Forward-looking statements

This

presentation

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

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2009

and

Quarterly

Reports

on

Form

10-Q

for

the

quarters

ended

March

31,

2010,

June

30,

2010,

and

September

30,

2010,

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.

Exhibit 99.1

February 15, 2011

F

I

R

M

O

V

E

R

V

I

E

W

Doug Braunstein, Chief Financial Officer

*

*

*

*

*

*

I.

JPMorgan Chase overview

Performance summary

LOB capital and performance targets

II.

Selected key investor topics

Global opportunities

Competitive advantages of cross-sell

Corporate net income

Loan growth and capital raised

Firmwide

capital topics

Outlook

III.

Summary

Agenda

1

$O/(U)

FY2009

FY2010

FY2009

Revenue (FTE)¹

$108,647

$104,842

($3,805)

Credit Costs¹

38,458

16,639

(21,819)

Expense

52,352

61,196

8,844

Reported Net Income

$11,728

$17,370

$5,642

Net Income Applicable to Common Stock

$8,774

$15,764

$6,990

Reported EPS

$2.26

$3.96

$1.70

ROE

2,3

7%

10%

ROTCE

2,3

11%

15%

Tier 1 Common

$105,284

$114,763

Net income -

2010

CB 12%

Card 12%

TSS 6%

IB 38%

RFS 15%

Corp/PE

7%

AM 10%

JPMorgan Chase overview

Performance summary

1

See note 1 on slide 38

2

Net income used to calculate the ratios for FY2009 excludes the one-time, non-cash negative adjustment of $1.1B resulting from the repayment of TARP preferred

capital

3

See note 4 on slide 38

Total = $17.4B

CB 9%

Card 26%

TSS 4%

IB 20%

RFS 32%

Corp/PE

2%

AM 7%

Total = $43.6B

$ in millions, excluding EPS

Pretax pre-provision profit -

2010

2

Asset Management

Treasury & Securities Services

JPMorgan Chase overview

Breadth of the client franchise

~5,000 issuer and ~16,000 investor clients,

including:

Serving clients in 120+ countries

89% of Fortune 100 companies

76% of Fortune 500 companies

120+ sovereign government clients

Total front office personnel of ~8,500 including

800+ in Global Research

~2,000 bankers¹ globally

Investment Bank

AM’s global footprint spans over 30 countries

with employees in more than 200 locations

1,100 Investment professionals

130,000 Private Banking clients

3,400 sales people, including 2,600 client

advisors and brokers

Serving ~25,000 corporations, financial

institutions, governments and municipalities in

over 140 countries and territories²

~10,600 TSS clients with >$50K revenue

WSS clients include 75% of the top 50 global

asset managers

TS clients include 70% of the Global Fortune

500 companies

~1,090 sales and relationship managers

Commercial Banking

1

Includes Public Finance and Global Corporate Bankers

2

Represents TSS clients that meet certain revenue thresholds. Includes clients of IB, CB and AM

3

Nearly 24,000 clients and nearly 35,000 real

estate investors and owners

Nearly 21,000 Middle Market clients

–

Middle Market supports 3,200+ small

business lending relationships with less

than $20mm in sales

More than 1,600 Mid-Corporate clients

1,960 employees calling on clients, including

1,061 bankers

JPMorgan Chase overview

Breadth of the client franchise

5,268 Chase branches in 23 states served

nearly 31mm US consumers and small

businesses in 4Q10

23mm Retail Banking households

served

18mm active online Retail Banking

customers

2.2mm Business Banking customers

8.5mm mortgage loans serviced

3.3mm Auto accounts serviced

Over 29,000 bankers

Retail Financial Services

More than 139mm cards in circulation

held by approximately 57mm customers

2.3mm small business accounts

Affluent and High Net Worth –

11.3mm

open accounts, 1.6mm new accounts

added in 2010

9.5mm Mass Affluent new accounts in

2010

Over 80 partner arrangements

Over 600 sales people

Card Services

4

JPMorgan Chase overview

Drivers of historical growth

5

1 2005 IB data represents heritage JPM only

2 Source: Dealogic

3 Source: SNL Corporation; all data is presented on a pro forma basis adjusted for acquisitions; excludes large branches (>$1B deposits) assumed to contain non-retail deposits

4 Source: Inside Mortgage Finance, 4Q05 and 4Q10 for 2005 and 2010, respectively 

5 GPCC stands for General Purpose Credit Card. Excludes WaMu and industry data based on estimates and excludes Commercial Card

6 Includes deposits and deposits swept to on-balance sheet liabilities

7 Source: Lipper for the U.S. and Taiwan; Morningstar for the U.K., Luxembourg, France and Hong Kong; and Nomura for Japan

8 iMoneyNet

2005

2010

2005-2010

CAGR

Investment Bank

1

$5,018

$8,952

12%

Retail Financial Services

6,245

13,892

17%

Card Services

10,367

11,366

2%

Commercial Banking

1,632

3,841

19%

Treasury & Securities Services

1,489

1,777

4%

Asset Management

1,804

2,872

10%

Corporate

1

(6,617)

946

NM

Pretax Pre-Provision

$19,938

$43,646

17%

Net Income

$8,483

$17,370

15%

JPMorgan Chase overview

Market share gains translate into significant earnings power

¹

IB

revenue

includes

annual

payment

from

TSS,

which

is

offset

in

Corporate

Pretax pre-provision profit ($ in billions)

6

JPMorgan Chase overview

LOB Capital

2010

2011

O/(U)

Investment Bank

$40.0

$40.0

$0.0

Retail Financial Services

28.0

28.0

0.0

Card Services

15.0

13.0

(2.0)

Commercial Banking

8.0

8.0

0.0

Treasury & Securities Svcs.

6.5

7.0

0.5

Asset Management

6.5

6.5

0.0

Total LOB Common Equity

$104.0

$102.5

($1.5)

New vs. current LOB equity ($ in billions)

Standalone capital levels, specific to

each LOB, incorporate Tier 1 Common

Basel III expectations

LOB equity process takes into account

the following factors:

Known balance sheet actions

Economic capital

RWA stress

Peer capital levels

IB capital increased in 2010,

incorporating anticipated RWA

changes

Card Services capital reduction reflects

portfolio run-off and improving risk

profile

7

Target Metric Performance

Performance

2008

2009

2010

Target

IB

ROE

(5%)

21%

17%

17% +/-

RFS

1

ROE

5%

0%

9%

30% +/-

ROE Exc. RE

35%

36%

27%

Card

ROE

5%

(15%)

14%

20% +/-

CB

ROE

20%

16%

26%

20% +

TSS

ROE

47%

25%

17%

25% +/-

AM

ROE

24%

20%

26%

35% +/-

Target Metrics

JPMorgan Chase overview

LOB performance targets

LOB performance targets

¹

Retail

Banking

ROE

of

45%,

41%

and

35%

in

2008,

2009

and

2010,

respectively;

Mortgage

Banking

and

Other

Consumer

Lending

ROE

of

23%,

28%

and

17%

in

2008,

2009

and

2010,

respectively

Note:

TSS

and

AM

pretax

margin

targets

remain

unchanged

at

35%

+/-

through

the

cycle

8

$6.6

$2.5

$2.1

$2.1

$1.1

$1.7

$1.3

IB

RFS

Card

CB

TSS

AM

Corporate/PE

2010 Net Income

Net Income at Performance Targets¹

JPM

JPMorgan Chase overview

LOB performance at targets

Net income by LOB ($ in billions)

$24+/-

$17.4

¹

Net income projections based on performance target and steady state assumptions; TSS and AM ROE targets of 25% and 35%, respectively, are based on additional assumptions including steady

state revenue and tax rate

²

Analyst

average

for

2013

is

composed

of

5

analysts

plus

I/B/E/S

LTG

projections

off

of

2012

for

3

analysts;

analyst

average

of

$24.1

billion

in

2013

Significant earnings upside if the Firm reaches performance targets

$25.6

$21.3

Max

= 2013 Analyst range²

Min

9

Selected key investor topics

11

Page

Agenda

10

US

60%

International

40%

US

78%

International

22%

Wholesale revenue by region —

2010

Firmwide

revenue by region —

2010

Total = $102.7B

Selected key investor topics

Our current global footprint

Total = $54.0B

1

Majority

of

the

revenue

in

“Other”

relates

to

activity

in

Canada

2

EMEA includes CIO gains in 2010

Developed EMEA ²

57%

Asia

27%

Emerging EMEA

7%

LatAm

8%

Other¹

0.4%

IB

TSS

46%

49%

AM

32%

%  International

’05-’10 CAGR

EMEA

Asia

LatAm

12%

15%

13%

Total = $21.7B

International wholesale revenue —

2010

2

11

Net income –

Non U.S.

($ in millions)

Revenue –

Non U.S.

($ in millions)

2005 –

2010 International wholesale revenue and net income

0

5,000

10,000

15,000

20,000

25,000

2005

2006

2007

2008

2009

2010

LatAm

EMEA

Asia

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2005

2006

2007

2008

2009

2010

LatAm

EMEA

Asia

Note: RFS and Card excluded from this analysis. EMEA includes CIO gains in 2010

CAGR:  19%

2005-2010

CAGR: 

14%

2005-2010

12

LatAm/Caribbean

Asia Pacific

EMEA

Key international wholesale metrics

2010 revenue of $1.8B

2005 –

2010 CAGR:  13%

Operate in 8 countries in the

region

2 new offices opened in

2010

Headcount

of

1,770

1

1,024 front office

160+

significant

clients

2

$1.7B in deposits

$16.5B in loans outstanding

$32B in AUM

2010 revenue of $14.1B

2005 –

2010 CAGR: 

13%

Operate in 33 countries in

the region

5 new offices opened in

2010

Headcount

of

16,312

1

6,192 front office

940+

significant

clients

2

$135.8B in deposits

$27.9B in loans outstanding

$281B in AUM

2010 revenue of $5.8B

2005 –

2010 CAGR: 

15%

Operate in 16 countries in

the region

6 new offices opened in

2010

Headcount

of

15,419

1

4,366 front office

450+

significant

clients

2

$49.1B in deposits

$20.6B in loans outstanding

$118B in AUM

1

Includes headcount in offshore service centers supporting line of business operations in each region.

Front office headcount defined as follows: 

IB -

Front office includes bankers and sales and trading employees excluding front office support

TSS -

Front office includes sales, product and client service workforce

AM -

Front office includes sales, sales support and all product/investors staff

2

Significant clients defined as a company with over $1mm in international revenue in the region (excludes private banking clients)

Note: RFS and Card excluded from this analysis. EMEA includes CIO gains in 2010

Loans

outstanding

are

based

on

client

domicile

and

exclude

loans

held-for-sale

13

Major competitive advantage –

cross-sell across wholesale

Significant revenue generated from the CB client base

24% of gross domestic IB fee revenue generated from CB clients in

2010

$375mm firmwide

revenue from FX/Derivatives for CB clients

$2B revenue opportunity within 5 years

40% firmwide

FX revenue generated via TSS offerings

Investment

Bank

40% TS Firmwide

revenue from CB client base

Global Corporate Bank effort

Additional ~$1B of annual pretax income impact expected in 5 years

Treasury &

Securities

Services

21% of IM liquidity AUM from TSS

12% of firmwide

PB client revenue generated from IB products

Asset

Management

14

Asset Management

Treasury & Securities Services

Business unlikely to exist without retail presence

~17mm transactions done by CB clients in 2010

at branches

$650-800mm of projected long-term CB pretax

income opportunity from build-out in the WaMu

footprint (West and Southeast)

Commercial Banking

Card Services

Retail branches are invaluable to the rest of our franchise

~25% of JPM IM US Retail AUM comes from

the branches

$31B of JPM investment product AUM

$1B+/-

incremental pretax income opportunity

from Chase Private Client Services

~50% of Private Banking clients use the branch

network

1.5 mm+/-

cards sold through branches in 2010

35% of Card Services cards sold through

branch network

1

>40% of revenue from new merchants is being

sourced through the retail branches

Use of core banking services (e.g., deposits and

change orders)

Check Cashing Agreements: cashing of

employee payroll checks without a fee across 

branch network

Chase At Work: better payroll management,

convenient banking & discounts to employees

1

Excludes retail partner accounts

15

Corporate Net income trend 2009 –

2011 ($ in billions)

2.8

1.9

~1.1

1.4

1.7

~0.1

(1.2)

(2.9)

2009

2010

2011

CIO/Treasury NII

CIO/Treasury Other¹

Corp. Other¹

Selected key investor topics

Corporate net income guidance

Reduction in NII reflects the cumulative

effect of sales of high yielding securities

that met price objectives

Overall part of deleveraging the balance

sheet

Beginning to reposition for a rising rate

environment

Expect $300mm +/-

corporate net income

per quarter ($1.2B per annum, excl. PE

and one-time items) largely driven by the

characteristics of the investment portfolio

Firmwide

net interest income

Immediate 100bps rise in interest rates

would increase firmwide

revenue by $1.5B

Commentary

Total Corp

(ex. PE):     $3.1                                $0.7                       

~$1.2

16

¹ Corporate Other and CIO/Treasury Other includes one-time items for 2009 and 2010. Excludes Private Equity net income of ($78)mm loss in ’09 and 

$587mm gain in ’10. Corporate and Private Equity net income and Corporate Investment Securities portfolio previously disclosed. CIO/Treasury NII, 

CIO/Treasury Other, and Corp. Other not previously disclosed

$73

$56

$36

$54

$186

$219

$92

$67

$57

$60

$191

$870

$209

$1,490

$6

$1,577

$881

$9

2009

2010

Selected key investor topics

Loan

growth

-

Growth

in

new

and

renewed

credit

provided

to

and

capital

raised

for

clients

in

2010¹

$ in billions

Investment Bank

Commercial

Banking

Asset

Management

TSS

Card

Services

5

Business

Banking

Other

Consumer

6

Total Firm

% ?

5%

26%

19%

58%

11%

50%

3%

6%

1%

in total EOP

balances ($B)

7

$1.5

$6.3

$8.2

($19.8)

($0.2)

($23.2)

($19.2)

%

in EOP

balances

2%

17%

43%

(14)%

(1)%

(7)%

(3)%

$7.8

16%

EOP ($B)

$98.9

$44.1

$27.2

$123.9

$16.8

$314.8

$679.2

$56.9

2

3,4

3,4

2

4

4

17

1  New and renewed lending consists of debt and equity underwriting, loan syndication and other capital raised for states, municipalities, hospitals, schools and non-profits in the Investment Bank; new and renewed lending 

commitments to commercial clients; new originations and refinancing to consumers including first mortgages, home equity lines, US credit cards and other consumer lending such as auto loans, leases, student loans and 

other; new originations, renewals and increases to existing lending for small businesses 

2  Consists of debt and equity underwriting, loan syndications distributed to third parties (as estimated) and other capital raised for states, municipalities, hospitals, schools and non-profits, excluding the portion retained in the 

credit portfolio (source: Dealogic and Thomson Reuters)

3  Consists of new and renewed lending held in IB’s credit portfolio, including the estimated retained portion of loan syndications 

4  Also includes estimated bilateral and other lending activity not previously reported

5  Loan balances exclude the impact of the Washington Mutual transaction. New and renewed lending includes international originations starting January 1, 2010

6  Consumer includes Home Lending, Home Equity, Auto loans and leases, Student and Other 

7  Total EOP loans are on a managed basis. Effective January 1, 2010, the Firm consolidated $15.1 billion of multi-seller conduit loans due to accounting guidance related to VIEs. CB loans for 2010 include the $3.5 billion 

Commercial Term Loan portfolio acquisition

Process overview

Selected key investor topics

Capital stress process

Rigorous firmwide

quarterly stress testing

process in place

Bottom-up P&L and balance sheet

developed for different economic

scenarios

–

3-year outlook

–

Economic scenarios defined by JPM

economists

–

P&L and balance sheet models

developed by lines of business 

–

Stress scenarios incorporate potential

expense reduction initiatives across

LOBs

Capital actions evaluated

Ongoing process adjusted to meet the Fed

Comprehensive Capital Plan requirements 

Range of parameters used to model stress

scenarios, including:

GDP declines over 4% through 3Q11,

then resumes slow growth through 4Q13

Peak unemployment of 11.7% in 4Q13

HPI peak-to-trough of 45% in 1Q12

Equity markets bottom at 850¹

during

2H11 and do not recover to 2010 levels

until 4Q13

Fed funds stay at 20bps through 4Q13

JPM Stress: Example metrics

¹

S&P 500

18

8.4%

8.4%

8.4%

9.3%

9.7%

10.2%

11.1%

11.5%

12.1%

11.9%

12.1%

8.3%

9.2%

8.9%

8.9%

7.0%

7.0%

7.0%

6.9%

7.1%

6.8%

6.9%

7.2%

7.7%

8.2%

8.8%

9.1%

9.6%

9.5%

9.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Selected key investor topics

JPM has maintained a fortress balance sheet throughout the crisis

Basel I Tier 1 Capital ratio excluding TARP¹

September 2008:

Raised $11.5B

related to WaMu

acquisition

June 2009: Raised

$5.75B to repay

TARP

March 2008: JPM

acquisition of

BSC announced

Tier 1 Capital Ratio

Tier 1 Common Ratio

Old Tier 1 Capital Target: 8.0 –

8.5%

SCAP 1 Tier 1 Common Guideline: 4.0%

¹

Includes BSC RWA relief in 2Q08 –

1Q09

19

~10%

~11%

~12%

2011

2012

2013

Selected key investor topics

Capital generation —

Illustrative “stress”

case based on analyst projections

Analyst

and

“stressed”

analyst

projections

($

in

billions)¹

,

²

,

³

Assumptions

Analyst Projections

"Stressed" Analyst Projections

2010

2011

2012

2013

2011

2012

2013

Net Income

$17.4

$19.6

$22.2

$24.1

~$12

~$13

~$14

Net Share Repurchases

4

$4

$6

$7

$0

$0

$0

Total Common Dividends

5

$2

$5

$6

$2

$5

$6

Capital Generation

$12

$10

$11

$9

$8

$8

Cumulative Cap. Gen.

