-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, MqO4XPnAylm0gzI/tdzfSvFIEAraIsmCbWFDaVbMR6Qy9ef0E6UrTlSeFFqIof3G oRVksKnc7cNBxQP2FaUmqg== 0000068100-95-000367.txt : 199507140000068100-95-000367.hdr.sgml : 19950714 ACCESSION NUMBER: 0000068100-95-000367 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950713 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950713 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MORGAN J P & CO INC CENTRAL INDEX KEY: 0000068100 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 132625764 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05885 FILM NUMBER: 95553736 BUSINESS ADDRESS: STREET 1: 60 WALL ST CITY: NEW YORK STATE: NY ZIP: 10260 BUSINESS PHONE: 2124832323 MAIL ADDRESS: STREET 1: P O BOX 271 STREET 2: C/O WILLIAM D HALL CITY: WILMINGTON STATE: DE ZIP: 19899 8-K 1 COVER PAGES FOR EARNINGS RELEASE 1 _____________________________________________________________________ ______ _____________________________________________________________________ ______ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ______________ Date of Report (Date of earliest event reported) July 13, 1995 J.P. MORGAN & CO. INCORPORATED (Exact name of registrant as specified in its charter) DELAWARE 1-5885 13-2625764 (State or other juris- (Commission (IRS Employer diction of File Number) Identification No.) incorporation) 60 WALL STREET, NEW YORK, NEW YORK 10260- 0060 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (212) 483-2323 _________________________________________________________________ (Former name or former address, if changed since last report) _____________________________________________________________________ ______ _____________________________________________________________________ ______ 2 ITEM 5. OTHER EVENTS On July 13, 1995, the Registrant issued a press release announcing its earnings for the three-month period ended June 30, 1995. A copy of such press release is filed herein as Exhibit 99. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Financial Statements NONE. The financial statements included in this report are not required to be filed as part of this report. (b) Pro Forma Financial Information NONE. (c) Exhibits 99. Copy of press release of J.P. Morgan & Co. Incorporated dated July 13, 1995. 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. J.P. MORGAN & CO. INCORPORATED ______________________________ (REGISTRANT) /s/ PATRICIA A. JONES ____________________________ NAME: PATRICIA A. JONES TITLE: MANAGING DIRECTOR DATE: July 13, 1995 EX-99 2 EARNINGS RELEASE FOR QUARTER ENDED JUNE 30, 1995 1 July 13, 1995 J.P. MORGAN REPORTS 1995 SECOND QUARTER RESULTS J.P. Morgan & Co. Incorporated reported net income of $315 million in the second quarter of 1995, down 10% from the second quarter of 1994. Net income in the first quarter of this year was $255 million, including a special charge of $55 million ($33 million after tax, or $0.17 per share) related primarily to severance. Second quarter earnings per share were $1.56 versus $1.73 a year earlier and $1.27 in the 1995 first quarter. Net income for the first six months of 1995 totaled $570 million, including the special charge, compared with $695 million in the first six months of 1994. Six-month earnings per share were $2.83 versus $3.43 a year ago. Douglas A. Warner III, chairman, said: "Second quarter results continued the improvement reported in the first quarter. Challenging conditions in a number of markets again drove home the value of global diversification in our core business activities." SECOND QUARTER RESULTS AT A GLANCE
In millions of dollars, First except per share data Second quarter quarter 1995 1994 1995 _____________________________________________________________________ ________ Revenues $1,449 $1,466 $1,388 Operating expenses (984) (936) (1,002) Income taxes (150) (180) (131) _____________________________________________________________________ _________ Net income $ 315 $ 350 $ 255 Net income per share $ 1.56 $ 1.73 $ 1.27 _____________________________________________________________________ _________ Dividends declared per $ 0.75 $ 0.68 $ 0.75 share _____________________________________________________________________ ____ _____
