, mainly driven by paydowns in the Private Bank. End-of-period loan balances were $35.5 billion, down by $6.1 billion, or 15%, from the prior year, and up by $1.5 billion, or 5% from the prior quarter.
§	Average deposits were $75.4 billion, up by $5.4 billion or 8%.

CORPORATE/PRIVATE EQUITY^(a)

Results for Corporate/Private									1Q09			2Q08
Equity ($ millions)	2Q09		1Q09			2Q08			$ O/(U)		O/(U) %	$ O/(U)			O/(U) %
Net Revenue	$	2,265		($309	)	$	134		$	2,574	NM	$	2,131		NM
Provision for Credit Losses		9		—			37			9	NM		(28	)		(76	)
Noninterest Expense		864		(88	)		385			952	NM		479			124	%
Net Income/(Loss)	$	808		($262	)		($319	)	$	1,070	NM	$	1,127		NM

(a) This segment includes the results of the Private Equity and Corporate business segments, as well as merger-related items.

Discussion of Results:
Net income was $808 million, compared with a net loss of $319 million in the prior year.

Private Equity reported a net loss of $27 million, compared with net income of $99 million in the prior year. Net revenue was negative $1 million, a decrease of $198 million, reflecting Private Equity losses of $20 million, compared with gains of $220 million in the prior year. Noninterest expense was $42 million, a decrease of $2 million.

Net income for Corporate was $993 million, compared with net income of $122 million in the prior year. These results reflect higher levels of trading and investment income in the investment securities portfolio and a gain of $150 million (after tax) from the sale of MasterCard shares, partially offset by a $419 million (after tax) FDIC special assessment.

10

J.P. Morgan Chase & Co.
News Release

  Key Metrics and Business Updates:
  ^{(All comparisons refer to the prior-year quarter except as noted)}

§ The Private Equity portfolio totaled $6.6 billion, down from $7.7 billion in the prior year and unchanged from the prior quarter. The portfolio represented 6.2% of total stockholders’ equity less goodwill, down from 8.9% in the prior year and up from 5.4% in the prior quarter.

JPMORGAN CHASE (JPM)^(a)

Results for JPM(a)							1Q09						2Q08
($ millions)	2Q09		1Q09		2Q08		$ O/(U)			O/(U) %			$ O/(U)		O/(U) %
Net Revenue	$	27,709	$	26,922	$	19,678	$	787			3	%	$	8,031		41	%
Provision for Credit Losses		9,695		10,060		4,285		(365	)		(4	)		5,410		126
Noninterest Expense		13,520		13,373		12,177		147			1			1,343		11
Net Income/(Loss)	$	2,721	$	2,141	$	2,003	$	580			27	%	$	718		36	%

(a) Presented on a managed basis; see notes on page 13 for further explanation of managed basis. Net revenue on a U.S. GAAP basis was $25,623 million, $25,025 million, and $18,399 million for the second quarter of 2009, first quarter of 2009 and second quarter of 2008, respectively.

Discussion of Results:
Net income was $2.7 billion, an increase of $718 million, or 36%, from the prior year. The increase in earnings was driven by higher net revenue, predominantly offset by a higher provision for credit losses and higher noninterest expense.

Managed net revenue was $27.7 billion, an increase of $8.0 billion, or 41%, from the prior year. Noninterest revenue was $13.0 billion, up by $3.5 billion, or 37%. The increase was driven by higher principal transactions, higher lending- and deposit-related fees, and record Investment Banking fees; these were offset partially by the effect of lower market levels on fees and commission revenue. Net interest income was $14.7 billion, up by $4.5 billion, or 45%, due to the impact of the Washington Mutual transaction, wider loan spreads and higher investment- and trading-related net interest income.

The managed provision for credit losses was $9.7 billion, up by $5.4 billion, from the prior year. The total consumer-managed provision for credit losses was $8.5 billion, compared with $3.8 billion in the prior year, reflecting higher net charge-offs and an increase in the allowance for credit losses, largely related to home lending. Consumer-managed net charge-offs were $7.0 billion, compared with $2.9 billion in the prior year, resulting in managed net charge-off rates of 6.18%² and 3.08%, respectively. The wholesale provision for credit losses was $1.2 billion, compared with $505 million in the prior year, reflecting an increase in the allowance for credit losses, largely in the Investment Bank. Wholesale net charge-offs were $679 million, compared with net charge-offs of $41 million in the prior year, resulting in net charge-off rates of 1.19% and 0.08%, respectively. The firm’s nonperforming assets totaled $17.5 billion at June 30, 2009, up from the prior-year level of $6.2 billion.

Noninterest expense was $13.5 billion, up by $1.3 billion, or 11%, from the prior year. The increase was driven by the impact of the Washington Mutual transaction, a $675 million (pretax) FDIC special assessment and higher FDIC insurance premiums.

11

J.P. Morgan Chase & Co.
News Release

  Key Metrics and Business Updates:
  ^{(All comparisons refer to the prior-year quarter except as noted)}

§	Tier 1 Capital ratio was 9.7% at June 30, 2009 (estimated), 9.3% at March 31, 2009 (excluding $25 billion TARP preferred capital), and 9.2% at June 30, 2008.
§	Tier 1 Common ratio was 7.7% at June 30, 2009 (estimated), 7.3% at March 31, 2009, and 7.1% at June 30, 2008.
§	Headcount was 220,255, and increase of 24,661, reflecting the Washington Mutual transaction.

12

J.P. Morgan Chase & Co.
News Release

1. Notes on non-GAAP financial measures:

a. In addition to analyzing the firm’s results on a reported basis, management analyzes the firm’s results and the results of the lines of business on a managed basis, which is a non-GAAP financial measure. The firm’s definition of managed basis starts with the reported U.S. GAAP results and includes the following adjustments.

First, for Card Services and the firm, managed basis excludes the impact of credit card securitizations on total net revenue, the provision for credit losses, net charge-offs and loan receivables. The presentation of Card Services results on a managed basis assumes that credit card loans that have been securitized and sold in accordance with SFAS 140 still remain on the balance sheet and that the earnings on the securitized loans are classified in the same manner as the earnings on retained loans recorded on the balance sheet. JPMorgan Chase uses the concept of managed basis to evaluate the credit performance and overall financial performance of the entire managed credit card portfolio. Operations are funded and decisions are made about allocating resources, such as employees and capital, based on managed financial information. In addition, the same underwriting standards and ongoing risk monitoring are used for both loans on the balance sheet and securitized loans. Although securitizations result in the sale of credit card receivables to a trust, JPMorgan Chase retains the ongoing customer relationships, as the customers may continue to use their credit cards; accordingly, the customer’s credit performance will affect both the securitized loans and the loans retained on the balance sheet. JPMorgan Chase believes managed-basis information is useful to investors, enabling them to understand both the credit risks associated with the loans reported on the balance sheet and the firm’s retained interests in securitized loans.

Second, managed revenue (noninterest revenue and net interest income) for each of the segments and the firm is presented on a tax-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to taxable securities and investments. This methodology allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense.

See page 6 of JPMorgan Chase’s Earnings Release Financial Supplement (second quarter 2009) for a reconciliation of JPMorgan Chase’s income statement from a reported basis to a managed basis.

b. Tier 1 Common Capital (“Tier 1 Common”) is calculated, for all purposes, as Tier 1 Capital less qualifying perpetual preferred stock, qualifying trust preferred securities, and qualifying minority interest in subsidiaries.

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

2. Coverage Ratio: Allowance for loan losses to end-of-period loans excludes purchased credit-impaired loans and loans from the Washington Mutual Master Trust, which were consolidated on the Firm’s balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of June 30, 2009.

13

J.P. Morgan Chase & Co.
News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.0 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan, Chase, and WaMu brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

JPMorgan Chase will host a conference call today at 8:00 a.m. (Eastern Time) to review second-quarter financial results. The general public can access the call by dialing (866) 541-2724, or (877) 368-8360 in the U.S. and Canada and (706) 634-7246 for International participants. The live audio webcast and presentation slides will be available at the firm’s website, www.jpmorganchase.com, under Investor Relations, Investor Presentations.

A replay of the conference call will be available beginning at approximately 11:00 a.m. on Thursday, July 16, through midnight, Friday, July 31, by telephone at (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International); use Conference ID 13446051. The replay will also be available via webcast on www.jpmorganchase.com under Investor Relations, Investor Presentations. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available at www.jpmorganchase.com.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009, and Annual Report on Form 10-K for the year ended December 31, 2008, each of which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase’s website (www.jpmorganchase.com) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

14

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

	QUARTERLY TRENDS															YEAR-TO-DATE
										2Q09 Change												2009 Change
	2Q09			1Q09			2Q08			1Q09			2Q08			2009			2008			2008
SELECTED INCOME STATEMENT DATA:
Reported Basis
Total net revenue	$	25,623		$	25,025		$	18,399			2	%		39	%	$	50,648		$	35,289			44	%
Total noninterest expense		13,520			13,373			12,177			1			11			26,893			21,108			27
Pre-provision profit		12,103			11,652			6,222			4			95			23,755			14,181			68
Provision for credit losses		8,031			8,596			3,455			(7	)		132			16,627			7,879			111
NET INCOME		2,721			2,141			2,003			27			36			4,862			4,376			11
Managed Basis (a)
Total net revenue	$	27,709		$	26,922		$	19,678			3			41		$	54,631		$	37,576			45
Total noninterest expense		13,520			13,373			12,177			1			11			26,893			21,108			27
Pre-provision profit		14,189			13,549			7,501			5			89			27,738			16,468			68
Provision for credit losses		9,695			10,060			4,285			(4	)		126			19,755			9,390			110
NET INCOME		2,721			2,141			2,003			27			36			4,862			4,376			11
PER COMMON SHARE:
Net income per share — basic (b)		0.28			0.40			0.54			(30	)		(48	)		0.68			1.21			(44	)
Net income per share — diluted (b) (c)		0.28			0.40			0.53			(30	)		(47	)		0.68			1.20			(43	)
Cash dividends declared		0.05			0.05			0.38			—			(87	)		0.10			0.76			(87	)
Book value		37.36			36.78			37.02			2			1			37.36			37.02			1
Closing share price		34.11			26.58			34.31			28			(1	)		34.11			34.31			(1	)
Market capitalization		133,852			99,881			117,881			34			14			133,852			117,881			14
COMMON SHARES OUTSTANDING:
Weighted-average diluted shares outstanding (b)		3,824.1			3,758.7			3,453.1			2			11			3,791.4			3,438.2			10
Common shares outstanding at period-end		3,924.1			3,757.7			3,435.7			4			14			3,924.1			3,435.7			14
FINANCIAL RATIOS: (d)
Net income:
Return on common equity (“ROE”) (e)		3	%		5	%		6	%								4	%		7	%
Return on equity-goodwill (“ROE-GW”) (e) (f)		5			7			10									6			11
Return on assets (“ROA”)		0.54			0.42			0.48									0.48			0.54
CAPITAL RATIOS:
Tier 1 capital ratio		9.7	(g)		11.4			9.2
Total capital ratio		13.3	(g)		15.2			13.4
SELECTED BALANCE SHEET DATA (Period-end)
Total assets	$	2,026,642		$	2,079,188		$	1,775,670			(3	)		14		$	2,026,642		$	1,775,670			14
Wholesale loans		231,625			242,284			229,359			(4	)		1			231,625			229,359			1
Consumer loans		448,976			465,959			308,670			(4	)		45			448,976			308,670			45
Deposits		866,477			906,969			722,905			(4	)		20			866,477			722,905			20
Common stockholders’ equity		146,614			138,201			127,176			6			15			146,614			127,176			15
Total stockholders’ equity		154,766			170,194			133,176			(9	)		16			154,766			133,176			16
Headcount		220,255			219,569			195,594			—			13			220,255			195,594			13
LINE OF BUSINESS NET INCOME (LOSS)
Investment Bank	$	1,471		$	1,606		$	394			(8	)		273		$	3,077		$	307		NM
Retail Financial Services		15			474			503			(97	)		(97	)		489			192			155
Card Services		(672	)		(547	)		250			(23	)	NM				(1,219	)		859		NM
Commercial Banking		368			338			355			9			4			706			647			9
Treasury & Securities Services		379			308			425			23			(11	)		687			828			(17	)
Asset Management		352			224			395			57			(11	)		576			751			(23	)
Corporate/Private Equity		808			(262	)		(319	)	NM			NM				546			792			(31	)
Net income	$	2,721		$	2,141		$	2,003			27			36		$	4,862		$	4,376			11

(a)	For further discussion of managed basis, see Note a on page 13.
(b)	Effective January 1, 2009, the Firm adopted FSP EITF 03-6-1. Accordingly, prior period numbers have been revised as required. For further discussion of this FSP, see page 36 of JPMorgan Chase’s Earnings Release Financial Supplement.
(c)	The calculation of second quarter 2009 earnings per share includes a one-time, non-cash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital.
(d)	Ratios are based upon annualized amounts.
(e)	The calculation of second quarter and year-to-date 2009 net income applicable to common equity includes a one-time, non-cash reduction of $1.1 billion resulting from repayment of TARP preferred capital. Excluding this reduction the adjusted ROE and ROE-GW were 6% and 10% for the second quarter 2009, respectively, and 6% and 9% for the year-to-date, respectively. The Firm views the adjusted ROE and ROE-GW, non-GAAP financial measures, as meaningful because it increases the comparability to prior periods.
(f)	Net income applicable to common equity divided by total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating performance of the Firm. The Firm utilizes this measure to facilitate comparisons to competitors.
(g)	Estimated.

15

EX-99.2

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2009

JPMORGAN CHASE & CO.
TABLE OF CONTENTS

	Page
Consolidated Results
Consolidated Financial Highlights		2
Statements of Income		3
Consolidated Balance Sheets		4
Condensed Average Balance Sheets and Annualized Yields		5
Reconciliation from Reported to Managed Summary		6
Business Detail
Line of Business Financial Highlights — Managed Basis		7
Investment Bank		8
Retail Financial Services		11
Card Services — Managed Basis		17
Commercial Banking		20
Treasury & Securities Services		22
Asset Management		24
Corporate/Private Equity		27
Credit-Related Information		29
Market Risk-Related Information		34
Supplemental Detail
Capital, Intangible Assets and Deposits		35
Per Share-Related Information		36
Glossary of Terms		37

Page 1

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
SELECTED INCOME STATEMENT DATA:
Reported Basis
Total net revenue	$	25,623		$	25,025		$	17,226		$	14,737		$	18,399			2	%		39	%	$	50,648		$	35,289			44	%
Total noninterest expense		13,520			13,373			11,255			11,137			12,177			1			11			26,893			21,108			27
Pre-provision profit		12,103			11,652			5,971			3,600			6,222			4			95			23,755			14,181			68
Provision for credit losses		8,031			8,596			7,313			5,787			3,455			(7	)		132			16,627			7,879			111
Income (loss) before extraordinary gain		2,721			2,141			(623	)		(54	)		2,003			27			36			4,862			4,376			11
Extraordinary gain		—			—			1,325			581			—			—			—			—			—			—
NET INCOME		2,721			2,141			702			527			2,003			27			36			4,862			4,376			11
Managed Basis (a)
Total net revenue	$	27,709		$	26,922		$	19,108		$	16,088		$	19,678			3			41		$	54,631		$	37,576			45
Total noninterest expense		13,520			13,373			11,255			11,137			12,177			1			11			26,893			21,108			27
Pre-provision profit		14,189			13,549			7,853			4,951			7,501			5			89			27,738			16,468			68
Provision for credit losses		9,695			10,060			8,541			6,660			4,285			(4	)		126			19,755			9,390			110
Income (loss) before extraordinary gain		2,721			2,141			(623	)		(54	)		2,003			27			36			4,862			4,376			11
Extraordinary gain		—			—			1,325			581			—			—			—			—			—			—
NET INCOME		2,721			2,141			702			527			2,003			27			36			4,862			4,376			11
PER COMMON SHARE:
Basic Earnings (b)
Income (loss) before extraordinary gain		0.28			0.40			(0.29	)		(0.08	)		0.54			(30	)		(48	)		0.68			1.21			(44	)
Net income		0.28			0.40			0.06			0.09			0.54			(30	)		(48	)		0.68			1.21			(44	)
Diluted Earnings (b) (c)
Income (loss) before extraordinary gain		0.28			0.40			(0.29	)		(0.08	)		0.53			(30	)		(47	)		0.68			1.20			(43	)
Net income		0.28			0.40			0.06			0.09			0.53			(30	)		(47	)		0.68			1.20			(43	)
Cash dividends declared		0.05			0.05			0.38			0.38			0.38			—			(87	)		0.10			0.76			(87	)
Book value		37.36			36.78			36.15			36.95			37.02			2			1			37.36			37.02			1
Closing share price		34.11			26.58			31.53			46.70			34.31			28			(1	)		34.11			34.31			(1	)
Market capitalization		133,852			99,881			117,695			174,048			117,881			34			14			133,852			117,881			14
COMMON SHARES OUTSTANDING:
Weighted-average diluted shares outstanding (b)		3,824.1			3,758.7			3,737.5			3,444.6			3,453.1			2			11			3,791.4			3,438.2			10
Common shares outstanding at period-end		3,924.1			3,757.7			3,732.8			3,726.9			3,435.7			4			14			3,924.1			3,435.7			14
FINANCIAL RATIOS: (d)
Income (loss) before extraordinary gain:
Return on common equity (“ROE”) (e)		3	%		5	%		(3)	%		(1)	%		6	%								4	%		7	%
Return on equity-goodwill (“ROE-GW”) (e) (f)		5			7			(5	)		(1	)		10									6			11
Return on assets (“ROA”)		0.54			0.42			(0.11	)		(0.01	)		0.48									0.48			0.54
Net income:
ROE (e)		3			5			1			1			6									4			7
ROE-GW (e) (f)		5			7			1			2			10									6			11
ROA		0.54			0.42			0.13			0.12			0.48									0.48			0.54
CAPITAL RATIOS:
Tier 1 capital ratio		9.7	(g)		11.4			10.9			8.9			9.2
Total capital ratio		13.3	(g)		15.2			14.8			12.6			13.4
SELECTED BALANCE SHEET DATA (Period-end)
Total assets	$	2,026,642		$	2,079,188		$	2,175,052		$	2,251,469		$	1,775,670			(3	)		14		$	2,026,642		$	1,775,670			14
Wholesale loans		231,625			242,284			262,044			288,445			229,359			(4	)		1			231,625			229,359			1
Consumer loans		448,976			465,959			482,854			472,936			308,670			(4	)		45			448,976			308,670			45
Deposits		866,477			906,969			1,009,277			969,783			722,905			(4	)		20			866,477			722,905			20
Common stockholders’ equity		146,614			138,201			134,945			137,691			127,176			6			15			146,614			127,176			15
Total stockholders’ equity		154,766			170,194			166,884			145,843			133,176			(9	)		16			154,766			133,176			16
Headcount		220,255			219,569			224,961			228,452			195,594			—			13			220,255			195,594			13
LINE OF BUSINESS NET INCOME (LOSS)
Investment Bank	$	1,471		$	1,606		$	(2,364	)	$	882		$	394			(8	)		273		$	3,077		$	307		NM
Retail Financial Services		15			474			624			64			503			(97	)		(97	)		489			192			155
Card Services		(672	)		(547	)		(371	)		292			250			(23	)	NM				(1,219	)		859		NM
Commercial Banking		368			338			480			312			355			9			4			706			647			9
Treasury & Securities Services		379			308			533			406			425			23			(11	)		687			828			(17	)
Asset Management		352			224			255			351			395			57			(11	)		576			751			(23	)
Corporate/Private Equity		808			(262	)		1,545			(1,780	)		(319	)	NM			NM				546			792			(31	)
Net income	$	2,721		$	2,141		$	702		$	527		$	2,003			27			36		$	4,862		$	4,376			11

(a)	For further discussion of managed basis, see Reconciliation from reported to managed summary on page 6.
(b)	Effective January 1, 2009, the Firm adopted FSP EITF 03-6-1. Accordingly, prior period numbers have been revised as required. For further discussion of this FSP, see Per share-related information on page 36.
(c)	The calculation of second quarter 2009 earnings per share includes a one-time, non-cash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital.
(d)	Ratios are based upon annualized amounts.
(e)	The calculation of second quarter and year-to-date 2009 net income applicable to common equity includes a one-time, non-cash reduction of $1.1 billion resulting from repayment of TARP preferred capital. Excluding this reduction the adjusted ROE and ROE-GW were 6% and 10% for the second quarter 2009 , respectively, and 6% and 9% for the year-to-date, respectively. The Firm views the adjusted ROE and ROE-GW, non-GAAP financial measures, as meaningful because it increases the comparability to prior periods.
(f)	Net income applicable to common equity divided by total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating performance of the Firm. The Firm utilizes this measure to facilitate comparisons to competitors.
(g)	Estimated.

