3q09 Earnings Presentation Final

FINANCIAL RESULTS

3Q09 October 14, 2009

3Q09 Financial highlights

„ Net income of $3.6B; EPS of $0.82; firmwide revenue of $28.8B1 „ Reported strong earnings in the Investment Bank; maintained #1 year-to-date rankings for

Global Debt, Equity and Equity-related, and Global Investment Banking Fees „ Solid performance in Asset Management, Commercial Banking and Retail Banking „ Credit costs remain high „ Added $2.0B to consumer credit reserves „ Firmwide total credit reserves of $31.5B; loan loss coverage ratio of 5.3%2 „ Capital generation further strengthened Tier 1 Common to $101B „ Tier 1 Common3 ratio of 8.2%

FINANCIAL RESULTS

„ Tier 1 Capital ratio of 10.2%

1

Revenue is on a managed basis. See notes 1 and 2 on slide 20 note 3 on slide 20 3 See note 4 on slide 20 2 See

1

3Q09 Managed results1

$ $ in in millions millions

$ O/(U) 3Q09

2Q09

3Q08

Results excl. Merger-related items2 Revenue (FTE)1 Credit Costs1 Expense Merger-related items2 (after-tax)

$1,095

$12,801

9,809

114

5,125

(26)

2,340

13,320 (70)

88

665

Reported Net Income

$3,588

$867

$3,061

Net Income Applicable to Common

$3,240

$2,168

$2,922

$0.82

$0.54

$0.73

Reported EPS ROE3 FINANCIAL RESULTS

$28,886

9%

6%

1%

ROE Net of GW 3

13%

10%

2%

ROTCE3,4

14%

10%

2%

1 Managed basis presents revenue and credit costs without the effect of credit card securitizations. Revenue is on a fully taxable-equivalent (FTE) basis. All references to credit costs refer to managed provision for credit losses. See notes 1 and 2 on slide 20 2 Merger-related items relate to the Bear Stearns and WaMu transactions 3 Actual numbers for all periods, not over/under. For the period 2Q09, net income available to common used to calculate ratios excludes the one-time, non-cash negative adjustment of $1.1B resulting from repayment of TARP preferred capital 4 See note 5 on slide 20

2

Investment Bank

„ Net income of $1.9B on revenue of $7.5B

$ $ in in millions millions

„ Immaterial net impact on profits from the combination of:

$ O/(U) 3Q09 Revenue

$7,508

2Q09 $207

3Q08 $3,442

Investment Banking Fees

1,658

(581)

Fixed Income Markets

5,011

82

Equity Markets

941

233

(709)

Credit Portfolio

(102)

473

(110)

379

(492)

145

4,274

207

458

$1,921

$450

$1,039

Credit Costs Expense Net Income

65 4,196

Key Statistics ($B)1

„ IB fees of $1.7B up 4% YoY „ Maintained #1 year-to-date rankings for Global Debt, Equity

and Equity-related, and Global Investment Banking Fees „ Fixed Income Markets revenue of $5.0B, reflecting: „ Strong performance across most products; and „ Approximately $400mm of gains on legacy leveraged lending

and mortgage-related positions „ Equity Markets revenue of $941mm, reflecting: „ Solid client revenue, particularly in Prime Services, and strong

trading results

Overhead Ratio

57%

56%

94%

Comp/Revenue

37%

37%

53%

„ Credit Portfolio revenue of ($102mm), reflecting mark-to-market

$60.3

$71.3

$90.0

$4.7

$5.1

$2.7

$4.9

$3.5

$0.4

losses on hedges of retained loans, largely offset by the positive net impact of credit spreads on derivative assets and liabilities and net interest income on loans

4.86% 8.44%

2.55% 7.91%

0.07% 3.62%

VAR ($mm)

23% $206

18% $267

13% $218

EOP Equity

$33.0

$33.0

$33.0

EOP Loans Allowance for Loan Losses NPLs Net Charge-off Rate2 ALL / Loans2 FINANCIAL RESULTS

– Tightening of JPM and counterparty credit spreads5; and – Gains on legacy leveraged lending and mortgage-related positions

ROE3 4

1

Actual numbers for all periods, not over/under 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; 3Q09 average equity was $33B 4 Average Trading and Credit Portfolio VAR 5 The net impact included losses of $497mm and $343mm in Fixed Income and Equity Markets, respectively, related to the tightening of JPM’s credit spreads on certain structured liabilities (DVA) 6 See note 6 on slide 20

3

„ Credit costs of $379mm reflect net charge-offs of $750mm,

partially offset by a reduction in allowance for credit losses of $371mm „ Expense up 12% YoY due to higher performance-based

compensation, partially offset by lower headcount-related expense6

Retail Financial Services—drivers

Retail Retail Banking Banking ($ ($ in in billions) billions)

„ Average deposits of $339.6B up 62% YoY and down 2%

QoQ: 3Q09

2Q09

3Q08

„ QoQ decline partially due to the maturation of high rate

WaMu CDs during the quarter

Key Statistics Average Deposits

$339.6

$348.1

$210.1

Deposit Margin

2.99% 25.5

2.92% 25.3

3.06% 24.5

Checking Accts (mm) # of Branches

5,126

5,203

5,423

# of ATMs

15,038

14,144

14,389

Investment Sales ($mm)

$6,243

$5,292

$4,389

„ Deposit margin expansion reflects disciplined pricing

strategy and a portfolio shift to wider spread deposit products „ Branch production statistics: „ Checking accounts up 4% YoY and 1% QoQ „ Credit card sales down 16% YoY and 18% QoQ „ Mortgage originations up 152% YoY and 15% QoQ „ Investment sales up 42% YoY and 18% QoQ

Consumer Consumer Lending Lending ($ ($ in in billions) billions)

„ Total Consumer Lending originations of $46.0B: „ Mortgage loan originations down 2% YoY and 10% QoQ 3Q09

2Q09

3Q08

3.75%

3.84%

2.43%

4.56%

4.34%

2.50%

$0.5

$0.6

$2.6

$134.0

$138.1

$94.8

$37.1

$41.1

$37.7

$139.7

$144.7

$53.5

$1,099

$1,118

$1,115

Auto Originations

$6.9

$5.3

$3.8

Avg Auto Loans

$43.3

$43.1

$43.9

Credit Metrics: Net Charge-off Rate (excl. credit-impaired) ALL / Loans (excl. credit-impaired) Key Statistics FINANCIAL RESULTS

Home Equity Originations Avg Home Equity Loans Owned Mortgage Loan Originations 1,2

1

Avg Mortgage Loans Owned 3rd Party Mortgage Loans Svc'd

1 Includes 2 Does

purchased credit-impaired loans acquired as part of the WaMu transaction not include held-for-sale loans

4

„ Auto originations up 82% YoY and 30% QoQ:

– YoY increase driven by market share gains in Prime segments and new manufacturing relationships; – QoQ increase driven primarily by CARS program „ 3rd party mortgage loans serviced down 1% YoY

Retail Financial Services

„ Retail Financial Services net income of $7mm down

$ $ in in millions millions

$57mm from 3Q08 and $8mm from 2Q09

$ O/(U) 3Q09

2Q09

3Q08

$7

($8)

($57)

-

-

1%

$25

$25

$25

Retail Financial Services Net income ROE1,2 1

EOP Equity ($B)

„ Total revenue of $4.6B increased 61% YoY reflecting

the impact of the WaMu transaction, higher deposit balances, higher deposit-related fees and wider deposit spreads „ Credit costs of $208mm up $138mm YoY, reflecting

higher estimated losses in Business Banking

Retail Banking

„ Expense growth of 67% YoY reflecting the impact of the

Net Interest Income

2,732

13

976

Noninterest Revenue

1,844

41

755

$4,576

$54

$1,731

WaMu transaction, higher headcount-related expense3 and higher FDIC insurance premiums

208

(153)

138

„ Consumer Lending net loss of $1.0B compared with a net

2,646

89

1,066

loss of $659mm in the prior year:

$1,043

$73

$320

„ Total revenue of $3.6B, up 72% YoY, reflecting the

impact of the WaMu transaction, higher servicing revenue and wider loan spreads, partially offset by lower loan balances and lower production revenue driven by higher repurchase reserves

Total Revenue Credit Costs Expense Net Income Consumer Lending Net Interest Income

2,422

111

947

Noninterest Revenue

1,220

83

577

$3,642

$194

$1,524

Credit Costs

3,780

295

1,794

Expense

1,550

28

351

($1,036)

($81)

($377)

Total Revenue

FINANCIAL RESULTS

„ Retail Banking net income of $1.0B up 44% YoY:

Net Income

„ Credit costs of $3.8B reflect higher estimated losses

and include an increase of $1.4B in the allowance for loan losses „ Expense growth of 29% YoY reflecting higher servicing

expense due to increased delinquencies and defaults and the impact of the WaMu transaction, partially offset by lower mortgage reinsurance losses

1

Actual numbers for all periods, not over/under Calculated based on average equity; 3Q09 average equity was $25B 3 See note 6 on slide 20 2

5

Home Lending update

1 Key Key statistics statistics1

Overall Overall commentary commentary 3Q09

2Q09

3Q08

trends, but we are not certain if this trend will continue

EOP owned portfolio ($B) Home Equity

$104.8

$108.2

$116.8

Prime Mortgage

60.1

62.1

63.0

Subprime Mortgage

13.3

13.8

18.1

$1,142

$1,265

$663

Prime Mortgage

525

481

177

Subprime Mortgage

422

410

273

2

Net charge-offs ($mm) Home Equity 3

4.25%

4.61%

2.78%

3.45%

3.07%

1.79%

12.31%

11.50%

7.65%

$1,598

$1,487

$1,142

Prime Mortgage

3,974

3,474

1,490

Subprime Mortgage

3,233

2,773

2,384

3

Prime Mortgage

Subprime Mortgage Nonperforming loans ($mm) Home Equity 3

1

Excludes the impact of purchased credit-impaired loans acquired as part of the WaMu transaction Ending balances include all noncredit-impaired prime mortgage balances held by Retail Financial Services, including loans repurchased from Government National Mortgage Association (GNMA) pools that are insured by U.S. government agencies 3 Net charge-offs and nonperforming loans exclude loans repurchased from GNMA pools that are insured by U.S. government agencies 2

FINANCIAL RESULTS

„ Prime and subprime mortgage delinquencies

impacted by foreclosure moratorium, extended REO timelines and trial modifications

1 Outlook Outlook1

„ Home Equity – quarterly losses trending to

Net charge-off rate Home Equity

„ Some initial signs of stability in consumer delinquency

approximately $1.4B over the next several quarters „ Prime Mortgage – quarterly losses trending to

approximately $600mm over the next several quarters „ Subprime Mortgage – quarterly losses trending to

approximately $500mm over the next several quarters Purchased Purchased credit-impaired credit-impaired loans loans „ Total purchased credit-impaired portfolio divided into

separate pools for impairment analysis „ Added $1.1B to allowance for loan losses related to

Prime Mortgage (non-Option ARM) pool

6

Card Services (Managed)

„ Net loss of $700mm down $992mm YoY; decline in

$ $ in in millions millions

results driven by higher credit costs partially offset by an increase in revenue

$ O/(U) 3Q09 Revenue

2Q09

3Q08

$5,159

$291

$1,272

Credit Costs

4,967

364

2,738

Expense

1,306

(27)

112

Net Income

($700)

($28)

($992)

Key Statistics Incl. WaMu ($B)1 ROO (pretax)

(2.61)%

(2.46)%

1.17%

(19)%

(18)%

8%

EOP Equity

$15.0

$15.0

$15.0

Avg Outstandings

$146.9

$149.7

$157.6

EOP Outstandings

$144.1

$148.4

$159.3

$78.9

$78.3

$93.9

2.4

2.4

3.6

9.10%

8.63%

8.18%

Key Statistics Excl. WaMu ($B)1

Charge Volume Net Accts Opened (mm)

FINANCIAL RESULTS

Managed Margin Net Charge-Off Rate

9.41%

8.97%

5.00%

30+ Day Delinquency Rate

5.38%

5.27%

3.69%

1 2

and an increase of $575mm in the allowance for loan losses: „ Net charge-off rate (excluding the WaMu portfolio) of

9.41% in 3Q09 vs. 5.00% in 3Q08 and 8.97% in 2Q09 „ End-of-period outstandings (excluding the WaMu

2

ROE

„ Credit costs of $5.0B are due to higher net charge-offs

Actual numbers for all periods, not over/under Calculated based on average equity; 3Q09 average equity was $15B

7

portfolio) of $144.1B down 10% YoY and 3% QoQ „ Sales volume (excluding the WaMu portfolio) declined 6%

YoY „ Revenue of $5.2B up 33% YoY due to the impact of the

WaMu transaction, and up 6% QoQ „ Managed margin (excluding the WaMu portfolio) of 9.10%

up from 8.18% in 3Q08 and 8.63% in 2Q09

Commercial Banking

„ Net income of $341mm up 9% YoY

$ $ in in millions millions

„ Excluding the WaMu portfolio, average loan balances

$ O/(U) 3Q09 Revenue

$6

3Q08 $334

„ Average loan balances were down 5% QoQ due to

Middle Market Banking

771

(1)