$34

$25

Basel I Tier 1

Common

Ratio

9.8%

10.7%

11.4%

12.2%

2010

2011

2012

2013

Tier 1 Common Fed Guideline: 5.0%

6

Analyst Projections

"Stressed" Analyst Projections

2010

2011

2012

2013

2011

2012

2013

7.0%

~8%

~10%

~11%

~8%

~9%

~10%

Basel III Tier 1

Common

Ratio

20

¹ Analyst average for 2013 is composed of 5 analysts plus I/B/E/S LTG projections off of 2012 for 3 analysts; regulatory changes are assumed to 

be incorporated in the analyst projections. JPM does not endorse these projections

² “Stressed” Analyst Projections incorporate JPM stressed scenario assumptions

³ Analyst projection of capital deployment through common dividends of $13.7B and share repurchases of $17.3B from 2011-2013; 

“stressed” analyst projections include common dividend only

4 Represents repurchases above and beyond employee issuance

5 Analyst Projections and “Stressed” Analyst Projections assume dividends per share of $0.63, $1.28 and $1.56 in 2011, 2012 and 2013, respectively

6 Guideline communicated in the Federal Comprehensive Capital Plan 11/10 

Note: Numbers rounded for presentation purposes. Ratios and other calculations may not round perfectly

Selected key investor topics

Capital planning

Federal Reserve

Comprehensive

Capital Plan

Review

Extensive

data

collection

and

analysis;

100+

person

firmwide

team

submitted

plan

on

January 7, 2011

Follow-up meetings with Fed currently under way

Expect response by March 21, 2011

Capital Plan &

Results

Under both the JPM Stress and Fed Stress scenarios, JPM continues to maintain

and grow its strong capital position

Capital plan incorporates both dividend and share repurchase requests

Capital Hierarchy

Increase dividend to 30%+ payout ratio of normalized earnings over time

Hierarchy of capital after restoration of the dividend:

Organic growth

Opportunistic

share

repurchase

–

subject

to

price

Acquisitions

21

Outlook

Retail Financial Services

Card Services

Corporate/Private Equity

Corporate

Quarterly net income expected to be $300mm+/-,

subject to the size and duration of the investment

securities portfolio, excluding private equity

Chase and WaMu

credit losses expected to continue to

improve; Chase losses expected to be below 6.50% in

1Q11

EOP outstandings

for Chase (excluding WaMu) are

projected to bottom out in 3Q11 and end the year in 2011 at

$120B+/-, reflecting a better mix of customers

1Q11 outstandings

expected to decline as much as

$10B due to runoff and seasonal activity

Card Services 2011 net interest income expected to be

reduced by $1.4B+/-

from the 2010 level

Total quarterly net charge-offs running at $1.2B+/-

Continued elevation in credit-related expense

Residential real estate portfolios expected to decline by

approximately 10-15% annually for the foreseeable future

2011 portfolio net interest income expected to be

reduced by $700mm+/-

from 2010 level

Mortgage production volumes and margins remain

sensitive to interest rates. If current rates remain

unchanged or rise further expect a significant impact on

both

22

Significant

earnings power

JPM’s

fundamentals remain extremely strong

Excellent client franchises and businesses

Each standalone business has a top 1, 2 or 3 position

Unparalleled client relationships in 120+ countries

Culture

of

innovation;

new

products

and

programs

launched

during

crisis

Excellent    

franchises

Fortress

balance sheet

Continued investment across LOBs

driving organic growth

Consistent record of operating efficiency and delivering merger saves

Businesses stronger together than apart; additional revenue streams generated

Further

strengthened

balance

sheet:

Tier

1

Common

1

at

$115B

or

9.8%;

estimated

Basel

III

Tier

1

Common

1

at

$112B

or

7.0%

High quality capital and high level of reserves $32.3B, loan loss coverage

ratio

of

4.46%

2

Strong

funding

and

liquidity

profile:

~$930B

deposits,

1.3x

loan

coverage

Benefits

from

diversification

–

funding,

capital,

lower

volatility

1 

See note 3 on slide 38

2 

See note 2 on slide 38

23

Agenda

Page

24

Appendix

24

Credit performance improvement is a key driver to improved earnings

outlook

1.35%

0.50%

2010

Expectations for net charge-off rates through the cycle

Through the cycle

expectations

IB

0.94%

0.50%

CB

8.72%

4.50%

Card (ex.

WaMu)

3.63%

Home

Equity

2.60%

0.08%

Prime

Mortgage

0.25-0.35% +/-

Reserve levels will adjust as underlying credit

improves and certain portfolios

run off

¹

See note 2 on slide 38

Reserves

12/31/10

($ in billions)

Allowance for

Loan Losses¹

Loan Loss

Coverage Ratio¹

Wholesale

$4.8

2.1%

Consumer 

22.6

5.8%

Firmwide

$27.3

4.5%

25

Firmwide

coverage ratios remain strong

Peer comparison

$32.3B

of

loan

loss

reserves

in

4Q10

2

,

up

~$9.1B from $23.2B two years ago; loan

loss

coverage

ratio

of

4.46%

1

$7.5B (pretax) addition in allowance for

loan losses related to the consolidation of

credit

card

receivables

in

1Q10

1

26

1

  See note 1 on slide 38

2

  Includes allowance for loan losses for purchased credit-impaired loans of $4.9B, $2.8B, $2.8B, 

$2.8B, $1.6B, and $1.1B at the end of 4Q10, 3Q10, 2Q10, 1Q10, 4Q09, and 3Q09, respectively

3

  Peer average reflects equivalent metrics for key competitors. Peers are defined as C, BAC and WFC

4Q10

JPM

1

Peer Avg.

3

Consumer

LLR/Total Loans

5.78

%

5.86%

LLR/NPLs

255

%

195%

Wholesale

LLR/Total Loans

2.14

%

2.32%

LLR/NPLs

86

%

59%

Firmwide

LLR/Total Loans

4.46

%

4.56%

LLR/NPLs

190

%

138%

Fortress balance sheet

$111

$108

$104

$105

$115

9.1%

9.5%

9.8%

9.6%

8.8%

$0

$30

$60

$90

$120

4Q09

1Q10

2Q10

3Q10

4Q10

4.0%

6.0%

8.0%

10.0%

12.0%

Basel I Tier 1 Common

Basel I Tier 1 Common Ratio

Tier 1 Common1

($ in billions)

Firmwide

total credit reserves of

$33B; loan loss coverage ratio of

4.46%

1

Strong liquidity position

Global liquidity reserve of

$262B

2,3

Deposit to loan ratio of 134%

Basel III Tier 1 Common of 6.8%

and 7.0% in 3Q10 and 4Q10,

respectively

27

1

See note 2 on slide 38

2

  Estimated for 4Q10

3

The Global Liquidity Reserve represents cash on deposit at central banks, and the cash proceeds expected to be received in connection with secured financing of highly liquid, 

unencumbered securities (such as sovereigns, FDIC and government guaranteed, agency and agency MBS). In addition, the Global Liquidity Reserve includes the firm’s borrowing 

capacity at the Federal Reserve Bank discount window and various other central banks and from various Federal Home Loan Banks, which capacity is maintained by the firm having 

pledged collateral to all such banks. These amounts represent preliminary estimates which may be revised in the firm’s 10-K for the period ending December 31, 2010

Note: Firmwide Level 3 assets are 5% of total firm assets at December 31, 2010

Managed financial results

2005

2006

2007

2008

2009

2010

Investment Bank

$3,673

$3,674

$3,139

$(1,175) 

$6,899 

$6,639

Retail Financial Services

3,427

3,213

2,925

880

97

2,526

Card Services

1,907

3,206

2,919

780

(2,225)

2,074

Commercial Banking

951

1,010

1,134

1,439

1,271

2,084

Treasury & Securities Services

863

1,090

1,397

1,767

1,226

1,079

Asset Management

1,216

1,409

1,966

1,357

1,430

1,710

Corporate/Private Equity

(3,554)

842

1,885

557

3,030

1,258

Total Firm Net Income

$8,843

$14,444

$15,365

$5,605 

$11,728 

17,370

Firmwide

results ($ in millions)

Net income by line of business ($ in millions)

1 

See note 1 on slide 38

2 

Net income used to calculate the ratios for 2009 excludes the one-time, non-cash negative adjustment of $1.1B

resulting from the repayment of TARP preferred capital

3 

See note 4 on slide 38

28

2005

2006

2007

2008

2009

2010

Revenue (FTE)

1

$58,364

$65,113

$74,812

$72,772

$108,647

$104,842

Credit Costs

1

3,483

3,270

6,864

20,979

32,015

16,639

Expense

38,281

38,843

41,703

43,500

52,352

61,196

Reported Net Income

$8,843

$14,444

$15,365

$5,605

$11,728

$17,370

Reported EPS

$2.38

$4.04

$4.38

$1.35

$2.26

$3.96

ROE

2

8%

12%

13%

4%

7%

10%

ROTCE

2,3

14%

22%

21%

6%

11%

15%

Investment Bank

$ in millions

Leadership positions

Global IB Fee market leader, #1 ranking for the past two years

7

Ranked #2 in disclosed Markets revenue in 2010 (Based on top 10

competitors

that

have

released

as

of

February

11

th

,

2011)

Top 2 player in emerging markets over past 5 years

8

Ranked #1 2010 All-America Fixed Income and Equity Research team

by Institutional Investor magazine

1

29

1

  Results for 2008 include seven months of the combined Firm’s (JPMorgan Chase & Co.’s and Bear Stearns’) 

results and five months of heritage JPMorgan Chase results

2

  The 2009 results reflect modest net gains on legacy leveraged lending and mortgage-related positions, 

compared with net markdowns of $10.6 billion in 2008

3

   The compensation expense as a percentage of total net revenue ratio includes the impact of the U.K. Bank 

Payroll Tax on certain compensation awarded from December 9, 2009 to April 5, 2010 to relevant banking 

employees. For comparability to prior periods, IB excludes the impact of the U.K. Bank Payroll Tax expense, 

which results in a compensation expense as a percentage of total net revenue for 2010 of 35%, which is a 

non-GAAP financial measure

4

Loans held-for-sale and loans at fair value were excluded when calculating the loan loss coverage ratio and 

net charge-off rate

5

  Calculated based on average equity

6

  First six months of 2008 represent VAR at 99% confidence level, second six months of 2008, 2009 and 2010 

Average Trading and Credit Portfolio VAR at 95% confidence interval

7

Dealogic based on revenue

8

  Source: Coalition Development Ltd

2008

2009

2010

2010

Budget

Revenue

2

$12,335

$28,109

$26,217

$27,336

IB Fees

5,907

7,169

6,186

5,972

Fixed Income Markets

1,957

17,564

15,025

14,847

Equity Markets

3,611

4,393

4,763

5,615

Credit Portfolio

860

(1,017)

243

902

Expense

13,844

15,401

17,265

16,105

Credit Costs

2,015

2,279

(1,200)

400

Net Income

($1,175)

$6,899

$6,639

$7,224

Key Statistics ($B)

Overhead Ratio

112%

55%

66%

59%

Comp/Revenue

3

62%

33%

37%

38%

EOP Loans

$85.0

$49.1

$56.9

$63.5

Allow. for Loan Losses

$3.4

$3.8

$1.9

$3.2

Net Charge-off Rate

4

0.14%

3.04%

1.35%

2.50%

ALL / EOP Loans

4

4.83%

8.25%

3.51%

4.92%

ROE

5

(5%)

21%

17%

22%

VAR ($mm)

6

$176

$164

$87

EOP Equity

$33.0

$33.0

$40.0

$33.0

Retail Financial Services

1 

Calculated based on average equity; average equity for 2010, 2009 and 2008 was $28B, $25B

and $19B, respectively

2

Calculated based on average equity; average equity for 2010, 2009 and 2008 was $18.3B,

$15.2B and $12.1B

,

respectively

3

Source: Inside Mortgage Finance, 4Q10

4

Source: Autocount

as of YTD December 2010

Leadership positions

Attractive footprint

Tri-West

Midwest

California

Top deposit shares in

#1 New York

#1 Chicago

#1 Phoenix

#1 Dallas/Ft. Worth

#3

in

Mortgage

Originations

with

10.7%

market

share

3

#3

in

Mortgage

Servicing

with

11.9%

market

share

3

#2

non-captive

in

new/used

vehicles

sold

at

franchise

dealers

4

$ in millions

Northwest

Florida

Southwest

#1 Houston

#2 Seattle

#3 Los Angeles

30

2008

2009

2010

Retail Financial Services

Net Interest Income

$14,165

$20,492

$19,528

Noninterest Revenue

9,355

12,200

12,228

Revenue

23,520

32,692

31,756

Expense

12,077

16,748

17,864

Pre-Provision Pretax

11,443

15,944

13,892

Credit Costs

9,905

15,940

9,452

Net Income

$880

$97

$2,526

EOP Equity ($B)

$25

$25

$28

ROE

1

5%

-

%

9%

Memo:

RFS Net Income Excl. Real Estate Portfolios

$4,268

$5,546

$5,019

ROE Excl. Real Estate Portfolios

2

35%

36%

27%

Retail Banking —

Key Drivers¹

($ in billions)

Average Deposits

$244.6

$340.8

$336.5

Deposit Margin

2.89%

2.96%

3.03%

Checking Accts (mm)

24.5

25.7

27.3

# of Branches

5,474

5,154

5,268

Mortgage

Banking

&

Other

Consumer

Lending

—

Key

Drivers

1

($ in billions)

Mortgage Loan Originations

$169.0

$150.7

$155.6

3rd Party Mortgage Loans Svc'd

(EOP)

1,173

1,082

968

Auto Originations

19.4

23.7

23.0

Avg

Loans

61.9

68.7

77.2

Retail Financial Services

Retail Banking and Mortgage Banking & Other Consumer Lending

1 

Principally NII income ($5.4B in 2010 and $4.6B in 2011)

$ in millions

31

2008

2009

2010

Retail Banking

Net Interest Income

7,659

10,781

10,785

Noninterest Revenue

4,951

7,169

6,792

Revenue

$12,610

$17,950

17,577

Expense

7,232

10,357

10657

Pre-provision pretax

$5,378

$7,593

6,920

Credit Costs

449

1,142

607

Net Income

$2,982

$3,903

$3,614

Mortgage Banking & Other Consumer Lending

Revenue (excl. MSR Risk Management)

$5,451

$6,594

$7,496

MSR Risk Management

1,517

1,628

1,136

Revenue

6,968

8,222

8,632

Memo: Repurchase Losses (Contra-Revenue)

($252)

($1,612)

($2,912)

Expense

3,956

4,544

5,580

Pre-Provision Pretax

3,012

3,678

3,052

Credit Costs

895

1,235

614

Net Income

$1,286

$1,643

$1,405

Retail Financial Services

Real Estate Portfolios

1

Excludes

the

impact

of

purchased

credit-impaired

loans

acquired

as

part

of

the

WaMu

transaction.

An

allowance

for  

loan losses of $4.9B and $1.6B was recorded for these loans at year end 2010 and 2009, respectively

2

Includes

purchased

credit-impaired

loans

acquired

as

part

of

the

WaMu

transaction

$ in millions

32

2008

2009

2010

Real Estate Portfolios

Total Revenue

$3,942

$6,520

$5,547

Expense

889

1,847

1,627

Pre-Provision Pretax

3,053

4,673

3,920

Net charge-offs

3,894

8,343

6,450

Change in allowance

4,667

5,220

1,781

Credit Costs

8,561

13,563

8,231

Net Income

(3,388)

(5,449)

(2,493)

Memo:

ALL/EOP

Loans

1

3.79%

6.55%

6.47%

Key Drivers ($ in billions)

2008

2009

2010

Total Avg

loans

$181.3

$270.5

$238.8

Avg

Home

Equity

Loans

Owned

2

107.0

135.9

120.3

Avg

Mortgage

Loans

Owned

2

73.4

133.8

117.5

Card Services

1 

Calculated based on average equity

2 

Excludes WaMu

and industry data based on estimates and excludes Commercial Card

3

Based on internal JPM estimates

$ in millions

Leadership positions

Chase is #1 Visa credit card issuer

18.8%

market

share

of

General

Purpose

Credit

Card

outstandings

2

18.4%

market

share

of

General

Purpose

Credit

Card

sales

volume

2

#1

co-brand

card

issuer

in

the

U.S.

3

#1

merchant

acquirer

in

e-commerce

payment

processing

3

2008

2009

2010

Revenue

$16,474

$20,304

$17,163

Expense

5,140

5,381

5,797

Credit Costs

10,059

18,462

8,037

Net Income

$780

($2,225)

$2,074

Key Statistics Incl WaMu ($B)

ROO (Pretax)

0.78%

(2.05)%

2.31%

ROE¹

5%

(15)%

14%

EOP Equity

$15.0

$15.0

$15.0

Key Statistics Excl WaMu ($B)

Avg Outstandings

$155.9

$148.8

$128.3

EOP Outstandings

$162.1

$143.8

$123.9

New Accts Opened (mm)

14.4

10.2

11.3

Managed Margin

8.16%

8.97%

8.86%

Net Charge-Off Rate

4.92%

8.45%

8.72%

30+ Day Delinquency Rate

4.36%

5.52%

3.66%

33

Commercial Banking

$ in millions

Leadership positions

Strong

liquidity

–

only

bank

in

peer

group

with

a

loan-to-deposit

ratio under 100%

Maintained

top

3

leadership

position

nationally

in

market

penetration

and

lead

share

4

68%

of

Chase

clients

use

Chase

for

their

TS

needs

4

#1

multi-family

lender

in

the

U.S.

5

#2

large

middle

market

lender

in

the

U.S.

6

2008

2009

2010

Revenue

$4,777

$5,720

$6,040

Middle Market

2,939

3,055

3,060

Mid-Corp. Banking

921

1,102

1,154

Comm. Term Lending

243

875

1,023

Real Estate

413

461

460

Other

261

227

343

Expense

1,946

2,176

2,199

Credit Costs

464

1,454

297

Net Income

$1,439

$1,271

$2,084

Key Statistics ($B)

Avg Loans

$82.3

$106.7

$97.0

EOP Loans

$115.4

$97.4

$98.9

Avg Liability Balances

1

$103.1

$113.2

$138.9

Allow. for Loan Losses

$2.8

$3.0

$2.6

NPLs

$1.0

$2.8

$2.0

Net Charge-Off Rate²

0.35%

1.02%

0.94%

ALL/Loans²

2.45%

3.12%

2.61%

ROE

3

20%

16%

26%

Overhead Ratio

41%

38%

36%

EOP Equity

$8.0

$8.0

$8.0

1 

Includes deposits and deposits swept to on-balance sheet liabilities

2 

Loans held-for-sale and loans at fair value were excluded when calculating the

loan loss coverage ratio and net charge-off rate

3 

Calculated based on average equity

4 

Source: Greenwich Market Study FY2010

5 

FDIC 9/30/10

6

Thomson Reuters FY10

34

Treasury & Securities Services

1

Includes deposits and deposits swept to on-balance sheet liabilities

2

Calculated based on average equity

3

Source: Ernst & Young and Federal Reserve

4

Greenwich Associates, 2010

5

Source: JPM and peer 4Q10 company filings

6

Source: SEC 13-F filings by December 31, 2010

7

Source: Nilson

Leadership positions

#1 clearer of U.S. dollars in the world and #1 Automated Clearing

House

for

originations

3

#1

(tied)

in

U.S.