Page 2

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
REVENUE
Investment banking fees	$	2,106		$	1,386		$	1,382		$	1,316		$	1,612			52	%		31	%	$	3,492		$	2,828			23	%
Principal transactions		3,097			2,001			(7,885	)		(2,763	)		752			55			312			5,098			(51	)	NM
Lending & deposit-related fees		1,766			1,688			1,776			1,168			1,105			5			60			3,454			2,144			61
Asset management, administration and commissions		3,124			2,897			3,234			3,485			3,628			8			(14	)		6,021			7,224			(17	)
Securities gains		347			198			456			424			647			75			(46	)		545			680			(20	)
Mortgage fees and related income		784			1,601			1,789			457			696			(51	)		13			2,385			1,221			95
Credit card income		1,719			1,837			2,049			1,771			1,803			(6	)		(5	)		3,556			3,599			(1	)
Other income		10			50			593			(115	)		(138	)		(80	)	NM				60			1,691			(96	)
Noninterest revenue		12,953			11,658			3,394			5,743			10,105			11			28			24,611			19,336			27
Interest income		16,549			17,926			21,631			17,326			16,529			(8	)		—			34,475			34,061			1
Interest expense		3,879			4,559			7,799			8,332			8,235			(15	)		(53	)		8,438			18,108			(53	)
Net interest income		12,670			13,367			13,832			8,994			8,294			(5	)		53			26,037			15,953			63
TOTAL NET REVENUE		25,623			25,025			17,226			14,737			18,399			2			39			50,648			35,289			44
Provision for credit losses		8,031			8,596			7,313			5,787			3,455			(7	)		132			16,627			7,879			111
NONINTEREST EXPENSE
Compensation expense		6,917			7,588			5,024			5,858			6,913			(9	)		—			14,505			11,864			22
Occupancy expense		914			885			955			766			669			3			37			1,799			1,317			37
Technology, communications and equipment expense		1,156			1,146			1,207			1,112			1,028			1			12			2,302			1,996			15
Professional & outside services		1,518			1,515			1,819			1,451			1,450			—			5			3,033			2,783			9
Marketing		417			384			501			453			413			9			1			801			959			(16	)
Other expense (a)		2,190			1,375			1,242			1,096			1,233			59			78			3,565			1,402			154
Amortization of intangibles		265			275			326			305			316			(4	)		(16	)		540			632			(15	)
Merger costs		143			205			181			96			155			(30	)		(8	)		348			155			125
TOTAL NONINTEREST EXPENSE		13,520			13,373			11,255			11,137			12,177			1			11			26,893			21,108			27
Income (loss) before income tax expense and extraordinary gain		4,072			3,056			(1,342	)		(2,187	)		2,767			33			47			7,128			6,302			13
Income tax expense (benefit) (b)		1,351			915			(719	)		(2,133	)		764			48			77			2,266			1,926			18
Income (loss) before extraordinary gain		2,721			2,141			(623	)		(54	)		2,003			27			36			4,862			4,376			11
Extraordinary gain (c)		—			—			1,325			581			—			—			—			—			—			—
NET INCOME	$	2,721		$	2,141		$	702		$	527		$	2,003			27			36		$	4,862		$	4,376			11
DILUTED EARNINGS PER SHARE
Income (loss) before extraordinary gain (d)(e)	$	0.28		$	0.40		$	(0.29	)	$	(0.08	)	$	0.53			(30	)		(47	)	$	0.68		$	1.20			(43	)
Extraordinary gain		—			—			0.35			0.17			—			—			—			—			—			—
NET INCOME (d)(e)	$	0.28		$	0.40		$	0.06		$	0.09		$	0.53			(30	)		(47	)	$	0.68		$	1.20			(43	)
FINANCIAL RATIOS
Income (loss) before extraordinary gain:
ROE (f)		3	%		5	%		(3	)%		(1	)%		6	%								4	%		7	%
ROE-GW (f)		5			7			(5	)		(1	)		10									6			11
ROA		0.54			0.42			(0.11	)		(0.01	)		0.48									0.48			0.54
Net income:
ROE (f)		3			5			1			1			6									4			7
ROE-GW (f)		5			7			1			2			10									6			11
ROA		0.54			0.42			0.13			0.12			0.48									0.48			0.54
Effective income tax rate (b)		33			30			54			98			28									32			31
Overhead ratio		53			53			65			76			66									53			60
EXCLUDING IMPACT OF MERGER COSTS (g)
Income (loss) before extraordinary gain	$	2,721		$	2,141		$	(623	)	$	(54	)	$	2,003			27			36		$	4,862		$	4,376			11
Merger costs (after-tax)		89			127			112			60			96			(30	)		(7	)		216			96			125
Income (loss) before extraordinary gain excluding merger costs	$	2,810		$	2,268		$	(511	)	$	6		$	2,099			24			34		$	5,078		$	4,472			14
Diluted Per Share:
Income (loss) before extraordinary gain (d)(e)	$	0.28		$	0.40		$	(0.29	)	$	(0.08	)	$	0.53			(30	)		(47	)	$	0.68		$	1.20			(43	)
Merger costs (after-tax)		0.02			0.03			0.03			0.02			0.03			(33	)		(33	)		0.05			0.03			67
Income (loss) before extraordinary gain excluding merger costs (d)(e)	$	0.30		$	0.43		$	(0.26	)	$	(0.06	)	$	0.56			(30	)		(46	)	$	0.73		$	1.23			(41	)

(a)	Second quarter 2009 includes a $675 million FDIC special assessment.
(b)	The income tax benefit in the third quarter of 2008 includes 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.
(c)	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.
(d)	Effective January 1, 2009, the Firm adopted FSP EITF 03-6-1. Accordingly, prior period numbers have been revised as required. For further discussion of this FSP, see Per share-related information on page 36.
(e)	The calculation of second quarter 2009 earnings per share includes a one-time, non-cash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital.
(f)	The calculation of second quarter and year-to-date 2009 net income applicable to common equity includes a one-time, non-cash reduction of $1.1 billion resulting from repayment of TARP preferred capital. Excluding this reduction the adjusted ROE and ROE-GW were 6% and 10% for the second quarter 2009, respectively, and 6% and 9% for the year-to-date, respectively. The Firm views the adjusted ROE and ROE-GW, non-GAAP financial measures, as meaningful because it increases the comparability to prior periods.
(g)	Net income excluding merger costs, a non-GAAP financial measure, is used by the Firm to facilitate comparison of results against the Firm’s ongoing operations and with other companies’ U.S. GAAP financial statements.

Page 3

JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)

																Jun 30, 2009
																Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2009			2009			2008			2008			2008			2009			2008
ASSETS
Cash and due from banks	$	25,133		$	26,681		$	26,895		$	54,350		$	32,255			(6)	%		(22	)%
Deposits with banks		61,882			89,865			138,139			34,372			17,150			(31	)		261
Federal funds sold and securities purchased under resale agreements		159,170			157,237			203,115			233,668			176,287			1			(10	)
Securities borrowed		129,263			127,928			124,000			152,050			142,854			1			(10	)
Trading assets:
Debt and equity instruments		298,135			298,453			347,357			401,609			409,608			—			(27	)
Derivative receivables		97,491			131,247			162,626			118,648			122,389			(26	)		(20	)
Securities		345,563			333,861			205,943			150,779			119,173			4			190
Loans		680,601			708,243			744,898			761,381			538,029			(4	)		26
Less: allowance for loan losses		29,072			27,381			23,164			19,052			13,246			6			119
Loans, net of allowance for loan losses		651,529			680,862			721,734			742,329			524,783			(4	)		24
Accrued interest and accounts receivable		61,302			52,168			60,987			104,232			64,294			18			(5	)
Premises and equipment		10,668			10,336			10,045			9,962			10,333			3			3
Goodwill		48,288			48,201			48,027			46,121			45,993			—			5
Other intangible assets:
Mortgage servicing rights		14,600			10,634			9,403			17,048			11,617			37			26
Purchased credit card relationships		1,431			1,528			1,649			1,827			1,984			(6	)		(28	)
All other intangibles		3,651			3,821			3,932			3,653			3,675			(4	)		(1	)
Other assets (a)		118,536			106,366			111,200			180,821			93,275			11			27
TOTAL ASSETS	$	2,026,642		$	2,079,188		$	2,175,052		$	2,251,469		$	1,775,670			(3	)		14
LIABILITIES
Deposits	$	866,477		$	906,969		$	1,009,277		$	969,783		$	722,905			(4	)		20
Federal funds purchased and securities loaned or sold under repurchase agreements		300,931			279,837			192,546			224,075			194,724			8			55
Commercial paper		42,713			33,085			37,845			54,480			50,151			29			(15	)
Other borrowed funds (a)		73,968			112,257			132,400			167,827			22,594			(34	)		227
Trading liabilities:
Debt and equity instruments		56,021			53,786			45,274			76,213			87,841			4			(36	)
Derivative payables		67,197			86,020			121,604			85,816			95,749			(22	)		(30	)
Accounts payable and other liabilities (including the allowance for lending-related commitments)		171,685			165,521			187,978			260,563			171,004			4			—
Beneficial interests issued by consolidated VIEs		20,945			9,674			10,561			11,437			20,071			117			4
Long-term debt		254,226			243,569			252,094			238,034			260,192			4			(2	)
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		17,713			18,276			18,589			17,398			17,263			(3	)		3
TOTAL LIABILITIES		1,871,876			1,908,994			2,008,168			2,105,626			1,642,494			(2	)		14
STOCKHOLDERS’ EQUITY
Preferred stock		8,152			31,993			31,939			8,152			6,000			(75	)		36
Common stock		4,105			3,942			3,942			3,942			3,658			4			12
Capital surplus		97,662			91,469			92,143			90,535			78,870			7			24
Retained earnings		56,355			55,487			54,013			55,217			56,313			2			—
Accumulated other comprehensive income (loss)		(3,438	)		(4,490	)		(5,687	)		(2,227	)		(1,566	)		23			(120	)
Shares held in RSU trust		(86	)		(86	)		(217	)		(267	)		(269	)		—			68
Treasury stock, at cost		(7,984	)		(8,121	)		(9,249	)		(9,509	)		(9,830	)		2			19
TOTAL STOCKHOLDERS’ EQUITY		154,766			170,194			166,884			145,843			133,176			(9	)		16
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,026,642		$	2,079,188		$	2,175,052		$	2,251,469		$	1,775,670			(3	)		14

(a) On September 19, 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 $14.5 billion, $6.0 billion, $11.2 billion, and $61.3 billion at June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. 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.

Page 4

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
AVERAGE BALANCES
ASSETS
Deposits with banks	$	68,001		$	88,587		$	106,156		$	41,303		$	38,813			(23)	%		75	%	$	78,237		$	35,394			121	%
Federal funds sold and securities purchased under resale agreements		142,226			160,986			205,182			164,980			155,664			(12	)		(9	)		151,554			154,764			(2	)
Securities borrowed		122,235			120,752			123,523			134,651			100,322			1			22			121,498			91,906			32
Trading assets — debt instruments		245,444			252,098			269,576			298,760			302,053			(3	)		(19	)		248,753			312,519			(20	)
Securities		354,216			281,420			174,652			119,443			109,834			26			223			318,019			99,796			219
Loans		697,908			726,959			752,524			536,890			537,964			(4	)		30			712,353			532,281			34
Other assets (a)		36,638			27,411			56,322			37,237			15,629			34			134			32,050			7,815			310
Total interest-earning assets		1,666,668			1,658,213			1,687,935			1,333,264			1,260,279			1			32			1,662,464			1,234,475			35
Trading assets — equity instruments		63,507			62,748			72,782			92,300			99,525			1			(36	)		63,130			89,168			(29	)
Goodwill		48,273			48,071			46,838			45,947			45,781			—			5			48,173			45,740			5
Other intangible assets:
Mortgage servicing rights		12,256			11,141			14,837			11,811			9,947			10			23			11,702			9,110			28
All other intangible assets		5,218			5,443			5,586			5,512			5,823			(4	)		(10	)		5,329			6,012			(11	)
All other noninterest-earning assets		242,450			281,503			339,887			267,525			247,344			(14	)		(2	)		261,868			234,743			12
TOTAL ASSETS	$	2,038,372		$	2,067,119		$	2,167,865		$	1,756,359		$	1,668,699			(1	)		22		$	2,052,666		$	1,619,248			27
LIABILITIES
Interest-bearing deposits	$	672,350		$	736,460		$	777,604		$	589,348		$	612,305			(9	)		10		$	704,228		$	606,218			16
Federal funds purchased and securities loaned or sold under repurchase agreements		289,971			226,110			203,568			200,032			203,348			28			43			258,217			191,622			35
Commercial paper		37,371			33,694			40,486			47,579			47,323			11			(21	)		35,543			47,453			(25	)
Other borrowings and liabilities (b)		207,489			236,673			264,236			161,821			111,477			(12	)		86			221,999			109,515			103
Beneficial interests issued by consolidated VIEs		14,493			9,757			9,440			11,431			17,990			49			(19	)		12,138			16,036			(24	)
Long-term debt		274,323			258,732			248,125			261,385			229,336			6			20			266,571			214,846			24
Total interest-bearing liabilities		1,495,997			1,501,426			1,543,459			1,271,596			1,221,779			—			22			1,498,696			1,185,690			26
Noninterest-bearing liabilities		373,172			397,243			460,894			351,023			315,965			(6	)		18			385,141			305,790			26
TOTAL LIABILITIES		1,869,169			1,898,669			2,004,353			1,622,619			1,537,744			(2	)		22			1,883,837			1,491,480			26
Preferred stock		28,338			31,957			24,755			7,100			4,549			(11	)	NM				30,138			2,275		NM
Common stockholders’ equity		140,865			136,493			138,757			126,640			126,406			3			11			138,691			125,493			11
TOTAL STOCKHOLDERS’ EQUITY		169,203			168,450			163,512			133,740			130,955			—			29			168,829			127,768			32
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,038,372		$	2,067,119		$	2,167,865		$	1,756,359		$	1,668,699			(1	)		22		$	2,052,666		$	1,619,248			27
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks		1.45	%		2.03	%		3.34	%		3.04	%		3.87	%								1.78	%		4.03	%
Federal funds sold and securities purchased under resale agreements (c)		0.41			1.06			2.14			3.00			3.23									0.74			3.46
Trading assets — debt instruments		4.91			5.27			6.18			6.06			5.59									5.09			5.67
Securities		3.64			4.16			5.14			5.09			5.27									3.87			5.36
Loans		5.65			5.87			6.44			6.31			6.36									5.76			6.72
Other assets (a)		0.80			2.44			3.06			3.29			3.97									1.50			3.97
Total interest-earning assets		4.00			4.41			5.12			5.22			5.34									4.20			5.60
INTEREST-BEARING LIABILITIES
Interest-bearing deposits		0.70			0.93			1.53			2.26			2.36									0.82			2.72
Federal funds purchased and securities sold under repurchase agreements		0.23			0.36			0.95			2.63			2.73									0.29			3.00
Commercial paper		0.24			0.47			1.17			2.05			2.17									0.35			2.79
Other borrowings and liabilities (b)		1.32			1.46			2.56			2.84			3.77									1.39			4.39
Beneficial interests issued by consolidated VIEs		1.59			1.57			3.79			2.87			2.24									1.58			2.92
Long-term debt		2.60			2.73			3.87			3.31			3.27									2.67			3.52
Total interest-bearing liabilities		1.04			1.23			2.01			2.61			2.71									1.14			3.07
INTEREST RATE SPREAD		2.96	%		3.18	%		3.11	%		2.61	%		2.63	%								3.06	%		2.53	%
NET YIELD ON INTEREST-EARNING ASSETS		3.07	%		3.29	%		3.28	%		2.73	%		2.71	%								3.18	%		2.65	%
NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		3.37	%		3.60	%		3.55	%		3.06	%		3.06	%								3.48	%		3.00	%

(a)	Includes margin loans and the Firm’s investment in asset-backed commercial paper under the Federal Reserve Bank of Boston’s AML facility.
(b)	Includes securities sold but not yet purchased, brokerage customer payables and advances from Federal Home Loan Banks.
(c)	Includes securities borrowed.

Page 5

JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO MANAGED SUMMARY
(in millions)

The Firm prepares its consolidated financial statements using accounting principles generally accepted in the United States of America (“U.S. GAAP”). That presentation, which is referred to as “reported basis,” provides the reader with an understanding of the Firm’s results that can be tracked consistently from year to year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements.

In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of lines of business 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.