42

Commercial Term Lending

232

8

232

Mid-Corporate Banking

278

(27)

42

Real Estate Banking

121

30 (12)

57

1 25

Credit Costs

355

43

229

Expense

545

10

59

$341

($27)

$29

Other

Net Income Key Statistics ($B)1

FINANCIAL RESULTS

$1,459

2Q09

were down 16% YoY, while average liability balances were up 9% YoY: reduced client demand „ Revenue of $1.5B up 30% YoY due to the impact of the

WaMu transaction „ Credit costs of $355mm are due to higher net charge-offs,

reflecting continued deterioration in the credit environment across all business segments „ Expense up 12% YoY due to the impact of the WaMu

Avg Loans & Leases

$104.0

$109.0

$72.3

EOP Loans & Leases

$101.9

$105.9

$117.6

Avg Liability Balances2

$109.3

$105.8

$99.4

Allowance for Loan Losses

$3.1

$3.0

$2.7

NPLs

$2.3

$2.1

$0.8

Net Charge-Off Rate3

1.11%

0.67%

0.22%

ALL / Loans3

3.01%

2.87%

2.30%

ROE4

17%

18%

18%

Overhead Ratio

37%

37%

43%

EOP Equity

$8.0

$8.0

$8.0

1

Actual numbers for all periods, not over/under Includes deposits and deposits swept to on-balance sheet liabilities 3 Loans held-for-sale and loans at fair value were excluded when calculating the loan loss coverage ratio and net charge-off rate 4 Calculated based on average equity; 3Q09 average equity was $8.0B 2

8

transaction and higher FDIC insurance premiums; overhead ratio of 37%

Treasury & Securities Services

„ Net income of $302mm down 26% YoY and 20% QoQ

$ $ in in millions millions

„ Pretax margin of 26%

$ O/(U)

„ Liability balances down 11% YoY and 1% QoQ

3Q09

2Q09

3Q08

$1,788

($112)

($165)

Treasury Services

919

(15)

(27)

Worldwide Securities Svcs

869

(97)

(138)

1,280

(8)

(59)

$302

($77)

($104)

Revenue

Expense Net Income Key Statistics

1

Avg Liability Balances ($B)

$231.5

Assets under Custody ($T)

$14.9

Pretax Margin 3

TSS Firmwide Revenue TS Firmwide Revenue 2

TSS Firmwide Avg Liab Bal ($B)

FINANCIAL RESULTS

EOP Equity ($B)

„ Revenue of $1.8B down 8% YoY, primarily driven by: „ WSS revenue of $869mm down 14% YoY due to lower

securities lending balances, lower spreads and balances on liabilities products as well as the effect of market depreciation on certain custody assets „ TS revenue of $919mm down 3% YoY, reflecting

2

ROE

„ Assets under custody up 3% YoY and 8% QoQ

$234.2 $260.0 $13.7

$14.4

26%

31%

29%

24%

30%

46%

$2,523

$2,642 $2,672

$1,654

$1,676 $1,665

$340.8

$340.0 $359.4

$5.0

$5.0

$4.5

1 Actual

numbers for all periods, not over/under Includes deposits and deposits swept to on-balance sheet liabilities 3 Calculated based on average equity; 3Q09 average equity was $5B 4 See note 6 on slide 20 2

9

spread compression on deposit products, offset by higher trade revenue driven by wider spreads and higher card product volumes „ Expense down 4% YoY, due to lower headcount-related

expense4, partially offset by higher FDIC insurance premiums

Asset Management

„ Net income of $430mm up 23% YoY

$ $ in in millions millions

„ Pretax margin of 33%

$ O/(U) 3Q09 Revenue

$2,085

2Q09

3Q08

$103

$124

„ Revenue of $2.1B up 6% YoY „ Assets under management of $1.3T up 9% YoY due to net

8

inflows, partially offset by the effect of lower market levels

47

48

„ Net AUM inflows of $34B for the quarter; $113B for the

471

60

72

Private Wealth Management

339

5

(13)

Bear Stearns Private Client Services

102

(8)

9

„ 74% of mutual fund AUM ranked in the first or second

38

(21)

18

1,351

(3)

(11)

quartiles over past five years; 70% over past three years; 60% over one year

Private Bank

639

(1)

Institutional

534

Retail

Credit Costs Expense Net Income

$430

$78

$79

Assets under Management

$1,259

$1,171

$1,153

Assets under Supervision

$1,670

$1,543

$1,562

Average Loans

$34.8

$34.3

$39.8

EOP Loans

$35.9

$35.5

$39.7

Average Deposits

$73.6

$75.4

$65.6

1

past 12 months „ Good global investment performance:

„ Expense down 1% YoY

Key Statistics ($B)

FINANCIAL RESULTS

Pretax Margin ROE

2

EOP Equity

33%

29%

30%

24%

20%

25%

$7.0

$7.0

$7.0

1 Actual

numbers for all periods, not over/under 2 Calculated based on average equity; 3Q09 average equity was $7B

10

„ Credit costs of $38mm reflect continued deterioration in

the credit environment

Corporate/Private Equity

Net Net Income Income ($ ($ in in millions) millions)

Private Equity

$ O/(U)

„ Private Equity gains of $155mm in 3Q09

3Q09

2Q09

3Q08

$88

$115

$252

„ Private Equity portfolio of $6.8B (6.0% of shareholders’

equity less goodwill)

Private Equity

Corporate

Corporate

1,269

276

2,150

88

665

„ Net income of $1.3B includes the following: „ Noninterest revenue of approximately $900mm (after-

Merger-related items

(70)

tax), primarily related to investment portfolio trading income „ Benefit of higher investment portfolio net interest

FINANCIAL RESULTS

Net Income

$1,287

$479

$3,067

11

income

Capital Management

$ $ in in billions billions

3Q09

2Q09

3Q08

Tier 1 Capital1

$127

$122

$112

Tier 1 Common Capital1,2

$101

$97

$86

Risk-Weighted Assets1

$1,241

$1,260

$1,261

Total Assets

$2,041

$2,027

$2,251

Tier 1 Capital Ratio1

10.2%

9.7%

8.9%

8.2%

7.7%

6.8%

Tier 1 Common Ratio1,2

„ Firmwide total credit reserves of $31.5B; loan loss coverage ratio of 5.3%3 „ January 1, 2010 implementation of FAS 166/167 expected to decrease Tier 1

FINANCIAL RESULTS

Capital ratio by approximately 40bps

1

Estimated for 3Q09 See note 4 on slide 20 3 See note 3 on slide 20 Note: Tier 1 Capital for 2Q09 does not include the $25B of TARP preferred capital. Firm-wide Level 3 assets are expected to be 7% of total firm assets at 9/30/09 2

12

Outlook

Investment Investment Bank Bank

Treasury & & Securities Securities Services Services Treasury

„ Expect Fixed Income and Equity Markets revenue to

„ Performance will be affected by market levels and liability

normalize over time as conditions stabilize

balance flows

Retail Retail Financial Financial Services Services

Asset Asset Management Management

„ Home lending quarterly losses (incl. WaMu) over the next

„ Management and performance fees will be affected by

several quarters trending to approximately:

market levels

„ Home equity — $1.4B „ Prime mortgage — $600mm

Corporate/Private Corporate/Private Equity Equity

„ Subprime mortgage — $500mm

„ Private Equity

„ Solid underlying growth in Retail Banking

„ Results will be volatile

Card Card Services Services

„ Corporate „ Expect continued elevated net interest income in the

„ Chase losses of approximately 10.5% +/- by 1H10; highly

near-term

dependent on unemployment after that

„ Noninterest/trading revenue not likely to continue at

„ Loss rates of 9.0% +/- in 4Q09 and 11.0% +/- in 1Q10

3Q level

related to the timing effect of payment holiday „ WaMu losses could approach 24% +/- over the next FINANCIAL RESULTS

several quarters „ Expect continued pressure on charge volume and level of

Overall Overall

outstandings

„ If economy weakens further, additional reserving actions

Commercial Commercial Banking Banking

may be required

„ Strong reserves, but credit expected to weaken further 13

Key investor topics

„ Capital planning: „ Capital ratios are high „ Well-positioned for changes in regulatory capital and liquidity requirements „ Update on consumer initiatives: „ Mortgage modifications efforts „ Non-sufficient funds/Overdraft fees

FINANCIAL RESULTS

„ New credit card products

14

Agenda Page

FINANCIAL RESULTS

Appendix

15

15

IB League tables

„ Ranked #1 in Global Fees for YTD Sept

League League table table results results YTD Sept 09 Rank

Share

2008

2009, with 10% market share per Dealogic

1

„ Ranked #1 for YTD Sept 2009 per Thomson

Rank Share

Reuters in:

Based on fees (per Dealogic): Global IB fees

#1

10.0%

2#

„ Global Debt, Equity & Equity-related

8.6%

„ Global Equity & Equity-related

Based on volumes (per Thomson Reuters): Global Debt, Equity & Equity-related

#1

10.0%

#1

9.4%

US Debt, Equity & Equity-related

#1

14.7%

#2

15.0%

#1

15.0%

#1

10.2%

#1

17.5%

#1

11.0%

#1

9.4%

#1

9.3%

#1

8.6%

#3

8.8%

#1

14.0%

#2

15.1%

#4

24.7%

#2

27.5%

#4

32.9%

#2

34.5%

Global Loan Syndications

#1

9.2%

#1

11.4%

US Loan Syndications

#1

23.4%

#1

24.5%

Global Equity & Equity-related US Equity & Equity-related Global Debt

3

Global Long-term Debt US Long-term Debt

3

3

4

Global M&A Announced

APPENDIX

US M&A Announced

5

2

„ Global Debt „ Global Long-term Debt „ Global Loan Syndications

1

Source: 2008 data is pro forma for merger with Bear Stearns Equity & Equity-related includes rights offerings & Long-term Debt tables include ABS, MBS and taxable municipal securities 4 Global M&A for 2008 for Thomson Reuters includes transactions withdrawn since 12/31/08 5 US M&A for Thomson Reuters represents any US involvement; 2008 includes transactions withdrawn since 12/31/08 Note: Rankings for YTD September 30, 2009 run as of 10/01/09; 2008 represents full year 2 Global 3 Debt

16

Consumer credit—delinquency trends Excluding credit-impaired loans

Prime Prime Mortgage Mortgage delinquency delinquency trend trend

Home Equity Equity delinquency delinquency trend trend Home 3.50%

30+ day delinquencies

13%

30-89 day delinquencies

30+ day delinquencies

30-89 delinquencies

11%

2.75%

9% 7%

2.00%

5% 3% 1%

1.25% Mar-08

May-08

Aug-08

Nov-08

Mar-09

Jun-09

Mar-08

Sep-09

30+ day delinquencies

Aug-08

Nov-08

Mar-09

Jun-09

Sep-09

1,2 Card Card Services Services delinquency delinquency trend trend1,2 (Excl. (Excl. WaMu) WaMu)

Subprime Subprime Mortgage Mortgage delinquency delinquency trend trend 35%

May-08

6.0%

30-89 day delinquencies

30+ day delinquencies

30-89 day delinquencies

30% 25%

4.5%

20% 15%

3.0%

10%

APPENDIX

5% Mar-08

May-08

Aug-08

Nov-08

Mar-09

Jun-09

Sep-09

1

On a managed basis “Payment holiday” in 2Q09 impacted 30+ day and 30-89 day delinquency trends in 3Q09 Note: For Home Lending graphs, 30+ day delinquencies prior to September ’08 are heritage Chase

2

17

1.5% Mar-08

May-08

Aug-08

Nov-08

Mar-09

Jun-09

Sep-09

Substantially increased loan loss reserves, maintaining strong coverage ratios

$ $ in in millions millions Loan Loss Reserve/Total Loans1

Loan Loss Reserve/NPLs1

Loan Loss Reserve

54000 5.75%

5% 500%

Nonperforming Loans

45000

4.60%

30,633

36000

27,381

3.45%

29,072

4% 400%

3% 300%

27000 2% 200%

2.30% 18000

1.15% 9000 0 0.00%

19,052 11,746

8,113

9,234

2,490

5,273

6,933

11,401

4,401

8,953

3,282

3Q07 3Q07

4Q07 4Q07

1Q08 1Q08

2Q08 2Q08

3Q08 3Q08

4Q08 4Q08

1Q09 1Q09

2Q09

JPM 1

JPM 1

Peer Avg.2

6.21%

5.80%

4.47%

212%

234%

176%

LLR/NPLs

2Q09 2Q09

3Q09 3Q09

3.76%

3.75%

2.86%

107%

144%

74%

5.28%

5.01%

3.91%

168%

198%

131%

„ Strong coverage ratios compared to peers „ LLR/NPLs ratio naturally trends down as we move