Corporate

Cash

management

4

#2 provider of custody services leveraging significant scale and

global

footprint

with

$16.1T

in

AUC

5

#2 in number of sponsored American Depository Receipt (ADR)

shares

6

#1 Visa / MasterCard Commercial, Purchasing and Prepaid card

issuer in the U.S.

7

$ in millions

35

2008

2009

2010

Revenue

$8,134

$7,344

$7,381

Treasury Services

3,779

3,702

3,698

Worldwide Securities Svcs.

4,355

3,642

3,683

Expense

5,223

5,278

5,604

Credit Costs

82

55

(47)

Net Income

$1,767

$1,226

$1,079

Key Statistics

Avg

Liability Balances ($B)

1

$279.8

$248.1

$248.5

Assets Under Custody ($T)

$13.2

$14.9

$16.1

Pretax Margin

33%

26%

23%

ROE

2

47%

25%

17%

TSS Firmwide

Revenue

$11,081

$10,231

$10,260

TS Firmwide

Revenue

$6,726

$6,589

$6,577

TSS Firmwide

Avg

Liab

Bal ($B)

1

$382.9

$361.2

$387.3

EOP Equity ($B)

$4.5

$5.0

$6.5

Asset Management

Leadership positions

#1 Institutional Money Market Fund Manager

Worldwide

2

#1

Ultra-High-Net-Worth

Private

Bank

Globally

3

2010 Asset Manager of the Year for Asia and Hong

Kong

4

Institutional Hedge Fund Manager of the Year

5

Gold Standard Fund Management, UK

6

(consecutively

for eight years, 2003-2010)

1 

Calculated based on average equity

2

Source: iMoney, 2010

3

Source: EuroMoney, 2010

4

Source: The Asset Magazine, 2010

5

Source: Institutional Investor, 2010

6

Source: Incisive Media

$ in millions

2008

2009

2010

Revenue

$7,584

$7,965

$8,984

Private Banking

4,189

4,320

$4,860

Institutional

1,775

2,065

2,180

Retail

1,620

1,580

1,944

Expense

5,298

5,473

6,122

Credit Costs

85

188

86

Net Income

$1,357

$1,430

$1,710

Key Statistics ($B)

Assets Under Management

$1,133

$1,249

$1,298

Assets Under Supervision

$1,496

$1,701

$1,840

Average Loans

$38.1

$35.0

$38.9

EOP Loans

$36.2

$37.8

$44.1

Average Deposits

$70.2

$77.0

$86.1

Pretax Margin

29%

29%

31%

ROE¹

24%

20%

26%

EOP Equity

$7.0

$7.0

$6.5

36

Corporate/Private Equity

$6.9

$7.3

$8.7

6.9%

6.3%

5.8%

$5.0

$6.0

$7.0

$8.0

$9.0

2008

2009

2010

5.0%

5.5%

6.0%

6.5%

7.0%

Portfolio as % of equity ex. goodwill

EOP Carrying value

Private Equity portfolio ($ in billions)

Net Income ($ in millions)

2008

2009

2010

Private Equity

(690)

(78)

588

Corporate

1,458

3,743

670

Merger Related

(211)

(635)

-

Net Income

$557

$3,030

$1,258

37

Notes on non-GAAP financial measures

38

1.

In addition to analyzing the Firm’s results on a reported basis, management reviews 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 certain reclassifications to present total net revenue for the Firm (and each of the business segments) on a FTE basis. Accordingly, revenue from tax-exempt

securities and investments that receive tax credits is presented in the managed results on a basis comparable to taxable securities and investments. This non-GAAP financial measure allows management to assess the

comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense. These adjustments have no impact on net income as

reported by the Firm as a whole or by the lines of business.

Prior to January 1, 2010, the Firm’s managed-basis presentation also included certain reclassification adjustments that assumed credit card loans securitized by CS remained on the balance sheet. Effective January 1, 2010, the

Firm adopted accounting guidance that required the Firm to consolidate its Firm-sponsored credit card securitizations trusts. The income, expense and credit costs associated with these securitization activities are now recorded in

the 2010 Consolidated Statements of Income in the same classifications that were previously used to report such items on a managed basis. As a result of the consolidation of the credit card securitization trusts, reported and

managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. 

The presentation of CS results prior to January 1, 2010 on a managed basis assumed that credit card loans that had been securitized and sold in accordance with U.S. GAAP remained on the Consolidated Balance Sheets, and that

the earnings on the securitized loans were classified in the same manner as the earnings on retained loans recorded on the Consolidated Balance Sheets. JPMorgan Chase used the concept of managed basis to evaluate the credit

performance and overall financial performance of the entire managed credit card portfolio. Operations were funded and decisions were 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 Consolidated Balance Sheets 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 affects both the securitized loans and the

loans retained on the Consolidated Balance Sheets. JPMorgan Chase believed that this managed-basis information was useful to investors, as it enabled them to understand both the credit risks associated with the loans reported

on the Consolidated Balance Sheets and the Firm’s retained interests in securitized loans. 

2.

The ratio for the allowance for loan losses to end-of-period loans excludes the following: loans accounted for at fair value and loans held-for-sale; purchased credit-impaired loans; the allowance for loan losses related to 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. Additionally, Real Estate Portfolios net charge-off

rates exclude the impact of purchased credit-impaired loans. The allowance for loan losses related to the purchased credit-impaired portfolio totaled $4.9 billion, $2.8 billion, and $1.6 billion at December 31, 2010, September 30,

2010, and December 31, 2009, respectively.

3.

Basel I Tier 1 common ratio is Tier 1 common divided by risk- weighted assets. Tier 1 common is defined as Tier 1 capital less elements of capital not in the form of common equity – such as perpetual preferred stock, noncontrolling

interests in subsidiaries and trust preferred capital debt securities. Tier 1 common, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of the

Firm’s capital with the capital of other financial services companies. The Firm uses Tier 1 common along with the other capital measures to assess and monitor its capital position.

4.

Tangible common equity (“TCE”) represents common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less identifiable intangible assets (other than MSRs) and goodwill, net of related deferred tax liabilities.

ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of TCE and is, in management’s view, a meaningful measure to assess the Firm’s use of equity. 

5.

Headcount-related expense includes salary and benefits (excluding performance-based incentives), and other noncompensation costs related to employees.

February 15, 2011

C

O

M

M

E

R

C

I

A

L

B

A

N

K

I

N

G

Todd Maclin, Commercial Banking Chief Executive Officer

*

*

*

*

*

*

*

*

*

*

Agenda

1

Business performance

1

Current environment

8

Growth opportunities

12

2011 and 2012 outlook

18

Commercial Banking transformation

2

Our core business principals remain the same

Bank strong companies with proven management teams

Maintain long-term  client relationships; average Middle

Market relationship tenure is over 14 years

Minimize concentrations in any industry or geography;

maintain granularity

Capitalize on JPMorgan Chase’s extensive and

differentiated product suite to meet client needs

Actively refer our customers to other LOBs

Instill a culture of sensible spending

Aggressively address variable expenses in downturns

Expense management

Cross-sell entire firm

Underwrite on only strong principals

Stop when the market is irrational; return when market

has rationalized

Pre-determined circuit breakers in place

Manage real estate

and cyclical exposures

through-the-cycle

Continuous investment           

in growth

Invest in new markets and businesses to expand

presence and market share

Aggressively cover target markets

Client selection

3

26%

16%

20%

17%

18%

28%

19%

10%

15%

20%

25%

30%

2005

2006

2007

2008

2009

2010

$3,488

$3,800

$4,103

$4,777

$5,720

$6,040

$1,856

$1,979

$1,958

$1,946

$2,176

$2,199

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2005

2006

2007

2008

2009

2010

Revenue

Expense

Steady profitable growth and high efficiency

Overhead ratio

Revenue ($ in millions)

36%

38%

41%

48%

52%

53%

30%

35%

40%

45%

50%

55%

60%

2005

2006

2007

2008

2009

2010

Target: 20%+/-

Target: <40%

$951

$1,010

$1,134

$1,439

$1,271

$2,084

$500

$1,000

$1,500

$2,000

$2,500

2005

2006

2007

2008

2009

2010

Net income ($ in millions)

Note: 2005 ROE of 19% based on $5.1 billion of equity to be consistent with Basel I methodology applicable beginning in 2006

Return on equity

4

Strong revenue growth despite low rate environment

CB product revenue

Lending

$1,215

Treasury

Services

$2,062

IB/other

$211

Treasury

Services

$2,632

IB/other

$659

Lending

$2,749

2005 Revenue

2010 Revenue

59%

6%

35%

Loan and deposit growth (Average, $ in billions)

$3.5B

$6.0B

$66

$74

$88

$103

$113

$139

$97

$48

$54

$61

$82

$107

$40

$60

$80

$100

$120

$140

$160

2005

2006

2007

2008

2009

2010

Deposit Balance

Loan Balance

Loan and deposit spreads

0%

3%

2005

2006

2007

2008

2009

2010

Deposit Spread

Loan Spread

Increased loan spreads

helping to offset low interest

rate environment

44%

11%

45%

5

Strong cross-sell has significantly increased fee revenue

Non-interest revenue –

CB reported ($ in millions)

Non-interest revenue / Total revenue trend

36%

Best-in-

Class

peer

36%

$986

$1,073

$1,263

$1,481

$1,817

$2,200

$500

$1,000

$1,500

$2,000

$2,500

2005

2006

2007

2008

2009

2010

47%

11%

48%

Note:  Peer group comparison includes CB-equivalent segments at BAC, COF, CMA, FITB,  PNC, STI, USB, WFC

CB reported

Fees from CB clients booked in

other LOBs

Peer median

Best-in-Class peer

28%

Peer

median

36%

32%

31%

31%

28%

28%

0%

10%

20%

30%

40%

2005

2006

2007

2008

2009

2010

Note: Average product per relationship excludes CTL

8.1

7.4

7.2

7.0

2007

2008

2009

2010

Product sales to CB customers include TS,

IB, AM, and Commercial Card

Total CB NIR / Revenue vs. peers

Average products per relationship

6

Best-in-class performance among peer group

7

Agenda

8

Current environment

8

Business performance

1

Growth opportunities

12

2011 and 2012 outlook

18

25%

35%

45%

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1.45%

1.75%

2.05%

2.35%

2.65%

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Market share appears to be driving our growth

Loan volume (Chase CB $ in millions, Industry C&I $ in billions)

Utilization rates

1,232

1,291

1,361

1,463

1,534

1,584

1,219

1,213

1,216

61,270

58,312

54,041

50,803

47,792

46,815

47,420

50,813

48,235

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

Industry C&I Loans

CB C&I Loans

Source: C&I loans from the Federal Reserve; data released on a one week lag

Loan spread trend

…before stabilizing

9

Stabilization

Non-performing loan ratio by quarter

Credit performance continues to improve

0.22%

0.40%

0.48%

0.67%

1.11%

1.92%

0.96%

0.74%

0.89%

1.16%

0.68%

0.75%

0.00%

0.50%

1.00%

1.50%

2.00%

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Net charge-off ratio by quarter

50bps through-the-cycle NCO ratio

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

0.72%

0.89%

1.38%

1.99%

2.26%

2.87%

3.13%

3.22%

3.00%

2.02%

Approximately 50% of

NPLs are current on

principal and no more

than one interest

payment behind

Total NCO ratio

NCO ratio excluding

impact of asset sales

10

Monitoring exposure to States and Municipalities

Municipal portfolio overview

$9.7B represents 5% of total $187B CB

exposure

Granular portfolio –

~2,000 clients

Primarily shorter-term debt allows for frequent       

re-evaluation

–

74% under 5 year maturity

Attractive risk characteristics

Typically state constitutions prioritize debt

service coverage as the 1st

or 2nd

budget  item

Portfolio primarily supports essential services

with stable funding

–

Public Education

–

Municipal Utilities

–

Public Transportation

Legal balanced budget requirement in all states

but one (Vermont)

General obligation debt to local governments

viewed as secured given the municipality’s ability

to levy and collect taxes

Portfolio and risk profile

11

Agenda

12

Growth opportunities

12

Business performance

1

Current environment

8

2011 and 2012 outlook

18

Expansion and out-of-footprint markets create a huge opportunity

Expansion and out-of-footprint presence

Hire the right people

Select the right clients

Maximize the relationship

Operational expansion state market

2011 Build-out market

Out-of-footprint market

Central

175

Northeast/

Mid-Atlantic

290

South

293

Mountain

68

Expansion

142

Midwest

168

National

Businesses

391

#

2010 Middle Market client conversions

13

Progress

Opportunity

Expansion markets¹

Opportunity¹

Progress¹

Only starting to tap market potential

1

Middle Market prospects only, does not include other CB LOB efforts in expansion states

2

Market equivalents based on target companies with $10mm -$1B in revenue. Source: D&B as of 3Q10

Out-of-footprint markets

Long-term CB pretax income

opportunity of $650-800mm

New markets roughly equivalent to

adding²:

1 Chicago

3 Dallas

3 Denver

3 Salt Lake City

1 Houston

1 Columbus

Over 4,700 prospects;

finding new

ones daily

Out-of-footprint markets roughly

equivalent to covering:

3 Houston

3 Columbus

1 Dallas

1 Fort Worth

1 New Orleans

1 San Antonio

Over 2,200 prospects

More than 200 fully dedicated CB

resources

Over $1B in loans; expect to double

in 2011

Over $1B in liabilities; expect to

double in 2011

Expected to be fully self-funded in

2011 (third year into effort)

Over 40 Commercial Bankers

covering these markets

Nearly 1,000 relationships across

these markets

14

International provides growth and differentiates from the competition

International client coverage

International deposit growth

$958

$1,581

$2,834

$4,553

$5,906

$7,148

2005

2006

2007

2008

2009

2010

Existing Banker Location

Additional 2011 Bankers

Client Coverage

Avg. balance

in millions

CB clients covered overseas

2,145

1,677

1,329

1,080

890

744

2005

2006

2007

2008

2009

2010

Note: Includes Canada; average deposits of $1,687mm in 2010

15

$4

$5

$6

$7

$8

$9

$10

$11

$12

$13

$14

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

$25

$30

$35

$40

$45

REB Loan Balances

CTL Loan Balances

Well positioned to take advantage of the improving Commercial Real Estate cycle

Commercial Term Lending loan pipeline ($ in millions)

Real Estate Banking loan balances (EOP -

$ in billions)

Commercial Term Lending balances flat while

reduction in Real Estate Banking balances leaves

capacity for opportunistic growth

Retail

11%

Office

9%

Industrial

6%

Multifamily

68%

CB CRE exposure -

$52B

Other CRE1, 6%

$0

$800

$1,600

$2,400

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Commercial Term Lending

pipeline

up more than 450% in

2010

1 

Other CRE includes Hospitality, Subscription IP, Commercial Land, and misc. other

Industry-wide apartment rent rates2

$900

$930

$960

$990

$1,020

Underlying apartment rents increasing

Granular

Multifamily

portfolio with over

34,000 clients

Majority of CRE exposure is multifamily

2 

National Effective Rent Rate, Source REIS

1

Exposure as of December 2010

16

Gross IB revenue from CB clients ($ in millions)

Gross domestic Investment Bank fees –

Total JPM

Gross domestic Investment Bank fees –

Total JPM

Investment Bank revenue remains a key cross-sell opportunity for Commercial Banking

Win percent for IB deals pitched to CB clients

$1,335

$1,163

$966

$888

$716

$552

2005

2006

2007

2008

2009

2010

0%

100%

Total

Loan Syndications

M&A

Equity

High Yield

Investment Grade

Other

76%

CB

24%

…and accounted for almost a quarter of the

firm’s gross domestic IB fees in 2010¹

IB revenue generated from CB clients has grown

steadily…

Historically high win rate when pitching deals to

CB clients

0%

100%

Pitch Rate

Efforts underway to increase pitch rate for

further IB revenue growth

Opportunity

2010 Pitch

Rate

1 

24% calculated based on Gross IB revenue for SLF, M&A, Equity Underwriting, and Bond Underwriting, which make up $904MM of the total

$1,335MM Gross IB revenue

Win Rate

Increasing pitch

rate will drive

revenue growth for

both CB and IB

17

Agenda

18

2011 and 2012 outlook

18

Business performance

1

Current environment

8

Growth opportunities

12

2011 and 2012 outlook

Continued growth

Market expansion

New client conversion

International

Investment Bank cross-sell

Commercial real estate

More normalized environment = more normal spread earned on deposits

Continued credit improvement

Net charge-offs leveling off; moving toward 50bps through the cycle

Current reserve levels adequate

Improve efficiency

Growth in front line staff to drive revenue

Investing

in

technology

and

operations

to

improve

efficiency

and

client

experience

2011 and 2012 outlook

19

Commercial Banking performance targets

20

February 15, 2011

T

R

E

A

S

U

R

Y

&

S

E

C

U

R

I

T

I

E

S

S

E

R

V

I

C

E

S

Mike Cavanagh, Chief Executive Officer Treasury & Securities Services

*

*

*

*

*

Global Custody

Fund Administration

Broker-Dealer Services

Depositary Receipts

Treasury & Securities Services (TSS) –

a global leader in transaction banking

Offering global scale and breadth . . .

~25,000 clients across 140+ markets

Essentially all of JPM’s

major wholesale clients

~50% of revenue generated outside of U.S.

~29,000 employees around the world

(~50% outside of U.S.)