REVENUES in the second quarter were approximately even with those of a year ago: -Combined trading and related net interest revenue rose 10% to $333 million. -Corporate finance revenue was up 34% to $117 million. Morgan's market share in capital raising grew, and advisory fees increased. Investment management fees also rose, while credit-related fees were lower. -Net equity investment securities gains were $132 million in the second quarter versus $264 million in the corresponding 1994 quarter. OPERATING EXPENSES rose 5% from a year ago. In other developments, J.P. Morgan, as previously announced, has agreed to sell its U.S., U.K., and global securities custody businesses and U.S. commercial paper issuing and paying agency business. The move reflects a sharpening of the firm's strategic focus on core global banking activities. The dispositions will produce a net gain, to be recorded over time, and are expected to have no material effect on Morgan's ongoing consolidated results. The remainder of this release contains information on specific areas of results, a financial summary, and the consolidated financial statements. 2 REVENUES Revenues totaled $1.449 billion in the second quarter of 1995, compared with $1.466 billion a year earlier. Net interest revenue totaled $508 million in the second quarter of 1995, compared with $540 million in the year-earlier quarter. The 1994 quarter included approximately $35 million of past-due interest payments on Brazilian assets and $50 million in interest revenue associated with income tax refunds. Excluding these items, net interest revenue rose 12% from the 1994 second quarter, primarily due to asset and liability management activities, principally in the United States. Trading revenue increased 34% to $305 million from the second quarter of 1994. Reported trading revenue does not include net interest revenue associated with trading activities, which was $28 million in the second quarter of 1995 and $74 million in the second quarter of 1994. Combined trading and related net interest revenue rose 10% to $333 million from a year earlier. (See the table of combined trading and related net interest revenue by principal markets on page 9.) Combined revenue from debt instruments was $136 million, an increase of $52 million from a year earlier, with improved performance in Latin America and Asia that was partially offset by mortgage-backed securities results. Combined revenue from equities and commodities was up slightly in the second quarter, as was combined revenue from foreign exchange. Combined trading and net interest revenue from swaps and other interest rate contracts totaled $106 million versus $132 million a year ago. Corporate finance revenue rose 34% to $117 million in the second quarter from the year-earlier quarter. Underwriting revenue totaled $41 million, 64% higher than the corresponding 1994 quarter, and advisory and syndication fees increased 23% to $76 million. Credit-related fees were $41 million in the second quarter, 25% lower than in the second quarter of 1994, primarily due to lower securities lending revenue. Investment management fees increased 9% to $138 million from a year earlier, reflecting an increase in assets under management, primarily from net new business. Operational service fees in the second quarter totaled $140 million, unchanged from a year ago. Net investment securities gains were $33 million in the second quarter, compared with net gains of $35 million in the second quarter of 1994. Other revenue was $167 million in the second quarter, compared with $254 million in the 1994 second quarter. The 1995 second quarter reflected net equity investment securities gains of $132 million, versus $264 million in the year-earlier quarter, when $255 million was generated from the sale of a portion of the firm's investment in Columbia/HCA Corporation common stock. 3 OPERATING EXPENSES Operating expenses were $984 million in the second quarter of 1995, 5% higher than a year earlier. The weakening in the dollar's value accounted for 3 percentage points of the increase. Employee compensation and benefits expenses rose, mostly due to an increase in salary expense reflecting growth in staff from a year ago. Technology and communications expenses were $165 million, 14% higher than a year ago, mainly reflecting expenditures on business support and development and increases in market information costs. Expense management initiatives begun in the first quarter of 1995 continued into the second quarter. Excluding the special charge in the first quarter of 1995, operating expenses rose 4% from the prior quarter because of an increase in accrued incentive compensation in line with higher earnings. Expenses other than employee compensation and benefits were lower than in the first quarter of 1995. At June 30, 1995, staff totaled 16,267 employees compared with 17,055 employees at December 31, 1994. Income tax expense of $150 million in the second quarter reflects an effective tax rate of 32%, down from an effective tax rate of 34% in the second quarter of 1994. ASSETS Total assets were $167 billion at June 30, 1995, unchanged from the total at March 31, 1995. Nonperforming assets decreased by $30 million to $187 million during the second quarter as new classifications were more than offset by charge-offs, and sales and repayments. No provision for credit losses was deemed necessary in the 1995 second quarter. The allowance for credit losses was $1.132 billion at June 30, 1995. (For details, see asset quality tables