Wholesale LLR/Total Loans

1% 100%

from $8.1B two years ago; loan loss coverage ratio of 5.28%

Consumer LLR/NPLs

17,767

„ $30.6B of loan loss reserves in 3Q09, up ~$22B 3Q09

LLR/Total Loans

14,785

0% 0%

Peer Peer comparison comparison

APPENDIX

23,164

13,246

through credit cycle

Firmwide LLR/Total Loans LLR/NPLs

1 2

18

See note 3 on slide 20 Peer average reflects equivalent metrics for key competitors. Peers are defined as C, BAC and WFC

Reconciliation of GAAP to Non-GAAP Results

$ $ in in millions millions

3Q09

3Q08

Revenue Reported Revenue Impact of Card Securitizations Tax Equivalent Adjustments Managed Revenue Merger-related Items Adjusted Revenue

$26,622 1,698 460 $28,780 106 $28,886

$25,623 1,664 422 $27,709 82 $27,791

$14,737 873 478 $16,088 (3) $16,085

Credit Costs Provision for Credit Losses Impact of Card Securitizations Credit Costs Merger-related Items Adjusted Credit Costs

8,104 1,698 $9,802 7 $9,809

8,031 1,664 $9,695 $9,695

5,787 873 $6,660 (1,976) $4,684

13,455 (135) $13,320

13,520 (174) $13,346

11,137 (157) $10,980

Expense Reported Expense Merger-related Items Adjusted Expense

APPENDIX

2Q09

19

Notes on non-GAAP financial measures and forward-looking statements This presentation includes non-GAAP financial measures. 1.Financial results are presented on a managed basis, as such basis is described in the firm’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009, and its Annual Report on Form 10-K for the year ended December 31, 2008. 2.All non-GAAP financial measures included in this presentation are provided to assist readers in understanding certain trend information. Additional information concerning such non-GAAP financial measures can be found in the above-referenced filings, to which reference is hereby made. 3.The ratio for the allowance for loan losses to end-of-period loans excludes the following: loans accounted for at fair value and loans heldfor-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, Consumer Lending net charge-off rates exclude the impact of purchased credit-impaired loans. The allowance related to the purchased credit-impaired portfolio was $1.1 billion at September 30, 2009. 4.Tier 1 Common Capital ("Tier 1 Common") is calculated, for all purposes, as Tier 1 Capital less qualifying perpetual preferred stock, qualifying trust preferred securities, and qualifying minority interest in subsidiaries. 5.Tangible Common Equity ("TCE") is calculated, for all purposes, as 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. The TCE measures used in this presentation are not necessarily comparable to similarly titled measures provided by other firms due to differences in calculation methodologies.

APPENDIX

6.Headcount-related expense includes salary and benefits, and other noncompensation costs related to employees. 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 Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009, and its Annual Report on Form 10-K for the year ended December 31, 2008, each of which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase’s website (www.jpmorganchase.com) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements. 20

EARNINGS RELEASE FINANCIAL SUPPLEMENT THIRD QUARTER 2009

JPMORGAN CHASE & CO. TABLE OF CONTENTS Page

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

2 3 4 5 6

Business Detail Line of Business Financial Highlights - Managed Basis Investment Bank Retail Financial Services Card Services - Managed Basis Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity

7 8 11 17 20 22 24 27

Credit-Related Information

29

Market Risk-Related Information

34

Supplemental Detail Capital, Intangible Assets and Deposits Per Share-Related Information

35 36

Glossary of Terms

37

Page 1

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

YEAR-TO-DATE 3Q09 Change

3Q09 SELECTED INCOME STATEMENT DATA: Reported Basis Total net revenue Total noninterest expense Pre-provision profit Provision for credit losses Income (loss) before extraordinary gain Extraordinary gain NET INCOME Managed Basis (a) Total net revenue Total noninterest expense Pre-provision profit Provision for credit losses Income (loss) before extraordinary gain Extraordinary gain NET INCOME

2Q09

1Q09

4Q08

3Q08

2Q09

3Q08

2009

2009 Change 2008

2008

$

26,622 13,455 13,167 8,104 3,512 76 3,588

$

25,623 13,520 12,103 8,031 2,721 2,721

$

25,025 13,373 11,652 8,596 2,141 2,141

$

17,226 11,255 5,971 7,313 (623) 1,325 702

$

14,737 11,137 3,600 5,787 (54) 581 527

4 % 9 1 29 NM 32

81 % 21 266 40 NM (87) NM

$

77,270 40,348 36,922 24,731 8,374 76 8,450

$

50,026 32,245 17,781 13,666 4,322 581 4,903

54 % 25 108 81 94 (87) 72

$

28,780 13,455 15,325 9,802 3,512 76 3,588

$

27,709 13,520 14,189 9,695 2,721 2,721

$

26,922 13,373 13,549 10,060 2,141 2,141

$

19,108 11,255 7,853 8,541 (623) 1,325 702

$

16,088 11,137 4,951 6,660 (54) 581 527

4 8 1 29 NM 32

79 21 210 47 NM (87) NM

$

83,411 40,348 43,063 29,557 8,374 76 8,450

$

53,664 32,245 21,419 16,050 4,322 581 4,903

55 25 101 84 94 (87) 72

PER COMMON SHARE: Basic Earnings (b) Income (loss) before extraordinary gain Net income

0.80 0.82

0.28 0.28

0.40 0.40

(0.29) 0.06

(0.08) 0.09

186 193

NM NM

1.50 1.52

1.14 1.31

32 16

Diluted Earnings (b) (c) Income (loss) before extraordinary gain Net income

0.80 0.82

0.28 0.28

0.40 0.40

(0.29) 0.06

(0.08) 0.09

186 193

NM NM

1.50 1.51

1.13 1.30

33 16

Cash dividends declared Book value Closing share price Market capitalization

0.05 39.12 43.82 172,596

0.05 37.36 34.11 133,852

0.05 36.78 26.58 99,881

0.38 36.15 31.53 117,695

0.38 36.95 46.70 174,048

5 28 29

(87) 6 (6) (1)

0.15 39.12 43.82 172,596

1.14 36.95 46.70 174,048

(87) 6 (6) (1)

COMMON SHARES OUTSTANDING: Weighted-average diluted shares outstanding (b) Common shares outstanding at period-end

3,962.0 3,938.7

3,824.1 3,924.1

3,758.7 3,757.7

3,737.5 3,732.8

3,444.6 3,726.9

4 -

15 6

3,848.3 3,938.7

3,446.2 3,726.9

12 6

FINANCIAL RATIOS: (d) Income (loss) before extraordinary gain: Return on common equity ("ROE") (e) Return on tangible common equity ("ROTCE") (e)(f) Return on assets ("ROA") Net income: ROE (e) ROTCE (e)(f) ROA

9 % 13 0.70

3 % 5 0.54

5 % 8 0.42

9 14 0.71

3 5 0.54

5 8 0.42

1 1 0.13

1 2 0.12

CAPITAL RATIOS: Tier 1 common capital ratio Tier 1 capital ratio Total capital ratio

8.2 (g) 10.2 (g) 13.8 (g)

7.7 9.7 13.3

7.3 11.4 15.2

7.0 10.9 14.8

6.8 8.9 12.6

SELECTED BALANCE SHEET DATA (Period-end) Total assets Wholesale loans Consumer loans Deposits Common stockholders' equity Total stockholders' equity

$

Headcount LINE OF BUSINESS NET INCOME (LOSS) Investment Bank Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity Net income

2,041,009 218,953 434,191 867,977 154,101 162,253

$

220,861

$

$

1,921 7 (700) 341 302 430 1,287 3,588

2,026,642 231,625 448,976 866,477 146,614 154,766

$

220,255

$

$

1,471 15 (672) 368 379 352 808 2,721

2,079,188 242,284 465,959 906,969 138,201 170,194

(3) % (5) (0.11)

$

219,569

$

$

1,606 474 (547) 338 308 224 (262) 2,141

2,175,052 262,044 482,854 1,009,277 134,945 166,884

(1) % (1) (0.01)

$

224,961

$

$

(2,364) 624 (371) 480 533 255 1,545 702

2,251,469 288,445 472,936 969,783 137,691 145,843 228,452

$

$

882 64 292 312 406 351 (1,780) 527

6 9 0.55

%

4 7 0.35

6 9 0.56

1 (5) (3) 5 5

(9) (24) (8) (10) 12 11

-

(3)

31 (53) (4) (7) (20) 22 59 32

118 (89) NM 9 (26) 23 NM NM

$

2,041,009 218,953 434,191 867,977 154,101 162,253

5 8 0.39

$

2,251,469 288,445 472,936 969,783 137,691 145,843

(9) (24) (8) (10) 12 11

228,452

(3)

220,861

$

$

4,998 496 (1,919) 1,047 989 1,006 1,833 8,450

%

$

$

1,189 256 1,151 959 1,234 1,102 (988) 4,903

320 94 NM 9 (20) (9) NM 72

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

Page 2

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

YEAR-TO-DATE 2009 Change 2008

3Q09 Change 3Q09 REVENUE Investment banking fees Principal transactions Lending & deposit-related fees Asset management, administration and commissions Securities gains Mortgage fees and related income Credit card income Other income Noninterest revenue

$

Interest income Interest expense Net interest income

2Q09

1,679 3,860 1,826 3,158 184 843 1,710 625 13,885

$

1Q09

2,106 3,097 1,766 3,124 347 784 1,719 10 12,953

$

4Q08

1,386 2,001 1,688 2,897 198 1,601 1,837 50 11,658

$

3Q08

1,382 (7,885) 1,776 3,234 456 1,789 2,049 593 3,394

$

2Q09

1,316 (2,763) 1,168 3,485 424 457 1,771 (115) 5,743

3Q08 (20) % 25 3 1 (47) 8 (1) NM 7

2009 28 % NM 56 (9) (57) 84 (3) NM 142

$

2008

5,171 8,958 5,280 9,179 729 3,228 5,266 685 38,496

$

4,144 (2,814) 3,312 10,709 1,104 1,678 5,370 1,576 25,079

25 % NM 59 (14) (34) 92 (2) (57) 53

16,260 3,523 12,737

16,549 3,879 12,670

17,926 4,559 13,367

21,631 7,799 13,832

17,326 8,332 8,994

(2) (9) 1

(6) (58) 42

50,735 11,961 38,774

51,387 26,440 24,947

(1) (55) 55

TOTAL NET REVENUE

26,622

25,623

25,025

17,226

14,737

4

81

77,270

50,026

54

Provision for credit losses

8,104

8,031

8,596

7,313

5,787

1

40

24,731

13,666

81

7,311 923 1,140 1,517 440 1,767 254 103 13,455

6,917 914 1,156 1,518 417 2,190 265 143 13,520

7,588 885 1,146 1,515 384 1,375 275 205 13,373

5,024 955 1,207 1,819 501 1,242 326 181 11,255

5,858 766 1,112 1,451 453 1,096 305 96 11,137

6 1 (1) 6 (19) (4) (28) -

25 20 3 5 (3) 61 (17) 7 21

21,816 2,722 3,442 4,550 1,241 5,332 794 451 40,348

17,722 2,083 3,108 4,234 1,412 2,498 937 251 32,245

23 31 11 7 (12) 113 (15) 80 25

5,063 1,551 3,512 76 3,588

4,072 1,351 2,721 2,721

3,056 915 2,141 2,141

(1,342) (719) (623) 1,325 702

(2,187) (2,133) (54) 581 527

24 15 29 NM 32

NM NM NM (87) NM

12,191 3,817 8,374 76 8,450

(0.08) 0.17 0.09

186 NM 193

NM (88) NM

NONINTEREST EXPENSE Compensation expense Occupancy expense Technology, communications and equipment expense Professional & outside services Marketing Other expense (a) Amortization of intangibles Merger costs TOTAL NONINTEREST EXPENSE Income (loss) before income tax expense and extraordinary gain Income tax expense (benefit) (b) Income (loss) before extraordinary gain Extraordinary gain (c) NET INCOME

DILUTED EARNINGS PER SHARE Income (loss) before extraordinary gain (d)(e) Extraordinary gain NET INCOME (d)(e)

$

$ $

FINANCIAL RATIOS Income (loss) before extraordinary gain: ROE (f) ROTCE (f) ROA Net income: ROE (f) ROTCE (f) ROA Effective income tax rate (b) Overhead ratio EXCLUDING IMPACT OF MERGER COSTS (g) Income (loss) before extraordinary gain Merger costs (after-tax) Income (loss) before extraordinary gain excluding merger costs Diluted Per Share: Income (loss) before extraordinary gain (d)(e) Merger costs (after-tax) Income (loss) before extraordinary gain excluding merger costs (d)(e)

$

0.80 0.02 0.82

9 13 0.70

$ $

%

$ $

$ $

3,512 64 3,576

0.80 0.02 0.82

0.28 0.28

3 5 0.54

9 14 0.71 31 51

$

$ $

%

$ $

$ $

2,721 89 2,810

0.28 0.02 0.30

0.40 0.40

5 8 0.42

3 5 0.54 33 53

$

$ $

%

$

$ $

$ $

(3) % (5) (0.11)