Treasury Services (TS)

2010 Reported revenue: 

$3.7B

2010 Firmwide

revenue:

$6.6 B

TSS

–

Global

cash,

securities

servicing,

and

trade

business

comprised

of:

Worldwide Securities Services (WSS)

2010 Revenue: 

$3.7B

. . . with attractive financial characteristics

Cash Management

Global Payments and Clearing

Working Capital Optimization

Trade

Revenue

$7.4B

Pretax income

$1.7B

Pretax margin

23%

Equity capital

$6.5B

Return on equity

17%

Liability balances

$248B

1

Generated 44% of $6B in revenue

from sale of TS products in 2010

80%+ of CB clients use at least

one TSS product

TSS –

a central business within JPMorgan Chase

Treasury &

Securities

Services

Leverage common DDA platform

Business Banking clients use TS

services

Extensive branch network

supports TS client  collection

needs

Retail Financial Services

TSS distributes Commercial

Card products to clients

Card Services manufactures

products on its global platform

Card Services

TSS is the largest distributor of

AM money market funds –

$104B as of 2010

One of the largest WSS clients

Source of referrals to WSS (e.g.,

pension funds)

Commercial Banking

Asset Management

Key partner on the Global Corporate Bank

(GCB) initiative for international expansion

Collaborate on Prime Custody and FX

Share ~2,800 common clients including

MNCs

and investors

Shared capital and credit infrastructure

Investment Bank

2

Normalization of interest rate levels

TSS earnings growth will come from three key sources

Higher operating margins through

greater efficiency

Growth in higher-margin international

business

2010

Target

23%

35%+/-

Pretax margin

3

TSS earnings will grow significantly in a normalized rate environment

Current NII run rate reflects the full

impact of today’s low rate

environment

While highly stable over time, TSS

liability balances are mainly floating-

rate –

indexed to 1-month LIBOR or

Fed Funds

Assets invested in floating rate and

mostly short-term instruments –

minimal rate or duration risk

First 100bps increase in 1-month

LIBOR results in ~$300mm to

$350mm of incremental NII as spread

compression is recaptured

1-month LIBOR

Estimated improvement in net interest income

100bps

~$300mm to

$350mm

10-year swap rate

100bps

< $50mm

4

Premier client franchise

70 of top 100 global asset

managers

WSS –

strong market position with the resources to grow

15 of top 25 U.S. life insurers

6 of top 10 sovereign wealth

funds

#2 Globally with $16.1T in

AUC

~17% market share of top

10 global custodians

~60% Fixed Income /

~40% Equities

#2 in U.S. Broker-Dealer

Clearing

Direct custody in 8 markets

#3 Globally with $7.3T in

AUA

#2 Globally in Private

Equity with $309B in

AUA

#2 in number of

sponsored ADR shares

with 9.7B shares

3 of 5 world’s largest DR

programs

Global Custody

Broker-Dealer

Services

Global Fund

Services

Depositary

Receipts

5

2005

2008

2010

WSS earnings have been significantly impacted by market forces in recent years

2005 revenue indexed to 100

100

271

86

Balances continue to recover

modestly, but a return to peak

levels not expected

Lower demand by broker-dealers

and hedge funds due to

deleveraging and glut of U.S.

Treasuries

67

31

39

68% drop

600bps of

margin

Securities Lending revenue and spreads (bps)

Spread (bps)

Securities Lending revenue

6

WSS focus: Grow

earnings by deepening wallet penetration of core

clients and improving margins

Re-engineer core platforms and operations (e.g.,

sec. lending, custody, utilities)

Streamline offerings and platforms (e.g., firmwide

clearing and asset servicing utility)

Componentized our offering to exactly match client

needs and provide flexibility

Enhance client service and experience –

grow

wallet share with our top 200 clients

Acquire new names from target markets

Expand geographic footprint –

selectively build out

local capabilities

Expanded asset class support  (e.g., ETFs, Real

Estate, Loan Servicing, Derivatives)

Full support for complex investment strategies

Refined product capability to enable clients to

attract new assets and manage their risk

Re-price / re-design unprofitable deals to achieve

target returns

Price new business based on rigorous assessment

of complexity and cost

Strong sales pipeline –

16%

higher than previous year

Continued investments in

innovation and client

experience

Operating efficiency and

pricing initiatives rolled out

in 2011 –

margin impact

largely in 2012 and 2013

Client penetration

Creative solutions

Operating

efficiency

Pricing discipline

7

Deep and broad relationship spanning WSS and the firm

8

WSS –

already a global business and continuing to grow outside the U.S.

~15%

Global positioning

~5%

Global custody network covers 90+

markets

Client service and relationship

management in 30 markets and growing

Clearing on 40+ exchanges and 57 OTC

markets

#1 and #3 market positions in Luxembourg

and Dublin offshore centers, respectively

Direct custody in 8 markets, with plans to

expand

in

targeted

markets

–

recently

completed acquisition of ANZ local custody

in Australia

Developed Markets

Emerging Markets

AUC growth (2007 –

2010 CAGR)

~4%

~13%

~5%

Global revenue mix –

2010

Total = $3.7B

North

America

~40%

~35%

Europe

Middle East

and Africa

Asia Pacific

and China

Latin America

~25%

9

TS –

strong market position with the resources to grow

#1 (tied) in Corporate Cash

Management

Based on penetration of U.S.

Large Corporates

#1 in U.S. ACH origination with

2.9B items (> 20% market

share)

Global Presence

Clients in 140+ markets

Capabilities in 36 markets

Presence in 46 markets

#1 Globally with > 20%

market share

Leading global Financial

Institution franchise

#1 U.S. Bank in Letters of

Credit outstanding

USD Clearing

Trade

U.S. Cash

Management

International

Footprint

Premier client franchise

70% of the global Fortune 500

World’s top 25 banks

9 of 10 largest central banks

10

Working capital solutions across Trade, Supply Chain

and Cash

Building best-in-class treasury / client access platform

–

greater visibility for our clients

Pre-paid and bill-pay platforms to capture card-based

consumer payments

Client service best practices across markets as we

grow internationally

Integrated local coverage and service

Simplified on-boarding / implementation

Re-engineering and streamlining platforms and

processes (e.g., imaging, offshoring)

Increased scalability and continued resiliency of core

platforms as volumes grow

Local lending in key markets via Global Corporate

Bank initiative against core clients

Deeper sales coverage in key markets (e.g., China,

Brazil, India, Middle East)

Fully integrated international footprint and platforms

(e.g., Russia, South Africa, Saudi Arabia)

TS focus: Grow

earnings by extending our international footprint while leveraging

best-in-class client service and driving efficiency measures

Double-digit annual growth

rates in international

revenue

Higher margins driven by:

International growth

Operating efficiencies

11

International

growth

Innovation and

capabilities

Best-in-class

experience

Operating

efficiency

TS heavily penetrated in the U.S. and with global

Financial Institutions

~3,200 core clients are spread around the world –

~75% headquartered outside North America

Strategy is to continue to grow international

revenue with core clients

Our

growth

in

TS

will

be

driven

by

capturing

our

existing

clients’

international

wallets

~75% of global TS wallet is outside North

America

(vs. ~40% of TS revenue)

Meaningful opportunity for TS to grow its

international revenue and business profile

NA / Europe

MEA

APAC

LatAm

TS revenue growth by region (2007 –

2010 CAGR)

Global revenue mix –

2010

Total = ~$200B

North

America

Europe, Middle

East and Africa

Latin America

~75%

~3%

~5%

~13%

~23%

12

Asia Pacific

and China

Extend network and footprint in key

countries (e.g., China, Russia)

Continue to serve clients in other markets

through network partners (e.g., Pakistan,

Peru)

Continue rollout and enhancements of

international deposit and payment systems

Build out international cash concentration

and investment platform

Enhance financing, transaction

processing and structured trade solutions

(e.g., supply chain)

Build globally integrated multi-language

trade platform

Aggressive build-out of international TS capabilities is well underway…

Strong global network

10 locations added in last

3 years

19 locations to be added

by 2013

Integrated product platform

and operating model across

footprint

Best-in-class working capital

management solutions

Footprint

Cash management

capabilities

Trade and working

capital

13

…and we are already winning in the international marketplace

Client Need

Support suppliers amid

difficult financial markets

without compromising CAT’s

financial flexibility

JPM Solution

Supply chain finance program combining

standardized payment terms, better visibility, and

JPM financing for key suppliers

Enrolled hundreds of U.S. and European

suppliers; expanding to Latin America and Asia

Client Need

Centralize and rationalize

European payables and

receivables

JPM Solution

Integrated cash management and liquidity

structures across 15 countries and 11 currencies

Improved investment of cash; streamlined and

reduced cross-border transaction costs

Client Need

Capital to purchase 11

Boeing aircrafts in a

challenging financial

market

JPM Solution

Underwrote entirety of $1.1B structured trade loan

Leveraged 45-year relationship with Export-Import

Bank of the United States to secure a loan

guarantee mitigating J.P. Morgan’s risk

Air India will save over $30mm in interest costs

Client Need

Offer its corporate clients

renminbi

(RMB) clearing services

as Korea’s trade volumes with

China continue to grow

JPM Solution

Fast and efficient clearing of cross-border trade

payments with China

Reduced operating costs and mitigation of foreign

exchange risk

14

GCB is at the center of our international expansion strategy with our core

wholesale clients

~3,200 clients –

mostly pre-existing relationships

Typical profile:

Large and leading global Corporates,

Financial Institutions, and public sector entities

Significant presence outside of home country

Complex set of needs, requiring solutions

across IB, TSS and AM product sets

Build broad relationships with J.P. Morgan

wholesale clients

Client account planning

Opportunity identification

Cover relationship at headquarters and local

operating unit level

Assess client credit needs and align with wallet

opportunity

15

The international wholesale opportunity is compelling and J.P. Morgan is one of the

few who can capture it

Supporting significant growth

of international profits from

GCB clients

Additional ~$1B of annual

pretax income in 5 years

Doubling international

profits through these clients

Increased earnings

embedded in the financials

and long-term plans of TSS

and IB

Rigorous account planning against top clients validates

significant opportunity across both TSS and IB flow

products

International wallet of developed markets MNCs

(largely existing clients)

Additional opportunity to serve EM-based top-tier

companies both internationally and in the U.S.

Opportunity

Requirements and approach

Coordinated build-out of international capability within

TSS, IB and AM

Increased lending to these clients, leveraging existing

credit underwriting infrastructure

GCB coverage and related expenses not material

relative to global capability build within TSS and IB

Credit and coverage expenses split 50 / 50 between

TSS and IB

16

In summary…

Treasury

Services

and

Worldwide

Securities

Services

are

very

attractive

businesses

in

which

we

have

leadership

positions

Treasury

Services

and

Worldwide

Securities

Services

are

critical

to

our

wholesale

client

franchise

and

our

international

growth

plans

Earnings

will

increase

substantially

as:

Operating

efficiency

improves;

Growth

initiatives

are

achieved,

especially

internationally;

and

Interest

rates

rise

Committed

to

long-term

success

in

these

businesses

17

February 15, 2011

R

E

T

A

I

L

F

I

N

A

N

C

I

A

L

S

E

R

V

I

C

E

S

Charlie Scharf, Retail Financial Services Chief Executive Officer

*

*

*

*

*

Retail Financial Services –

earnings summary

($ in millions)

Consistently strong earnings power and potential of underlying businesses

Repurchase losses will reduce over time and Real Estate Portfolios will make a positive

contribution to earnings and capital over time as credit losses are reduced

2005

2006

2007

2008

2009

2010

Retail Banking

$1,645

$1,922

$2,245

$2,982

$3,903

$3,614

Mortgage Banking, Auto & Other Consumer

Lending (excl. repurchase losses)

803

377

824

1,441

2,634

3,101

Subtotal

$2,448

$2,299

$3,069

$4,423

$6,537

$6,715

Repurchase Losses

(4)

(4)

(5)

(155)

(991)

(1,696)

Real Estate Portfolios

983

918

(139)

(3,388)

(5,449)

(2,493)

Retail Financial Services

$3,427

$3,213

$2,925

$880

$97

$2,526

1

Strong underlying performance in Retail Banking, Mortgage Banking and Auto

Repurchase losses and Real Estate Portfolios headwinds remain

Underlying businesses positioned to deliver target ROEs

Retail Banking will be negatively affected by Durbin…but will earn back over time

Mortgage Banking will settle back to 15% returns post-refi

boom

Auto back to 15%+ returns (excluding reserve actions)

Real Estate Portfolios –

smaller overall dollars but 15% returns

Retail Financial Services –

earnings summary

($ in millions)

4Q10

Target

4Q09

3Q10

4Q10

ROE

ROE

Retail Banking

$1,027

$848

$954

37%

40%+/-

Mortgage Banking, Auto & Other Consumer

Lending (excl. Repurchase losses)

679

1,060

780

38%

15%+/-

Subtotal

$1,706

$1,908

$1,734

38%

Repurchase Losses

(413)

(853)

(203)

NM

Real Estate Portfolios

(1,692)

(148)

(823)

-34%

15%+/-

Retail Financial Services

($399)

$907

$708

10%

30%+/-

2

4Q10 results included significant negatives

Credit and repurchase losses and other mortgage-related expenses will reduce

over time improving earnings

Portion of reserves released will become capital

Capital will be freed up as Real Estate Portfolios run off

After-tax

($mm)

EOP

Reserves ($B)

Potential Excess

Capital ($B)

Mortgage Banking

Foreclosure Delay Costs

($218)

Repurchase Expenses¹

(203)

3.0

Sub-total

($421)

$3.0

Real Estate Portfolios

Foreclosed Asset Expenses

($131)

Total reserve actions²

(687)

Non purchased credit-impaired LLR

9.7

Sub-total

($818)

$9.7

Total

($1,239)

$12.7

$10 +/-

Memo:

Purchased credit-impaired LLR

$4.9

Purchased credit-impaired fair value mark

3

$13.3

3

1  RFS only. Excludes EMC

2  Excludes the impact of a one-time $632mm adjustment in 4Q10 related to the timing of when the   Firm recognized charge-offs on delinquent loans

3   Remaining mark net of liquidation losses

Agenda

Page

4

Credit

4

Strength of the franchise and growth opportunities

20

Strategic implications of legislation and regulation

39

NCOs

(annualized)¹

EOP Loan Loss

Reserves

Home Lending

2

$4,598

$9,653

Auto

$282

$480

Student Loans³

386

419

Retail Banking

686

875

Other

24

85

All Other

$1,378

$1,859

Retail Financial Services

$5,976

$11,512

Non credit-impaired ($ in millions)

Reserve adequacy

Net charge-offs1

vs. Loan loss reserve ($ in millions),  excl PCI

Total Home Lending reserves of $9.7B

(excluding WaMu

purchased credit-

impaired)

4Q10 NCOs annualized (excluding one-

time impact) of $4.6B

Other consumer loan portfolios well

reserved

Loss guidance: Home Lending quarterly

losses expected to be $1.2B+/-

January actual losses lower

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

NCOs

Loan Loss Reserves

1

4Q10 net charge-offs exclude the one-time impact of the $632mm adjustment related to the timing

of when the Firm recognizes charge-offs on delinquent loans

2

Net charge-offs exclude loans insured by U.S. government agencies

3

Net charge-offs represent full year 2010 actuals

Delinquencies and net charge-offs peaked

4Q09, significantly reduced 1H10 and

leveled off/modestly improved 2H10

Sustained reduction in net charge-offs

supports reserve actions

5

Reserve adequacy (continued…)

Agency repurchase exposure assessed and appropriately reserved

Repurchase losses life-to-date of $2.6B

End of period reserve balance of $3.0B; reserved for presented and probable future

demands

–

2011 realized losses estimated at $1.2B +/-

Private

label

exposure

–

we

have

significant

reserves

Repurchase reserves

Purchased credit-impaired

The current mark reflects ~$35B of lifetime losses

Current mark has roll rates ~flat through 2011 and improving in 2012

If

roll

rates

remain

~flat

through

2012,

this

would

result

in

an

incremental

$1B+/-

impairment

Further

economic

deterioration

(45%

HPA

and

worsening

roll

rate)

could

result

in

an

incremental $3B+/-

in additional losses

6

Total loans

Non purchased

credit-impaired

Purchased

credit-

impaired

Home Equity

$116

        $88

         $28

Option ARM 

39

           8

          31

Prime Mortgage 

75

          56

          19

Subprime Mortgage 

19

          11

           8

Total Home Lending portfolio¹

$249

$164

$86

    Fair value mark²

$13

NA

$13

Home Lending carrying value

236

$164

73

Auto

48

48

NA

Student and other

15

15

NA

Total Consumer Lending portfolio

$299

$227

$73

    Loan loss reserve (LLR)

$16.5

$11.5

$4.9

    LLR as % of loans / LLR + FVM as % of UPB PCI

NA

5.1%

20.8%

4Q10 Outstandings

($ in billions)

Consumer Lending portfolio

5.1% reserve ratio on non purchased credit-impaired portfolio

Purchased

credit-impaired

remaining

mark

and

reserves

of

20.8%

-

life

of

loan

losses

Purchased credit-impaired portfolio is appropriately reserved for best estimate of

remaining lifetime losses

1

Credit-impaired represents Unpaid Principal Balance (UPB) not book value

2

Fair

Value

Mark

(FVM)

remaining

is

the

original

mark

reduced

by

liquidation

losses

realized

Note: Table above excludes prime mortgage loans and student loans classified as held-for-sale

7

1Q10

2Q10

3Q10

4Q10

Adjusted

2

4Q10

Home Equity

$1,126

$796

$730

$725

$792

Prime Mortgage

1

482

286

276

252

570

Subprime Mortgage

457

282

206

182

429

Total Home Lending  

$2,065

$1,364

$1,212

$1,159

$1,791

Home Lending portfolio losses

1

Includes Option ARM

2

4Q10 net charge-offs exclude the one-time impact of the $632mm adjustment related to the timing of when the Firm recognizes charge-offs on delinquent loans

Net

charge-offs

peaked

4Q09;

significantly

reduced

in

1H10

in

line

with

HPI

and

unemployment

level

stabilization;

losses

leveled

off

/

modestly

improved

in

2H10

Total

quarterly

net

charge-offs

running

at

$1.2B+/-

Losses

expected

to

reduce

over

time

following

delinquencies

Net charge-offs ($ in millions), excluding purchased credit-impaired portfolio

8

Prime Mortgage delinquency trend ($ in millions)

Commentary

30-150 showing stability across

portfolios with some recent

improvements

150+ stabilized in mortgage portfolios

Consumer credit—delinquency trends

Excluding purchased credit-impaired loans

$0

$1,000

$2,000

$3,000

$4,000

$0

$1,300

$2,600

$3,900

$5,200

$6,500

$0

$1,000

$2,000

$3,000

$4,000

Note: Delinquencies prior to September 2008 are heritage Chase

Prime Mortgage excludes held-for-sale, Asset Management and Government Insured loans

30 –

150 day delinquencies

150+ day delinquencies

30 –

150 day delinquencies

30 –

150 day delinquencies

150+ day delinquencies

Home Equity delinquency trend ($ in millions)

Subprime Mortgage delinquency trend ($ in millions)

9

<80% current ECLTV

80 –

100% current ECLTV

Delinquency and losses peaked and stabilizing across all ECLTV segments

Home Equity

113

113

139

176

160

150

127

91

80

75

87

183

0

200

400

600

800

1000

1200

1400

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

0

100

200

300

400

500

600

21

52

167

279

481

407

361

314

216

251

239

535

0

200

400

600

800

1000

1200

1400

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

0

100

200

300

400

500

600

321

367

399

375

451

522

527

575

584

405

344

332

0

200

400

600

800

1000

1200

1400

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

0

100

200

300

400

500

600

Note: Data prior to September 2008 is heritage Chase

ECLTV = estimated combined loan-to-value considering all available lien positions related to the property which we own or service

Current ECLTVs

are calculated using original appraised value adjusted using the latest HPI published by Moody's Economy.com

Based on December 2010 curves

18

17

25

39

58

49

59

52

21

41

18

35

0

200

400

600

800

1000

1200

1400

1Q08

2Q083Q084Q081Q092Q093Q09

4Q091Q102Q103Q104Q10

0

100

200

300

400

500

600

100 –

150% current ECLTV

>150% current ECLTV

30+ day delinquencies

NCL $

30+ day delinquencies

NCL $

30+ day delinquencies

NCL $

30+ day delinquencies

NCL $

10

Home Equity balances migrating to >100% CLTV peaked in 2008

($ in billions, excluding purchased credit-impaired) 

$3.7

$7.7

$7.4

$7.6

$3.9

$1.0

$0.4

$0.9

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

1H07

2H07

1H08

2H08

1H09

2H09

1H10

2H10

New dollars moving into > 100% CLTV down from peaks in 2008

Although some $ are still moving >100%, rate has slowed; expect loss rate to be lower

Note:

Graph

based

on

Moody’s/Economy.com

Case-Schiller.