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
CREDIT CARD INCOME
Credit card income — reported	$	1,719		$	1,837		$	2,049		$	1,771		$	1,803			(6)	%		(5)	%	$	3,556		$	3,599			(1	)%
Impact of:
Credit card securitizations		(294	)		(540	)		(710	)		(843	)		(843	)		46			65			(834	)		(1,780	)		53
Credit card income — managed	$	1,425		$	1,297		$	1,339		$	928		$	960			10			48		$	2,722		$	1,819			50
OTHER INCOME
Other income — reported	$	10		$	50		$	593		$	(115	)	$	(138	)		(80	)	NM			$	60		$	1,691			(96	)
Impact of:
Tax-equivalent adjustments		335			337			556			323			247			(1	)		36			672			450			49
Other income — managed	$	345		$	387		$	1,149		$	208		$	109			(11	)		217		$	732		$	2,141			(66	)
TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	12,953		$	11,658		$	3,394		$	5,743		$	10,105			11			28		$	24,611		$	19,336			27
Impact of:
Credit card securitizations		(294	)		(540	)		(710	)		(843	)		(843	)		46			65			(834	)		(1,780	)		53
Tax-equivalent adjustments		335			337			556			323			247			(1	)		36			672			450			49
Total noninterest revenue — managed	$	12,994		$	11,455		$	3,240		$	5,223		$	9,509			13			37		$	24,449		$	18,006			36
NET INTEREST INCOME
Net interest income — reported	$	12,670		$	13,367		$	13,832		$	8,994		$	8,294			(5	)		53		$	26,037		$	15,953			63
Impact of:
Credit card securitizations		1,958			2,004			1,938			1,716			1,673			(2	)		17			3,962			3,291			20
Tax-equivalent adjustments		87			96			98			155			202			(9	)		(57	)		183			326			(44	)
Net interest income — managed	$	14,715		$	15,467		$	15,868		$	10,865		$	10,169			(5	)		45		$	30,182		$	19,570			54
TOTAL NET REVENUE
Total net revenue — reported	$	25,623		$	25,025		$	17,226		$	14,737		$	18,399			2			39		$	50,648		$	35,289			44
Impact of:
Credit card securitizations		1,664			1,464			1,228			873			830			14			100			3,128			1,511			107
Tax-equivalent adjustments		422			433			654			478			449			(3	)		(6	)		855			776			10
Total net revenue — managed	$	27,709		$	26,922		$	19,108		$	16,088		$	19,678			3			41		$	54,631		$	37,576			45
PRE-PROVISION PROFIT
Total pre-provision profit — reported	$	12,103		$	11,652		$	5,971		$	3,600		$	6,222			4			95		$	23,755		$	14,181			68
Impact of:
Credit card securitizations		1,664			1,464			1,228			873			830			14			100			3,128			1,511			107
Tax-equivalent adjustments		422			433			654			478			449			(3	)		(6	)		855			776			10
Total pre-provision profit — managed	$	14,189		$	13,549		$	7,853		$	4,951		$	7,501			5			89		$	27,738		$	16,468			68
PROVISION FOR CREDIT LOSSES
Provision for credit losses — reported	$	8,031		$	8,596		$	7,313		$	5,787		$	3,455			(7	)		132		$	16,627		$	7,879			111
Impact of:
Credit card securitizations		1,664			1,464			1,228			873			830			14			100			3,128			1,511			107
Provision for credit losses — managed	$	9,695		$	10,060		$	8,541		$	6,660		$	4,285			(4	)		126		$	19,755		$	9,390			110
INCOME TAX EXPENSE
Income tax expense (benefit) — reported	$	1,351		$	915		$	(719	)	$	(2,133	)	$	764			48			77		$	2,266		$	1,926			18
Impact of:
Tax-equivalent adjustments		422			433			654			478			449			(3	)		(6	)		855			776			10
Income tax expense (benefit) — managed	$	1,773		$	1,348		$	(65	)	$	(1,655	)	$	1,213			32			46		$	3,121		$	2,702			16

Page 6

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
TOTAL NET REVENUE (FTE)
Investment Bank (a)	$	7,301		$	8,371		$	(272	)	$	4,066		$	5,500			(13)	%		33	%	$	15,672		$	8,541			83	%
Retail Financial Services		7,970			8,835			8,684			4,963			5,110			(10	)		56			16,805			9,873			70
Card Services		4,868			5,129			4,908			3,887			3,775			(5	)		29			9,997			7,679			30
Commercial Banking		1,453			1,402			1,479			1,125			1,106			4			31			2,855			2,173			31
Treasury & Securities Services		1,900			1,821			2,249			1,953			2,019			4			(6	)		3,721			3,932			(5	)
Asset Management		1,982			1,703			1,658			1,961			2,064			16			(4	)		3,685			3,965			(7	)
Corporate/Private Equity (a)		2,235			(339	)		402			(1,867	)		104		NM			NM				1,896			1,413			34
TOTAL NET REVENUE	$	27,709		$	26,922		$	19,108		$	16,088		$	19,678			3			41		$	54,631		$	37,576			45
TOTAL PRE-PROVISION PROFIT
Investment Bank (a)	$	3,234		$	3,597		$	(3,013	)	$	250		$	766			(10	)		322		$	6,831		$	1,254			445
Retail Financial Services		3,891			4,664			4,638			2,184			2,430			(17	)		60			8,555			4,621			85
Card Services		3,535			3,783			3,419			2,693			2,590			(7	)		36			7,318			5,222			40
Commercial Banking		918			849			980			639			630			8			46			1,767			1,212			46
Treasury & Securities Services		612			502			910			614			702			22			(13	)		1,114			1,387			(20	)
Asset Management		628			405			445			599			664			55			(5	)		1,033			1,242			(17	)
Corporate/Private Equity (a)		1,371			(251	)		474			(2,028	)		(281	)	NM			NM				1,120			1,530			(27	)
TOTAL PRE-PROVISION PROFIT	$	14,189		$	13,549		$	7,853		$	4,951		$	7,501			5			89		$	27,738		$	16,468			68
NET INCOME (LOSS)
Investment Bank	$	1,471		$	1,606		$	(2,364	)	$	882		$	394			(8	)		273		$	3,077		$	307		NM
Retail Financial Services		15			474			624			64			503			(97	)		(97	)		489			192			155
Card Services		(672	)		(547	)		(371	)		292			250			(23	)	NM				(1,219	)		859		NM
Commercial Banking		368			338			480			312			355			9			4			706			647			9
Treasury & Securities Services		379			308			533			406			425			23			(11	)		687			828			(17	)
Asset Management		352			224			255			351			395			57			(11	)		576			751			(23	)
Corporate/Private Equity		808			(262	)		1,545			(1,780	)		(319	)	NM			NM				546			792			(31	)
TOTAL NET INCOME	$	2,721		$	2,141		$	702		$	527		$	2,003			27			36		$	4,862		$	4,376			11
AVERAGE EQUITY (b)
Investment Bank	$	33,000		$	33,000		$	33,000		$	26,000		$	23,319			—			42		$	33,000		$	22,659			46
Retail Financial Services		25,000			25,000			25,000			17,000			17,000			—			47			25,000			17,000			47
Card Services		15,000			15,000			15,000			14,100			14,100			—			6			15,000			14,100			6
Commercial Banking		8,000			8,000			8,000			7,000			7,000			—			14			8,000			7,000			14
Treasury & Securities Services		5,000			5,000			4,500			3,500			3,500			—			43			5,000			3,500			43
Asset Management		7,000			7,000			7,000			5,500			5,066			—			38			7,000			5,033			39
Corporate/Private Equity		47,865			43,493			46,257			53,540			56,421			10			(15	)		45,691			56,201			(19	)
TOTAL AVERAGE EQUITY	$	140,865		$	136,493		$	138,757		$	126,640		$	126,406			3			11		$	138,691		$	125,493			11
RETURN ON EQUITY (b)
Investment Bank		18	%		20	%		(28)	%		13	%		7	%								19	%		3	%
Retail Financial Services		—			8			10			1			12									4			2
Card Services		(18	)		(15	)		(10	)		8			7									(16	)		12
Commercial Banking		18			17			24			18			20									18			19
Treasury & Securities Services		30			25			47			46			49									28			48
Asset Management		20			13			14			25			31									17			30

(a)

In the second quarter of 2009, Investment Bank (“IB”) began reporting credit reimbursement from TSS as a component of total net revenue, whereas TSS continues to report its credit reimbursement to IB as a separate line item on its income statement (not part of net revenue). Corporate/Private Equity includes an adjustment to offset IB’s inclusion of the credit reimbursement in total net revenue. Prior periods have been revised for IB and Corporate/Private Equity to reflect this presentation.

(b)

Each business segment is allocated capital by taking into consideration stand-alone peer comparisons, economic risk measures and regulatory capital requirements. The amount of capital assigned to each business is referred to as equity.

Page 7

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
INCOME STATEMENT
REVENUE
Investment banking fees	$	2,239		$	1,380		$	1,373		$	1,593		$	1,735			62	%		29	%	$	3,619		$	2,941			23	%
Principal transactions		1,841			3,515			(6,160	)		(922	)		838			(48	)		120			5,356			40		NM
Lending & deposit-related fees		167			138			138			118			105			21			59			305			207			47
Asset management, administration and commissions		717			692			764			847			709			4			1			1,409			1,453			(3	)
All other income (a)		(108	)		(56	)		139			(248	)		(196	)		(93	)		45			(164	)		(232	)		29
Noninterest revenue		4,856			5,669			(3,746	)		1,388			3,191			(14	)		52			10,525			4,409			139
Net interest income		2,445			2,702			3,474			2,678			2,309			(10	)		6			5,147			4,132			25
TOTAL NET REVENUE (b)		7,301			8,371			(272	)		4,066			5,500			(13	)		33			15,672			8,541			83
Provision for credit losses		871			1,210			765			234			398			(28	)		119			2,081			1,016			105
NONINTEREST EXPENSE
Compensation expense		2,677			3,330			1,166			2,162			3,132			(20	)		(15	)		6,007			4,373			37
Noncompensation expense		1,390			1,444			1,575			1,654			1,602			(4	)		(13	)		2,834			2,914			(3	)
TOTAL NONINTEREST EXPENSE		4,067			4,774			2,741			3,816			4,734			(15	)		(14	)		8,841			7,287			21
Income (loss) before income tax expense		2,363			2,387			(3,778	)		16			368			(1	)	NM				4,750			238		NM
Income tax expense (benefit) (c)		892			781			(1,414	)		(866	)		(26	)		14		NM				1,673			(69	)	NM
NET INCOME (LOSS)	$	1,471		$	1,606		$	(2,364	)	$	882		$	394			(8	)		273		$	3,077		$	307		NM
FINANCIAL RATIOS
ROE		18	%		20	%		(28)	%		13	%		7	%								19	%		3	%
ROA		0.83			0.89			(1.08	)		0.39			0.19									0.86			0.08
Overhead ratio		56			57		NM				94			86									56			85
Compensation expense as a % of total net revenue		37			40		NM				53			57									38			51
REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	393		$	479		$	579		$	576		$	370			(18	)		6		$	872		$	853			2
Equity underwriting		1,103			308			330			518			542			258			104			1,411			901			57
Debt underwriting		743			593			464			499			823			25			(10	)		1,336			1,187			13
Total investment banking fees		2,239			1,380			1,373			1,593			1,735			62			29			3,619			2,941			23
Fixed income markets		4,929			4,889			(1,671	)		815			2,347			1			110			9,818			2,813			249
Equity markets		708			1,773			(94	)		1,650			1,079			(60	)		(34	)		2,481			2,055			21
Credit portfolio (a)		(575	)		329			120			8			339		NM			NM				(246	)		732		NM
Total net revenue	$	7,301		$	8,371		$	(272	)	$	4,066		$	5,500			(13	)		33		$	15,672		$	8,541			83
REVENUE BY REGION (a)
Americas	$	4,177		$	4,800		$	(2,203	)	$	1,072		$	3,185			(13	)		31		$	8,977		$	3,741			140
Europe/Middle East/Africa		2,235			2,595			2,026			2,517			1,519			(14	)		47			4,830			3,167			53
Asia/Pacific		889			976			(95	)		477			796			(9	)		12			1,865			1,633			14
Total net revenue	$	7,301		$	8,371		$	(272	)	$	4,066		$	5,500			(13	)		33		$	15,672		$	8,541			83

(a)	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. IB recognizes this credit reimbursement in its credit portfolio business in all other income. Prior periods have been revised to conform with the current presentation.
(b)	Total net revenue included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as, tax-exempt income from municipal bond investments, of $334 million, $365 million, $583 million, $427 million, and $404 million, for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $699 million and $693 million for year-to-date 2009 and 2008, respectively.
(c)	The income tax benefit in the third quarter of 2008 is predominantly the result of reduced deferred tax liabilities on overseas earnings.

Page 8

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
SELECTED BALANCE SHEET DATA (Period-end)
Loans:
Loans retained (a)	$	64,500		$	66,506		$	71,357		$	73,347		$	70,690			(3)	%		(9)	%	$	64,500		$	70,690			(9	)%
Loans held-for-sale & loans at fair value		6,814			10,993			13,660			16,667			19,699			(38	)		(65	)		6,814			19,699			(65	)
Total loans		71,314			77,499			85,017			90,014			90,389			(8	)		(21	)		71,314			90,389			(21	)
Equity		33,000			33,000			33,000			33,000			26,000			—			27			33,000			26,000			27
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	710,825		$	733,166		$	869,159		$	890,040		$	814,860			(3	)		(13	)	$	721,934		$	785,344			(8	)
Trading assets — debt and equity instruments		265,336			272,998			306,168			360,821			367,184			(3	)		(28	)		269,146			368,320			(27	)
Trading assets — derivative receivables		100,536			125,021			153,875			105,462			99,395			(20	)		1			112,711			94,814			19
Loans:
Loans retained (a)		68,224			70,041			73,110			69,022			76,239			(3	)		(11	)		69,128			75,173			(8	)
Loans held-for-sale & loans at fair value		8,934			12,402			16,378			17,612			20,440			(28	)		(56	)		10,658			20,026			(47	)
Total loans		77,158			82,443			89,488			86,634			96,679			(6	)		(20	)		79,786			95,199			(16	)
Adjusted assets (b)		531,632			589,163			685,242			694,459			676,777			(10	)		(21	)		560,239			669,598			(16	)
Equity		33,000			33,000			33,000			26,000			23,319			—			42			33,000			22,659			46
Headcount		25,783			26,142			27,938			30,993			37,057			(1	)		(30	)		25,783			37,057			(30	)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (recoveries)	$	433		$	36		$	87		$	13		$	(8	)	NM			NM			$	469		$	5		NM
Nonperforming assets:
Loans (c)		3,519			1,795			1,175			436			313			96		NM				3,519			313		NM
Derivative receivables		704			1,010			1,079			34			76			(30	)	NM				704			76		NM
Assets acquired in loan satisfactions		311			236			247			113			101			32			208			311			101			208
Total nonperforming assets		4,534			3,041			2,501			583			490			49		NM				4,534			490		NM
Allowance for credit losses:
Allowance for loan losses		5,101			4,682			3,444			2,654			2,429			9			110			5,101			2,429			110
Allowance for lending-related commitments		351			295			360			463			469			19			(25	)		351			469			(25	)
Total allowance for credit losses		5,452			4,977			3,804			3,117			2,898			10			88			5,452			2,898			88
Net charge-off (recovery) rate (a) (d)		2.55	%		0.21	%		0.47	%		0.07	%		(0.04)	%								1.37	%		0.01	%
Allowance for loan losses to period-end loans (a) (d)		7.91			7.04			4.83			3.62			3.44									7.91			3.44
Allowance for loan losses to average loans (a) (d) (e)		7.48			6.68			4.71			3.85			3.19									7.38			3.23
Allowance for loan losses to nonperforming loans (c)		150			269			301			657			843									150			843
Nonperforming loans to period-end loans		4.93			2.32			1.38			0.48			0.35									4.93			0.35
Nonperforming loans to average loans		4.56			2.18			1.31			0.50			0.32									4.41			0.33

(a)	Loans retained included credit portfolio loans, leveraged leases and other accrual loans, and excluded loans held-for-sale and loans accounted for at fair value.
(b)	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; (4) goodwill and intangibles; (5) securities received as collateral; and (6) investments purchased under the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility. 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. IB believes an adjusted asset amount that excludes the assets discussed above, which were considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.
(c)	Nonperforming loans included loans held-for-sale and loans at fair value of $112 million, $57 million, $32 million, $32 million, and $25 million, at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, 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.
(d)	Loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage ratio and net charge-off (recovery) rate.
(e)	Excluding the impact of a loan originated in March 2008 to Bear Stearns, the adjusted ratio would be 3.46% and 3.40% for the quarter ended June 30, 2008, and the six months ended June 30, 2008, respectively. The average balance of the loan extended to Bear Stearns was $6.0 billion and $3.8 billion for the quarter ended June 30, 2008, and the six months ended June 30, 2008, respectively.

Page 9

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR - 99% CONFIDENCE LEVEL (a)
Trading activities:
Fixed income	$	249		$	218		$	276		$	183		$	155			14	%		61	%	$	234		$	137			71	%
Foreign exchange		26			40			55			20			26			(35	)		—			33			30			10
Equities		77			162			87			80			30			(52	)		157			119			31			284
Commodities and other		34			28			30			41			31			21			10			31			29			7
Diversification (b)		(136	)		(159	)		(146	)		(104	)		(92	)		14			(48	)		(148	)		(91	)		(63	)
Total trading VaR (c)		250			289			302			220			150			(13	)		67			269			136			98
Credit portfolio VaR (d)		133			182			165			47			35			(27	)		280			157			33			376
Diversification (b)		(116	)		(135	)		(140	)		(49	)		(36	)		14			(222	)		(125	)		(34	)		(268	)
Total trading and credit portfolio VaR	$	267		$	336		$	327		$	218		$	149			(21	)		79		$	301		$	135			123

	June 30, 2009 YTD		Full Year 2008
	Market		Market
MARKET SHARES AND RANKINGS (e)	Share	Rankings	Share	Rankings
Global debt, equity and equity-related	11%	#1	10%	#1
Global syndicated loans	10%	#1	12%	#1
Global long-term debt (f)	9%	#1	9%	#3
Global equity and equity-related (g)	16%	#1	10%	#1
Global announced M&A (h)	32%	#3	27%	#2
U.S. debt, equity and equity-related	15%	#1	15%	#2
U.S. syndicated loans	25%	#1	25%	#1
U.S. long-term debt (f)	15%	#1	15%	#2
U.S. equity and equity-related (g)	17%	#1	11%	#1
U.S. announced M&A (h)	48%	#3	33%	#2

(a)	Results for second quarter 2008 include one month of the combined Firm’s results and two months of 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)	Included VaR on derivative credit valuation adjustments (“CVA”), hedges of the CVA 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. Full year 2008 results are pro forma for the Bear Stearns merger.
(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 are based upon proceeds, with full credit to each book manager/equal if joint. Because of joint assignments, market share of all participants will add up to more than 100%. Global and U.S. announced M&A market share and ranking for 2008 include transactions withdrawn since December 31, 2008. U.S. announced M&A represents any U.S. involvement ranking.

Page 10

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
INCOME STATEMENT
REVENUE
Lending & deposit-related fees	$	1,003		$	948		$	1,050		$	538		$	497			6	%		102	%	$	1,951		$	958			104	%
Asset management, administration and commissions		425			435			412			346			375			(2	)		13			860			752			14
Mortgage fees and related income		807			1,633			1,962			438			696			(51	)		16			2,440			1,221			100
Credit card income		411			367			367			204			194			12			112			778			368			111
Other income		294			214			183			206			198			37			48			508			350			45
Noninterest revenue		2,940			3,597			3,974			1,732			1,960			(18	)		50			6,537			3,649			79
Net interest income		5,030			5,238			4,710			3,231			3,150			(4	)		60			10,268			6,224			65
TOTAL NET REVENUE		7,970			8,835			8,684			4,963			5,110			(10	)		56			16,805			9,873			70
Provision for credit losses		3,846			3,877			3,576			2,056			1,585			(1	)		143			7,723			4,273			81
NONINTEREST EXPENSE
Compensation expense		1,631			1,631			1,604			1,120			1,184			—			38			3,262			2,344			39
Noncompensation expense		2,365			2,457			2,345			1,559			1,396			(4	)		69			4,822			2,708			78
Amortization of intangibles		83			83			97			100			100			—			(17	)		166			200			(17	)
TOTAL NONINTEREST EXPENSE		4,079			4,171			4,046			2,779			2,680			(2	)		52			8,250			5,252			57
Income (loss) before income tax expense		45			787			1,062			128			845			(94	)		(95	)		832			348			139
Income tax expense (benefit)		30			313			438			64			342			(90	)		(91	)		343			156			120
NET INCOME (LOSS)	$	15		$	474		$	624		$	64		$	503			(97	)		(97	)	$	489		$	192			155
FINANCIAL RATIOS
ROE		—	%		8	%		10	%		1	%		12	%								4	%		2	%
Overhead ratio		51			47			47			56			52									49			53
Overhead ratio excluding core deposit intangibles (a)		50			46			45			54			51									48			51
SELECTED BALANCE SHEET DATA (Period-end)
Assets	$	399,916		$	412,505		$	419,831		$	426,435		$	265,845			(3	)		50		$	399,916		$	265,845			50
Loans:
Loans retained		353,934			364,220			368,786			371,153			223,047			(3	)		59			353,934			223,047			59
Loans held-for-sale & loans at fair value (b)		13,192			12,529			9,996			10,223			16,282			5			(19	)		13,192			16,282			(19	)
Total loans		367,126			376,749			378,782			381,376			239,329			(3	)		53			367,126			239,329			53
Deposits		371,241			380,140			360,451			353,660			223,121			(2	)		66			371,241			223,121			66
Equity		25,000			25,000			25,000			25,000			17,000			—			47			25,000			17,000			47
SELECTED BALANCE SHEET DATA (Average)
Assets	$	410,228		$	423,472		$	423,699		$	265,367		$	267,808			(3	)		53		$	416,813		$	263,911			58
Loans:
Loans retained		359,372			366,925			369,172			222,640			221,132			(2	)		63			363,127			217,859			67
Loans held-for-sale & loans at fair value (b)		19,043			16,526			13,848			16,037			20,492			15			(7	)		17,792			19,167			(7	)
Total loans		378,415			383,451			383,020			238,677			241,624			(1	)		57			380,919			237,026			61
Deposits		377,259			370,278			358,523			222,180			226,487			2			67			373,788			226,021			65
Equity		25,000			25,000			25,000			17,000			17,000			—			47			25,000			17,000			47
Headcount		103,733			100,677			102,007			101,826			69,550			3			49			103,733			69,550			49

(a)

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 Retail Banking’s core deposit intangibles amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $82 million, $83 million, $97 million, $99 million, and $99 million for the quarters ending June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $165 million and $198 million for year-to-date 2009 and 2008, respectively.