on page 10.) CAPITAL At June 30, 1995, J.P. Morgan's estimated Tier 1 and total risk-based capital ratios were 8.7% and 12.9%, respectively, compared with Tier 1 and total risk-based capital ratios of 8.9% and 13.2%, respectively, at March 31, 1995. The June 30, 1995, leverage ratio was 6.0%, versus 5.9% at March 31, 1995. J.P. Morgan's risk-based capital and leverage ratios remain well above the minimum standards set by the Federal Reserve Board. At June 30, 1995, stockholders' equity included approximately $459 million of net unrealized appreciation on debt investment and marketable equity investment securities, net the related deferred tax liability of $287 million. This compares with $449 million of net unrealized appreciation at March 31, 1995. The unrealized appreciation on debt investment securities was $283 million and $227 million at June 30, 1995, and at March 31, 1995, respectively. The unrealized appreciation on marketable equity investment securities was $463 million at June 30, 1995, and $498 million at March 31, 1995. # # # J.P. Morgan is a global banking firm that serves clients with complex financial needs through an integrated range of advisory, financing, trading, investment, and related capabilities. Attached are the financial summary, the financial statements, the combined trading and related net interest revenue table, and the asset quality tables. J.P. Morgan news releases, including quarterly financial results, are available on the Internet (http://www.jpmorgan.com). 4 FINANCIAL SUMMARY J.P. Morgan & Co. Incorporated _____________________________________________________________________ _____________
Dollars in millions, except per share data Second Quarter First Six Months __________________________ Quarter _________________________ 1995 1994 1995 1995 1994 _____________________________________________________________________ _____________ Net income $315 $350 $255 $570 $695 PER COMMON SHARE Net income (a) $ 1.56 $ 1.73 $ 1.27 $ 2.83 $ 3.43 Dividends 0.75 0.68 0.75 1.50 1.36 declared Book value (b) 48.14 46.86 47.19 _____________________________________________________________________ _____________ Weighted- average number of common and common equivalent 198,241,3 200,011,0 196,905,1 197,724,0 200,473,4 shares 01 49 06 69 03 outstanding _____________________________________________________________________ _____________ Dividends declared on $141 $130 $141 $282 $261 common stock Dividends declared on 6 5 6 12 9 preferred stock SELECTED RATIOS Annualized rate of return on average common stockholders' 13.4 % 14.8 % 11.1 % 12.3 % 14.8 % equity (c) As % of period- end total assets: Common 5.6 5.8 5.5 equity Total equity 5.9 6.1 5.8 Regulatory capital ratios (d) Tier 1 risk- based capital 8.7 9.3 8.9 ratio Total risk- based 12.9 13.5 13.2 capital ratio Leverage 6.0 6.2 5.9 ratio _____________________________________________________________________ _____________ AVERAGE BALANCES Debt investment $ 20,659 $ 20,244 $ 22,720 $ 21,684 $ 19,801 securities (e) Loans 24,639 23,968 23,667 24,156 24,504 Total interest- 128,235 134,177 135,310 132,169 135,543 earning assets Total assets 174,502 173,630 175,694 175,095 174,693 Total interest- bearing 124,177 126,587 129,279 126,714 128,100 liabilities Total liabilities 164,753 163,806 166,128 165,437 164,858 Common stockholders' 9,255 9,330 9,072 9,164 9,341 equity Total stockholders' 9,749 9,824 9,566 9,658 9,835 equity Net interest earnings (fully taxable 535 570 529 1,064 996 basis) Net yield on interest- earning assets 1.67 % 1.70 % 1.59 % 1.62 % 1.48 % _____________________________________________________________________ _____________ Employees at period-end 16,267 15,745 16,443 _____________________________________________________________________ _____________ (a) Earnings per share amounts represent both primary and fully diluted earnings per share, except for the six months ended June 30, 1995. Fully diluted earnings per share for the six months ended June 30, 1995, was $2.81. (b) Excluding the impact of SFAS No. 115, book value per common share would have been $45.78, $43.36 and $44.87 for the three months ended June 30, 1995, June 30, 1994, and March 31, 1995 respectively. (c) Excluding the impact of SFAS No. 115, the rate of return on average common stockholders' equity would have been 14.1%, 16.6% and 11.7% for the three months ended June 30, 1995, June 30, 1994, and March 31, 1995 respectively, and 12.9% and 16.7% for the six months ended June 30, 1995 and 1994. (d) In accordance with Federal Reserve Board guidelines, these ratios exclude the equity, assets and off-balance-sheet exposures of J.P. Morgan Securities, Inc. and the effect of SFAS No. 115. Risk-based capital ratios for June 30, 1995, are estimates. (e) Average debt investment securities are computed based on historical amortized cost, excluding the effects of SFAS No. 115 adjustments.