Baseline

forecast

as

of

December

2010

11

Home equity losses when exceed >100% CLTV

Note: Home Price Index, Moody’s/Economy.com

Case-Shiller

Forecast  as of December 2010

1 

4Q10 net charge-offs exclude the one-time impact of the adjustment related to the timing of when the Firm recognizes charge-offs on delinquent loans

75 –

80% of losses generated by loans > 100% CLTV

Losses substantially down from peaks in 2009 on both a dollar and rate basis

Net charge-offs ($ in millions), non credit-impaired portfolio

Annualized

Loss Rates

Losses from

>100% CLTV

1H08

2H08

1H09

2H09

1H10

2H10

1H09

2H10

Balances as

of 12/10 ($B)

Pre 2007

$115

$145

$173

$136

$96

$ 72

28.8%

17.4%

$0.8

1st Half 07

$261

$334

$415

$320

$227

$148

32.4%

17.6%

$1.6

2nd Half 07

$295

$443

$649

$585

$451

$330

20.7%

14.7%

$4.3

1st Half 08

$

90

$209

$394

$ 407

$349

$260

11.8%

9.9%

$5.0

2nd Half 08

-

$89

$258

$298

$245

$198

7.3%

7.5%

$5.1

1st Half 09

-

-

$100

$87

$92

$87

7.1%

6.9%

$2.5

2nd Half 09

-

-

-

$36

$26

$23

5.5%

$0.8

Full Year 10¹

-

-

-

-

$34

$

48

10.1%

$1.2

Total >100%

$761

$1,220

$1,989

$1,869

$1,520

$1,166

15.0%

10.7%

$21.4

80-100%

$161

$171

$277

$343

$315

$226

2.3%

2.5%

$20.3

<80

$36

$42

$97

$107

$87

$63

0.3%

0.2%

$46.7

Total   

$958

$1,433

$2,363

$2,319

$1,922

$1,455

4.3%

3.2%

$88.4

12

Performance of 2nd liens is consistent whether we own, service or do

not service the 1st

13

Equity is a driver of 2

nd

lien loss rates and delinquency timing

Timing of 2nd

Lien delinquency post 1st

lien delinquency-

ECLTV

20%

30%

40%

50%

60%

70%

80%

90%

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Timing of 2nd Lien Delinquency post 1st Lien Delinquency

<=100%

100-125%

125+%

Performance of 2

nd

liens significantly

differentiated by ECLTV

There is some differentiation in performance

of 2nds behind modified vs. delinquent 1sts

~65% of 2

nd

lien 125+% ECLTV loans go

delinquent 3 months after the 1

st

lien vs.

~40% for <100%

~80% of 2

nd

lien 125+% ECLTV loans go

delinquent by 15 months after the 1

st

lien vs.

~60% for <100%

2nd

Lien and we service the 1st (26% UPB) —

90+ or NCO in 16 months

31%

27%

23%

3%

43%

30%

28%

8%

19%

15%

12%

1%

0%

10%

20%

30%

40%

50%

60%

2nd Current w/Delinquent 1st 

2nd Current and Modified

2nd Current w/Modified 1st 

1st and 2nd Current

Note: Excludes purchased credit-impaired loans

< 100% ECLTV

> 100% ECLTV

Total

14

Home Equity –

performance of 2

nd

lien relative to 1st

lien

UPB as of 12/31/10 ($ in billions), non purchased credit-impaired portfolio

2nd Lien status

1st liens

$24.4

2nd liens

$64.0

Total

$88.4

Current 1st / Current 2nd

$58.3

Current 1st / Delinquent 2nd

$0.3

Delinquent 1st and 2nd

$1.4

Current 2nd / Delinquent or Modified 1st

$4.0

Total

$64.0

15

Performing 1st and 2nd Liens

CLTV

UPB

Estimated Lifetime Loss

Rates

<=80%

$25.4 

~

1%

80-100%

14.5 

4-5%

100+%

18.4

12-15%

Total   

$58.3

5% +/-

High risk 2nds –

performing 2nds behind troubled borrowers

Excluding purchased credit-impaired loans

High Risk 2nd Liens

1st Lien

Status

UPB

Estimated Lifetime

Loss Rates

>100+%

CLTV

Modified   

$0.9

~50%

70%

<150+ DPD

2.1 

~60%

44%

150+ DPD

1.0

~95%

59%

Total   

$4.0

60% +/-

54%

We have considered the status of 1st lien and equity position of

borrowers in our reserves

Total Home Equity reserves as of year end 2010 were $6.5B

Note: Grossed up based on 35% match rate

Note: Grossed up based on 35% match rate

16

Foreclosure and REO trends –

serviced

Units in process of foreclosure

Units in REO

Foreclosure inventory will decline

as inflows decrease on lower

delinquencies and outflows

increase as foreclosure

remediation population is cleared

REO inventory forecasted to

increase in 1H11 with the

resumption of foreclosures in all

states

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

Actual

Forecast

Remediation

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

Actual

Forecast

Remediation

17

Estimated REO as a % of home sales –

selected MSAs

REO as a % of home sales

1Q09

4Q09

4Q10

4Q12

Riverside

68%

46%

43%

18 - 28%

Sacramento

61%

37%

37%

19 - 31%

San Francisco

21%

10%

11%

6 - 10%

West Palm Beach

22%

11%

18%

12 - 18%

Washington DC

41%

21%

17%

11 - 18%

Miami

42%

23%

33%

23 - 35%

Ft Lauderdale

37%

29%

26%

18 - 28%

San Jose

45%

20%

17%

14 - 22%

Oakland

59%

31%

27%

21 - 33%

San Diego

50%

29%

27%

23 - 35%

New York

7%

7%

5%

4 - 7%

Phoenix

58%

35%

42%

32 - 45%

Long Island

10%

8%

4%

4 - 6%

Bridgeport

19%

10%

10%

10 - 15%

Los Angeles

49%

30%

27%

27 - 44%

Chicago

31%

23%

17%

16 - 26%

Houston

19%

16%

19%

18 - 31%

Dallas

25%

20%

25%

23 - 39%

Santa Ana

37%

18%

19%

26 - 41%

Seattle

13%

12%

15%

24 - 38%

18

Update on foreclosure process

Offered

over

1mm

modifications;

285,000

completed

Prevented

foreclosures

at

2x

the

rate

of

those

completed

51

Chase

Home

Ownership

Centers

(CHOCs)

–

plan

to

add

25

more

in

2011

6,000

loss

mitigation

counselors

to

assist

borrowers,

across

the

country

We make every effort to avoid foreclosure

Average

delinquency

at

foreclosure

is

14

months

Recent

foreclosure

sales

showed

the

following

customer/loan

characteristics:

57%

non-owner

occupied,

of

which

52%

were

vacant

at

foreclosure

43%

owner-occupied,

of

which:

–

25%

were

vacant

at

foreclosure

–

53%

did

not

qualify

for

modification

(e.g.,

High

DTI,

unemployed,

etc.)

–

18%

did

not

respond

to

modification

outreach

efforts

or

meet

all

permanent

modification

requirements

Key facts about foreclosures

19

Agenda

Page

20

Strength of the franchise and growth opportunities

20

Credit

4

Strategic implications of legislation and regulation

39

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2008

2009

2010

0.10%

0.48%

0.86%

1.24%

1.62%

2.00%

Net Income

ROA

Auto Finance

($ in millions)

Record net income and returns in 2010

Market share gained as competition weakened from 4.13% in 2008 to 5.45% in 2010;

originations increased 19% despite new vehicle sales declining by 12% since 2008

Portfolio

loan

spreads

increased

50bps+/-

reflecting

change

in

mix

and

focus

on

higher

return

segments

Strengthened relationships with strategic manufacturing partners

Net income

excluding

LLR release

21

Mortgage Banking

($ in millions, except where noted)

Market share gains from 9.2% to 10.7%¹

Refi

volumes remained high on low rate environment

Production revenue up on strong margins

Servicing revenue remained steady; includes strong MSR risk management results

Repurchase losses increased primarily due to $1.6B in reserve build

Default costs increased on higher headcount and foreclosure costs

2009

2010

Originations ($B)

$150.7

$155.6

Net Income

Production excl. repurchase losses

$995

$1,570

Servicing

1,196

695

Total

$2,191

$2,265

Repurchase Losses

(991)

(1,696)

Total

$1,200

$569

1 

Source: Inside Mortgage Finance, 4Q09 and 4Q10, respectively. Full year 2009 and 2010 market share were 8.6% and 10.4% respectively

22

Strong franchise with consistent business focus

Consumer

Banking

Consistent business focus

Acquire and deepen

relationships

Build distribution

Customer service

Customer engagement

Leverage consumer growth

Home Lending

Auto

Returns first, growth second

Business

Banking

Focus on retail customers

Bank branch

Strategic markets

Correspondent

Strong positioning

Proven organic growth track

record

An institutional franchise

Industry leading brand

Industry leading footprint

Great and diverse customer

base

Industry leading products and

services

23

3.6

1.7

3.0

1.9

2.2

3.9

2005

2006

2007

2008

2009

2010

Personal bankers

21,715

7,067

15,825

7,573

9,650

17,991

2005

2006

2007

2008

2009

2010

Retail Banking —

consistent organic growth

Strong growth through organic expansion and WaMu

acquisition

25,712

10,839

9,995

24,499

8,793

27,252

2005

2006

2007

2008

2009

2010

CAGR 25% (hChase

11%)

WaMu

hChase

CAGR 25% (hChase

14%)

WaMu

hChase

Checking accounts (# in 000s)

4,324

3,734

3,506

2,922

2,592

2,229

2005

2006

2007

2008

2009

2010

CAGR 14% (hChase

13%)

Sales production per branch (in units)

CAGR 17% (hChase

9%)

Net income ($ in billions)

WaMu

hChase

WaMu

hChase

($0.4)B impact of

NSF/OD policy

changes

24

Strong and growing cross sell

Cross Sell (# of Products and Services)

6.97

7.01

7.07

7.16

7.21

4

4.5

5

5.5

6

6.5

7

7.5

4Q09

1Q10

2Q10

3Q10

4Q10

H -

Chase

6.26

6.48

6.57

6.63

6.68

4

4.5

5

5.5

6

6.5

7

7.5

4Q09

1Q10

2Q10

3Q10

4Q10

Combined

5.35

5.76

5.87

5.88

5.94

4

4.5

5

5.5

6

6.5

7

7.5

4Q09

1Q10

2Q10

3Q10

4Q10

H –

WaMu

Cross sell is a measure of penetration of products

and services within Retail Financial Services

households

The measure above counts each product and

service individually (e.g. A household with 2

checking accounts is counted as 2)

25

Organic branch expansion

All other branches

New builds

Note:

Deposits

adjusted

to

exclude

large

branches

(+$1B)

assumed

to

contain

non-retail

deposits

Note: Percentages represent deposit share by CBSA

Source:

SNL

Financial

–

FDIC

deposit

data

as

of

6/30/10

Seattle

1. Bank of America

20.0%

2. JPMorgan Chase

10.5%

3. Wells Fargo

9.1%

14.5%

Los Angeles

2. Wells Fargo

1. Bank of America

21.3%

3. JPMorgan Chase

9.8%

Houston

1. JPMorgan Chase

16.2%

2. Wells Fargo

12.9%

3. Bank of America

8.7%

Total United States

1. Wells Fargo

8.5%

2. Bank of America

7.8%

3. JPMorgan Chase

5.7%

Chicago

1. JPMorgan Chase

12.9%

2. BMO Financial

8.8%

3. Bank of America

5.4%

New York

1. JPMorgan Chase

16.7%

2. Citigroup

9.9%

3. Toronto-Dominion

6.9%

Miami

1. Wells Fargo

15.1%

2. Bank of America

14.1%

3. SunTrust

6.0%

4. JPMorgan Chase

5.9%

Dallas-Fort Worth

1. JPMorgan Chase

13.6%

2. Bank of America

11.3%

3. Wells Fargo

10.8%

26

Retail Banking –

Strong presence in key deposit markets

Note:

Deposits

adjusted

to

exclude

large

branches

(+$1B)

assumed

to

contain

non-retail

deposits

Note: Percentages represent deposit share by CBSA

Source:

SNL

Financial

–

FDIC

deposit

data

as

of

6/30/10

Significant presence in 21 of the top 30

markets

These 21 markets represent 77% of

balances in top 30

Chase has 11% deposit share

Chase ranking -

Top 30 CBSAs

in footprint

Not in footprint

CBSA Ranking

CBSA

6

Philadelphia, PA

7

Boston, MA

8

Washington, DC

14

Saint Louis, MO

15

Minneapolis, MN

16

Pittsburgh, PA

19

Baltimore, MD

25

Kansas City, MO

28

Providence, RI

Total Deposits ($B)

$604.8

CBSA Ranking

CBSA

Chase Ranking

in Market

1

New York, NY

1

2

Los Angeles, CA

3

3

Chicago, IL

1

4

Miami, FL

4

5

San Francisco, CA

4

9

Houston, TX

1

10

Dallas-Fort Worth, TX

1

11

Atlanta, GA

17

12

Detroit, MI

2

13

Seattle, WA

2

17

San Diego, CA

3

18

San Jose, CA

3

20

Denver, CO

5

21

Phoenix, AZ

1

22

Tampa, FL

18

23

Cleveland, OH

8

24

Riverside, CA

3

26

Cincinnati, OH

7

27

Portland, OR

4

29

Bridgeport, CT

2

30

Milwaukee, WI

4

Total Deposits ($B)

$2,043.5

27

Retail Banking —

Continuous organic reinvestment (excl. WaMu)

Commitment to reinvest in our businesses drives continuous organic growth

1

Includes

cumulative

capital

and

operating

expenses

from

2006

to

2010

Investment

% Growth in Investment

Key Stats

(2006-2010)

2010 vs. 2006

(Cumulative 2006-2010)

New Builds¹

$3.9B

65%

+ 649 Branches; > 1,000 branches since 2002

Advertising and Marketing

$1.4B

41%

Excludes credit card brand spend

Sales Headcount -

Same Stores

$1.1B

234%

+ 6,200 Incremental sales headcount

Branch Signage / Interior upgrades

$0.9B

23%

+17,000 Branch projects completed

Debit Rewards

$0.7B

NA

~10.8mm Cards / ~5.9mm Rewards

ATM's

$0.4B

41%

+ 4,300 ATMs

Technology development

$0.2B

21%

+100 Incremental technology headcount

Total Investment

$ 8.6B

120%

28

52%

45%

45%

44%

46%

36%

41%

46%

27%

33%

26%

25%

31%

24%

32%

0%

10%

20%

30%

40%

50%

60%

Convenience

Products

Trust

Innovative

Momentum

Chase

BAC

WFC

53%

56%

47%

60%

63%

52%

0%

10%

20%

30%

40%

50%

60%

70%

Retail Footprint

Heritage Footprint

Rebrand Footprint

4Q09

4Q10

Source: Q4 2010 Brand Tracker; Retail footprint

YoY

growth in Chase unaided brand awareness

Industry leader in key consumer attributes –

4Q10

Chase brand –

strength and positive momentum

Heritage and rebrand footprint

Convenience:  Offer more convenient branch and ATM locations

Products/Services:  Offer products and services that meet my needs

Momentum:  Is growing more popular

Trust:  Is a bank I trust

Innovative:  Offers innovative products and services

Awareness of a bank that offers checking

29

Substantial opportunity to build branches in our current footprint

Current footprint and growth opportunities

Branch Share

(2010)

Branch Count

(2010)

Planned New Builds

(2011)

Potential New Builds

Over Next 5 Years

"Aggressive”

Growth Areas

California

11.0%

771

525 -

700

Florida

4.7%

248

375 -

500

Other locations

4.0%

183

400 -

550

Total "Aggressive”

Growth Areas

7.1%

1,202

150+

1,300 –

1,750

All Other "Fill In“

and In-Footprint Markets

10.9%

4,078

50+

200 –

250

Grand Total

8.3%

5,280

200 -

225

1,500 -

2,000

30

New build initiative ($ in millions)

2002

2003

2004

2005

2006

2007

2008

2009

2010

Branches Opened

35

59

124

146

125

127

126

117

154

Cumulative Branches Opened

35

94

218

364

489

616

742

859

1,013

$ contribution to 2010 pretax ($000s, per branch)1

$955

$877

$755

$532

$217

($10)

($304)

($600)

($165)

New Builds making a positive contribution to pretax (2002-2006)

$284

New Builds not yet broken even (2007-2010)

($135)

Total contribution of New Builds

$148

New build economics

Almost 2mm checking accounts from new build portfolio

On average, branches breakeven at 30 months +/-

65

branches >36 months old have yet to break even

On average, new builds pay back within 3-5 years

54 branches >60 months old have yet to pay back

Contribution

of

new

builds

once

seasoned

is

>$1mm

per

branch

per

year

~1,000

branches

opened

since

2002

will

contribute

$500mm

+/-

pretax

by

~2013,

and

$1B+/-

pretax

by

~2018

1

2010

includes

partial

year

pretax

impact

of

2010

new

builds

vintage

31

New build economics

~1,000

new

builds

to

date

contribute

$1B+/-

in

~2018

Growing

new

builds

to

200-225+/-

in

2011,

300+/-

in

2012

and

500+/-

per

year

forward

will

create

a

drag

on

earnings

but

is

a

significant

long

term

investment

for

growth

32

2011 products and services innovation

QuickDeposit

Square’s card reader

Instant Issue Debit

2 Way Instant Action Alerts

33

Capturing the Business Banking opportunity in heritage WaMu

footprint

WaMu

branch

productivity

at

Chase

levels

is

a

$1B+/-

pretax

opportunity

Capturing the opportunity by leveraging the Chase Business Banking model

Dedicated bankers to help small businesses in branches

Full suite of small business products for deposits, cash management, credit and payments, etc.