5 8 0.42 30 53

$

(0.29) 0.35 0.06

$

$

0.40 0.03 0.43

$

$

$

(623) 112 (511)

(0.29) 0.03 (0.26)

$ $

(1) % (1) (0.01)

1 1 0.13 54 65

2,141 127 2,268

$

$ $

$ $

(54) 60 6

(0.08) 0.02 (0.06)

1.50 0.01 1.51

6 9 0.55

1 2 0.12 98 76

$

$ $

%

NM 7 NM

186

NM NM

173

$ $

$ $

8,374 280 8,654

1.50 0.07 1.57

196 NM 94 (87) 72

1.13 0.17 1.30

33 (94) 16

4 7 0.35

6 9 0.56 31 52

29 (28) 27

4,115 (207) 4,322 581 4,903

%

5 8 0.39 (5) 64

$ $

$ $

4,322 156 4,478

94 79 93

1.13 0.05 1.18

33 40 33

(a) Second quarter 2009 includes a $675 million FDIC special assessment. (b) The income tax benefit in the third quarter of 2008 includes the realization of a benefit from the release of deferred tax liabilities associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to be reinvested indefinitely. (c) JPMorgan Chase acquired the banking operations of Washington Mutual Bank for $1.9 billion. The fair value of the net assets acquired exceeded the purchase price, which resulted in negative goodwill. In accordance with U.S. GAAP for business combinations, nonfinancial assets that are not held-for-sale were written down against that negative goodwill. The negative goodwill that remained after writing down nonfinancial assets was recognized as an extraordinary gain. (d) Effective January 1, 2009, the Firm implemented new FASB guidance for participating securities. Accordingly, prior period amounts have been revised as required. For further discussion of this guidance, see Per share-related information on page 36. (e) The calculation of second quarter 2009 earnings per share includes a one-time, non-cash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital. (f) The calculation of second quarter 2009 net income applicable to common equity includes a one-time, non-cash reduction of $1.1 billion resulting from repayment of TARP preferred capital. Excluding this reduction the adjusted ROE and ROTCE were 6% and 10% for the second quarter 2009, respectively. The Firm views the adjusted ROE and ROTCE, non-GAAP financial measures, as meaningful because it increases the comparability to prior periods. (g) Net income excluding merger costs, a non-GAAP financial measure, is used by the Firm to facilitate comparison of results against the Firm's ongoing operations and with other companies' U.S. GAAP financial statements. Page 3

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

Sep 30 2009 ASSETS Cash and due from banks Deposits with banks Federal funds sold and securities purchased under resale agreements Securities borrowed Trading assets: Debt and equity instruments Derivative receivables Securities Loans Less: allowance for loan losses Loans, net of allowance for loan losses Accrued interest and accounts receivable Premises and equipment Goodwill Other intangible assets: Mortgage servicing rights Purchased credit card relationships All other intangibles Other assets (a) TOTAL ASSETS LIABILITIES Deposits Federal funds purchased and securities loaned or sold under repurchase agreements Commercial paper Other borrowed funds (a) Trading liabilities: Debt and equity instruments Derivative payables Accounts payable and other liabilities (including the allowance for lending-related commitments) Beneficial interests issued by consolidated VIEs Long-term debt Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities TOTAL LIABILITIES STOCKHOLDERS' EQUITY Preferred stock Common stock Capital surplus Retained earnings Accumulated other comprehensive income (loss) Shares held in RSU trust Treasury stock, at cost TOTAL STOCKHOLDERS' EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

21,068 59,623 171,007 128,059

Jun 30 2009 $

25,133 61,882 159,170 129,263

Mar 31 2009 $

26,681 89,865 157,237 127,928

Dec 31 2008 $

26,895 138,139 203,115 124,000

Sep 30 2008 $

54,350 34,372 233,668 152,050

Sep 30, 2009 Change Jun 30 Sep 30 2009 2008 (16) % (4) 7 (1)

(61) % 73 (27) (16)

330,370 94,065 372,867 653,144 30,633 622,511 59,948 10,675 48,334

298,135 97,491 345,563 680,601 29,072 651,529 61,302 10,668 48,288

298,453 131,247 333,861 708,243 27,381 680,862 52,168 10,336 48,201

347,357 162,626 205,943 744,898 23,164 721,734 60,987 10,045 48,027

401,609 118,648 150,779 761,381 19,052 742,329 104,232 9,962 46,121

11 (4) 8 (4) 5 (4) (2) -

(18) (21) 147 (14) 61 (16) (42) 7 5

$

13,663 1,342 3,520 103,957 2,041,009

$

14,600 1,431 3,651 118,536 2,026,642

$

10,634 1,528 3,821 106,366 2,079,188

$

9,403 1,649 3,932 111,200 2,175,052

$

17,048 1,827 3,653 180,821 2,251,469

(6) (6) (4) (12) 1

(20) (27) (4) (43) (9)

$

867,977

$

866,477

$

906,969

$

1,009,277

$

969,783

-

(10)

$

310,219 53,920 50,824

300,931 42,713 73,968

279,837 33,085 112,257

192,546 37,845 132,400

224,075 54,480 167,827

3 26 (31)

38 (1) (70)

65,233 69,214

56,021 67,197

53,786 86,020

45,274 121,604

76,213 85,816

16 3

(14) (19)

171,386 17,859 254,413

171,685 20,945 254,226

165,521 9,674 243,569

187,978 10,561 252,094

260,563 11,437 238,034

(15) -

(34) 56 7

17,711 1,878,756

17,713 1,871,876

18,276 1,908,994

18,589 2,008,168

17,398 2,105,626

-

2 (11)

8,152 4,105 97,564 59,573 283 (86) (7,338) 162,253 2,041,009

8,152 4,105 97,662 56,355 (3,438) (86) (7,984) 154,766 2,026,642

31,993 3,942 91,469 55,487 (4,490) (86) (8,121) 170,194 2,079,188

31,939 3,942 92,143 54,013 (5,687) (217) (9,249) 166,884 2,175,052

8,152 3,942 90,535 55,217 (2,227) (267) (9,509) 145,843 2,251,469

6 NM 8 5 1

4 8 8 NM 68 23 11 (9)

$

$

$

$

(a) On September 19, 2008, the Federal Reserve established a special lending facility, the AML Facility, to provide liquidity to eligible money market mutual funds. The Firm participated in the AML Facility and had ABCP investments totaling $14.5 billion, $6.0 billion, $11.2 billion, and $61.3 billion at June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. There was no ABCP investment at September 30, 2009. These ABCP investments were recorded in other assets with the corresponding nonrecourse liability to the Federal Reserve Bank of Boston for the same amounts recorded in other borrowed funds.

Page 4

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

YEAR-TO-DATE 3Q09 Change

3Q09 AVERAGE BALANCES ASSETS Deposits with banks Federal funds sold and securities purchased under resale agreements Securities borrowed Trading assets - debt instruments Securities Loans Other assets (a) Total interest-earning assets Trading assets - equity instruments Goodwill Other intangible assets: Mortgage servicing rights All other intangible assets All other noninterest-earning assets TOTAL ASSETS LIABILITIES Interest-bearing deposits Federal funds purchased and securities loaned or sold under repurchase agreements Commercial paper Other borrowings and liabilities (b) Beneficial interests issued by consolidated VIEs Long-term debt Total interest-bearing liabilities Noninterest-bearing liabilities TOTAL LIABILITIES Preferred stock Common stockholders' equity TOTAL STOCKHOLDERS' EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

2Q09

62,248

$

1Q09

68,001

$

4Q08

88,587

$

3Q08

106,156

$

2Q09

41,303

3Q08

(8) %

2009

51 %

$

2009 Change 2008

2008

72,849

$

37,378

95 %

151,705 129,301 250,148 359,451 665,386 24,155 1,642,394 66,790 48,328

142,226 122,235 245,444 354,216 697,908 36,638 1,666,668 63,507 48,273

160,986 120,752 252,098 281,420 726,959 27,411 1,658,213 62,748 48,071

205,182 123,523 269,576 174,652 752,524 56,322 1,687,935 72,782 46,838

164,980 134,651 298,760 119,443 536,890 37,237 1,333,264 92,300 45,947

7 6 2 1 (5) (34) (1) 5 -

(8) (4) (16) 201 24 (35) 23 (28) 5

151,606 124,127 249,223 331,981 696,526 29,389 1,655,701 64,363 48,225

158,195 106,258 307,899 106,392 533,829 17,694 1,267,645 90,220 45,809

(4) 17 (19) 212 30 66 31 (29) 5

$

14,384 4,984 222,296 1,999,176

$

12,256 5,218 242,450 2,038,372

$

11,141 5,443 281,503 2,067,119

$

14,837 5,586 339,887 2,167,865

$

11,811 5,512 267,525 1,756,359

17 (4) (8) (2)

22 (10) (17) 14

$

12,605 5,214 248,532 2,034,640

$

10,017 5,845 245,749 1,665,285

26 (11) 1 22

$

660,998

$

672,350

$

736,460

$

777,604

$

589,348

(2)

12

$

689,660

$

600,554

200,032 47,579 161,821 11,431 261,385 1,271,596 351,023 1,622,619 7,100 126,640 133,740

5 14 (14) 34 (1) (1) (2) (1) (71) 6 (7)

52 (10) 11 69 4 16 4 13 15 18 18

1,756,359

(2)

14

303,175 42,728 178,985 19,351 271,281 1,476,518 365,038 1,841,556 8,152 149,468 157,620 $

289,971 37,371 207,489 14,493 274,323 1,495,997 373,172 1,869,169 28,338 140,865 169,203

1,999,176

$

226,110 33,694 236,673 9,757 258,732 1,501,426 397,243 1,898,669 31,957 136,493 168,450

2,038,372

$

203,568 40,486 264,236 9,440 248,125 1,543,459 460,894 2,004,353 24,755 138,757 163,512

2,067,119

$

2,167,865

$

273,368 37,964 207,504 14,569 268,158 1,491,223 378,366 1,869,589 22,729 142,322 165,051 $

2,034,640

$

15

194,446 47,496 127,076 14,490 230,472 1,214,534 320,978 1,535,512 3,895 125,878 129,773

41 (20) 63 1 16 23 18 22 484 13 27

1,665,285

22

AVERAGE RATES INTEREST-EARNING ASSETS Deposits with banks Federal funds sold and securities purchased under resale agreements Securities borrowed Trading assets - debt instruments Securities Loans Other assets (a) Total interest-earning assets INTEREST-BEARING LIABILITIES Interest-bearing deposits Federal funds purchased and securities sold under repurchase agreements Commercial paper Other borrowings and liabilities (b) Beneficial interests issued by consolidated VIEs Long-term debt Total interest-bearing liabilities INTEREST RATE SPREAD NET YIELD ON INTEREST-EARNING ASSETS NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS

0.83

%

1.45

%

2.03

%

3.34

%

3.04

%

1.50

%

3.66

0.96 (0.09) 4.78 3.62 5.64 2.18 3.95

1.04 (0.32) 4.91 3.64 5.65 0.80 4.00

1.64 0.29 5.27 4.16 5.87 2.44 4.41

2.88 0.92 6.18 5.14 6.44 3.06 5.12

3.76 2.07 6.06 5.09 6.31 3.29 5.22

1.22 (0.04) 4.99 3.78 5.72 1.69 4.12

3.80 2.53 5.80 5.26 6.58 3.49 5.47

0.65

0.70

0.93

1.53

2.26

0.76

2.57

0.20 0.23 1.70 1.43 2.09 0.95

0.23 0.24 1.32 1.59 2.60 1.04

0.36 0.47 1.46 1.57 2.73 1.23

0.95 1.17 2.56 3.79 3.87 2.01

2.63 2.05 2.84 2.87 3.31 2.61

0.25 0.30 1.48 1.52 2.47 1.07

2.87 2.54 3.73 2.90 3.44 2.91

3.00% 3.10%

2.96% 3.07%

3.18% 3.29%

3.11% 3.28%

2.61% 2.73%

3.05% 3.15%

2.56% 2.68%

3.40%

3.37%

3.60%

3.55%

3.06%

3.45%

3.02%

%

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

Page 5

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

The Firm prepares its consolidated financial statements using accounting principles generally accepted in the United States of America ("U.S. GAAP"). That presentation, which is referred to as "reported basis," provides the reader with an understanding of the Firm's results that can be tracked consistently from year to year and enables a comparison of the Firm's performance with other companies' U.S. GAAP financial statements. In addition to analyzing the Firm's results on a reported basis, management reviews the Firm's results and the results of lines of business on a "managed" basis, which is a non-GAAP financial measure. The Firm's definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications that assume credit card loans securitized by Card Services remain on the balance sheet and presents revenue on a fully taxable-equivalent ("FTE") basis. These adjustments do not have any impact on net income as reported by the lines of business or by the Firm as a whole. The impact of these adjustments are summarized below. For additional information about managed basis, please refer to the Glossary of Terms on page 37. QUARTERLY TRENDS