(b)

Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $11.3 billion, $8.9 billion, $8.0 billion, $8.6 billion, and $14.1 billion at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. Average balances of these loans totaled $16.2 billion, $13.4 billion, $12.0 billion, $14.5 billion, and $16.9 billion for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $14.9 billion and $15.2 billion for year-to-date 2009 and 2008, respectively.

Page 11

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	2,649		$	2,176		$	1,701		$	1,326		$	1,025			22	%		158	%	$	4,825		$	1,850			161	%
Nonperforming loans (a) (b) (c)		8,995			7,978			6,784			5,724			4,574			13			97			8,995			4,574			97
Nonperforming assets (a) (b) (c)		10,554			9,846			9,077			8,085			5,333			7			98			10,554			5,333			98
Allowance for loan losses		11,832			10,619			8,918			7,517			5,062			11			134			11,832			5,062			134
Net charge-off rate (d)		2.96	%		2.41	%		1.83	%		2.37	%		1.86	%								2.68	%		1.71	%
Net charge-off rate excluding purchased credit-impaired loans (d) (e)		3.89			3.16			2.41			2.37			1.86									3.53			1.71
Allowance for loan losses to ending loans (d)		3.34			2.92			2.42			2.03			2.27									3.34			2.27
Allowance for loan losses to ending loans excluding purchased credit-impaired loans (d) (e)		4.41			3.84			3.19			2.56			2.27									4.41			2.27
Allowance for loan losses to nonperforming loans (a) (d)		135			138			136			136			115									135			115
Nonperforming loans to total loans		2.45			2.12			1.79			1.50			1.91									2.45			1.91
Nonperforming loans to total loans excluding purchased credit-impaired loans (a)		3.19			2.76			2.34			1.88			1.91									3.19			1.91

(a)	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.
(b)	Nonperforming loans and assets included loans held-for-sale and loans accounted for at fair value of $203 million, $264 million, $236 million, $207 million, and $180 million at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, 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 Government National Mortgage Association (“GNMA”) pools that are insured by U.S. government agencies, of $4.7 billion, $4.6 billion, $3.3 billion, $1.8 billion, and $1.9 billion at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively; and (2) student 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 $473 million, $433 million, $437 million, $405 million, and $394 million at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. These amounts for GNMA and student loans are excluded, as reimbursement is proceeding normally.
(d)	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.
(e)	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 incorporated management’s estimate, as of that date, of credit losses over the remaining life of the portfolio. No allowance for loan losses has been recorded for these loans as of June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively.

Page 12

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
RETAIL BANKING
Noninterest revenue	$	1,803		$	1,718		$	1,834		$	1,089		$	1,062			5	%		70	%	$	3,521		$	2,028			74	%
Net interest income		2,719			2,614			2,687			1,756			1,671			4			63			5,333			3,216			66
Total net revenue		4,522			4,332			4,521			2,845			2,733			4			65			8,854			5,244			69
Provision for credit losses		361			325			268			70			62			11			482			686			111		NM
Noninterest expense		2,557			2,580			2,533			1,580			1,557			(1	)		64			5,137			3,119			65
Income before income tax expense		1,604			1,427			1,720			1,195			1,114			12			44			3,031			2,014			50
Net income	$	970		$	863		$	1,040		$	723		$	674			12			44		$	1,833		$	1,219			50
Overhead ratio		57	%		60	%		56	%		56	%		57	%								58	%		59	%
Overhead ratio excluding core deposit intangibles (a)		55			58			54			52			53									56			56
BUSINESS METRICS (in billions)
Business banking origination volume	$	0.6		$	0.5		$	0.8		$	1.2		$	1.7			20			(65	)	$	1.1		$	3.5			(69	)
End-of-period loans owned		17.8			18.2			18.4			18.6			16.5			(2	)		8			17.8			16.5			8
End-of-period deposits:
Checking	$	114.1		$	113.9		$	109.2		$	106.7		$	69.1			—			65		$	114.1		$	69.1			65
Savings		150.4			152.4			144.0			146.4			105.8			(1	)		42			150.4			105.8			42
Time and other		78.9			86.5			89.1			85.8			37.0			(9	)		113			78.9			37.0			113
Total end-of-period deposits		343.4			352.8			342.3			338.9			211.9			(3	)		62			343.4			211.9			62
Average loans owned	$	18.0		$	18.4		$	18.2		$	16.6		$	16.2			(2	)		11		$	18.2		$	16.0			14
Average deposits:
Checking	$	114.2		$	109.4		$	105.8		$	68.0		$	68.4			4			67		$	111.8		$	67.3			66
Savings		151.2			148.2			145.3			105.4			105.9			2			43			149.6			103.1			45
Time and other		82.7			88.2			88.7			36.7			39.6			(6	)		109			85.6			43.6			96
Total average deposits		348.1			345.8			339.8			210.1			213.9			1			63			347.0			214.0			62
Deposit margin		2.92	%		2.85	%		2.94	%		3.06	%		2.88	%								2.89	%		2.76	%
Average assets	$	29.1		$	30.2		$	28.7		$	25.6		$	25.7			(4	)		13		$	29.6		$	25.5			16
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	211		$	175		$	168		$	68		$	61			21			246		$	386		$	110			251
Net charge-off rate		4.70	%		3.86	%		3.67	%		1.63	%		1.51	%								4.28	%		1.38	%
Nonperforming assets	$	686		$	579		$	424		$	380		$	337			18			104		$	686		$	337			104
RETAIL BRANCH BUSINESS METRICS
Investment sales volume	$	5,292		$	4,398		$	3,956		$	4,389		$	5,211			20			2		$	9,690		$	9,295			4
Number of:
Branches		5,203			5,186			5,474			5,423			3,157			—			65			5,203			3,157			65
ATMs		14,144			14,159			14,568			14,389			9,310			—			52			14,144			9,310			52
Personal bankers		15,959			15,544			15,825			15,491			9,995			3			60			15,959			9,995			60
Sales specialists		5,485			5,454			5,661			5,899			4,116			1			33			5,485			4,116			33
Active online customers (in thousands)		13,930			12,882			11,710			11,682			7,180			8			94			13,930			7,180			94
Checking accounts (in thousands)		25,252			24,984			24,499			24,490			11,336			1			123			25,252			11,336			123

(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 method would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excludes Retail Banking’s core deposit intangibles amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $82 million, $83 million, $97 million, $99 million, and $99 million for the quarters ending June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $165 million and $198 million for year-to-date 2009 and 2008, respectively.

Page 13

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
CONSUMER LENDING
Noninterest revenue	$	1,137		$	1,879		$	2,140		$	643		$	898			(39	)%		27	%	$	3,016		$	1,621			86	%
Net interest income		2,311			2,624			2,023			1,475			1,479			(12	)		56			4,935			3,008			64
Total net revenue		3,448			4,503			4,163			2,118			2,377			(23	)		45			7,951			4,629			72
Provision for credit losses		3,485			3,552			3,308			1,986			1,523			(2	)		129			7,037			4,162			69
Noninterest expense		1,522			1,591			1,513			1,199			1,123			(4	)		36			3,113			2,133			46
Income (loss) before income tax expense		(1,559	)		(640	)		(658	)		(1,067	)		(269	)		(144	)		(480	)		(2,199	)		(1,666	)		(32	)
Net income (loss)	$	(955	)	$	(389	)	$	(416	)	$	(659	)	$	(171	)		(146	)		(458	)	$	(1,344	)	$	(1,027	)		(31	)
Overhead ratio		44	%		35	%		36	%		57	%		47	%								39	%		46	%
BUSINESS METRICS (in billions)
LOANS EXCLUDING PURCHASED CREDIT-IMPAIRED LOANS (a)
End-of-period loans owned:
Home equity	$	108.2		$	111.7		$	114.3		$	116.8		$	95.1			(3	)		14		$	108.2		$	95.1			14
Prime mortgage		62.1			65.4			65.2			63.0			40.1			(5	)		55			62.1			40.1			55
Subprime mortgage		13.8			14.6			15.3			18.1			14.8			(5	)		(7	)		13.8			14.8			(7	)
Option ARMs		9.0			9.0			9.0			19.0			—			—		NM				9.0			—		NM
Student loans		15.6			17.3			15.9			15.3			13.0			(10	)		20			15.6			13.0			20
Auto loans		42.9			43.1			42.6			43.3			44.9			—			(4	)		42.9			44.9			(4	)
Other		1.0			1.0			1.3			1.0			0.9			—			11			1.0			0.9			11
Total end-of-period loans		252.6			262.1			263.6			276.5			208.8			(4	)		21			252.6			208.8			21
Average loans owned:
Home equity	$	110.1		$	113.4		$	114.6		$	94.8		$	95.1			(3	)		16		$	111.7		$	95.0			18
Prime mortgage		63.3			65.4			65.0			39.7			39.3			(3	)		61			64.4			37.7			71
Subprime mortgage		14.3			14.9			15.7			14.2			15.5			(4	)		(8	)		14.6			15.6			(6	)
Option ARMs		9.1			8.8			9.0			—			—			3		NM				9.0			—		NM
Student loans		16.7			17.0			15.6			14.1			12.7			(2	)		31			16.8			12.4			35
Auto loans		43.1			42.5			42.9			43.9			44.9			1			(4	)		42.8			44.1			(3	)
Other		1.0			1.5			1.5			0.9			1.0			(33	)		—			1.3			1.1			18
Total average loans		257.6			263.5			264.3			207.6			208.5			(2	)		24			260.6			205.9			27
PURCHASED CREDIT-IMPAIRED LOANS (a)
End-of-period loans owned:
Home equity	$	27.7		$	28.4		$	28.6		$	26.5		$	—			(2	)	NM			$	27.7		$	—		NM
Prime mortgage		20.8			21.4			21.8			24.7			—			(3	)	NM				20.8			—		NM
Subprime mortgage		6.4			6.6			6.8			3.9			—			(3	)	NM				6.4			—		NM
Option ARMs		30.5			31.2			31.6			22.6			—			(2	)	NM				30.5			—		NM
Total end-of-period loans		85.4			87.6			88.8			77.7			—			(3	)	NM				85.4			—		NM
Average loans owned:
Home equity	$	28.0		$	28.4		$	28.2		$	—		$	—			(1	)	NM			$	28.2		$	—		NM
Prime mortgage		21.0			21.6			21.9			—			—			(3	)	NM				21.3			—		NM
Subprime mortgage		6.5			6.7			6.8			—			—			(3	)	NM				6.6			—		NM
Option ARMs		31.0			31.4			31.6			—			—			(1	)	NM				31.2			—		NM
Total average loans		86.5			88.1			88.5			—			—			(2	)	NM				87.3			—		NM
TOTAL CONSUMER LENDING PORTFOLIO
End-of-period loans owned:
Home equity	$	135.9		$	140.1		$	142.9		$	143.3		$	95.1			(3	)		43		$	135.9		$	95.1			43
Prime mortgage		82.9			86.8			87.0			87.7			40.1			(4	)		107			82.9			40.1			107
Subprime mortgage		20.2			21.2			22.1			22.0			14.8			(5	)		36			20.2			14.8			36
Option ARMs		39.5			40.2			40.6			41.6			—			(2	)	NM				39.5			—		NM
Student loans		15.6			17.3			15.9			15.3			13.0			(10	)		20			15.6			13.0			20
Auto loans		42.9			43.1			42.6			43.3			44.9			—			(4	)		42.9			44.9			(4	)
Other		1.0			1.0			1.3			1.0			0.9			—			11			1.0			0.9			11
Total end-of-period loans		338.0			349.7			352.4			354.2			208.8			(3	)		62			338.0			208.8			62
Average loans owned:
Home equity	$	138.1		$	141.8		$	142.8		$	94.8		$	95.1			(3	)		45		$	139.9		$	95.0			47
Prime mortgage		84.3			87.0			86.9			39.7			39.3			(3	)		115			85.7			37.7			127
Subprime mortgage		20.8			21.6			22.5			14.2			15.5			(4	)		34			21.2			15.6			36
Option ARMs		40.1			40.2			40.6			—			—			—		NM				40.2			—		NM
Student loans		16.7			17.0			15.6			14.1			12.7			(2	)		31			16.8			12.4			35
Auto loans		43.1			42.5			42.9			43.9			44.9			1			(4	)		42.8			44.1			(3	)
Other		1.0			1.5			1.5			0.9			1.0			(33	)		—			1.3			1.1			18
Total average loans owned (b)		344.1			351.6			352.8			207.6			208.5			(2	)		65			347.9			205.9			69

(a)

Purchased credit-impaired loans accounted for under SOP 03-3 represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. Under SOP 03-3, these loans were 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.

(b)

Total average loans include loans held-for-sale of $2.8 billion, $3.1 billion, $1.8 billion, $1.5 billion, and $3.6 billion for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively,

Page 14

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
CONSUMER LENDING (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding purchased credit-impaired loans: (a)
Home equity	$	1,265		$	1,098		$	770		$	663		$	511			15	%		148	%	$	2,363		$	958			147	%
Prime mortgage		481			312			195			177			104			54			363			793			154			415
Subprime mortgage		410			364			319			273			192			13			114			774			341			127
Option ARMs		15			4			—			—			—			275			NM			19			—			NM
Auto loans		146			174			207			124			119			(16	)		23			320			237			35
Other		121			49			42			21			38			147			218			170			50			240
Total net charge-offs		2,438			2,001			1,533			1,258			964			22			153			4,439			1,740			155
Net charge-off rate excluding purchased credit-impaired loans: (a)
Home equity		4.61	%		3.93	%		2.67	%		2.78	%		2.16	%								4.27	%		2.03	%
Prime mortgage		3.07			1.95			1.20			1.79			1.08									2.50			0.83
Subprime mortgage		11.50			9.91			8.08			7.65			4.98									10.69			4.40
Option ARMs		0.66			0.18			—			—			—									0.43			—
Auto loans		1.36			1.66			1.92			1.12			1.07									1.51			1.08
Other		3.15			1.25			1.08			0.60			1.44									2.18			1.01
Total net charge-off rate excluding purchased credit-impaired loans (b)		3.84			3.12			2.32			2.43			1.89									3.47			1.73
Net charge-off rate — reported:
Home equity		3.67			3.14			2.15			2.78			2.16									3.41			2.03
Prime mortgage		2.30			1.46			0.89			1.79			1.08									1.88			0.83
Subprime mortgage		7.91			6.83			5.64			7.65			4.98									7.36			4.40
Option ARMs		0.15			0.04			—			—			—									0.10			—
Auto loans		1.36			1.66			1.92			1.12			1.07									1.51			1.08
Other		3.15			1.25			1.08			0.60			1.44									2.18			1.01
Total net charge-off rate — reported (b)		2.87			2.33			1.74			2.43			1.89									2.59			1.73
30+ day delinquency rate excluding purchased credit-impaired loans (c) (d) (e)		5.22			4.73			4.21			3.16			3.88									5.22			3.88
Nonperforming assets (f) (g)	$	9,868		$	9,267		$	8,653		$	7,705		$	4,996			6			98		$	9,868		$	4,996			98
Allowance for loan losses to ending loans		3.23	%		2.83	%		2.36	%		1.95	%		2.33	%								3.23	%		2.33	%
Allowance for loan losses to ending loans excluding purchased credit-impaired loans (a)		4.34			3.79			3.16			2.50			2.33									4.34			2.33

(a)	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 incorporated management’s estimate, as of that date, of credit losses over the remaining life of the portfolio. No allowance for loan losses and no charge-offs have been recorded for these loans as of June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively.
(b)	Average loans held-for-sale of $2.8 billion, $3.1 billion, $1.8 billion, $1.5 billion, and $3.6 billion for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $2.9 billion and $4.0 billion for year-to-date 2009 and 2008, respectively, were excluded when calculating the net charge-off rate.
(c)	Excluded loans eligible for repurchase, as well as loans repurchased from GNMA pools that are insured by U.S. government agencies, of $4.6 billion, $4.5 billion, $3.2 billion, $2.0 billion, and $1.5 billion at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. These amounts are excluded, as reimbursement is proceeding normally.
(d)	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 $854 million, $770 million, $824 million, $787 million, and $735 million at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. These amounts are excluded as reimbursement is proceeding normally.
(e)	The delinquency rate for purchased credit-impaired loans accounted for under SOP 03-3 was 23.37%, 21.36%, 17.89%, and 13.21% at June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. There were no purchased credit-impaired loans at June 30, 2008.
(f)	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 $4.7 billion, $4.6 billion, $3.3 billion, $1.8 billion, and $1.9 billion at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively; and (2) student 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 $473 million, $433 million, $437 million, $405 million, and $394 million at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. These amounts for GNMA and student loans are excluded, as reimbursement is proceeding normally.
(g)	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.

Page 15

JPMORGAN CHASE & CO.
RETAIL FINANCIAL SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions, except where otherwise noted)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
CONSUMER LENDING (continued)
Origination volume:
Mortgage origination volume by channel
Retail	$	14.7		$	13.6		$	7.6		$	8.4		$	12.5			8	%		18	%	$	28.3		$	25.1			13	%
Wholesale		2.4			2.6			3.8			5.9			9.1			(8	)		(74	)		5.0			19.7			(75	)
Correspondent		20.2			17.0			13.3			13.2			17.0			19			19			37.2			29.0			28
CNT (negotiated transactions)		3.8			4.5			3.4			10.2			17.5			(16	)		(78	)		8.3			29.4			(72	)
Total mortgage origination volume		41.1			37.7			28.1			37.7			56.1			9			(27	)		78.8			103.2			(24	)
Home equity		0.6			0.9			1.7			2.6			5.3			(33	)		(89	)		1.5			12.0			(88	)
Student loans		0.4			1.7			1.0			2.6			1.3			(76	)		(69	)		2.1			3.3			(36	)
Auto loans		5.3			5.6			2.8			3.8			5.6			(5	)		(5	)		10.9			12.8			(15	)
Average mortgage loans held-for-sale & loans at fair value (a)		16.7			14.0			12.2			14.9			17.4			19			(4	)		15.3			15.6			(2	)
Average assets		381.1			393.3			395.0			239.8			242.1			(3	)		57			387.2			238.4			62
Third-party mortgage loans serviced (ending)		1,117.5			1,148.8			1,172.6			1,114.8			659.1			(3	)		70			1,117.5			659.1			70
MSR net carrying value (ending)		14.6			10.6			9.3			16.4			10.9			38			34			14.6			10.9			34
SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions)
Production revenue	$	284		$	481		$	62		$	66		$	394			(41	)		(28	)	$	765		$	770			(1	)
Net mortgage servicing revenue:
Loan servicing revenue		1,279			1,222			1,366			654			645			5			98			2,501			1,238			102
Changes in MSR asset fair value:
Due to inputs or assumptions in model		3,831			1,310			(6,950	)		(786	)		1,519			192			152			5,141			887			480
Other changes in fair value		(837	)		(1,073	)		(843	)		(390	)		(394	)		22			(112	)		(1,910	)		(819	)		(133	)
Total changes in MSR asset fair value		2,994			237			(7,793	)		(1,176	)		1,125		NM				166			3,231			68		NM
Derivative valuation adjustments and other		(3,750	)		(307	)		8,327			894			(1,468	)	NM				(155	)		(4,057	)		(855	)		(375	)
Total net mortgage servicing revenue		523			1,152			1,900			372			302			(55	)		73			1,675			451			271
Mortgage fees and related income		807			1,633			1,962			438			696			(51	)		16			2,440			1,221			100

(a) Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. Average balances of these loans totaled $16.2 billion, $13.4 billion, $12.0 billion, $14.5 billion, and $16.9 billion for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $14.9 billion and $15.2 billion for year-to-date 2009 and 2008, respectively.