Significant progress has been made to date in banker productivity….

Average

deposit

balances

per

WaMu

branch

are

still

~1/3

of

Chase

branches

Average

loan

balances

per

WaMu

branch

are

still

~1/6

of

Chase

branches

But reaching full profitability targets will take several years

$7.3

$9.3

2009

2010

Deposit Balances ($B)

$58

$878

2009

2010

Loan Production ($mm)

731

478

2009

2010

Business Bankers

34

Stronger demand and changes in lending policy continue to drive significant

small business lending growth

Business Banking loan originations ($ in billions)

$1.3

$3.0

$4.2

$3.9

$2.3

$4.7

$5.5

$6.9

2007

2008

2009

2010

Stated Income

Verified Income

Key drivers of growth

Demand for small business loans grew in 2010

4Q10 applications up 40%+ vs. 1Q10

Pipeline for larger ticket loans (>$250mm) set a new record at >$2B in 2010

Refined credit policies and programs provided incremental credit

to small businesses

Lowered debt service ratio requirements for established businesses

Increased

focus

on

providing

SBA

financing

to

customers

–

Chase

became

the

#1

SBA

lender

by

loan

units

Launched an automatic second review process

Launched promotions for waiving upfront fees on certain loans (e.g., Owner Occupied Real Estate)

35

Affluent banking opportunity is significant; we have a program to serve

these clients

$500k -

$5mm of wealth

70% of assets are in investments

67% visit the branch quarterly

1.8mm Affluent clients in the Consumer Bank

Chase Households

20mm Total

$2.6T

Wealth

1.8mm

Total Wealth

$3.8T Total

The opportunity: 10% of clients with 70% of wealth

Significant opportunity to capture more wallet share

We have only 5% share of wallet, including only

2% of the investment wallet

Dedicated teams of Personal Bankers,

Investment Advisors and Service Specialists

Located in exclusive, private setting within the

branch

Premier level of service

Distinct, premium brand that leverages Chase

and J.P. Morgan for investments

Unified client experience across all channels

delivered through common technology platform

Banking products customized to meet the needs

of the affluent

Full spectrum of J.P. Morgan investment

capabilities

People

Product

Technology

Positioning

The Chase Private Client program

36

Chase Private Client has made significant progress

Created Chase Wealth Management with a complete

management team

Led by Barry Sommers, previously CEO of J.P. Morgan

Securities

Deep experience in both brokerage and banking

Focused on enhancing program components and expanding

presence

Well integrated with Consumer Bank and Asset Management

Will add 50 locations in 2011.  Will have more than 150 locations

by 2013

Expanding presence in NY area and Chicago

Opening in Los Angeles, San Francisco and South Florida in

2011

Future priority markets include Texas, Washington, Arizona,

other parts of California

Recruiting over 100 Investment Advisors, 300 Bankers and 100

Service Specialists into the program by year-end

Migrating investment technology to fully leverage JPMorgan

Chase’s investment platform

Recent progress and expansion

Becoming

a

significant

provider

to

10-20%

current

affluent

clients

would

result

in

incremental

pretax

income

of

$500mm

-

$1B

Pilot beginning in 2007 in the NY area and Chicago

Clients with balances below $250k¹

grew balances

575%

Clients with balances above $250k¹

grew balances 13%

Retention for high balance customers in CPC is 16%

higher than non-CPC

Over 40% of CPC households have investments, up

from 17% prior to CPC

The pilot has worked

1

Balances prior to joining CPC

37

Retail Financial Services opportunities

Significant growth opportunities remain across businesses

Each is a $1B+/-

incremental pretax

opportunity

WaMu

Business Banking

Chase Wealth Management (Affluent)

New Builds

Continue to execute in Chase same stores

Build out WaMu

consumer products and customer base

Mortgage Banking –

continue to focus on Retail customers (through loan officers and

Correspondent)

Auto –

continue disciplined pricing and credit management

38

Agenda

Page

39

Strategic implications of legislation and regulation

39

Credit

4

Strength of the franchise and growth opportunities

20

Durbin Amendment

Flawed policy

Merchants and consumers realize tremendous benefits from debit

Products and services should be priced based on value, not an artificial concept of cost

Definition of costs in Durbin is incomplete and extremely flawed

Consumers will be harmed

Pay more for basic banking services

Restrictions on debit cards and banking services

5%+ will exit mainstream banking

All banks and credit unions will be affected

Reduced payment innovation

Potential for less safe and secure payment system

$14B annual wealth transfer from consumers to merchants, mostly large retail chains

40

Regulatory reform

Operate from a position of strength

Will be a level playing field, and…

We operate from a position of strength

Broad customer relationships (good distribution of customers across all wallet

segments)

Superior and complete product set (i.e., credit cards, investments, deposits,

loans, treasury services)

Nationwide footprint (over 5,000 branches and 16,000 ATMs in 23 states)

Willingness and ability to adapt and change

41

Product and customer positioning

We

have

a

complete

product

set

to

meet

our

customers’

needs

Products we offer

Mass

Mass Affluent

Affluent

Deposits (checking, savings and CDs)

Cards

Debit

Credit

Gift

Lending

Mortgages

Home Equity loans

Business Banking lending (including SBA and CRE)

Auto lending

Student lending

Investments

Financial / retirement planning

Mutual Funds

Annuities and Life Insurance

Brokerage and Managed account

Trusts

Securities Lending

Money Transfers

Prepaid Debit

42

<$5k

24%

$25K - $100k

23%

$5k - $25k

25%

$100k - $500k

18%

$500k - $5mm

10%

Diverse customer base: strong penetration, but lots of opportunity

% of Consumer Bank households based on deposit and investment wallet

Consumer Bank wallet share by segment

Share of wallet

Segment

Wallet range

Deposit share

Investment share

Mass

<$5k

43%

11%

$5k -

$25k

31%

6%

$25K -

$100k

29%

8%

Mass Affluent

$100k -

$500k

25%

8%

Affluent

$500k -

$5mm

12%

2%

Total

18%

4%

43

Lost contribution due to Durbin Amendment

Segment

Wallet range

Lost revenue ($B)

% of total lost revenue

# of households no longer

profitable due to Durbin

Mass

< $100k

($1.0)

79%

1.3mm

Mass Affluent

$100k -

$500k

($0.2)

16%

0.1mm

Affluent

$500k -

$5mm

($0.1)

6%

< 0.1mm

Total

($1.3)+/-

100%

~1.3mm

Total contribution to Consumer Bank fixed costs

Source: 2Q10 annualized Consumer Bank Profitability data 

44

Projections of customers potentially moving out of the banking system

Percent of U.S. families with a checking account

84.9%

89.7%

1995

2007

Source: Federal Reserve Survey of Consumer Finance

5 percentage

point difference

Impact on customers

Since “free checking”

became widely available an

additional 5% of US families have entered banking

system

If unable to qualify for free checking in the future

these families may go unbanked

Chase’s recent experience confirms that the impact

will be meaningful:

~15% of customers are in less affluent

households who will no longer qualify for free

checking

Based on current attrition rates, we expect 50% to

60% of these customers to leave Chase within the

next year

If half of these customers leave the banking

system  =  5% +/-

of customers becoming

unbanked

45

Durbin customer impact –

potential changes

Restrictions on debit cards

Limit maximum transactions amounts due to fraud

costs, e.g., $50 max

Restrict use of debit cards at higher risk merchants

and merchant categories

Eliminate 100% fraud protection and guaranteed

payment for merchants

Eliminate debit rewards

More expensive banking services

Monthly service fees (eliminate “free checking”)

Debit card fees, e.g., monthly/annual fee,

transaction fees (metering)

Fees for other payment services, e.g., ACH

Fees for account services, e.g., online banking, bill

payment, mobile banking, paper statements

Fees for banking services, e.g., teller, call center

Recent Chase actions

Converted 8mm free checking customers to $10-

12/month fee

Stopped debit rewards

Eliminated debit usage as a way to waive monthly

service fee for all new customers

Currently testing several other product and pricing

concepts

Lower income and less affluent households

most affected by Durbin

Customers without significant balances will pay

more for basic banking services

5%+ customers will exit mainstream banking,

e.g., pay day lenders, check cashers, pre-paid

We plan to recoup revenue lost as a result of Durbin over time

46

Mortgage banking economics —

scenario

Market Production

$1.5T +/-

Market Share

10% +/-

Originations

$150B +/-

Pretax Margin

65bps +/-

Pretax

$1.0B +/-

Average UPB

$1.0T +/-

Servicing & Other Revenue

44bps  +/-

Amortization

25bps +/-

Servicing & Default Costs

10bps +/-

MSR Risk Management

+/-

10bps

Pretax

$1.0B +/-

Production

Servicing

Quality of underwriting

Pricing for risk

Cost / Efficiency of platform  (sales, operational,

overhead, etc.)

Market risk management –

pipeline / warehouse

Focus on customer service

Size and average life of servicing book

Management of operational risk

Efficiency of platform

Market risk management –

MSR

hedging

Focus on customer service

Affected by high repurchase expense

Historically high refinance volumes and margins due

to low interest rate environment

2011 refinance volumes and margins and repurchase

expenses expected to decline

Affected by high default driven costs

Default costs expected to remain high for next couple

of years to handle modification and foreclosure

volumes

Interest rate movements affect the business; require

effective hedging strategies

47

Mortgage Banking economics —

sensitivity

Production

volume

and

margins

are

impacted

by

market

interest

rates

and

capacity

Some

of

the

highest

historic

production

margins

were

experienced

in

2010

Pretax

servicing

margin

has

been

adversely

affected

by

high

default

costs

but

generally

can

range

from

$500mm

-

$1.5B

$ in billions

$0.9

$0.7

$0.5

$1.3

$1.0

$0.7

$1.7

$1.3

$0.9

$2.0T Market               

$1.5T Market               

$1.0T Market               

45 bps

65 bps

85 bps

45 bps

65 bps

85 bps

45 bps

65 bps

85 bps

2010

Production

Pretax

$2.7B

Production Pretax Income

48

Incremental value of adding mortgage to a banking relationship

Mortgage increases the value of the overall customer relationship

HH without a mortgage

HH with a mortgage

Note:  Impact of customer following refinance of a non-Chase mortgage at Chase

100%

130%

9%

8%

13%

Value of HH

without

mortgage

Additional

checking value

Additional

savings value

Increased

likelihood of

capturing

mortgage

refinance

Value of HH with

a mortgage

Relationship impact after acquiring a

Chase mortgage

Excludes any additional value attributed to cross sell

(e.g. credit card, investments)

Household checking annual attrition

49

Servicer economics -

modification vs. foreclosure

Modification vs. foreclosure decision is made on behalf of the investor based on the

best economic alternative

From a servicer’s perspective, a performing loan is the best alternative

A foreclosure is the worst economic alternative, primarily due to the loss of servicing

fee income

$ per loan

Foreclosed Loan

Modified Loan

Servicing Fees

1,500

3,400

Loss Mitigation Incentives

-

1,200

Total Fees

1,500

4,600

Servicing & Collection Cost

700

1,500

Loss Mitigation Cost

2,400

3,000

Foreclosure Processing Cost

1,500

600

Total Cost

4,600

5,100

Net Income/(Loss)

(3,100)

(500)

50

Housing market reform

A healthy, functioning mortgage market is critical to consumers and the economy

Mortgage business is extremely complex and industry practices need to be strengthened

GSE reform is necessary

Regardless of the outcome, we continue to like our competitive position

Existing customer relationships: over 67mm unique customer relationships

~7mm new customers acquired each year

Processing scale

Reasonable

return

on

production

and

servicing

-

form

may

change

A critical relationship product

51

Key messages

Earnings drag from significant negatives in 2010 will reduce over time

Credit, repurchases, elevated default and servicing expenses, foreclosure costs

Well reserved entering 2011

Capital will be freed up as reserves are released and Real Estate Portfolio runs-off

Industry leading franchise with strong earnings power and potential

Doubled investment $ over the last 5 years

Consistent, 10% to 15%, organic growth in key drivers

Strong presence in key markets

Significant

opportunity

to

grow

organically

in

our

footprint;

potential

to

build

1,500+/-

new

branches

over

the

next

5

years

WaMu

Business

Banking

and

Chase

Private

Client

is

a

combined

$2.0B+/-

pretax

opportunity

Strong and experienced management team

Track record of execution and delivering growth

Diverse customer base; strong penetration but lots of opportunity

Complete product set; focus on innovation

Regulatory

reform

will

change

our

business;

we

are

positioned

to

adapt

and

will

price

properly

for

the

services

and

value

we

provide

Quality of our franchise positions us to grow

Our business model enables success even during significant change

We will address legacy issues

52

February 15, 2011

A

S

S

E

T

M

A

N

A

G

E

M

E

N

T

Mary Erdoes, Asset Management Chief Executive Officer

*

*

*

Agenda

Page

1

Business Performance

1

Asset Management framework designed for disciplined governance, risk

management, and client focus in a complex and changing environment

AM Investment

Committee

AM Risk       

Committee

Private Banking          

Operating Committee

Investment Management

Operating Committee

Highbridge

Board

Global Private Bank

Private Wealth Management

JPMorgan Securities

Global Institutional

Retail

US

EMEA / LatAm

APAC

Highbridge

Hedge Funds

Highbridge

Principal Strategies

Gávea

Technology

& Operations

Finance

Human

Resources

Risk

Audit

Legal &

Compliance

Assets under

supervision  

$1.8T

Global employees            

17,000+

Investment

professionals  

1,200+

Investment

strategies           

200+

AM Operating

Committee

2

“To be the most respected asset management firm by delivering exceptional risk adjusted investment

performance, by offering a broad and innovative range of trust and investment products, and by providing

the highest quality service through local management of client relationships.”

2010

% change

vs. 2009

Assets Under Management

$1,298

4%

Assets Under Supervision

1,840

8%

Loans 

44

17%

Deposits

89

15%

Long-term flows

69

35%

Sales hires

453

15%

ROE

26%

6%

Equity

$6.5

(7%)

2010

% change

vs. 2009

Revenue:

$8,984

13%

Private Banking

4,860

13%

     Institutional

2,180

6%

      Retail

1,944

23%

Credit Costs

86

(54%)

Expense

6,112

12%

Pretax Margin

31%

2%

Net Income

$1,710

20%

2010 results ($ in millions)

In 2010, Asset Management showed strong growth, across all client

segments

Key Statistics ($ in billions)

Record

Record

Record

Record

Record

Record

Record

Record

1

2

1 

The “percentage”

change in pretax margin is the actual difference between 2010 and 2009

2 

The “percentage”

change in ROE is the actual difference between 2010 and 2009

3

Asset Management has shown consistent profitability during the financial

crisis

4

Pretax margin and ROE consistently remain above peer average

15%

35%

25%

12%

18%

45%

22%

22%

31%

Pretax margin –

2010 (%)

JPM AM

Peer Median

Peers include: BAC, BLK, BNY, CS, MS, UBS, and TROW

Note: GAAP pretax margins presented

Peers:

7%

8%

16%

11%

22%

11%

26%

ROE –

2010 (%)

JPM AM

Peer Median

Peers:

Peers include: BAC, BLK, MS, UBS, and TROW

Note: GAAP ROE presented

5

484

687

245

422

420

731

2005

2010

Institutional

Retail

Private Banking

$1,149

$1,840

Asset Management has grown assets in each client segment over the last five

years

Client segments ($ in billions)

AUM and AUS

AUM and AUS

197

216

261

258

270

284

$731

$636

$552

$545

$465

$420

2005

2006

2007

2008

2009

2010

AUM

AUS

$481

$538

$632

$681

$709

$686

2005

2006

2007

2008

2009

2010

169

259

300

194

270

328

$422

$355

$394

$245

$343

$262

2005

2006

2007

2008

2009

2010

AUM

AUS

AUS –

2005 to 2010 ($ in billions)

AUM

Flat

6

Fixed Income and equities recorded strong flows along with performance

improvement

Long-term net flows ($ in billions)

$19

$17

($47)

$28

$34

$24

2005

2006

2007

2008

2009

2010

$50

$34

($12)

$9

$11

$-

2005

2006

2007

2008

2009

2010

($89)

($23)

$210

$78

$44

$8

2005

2006

2007

2008

2009

2010

2010

2009

$512

$432

AUM ($ in billions)

2010

2009

$289

$226

2010

2009

$497

$591

+19%

+28%

-16%

7

Asset Management greatly benefits from the power of the JPM network

Retail

Financial

Services

Fund accounting

Transfer agency

Custody

Securities lending

Interest Rate Risk

Commercial

Banking

Investment

Bank

Structured products

Execution

Highlights

Synergies of over $1B across LOBs

Synergies account for over 10% of JPM AM revenues

Investment Bank

Securities offerings, structured products and trade

execution offered to Private Banking clients

Referrals in both directions

Retail Financial Services

Investment Management products offered to RFS

clients through Chase branches

US branches available to Private Banking clients

Card

Services

issued

to

Private

Banking

clients

Commercial Banking

Investment Management products offered to

Commercial Banking clients

Referrals in both directions

Treasury & Securities Services

Liquidity products offered to TSS clients

Referrals in both directions

Corporate (Treasury/CIO)

Manages Private Banking’s

mortgage interest rate

risk

Corporate 

(Treasury / CIO)

Fund management

Fund management

Fund management

Credit Cards

Fund management

Treasury &  

Securities Services

Card Services

8

Growth Opportunities

9

Business Performance

1

International expansion

Front-facing client expansion

Market share gain: core products

Market share gain: innovative products and solutions

1

2

3

4

9

International expansion continues to be a priority

LatAm

EMEA

Asia Pacific

Ultra HNW continued growth

Brazil: local offices and talent

Ultra HNW continued growth

HNW development where scalable

Ultra HNW continued growth

HNW build out

Sales force growth

Insurance, pensions

Gávea

Brazil –

local manufacturing

Sales force growth

Sovereigns, Central Banks

2011 priorities

’05-’09 CAGR

’09-’10 revenue            

growth

International growth

12%

26%

10%

10%

3%

17%

8%

19%

1

10

Front-facing client coverage

Private Banking –

Client advisors (#)

1,868

2,164

2,310

2,660

2007

2008

2009

2010

2011

Talent

2010 Highlights

Private Banking:

Continued hiring throughout the crisis

2010: 15% growth (32% internationally)

2011: continue international expansion

Training is a critical part of hiring strategy

–

13 training programs globally

–

Cultural integration is key

Global Investment Management:

New senior sales leadership:

–

Global Institutional

–

Sovereigns

–

U.S. Retirement

–

Highbridge

Institutional

Metrics driven culture

Cross-sell flows

Global Investment Management –

Sales headcount (#)

676

647

638

741

2007

2008

2009

2010

2011

+9% total

+8% total

2

11

Market share gain: core “category killers”

130/30 started in 2004; utilizes research to

invest long and short

$130 million annual research budget; 200

career analysts

5% annualized excess returns since

inception

50% market share

130/30

Performance vs. benchmark (S&P 500 Index)

8.36%

1.67%

15.44%

2.29%

-2.86%

15.06%

1 year

3 year

5 year

Large Cap Core 130/30

Benchmark

+0.38%

+4.53%

+6.07%

Columbus Fixed Income

Acquired through Bank One merger

Long-term horizon based on analysis of

individual securities, rather than macro themes

Strongly rated by key consultants

Strong flows across platform:

Core Bond

High Yield

Intermediate Tax Free

Performance vs. benchmark (Barclays Capital Agg.)