YEAR-TO-DATE 3Q09 Change

3Q09 CREDIT CARD INCOME Credit card income - reported Impact of: Credit card securitizations Credit card income - managed OTHER INCOME Other income - reported Impact of: Tax-equivalent adjustments Other income - managed TOTAL NONINTEREST REVENUE Total noninterest revenue - reported Impact of: Credit card securitizations Tax-equivalent adjustments Total noninterest revenue - managed NET INTEREST INCOME Net interest income - reported Impact of: Credit card securitizations Tax-equivalent adjustments Net interest income - managed TOTAL NET REVENUE Total net revenue - reported Impact of: Credit card securitizations Tax-equivalent adjustments Total net revenue - managed PRE-PROVISION PROFIT Total pre-provision profit - reported Impact of: Credit card securitizations Tax-equivalent adjustments Total pre-provision profit - managed PROVISION FOR CREDIT LOSSES Provision for credit losses - reported Impact of: Credit card securitizations Provision for credit losses - managed INCOME TAX EXPENSE Income tax expense (benefit) - reported Impact of: Tax-equivalent adjustments Income tax expense (benefit) - managed

2Q09

1Q09

4Q08

3Q08

2Q09

1,771

3Q08 (1) %

2009

$

1,710

$

1,719

$

1,837

$

2,049

$

$

(285) 1,425

$

(294) 1,425

$

(540) 1,297

$

(710) 1,339

$

(843) 928

3 -

$

625

$

10

$

50

$

593

$

(115)

NM

$

371 996

$

335 345

$

337 387

$

556 1,149

$

323 208

11 189

15 379

$

13,885

$

12,953

$

11,658

$

3,394

$

5,743

7

142

$

(285) 371 13,971

$

(294) 335 12,994

$

(540) 337 11,455

$

(710) 556 3,240

$

(843) 323 5,223

3 11 8

$

12,737

$

12,670

$

13,367

$

13,832

$

8,994

$

1,983 89 14,809

$

1,958 87 14,715

$

2,004 96 15,467

$

1,938 98 15,868

$

1,716 155 10,865

$

26,622

$

25,623

$

25,025

$

17,226

$

14,737

$

1,698 460 28,780

$

1,664 422 27,709

$

1,464 433 26,922

$

1,228 654 19,108

$

873 478 16,088

$

13,167

$

12,103

$

11,652

$

5,971

$

3,600

9

266

$

1,698 460 15,325

$

1,664 422 14,189

$

1,464 433 13,549

$

1,228 654 7,853

$

873 478 4,951

2 9 8

95 (4) 210

$

8,104

$

8,031

$

8,596

$

7,313

$

5,787

1

$

1,698 9,802

$

1,664 9,695

$

1,464 10,060

$

1,228 8,541

$

873 6,660

$

1,551

$

1,351

$

915

$

(719)

$

$

460 2,011

$

422 1,773

$

433 1,348

$

654 (65)

$

2009 Change 2008

2008

(3) %

$

5,266

$

5,370

66 54

$

(1,119) 4,147

$

(2,623) 2,747

57 51

NM

$

685

$

1,576

(57)

$

1,043 1,728

$

773 2,349

35 (26)

$

38,496

$

25,079

53

66 15 167

$

(1,119) 1,043 38,420

$

(2,623) 773 23,229

57 35 65

1

42

$

38,774

$

24,947

55

1 2 1

16 (43) 36

$

5,945 272 44,991

$

5,007 481 30,435

19 (43) 48

4

81

$

77,270

$

50,026

54

2 9 4

95 (4) 79

$

4,826 1,315 83,411

$

2,384 1,254 53,664

102 5 55

$

36,922

$

17,781

108

$

4,826 1,315 43,063

$

2,384 1,254 21,419

102 5 101

40

$

24,731

$

13,666

81

2 1

95 47

$

4,826 29,557

$

2,384 16,050

102 84

(2,133)

15

NM

$

3,817

$

478 (1,655)

9 13

(4) NM

$

1,315 5,132

$

(207) 1,254 1,047

(2) %

NM 5 390

Page 6

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

YEAR-TO-DATE 3Q09 Change

3Q09 TOTAL NET REVENUE (FTE) Investment Bank (a) Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity (a) TOTAL NET REVENUE TOTAL PRE-PROVISION PROFIT Investment Bank (a) Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity (a) TOTAL PRE-PROVISION PROFIT NET INCOME (LOSS) Investment Bank Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity TOTAL NET INCOME AVERAGE EQUITY (b) Investment Bank Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity TOTAL AVERAGE EQUITY RETURN ON EQUITY (b) Investment Bank Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management

$

$

$

$

$

$

$

$

2Q09

7,508 8,218 5,159 1,459 1,788 2,085 2,563 28,780

3,234 4,022 3,853 914 508 734 2,060 15,325

1,921 7 (700) 341 302 430 1,287 3,588

33,000 25,000 15,000 8,000 5,000 7,000 56,468 149,468

23 % (19) 17 24 24

$

$

$

$

$

$

$

$

1Q09

7,301 7,970 4,868 1,453 1,900 1,982 2,235 27,709

3,234 3,891 3,535 918 612 628 1,371 14,189

1,471 15 (672) 368 379 352 808 2,721

33,000 25,000 15,000 8,000 5,000 7,000 47,865 140,865

18 % (18) 18 30 20

$

$

$

$

$

$

$

$

4Q08

8,371 8,835 5,129 1,402 1,821 1,703 (339) 26,922

3,597 4,664 3,783 849 502 405 (251) 13,549

1,606 474 (547) 338 308 224 (262) 2,141

33,000 25,000 15,000 8,000 5,000 7,000 43,493 136,493

20 % 8 (15) 17 25 13

$

$

$

$

$

$

$

$

3Q08

(272) 8,684 4,908 1,479 2,249 1,658 402 19,108

(3,013) 4,638 3,419 980 910 445 474 7,853

(2,364) 624 (371) 480 533 255 1,545 702

33,000 25,000 15,000 8,000 4,500 7,000 46,257 138,757

(28) % 10 (10) 24 47 14

$

$

$

$

$

$

$

$

2Q09

4,066 4,963 3,887 1,125 1,953 1,961 (1,867) 16,088

3Q08 3 % 3 6 (6) 5 15 4

2009 85 % 66 33 30 (8) 6 NM 79

250 2,184 2,693 639 614 599 (2,028) 4,951

3 9 (17) 17 50 8

NM 84 43 43 (17) 23 NM 210

882 64 292 312 406 351 (1,780) 527

31 (53) (4) (7) (20) 22 59 32

118 (89) NM 9 (26) 23 NM NM

18 6

27 47 6 14 43 27 5 18

26,000 17,000 14,100 7,000 3,500 5,500 53,540 126,640

13 1 8 18 46 25

%

$

$

$

$

$

$

$

$

2009 Change 2008

2008

23,180 25,023 15,156 4,314 5,509 5,770 4,459 83,411

10,065 12,577 11,171 2,681 1,622 1,767 3,180 43,063

4,998 496 (1,919) 1,047 989 1,006 1,833 8,450

33,000 25,000 15,000 8,000 5,000 7,000 49,322 142,322

20 % 3 (17) 17 26 19

$

$

$

$

$

$

$

$

12,607 14,836 11,566 3,298 5,885 5,926 (454) 53,664

84 % 69 31 31 (6) (3) NM 55

1,504 6,805 7,915 1,851 2,001 1,841 (498) 21,419

NM 85 41 45 (19) (4) NM 101

1,189 256 1,151 959 1,234 1,102 (988) 4,903

320 94 NM 9 (20) (9) NM 72

23,781 17,000 14,100 7,000 3,500 5,190 55,307 125,878

7 2 11 18 47 28

39 47 6 14 43 35 (11) 13

%

(a) In the second quarter of 2009, Investment Bank ("IB") began reporting credit reimbursement from TSS as a component of total net revenue, whereas TSS continues to report its credit reimbursement to IB as a separate line item on its income statement (not part of total net revenue). Corporate/Private Equity includes an adjustment to offset IB's inclusion of the credit reimbursement in total net revenue. Prior periods have been revised for IB and Corporate/Private Equity to reflect this presentation. (b) Each business segment is allocated capital by taking into consideration stand-alone peer comparisons, economic risk measures and regulatory capital requirements. The amount of capital assigned to each business is referred to as equity.

Page 7

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

YEAR-TO-DATE 3Q09 Change

3Q09 INCOME STATEMENT REVENUE Investment banking fees Principal transactions Lending & deposit-related fees Asset management, administration and commissions All other income (a) Noninterest revenue Net interest income TOTAL NET REVENUE (b)

$

Provision for credit losses

2Q09

1,658 2,714 185 633 63 5,253 2,255 7,508

$

1Q09

2,239 1,841 167 717 (108) 4,856 2,445 7,301

$

4Q08

1,380 3,515 138 692 (56) 5,669 2,702 8,371

$

3Q08

1,373 (6,160) 138 764 139 (3,746) 3,474 (272)

$

2Q09

1,593 (922) 118 847 (248) 1,388 2,678 4,066

379

871

1,210

765

234

NONINTEREST EXPENSE Compensation expense Noncompensation expense TOTAL NONINTEREST EXPENSE

2,778 1,496 4,274

2,677 1,390 4,067

3,330 1,444 4,774

1,166 1,575 2,741

2,162 1,654 3,816

Income (loss) before income tax expense Income tax expense (benefit) (c) NET INCOME (LOSS)

2,855 934 1,921

2,363 892 1,471

2,387 781 1,606

(3,778) (1,414) (2,364)

$

FINANCIAL RATIOS ROE ROA Overhead ratio Compensation expense as a % of total net revenue REVENUE BY BUSINESS Investment banking fees: Advisory Equity underwriting Debt underwriting Total investment banking fees Fixed income markets Equity markets Credit portfolio (a) Total net revenue REVENUE BY REGION (a) Americas Europe/Middle East/Africa Asia/Pacific Total net revenue

$

23 % 1.12 57 37

$

$

$

$

384 681 593 1,658 5,011 941 (102) 7,508

3,913 2,855 740 7,508

$

18 % 0.83 56 37

$

$

$

$

393 1,103 743 2,239 4,929 708 (575) 7,301

4,177 2,235 889 7,301

$

20 % 0.89 57 40

$

$

$

$

479 308 593 1,380 4,889 1,773 329 8,371

4,800 2,595 976 8,371

$

(28) % (1.08) NM NM

$

$

$

$

579 330 464 1,373 (1,671) (94) 120 (272)

(2,203) 2,026 (95) (272)

16 (866) 882

3Q08

(26) % 47 11 (12) NM 8 (8) 3

2009

4 % NM 57 (25) NM 278 (16) 85

$

$

$

$

5,277 8,070 490 2,042 (101) 15,778 7,402 23,180

$

4,534 (882) 325 2,300 (480) 5,797 6,810 12,607

16 % NM 51 (11) 79 172 9 84

(56)

62

2,460

1,250

97

4 8 5

28 (10) 12

8,785 4,330 13,115

6,535 4,568 11,103

34 (5) 18

21 5 31

NM NM 118

7,605 2,607 4,998

$

13 % 0.39 94 53

$

2009 Change 2008

2008

$

20 % 0.94 57 38

576 518 499 1,593 815 1,650 8 4,066

(2) (38) (20) (26) 2 33 82 3

(33) 31 19 4 NM (43) NM 85

1,072 2,517 477 4,066

(6) 28 (17) 3

265 13 55 85

$

$

$

$

1,256 2,092 1,929 5,277 14,829 3,422 (348) 23,180

12,890 7,685 2,605 23,180

254 (935) 1,189

NM NM 320

7 % 0.19 88 52

$

$

$

$

1,429 1,419 1,686 4,534 3,628 3,705 740 12,607

(12) 47 14 16 309 (8) NM 84

4,813 5,684 2,110 12,607

168 35 23 84

(a) Treasury & Securities Services ("TSS") was charged a credit reimbursement related to certain exposures managed within the Investment Bank credit portfolio on behalf of clients shared with TSS. IB recognizes this credit reimbursement in its credit portfolio business in all other income. Prior periods have been revised to conform with the current presentation. (b) Total net revenue included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as, tax-exempt income from municipal bond investments, of $371 million, $334 million, $365 million, $583 million, and $427 million for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $1.1 billion for both year-to-date 2009 and 2008. (c) The income tax benefit in the third quarter of 2008 is predominantly the result of reduced deferred tax liabilities on overseas earnings.