Page 16

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
INCOME STATEMENT
REVENUE
Credit card income	$	921		$	844		$	862		$	633		$	673			9	%		37	%	$	1,765		$	1,273			39	%
All other income		(364	)		(197	)		(272	)		13			91			(85	)	NM				(561	)		210		NM
Noninterest revenue		557			647			590			646			764			(14	)		(27	)		1,204			1,483			(19	)
Net interest income		4,311			4,482			4,318			3,241			3,011			(4	)		43			8,793			6,196			42
TOTAL NET REVENUE		4,868			5,129			4,908			3,887			3,775			(5	)		29			9,997			7,679			30
Provision for credit losses		4,603			4,653			3,966			2,229			2,194			(1	)		110			9,256			3,864			140
NONINTEREST EXPENSE
Compensation expense		329			357			335			267			258			(8	)		28			686			525			31
Noncompensation expense		873			850			979			773			763			3			14			1,723			1,604			7
Amortization of intangibles		131			139			175			154			164			(6	)		(20	)		270			328			(18	)
TOTAL NONINTEREST EXPENSE		1,333			1,346			1,489			1,194			1,185			(1	)		12			2,679			2,457			9
Income (loss) before income tax expense		(1,068	)		(870	)		(547	)		464			396			(23	)	NM				(1,938	)		1,358		NM
Income tax expense (benefit)		(396	)		(323	)		(176	)		172			146			(23	)	NM				(719	)		499		NM
NET INCOME (LOSS)	$	(672	)	$	(547	)	$	(371	)	$	292		$	250			(23	)	NM			$	(1,219	)	$	859		NM
Memo: Net securitization income (loss)	$	(268	)	$	(180	)	$	(261	)	$	(28	)	$	36			(49	)	NM			$	(448	)	$	106		NM
FINANCIAL METRICS
ROE		(18	)%		(15	)%		(10	)%		8	%		7	%								(16	)%		12	%
Overhead ratio		27			26			30			31			31									27			32
% of average managed outstandings:
Net interest income		9.93			9.91			9.17			8.18			7.92									9.92			8.13
Provision for credit losses		10.60			10.29			8.42			5.63			5.77									10.44			5.07
Noninterest revenue		1.28			1.43			1.25			1.63			2.01									1.36			1.95
Risk adjusted margin (a)		0.61			1.05			2.00			4.19			4.16									0.84			5.01
Noninterest expense		3.07			2.98			3.16			3.01			3.12									3.02			3.23
Pretax income (loss) (ROO) (b)		(2.46	)		(1.92	)		(1.16	)		1.17			1.04									(2.19	)		1.78
Net income (loss)		(1.55	)		(1.21	)		(0.79	)		0.74			0.66									(1.38	)		1.13
BUSINESS METRICS
Charge volume (in billions)	$	82.8		$	76.0		$	96.0		$	93.9		$	93.6			9			(12	)	$	158.8		$	179.0			(11	)
Net accounts opened (in millions) (c)		2.4			2.2			4.3			16.6			3.6			9			(33	)		4.6			7.0			(34	)
Credit cards issued (in millions)		151.9			159.0			168.7			171.9			157.6			(4	)		(4	)		151.9			157.6			(4	)
Number of registered internet customers (in millions)		30.5			33.8			35.6			34.3			28.0			(10	)		9			30.5			28.0			9
Merchant acquiring business (d)
Bank card volume (in billions)	$	101.4		$	94.4		$	135.1		$	197.1		$	199.3			7			(49	)	$	195.8		$	381.7			(49	)
Total transactions (in billions)		4.5			4.1			4.9			5.7			5.6			10			(20	)		8.6			10.8			(20	)

(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 in the Washington Mutual transaction.
(d)	The Chase Paymentech Solutions joint venture was dissolved effective November 1, 2008. JPMorgan Chase retained approximately 51% of the business and operates the business under the name Chase Paymentech Solutions. For the period January 1, 2008, through October 31, 2008, the data presented represents activity for the Chase Paymentech Solutions joint venture and beyond that date, the data presented represents activity for Chase Paymentech Solutions.

Page 17

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
SELECTED BALANCE SHEET DATA (Period-end)
Loans:
Loans on balance sheets	$	85,736		$	90,911		$	104,746		$	92,881		$	76,278			(6	)%		12	%	$	85,736		$	76,278			12	%
Securitized loans		85,790			85,220			85,571			93,664			79,120			1			8			85,790			79,120			8
Managed loans	$	171,526		$	176,131		$	190,317		$	186,545		$	155,398			(3	)		10		$	171,526		$	155,398			10
Equity	$	15,000		$	15,000		$	15,000		$	15,000		$	14,100			—			6		$	15,000		$	14,100			6
SELECTED BALANCE SHEET DATA (Average)
Managed assets	$	193,310		$	201,200		$	203,943		$	169,413		$	161,601			(4	)		20		$	197,234		$	160,601			23
Loans:
Loans on balance sheets	$	89,692		$	97,783		$	98,790		$	79,183		$	75,630			(8	)		19		$	93,715		$	77,537			21
Securitized loans		84,417			85,619			88,505			78,371			77,195			(1	)		9			85,015			75,652			12
Managed average loans	$	174,109		$	183,402		$	187,295		$	157,554		$	152,825			(5	)		14		$	178,730		$	153,189			17
Equity	$	15,000		$	15,000		$	15,000		$	14,100		$	14,100			—			6		$	15,000		$	14,100			6
Headcount		22,897			23,759			24,025			22,283			19,570			(4	)		17			22,897			19,570			17
MANAGED CREDIT QUALITY STATISTICS
Net charge-offs	$	4,353		$	3,493		$	2,616		$	1,979		$	1,894			25			130		$	7,846		$	3,564			120
Net charge-off rate (a)		10.03	%		7.72	%		5.56	%		5.00	%		4.98	%								8.85	%		4.68	%
Managed delinquency rates
30+ day (a)		5.86	%		6.16	%		4.97	%		3.91	%		3.46	%								5.86	%		3.46	%
90+ day (a)		3.25			3.22			2.34			1.77			1.76									3.25			1.76
Allowance for loan losses (b)	$	8,839		$	8,849		$	7,692		$	5,946		$	3,705			—			139		$	8,839		$	3,705			139
Allowance for loan losses to period-end loans (b)(c)		10.31	%		9.73	%		7.34	%		6.40	%		4.86	%								10.31	%		4.86	%
KEY STATS — WASHINGTON MUTUAL ONLY (d)
Managed loans	$	23,093		$	25,908		$	28,250		$	27,235						(11	)	NM			$	23,093					NM
Managed average loans		24,418			27,578			27,703									(11	)	NM				25,990					NM
Net interest income (e)		17.90	%		16.45	%		14.87	%														17.14	%
Risk adjusted margin (e) (f)		(3.89	)		4.42			4.18															0.49
Net charge-off rate (g)		19.17			14.57			12.09															16.75
30+ day delinquency rate (g)		11.98			10.89			9.14			7.53	%											11.98
90+ day delinquency rate (g)		6.85			5.79			4.39			3.51												6.85
KEY STATS — EXCLUDING WASHINGTON MUTUAL
Managed loans	$	148,433		$	150,223		$	162,067		$	159,310		$	155,398			(1	)		(4	)	$	148,433		$	155,398			(4	)
Managed average loans		149,691			155,824			159,592			157,554			152,825			(4	)		(2	)		152,740			153,189			—
Net interest income (e)		8.63	%		8.75	%		8.18	%		8.18	%		7.92	%								8.69	%		8.13	%
Risk adjusted margin (e) (f)		1.34			0.46			1.62			4.19			4.16									0.89			5.01
Net charge-off rate		8.97			6.86			5.29			5.00			4.98									7.90			4.68
30+ day delinquency rate		5.27			5.34			4.36			3.69			3.46									5.27			3.46
90+ day delinquency rate		2.90			2.78			2.09			1.74			1.76									2.90			1.76

(a)	Results for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, reflect the impact of purchase accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust.
(b)	Based on loans on balance sheets.
(c)	Includes loans from the Washington Mutual Master Trust, which were consolidated onto the Card Services balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of June 30, 2009. Excluding these loans, the allowance for loan losses to period-end loans was 10.95%.
(d)	Statistics are only presented for periods after September 25, 2008, the date of the Washington Mutual transaction.
(e)	As a percentage of average managed outstandings.
(f)	Represents total net revenue less provision for credit losses.
(g)	Excludes the impact of purchase accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust.

Page 18

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
INCOME STATEMENT DATA (a)
Credit card income
Reported	$	1,215		$	1,384		$	1,553		$	1,476		$	1,516			(12	)%		(20	)%	$	2,599		$	3,053			(15	)%
Securitization adjustments		(294	)		(540	)		(691	)		(843	)		(843	)		46			65			(834	)		(1,780	)		53
Managed credit card income	$	921		$	844		$	862		$	633		$	673			9			37		$	1,765		$	1,273			39
Net interest income
Reported	$	2,353		$	2,478		$	2,408		$	1,525		$	1,338			(5	)		76		$	4,831		$	2,905			66
Securitization adjustments		1,958			2,004			1,910			1,716			1,673			(2	)		17			3,962			3,291			20
Managed net interest income	$	4,311		$	4,482		$	4,318		$	3,241		$	3,011			(4	)		43		$	8,793		$	6,196			42
Total net revenue
Reported	$	3,204		$	3,665		$	3,689		$	3,014		$	2,945			(13	)		9		$	6,869		$	6,168			11
Securitization adjustments		1,664			1,464			1,219			873			830			14			100			3,128			1,511			107
Managed total net revenue	$	4,868		$	5,129		$	4,908		$	3,887		$	3,775			(5	)		29		$	9,997		$	7,679			30
Provision for credit losses
Reported	$	2,939		$	3,189		$	2,747		$	1,356		$	1,364			(8	)		115		$	6,128		$	2,353			160
Securitization adjustments		1,664			1,464			1,219			873			830			14			100			3,128			1,511			107
Managed provision for credit losses	$	4,603		$	4,653		$	3,966		$	2,229		$	2,194			(1	)		110		$	9,256		$	3,864			140
BALANCE SHEETS — AVERAGE BALANCES (a)
Total average assets
Reported	$	111,722		$	118,418		$	118,290		$	93,701		$	87,021			(6	)		28		$	115,052		$	87,517			31
Securitization adjustments		81,588			82,782			85,653			75,712			74,580			(1	)		9			82,182			73,084			12
Managed average assets	$	193,310		$	201,200		$	203,943		$	169,413		$	161,601			(4	)		20		$	197,234		$	160,601			23
CREDIT QUALITY STATISTICS (a)
Net charge-offs
Reported	$	2,689		$	2,029		$	1,397		$	1,106		$	1,064			33			153		$	4,718		$	2,053			130
Securitization adjustments		1,664			1,464			1,219			873			830			14			100			3,128			1,511			107
Managed net charge-offs	$	4,353		$	3,493		$	2,616		$	1,979		$	1,894			25			130		$	7,846		$	3,564			120

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

Page 19

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
INCOME STATEMENT
REVENUE
Lending & deposit-related fees	$	270		$	263		$	242		$	212		$	207			3	%		30	%	$	533		$	400			33	%
Asset management, administration and commissions		36			34			32			29			26			6			38			70			52			35
All other income (a)		152			125			102			147			150			22			1			277			265			5
Noninterest revenue		458			422			376			388			383			9			20			880			717			23
Net interest income		995			980			1,103			737			723			2			38			1,975			1,456			36
TOTAL NET REVENUE		1,453			1,402			1,479			1,125			1,106			4			31			2,855			2,173			31
Provision for credit losses		312			293			190			126			47			6		NM				605			148			309
NONINTEREST EXPENSE
Compensation expense		197			200			164			177			173			(2	)		14			397			351			13
Noncompensation expense		327			342			324			298			290			(4	)		13			669			584			15
Amortization of intangibles		11			11			11			11			13			—			(15	)		22			26			(15	)
TOTAL NONINTEREST EXPENSE		535			553			499			486			476			(3	)		12			1,088			961			13
Income before income tax expense		606			556			790			513			583			9			4			1,162			1,064			9
Income tax expense		238			218			310			201			228			9			4			456			417			9
NET INCOME	$	368		$	338		$	480		$	312		$	355			9			4		$	706		$	647			9
MEMO:
Revenue by product:
Lending	$	684		$	665		$	611		$	377		$	376			3			82		$	1,349		$	755			79
Treasury services		679			646			759			643			630			5			8			1,325			1,246			6
Investment banking		114			73			88			87			91			56			25			187			159			18
Other		(24	)		18			21			18			9		NM			NM				(6	)		13		NM
Total Commercial Banking revenue	$	1,453		$	1,402		$	1,479		$	1,125		$	1,106			4			31		$	2,855		$	2,173			31
IB revenue, gross (b)	$	328		$	206		$	241		$	252		$	270			59			21		$	534		$	473			13
Revenue by business:
Middle Market Banking	$	772		$	752		$	796		$	729		$	708			3			9		$	1,524		$	1,414			8
Commercial Term Lending (c)		224			228			243			—			—			(2	)	NM				452			—		NM
Mid-Corporate Banking		305			242			243			236			235			26			30			547			442			24
Real Estate Banking (c)		120			120			131			91			94			—			28			240			191			26
Other (c)		32			60			66			69			69			(47	)		(54	)		92			126			(27	)
Total Commercial Banking revenue	$	1,453		$	1,402		$	1,479		$	1,125		$	1,106			4			31		$	2,855		$	2,173			31
FINANCIAL RATIOS
ROE		18	%		17	%		24	%		18	%		20	%								18	%		19	%
Overhead ratio		37			39			34			43			43									38			44

(a)	Revenue from investment banking products sold to Commercial Banking (“CB”) clients and commercial card revenue is included in all other income.
(b)	Represents the total revenue related to investment banking products sold to CB clients.
(c)	Includes total net revenue on net assets acquired in the Washington Mutual transaction starting in the period ending December 31, 2008.

Page 20

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
SELECTED BALANCE SHEET DATA (Period-end)
Loans:
Loans retained	$	105,556		$	110,923		$	115,130		$	117,316		$	71,105			(5	)%		48	%	$	105,556		$	71,105			48	%
Loans held-for-sale & loans at fair value		296			272			295			313			306			9			(3	)		296			306			(3	)
Total loans		105,852			111,195			115,425			117,629			71,411			(5	)		48			105,852			71,411			48
Equity		8,000			8,000			8,000			8,000			7,000			—			14			8,000			7,000			14
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	137,283		$	144,298		$	149,815		$	101,681		$	103,469			(5	)		33		$	140,771		$	102,724			37
Loans:
Loans retained		108,750			113,568			117,351			71,901			70,682			(4	)		54			111,146			69,096			61
Loans held-for-sale & loans at fair value		288			297			329			397			379			(3	)		(24	)		292			450			(35	)
Total loans		109,038			113,865			117,680			72,298			71,061			(4	)		53			111,438			69,546			60
Liability balances (a)		105,829			114,975			114,113			99,410			99,404			(8	)		6			110,377			99,441			11
Equity		8,000			8,000			8,000			7,000			7,000			—			14			8,000			7,000			14
MEMO:
Loans by business:
Middle Market Banking	$	38,193		$	40,728		$	42,613		$	43,155		$	42,879			(6	)		(11	)	$	39,453		$	41,495			(5	)
Commercial Term Lending (b)		36,963			36,814			37,039			—			—			—		NM				36,889			—		NM
Mid-Corporate Banking		17,012			18,416			18,169			16,491			15,357			(8	)		11			17,710			15,253			16
Real Estate Banking (b)		12,347			13,264			13,529			7,513			7,500			(7	)		65			12,803			7,479			71
Other (b)		4,523			4,643			6,330			5,139			5,325			(3	)		(15	)		4,583			5,319			(14	)
Total Commercial Banking loans	$	109,038		$	113,865		$	117,680		$	72,298		$	71,061			(4	)		53		$	111,438		$	69,546			60
Headcount		4,228			4,545			5,206			5,298			4,028			(7	)		5			4,228			4,028			5
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	181		$	134		$	118		$	40		$	49			35			269		$	315		$	130			142
Nonperforming loans (c) (d)		2,111			1,531			1,026			844			486			38			334			2,111			486			334
Nonperforming assets		2,255			1,651			1,142			923			510			37			342			2,255			510			342
Allowance for credit losses:
Allowance for loan losses (e)		3,034			2,945			2,826			2,698			1,843			3			65			3,034			1,843			65
Allowance for lending-related commitments		272			240			206			191			170			13			60			272			170			60
Total allowance for credit losses		3,306			3,185			3,032			2,889			2,013			4			64			3,306			2,013			64
Net charge-off rate (f)		0.67	%		0.48	%		0.40	%		0.22	%		0.28	%								0.57	%		0.38	%
Allowance for loan losses to period-end loans (d) (f)		2.87			2.65			2.45			2.30			2.59									2.87			2.59
Allowance for loan losses to average loans (d) (f)		2.79			2.59			2.41			2.32	(g)		2.61									2.73			2.67
Allowance for loan losses to nonperforming loans (c) (d)		145			192			275			320			401									145			401
Nonperforming loans to period-end loans (d)		1.99			1.38			0.89			0.72			0.68									1.99			0.68
Nonperforming loans to average loans (d)		1.94			1.34			0.87			0.72	(g)		0.68									1.89			0.70

(a)	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.
(b)	Includes loans acquired in the Washington Mutual transaction starting in the period ended December 31, 2008.
(c)	Nonperforming loans included loans held-for-sale and loans at fair value of $21 million and $26 million at June 30, 2009 and 2008, respectively. These amounts were excluded when calculating the allowance for loan losses to nonperforming loans ratio. There were no nonperforming loans held-for-sale or held at fair value at March 31, 2009, December 31, 2008, and September 30, 2008.
(d)	Purchased credit-impaired wholesale loans accounted for under SOP 03-3 that were acquired in the Washington Mutual transaction are considered nonperforming loans because the timing and amount of expected cash flows are not reasonably estimable. These nonperforming loans were included when calculating the allowance coverage ratios, the allowance for loan losses-to-nonperforming loans ratio, and the nonperforming loans-to-average and period-end loans ratios.
	The carrying amount of these purchased credit-impaired loans at June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, was $209 million, $210 million, $224 million and $272 million, respectively.
(e)	The allowance for loan losses at September 30, 2008, and June 30, 2008, included amounts related to loans acquired in the Washington Mutual transaction and the merger with Bear Stearns, respectively.
(f)	Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratios and the net charge-off rate.
(g)	Average loans in the calculation of this ratio were adjusted to include $44.5 billion of loans acquired from Washington Mutual as if the transaction occurred on July 1, 2008. Excluding this adjustment, the unadjusted allowance for loan losses-to-average loans and nonperforming loans-to-average loans ratios would have been 3.75% and 1.17%, respectively.