8.38%

7.74%

7.04%

6.54%

5.90%

5.80%

1 year

3 year

5 year

Core Bond (Columbus)

Benchmark

+1.84%

+1.84%

+1.24%

3

12

Market share gain: core “turnaround products”

Revamped entire team

Integrates top-down macro themes with bottoms-

up securities selection

Target diversified sources of returns and

minimize reliance on any single strategy

Build-out complete after two years of investment

Recently upgraded by a number of consultants

New York / London Fixed Income

Performance vs. benchmark (Barclays Capital Agg.)

11.61%

3.14%

3.55%

6.54%

5.90%

5.80%

1 year

3 year

5 year

Core Bond (NY/LON)

Benchmark

+5.07%

-2.76%

-2.25%

Viewed as a pioneer and a global leader in

the field of behavioral based investing

Stock ranking methodology based on

anomalies to be exploited

60 investment professionals globally with

local teams

Current environment more stable for

investment process

Behavioral finance

Europe Equity Fund vs. MSCI Europe Net Index

0.1%

3.4%

2.2%

3.7%

2.8%

-5.6%

-8.5%

1.1%

5.3%

9.5%

7.4%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Excess returns (%)

3

Performance vs. benchmark

10-years

Account return

9.6%

Benchmark return

(3.5%)

Excess return

13.1%

13

Global Merger Arbitrage Fund (2011)

US Select Long Short Fund (2011)

GEM Long Short Fund (2011)

Highbridge

Credit Fund  (2011)

“Muni”

Strategic Income Opportunity

Fund (2011)

Strategic Bond (2010)

Gold / Oil Market Plus Note (2010)

Copper Quarterly Review Note (2010)

Emerging Markets FX Note (2010)

S&P 500 Contingent Buffer Note

(2010)

Market share gain: innovative products and solutions

Gávea

Macro Hedge Fund (2010)

Global Maritime (2010)

Distressed US Real Estate (2011)

Brazil Private Equity, Gávea

(2011)

China Private Equity (2011)

Multi Asset Income Fund (2010)

Thematic Advisory Program (TAP)

(2010)

Highbridge

Dynamic Commodity (2010)

Alternatives Portfolios Fund (2011)

Equity

Fixed Income

Multi-Asset

Hedge Funds / Private Equity / Real Assets

Structures

4

14

Closing thoughts

J.P. Morgan Asset Management

Consistent, strong financial performance

Alpha generation is at the core of what we do

Sophisticated and engaged client base

Organic growth from increasing local coverage, launching innovative products, and

increasing market share

Rapidly growing opportunities in international markets and high-net-worth segment

Strong management team

Fine balance of hiring / growth with preserving culture / performance

Goal is to be the most respected, not the biggest

15

J.P. Morgan is recognized as a global leader in Asset Management

(2010

awards)

#1 Ultra-High-Net-Worth

Private Bank Globally

Institutional Hedge Fund

Manager of the Year

Cash & Money Management

Manager of the Year

#1 Institutional Money Market

Fund Manager Worldwide

Largest U.S. based Hedge

Fund Manager

#1 Most Respected U.S.

Private Bank

U.S. Large Cap Core PM Tom Luddy

named “Money Manager of the Year”

#1 U.S. Real Estate Equity and

Infrastructure Money Manager

#1 U.S. Manager of Currency

Alpha Strategies

#1 U.S. Manager of Active

Extension  Equity Strategies

# 2 Mutual Fund Family

Best Asset Management Company of

the Year –

Asia and Hong Kong

JF Asia Portfolio Manager Victor Lee

named “Best Multi-Strategy Hedge Fund

Manager”

Leading Pan-European Fund

Management Firm

Fund Manager Peter Lawrence 

named “Leading Pan-European

Fund Mgmt Individual”

Gold Standard Fund

Management, UK

Investment Trust Group of the

Year UK

German Fund Service Award

16

February 15, 2011

C

A

R

D

S

E

R

V

I

C

E

S

Gordon Smith, Chief Executive Officer Card Services

*

*

*

*

*

Our

business

is

returning

to

profitability

and

growth

We

are

reaffirming

our

20%+/-

ROE

target

on

reduced

equity

of

$13B

Net

interest

margin

remains

stable

post

CARD

Act

and

we

expect

revenue

margins

to

stabilize

at

12%+/-

Control

of

operating

expenses

has

allowed

us

to

expand

marketing

investment

Credit

loss

trends

continue

to

show

improvement

We

expect

to

see

<6.5%

net

credit

loss

rate

in

1Q11

1

Through-the-cycle

loss

rate

of

4.5%+/-

in

mid

2012

1

We

have

continued

to

invest

in

the

business

through

the

cycle

Our

new

flagship

proprietary

products

are

gaining

traction

Blueprint

is

having

a

positive

impact

on

customer

engagement

We

have

continued

to

expand

our

cobrand

business

by

signing

Ritz-Carlton,

Hyatt

and

Fairmont

Hotels

Our

branch

network

continues

to

generate

1.5mm+/-

new

card

accounts

and

>40%

of

revenue

from

new

merchants

for

Chase

Paymentech

Our

strategy

is

gaining

traction

We

have

gained

234bps

of

sales

market

share

since

2007

1

We

expect

end-of-period

outstandings

to

stabilize

at

$120B

for

Chase

and

$10B

for

WaMu

by

year

end

2011

Executive summary

1 

Excludes WaMu

1

Agenda

Page

2

Our business is returning to profitability and growth

2

Credit loss trends continue to show improvement

12

We have continued to invest in the business through the cycle

19

Our strategy is gaining traction

33

Pretax, pre-LLR income segment performance through the cycle

2010

EOP

outstandings

Sales

volume

2005

2006

2007

2008

2009

2010

Through-

the-cycle

Affluent and

High Net Worth

$37

$148

Pretax, Pre-LLR

income

$1.8

$2.0

$2.1

$1.6

$0.6

$0.1

$1.7 - $1.9

ROE

>30%

>20%

4%

30% - 40%

Mass Affluent

$81

$132

Pretax, Pre-LLR

income

1.2

2.8

2.6

1.5

(1.2)

(2.3)

1.3 - 1.5

ROE

8%

18%

16%

9%

(10)%

(21)%

13% - 17%

Small

Business

$6

$22

Pretax, Pre-LLR

income

0.1

0.1

0.1

(0.0)

(0.3)

(0.3)

0.4 - 0.6

ROE

29%

35%

22%

(6)%

(32)%

(25)%

30% - 40%

Chase

Paymentech¹

N/A

N/A

Pretax, Pre-LLR

income

0.2

0.2

0.3

0.3

0.3

0.3

0.4 - 0.6

ROE

31%

37%

40%

35%

36%

41%

40% - 50%

Card Services

Corporate²

N/A

N/A

Pretax, Pre-LLR

income

0.0

(0.1)

(0.3)

(0.7)

(1.1)

(0.0)

Total Card

Services 

$124

$302

Pretax, Pre-LLR

income (ex. WaMu)

$3.3

$5.0

$4.8

$2.7

($1.7)

($2.2)

$3.8 - $4.6

Reported ROE

16%

23%

21%

5%

(15)%

14%

20%+/-

($ in billions)

1 

Prior to November 2008 pretax, pre-LLR income and ROE for Chase Paymentech

represents Chase’s 51% share of joint venture business; Paymentech

ROE represents return on tangible equity

2 

Card Services Corporate total includes intangible amortization, deferral of loan fees (FAS 91) and securitization income

3

$190

$163

$138

$0

$50

$100

$150

$200

2008

2009

2010

End-of-period outstandings

($ in billions)

Equity applied to the business will be reduced by $2B due to improving

risk profile and size of loan book

1Q09

1Q10

4Q10

Outstandings

–

bankcard debt > $20K, excluding WaMu

Key drivers of equity reduction:

We have reduced our exposure to higher risk, more indebted customers

Our portfolio mix has shifted towards more rewards-engaged customers with lower risk profile

27%

decrease

40%

decrease

4

NIM pre-

CARD Act

Penalty

pricing

Late fees

Over-limit

fees

Due date

rules

Payment

allocation

rules

Pricing

Business

model

changes

NIM post-

CARD Act

Steady state CARD Act impact on net interest margin (NIM) –

bps on outstanding

Business model changes have largely compensated for lost fee revenue

$750mm after-tax impact of CARD Act

5

Revenue margin trends have shown strength across each segment

2005

2006

2007

2008

2009

2010

Steady

State

Affluent and High

Net Worth

NIM

6.7%

6.4%

6.4%

6.5%

7.1%

6.4%

Other income¹

3.6%

3.5%

4.0%

3.9%

3.7%

4.1%

Revenue margin

10.3%

10.0%

10.5%

10.4%

10.8%

10.6%

11% – 13%

Mass Affluent

NIM

9.3%

9.1%

8.9%

8.9%

9.7%

9.7%

Other income¹

1.7%

1.4%

1.3%

1.2%

1.1%

1.1%

Revenue margin

10.9%

10.5%

10.3%

10.1%

10.8%

10.9%

10% – 12%

Small Business²

NIM

6.7%

6.2%

5.0%

5.3%

8.2%

8.2%

Other income¹

5.6%

4.9%

4.5%

3.8%

3.5%

4.4%

Revenue margin

12.3%

11.0%

9.4%

9.0%

11.7%

12.6%

13% – 15%

Total Card Services

(excl. WaMu)

3

NIM

8.7%

8.4%

8.2%

8.2%

9.0%

8.9%

~9%

Other income

1

2.6%

2.0%

2.0%

1.6%

1.6%

2.3%

~3%

Revenue margin

11.3%

10.4%

10.2%

9.8%

10.6%

11.2%

12%+/-

All rates are as a percentage of average outstandings

and excludes WaMu

Note: Revenue component numbers may not equal total revenue margin due to rounding

1 

Other income includes net interchange income, annual fees and other revenue

2 

Small business segment excludes cobrand

partner accounts

3 

Card Services total includes revenue from Chase Paymentech

6

Historically, Chase has generated lower revenue margins vs. competitors

but we have shown strong growth since 2008

1

AXP revenue has been adjusted to exclude estimated rewards costs; 4Q08 data includes a one-time charge of $96mm

associated with an increase to Membership Rewards reserve

2

DFS revenues represent Direct Banking segment fiscal year ending November; 2008 data has been adjusted to exclude $863mm

in VISA/MasterCard litigation payments in 4Q08

Key considerations:

Fee-based charge card

business

Higher yielding, lower

prime business

Higher net interchange

7

Operating expense control continues and investments in infrastructure are

driving efficiencies

1

Headcount includes contractors

8

Safe and secure payment system

Incremental sales

Outsourcing of credit extension to specialist

provider

Guaranteed funding on purchase

transactions

Elimination of cost of cash management

Fraud control

Efficient processing at point of sale

Meets consumer and small business

payment needs at home and abroad

Access to credit for longer-term borrowing

needs

Tool to manage short-term cash flow

Rewards

Consumers

Merchants

Compelling value proposition of credit card:

We are confident in the long-term health of the industry and our business model

9

Changes in payment rate coincide with a decoupling of sales and outstandings

growth

1 

Organic outstandings

excludes balance transfers

(16)%

(12)%

(8)%

(4)%

0%

4%

8%

12%

16%

20%

(400)

(300)

(200)

(100)

0

100

200

300

400

500

Payment rate - YoY change

Sales - YoY growth

Organic outstandings - YoY growth

Trends in outstandings

growth, sales growth and payment rate, excluding WaMu

1

10

$190

$163

$130

1

Run-off balances include balance transfers and terminated partner portfolios

End-of-period outstandings

($ in billions)

$138

1

Loan portfolio is expected to stabilize in the second half of 2011 as WaMu

and

balance transfer portfolios stabilize

11

Agenda

Page

12

Credit loss trends continue to show improvement

12

Our business is returning to profitability and growth

2

We have continued to invest in the business through the cycle

19

Our strategy is gaining traction

33

The credit environment continues to improve as initial jobless claims and

the “short-term”

unemployment rate show signs of stabilization

13

Credit improvements are visible across all delinquency buckets,

improvement in early delinquency is particularly strong

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10

Jan-11

Delinquency $ roll-rate from current to charge-off, excluding

WaMu

(0-180 days past due)

Delinquency $ roll-rate from current to bucket 2, excluding

WaMu

(0-60 days past due)

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10

Jan-11

14

Credit line management strategy

Closed inactive accounts, removing ~$50B of contingent liability

since 2008

Lowered credit lines for high risk customers

Reduced average credit line for new accounts

Portfolio management approach

Assess customers’

debt-to-income and total bankcard debt

Reduced risk profile of new accounts

Refinement of customer based risk model and strategies

Less reliance on promotional pricing

Reduced total outstandings

in promotional pricing

Sample of actions taken:

We have reduced exposure to higher risk customers

15

2008

2010

16%

decrease

1Q09

1Q10

4Q10

40%

decrease

1

Average credit line for new accounts excludes Retail Partner accounts

Average credit line for new accounts, excluding WaMu¹

Open to buy –

customers with bankcard debt > $20K,

excluding WaMu

Line assignment has been right-sized

16

New accounts continue to improve in credit quality

Note: Excludes Retail Partner accounts

1

FICO

and

bankcard

debt

data

represent

portfolio

averages

at

the

time

of

acquisition

2

60+

day

$

delinquency

rate

represents

delinquency

rate

6

months

after

acquisition

for

all

new accounts booked in 2Q08 vs. 2Q10

11%

4%

0%

5%

10%

15%

2008

2010

11%

6%

0%

5%

10%

15%

2008

2010

60+ day $ delinquency rates –

6 months after new account acquisition, excluding WaMu²

Percent of new accounts –

bankcard debt >$20K,

excluding WaMu¹

Percent of new accounts –

FICO <660, excluding WaMu¹

17

$34

$28

$17

$0

$10

$20

$30

$40

$50

2008

2009

2010

Average

outstandings

in

promotional

pricing,

excluding

WaMu

($

in

billions)

Portfolio quality has improved as we have shifted our focus away

from

promotional pricing

50%

decrease

18

Agenda

Page

19

We have continued to invest in the business through the cycle

19

Our business is returning to profitability and growth

2

Credit loss trends continue to show improvement

12

Our strategy is gaining traction

33

Significant progress has been made against our strategy

Create lifelong, engaged relationships

with our customers by being a trusted provider of financial services

Vision

Brand

Rewards

Customer Experience

Implemented premium servicing

model for Chase Sapphire

accounts

Improved key “moment of truth”

servicing strategies, specifically

POS authorization rates,

delivery of replacement cards

and dispute processing

Implemented new early

engagement strategies to drive

increased loyalty

Proprietary rewards program,

Ultimate Rewards, has

surpassed 20mm accounts

Ultimate Rewards customers

generate higher

revenue/account, lower attrition

vs. legacy Chase rewards

accounts

Ultimate Rewards promotions

are driving incremental traffic

and value to our merchant

partners

Consistent YoY

improvement in

Chase brand awareness and

consideration

Strong traction with new

products

Signed Hyatt, Ritz-Carlton and

Fairmont hotels in 2010

20

Product

features

The new Chase rewards products are targeted at specific customer

segments

Products

Small Business

Mass Affluent

Affluent

Product features

21

4Q09

4Q10

Freedom

Sapphire

Ink

Total new accounts acquired for all new Chase rewards

products

1 

First 12 months of spend for 4Q10 new accounts is based on internal estimates

Acquisition efforts with our new rewards products are gaining traction

4Q09

4Q10

Freedom

Sapphire

Ink

First 12 months of spend for all new Chase rewards    

accounts¹

YoY

increase

11%

27%

76%

22

Blueprint helps customers manage their spending and borrowing needs

Key design goals:

Reduce perceived barriers to credit card usage

Providing customers with ultimate flexibility in controlling their spending and borrowing

23

4Q09

1Q10

2Q10

3Q10

4Q10

Blueprint

adoption

is

increasing

and

is

having

a

positive

impact

on

customer

engagement levels 

Feature

Sales

growth

OS

growth

Attrition

Full Pay

Split

Finish It

Total

Blueprint

summary

+16%

+3%

(3)%

Key performance metrics 12 months after activation of feature:

Blueprint average weekly plan activations

+

++

++

+31%

+28%

+15%

+46%

-

24

We continue to selectively add outstanding brands to our cobrand

business

Partners

Strategic 2010 new partners

Deep, long-standing relationships with global

brands

Market leaders in industries such as Travel,

Entertainment and e-tailing

Differentiated products designed to meet

customer needs

Sophisticated data-sharing and cooperative

marketing driven by powerful rewards and

segmentation strategies

25

43%

52%

56%

58%

64%

69%

57%

48%

44%

42%

36%

31%

2005

2006

2007

2008

2009

2010

General purpose credit cards: Non-rewards

General purpose credit cards: Rewards

Note: Excludes Retail Partner accounts

Our portfolio continues to shift towards more rewards-based

relationships

Rewards as a percent of end-of-period outstandings,

excluding WaMu

73%

77%

81%

84%

87%

90%

27%

23%

19%

16%

13%

10%

2005

2006

2007

2008

2009

2010

General purpose credit cards: Non-rewards

General purpose credit cards: Rewards

Rewards as a percent of sales volume, excluding WaMu

26

We have built a distinctive proprietary rewards program, Ultimate Rewards

Rated #1 credit card rewards site

in 2010 by Credit Card Monitor

1

An enterprise loyalty and

marketing asset

Added debit rewards customers,

JPMorgan Private Bank

customers

Strong merchant partnerships

deliver value to our customers

1

#1 rating for reward site based on Credit Card Monitor report produced by Corporate

Insights –

July 31, 2010 report

23

5

<1

Jun-09

Dec-09

Dec-10

Debit

Credit

Ultimate Rewards accounts (millions)

27

Ultimate Rewards has helped our new proprietary rewards products

drive

increased customer engagement

Cumulative 12 month

revenue/account

Average

Outstandings/account

Attrition rate

Online redemption rate

Legacy Chase rewards

account (control)

Ultimate Rewards

account

Comparison of key metrics –

12 months after adoption of Ultimate Rewards

7% higher

5% higher

~400bps lower attrition

rates

10% higher

28

Distance commuted from home to restaurant²

33%

29%

23%

14%

Account distribution

1-2

6-10

10+

Monthly visits

3-5

4.5

20% in same zip code 

10% 2-3 miles

41% 10+ miles

17% 5-10 miles

12% 4-5 miles

1 

Data annualized (through November 2010) and based on Chase credit card customers that use their Chase credit card as their primary credit card for purchases

2 

Distance calculated using  latitude and longitude to measure distance between residence and merchant zip codes

Frequency of restaurant visits

On average, we have generated 4-10X increases in redemptions for key marketing

partners during promotion

Example customer profiling:  restaurant illustration¹

Our card data delivers value to both merchants and cardholders

29

2010 average cost to acquire new accounts (indexed to

Retail branch costs)

The branch network continues to be a key contributor to growth

Note: Excludes Retail Partner accounts

New account distribution by channel, excluding WaMu

1

4

11

0

5

10

15

Retail branch

Online

Direct Mail

11%

25%

35%

24%

31%

34%

46%

30%

24%

14%

7%

19%

2006

2008

2010

Branch

Online

Direct Mail

Other

30

With good credit performance and engagement

1

60+ day $ delinquency rate represents the delinquency rate 6 months after acquisition for all new accounts booked; 2010 data represents all new accounts booked from January 2010

through June 2010

2

Debit active rate represents data for all accounts acquired January through June of each calendar year

46%

49%

53%

0%

25%

50%

75%

2008

2009

2010

Debit active rate for Retail branch sourced new accounts

6 months after acquisition²

700bps

improvement

1.4%

1.0%

0.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2008

2009

2010

60+ day $ delinquency rates 6 months after acquisition

for Retail branch sourced new accounts¹

100bps

improvement

1.5mm+/-

new accounts acquired through the branches

31

Chase Paymentech

has gained market share in the acquiring business

Key business drivers:

Processed more than 20B

payment transactions in 2010

Chase Paymentech

has gained

~40 bps of overall U.S. market

share -

from approximately 11%

to 11.4% from 2009 to 2010

1

Invested in a single platform for

merchant processing

>40% of revenue from new

merchants is being sourced

through the retail branches

100

87

111

2008

2009

2010

100

51

60

65

2008

2009

2010

Total Chase Paymentech

revenue2

(2008 = 100)

Revenues from new sales2

(2008 = 100)

3

32

1  Market share increase based on Chase Paymentech estimates

2  2008 total revenues and revenues from new sales are calculated by annualizing the first 10 months of financial performance and adjusting for seasonality for the combined JV business

3  The Chase Paymentech JV Separation was effective October 31, 2008 when 49% of revenue-producing assets were allocated to First Data

JPMC share of

revenues

immediately post

JV separation

Agenda

Page

33

Our strategy is gaining traction

33

Our business is returning to profitability and growth

2

Credit loss trends continue to show improvement

12

We have continued to invest in the business through the cycle

19

Our new proprietary rewards products are driving improved engagement vs.

legacy Chase products

37%

85%

44%

94%

New Chase products vs. comparable legacy Chase products: 2010 vs. 2007, excluding WaMu

Sales/ statement

Transactions/ 

statement

(33)%

Average $ amount of

balance transfer

14%

12%

(22)%

(28)%

34

For customers that increased spend with Chase, we have driven increased

wallet share and revenue even while payment rates have risen

For customers where YoY

spend increased

Transactors

Revolvers

Payment rate:

Payment rate:

77%

89%

15%

20%

Interchange

revenue

Interchange

and NIM

1

Transactors

are

customers

with

monthly

spending

of

>75%

of

their

total

bankcard

balances

or

customers

with

total

revolving

bankcard

balance

of

<$300

2

Revolvers

represent

all

customers

with

an

open

account

excluding

transactors

1

2

Chase share of balances

65%

57%

2009

2010

31%

34%

2009

2010

35

Sales and transaction volumes hit record levels in 2010

1

Sales data excludes cash advances and balance transfers

Sales volume and number of sales transactions, excluding WaMu¹

YoY

sales volume growth for January 2011 was 10.1%

36

24.2%

18.4%

13.6%

9.9%

6.3%

5.9%

AXP U.S.

Card

Chase¹

BAC2

C

COF

DFS

Source: Earnings releases; Internal Chase estimates

Note: GPCC includes consumer, small business, charge card but excludes commercial

1

Chase

sales

data

excludes

WaMu,

cash

advances,

balance

transfers

and

private

label

2 

BAC includes U.S. and International Consumer, excludes Small Business

3

C includes C Branded and excludes non-core Retail Partner portfolios

4

DFS sales data excludes cash advances

Chase has gained sales market share vs. competitors over the past 3 years

2010 General Purpose Credit Card (GPCC) sales volume

market share

4

3

Change in GPCC sales volume market share (bps) —

2007

vs. 2010

37

Key messages

Credit loss trends continue to show improvement across all aspects of the portfolio

(expect <6.5% net credit loss rate in 1Q11, and through the cycle loss rate of 4.5%

by mid-2012

1

)

We have continued to invest through the cycle across all of our businesses

The new products are gaining traction helping to drive record sales levels and

increased market share

We expect outstandings

to stabilize at $120B for Chase and $10B for WaMu

by

year end 2011

We have the right strategy to succeed in a post CARD Act environment and

achieve our ROE target of 20%+/-

on lower equity

1 

Excludes WaMu

38

February 15, 2011

I

N

V

E

S

T

M

E

N

T

B

A

N

K

Jes Staley, Investment Bank Chief Executive Officer

*

*

*

*

*

Business evolution: 2005-2010

2005

2006

2007

2008

2009

2010

Global Markets¹

8

8

6

5

3

2

Fixed Income Markets

5

7

5

4

3

1

Equity Markets

8

8

8

5

5

4

Investment Banking²

IB Fees

2

2

2

2

1

1

Advisory

2

2

4

1

3

4

Equity underwriting

4

5

2

2

1

3

Syndicated loans

1

1

1

1

1

1

Long-term debt

2

3

3

3

1

2

EquityResearch³

US

7

6

3

2

2

1

Europe

10

10

8

8

4

2

Fixed IncomeResearch

3

US

2

2

2

2

2

1

Europe

1

1

1

1

2nd

Tier

3rd

Tier

Top 3

Rankings

1

1    JPMorgan

estimates

share

using

public

disclosure

of

Top

10

competitors;

2010

ranking

utilizes

available

data

as

of

February

11th

2011;

‘05-’07

is

heritage

JPM.

Pro-formas

based

on

industry

mergers:

JPM

‘08-’10,

competitors

’05-’10

2    Source: Dealogic, pro forma for industry mergers. Except for IB fees, rankings are volume based

3    Institutional Investor; All-Europe Fixed Income rankings not published for 2009 and 2010

2010 Performance: Strength during a recovery year

Near record performance

Revenue: $26.2B

Earnings: $6.6B

ROE of 17% on capital of $40B

Well capitalized (Tier 1 common ratios):

Basel 2:   13.0%

Basel 2.5:  9.2%

Basel 3:     7.2%

1

Dealogic

1

Dealogic

Investment Banking leadership:

#1 in Global IB Fees: 8% market share

1

Record Debt underwriting revenue

Fixed Income Markets: market leader

Asia Pacific: record revenue

Commodities: upside potential

Equities: building electronic platform

Business summary

Financial results

2

2010 Accomplishments: Positioned for renewed client growth

Risk Management

Trading discipline

Prudent capital management

Strategy

Clients

Transitioned from “safe harbor”

to “port of opportunity”

Strengthened senior client coverage

Expanded in key markets

China JV: First Capital Securities

Global Corporate Bank partnership with TSS

International

Technology

Strategic

Re-engineering

Program

(SRP):

on

target,

in

3

rd

year

Electronic offering improved: competitive in US and Europe

Strategic derivative solutions in FX and commodities

Sempra acquisition

Oil and base metals expertise; 1,000 new clients

Commodities

3

2010 Accomplishments: Comprehensive solutions

Positioned client balance sheets for growth, raised over $500B in debt and equity

Led more equity and equity-related offerings than any another firm

Ranked #1 in both high grade and high yield bonds

Raised ~$90B for U.S. state and local governments, healthcare organizations, educational

institutions and non-profits

Led

the

largest

municipal

transaction

in

2010

–

sole

bookrunner

for

the

State

of

California's

$10B Revenue Anticipation Notes

Advised on 311 mergers and acquisitions globally

Led large and complex transactions

Arranged / loaned over $350B for 420 clients globally

Ranked #1 in Global Loan Syndications

First firm to re-enter the North American CMBS market

First deal without government-sponsored lending support

Source:

2010

Dealogic

volume-based

league

tables;

lead-left

bookrunner

basis

for

loans.

US

municipal/nonprofit

capital

raised

per

Thomson

and

internal

sources

Source:

2010

Dealogic

volume-based

league

tables;

lead-left

bookrunner

basis

for

loans.

US

municipal/nonprofit

capital

raised

per

Thomson

and

internal

sources

Issuer clients:  ~5,000

Global IB fees wallet share: 8%

4

2010 Accomplishments: A world-class markets franchise

3,500+ Fixed Income and 2,000+ Equities

sales and trading professionals

800+ research analysts

23 global trading centers

110+ global trading desks

3mm average daily trades

Investor clients:  ~16,000

Global Markets revenue share: 12%

JPM markets reported revenue ($ in billions)

$12

$10

$6

$22

$20

2006

2007

2008

2009

2010

8%

9%

10%

13%

12%

2006

2007

2008

2009

3Q10 YTD

JPM markets revenue share1

(%)

Rank:    #8                  #6                  #5            

#3                   #2

1 

JPM share of top 10 competitors

5

High volume

markets

Average notional 

($ in millions)

Annual volume 

(est. trades per year)

Index Credit

Derivative

$50-250

44,300

NYMEX Gas

Swap & Futures

$5-20

68,300

G3 IR 

Swap

$50-200

150,000

Index Equity

Option

$50-100

260,000

FX Spot

$2-25

68,300,000

2010 Accomplishments: Flow-driven derivatives business

IB average net revenue1: 2006-2010

1 

Net revenue excludes net markdowns on legacy positions; revenue approximated to round percentages

Rates

40%

Commodities

10%

Equities

20%

Credit

20%

FX

10%

Non-Derivative

revenue

70%

Derivative

revenue

30%

Flow

85%

Exotic

15%

6

$37

$39

$21

$84

$76

$47

0

20

40

60

80

100

120

140

160

180

2005

2006

2007

2008

2009

2010

0

20

40

60

80

100

120

140

160

180

Daily Avg. Mkts. Rev.

VaR

2010 Accomplishments: Revenue to risk relationship

Note: 2005-2010 IB trading VaR

measured at 95% confidence level. 2005-2008 IB trading VaR

was previously reported on a 99% confidence level

IB trading 

loss days

52              33               46               97           

42                 8

Daily average markets revenue and VaR

($ in millions)

7

2011 Initiatives: Increasing effectiveness for clients with complex needs

Strategy

Clients

Vigilant focus on clients’

long-term interests

360 degree coverage

Technology

Streamlining processes, reducing cost of ownership

Flexible framework supports quick product introduction

Leverage flow, capture internalization, optimize cost

Commodities

Unparalleled strength across physical and financial markets

Client flow and structured transactions drive growth

International

Developing markets

Prime Brokerage

Global

Corporate

Bank

–

3,200

client

initiative

Risk management

Credit and market risk discipline

Efficient capital management; ongoing regulatory focus

8

2011 Initiatives: International –

developing markets

9

Global Corporate

Bank

3,200 client initiative

Banker additions

Extending credit

Increasing product capabilities

Prime Brokerage

Leveraging U.S. leadership to develop EMEA and Asia

Significant progress developing international core competencies

Clearing infrastructure

Global reporting in local time zones

Global synthetic financing capabilities

New stock borrow loan platform

Hiring experienced talent

Platform extension well-received by existing clients

Strong pipeline

2011 Initiatives: International –

Prime Brokerage and Global Corporate

Bank

10

2011 Initiatives: Commodities –

focus on execution

Principal locations

Solutions

Capabilities

Research

Financial

Physical

Oil

Power & Gas

Environmental Markets

Metals

Agricultural

Investor products

600 employees

10+ main office locations

100+ warehouses in 11 locations

Over 2,000 active clients including corporates,

investors, and governments

Diversification benefits with Fixed Income and

Equities businesses

Innovative risk management

Commodity linked financing

Asset optimization

Storage and transportation

Product offtake

and supply arrangements

Financial and physical

1

Includes oil storage, power & gas assets, metals warehouses, bullion vaults and vessels

Main Office Locations

Main Physical Assets¹

11

2011 Initiatives: Commodities –

focus on execution

The

breadth

and

depth

of

our

financial

and

physical

capabilities

is

unparalleled

Full

Requirements

Load Serving for

Electric

Cooperatives

Crude Supply

Intermediation for

Refineries

Jet Fuel Hedging

for Global Airlines

Market making

Financing

Commodities-linked

financing

Risk management

Research

Product off-take

and supply

arrangements

Commodity

sourcing, storage

and transportation

Asset optimization

(restructuring,

rebalancing, and

monetizing)

Client examples

12

2011 Initiatives: Technology –

Strategic Re-engineering Program (SRP)

2009

2010

2011

2012

2013

Leadership and

monetization

Innovation and time to

market

Consolidation and

re-engineering

Creativity

Single client view

Complexity handled

easily

Capacity

Efficiency

Control

Financial

Cost savings

Revenue growth

Comprehensive

overhaul of platforms

and client interface

13

Risk Management: Well-established, disciplined processes

Conflicts office

Reputational

Risk committee

Client

activity

10,000 potential conflicts reviewed

1,200 commitments examined

700+ lending transactions approved

Risk committee

Balance Sheet

committee

Commitments

committee

14

Derivative receivables, net (12/31/10; $ in billions)

Risk Management: Prudent counterparty credit risk management

152

80

64

(16)

(72)

266

143

Derivative

receivables,

gross of

collateral

Less cash

collateral

Derivative

receivables,

net of cash

collateral

Less other

less liquid

collateral

Derivative

receivables,

net of all

collateral

Note:

Derivatives,

gross

of

collateral

and

net

of

collateral

for

2009

was

$146B

and

$65B,

respectively

Risk Group

2010

Investment grade

74%

Sub-investment grade

26%

at

12/31/08

Maturity (years)

2010

Less than 1 year

18%

Between 1 and 5 years

38%

Greater than 5 years

44%

79

88

Gross

derivatives

notional

outstanding

($T)

at

12/31/08

at 12/31/10

at 12/31/08

Other

83%

Top

10

17%

$16B

~6,000 clients

15

Risk Management: IB municipal exposure

2010 US State / municipal exposure

IB data excludes: State and Municipal securities inventory, Not-for-Profit traditional credit products ($6.4B) and derivatives ($1.8B)

Derivatives: $3B

~350 clients

Primarily pay-fixed swaps

hedging variable-rate debt

Traditional Credit Products: $19B

~130 clients

Primarily liquidity back-stops,

Letters of Credit and term loans

AAA to AA-

78%

A+ to A-

14%

BBB+ to

BBB-

7%

BB+ and

below

1%

AAA to AA-

45%

A+ to A-

39%

BBB+ to

BBB-

8%

BB+ and

below

7%

16

Risk Management: Basel 3 Tier 1 Common Ratio already at 7.2%

$462

$332

$43

$100

$390

$160

$550

$490

$289

Basel 1

4Q08

Basel 1

4Q10

Basel 2

impact

Basel 2

4Q10

Basel 2.5

impact

Basel 2.5

4Q10

Basel 3

impact

Basel 3

4Q10

Basel 3

4Q11

Allocated equity ($B)

Tier 1 common ratio

40

11.8%

40

13.0%

40

7.2%

40

8.0%

IB Tier 1 common ratio walk forward ($ in billions)

Risk Weighted Assets (RWA)

Basel 1

Basel 2

Basel 2.5

40

9.2%

Basel 3

17

Regulation: Continue to serve clients

Update

Strong governance programs already in place:

350 people, 75+ projects

Additional 300 rules to be issued/analyzed

Clearing and Swap Execution Facilities (SEFs):

Mandating clearing of most derivatives with U.S. nexus

Meaningful portion of volume; less significant revenue impact

Maintain market leadership, comply before deadlines

Unresolved: margin, capital, non-U.S.

Non-Bank Subsidiary (NBS) swap “push out”: 

Portions of below inv. grade CDS, equity and commodities derivatives affected

May “push out”

additional activities to support client requests

No significant revenue and capital changes expected

18

JPM IB: Achieving potential

19