5 CONSOLIDATED STATEMENT OF INCOME J.P. Morgan & Co. Incorporated _____________________________________________________________________ _____________
In millions, except per share data Three months ended _________________________________________________________ June June Increase March 31 Increase 30 30 (Decreas 1995 (Decreas 1995 1994 e) e) _________________________________________________________ NET INTEREST REVENUE Interest revenue $2,405 $2,031 $374 $2,470 ($65) Interest expense 1,897 1,491 406 1,970 (73) _____________________________________________________________________ _____________ Net interest revenue 508 540 (32) 500 8 NONINTEREST REVENUE Trading revenue 305 228 77 303 2 Corporate finance 117 87 30 114 3 revenue Credit-related fees 41 55 (14) 43 (2) Investment management fees 138 127 11 130 8 Operational service 140 140 - 140 - fees Net investment securities 33 35 (2) 9 24 gains Other revenue 167 254 (87) 149 18 _____________________________________________________________________ _____________ Total noninterest 941 926 15 888 53 revenue Total revenue 1,449 1,466 (17) 1,388 61 OPERATING EXPENSES Employee compensation and 616 592 24 626 (10) benefits Net occupancy 79 69 10 80 (1) Technology and communications 165 145 20 172 (7) Other expenses 124 130 (6) 124 - _____________________________________________________________________ _____________ Total operating 984 936 48 1,002 (18) expenses Income before income taxes 465 530 (65) 386 79 Income taxes 150 180 (30) 131 19 _____________________________________________________________________ _____________ Net income 315 350 (35) 255 60 PER COMMON SHARE Net income (a) $1.56 $1.73 ($0.17) $1.27 $0.29 Dividends declared 0.75 0.68 0.07 0.75 - _____________________________________________________________________ _____________ (a) Earnings per share amounts represent both primary and fully diluted earnings per share.
6 CONSOLIDATED STATEMENT OF INCOME J.P. Morgan & Co. Incorporated _____________________________________________________________________ _____________
In millions, except per share data Six months ended _______________________________________________________ June 30 June 30 Increase 1995 1994 (Decrease) _______________________________________________________ NET INTEREST REVENUE Interest revenue $4,875 $3,868 $1,007 Interest expense 3,867 2,931 936 _____________________________________________________________________ _____________ Net interest revenue 1,008 937 71 NONINTEREST REVENUE Trading revenue 608 584 24 Corporate finance 231 204 27 revenue Credit-related fees 84 111 (27) Investment management fees 268 254 14 Operational service 280 284 (4) fees Net investment securities 42 126 (84) gains Other revenue 316 357 (41) _____________________________________________________________________ _____________ Total noninterest 1,829 1,920 (91) revenue Total revenue 2,837 2,857 (20) OPERATING EXPENSES Employee compensation and 1,242 1,140 102 benefits Net occupancy 159 133 26 Technology and communications 337 274 63 Other expenses 248 241 7 _____________________________________________________________________ _____________ Total operating 1,986 1,788 198 expenses Income before income taxes 851 1,069 (218) Income taxes 281 374 (93) _____________________________________________________________________ _____________ Net income 570 695 (125) PER COMMON SHARE Net income (a) $2.83 $3.43 ($0.60) Dividends declared 1.50 1.36 0.14 _____________________________________________________________________ _____________ (a) See Financial Summary for per common share data assuming full dilution.