Page 8

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

YEAR-TO-DATE 3Q09 Change

3Q09 SELECTED BALANCE SHEET DATA (Period-end) Loans: Loans retained (a) Loans held-for-sale & loans at fair value Total loans Equity SELECTED BALANCE SHEET DATA (Average) Total assets Trading assets - debt and equity instruments Trading assets - derivative receivables Loans: Loans retained (a) Loans held-for-sale & loans at fair value Total loans Adjusted assets (b) Equity

Derivative receivables Assets acquired in loan satisfactions Total nonperforming assets Allowance for credit losses: Allowance for loan losses Allowance for lending-related commitments Total allowance for credit losses Net charge-off (recovery) rate (a) Allowance for loan losses to period-end loans retained (a) Allowance for loan losses to average loans retained (a) (d) Allowance for loan losses to nonperforming loans retained (c) Nonperforming loans to total period-end loans Nonperforming loans to total average loans

1Q09

4Q08

3Q08

2Q09

$

55,703 4,582 60,285 33,000

$

64,500 6,814 71,314 33,000

$

66,506 10,993 77,499 33,000

$

71,357 13,660 85,017 33,000

$

73,347 16,667 90,014 33,000

$

678,796 270,695 86,651

$

710,825 265,336 100,536

$

733,166 272,998 125,021

$

869,159 306,168 153,875

$

Headcount CREDIT DATA AND QUALITY STATISTICS Net charge-offs (recoveries) Nonperforming assets: Nonperforming loans: Nonperforming loans retained (a) Nonperforming loans held-for-sale & loans at fair value Total nonperforming loans

2Q09

$

3Q08

2009

2009 Change 2008

2008

(14) % (33) (15) -

(24) % (73) (33) -

$

55,703 4,582 60,285 33,000

$

73,347 16,667 90,014 33,000

(24) % (73) (33) -

890,040 360,821 105,462

(5) 2 (14)

(24) (25) (18)

$

707,396 269,668 103,929

$

820,497 365,802 98,390

(14) (26) 6

61,269 4,981 66,250 515,718 33,000

68,224 8,934 77,158 531,632 33,000

70,041 12,402 82,443 589,163 33,000

73,110 16,378 89,488 685,242 33,000

69,022 17,612 86,634 694,459 26,000

(10) (44) (14) (3) -

(11) (72) (24) (26) 27

66,479 8,745 75,224 545,235 33,000

73,107 19,215 92,322 677,945 23,781

(9) (54) (19) (20) 39

24,828

25,783

26,142

27,938

30,993

(4)

(20)

24,828

30,993

(20)

13

73

NM

18

NM

750

$

433

$

36

$

87

$

$

1,219

$

4,782 128 4,910

3,407 112 3,519

1,738 57 1,795

1,143 32 1,175

404 32 436

40 14 40

NM 300 NM

4,782 128 4,910

404 32 436

NM 300 NM

624 248 5,782

704 311 4,534

1,010 236 3,041

1,079 247 2,501

34 113 583

(11) (20) 28

NM 119 NM

624 248 5,782

34 113 583

NM 119 NM

4,703 401 5,104

5,101 351 5,452

4,682 295 4,977

3,444 360 3,804

2,654 463 3,117

(8) 14 (6)

77 (13) 64

4,703 401 5,104

2,654 463 3,117

77 (13) 64

4.86 % 8.44 7.68 98 8.14 7.41

2.55 % 7.91 7.48 150 4.93 4.56

0.21 % 7.04 6.68 269 2.32 2.18

0.47 % 4.83 4.71 301 1.38 1.31

0.07 % 3.62 3.85 657 0.48 0.50

2.45 % 8.44 7.07 98 8.14 6.53

0.03 % 3.62 3.63 657 0.48 0.47

(a) Loans retained included credit portfolio loans, leveraged leases and other accrual loans, and excluded loans held-for-sale and loans accounted for at fair value. (b) Adjusted assets, a non-GAAP financial measure, equals total assets minus (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased; (2) assets of consolidated variable interest entities ("VIEs"); (3) cash and securities segregated and on deposit for regulatory and other purposes; (4) goodwill and intangibles; (5) securities received as collateral; and (6) investments purchased under the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility. The amount of adjusted assets is presented to assist the reader in comparing the Investment Bank's ("IB") asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. IB believes an adjusted asset amount that excludes the assets discussed above, which were considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry. (c) Nonperforming loans excluded distressed loans held-for-sale that were purchased as part of IB's proprietary activities. (d) Excluding the impact of a loan originated in March 2008 to Bear Stearns, the adjusted ratio would be 3.76% for year-to-date 2008. The average balance of the loan extended to Bear Stearns was $2.6 billion for year-to-date 2008.

Page 9

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

YEAR-TO-DATE 3Q09 Change

3Q09 MARKET RISK - AVERAGE TRADING AND CREDIT PORTFOLIO VAR - 99% CONFIDENCE LEVEL (a) Trading activities: Fixed income $ Foreign exchange Equities Commodities and other Diversification (b) Total trading VaR (c) Credit portfolio VaR (d) Diversification (b) Total trading and credit portfolio VaR

$

2Q09

243 30 28 38 (134) 205 50 (49) 206

$

$

1Q09

249 26 77 34 (136) 250 133 (116) 267

September 30, 2009 YTD MARKET SHARES AND RANKINGS (e) Global debt, equity and equity-related Global syndicated loans Global long-term debt (f) Global equity and equity-related (g) Global announced M&A (h) U.S. debt, equity and equity-related U.S. syndicated loans U.S. long-term debt (f) U.S. equity and equity-related (g) U.S. announced M&A (h)

Market Share 10% 9% 9% 15% 25% 15% 23% 14% 18% 33%

Rankings #1 #1 #1 #1 #4 #1 #1 #1 #1 #4

$

$

4Q08

218 40 162 28 (159) 289 182 (135) 336

$

3Q08

276 55 87 30 (146) 302 165 (140) 327

$

$

$

2Q09

183 20 80 41 (104) 220 47 (49) 218

3Q08

(2) % 15 (64) 12 1 (18) (62) 58 (23)

2009

33 % 50 (65) (7) (29) (7) 6 (6)

$

$

2009 Change 2008

2008

237 32 88 34 (144) 247 120 (99) 268

$

$

150 27 47 33 (95) 162 38 (39) 161

58 % 19 87 3 (52) 52 216 (154) 66

Full Year 2008 Market Share 9% 11% 9% 10% 28% 15% 25% 15% 11% 35%

Rankings #1 #1 #3 #1 #2 #2 #1 #2 #1 #2

(a) Results for year-to-date 2008 include four months of the combined Firm’s (JPMorgan Chase & Co.’s and Bear Stearns’) results and five months of heritage JPMorgan Chase & Co results. (b) Average VaRs were less than the sum of the VaRs of their market risk components, which was due to risk offsets resulting from portfolio diversification. The diversification effect reflected the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is usually less than the sum of the risks of the positions themselves. (c) Trading VaR includes predominantly all trading activities in IB; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. Trading VaR does not include VaR related to held-for-sale funded loans and unfunded commitments, nor the debit valuation adjustments ("DVA") taken on derivative and structured liabilities to reflect the credit quality of the Firm. Trading VaR also does not include the MSR portfolio or VaR related to other corporate functions, such as Corporate/Private Equity. Beginning in the fourth quarter of 2008, trading VaR includes the estimated credit spread sensitivity of certain mortgage products. (d) Includes VaR on derivative credit valuation adjustments ("CVA"), hedges of the CVA and mark-to-market hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio. (e) Source: Thomson Reuters. Full year 2008 results are pro forma for the Bear Stearns merger. (f) Includes asset-backed securities, mortgage-backed securities and municipal securities. (g) Includes rights offerings; U.S. domiciled equity and equity-related transactions. (h) Global announced M&A is based upon rank value; all other rankings are based upon proceeds, with full credit to each book manager/equal if joint. Because of joint assignments, market share of all participants will add up to more than 100%. Global and U.S. announced M&A market share and rankings for 2008 include transactions withdrawn since December 31, 2008. U.S. announced M&A represents any U.S. involvement ranking.

Page 10

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

YEAR-TO-DATE 3Q09 Change

3Q09 INCOME STATEMENT REVENUE Lending & deposit-related fees Asset management, administration and commissions Mortgage fees and related income Credit card income Other income Noninterest revenue Net interest income TOTAL NET REVENUE

$

2Q09

1,046 408 873 416 321 3,064 5,154 8,218

$

1Q09

1,003 425 807 411 294 2,940 5,030 7,970

$

4Q08

948 435 1,633 367 214 3,597 5,238 8,835

$

3Q08

1,050 412 1,962 367 183 3,974 4,710 8,684

$

2Q09

538 346 438 204 206 1,732 3,231 4,963

3Q08

4 % (4) 8 1 9 4 2 3

2009

94 % 18 99 104 56 77 60 66

$

2009 Change 2008

2008

2,997 1,268 3,313 1,194 829 9,601 15,422 25,023

$

1,496 1,098 1,659 572 556 5,381 9,455 14,836

100 % 15 100 109 49 78 63 69

Provision for credit losses

3,988

3,846

3,877

3,576

2,056

4

94

11,711

6,329

85

NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE

1,728 2,385 83 4,196

1,631 2,365 83 4,079

1,631 2,457 83 4,171

1,604 2,345 97 4,046

1,120 1,559 100 2,779

6 1 3

54 53 (17) 51

4,990 7,207 249 12,446

3,464 4,267 300 8,031

44 69 (17) 55

128 64 64

(24) (10) (53)

(73) (58) (89)

Income before income tax expense Income tax expense NET INCOME

$

FINANCIAL RATIOS ROE Overhead ratio Overhead ratio excluding core deposit intangibles (a) SELECTED BALANCE SHEET DATA (Period-end) Assets Loans: Loans retained Loans held-for-sale & loans at fair value (b) Total loans Deposits Equity SELECTED BALANCE SHEET DATA (Average) Assets Loans: Loans retained Loans held-for-sale & loans at fair value (b) Total loans Deposits Equity Headcount

34 27 7

$

% 51 50

$

397,673

401,620

$

% 51 50

$

346,765 14,303 361,068 361,046 25,000 $

45 30 15

399,916

410,228

$

8 % 47 46

$

353,934 13,192 367,126 371,241 25,000 $

787 313 474

412,505

423,472

$

10 % 47 45

$

364,220 12,529 376,749 380,140 25,000 $

1,062 438 624

419,831

1 % 56 54

$

368,786 9,996 378,782 360,451 25,000 $

423,699

$

$

866 370 496

476 220 256

$

3 % 50 49

426,435

(1)

(7)

371,153 10,223 381,376 353,660 25,000

(2) 8 (2) (3) -

(7) 40 (5) 2 -

265,367

(2)

51

$

397,673

2 % 54 52

$

346,765 14,303 361,068 361,046 25,000 $

411,693

82 68 94

$

426,435

(7)

371,153 10,223 381,376 353,660 25,000

(7) 40 (5) 2 -

264,400

56

349,762 19,025 368,787 366,944 25,000

359,372 19,043 378,415 377,259 25,000

366,925 16,526 383,451 370,278 25,000

369,172 13,848 383,020 358,523 25,000

222,640 16,037 238,677 222,180 17,000

(3) (3) (3) -

57 19 55 65 47

358,623 18,208 376,831 371,482 25,000

219,464 18,116 237,580 224,731 17,000

63 1 59 65 47

106,951

103,733

100,677

102,007

101,826

3

5

106,951

101,826

5

(a) Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles ("CDI")), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excludes Retail Banking's core deposit intangibles amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $83 million, $82 million, $83 million, $97 million, and $99 million, for the quarters ending September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $248 million and $297 million for year-to-date 2009 and 2008, respectively. (b) Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $12.8 billion, $11.3 billion, $8.9 billion, $8.0 billion, and $8.6 billion, at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. Average balances of these loans totaled $17.7 billion, $16.2 billion, $13.4 billion, $12.0 billion, and $14.5 billion, for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $15.8 billion and $14.9 billion for year-to-date 2009 and 2008, respectively.