Page 21

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
INCOME STATEMENT
REVENUE
Lending & deposit-related fees	$	314		$	325		$	304		$	290		$	283			(3	)%		11	%	$	639		$	552			16	%
Asset management, administration and commissions		710			626			748			719			846			13			(16	)		1,336			1,666			(20	)
All other income		221			197			268			221			228			12			(3	)		418			428			(2	)
Noninterest revenue		1,245			1,148			1,320			1,230			1,357			8			(8	)		2,393			2,646			(10	)
Net interest income		655			673			929			723			662			(3	)		(1	)		1,328			1,286			3
TOTAL NET REVENUE		1,900			1,821			2,249			1,953			2,019			4			(6	)		3,721			3,932			(5	)
Provision for credit losses		(5	)		(6	)		45			18			7			17		NM				(11	)		19		NM
Credit reimbursement to IB (a)		(30	)		(30	)		(30	)		(31	)		(30	)		—			—			(60	)		(60	)		—
NONINTEREST EXPENSE
Compensation expense		618			629			628			664			669			(2	)		(8	)		1,247			1,310			(5	)
Noncompensation expense		650			671			692			661			632			(3	)		3			1,321			1,203			10
Amortization of intangibles		20			19			19			14			16			5			25			39			32			22
TOTAL NONINTEREST EXPENSE		1,288			1,319			1,339			1,339			1,317			(2	)		(2	)		2,607			2,545			2
Income before income tax expense		587			478			835			565			665			23			(12	)		1,065			1,308			(19	)
Income tax expense		208			170			302			159			240			22			(13	)		378			480			(21	)
NET INCOME	$	379		$	308		$	533		$	406		$	425			23			(11	)	$	687		$	828			(17	)
REVENUE BY BUSINESS
Treasury Services (b)	$	934		$	931		$	1,068		$	946		$	905			—			3		$	1,865		$	1,765			6
Worldwide Securities Services (b)		966			890			1,181			1,007			1,114			9			(13	)		1,856			2,167			(14	)
TOTAL NET REVENUE	$	1,900		$	1,821		$	2,249		$	1,953		$	2,019			4			(6	)	$	3,721		$	3,932			(5	)
FINANCIAL RATIOS
ROE		30	%		25	%		47	%		46	%		49	%								28	%		48	%
Overhead ratio		68			72			60			69			65									70			65
Pretax margin ratio (c)		31			26			37			29			33									29			33
SELECTED BALANCE SHEET DATA (Period-end)
Loans (d)	$	17,929		$	18,529		$	24,508		$	40,675		$	26,348			(3	)		(32	)	$	17,929		$	26,348			(32	)
Equity		5,000			5,000			4,500			4,500			3,500			—			43			5,000			3,500			43
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	35,520		$	38,682		$	55,515		$	49,386		$	56,192			(8	)		(37	)	$	37,092		$	56,698			(35	)
Loans (d)		17,524			20,140			31,283			26,650			23,822			(13	)		(26	)		18,825			23,454			(20	)
Liability balances (e)		234,163			276,486			336,277			259,992			268,293			(15	)		(13	)		255,208			261,331			(2	)
Equity		5,000			5,000			4,500			3,500			3,500			—			43			5,000			3,500			43
Headcount		27,252			26,998			27,070			27,592			27,232			1			—			27,252			27,232			—

(a)	The Investment Bank credit portfolio group manages certain exposures on behalf of clients shared with TSS. TSS reimburses IB for a portion of the total cost of managing the credit portfolio. IB recognizes this credit reimbursement as a component of noninterest revenue.
(b)	Reflects an internal reorganization for escrow products, from Worldwide Securities Services to Treasury Services revenue of $46 million, $45 million, $75 million, $49 million, and $52 million, for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $91 million and $99 million for year-to-date 2009 and 2008, respectively.
(c)	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.
(d)	Loan balances include wholesale overdrafts, commercial card and trade finance loans.
(e)	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 22

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.

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
TSS FIRMWIDE DISCLOSURES
Treasury Services revenue — reported (a)	$	934		$	931		$	1,068		$	946		$	905			—	%		3	%	$	1,865		$	1,765			6	%
Treasury Services revenue reported in Commercial Banking		679			646			759			643			630			5			8			1,325			1,246			6
Treasury Services revenue reported in other lines of business		63			62			82			76			72			2			(13	)		125			141			(11	)
Treasury Services firmwide revenue (a) (b)		1,676			1,639			1,909			1,665			1,607			2			4			3,315			3,152			5
Worldwide Securities Services revenue (a)		966			890			1,181			1,007			1,114			9			(13	)		1,856			2,167			(14	)
Treasury & Securities Services firmwide revenue (b)	$	2,642		$	2,529		$	3,090		$	2,672		$	2,721			4			(3	)	$	5,171		$	5,319			(3	)
Treasury Services firmwide liability balances (average) (c) (d)	$	258,312		$	289,645		$	312,559		$	248,075		$	252,625			(11	)		2		$	273,892		$	247,897			10
Treasury & Securities Services firmwide liability balances (average) (c)		339,992			391,461			450,390			359,401			367,670			(13	)		(8	)		365,584			360,758			1
TSS FIRMWIDE FINANCIAL RATIOS
Treasury Services firmwide overhead ratio (e)		51	%		53	%		44	%		52	%		53	%								52	%		53	%
Treasury & Securities Services firmwide overhead ratio (e)		59			63			52			60			58									61			58
FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)	$	13,748		$	13,532		$	13,205		$	14,417		$	15,476			2			(11	)	$	13,748		$	15,476			(11	)
Number of:
US$ ACH transactions originated (in millions)		978			978			1,006			997			993			—			(2	)		1,956			1,997			(2	)
Total US$ clearing volume (in thousands)		28,193			27,186			29,346			29,277			29,063			4			(3	)		55,379			57,119			(3	)
International electronic funds transfer volume (in thousands) (f)		47,096			44,365			47,734			41,831			41,432			6			14			91,461			81,471			12
Wholesale check volume (in millions)		572			568			572			595			618			1			(7	)		1,140			1,241			(8	)
Wholesale cards issued (in thousands) (g)		23,744			22,233			22,784			21,858			19,917			7			19			23,744			19,917			19
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (recoveries)	$	17		$	2		$	—		$	—		$	(2	)	NM			NM			$	19		$	(2	)	NM
Nonperforming loans		14			30			30			—			—			(53	)	NM				14			—		NM
Allowance for loan losses		15			51			74			47			40			(71	)		(63	)		15			40			(63	)
Allowance for lending-related commitments		92			77			63			45			33			19			179			92			33			179
Net charge-off (recovery) rate		0.39	%		0.04	%		—	%		—	%		(0.03	)%								0.20	%		(0.02)	%
Allowance for loan losses to period-end loans		0.08			0.28			0.30			0.12			0.15									0.08			0.15
Allowance for loan losses to average loans		0.09			0.25			0.24			0.18			0.17									0.08			0.17
Allowance for loan losses to nonperforming loans		107			170			247		NM			NM										107		NM
Nonperforming loans to period-end loans		0.08			0.16			0.12			—			—									0.08			—
Nonperforming loans to average loans		0.08			0.15			0.10			—			—									0.07			—

(a)	Reflects an internal reorganization for escrow products, from Worldwide Securities Services to Treasury Services revenue, of $46 million, $45 million, $75 million, $49 million, and $52 million, for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $91 million and $99 million for year-to-date 2009 and 2008, respectively.
(b)	TSS firmwide FX revenue includes FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of IB. FX revenue associated with TSS customers who are FX customers of IB was $191 million, $154 million, $271 million, $196 million, and $222 million, for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $345 million and $413 million for year-to-date 2009 and 2008, respectively. These amounts are not included in TS and TSS firmwide revenue.
(c)	Firmwide liability balances include liability balances recorded in Commercial Banking.
(d)	Reflects an internal reorganization for escrow products, from Worldwide Securities Services to Treasury Services liability balances, of $14.9 billion, $18.2 billion, $22.3 billion, $20.3 billion, and $21.9 billion for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $16.5 billion and $21.7 billion for year-to-date 2009 and 2008, respectively.
(e)	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 IB for TSS-related FX activity are not included in this ratio.
(f)	International electronic funds transfer includes non-US dollar ACH and clearing volume.
(g)	Wholesale cards issued include domestic commercial card, stored value card, prepaid card and government electronic benefit card products.

Page 23

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,315		$	1,231		$	1,362		$	1,538		$	1,573			7	%		(16	)%	$	2,546		$	3,104			(18	)%
All other income		253			69			(170	)		43			130			267			95			322			189			70
Noninterest revenue		1,568			1,300			1,192			1,581			1,703			21			(8	)		2,868			3,293			(13	)
Net interest income		414			403			466			380			361			3			15			817			672			22
TOTAL NET REVENUE		1,982			1,703			1,658			1,961			2,064			16			(4	)		3,685			3,965			(7	)
Provision for credit losses		59			33			32			20			17			79			247			92			33			179
NONINTEREST EXPENSE
Compensation expense		810			800			689			816			886			1			(9	)		1,610			1,711			(6	)
Noncompensation expense		525			479			504			525			494			10			6			1,004			971			3
Amortization of intangibles		19			19			20			21			20			—			(5	)		38			41			(7	)
TOTAL NONINTEREST EXPENSE		1,354			1,298			1,213			1,362			1,400			4			(3	)		2,652			2,723			(3	)
Income before income tax expense		569			372			413			579			647			53			(12	)		941			1,209			(22	)
Income tax expense		217			148			158			228			252			47			(14	)		365			458			(20	)
NET INCOME	$	352		$	224		$	255		$	351		$	395			57			(11	)	$	576		$	751			(23	)
REVENUE BY CLIENT SEGMENT
Private Bank (a)	$	640		$	583		$	630		$	631		$	708			10			(10	)	$	1,223		$	1,304			(6	)
Institutional		487			460			327			486			472			6			3			947			962			(2	)
Retail		411			253			265			399			490			62			(16	)		664			956			(31	)
Private Wealth Management (a)		334			312			330			352			356			7			(6	)		646			705			(8	)
Bear Stearns Private Client Services		110			95			106			93			38			16			189			205			38			439
Total net revenue	$	1,982		$	1,703		$	1,658		$	1,961		$	2,064			16			(4	)	$	3,685		$	3,965			(7	)
FINANCIAL RATIOS
ROE		20	%		13	%		14	%		25	%		31	%								17	%		30	%
Overhead ratio		68			76			73			69			68									72			69
Pretax margin ratio (b)		29			22			25			30			31									26			30
BUSINESS METRICS
Number of:
Client advisors (c)		1,785			1,833			1,795			1,769			1,801			(3	)		(1	)		1,785			1,801			(1	)
Retirement planning services participants		1,595,000			1,628,000			1,531,000			1,492,000			1,505,000			(2	)		6			1,595,000			1,505,000			6
Bear Stearns brokers		362			359			324			323			326			1			11			362			326			11
% of customer assets in 4 & 5 Star Funds (d)		45	%		42	%		42	%		39	%		40	%		7			13			45	%		40	%		13
% of AUM in 1st and 2nd quartiles: (e)
1 year		62	%		54	%		54	%		49	%		51	%		15			22			62	%		51	%		22
3 years		69	%		62	%		65	%		67	%		70	%		11			(1	)		69	%		70	%		(1	)
5 years		80	%		66	%		76	%		77	%		76	%		21			5			80	%		76	%		5
SELECTED BALANCE SHEET DATA (Period-end)
Loans	$	35,474		$	33,944		$	36,188		$	39,720		$	41,536			5			(15	)	$	35,474		$	41,536			(15	)
Equity		7,000			7,000			7,000			7,000			5,200			—			35			7,000			5,200			35
SELECTED BALANCE SHEET DATA (Average)
Total assets	$	59,334		$	58,227		$	65,648		$	71,189		$	65,015			2			(9	)	$	58,783		$	62,651			(6	)
Loans		34,292			34,585			36,851			39,750			39,264			(1	)		(13	)		34,438			37,946			(9	)
Deposits		75,355			81,749			76,911			65,621			69,975			(8	)		8			78,534			69,079			14
Equity		7,000			7,000			7,000			5,500			5,066			—			38			7,000			5,033			39
Headcount		14,840			15,109			15,339			15,493			15,840			(2	)		(6	)		14,840			15,840			(6	)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (recoveries)	$	46		$	19		$	12		$	(1	)	$	2			142		NM			$	65		$	—		NM
Nonperforming loans		313			301			147			121			68			4			360			313			68			360
Allowance for loan losses		226			215			191			170			147			5			54			226			147			54
Allowance for lending-related commitments		4			4			5			5			5			—			(20	)		4			5			(20	)
Net charge-off (recovery) rate		0.54	%		0.22	%		0.13	%		(0.01	)%		0.02	%								0.38	%		—	%
Allowance for loan losses to period-end loans		0.64			0.63			0.53			0.43			0.35									0.64			0.35
Allowance for loan losses to average loans		0.66			0.62			0.52			0.43			0.37									0.66			0.39
Allowance for loan losses to nonperforming loans		72			71			130			140			216									72			216
Nonperforming loans to period-end loans		0.88			0.89			0.41			0.30			0.16									0.88			0.16
Nonperforming loans to average loans		0.91			0.87			0.40			0.30			0.17									0.91			0.18

(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)	Prior periods revised to conform with current methodology.
(d)	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.
(e)	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.

Page 24

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

											Jun 30, 2009
											Change
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
	2009		2009		2008		2008		2008		2009			2008
Assets by asset class
Liquidity	$	617	$	625	$	613	$	524	$	478		(1	)%		29	%
Fixed income		194		180		180		189		199		8			(2	)
Equities & balanced		264		215		240		308		378		23			(30	)
Alternatives		96		95		100		132		130		1			(26	)
TOTAL ASSETS UNDER MANAGEMENT		1,171		1,115		1,133		1,153		1,185		5			(1	)
Custody / brokerage / administration / deposits		372		349		363		409		426		7			(13	)
TOTAL ASSETS UNDER SUPERVISION	$	1,543	$	1,464	$	1,496	$	1,562	$	1,611		5			(4	)
Assets by client segment
Institutional	$	697	$	668	$	681	$	653	$	645		4			8
Private Bank (a)		179		181		181		194		181		(1	)		(1	)
Retail		216		184		194		223		276		17			(22	)
Private Wealth Management (a)		67		68		71		75		75		(1	)		(11	)
Bear Stearns Private Client Services		12		14		6		8		8		(14	)		50
TOTAL ASSETS UNDER MANAGEMENT	$	1,171	$	1,115	$	1,133	$	1,153	$	1,185		5			(1	)
Institutional	$	697	$	669	$	682	$	653	$	646		4			8
Private Bank (a)		390		375		378		417		415		4			(6	)
Retail		289		250		262		303		357		16			(19	)
Private Wealth Management (a)		123		120		124		134		133		2			(8	)
Bear Stearns Private Client Services		44		50		50		55		60		(12	)		(27	)
TOTAL ASSETS UNDER SUPERVISION	$	1,543	$	1,464	$	1,496	$	1,562	$	1,611		5			(4	)
Assets by geographic region
U.S. / Canada	$	814	$	789	$	798	$	785	$	771		3			6
International		357		326		335		368		414		10			(14	)
TOTAL ASSETS UNDER MANAGEMENT	$	1,171	$	1,115	$	1,133	$	1,153	$	1,185		5			(1	)
U.S. / Canada	$	1,103	$	1,066	$	1,084	$	1,100	$	1,093		3			1
International		440		398		412		462		518		11			(15	)
TOTAL ASSETS UNDER SUPERVISION	$	1,543	$	1,464	$	1,496	$	1,562	$	1,611		5			(4	)
Mutual fund assets by asset class
Liquidity	$	569	$	570	$	553	$	470	$	416		—			37
Fixed income		48		42		41		44		47		14			2
Equities		111		85		92		127		171		31			(35	)
Alternatives		9		8		7		7		8		13			13
TOTAL MUTUAL FUND ASSETS	$	737	$	705	$	693	$	648	$	642		5			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.

Page 25

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

	QUARTERLY TRENDS															YEAR-TO-DATE
	2Q09			1Q09			4Q08			3Q08			2Q08			2009			2008
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,115		$	1,133		$	1,153		$	1,185		$	1,187		$	1,133		$	1,193
Net asset flows:
Liquidity		(7	)		19			86			55			1			12			69
Fixed income		8			1			(7	)		(4	)		(1	)		9			(1	)
Equities, balanced & alternative		2			(5	)		(18	)		(5	)		(3	)		(3	)		(24	)
Market / performance / other impacts (a)		53			(33	)		(81	)		(78	)		1			20			(52	)
TOTAL ASSETS UNDER MANAGEMENT	$	1,171		$	1,115		$	1,133		$	1,153		$	1,185		$	1,171		$	1,185
Assets under supervision rollforward
Beginning balance	$	1,464		$	1,496		$	1,562		$	1,611		$	1,569		$	1,496		$	1,572
Net asset flows		(9	)		25			73			61			(5	)		16			47
Market / performance / other impacts (a)		88			(57	)		(139	)		(110	)		47			31			(8	)
TOTAL ASSETS UNDER SUPERVISION	$	1,543		$	1,464		$	1,496		$	1,562		$	1,611		$	1,543		$	1,611

(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 26

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
INCOME STATEMENT
REVENUE
Principal transactions	$	1,243		$	(1,493	)	$	(1,620	)	$	(1,876	)	$	(97	)	NM		%	NM		%	$	(250	)	$	(92	)		(172	)%
Securities gains		366			214			499			440			656			71			(44	)		580			698			(17	)
All other income (a)		(209	)		(19	)		685			(275	)		(378	)	NM				45			(228	)		1,263		NM
Noninterest revenue		1,400			(1,298	)		(436	)		(1,711	)		181		NM				NM			102			1,869			(95	)
Net interest income (expense)		865			989			868			(125	)		(47	)		(13	)	NM				1,854			(396	)	NM
TOTAL NET REVENUE		2,265			(309	)		432			(1,836	)		134		NM			NM				1,956			1,473			33
Provision for credit losses (b)		9			—			(33	)		1,977			37		NM				(76	)		9			37			(76	)
NONINTEREST EXPENSE
Compensation expense		655			641			438			652			611			2			7			1,296			1,250			4
Noncompensation expense (c)		1,319			345			673			563			689			282			91			1,664			605			175
Merger costs		143			205			181			96			155			(30	)		(8	)		348			155			125
Subtotal		2,117			1,191			1,292			1,311			1,455			78			45			3,308			2,010			65
Net expense allocated to other businesses		(1,253	)		(1,279	)		(1,364	)		(1,150	)		(1,070	)		2			(17	)		(2,532	)		(2,127	)		(19	)
TOTAL NONINTEREST EXPENSE		864			(88	)		(72	)		161			385		NM				124			776			(117	)	NM
Income (loss) before income tax expense and extraordinary gain		1,392			(221	)		537			(3,974	)		(288	)	NM			NM				1,171			1,553			(25	)
Income tax expense (benefit)		584			41			317			(1,613	)		31		NM			NM				625			761			(18	)
Income (loss) before extraordinary gain		808			(262	)		220			(2,361	)		(319	)	NM			NM				546			792			(31	)
Extraordinary gain (d)		—			—			1,325			581			—			—			—			—			—			—
NET INCOME (LOSS)	$	808		$	(262	)	$	1,545		$	(1,780	)	$	(319	)	NM			NM			$	546		$	792			(31	)
MEMO:
TOTAL NET REVENUE
Private equity	$	(1	)	$	(449	)	$	(1,107	)	$	(216	)	$	197			100		NM			$	(450	)	$	360		NM
Corporate		2,266			140			1,539			(1,620	)		(63	)	NM			NM				2,406			1,113			116
TOTAL NET REVENUE	$	2,265		$	(309	)	$	432		$	(1,836	)	$	134		NM			NM			$	1,956		$	1,473			33
NET INCOME (LOSS)
Private equity	$	(27	)	$	(280	)	$	(682	)	$	(164	)	$	99			90		NM			$	(307	)	$	156		NM
Corporate		993			252			1,163			(881	)		122			294		NM				1,245			1,176			6
Merger-related items (e)		(158	)		(234	)		1,064			(735	)		(540	)		32			71			(392	)		(540	)		27
TOTAL NET INCOME (LOSS)	$	808		$	(262	)	$	1,545		$	(1,780	)	$	(319	)	NM			NM			$	546		$	792			(31	)
Headcount		21,522			22,339			23,376			24,967			22,317			(4	)		(4	)		21,522			22,317			(4	)