7 CONSOLIDATED BALANCE SHEET J.P. Morgan & Co. Incorporated _____________________________________________________________________ _____________
Dollars in millions June 30 March 31 December 31 1995 1995 1994 ________________________________________________ ASSETS Cash and due from banks $ 1,812 $ 1,153 $ 2,210 Interest-earning deposits with banks 1,736 1,650 1,362 Debt investment securities available-for-sale carried at fair value 20,416 21,655 22,657 Trading account assets 68,259 68,198 57,065 Securities purchased under agreements to resell ($26,127 in June 1995, $27,434 in March 1995, and $21,170 in December 1994) and federal 26,209 27,478 21,350 funds sold Securities borrowed 10,313 11,073 12,127 Loans 24,043 24,434 22,080 Less: allowance for credit 1,132 1,132 1,131 losses _____________________________________________________________________ _____________ Net loans 22,911 23,302 20,949 Customers' acceptance 266 658 586 liability Accrued interest and accounts receivable 3,214 3,011 5,028 Premises and equipment 3,438 3,395 3,318 Less: accumulated 1,420 1,361 1,302 depreciation _____________________________________________________________________ _____________ Premises and equipment, net 2,018 2,034 2,016 Other assets 9,406 6,865 9,567 _____________________________________________________________________ _____________ Total assets 166,560 167,077 154,917 _____________________________________________________________________ _____________ LIABILITIES Noninterest-bearing deposits: In offices in the U.S. 3,494 2,889 3,693 In offices outside the 995 682 767 U.S. Interest-bearing deposits: In offices in the U.S. 2,156 2,015 1,826 In offices outside the 38,671 41,238 36,799 U.S. _____________________________________________________________________ _____________ Total deposits 45,316 46,824 43,085 Trading account liabilities 42,404 45,210 36,407 Securities sold under agreements to repurchase ($32,864 in June 1995, $32,884 in March 1995, and $30,179 in December 1994) and 38,496 35,843 35,768 federal funds purchased Commercial paper 1,903 2,309 3,507 Other liabilities for borrowed money 12,068 11,334 10,900 Accounts payable and accrued expenses 4,804 3,949 6,231 Liability on acceptances 266 658 586 Long-term debt not qualifying as risk-based capital 5,759 5,009 3,605 Other liabilities 2,340 3,018 2,063 _____________________________________________________________________ _____________ 153,356 154,154 142,152 Long-term debt qualifying as risk-based capital 3,333 3,283 3,197 _____________________________________________________________________ _____________ Total liabilities 156,689 157,437 145,349 STOCKHOLDERS' EQUITY Preferred stock (authorized shares: 10,000,000): Adjustable rate cumulative preferred stock (issued and outstanding: 2,444,300) 244 244 244 Variable cumulative preferred stock (issued and 250 250 250 outstanding: 250,000) Common stock, $2.50 par value (authorized shares: 500,000,000; issued: 200,674,673 in June 1995, 200,672,173 in March 1995 and 502 502 502 200,668,373 in December 1994) Capital surplus 1,441 1,448 1,452 Retained earnings 7,315 7,149 7,044 Net unrealized gains on investment securities, net of 459 449 456 taxes Other 407 368 367 _____________________________________________________________________ _____________ 10,618 10,410 10,315 Less: treasury stock (12,856,867 shares in June 1995, 13,272,339 shares in March 1995 and 12,966,917 747 770 747 shares in December 1994) at cost _____________________________________________________________________ _____________ Total stockholders' equity 9,871 9,640 9,568 _____________________________________________________________________ _____________ Total liabilities and stockholders' equity 166,560 167,077 154,917 _____________________________________________________________________ _____________
8 CONSOLIDATED STATEMENT OF CONDITION Morgan Guaranty Trust Company of New York _____________________________________________________________________ _____________
Dollars in millions June 30 December 1995 31 1994 _________________________________ ASSETS Cash and due from banks $ 1,743 $ 2,182 Interest-earning deposits with banks 1,791 1,605 Debt investment securities available-for- sale 17,590 21,292 carried at fair value Trading account assets 56,060 45,386 Securities purchased under agreements to resell 17,396 16,562 and federal funds sold Loans 20,980 19,397 Less: allowance for credit losses 1,027 1,025 _____________________________________________________________________ _____________ Net loans 19,953 18,372 Customers' acceptance liability 216 556 Accrued interest and accounts receivable 3,182 3,594 Premises and equipment 3,054 2,967 Less: accumulated depreciation 1,247 1,149 _____________________________________________________________________ _____________ Premises and equipment, net 1,807 1,818 Other assets 8,167 7,360 _____________________________________________________________________ _____________ Total assets 127,905 