Page 11

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

YEAR-TO-DATE 3Q09 Change

3Q09 CREDIT DATA AND QUALITY STATISTICS Net charge-offs Nonperforming loans: Nonperforming loans retained Nonperforming loans held-for-sale and loans at fair value Total nonperforming loans (a) (b) (c) Nonperforming assets (a) (b) (c) Allowance for loan losses Net charge-off rate Net charge-off rate excluding purchased credit-impaired loans (d) Allowance for loan losses to ending loans retained Allowance for loan losses to ending loans retained excluding purchased credit-impaired loans (d) Allowance for loan losses to nonperforming loans retained (a) (d) Nonperforming loans to total loans Nonperforming loans to total loans excluding purchased credit-impaired loans (a)

$

2Q09

2,550 10,091 242 10,333 11,883 13,286 2.89 % 3.81 3.83 4.63 121 2.86 3.72

$

1Q09

2,649 8,792 203 8,995 10,554 11,832 2.96 % 3.89 3.34 4.41 135 2.45 3.19

$

4Q08

2,176 7,714 264 7,978 9,846 10,619 2.41 % 3.16 2.92 3.84 138 2.12 2.76

$

3Q08

1,701 6,548 236 6,784 9,077 8,918 1.83 % 2.41 2.42 3.19 136 1.79 2.34

$

2Q09

3Q08

2009

1,326

(4) %

92 %

5,517 207 5,724 8,085 7,517

15 19 15 13 12

83 17 81 47 77

$

2.37 % 2.37 2.03 2.56 136 1.50 1.88

2009 Change 2008

2008

7,375 10,091 242 10,333 11,883 13,286 2.75 % 3.62 3.83 4.63 121 2.86 3.72

$

3,176

132 %

5,517 207 5,724 8,085 7,517

83 17 81 47 77

1.93 % 1.93 2.03 2.56 136 1.50 1.88

(a) Excludes purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing. (b) Certain of these loans are classified as trading assets on the Consolidated Balance Sheets. (c) Nonperforming loans and assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.0 billion, $4.2 billion, $4.2 billion, $3.0 billion, and $1.4 billion, at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively; and (2) real estate owned insured by U.S. government agencies of $579 million, $508 million, $433 million, $364 million, and $370 million at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively; and (3) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program, of $511 million, $473 million, $433 million, $437 million, and $405 million, at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. These amounts for mortgage and student loans are excluded, as reimbursement is proceeding normally. (d) Excludes the impact of purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management's estimate, as of that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $1.1 billion has been recorded for these loans as of September 30, 2009. No allowance for loan losses was recorded as of June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively.

Page 12

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

YEAR-TO-DATE 3Q09 Change

3Q09

2Q09

1Q09

4Q08

3Q08

2Q09

3Q08

2009

2009 Change 2008

2008

RETAIL BANKING Noninterest revenue Net interest income Total net revenue Provision for credit losses Noninterest expense Income before income tax expense Net income

$

$

Overhead ratio Overhead ratio excluding core deposit intangibles (a) BUSINESS METRICS (in billions) Business banking origination volume End-of-period loans owned End-of-period deposits: Checking Savings Time and other Total end-of-period deposits Average loans owned Average deposits: Checking Savings Time and other Total average deposits Deposit margin Average assets CREDIT DATA AND QUALITY STATISTICS Net charge-offs Net charge-off rate Nonperforming assets

1,844 2,732 4,576 208 2,646 1,722 1,043

$

$

58 % 56

1,803 2,719 4,522 361 2,557 1,604 970

$

$

57 % 55

1,718 2,614 4,332 325 2,580 1,427 863

$

$

60 % 58

1,834 2,687 4,521 268 2,533 1,720 1,040

$

$

56 % 54

1,089 1,756 2,845 70 1,580 1,195 723

2 % 1 (42) 3 7 8

69 % 56 61 197 67 44 44

$

$

56 % 52

5,365 8,065 13,430 894 7,783 4,753 2,876

$

$

58 % 56

3,117 4,972 8,089 181 4,699 3,209 1,942

72 % 62 66 394 66 48 48

58 % 54

$

0.5 17.4

$

0.6 17.8

$

0.5 18.2

$

0.8 18.4

$

1.2 18.6

(17) (2)

(58) (6)

$

1.6 17.4

$

4.7 18.6

(66) (6)

$

115.5 151.6 66.6 333.7 17.7

$

114.1 150.4 78.9 343.4 18.0

$

113.9 152.4 86.5 352.8 18.4

$

109.2 144.0 89.1 342.3 18.2

$

106.7 146.4 85.8 338.9 16.6

1 1 (16) (3) (2)

8 4 (22) (2) 7

$

115.5 151.6 66.6 333.7 18.0

$

106.7 146.4 85.8 338.9 16.2

8 4 (22) (2) 11

$ $

$

$ $

$

$

$

$

$

114.0 $ 151.2 74.4 339.6 2.99 % 28.1 $

114.2 $ 151.2 82.7 348.1 2.92 % 29.1 $

109.4 $ 148.2 88.2 345.8 2.85 % 30.2 $

105.8 $ 145.3 88.7 339.8 2.94 % 28.7 $

68.0 105.4 36.7 210.1 3.06 % 25.6

(10) (2)

68 43 103 62

$

(3)

10

$

208 $ 4.66 % 816 $

211 $ 4.70 % 686 $

175 $ 3.86 % 579 $

168 $ 3.67 % 424 $

68 1.63 % 380

(1)

206

$

19

115

$

4,389

18

42

$

5,423 14,389 15,491 5,899 11,682 24,490

(1) 6 6 1 (1) 1

(5) 5 9 (6) 19 4

$

112.6 $ 150.1 81.8 344.5 2.92 % 29.1 $

67.5 103.9 41.3 212.7 2.86 % 25.6

67 44 98 62

594 $ 4.41 % 816 $

178 1.47 % 380

234

14

115

RETAIL BRANCH BUSINESS METRICS Investment sales volume Number of: Branches ATMs Personal bankers Sales specialists Active online customers (in thousands) Checking accounts (in thousands)

$

6,243

5,126 15,038 16,941 5,530 13,852 25,546

$

5,292

5,203 14,144 15,959 5,485 13,930 25,252

$

4,398

5,186 14,159 15,544 5,454 12,882 24,984

$

3,956

5,474 14,568 15,825 5,661 11,710 24,499

$

15,933

$

5,126 15,038 16,941 5,530 13,852 25,546

13,684

16

5,423 14,389 15,491 5,899 11,682 24,490

(5) 5 9 (6) 19 4

(a) Retail Banking uses the overhead ratio (excluding the amortization of core deposit intangibles ("CDI")), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excludes Retail Banking's core deposit intangibles amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $83 million, $82 million, $83 million, $97 million, and $99 million, for the quarters ending September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $248 million and $297 million for year-to-date 2009 and 2008, respectively.

Page 13

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

YEAR-TO-DATE 3Q09 Change

3Q09

2Q09

1Q09

4Q08

3Q08

2Q09

3Q08

2009

2009 Change 2008

2008

CONSUMER LENDING Noninterest revenue Net interest income Total net revenue Provision for credit losses Noninterest expense Income (loss) before income tax expense Net income (loss)

$

$

Overhead ratio BUSINESS METRICS (in billions) LOANS EXCLUDING PURCHASED CREDIT-IMPAIRED LOANS (a) End-of-period loans owned: Home equity Prime mortgage Subprime mortgage Option ARMs Student loans Auto loans Other Total end-of-period loans Average loans owned: Home equity Prime mortgage Subprime mortgage Option ARMs Student loans Auto loans Other Total average loans PURCHASED CREDIT-IMPAIRED LOANS (a) End-of-period loans owned: Home equity Prime mortgage Subprime mortgage Option ARMs Total end-of-period loans Average loans owned: Home equity Prime mortgage Subprime mortgage Option ARMs Total average loans TOTAL CONSUMER LENDING PORTFOLIO End-of-period loans owned: Home equity Prime mortgage Subprime mortgage Option ARMs Student loans Auto loans Other Total end-of-period loans Average loans owned: Home equity Prime mortgage Subprime mortgage Option ARMs Student loans Auto loans Other Total average loans owned (b)

1,220 2,422 3,642 3,780 1,550 (1,688) (1,036)

$

$

43 %

1,137 2,311 3,448 3,485 1,522 (1,559) (955)

$

$

44 %

1,879 2,624 4,503 3,552 1,591 (640) (389)

$

$

35 %

2,140 2,023 4,163 3,308 1,513 (658) (416)

$

$

36 %

643 1,475 2,118 1,986 1,199 (1,067) (659)

7 % 5 6 8 2 (8) (8)

90 % 64 72 90 29 (58) (57)

$

$

57 %

4,236 7,357 11,593 10,817 4,663 (3,887) (2,380)

$

$

40 %

2,264 4,483 6,747 6,148 3,332 (2,733) (1,686)

87 % 64 72 76 40 (42) (41)

49 %

$

104.8 60.1 13.3 8.9 15.5 44.3 0.8 247.7

$

108.2 62.1 13.8 9.0 15.6 42.9 1.0 252.6

$

111.7 65.4 14.6 9.0 17.3 43.1 1.0 262.1

$

114.3 65.2 15.3 9.0 15.9 42.6 1.3 263.6

$

116.8 63.0 18.1 19.0 15.3 43.3 1.0 276.5

(3) (3) (4) (1) (1) 3 (20) (2)

(10) (5) (27) (53) 1 2 (20) (10)

$

104.8 60.1 13.3 8.9 15.5 44.3 0.8 247.7

$

116.8 63.0 18.1 19.0 15.3 43.3 1.0 276.5

(10) (5) (27) (53) 1 2 (20) (10)

$

106.6 60.6 13.6 8.9 15.2 43.3 0.9 249.1

$

110.1 63.3 14.3 9.1 16.7 43.1 1.0 257.6

$

113.4 65.4 14.9 8.8 17.0 42.5 1.5 263.5

$

114.6 65.0 15.7 9.0 15.6 42.9 1.5 264.3

$

94.8 39.7 14.2 14.1 43.9 0.9 207.6

(3) (4) (5) (2) (9) (10) (3)

12 53 (4) NM 8 (1) 20

$

110.0 63.1 14.3 8.9 16.3 43.0 1.1 256.7

$

95.0 38.4 15.1 12.9 44.0 1.1 206.5

16 64 (5) NM 26 (2) 24

$

27.1 20.2 6.1 29.8 83.2

$

27.7 20.8 6.4 30.5 85.4

$

28.4 21.4 6.6 31.2 87.6

$

28.6 21.8 6.8 31.6 88.8

$

26.5 24.7 3.9 22.6 77.7

(2) (3) (5) (2) (3)

2 (18) 56 32 7

$

27.1 20.2 6.1 29.8 83.2

$

26.5 24.7 3.9 22.6 77.7

2 (18) 56 32 7

$

27.4 20.5 6.2 30.2 84.3

$

28.0 21.0 6.5 31.0 86.5

$

28.4 21.6 6.7 31.4 88.1

$

28.2 21.9 6.8 31.6 88.5

$

-

(2) (2) (5) (3) (3)

NM NM NM NM NM

$

27.9 21.1 6.5 30.8 86.3

$

-

NM NM NM NM NM

$

131.9 80.3 19.4 38.7 15.5 44.3 0.8 330.9

$

135.9 82.9 20.2 39.5 15.6 42.9 1.0 338.0

$

140.1 86.8 21.2 40.2 17.3 43.1 1.0 349.7

$

142.9 87.0 22.1 40.6 15.9 42.6 1.3 352.4

$

143.3 87.7 22.0 41.6 15.3 43.3 1.0 354.2

(3) (3) (4) (2) (1) 3 (20) (2)

(8) (8) (12) (7) 1 2 (20) (7)

$

131.9 80.3 19.4 38.7 15.5 44.3 0.8 330.9

$

143.3 87.7 22.0 41.6 15.3 43.3 1.0 354.2

(8) (8) (12) (7) 1 2 (20) (7)

$

134.0 81.1 19.8 39.1 15.2 43.3 0.9 333.4

$

138.1 84.3 20.8 40.1 16.7 43.1 1.0 344.1

$

141.8 87.0 21.6 40.2 17.0 42.5 1.5 351.6

$

142.8 86.9 22.5 40.6 15.6 42.9 1.5 352.8

$

94.8 39.7 14.2 14.1 43.9 0.9 207.6

(3) (4) (5) (2) (9) (10) (3)

41 104 39 NM 8 (1) 61

$

137.9 84.2 20.8 39.7 16.3 43.0 1.1 343.0

$

95.0 38.4 15.1 12.9 44.0 1.1 206.5

45 119 38 NM 26 (2) 66

(a) Purchased credit-impaired loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase's acquisition date. These loans were initially recorded at fair value and accrete interest income over the estimated life of the loan when cash flows are reasonably estimable, even if the underlying loans are contractually past due. (b) Total average loans include loans held-for-sale of $1.3 billion, $2.8 billion, $3.1 billion, $1.8 billion, and $1.5 billion, for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $2.4 billion and $3.2 billion for year-to-date 2009 and 2008, respectively. Page 14

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

YEAR-TO-DATE 2009 Change 2008

3Q09 Change 3Q09

2Q09

1Q09

4Q08

3Q08

2Q09

3Q08

2009

2008

CONSUMER LENDING (continued) CREDIT DATA AND QUALITY STATISTICS Net charge-offs excluding purchased credit-impaired loans: (a) Home equity Prime mortgage Subprime mortgage Option ARMs Auto loans Other Total net charge-offs Net charge-off rate excluding purchased credit-impaired loans: (a) Home equity Prime mortgage Subprime mortgage Option ARMs Auto loans Other Total net charge-off rate excluding purchased credit-impaired loans (b) Net charge-off rate - reported: Home equity Prime mortgage Subprime mortgage Option ARMs Auto loans Other Total net charge-off rate - reported (b)

$

30+ day delinquency rate excluding purchased credit-impaired loans (c) (d) (e) Nonperforming assets (f) (g) $ Allowance for loan losses to ending loans retained Allowance for loan losses to ending loans retained excluding purchased credit-impaired loans (a)