(a)	Included the following significant items: a gain of $1.0 billion from the dissolution of the Chase Paymentech Solutions joint venture in the fourth quarter of 2008, a charge of $375 million for the repurchase of auction rate securities in the third quarter of 2008, $423 million representing the Firm’s share of Bear Stearns’ losses from April 8 to May 30, 2008, in the second quarter of 2008, and proceeds of $1.5 billion from the sale of Visa shares in its initial public offering in the first quarter of 2008.
(b)	The fourth and third quarters of 2008 included accounting conformity loan loss reserve provisions related to the acquisition of Washington Mutual Bank’s banking operations. An analysis of loans acquired in the transaction was substantially completed during the fourth quarter. This resulted in an increase in the credit-impaired loan balances, a corresponding reduction in the non-credit-impaired portfolio and a reduction in the estimate of incurred losses related to the non-credit-impaired portfolio requiring a reduction in the accounting conformity provision for these loans. Also, the fourth quarter of 2008 includes a provision for credit losses related to the transfer of higher quality credit card loans from the legacy Chase portfolio to a securitization trust previously established by Washington Mutual.
(c)	Second quarter 2009 includes a $675 million FDIC special assessment.
(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)	Included accounting conformity loan loss reserve provisions, extraordinary gains and merger costs related to the Washington Mutual transaction, as well as items related to the Bear Stearns merger, including Bear Stearns’ losses, merger costs, Bear Stearns asset management liquidation costs and Bear Stearns Private Client Services broker retention expense.

Page 27

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
SUPPLEMENTAL
TREASURY
Securities gains (a) (b)	$	374		$	214		$	512		$	442		$	656			75	%		(43	)%	$	588		$	698			(16	)%
Investment securities portfolio (average) (b)		336,263			265,785			159,209			108,728			100,481			27			235			301,219			91,821			228
Investment securities portfolio (ending) (b)		326,414			316,498			192,564			119,085			106,604			3			206			326,414			106,604			206
Mortgage loans (average)		7,228			7,210			7,277			7,221			7,004			—			3			7,219			6,867			5
Mortgage loans (ending)		7,368			7,162			7,292			7,297			7,150			3			3			7,368			7,150			3
PRIVATE EQUITY
Private equity gains (losses)
Direct investments
Realized gains	$	25		$	15		$	24		$	40		$	540			67			(95	)	$	40		$	1,653			(98	)
Unrealized gains (losses) (c)		16			(409	)		(1,000	)		(273	)		(326	)	NM			NM				(393	)		(1,207	)		67
Total direct investments		41			(394	)		(976	)		(233	)		214		NM				(81	)		(353	)		446		NM
Third-party fund investments		(61	)		(68	)		(121	)		27			6			10		NM				(129	)		(37	)		(249	)
Total private equity gains (losses) (d)	$	(20	)	$	(462	)	$	(1,097	)	$	(206	)	$	220			96		NM			$	(482	)	$	409		NM
Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	431		$	305		$	483		$	600		$	615			41			(30	)
Cost		778			778			792			705			665			—			17
Quoted public value		477			346			543			657			732			38			(35	)
Privately-held direct securities
Carrying value		4,709			4,708			5,564			6,038			6,270			—			(25	)
Cost		5,627			5,519			6,296			6,058			6,113			2			(8	)
Third-party fund investments (e)
Carrying value		1,420			1,537			805			889			838			(8	)		69
Cost		2,055			2,082			1,169			1,121			1,094			(1	)		88
Total private equity portfolio — Carrying value	$	6,560		$	6,550		$	6,852		$	7,527		$	7,723			—			(15	)
Total private equity portfolio — Cost	$	8,460		$	8,379		$	8,257		$	7,884		$	7,872			1			7

(a)	Included a $668 million gain on the sale of MasterCard shares in the second quarter of 2008. All periods reflect repositioning of the Corporate investment securities portfolio, and exclude gains/losses on securities used to manage risk associated with MSRs.
(b)	Beginning in second quarter 2009, balances reflect Treasury and Chief Investment Office securities. Prior periods have been revised to conform with this change.
(c)	Unrealized gains (losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.
(d)	Included in principal transactions revenue in the Consolidated Statements of Income.
(e)	Unfunded commitments to third-party private equity funds were $1.5 billion, $1.5 billion, $1.4 billion, $931 million, and $861 million at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively.

Page 28

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

											Jun 30, 2009
											Change
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
	2009		2009		2008		2008		2008		2009			2008
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	172,204	$	176,282	$	186,776	$	202,170	$	137,236		(2	)%		25	%
Loans — Non-U.S.		59,421		66,002		75,268		86,275		92,123		(10	)		(35	)
TOTAL WHOLESALE LOANS — REPORTED (b)		231,625		242,284		262,044		288,445		229,359		(4	)		1
CONSUMER (c)
Home loan portfolio — excluding purchased credit-impaired loans:
Home equity		108,229		111,781		114,335		116,804		95,129		(3	)		14
Prime mortgage		68,878		71,731		72,266		70,243		46,221		(4	)		49
Subprime mortgage		13,825		14,594		15,330		18,162		14,792		(5	)		(7	)
Option ARMs		9,034		8,940		9,018		18,989		—		1		NM
Total home loan portfolio — excluding purchased credit-impaired loans		199,966		207,046		210,949		224,198		156,142		(3	)		28
Home loan portfolio — purchased credit-impaired loans: (d)
Home equity		27,729		28,366		28,555		26,507		—		(2	)	NM
Prime mortgage		20,807		21,398		21,855		24,672		—		(3	)	NM
Subprime mortgage		6,341		6,565		6,760		3,863		—		(3	)	NM
Option ARMs		30,529		31,243		31,643		22,653		—		(2	)	NM
Total home loan portfolio — purchased credit-impaired loans		85,406		87,572		88,813		77,695		—		(2	)	NM
Other consumer:
Auto		42,887		43,065		42,603		43,306		44,867		—			(4	)
Credit card — reported:
Credit card — reported excluding loans consolidated from the Washington Mutual Master Trust		80,722		90,911		104,746		92,881		76,278		(11	)		6
Credit card — reported loans consolidated from the Washington Mutual Master Trust (e)		5,014		—		—		—		—	NM			NM
Total credit card — reported		85,736		90,911		104,746		92,881		76,278		(6	)		12
Other loans		33,041		33,700		33,715		33,252		29,187		(2	)		13
Loans held-for-sale (f)		1,940		3,665		2,028		1,604		2,196		(47	)		(12	)
TOTAL CONSUMER LOANS — REPORTED		448,976		465,959		482,854		472,936		308,670		(4	)		45
TOTAL LOANS — REPORTED		680,601		708,243		744,898		761,381		538,029		(4	)		26
Credit card — securitized		85,790		85,220		85,571		93,664		79,120		1			8
TOTAL LOANS — MANAGED		766,391		793,463		830,469		855,045		617,149		(3	)		24
Derivative receivables		97,491		131,247		162,626		118,648		122,389		(26	)		(20	)
Receivables from customers (g)		12,977		14,504		16,141		25,422		26,572		(11	)		(51	)
Interests in purchased receivables		2,972		—		—		—		—	NM			NM
TOTAL CREDIT-RELATED ASSETS		879,831		939,214		1,009,236		999,115		766,110		(6	)		15
Wholesale lending-related commitments		343,991		363,013		379,871		407,823		430,028		(5	)		(20	)
TOTAL	$	1,223,822	$	1,302,227	$	1,389,107	$	1,406,938	$	1,196,138		(6	)		2
Memo: Total by category
Total wholesale exposure (h)	$	689,056	$	751,048	$	820,682	$	840,338	$	808,348		(8	)		(15	)
Total consumer managed loans (i)		534,766		551,179		568,425		566,600		387,790		(3	)		38
Total	$	1,223,822	$	1,302,227	$	1,389,107	$	1,406,938	$	1,196,138		(6	)		2
Risk profile of wholesale credit exposure:
Investment-grade (j)	$	491,168	$	546,968	$	605,210	$	620,524	$	595,043		(10	)		(17	)
Noninvestment-grade: (j)
Noncriticized		141,408		147,891		159,379		161,503		154,218		(4	)		(8	)
Criticized performing		26,453		25,320		22,568		14,491		11,611		4			128
Criticized nonperforming		6,533		4,615		3,429		1,418		899		42		NM
Total noninvestment-grade		174,394		177,826		185,376		177,412		166,728		(2	)		5
Loans held-for-sale & loans at fair value		7,545		11,750		13,955		16,980		20,005		(36	)		(62	)
Receivables from customers (g)		12,977		14,504		16,141		25,422		26,572		(11	)		(51	)
Interests in purchased receivables		2,972		—		—		—		—	NM			NM
Total wholesale exposure	$	689,056	$	751,048	$	820,682	$	840,338	$	808,348		(8	)		(15	)

(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 accounted for under SOP 03-3 represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. Under SOP 03-3, these loans were 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. As of September 30, 2008, an analysis of the acquired portfolio was conducted in order to preliminarily identify loans meeting the SOP 03-3 impairment criteria. This analysis was completed during the fourth quarter of 2008, resulting in the reclassification of $12.4 billion of acquired loans from the non-credit-impaired loan balances into the credit-impaired loan balances.
(e)	Represents loans from the Washington Mutual Master Trust, which were consolidated onto the Firm’s balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of June 30, 2009.
(f)	Included loans for prime mortgage of $589 million, $825 million, $206 million, $132 million, and $964 million at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and other (largely student loans) of $1.4 billion, $2.8 billion, $1.8 billion, $1.5 billion, and $1.2 billion at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively.
(g)	Represents margin loans to prime and retail brokerage customers, which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.
(h)	Primarily represents total wholesale loans, derivative receivables, wholesale lending-related commitments and receivables from customers.
(i)	Represents total consumer loans plus credit card securitizations, and excludes consumer lending-related commitments.
(j)	Excludes loans held-for-sale and loans at fair value.
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 29

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

																Jun 30, 2009
																Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2009			2009			2008			2008			2008			2009			2008
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS (a)
Loans — U.S.	$	5,156		$	3,040		$	2,123		$	1,185		$	806			70	%	NM		%
Loans — Non-U.S.		806			622			259			220			64			30		NM
TOTAL WHOLESALE LOANS		5,962			3,662			2,382			1,405			870			63		NM
CONSUMER LOANS (b)
Home loan portfolio (includes RFS and Corporate/Private Equity):
Home equity		1,487			1,591			1,394			1,142			1,008			(7	)		48
Prime mortgage		3,501			2,712			1,895			1,496			1,232			29			184
Subprime mortgage		2,773			2,545			2,690			2,384			1,715			9			62
Option ARMs		182			97			10			—			—			88		NM
Total home loan portfolio		7,943			6,945			5,989			5,022			3,955			14			101
Auto loans		154			165			148			119			102			(7	)		51
Credit card — reported		4			4			4			5			6			—			(33	)
Other loans		722			625			430			382			340			16			112
TOTAL CONSUMER LOANS (c)(d)		8,823			7,739			6,571			5,528			4,403			14			100
TOTAL NONPERFORMING LOANS REPORTED		14,785			11,401			8,953			6,933			5,273			30			180
Derivative receivables		704			1,010			1,079			45			80			(30	)	NM
Assets acquired in loan satisfactions		2,028			2,243			2,682			2,542			880			(10	)		130
TOTAL NONPERFORMING ASSETS	$	17,517		$	14,654		$	12,714		$	9,520		$	6,233			20			181
TOTAL NONPERFORMING LOANS TO TOTAL LOANS REPORTED		2.17	%		1.61	%		1.20	%		0.91	%		0.98	%
NONPERFORMING ASSETS BY LOB
Investment Bank	$	4,534		$	3,041		$	2,501		$	583		$	490			49		NM
Retail Financial Services (d)		10,351			9,582			8,841			7,878			5,153			8			101
Card Services		4			4			4			5			6			—			(33	)
Commercial Banking		2,255			1,651			1,142			923			510			37			342
Treasury & Securities Services		14			30			30			—			—			(53	)	NM
Asset Management		326			319			172			121			68			2			379
Corporate/Private Equity (e)		33			27			24			10			6			22			450
TOTAL	$	17,517		$	14,654		$	12,714		$	9,520		$	6,233			20			181

(a)	Included nonperforming loans held-for-sale and loans at fair value of $133 million, $57 million, $32 million, $32 million, and $51 million at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. Excluded purchased held-for-sale wholesale loans.
(b)	There were no nonperforming loans held-for-sale at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, or June 30, 2008.
(c)	Excludes nonperforming loans and assets related to: (1) loans eligible for repurchase, as well as loans repurchased from GNMA pools that are insured by U.S. government agencies, of $4.7 billion, $4.6 billion, $3.3 billion, $1.8 billion, and $1.9 billion at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively; and (2) student 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 $473 million, $433 million, $437 million, $405 million, and $394 million at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.
(d)	Excludes home lending 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. Also excludes loans held-for-sale and loans at fair value.
(e)	Predominantly relates to held-for-investment prime mortgage.

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
GROSS CHARGE-OFFS
Wholesale loans	$	697		$	206		$	238		$	71		$	82			238	%	NM		%	$	903		$	212			326	%
Consumer (includes RFS and Corporate/Private Equity)		2,718			2,244			1,752			1,375			1,079			21			152			4,962			1,959			153
Credit card — reported		2,883			2,189			1,559			1,245			1,209			32			138			5,072			2,353			116
Total loans — reported		6,298			4,639			3,549			2,691			2,370			36			166			10,937			4,524			142
Credit card — securitized		1,776			1,579			1,351			985			949			12			87			3,355			1,740			93
Total loans — managed		8,074			6,218			4,900			3,676			3,319			30			143			14,292			6,264			128
RECOVERIES
Wholesale loans		18			15			21			19			41			20			(56	)		33			79			(58	)
Consumer (includes RFS and Corporate/Private Equity)		67			68			51			49			54			(1	)		24			135			109			24
Credit card — reported		194			160			162			139			145			21			34			354			300			18
Total loans — reported		279			243			234			207			240			15			16			522			488			7
Credit card — securitized		112			115			123			112			119			(3	)		(6	)		227			229			(1	)
Total loans — managed		391			358			357			319			359			9			9			749			717			4
NET CHARGE-OFFS
Wholesale loans		679			191			217			52			41			255		NM				870			133		NM
Consumer (includes RFS and Corporate/Private Equity)		2,651			2,176			1,701			1,326			1,025			22			159			4,827			1,850			161
Credit card — reported		2,689			2,029			1,397			1,106			1,064			33			153			4,718			2,053			130
Total loans — reported		6,019			4,396			3,315			2,484			2,130			37			183			10,415			4,036			158
Credit card — securitized		1,664			1,464			1,228			873			830			14			100			3,128			1,511			107
Total loans — managed	$	7,683		$	5,860		$	4,543		$	3,357		$	2,960			31			160		$	13,543		$	5,547			144
NET CHARGE-OFF RATES
Wholesale loans (a)		1.19	%		0.32	%		0.33	%		0.10	%		0.08	%								0.75	%		0.13	%
Consumer excluding credit card (b)		2.90			2.36			1.80			2.29			1.81									2.63			1.66
Consumer excluding purchased credit-impaired loans (b)		3.80			3.09			2.35			2.29			1.81									3.44			1.66
Credit card — reported		12.03			8.42			5.63			5.56			5.66									10.15			5.32
Total loans — reported (a)(b)		3.52			2.51			1.80			1.91			1.67									3.01			1.60
Credit card — securitized		7.91			6.93			5.48			4.43			4.32									7.42			4.02
Total loans — managed (a)(b)		4.00			2.98			2.20			2.24			2.02									3.49			1.91
Memo: Credit card — managed		10.03			7.72			5.56			5.00			4.98									8.85			4.68

(a)

Average wholesale loans held-for-sale and loans at fair value were $9.7 billion, $13.3 billion, $16.7 billion, $18.0 billion, and $20.8 billion for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $11.5 billion and $20.5 billion for year-to-date 2009 and 2008, respectively. These amounts were excluded when calculating the net charge-off rates. Excluding average wholesale purchased credit-impaired loans of $210 million, $217 million, and $248 million for the quarters ended June 30, 2009, March 31, 2009, and December 31, 2008, respectively, and $213 million for year-to-date 2009 has no effect on the net charge-off rate.

(b)

Average consumer (excluding card) loans held-for-sale and loans at fair value were $2.8 billion, $3.1 billion, $1.8 billion, $1.5 billion, and $3.6 billion for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, and $2.9 billion and $4.0 billion for year-to-date 2009 and 2008, respectively. These amounts were excluded when calculating the net charge-off rates.