118,727 _____________________________________________________________________ _____________ LIABILITIES Noninterest-bearing deposits: In offices in the U.S. 3,400 3,698 In offices outside the U.S. 1,030 770 Interest-bearing deposits: In offices in the U.S. 1,931 1,480 In offices outside the U.S. 38,444 38,566 _____________________________________________________________________ _____________ Total deposits 44,805 44,514 Trading account liabilities 38,009 30,730 Securities sold under agreements to repurchase 21,290 22,099 and federal funds purchased Other liabilities for borrowed money 5,634 5,320 Accounts payable and accrued expenses 3,448 2,902 Liability on acceptances 216 556 Long-term debt not qualifying as risk-based 3,167 1,968 capital Other liabilities 2,243 2,080 _____________________________________________________________________ _____________ 118,812 110,169 Long-term debt qualifying as risk-based 1,224 1,249 capital _____________________________________________________________________ _____________ Total liabilities 120,036 111,418 STOCKHOLDER'S EQUITY Preferred stock, $100 par value (authorized shares: 2,500,000) - - Common stock, $25 par value (authorized and outstanding shares: 250 250 10,000,000) Surplus 2,820 2,670 Undivided profits 4,644 4,266 Net unrealized gains on investment securities, net of 158 124 taxes Foreign currency translation (3) (1) _____________________________________________________________________ _____________ Total stockholder's equity 7,869 7,309 _____________________________________________________________________ _____________ Total liabilities and stockholder's equity 127,905 118,727 _____________________________________________________________________ _____________ Member of the Federal Reserve System and the Federal Deposit Insurance Corporation.
9 COMBINED TRADING AND RELATED NET INTEREST REVENUE J.P. Morgan & Co. Incorporated _____________________________________________________________________ _____________
Dollars in millions Foreign Swaps and exchange other spot and Equities interest Debt option and rate contracts instrumen contract commoditi Total ts s es _____________________________________________________________________ _____________ SECOND QUARTER 1995 Trading revenue $100 $73 $24 $108 $305 Net interest revenue* 6 63 (1) (40) 28 _____________________________________________________________________ _____________ Combined total 106 136 23 68 333 _____________________________________________________________________ _____________ SECOND QUARTER 1994 Trading revenue 126 (3) 27 78 228 Net interest 6 87 (5) (14) 74 revenue _____________________________________________________________________ _____________ Combined total 132 84 22 64 302 _____________________________________________________________________ _____________ SIX MONTHS 1995 Trading revenue 176 167 94 171 608 Net interest revenue* 13 131 (2) (53) 89 _____________________________________________________________________ _____________ Combined total 189 298 92 118 697 _____________________________________________________________________ _____________ SIX MONTHS 1994 Trading revenue 392 33 37 122 584 Net interest 15 144 (10) (30) 119 revenue _____________________________________________________________________ _____________ Combined total 407 177 27 92 703 * Estimated
10 ASSET QUALITY J.P. Morgan & Co. Incorporated _____________________________________________________________________ _____________ NONPERFORMING ASSETS
June 30 March 31 December June 30 31 Dollars in millions 1995 1995 1994 1994 _____________________________________________________________________ _____________ Nonaccrual loans: Commercial and $127 $148 $136 $157 industrial Other 56 65 81 82 _____________________________________________________________________ _____________ 183 213 217 239 Restructuring countries 3 3 2 7 _____________________________________________________________________ _____________ Total nonaccrual loans 186 216 219 246 Other nonperforming 1 1 1 2 assets _____________________________________________________________________ _____________ Total nonperforming 187 217 220 248 assets _____________________________________________________________________ _____________ ALLOWANCE FOR CREDIT LOSSES June 30 March 31 December June 30 31 Dollars in millions 1995 1995 1994 1994 _____________________________________________________________________ _____________ Allowance for credit $1,132 $1,132 $1,131 $1,141 losses _____________________________________________________________________ ____________ Second Quarter Six Months 1995 1994 1995 1994 _____________________________________________________________________ _____________ Charge-offs: Commercial and ($14) - ($20) ($21) industrial Restructuring - ($17) - (17) countries Other (4) (6) (6) (7) Recoveries 18 20 27 28 _____________________________________________________________________ _____________
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