Page 31

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	27,381		$	23,164		$	19,052		$	13,246		$	11,746			18	%		133	%	$	23,164		$	9,234			151	%
Acquired allowance resulting from the Washington Mutual transaction		—			—			—			2,535			—			—			—			—			—			—
Net charge-offs		6,019			4,396			3,315			2,484			2,130			37			183			10,415			4,036			158
Provision for loan losses (a)		7,923			8,617			7,434			5,760			3,624			(8	)		119			16,540			8,043			106
Other (b)		(213	)		(4	)		(7	)		(5	)		6		NM			NM				(217	)		5		NM
Ending balance	$	29,072		$	27,381		$	23,164		$	19,052		$	13,246			6			119		$	29,072		$	13,246			119
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	638		$	659		$	713		$	686		$	855			(3	)		(25	)	$	659		$	850			(22	)
Provision for lending-related commitments		108			(21	)		(121	)		27			(169	)	NM			NM				87			(164	)	NM
Other		—			—			67			—			—			—			—			—			—			—
Ending balance	$	746		$	638		$	659		$	713		$	686			17			9		$	746		$	686			9
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset specific	$	2,108		$	1,213		$	712		$	253		$	174			74		NM
Formula — based		6,284			6,691			5,833			5,326			4,295			(6	)		46
Total wholesale		8,392			7,904			6,545			5,579			4,469			6			88
Consumer
Asset specific		132			106			74			70			61			25			116
Formula — based		20,548			19,371			16,545			13,403			8,716			6			136
Total consumer		20,680			19,477			16,619			13,473			8,777			6			136
Total allowance for loan losses		29,072			27,381			23,164			19,052			13,246			6			119
Allowance for lending-related commitments		746			638			659			713			686			17			9
Total allowance for credit losses	$	29,818		$	28,019		$	23,823		$	19,765		$	13,932			6			114
Wholesale allowance for loan losses to total wholesale loans (c)		3.75	%		3.43	%		2.64	%		2.06	%		2.13	%
Consumer allowance for loan losses to total consumer loans (d)		4.63			4.21			3.46			2.86			2.86
Consumer allowance for loan losses to total consumer loans excluding purchased credit-impaired loans and loans from the Washington Mutual Trust (d) (e) (f)		5.80			5.20			4.24			3.42			2.86
Allowance for loan losses to ending loans (c) (d)		4.33			3.95			3.18			2.56			2.57
Allowance for loan losses to ending loans excluding purchased credit-impaired loans and loans from the Washington Mutual Master Trust (c) (d) (e) (f)		5.01			4.53			3.62			2.87			2.57
Allowance for loan losses to total nonperforming loans (g) (h)		198			241			260			287			254
ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	5,101		$	4,682		$	3,444		$	2,654		$	2,429			9			110
Retail Financial Services		11,832			10,619			8,918			7,517			5,062			11			134
Card Services		8,839			8,849			7,692			5,946			3,705			—			139
Commercial Banking		3,034			2,945			2,826			2,698			1,843			3			65
Treasury & Securities Services		15			51			74			47			40			(71	)		(63	)
Asset Management		226			215			191			170			147			5			54
Corporate/Private Equity		25			20			19			20			20			25			25
Total	$	29,072		$	27,381		$	23,164		$	19,052		$	13,246			6			119

(a)	Includes accounting conformity loan loss reserve provision related to the acquisition of Washington Mutual Bank’s banking operations.
(b)	Activity for the quarter and six months ended June 30, 2009, predominantly included a reclassification related to the issuance and retention of securities from the Chase Issuance Trust.
(c)	Wholesale loans held-for-sale and loans at fair value were $7.6 billion, $11.7 billion, $14.0 billion, $17.0 billion, and $20.0 billion at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. These amounts were excluded when calculating the allowance coverage ratios. Excluding wholesale purchased credit-impaired loans of $209 million, $210 million, $224 million, and $272 million at June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, has no effect on the wholesale allowance coverage ratios.
(d)	Consumer loans held-for-sale were $1.9 billion, $3.7 billion, $2.0 billion, $1.6 billion, and $2.2 billion at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(e)	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 incorporated management’s estimate, as of that date, of credit losses over the remaining life of the portfolio. No allowance for loan losses has been recorded for these loans as of June 30, 2009, March 31, 2009, December 31, 2008, or September 30, 2008.
(f)	Represents loans from the Washington Mutual Master Trust, which were consolidated onto the Firm’s balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of June 30, 2009.
(g)	Nonperforming loans held-for-sale and loans at fair value were $133 million, $57 million, $32 million, $32 million, and $51 million at June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(h)	Excludes consumer 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.

Page 32

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	815		$	1,274		$	869		$	238		$	538			(36	)%		51	%	$	2,089		$	1,109			88	%
Commercial Banking		280			263			180			105			77			6			264			543			220			147
Treasury & Securities Services		(20	)		(20	)		27			7			7			—		NM				(40	)		18		NM
Asset Management		59			34			32			21			17			74			247			93			34			174
Corporate/Private Equity (a) (b)		7			—			76			564			36		NM				(81	)		7			36			(81	)
Total wholesale		1,141			1,551			1,184			935			675			(26	)		69			2,692			1,417			90
Retail Financial Services		3,841			3,877			3,578			2,056			1,584			(1	)		142			7,718			4,272			81
Card Services — reported		2,939			3,189			2,747			1,356			1,364			(8	)		115			6,128			2,353			160
Corporate/Private Equity (a)		2			—			(75	)		1,413			1		NM				100			2			1			100
Total consumer		6,782			7,066			6,250			4,825			2,949			(4	)		130			13,848			6,626			109
Total provision for loan losses	$	7,923		$	8,617		$	7,434		$	5,760		$	3,624			(8	)		119		$	16,540		$	8,043			106
LENDING-RELATED COMMITMENTS
Investment Bank	$	56		$	(64	)	$	(104	)	$	(4	)	$	(140	)	NM			NM			$	(8	)	$	(93	)		91
Commercial Banking		32			30			10			21			(30	)		7		NM				62			(72	)	NM
Treasury & Securities Services		15			14			18			11			—			7		NM				29			1		NM
Asset Management		—			(1	)		—			(1	)		—		NM				—			(1	)		(1	)		—
Corporate/Private Equity (a)		—			—			5			—			—			—			—			—			—			—
Total wholesale		103			(21	)		(71	)		27			(170	)	NM			NM				82			(165	)	NM
Retail Financial Services		5			—			(2	)		—			1		NM				400			5			1			400
Card Services — reported		—			—			—			—			—			—			—			—			—			—
Corporate/Private Equity (a)		—			—			(48	)		—			—			—			—			—			—			—
Total consumer		5			—			(50	)		—			1		NM				400			5			1			400
Total provision for lending-related commitments	$	108		$	(21	)	$	(121	)	$	27		$	(169	)	NM			NM			$	87		$	(164	)	NM
TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	871		$	1,210		$	765		$	234		$	398			(28	)		119		$	2,081		$	1,016			105
Commercial Banking		312			293			190			126			47			6		NM				605			148			309
Treasury & Securities Services		(5	)		(6	)		45			18			7			17		NM				(11	)		19		NM
Asset Management		59			33			32			20			17			79			247			92			33			179
Corporate/Private Equity (a) (b)		7			—			81			564			36		NM				(81	)		7			36			(81	)
Total wholesale		1,244			1,530			1,113			962			505			(19	)		146			2,774			1,252			122
Retail Financial Services		3,846			3,877			3,576			2,056			1,585			(1	)		143			7,723			4,273			81
Card Services — reported		2,939			3,189			2,747			1,356			1,364			(8	)		115			6,128			2,353			160
Corporate/Private Equity (a)		2			—			(123	)		1,413			1		NM				100			2			1			100
Total consumer		6,787			7,066			6,200			4,825			2,950			(4	)		130			13,853			6,627			109
Total provision for credit losses		8,031			8,596			7,313			5,787			3,455			(7	)		132			16,627			7,879			111
Credit card — securitized		1,664			1,464			1,228			873			830			14			100			3,128			1,511			107
Managed provision for credit losses	$	9,695		$	10,060		$	8,541		$	6,660		$	4,285			(4	)		126		$	19,755		$	9,390			110

(a)	Includes accounting conformity provisions related to the Washington Mutual transaction in the third quarter of 2008.
(b)	Includes provision expense related to loans acquired in the Bear Stearns transaction in the second quarter of 2008.

Page 33

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

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
AVERAGE IB TRADING VAR AND CREDIT PORTFOLIO VAR - 99% CONFIDENCE LEVEL
IB VaR by risk type:
Fixed income	$	249		$	218		$	276		$	183		$	155			14	%		61	%	$	234		$	137			71	%
Foreign exchange		26			40			55			20			26			(35	)		—			33			30			10
Equities		77			162			87			80			30			(52	)		157			119			31			284
Commodities and other		34			28			30			41			31			21			10			31			29			7
Diversification benefit to IB trading VaR (a)		(136	)		(159	)		(146	)		(104	)		(92	)		14			(48	)		(148	)		(91	)		(63	)
99% IB Trading VaR (b)		250			289			302			220			150			(13	)		67			269			136			98
Credit portfolio VaR (c)		133			182			165			47			35			(27	)		280			157			33			376
Diversification benefit to IB trading and credit portfolio VaR (a)		(116	)		(135	)		(140	)		(49	)		(36	)		14			(222	)		(125	)		(34	)		(268	)
99% Total IB trading and credit portfolio VaR	$	267		$	336		$	327		$	218		$	149			(21	)		79		$	301		$	135			123
AVERAGE IB TRADING VAR , CREDIT PORTFOLIO VAR AND OTHER VAR - 95% CONFIDENCE LEVEL (d)
IB VaR by risk type:
Fixed income	$	179		$	158		$	194		$	130						13					$	168
Foreign exchange		16			23			32			13						(30	)					19
Equities		50			97			47			46						(48	)					73
Commodities and other		22			20			21			24						10						21
Diversification benefit to IB trading VaR (a)		(97	)		(108	)		(103	)		(69	)					10						(101	)
95% IB Trading VaR (b)		170			190			191			144						(11	)					180
Credit portfolio VaR (c)		68			86			66			25						(21	)					77
Diversification benefit to IB trading and credit portfolio VaR (a)		(60	)		(63	)		(50	)		(22	)					5						(62	)
95% Total IB trading and credit portfolio VaR		178			213			207			147						(16	)					195
Consumer Lending VaR (e)		43			108			56			19						(60	)					75
Corporate Risk Management VaR (f)		111			121			76			22						(8	)					116
Diversification benefit to total other VaR (a)		(29	)		(61	)		(31	)		(10	)					52						(45	)
Total other VaR		125			168			101			31						(26	)					146
Diversification benefit to total IB and other VaR (a)		(89	)		(93	)		(56	)		(24	)					4						(91	)
Total IB and other VaR	$	214		$	288		$	252		$	154						(26	)				$	250

(a)	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 therefore usually less than the sum of the risks of the positions themselves.
(b)	IB Trading VaR includes predominantly all trading activities in IB; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. The 95% IB Trading VaR includes syndicated lending facilities that the Firm intends to distribute, and the credit spread sensitivities of certain mortgage products. The 99% IB Trading VaR includes the credit spread sensitivities of certain mortgage products but does not include syndicated lending facilities that the Firm intends to distribute. Both the 95% and 99% IB Trading VaR do not include the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm.
(c)	Includes VaR on derivative credit valuation adjustments (“CVA”), hedges of the CVA 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.
(d)	In the third quarter of 2008, the Firm revised the VaR measurement to create a more comprehensive view of its market risks by adding syndicated lending facilities that the Firm intends to distribute, and the credit spread sensitivities of certain mortgage products. In addition, certain actively managed positions utilized as part of the Firm’s risk management function within Corporate and in RFS’ mortgage banking businesses have been added to IB VaR to provide a Total IB and other VaR measure. Finally, the Firm moved from using a 99% confidence level to a 95% confidence level since the 95% level provides a more stable measure of the VaR for day-to-day risk management. This section presents the results of the Firm’s VaR measure under the revised measurement using a 95% confidence level. The Firm intends to only present the VaR at this confidence level once information for five quarters and two comparative year-to-date periods is available.
(e)	Consumer Lending VaR includes the Firm’s mortgage pipeline and warehouse, MSR and all related hedges.
(f)	Corporate Risk Management VaR includes certain actively managed positions utilized as part of the Firm’s risk management function within Corporate. It does not include certain nontrading activity such as Private Equity, principal investing (e.g., mezzanine financing, tax-oriented investments, etc.) and Corporate Treasury balance sheet and capital management positions as well as longer-term corporate investments.

Page 34

JPMORGAN CHASE & CO.
CAPITAL, INTANGIBLE ASSETS AND DEPOSITS
(in millions, except ratio data)

																Jun 30, 2009
																Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2009			2009			2008			2008			2008			2009			2008
CAPITAL RATIOS
Tier 1 capital	$	122,187	(a)	$	137,144		$	136,104		$	111,630		$	98,775			(11	)%		24	%
Total capital		167,821	(a)		183,109			184,720			159,175			145,012			(8	)		16
Risk-weighted assets		1,263,576	(a)		1,207,490			1,244,659			1,261,034			1,079,199			5			17
Adjusted average assets		1,969,352	(a)		1,923,186			1,966,895			1,555,297			1,536,439			2			28
Tier 1 capital ratio		9.7%	(a)		11.4	%		10.9	%		8.9	%		9.2	%
Total capital ratio		13.3	(a)		15.2			14.8			12.6			13.4
Tier 1 leverage ratio		6.2	(a)		7.1			6.9			7.2			6.4
INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	48,288		$	48,201		$	48,027		$	46,121		$	45,993			—			5
Mortgage servicing rights		14,600			10,634			9,403			17,048			11,617			37			26
Purchased credit card relationships		1,431			1,528			1,649			1,827			1,984			(6	)		(28	)
All other intangibles		3,651			3,821			3,932			3,653			3,675			(4	)		(1	)
Total intangibles	$	67,970		$	64,184		$	63,011		$	68,649		$	63,269			6			7
DEPOSITS (PERIOD-END)
U.S. offices:
Noninterest-bearing	$	192,247		$	197,027		$	210,899		$	193,253		$	125,606			(2	)		53
Interest-bearing		433,862			463,913			511,077			506,974			362,150			(6	)		20
Non-U.S. offices:
Noninterest-bearing		8,291			7,073			7,697			9,747			7,827			17			6
Interest-bearing		232,077			238,956			279,604			259,809			227,322			(3	)		2
Total deposits	$	866,477		$	906,969		$	1,009,277		$	969,783		$	722,905			(4	)		20

(a) Estimated.

Page 35

JPMORGAN CHASE & CO.
PER SHARE-RELATED INFORMATION
(in millions, except per share and ratio data)

	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q09 Change												2009 Change
	2Q09			1Q09			4Q08			3Q08			2Q08			1Q09			2Q08			2009			2008			2008
EARNINGS PER SHARE DATA (a)
Basic earnings per share:
Income (loss) before extraordinary gain	$	2,721		$	2,141		$	(623	)	$	(54	)	$	2,003			27	%		36	%	$	4,862		$	4,376			11	%
Extraordinary gain		—			—			1,325			581			—			—			—			—			—			—
Net income		2,721			2,141			702			527			2,003			27			36			4,862			4,376			11
Less: Preferred stock dividends		473			529			423			161			90			(11	)		426			1,002			90		NM
Less: Preferred stock accelerated amortization from TARP redemption		1,112			—			—			—			—		NM			NM				1,112			—
Net income applicable to common equity		1,136			1,612			279			366			1,913			(30	)		(41	)		2,748			4,286			(36	)
Less: Dividends and undistributed earnings allocated to participating securities		64			93			47			48			70			(31	)		(9	)		157			153			3
Net income applicable to common stockholders (c)	$	1,072		$	1,519		$	232		$	318		$	1,843			(29	)		(42	)	$	2,591		$	4,133			(37	)
Total weighted-average basic shares outstanding		3,811.5			3,755.7			3,737.5			3,444.6			3,426.2			1			11			3,783.6			3,411.1			11
Income (loss) before extraordinary gain per share (b)	$	0.28		$	0.40		$	(0.29	)	$	(0.08	)	$	0.54			(30	)		(48	)	$	0.68		$	1.21			(44	)
Extraordinary gain per share		—			—			0.35			0.17			—			—			—			—			—			—
Net income per share (b)	$	0.28		$	0.40		$	0.06		$	0.09		$	0.54			(30	)		(48	)	$	0.68		$	1.21			(44	)
Diluted earnings per share:
Net income applicable to common stockholders (c)	$	1,072		$	1,519		$	232		$	318		$	1,843			(29	)		(42	)	$	2,591		$	4,133			(37	)
Total weighted-average basic shares outstanding		3,811.5			3,755.7			3,737.5			3,444.6			3,426.2			1			11			3,783.6			3,411.1			11
Add: Employee stock options and SARs (d)		12.6			3.0			—	(g)		—	(g)		26.9			320			(53	)		7.8			27.1			(71	)
Total weighted-average diluted shares outstanding (e)		3,824.1			3,758.7			3,737.5			3,444.6			3,453.1			2			11			3,791.4			3,438.2			10
Income (loss) before extraordinary gain per share (b)	$	0.28		$	0.40		$	(0.29	)	$	(0.08	)	$	0.53			(30	)		(47	)	$	0.68		$	1.20			(43	)
Extraordinary gain per share		—			—			0.35			0.17			—			—			—			—			—			—
Net income per share (b)	$	0.28		$	0.40		$	0.06		$	0.09		$	0.53			(30	)		(47	)	$	0.68		$	1.20			(43	)
COMMON SHARES OUTSTANDING
Common shares outstanding — at period end (f)		3,924.1			3,757.7			3,732.8			3,726.9			3,435.7			4			14			3,924.1			3,435.7			14
Cash dividends declared per share	$	0.05		$	0.05		$	0.38		$	0.38		$	0.38			—			(87	)	$	0.10		$	0.76			(87	)
Book value per share		37.36			36.78			36.15			36.95			37.02			2			1			37.36			37.02			1
Dividend payout		14	%		15	%		532	%		399	%		71	%								15	%		63	%
SHARE PRICE
High	$	38.94		$	31.64		$	50.63		$	49.00		$	49.95			23			(22	)	$	38.94		$	49.95			(22	)
Low		25.29			14.96			19.69			29.24			33.96			69			(26	)		14.96			33.96			(56	)
Close		34.11			26.58			31.53			46.70			34.31			28			(1	)		34.11			34.31			(1	)
Market capitalization		133,852			99,881			117,695			174,048			117,881			34			14			133,852			117,881			14
STOCK REPURCHASE PROGRAM
Common shares repurchased		—			—			—			—			—			—			—			—			—			—

(a)	Effective January 1, 2009, the Firm implemented FSP EITF 03-6-1, which clarifies that unvested stock-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”) are participating securities and should be included in the EPS calculation using the two-class method. JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the FSP’s definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. EPS data for the prior periods were revised as required by the FSP.
(b)	The calculation of second quarter 2009 earnings per share includes a one-time, non-cash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital.
(c)	Net income applicable to common stockholders for diluted and basic EPS may differ under the two-class method as a result of adding common stock equivalents for options, SARs and warrants to dilutive shares outstanding, which alters the ratio used to allocate earnings to common stockholders and participating securities for purposes of calculating diluted EPS.
(d)	Options issued under employee benefit plans and, subsequent to October 28, 2008, the warrant issued under the U.S. Treasury’s Capital Purchase Program, to purchase an aggregate 315 million, 363 million, 299 million, 194 million, and 169 million shares of common stock were outstanding for the quarters ended June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, and June 30, 2008, respectively, but were not included in the computation of diluted EPS because the options were antidilutive.
(e)	Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury-stock method.
(f)	On June 5, 2009, the Firm issued $5.8 billion, or 163 million shares, of its common stock at $35.25 per share; and on September 30, 2008, the Firm issued $11.5 billion, or 284 million shares, of its common stock at $40.50 per share.
(g)	Common equivalent shares have been excluded from the computation of diluted loss per share for the fourth and third quarters of 2008, as the effect would have been antidilutive.

Page 36

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 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.

FASB: Financial Accounting Standards Board.

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

FSP EITF 03-6-1: FASB Staff Position No. EITF 03-6-1 “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities.”

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

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

Managed basis: A non-GAAP presentation of financial results that includes reclassifications related to credit card securitizations and 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 and, therefore, creates a repayment risk for the Firm. When the mark-to-market value is negative, JPMorgan Chase owes the counterparty. In this situation, the Firm does not have repayment risk.

Merger costs: Reflects costs associated with the Washington Mutual and Bear Stearns mergers in 2008.

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.”

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: A measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.

Page 37

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)

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

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

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 a business that processes bank card transactions for merchants.

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.
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, Retail, Private Banking, Private Wealth Management and Bear Stearns Private Client Services clients. Excludes assets managed by American Century Companies, Inc., in which the Firm has a 42% ownership interest as of June 30, 2009.

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

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

AM’s CLIENT SEGMENTS COMPRISE THE FOLLOWING:

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

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

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

4. Private 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 Private Client Services provides investment advice and wealth management services to high-net-worth individuals, money managers, and small corporations.

Page 39