1,142 525 422 15 159 79 2,342

$

4.25 % 3.45 12.31 0.67 1.46 2.08 3.75 3.38 2.58 8.46 0.15 1.46 2.08 2.80 5.85 11,068 $ 3.74 % 4.56

1,265 481 410 15 146 121 2,438

$

4.61 % 3.07 11.50 0.66 1.36 3.15 3.84 3.67 2.30 7.91 0.15 1.36 3.15 2.87 5.22 9,868 $ 3.23 % 4.34

1,098 312 364 4 174 49 2,001

$

770 195 319 207 42 1,533

$

663 177 273 124 21 1,258

3.93 % 1.95 9.91 0.18 1.66 1.25 3.12

2.67 % 1.20 8.08 1.92 1.08 2.32

2.78 % 1.79 7.65 1.12 0.60 2.43

3.14 1.46 6.83 0.04 1.66 1.25 2.33

2.15 0.89 5.64 1.92 1.08 1.74

2.78 1.79 7.65 1.12 0.60 2.43

4.73 9,267 $ 2.83 % 3.79

4.21 8,653 $ 2.36 % 3.16

3.16 7,705 1.95 % 2.50

(10) % 9 3 9 (35) (4)

72 % 197 55 NM 28 276 86

$

3,505 1,318 1,196 34 479 249 6,781

$

4.26 % 2.81 11.18 0.51 1.49 2.16 3.57 3.40 2.10 7.69 0.11 1.49 2.16 2.66 12

44

$

5.85 11,068 $ 3.74 % 4.56

1,621 331 614 361 71 2,998

116 % 298 95 NM 33 251 126

2.28 % 1.16 5.43 1.10 0.84 1.97 2.28 1.16 5.43 1.10 0.84 1.97 3.16 7,705 1.95 % 2.50

(a) Excludes the impact of purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management's estimate, as of that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $1.1 billion has been recorded for these loans as of September 30, 2009. No allowance for loan losses was recorded as of June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. (b) Average loans held-for-sale of $1.3 billion, $2.8 billion, $3.1 billion, $1.8 billion, and $1.5 billion, for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $2.4 billion, and $3.2 billion for year-to-date 2009 and 2008, respectively, were excluded when calculating the net charge-off rate. (c) Excluded mortgage loans that are insured by U.S. government agencies of $7.7 billion, $5.1 billion, $4.9 billion, $3.5 billion, and $2.2 billion, at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. These amounts are excluded, as reimbursement is proceeding normally. (d) Excluded loans that are 30 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program, of $903 million, $854 million, $770 million, $824 million, and $787 million, at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. These amounts are excluded as reimbursement is proceeding normally. (e) The delinquency rate for purchased credit-impaired loans was 25.56%, 23.37%, 21.36%, 17.89%, and 13.21% at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. (f) Nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies, of $7.0 billion, $4.2 billion, $4.2 billion, $3.0 billion, and $1.4 billion, at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively; and (2) real estate owned insured by U.S. government agencies of $579 million, $508 million, $433 million, $364 million, and $370 million at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively; and (3) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program, of $511 million, $473 million, $433 million, $437 million, and $405 million, at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. These amounts for mortgage and student loans are excluded, as reimbursement is proceeding normally. (g) Excludes purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing.

Page 15

44

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

YEAR-TO-DATE 3Q09 Change

3Q09

2Q09

1Q09

4Q08

3Q08

2Q09

3Q08

2009

2009 Change 2008

2008

CONSUMER LENDING (continued) Origination volume: Mortgage origination volume by channel Retail Wholesale (a) Correspondent CNT (negotiated transactions) Total mortgage origination volume Home equity Student loans Auto loans Application volume: Mortgage application volume by channel Retail Wholesale (a) Correspondent Total mortgage application volume

$

13.3 3.4 18.4 2.0 37.1 0.5 1.5 6.9

$

14.7 2.4 20.2 3.8 41.1 0.6 0.4 5.3

$

13.6 2.6 17.0 4.5 37.7 0.9 1.7 5.6

$

7.6 3.8 13.3 3.4 28.1 1.7 1.0 2.8

$

8.4 5.9 13.2 10.2 37.7 2.6 2.6 3.8

(10) % 42 (9) (47) (10) (17) 275 30

58 % (42) 39 (80) (2) (81) (42) 82

$

41.6 8.4 55.6 10.3 115.9 2.0 3.6 17.8

$

33.5 25.6 42.2 39.6 140.9 14.6 5.9 16.6

24 % (67) 32 (74) (18) (86) (39) 7

$

17.8 4.7 23.0 45.5

$

23.0 4.3 26.7 54.0

$

32.7 3.7 27.3 63.7

$

24.2 8.8 21.2 54.2

$

17.1 11.7 18.2 47.0

(23) 9 (14) (16)

4 (60) 26 (3)

$

73.5 12.7 77.0 163.2

$

64.9 54.2 61.3 180.4

13 (77) 26 (10)

14.9 239.8 1,114.8 16.4

8 (2) (2) (7)

21 56 (1) (17)

15.4 238.8 1,114.8 16.4

5 60 (1) (17)

66

NM

NM

836

(17)

Average mortgage loans held-for-sale & loans at fair value (b) Average assets Third-party mortgage loans serviced (ending) MSR net carrying value (ending) SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions) Production revenue Net mortgage servicing revenue: Operating revenue: Loan servicing revenue Other changes in fair value Total operating revenue Risk management: Due to inputs or assumptions in model Derivative valuation adjustments and other Total risk management Total net mortgage servicing revenue Mortgage fees and related income

18.0 373.5 1,098.9 13.6

$

(70)

16.7 381.1 1,117.5 14.6

$

284

14.0 393.3 1,148.8 10.6

$

481

12.2 395.0 1,172.6 9.3

$

62

$

16.2 382.6 1,098.9 13.6

$

695

$

1,220 (712) 508

1,279 (837) 442

1,222 (1,073) 149

1,366 (843) 523

654 (390) 264

(5) 15 15

87 (83) 92

3,721 (2,622) 1,099

1,892 (1,209) 683

97 (117) 61

(1,099) 1,534 435 943 873

3,831 (3,750) 81 523 807

1,310 (307) 1,003 1,152 1,633

(6,950) 8,327 1,377 1,900 1,962

(786) 894 108 372 438

NM NM 437 80 8

(40) 72 303 153 99

4,042 (2,523) 1,519 2,618 3,313

101 39 140 823 1,659

NM NM NM 218 100

(a) Includes rural housing loans sourced through brokers and underwritten under U.S. Department of Agriculture guidelines. (b) Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. Average balances of these loans totaled $17.7 billion, $16.2 billion, $13.4 billion, $12.0 billion, and $14.5 billion, for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $15.8 billion and $14.9 billion for year-to-date 2009 and 2008, respectively.

Page 16

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

YEAR-TO-DATE 3Q09 Change

3Q09 INCOME STATEMENT REVENUE Credit card income All other income Noninterest revenue Net interest income TOTAL NET REVENUE

$

2Q09

916 (85) 831 4,328 5,159

$

1Q09

921 (364) 557 4,311 4,868

$

4Q08

844 (197) 647 4,482 5,129

$

3Q08

862 (272) 590 4,318 4,908

$

2Q09

633 13 646 3,241 3,887

3Q08

(1) % 77 49 6

2009

45 % NM 29 34 33

$

2009 Change 2008

2008

2,681 (646) 2,035 13,121 15,156

$

1,906 223 2,129 9,437 11,566

41 % NM (4) 39 31

Provision for credit losses

4,967

4,603

4,653

3,966

2,229

8

123

14,223

6,093

133

NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE

354 829 123 1,306

329 873 131 1,333

357 850 139 1,346

335 979 175 1,489

267 773 154 1,194

8 (5) (6) (2)

33 7 (20) 9

1,040 2,552 393 3,985

792 2,377 482 3,651

31 7 (18) 9

$

(1,068) (396) (672)

(4) (5) (4)

NM NM NM

$

(3,052) (1,133) (1,919)

$

1,822 671 1,151

NM NM NM

$

(268)

84

(54)

$

(491)

$

78

NM

Income (loss) before income tax expense Income tax expense (benefit) NET INCOME (LOSS)

$

(1,114) (414) (700)

Memo: Net securitization income (loss)

$

(43)

FINANCIAL METRICS ROE Overhead ratio % of average managed outstandings: Net interest income Provision for credit losses Noninterest revenue Risk adjusted margin (a) Noninterest expense Pretax income (loss) (ROO) (b) Net income (loss) BUSINESS METRICS Charge volume (in billions) Net accounts opened (in millions) (c) Credit cards issued (in millions) Number of registered internet customers (in millions) Merchant acquiring business (d) Bank card volume (in billions) Total transactions (in billions) (a) (b) (c) (d)

(19) % 25

$

(870) (323) (547)

$

(180)

(18) % 27

10.15 11.65 1.95 0.45 3.06 (2.61) (1.64)

$

(547) (176) (371)

$

464 172 292

$

(261)

$

(28)

(15) % 26

9.93 10.60 1.28 0.61 3.07 (2.46) (1.55)

(10) % 30

9.91 10.29 1.43 1.05 2.98 (1.92) (1.21)

8 % 31

9.17 8.42 1.25 2.00 3.16 (1.16) (0.79)

(17) % 26

8.18 5.63 1.63 4.19 3.01 1.17 0.74

11 % 32

10.00 10.84 1.55 0.71 3.04 (2.32) (1.46)

8.15 5.26 1.84 4.73 3.15 1.57 0.99

$

82.6 2.4 146.6 31.3

$

82.8 2.4 151.9 30.5

$

76.0 2.2 159.0 33.8

$

96.0 4.3 168.7 35.6

$

93.9 16.6 171.9 34.3

(3) 3

(12) (86) (15) (9)

$

241.4 7.0 146.6 31.3

$

272.9 23.6 171.9 34.3

(12) (70) (15) (9)

$

103.5 4.5

$

101.4 4.5

$

94.4 4.1

$

135.1 4.9

$

197.1 5.7

2 -

(47) (21)

$

299.3 13.1

$

578.8 16.5

(48) (21)

Represents total net revenue less provision for credit losses. Pretax return on average managed outstandings. Third quarter of 2008 included approximately 13 million credit card accounts acquired by JPMorgan Chase in the Washington Mutual transaction. The Chase Paymentech Solutions joint venture was dissolved effective November 1, 2008. JPMorgan Chase retained approximately 51% of the business and operates the business under the name Chase Paymentech Solutions. For the period January 1, 2008, through October 31, 2008, the data presented represents activity for the Chase Paymentech Solutions joint venture and beyond that date, the data presented represents activity for Chase Paymentech Solutions.

Page 17

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

YEAR-TO-DATE 3Q09 Change

3Q09

2Q09

1Q09

4Q08

3Q08

2Q09

3Q08

2009

2009 Change 2008

2008

SELECTED BALANCE SHEET DATA (Period-end) Loans: Loans on balance sheets Securitized loans Managed loans

$

78,215 87,028 165,243

$

(9) % 1 (4)

(16) % (7) (11)

$

78,215 87,028 165,243

$

$

92,881 93,664 186,545

$

$

104,746 85,571 190,317

$

$

90,911 85,220 176,131

$

$

85,736 85,790 171,526

$

$

$

92,881 93,664 186,545

(16) % (7) (11)

Equity

$

15,000

$

15,000

$

15,000

$

15,000

$

15,000

-

-

$

15,000

$

15,000

-

$

192,141

$

193,310

$

201,200

$

203,943

$

169,413

(1)

13

$

195,517

$

163,560

20

$

$

(7) 2 (3)

5 10 7

$

90,154 85,352 175,506

$

$

79,183 78,371 157,554

$

$

98,790 88,505 187,295

$

$

97,783 85,619 183,402

$

$

89,692 84,417 174,109

$

$

83,146 86,017 169,163

$

78,090 76,564 154,654

15 11 13

$

15,000

$

15,000

$

15,000

$

15,000

$

14,100

-

6

$

15,000

$

14,100

6

22,283

-

3

22,283

3

SELECTED BALANCE SHEET DATA (Average) Managed assets Loans: Loans on balance sheets Securitized loans Managed average loans Equity Headcount MANAGED CREDIT QUALITY STATISTICS Net charge-offs Net charge-off rate (a)

22,850

$

Managed delinquency rates 30+ day (a) 90+ day (a) Allowance for loan losses (b) Allowance for loan losses to period-end loans (b) (c) KEY STATS - WASHINGTON MUTUAL ONLY Managed loans Managed average loans Net interest income (d) Risk adjusted margin (d) (e) Net charge-off rate (f) 30+ day delinquency rate (f) 90+ day delinquency rate (f) KEY STATS - EXCLUDING WASHINGTON MUTUAL Managed loans Managed average loans Net interest income (d) Risk adjusted margin (d) (e) Net charge-off rate 30+ day delinquency rate 90+ day delinquency rate

4,392 $ 10.30 %

5.99 % 2.76

22,897

4,353 $ 10.03 %

5.86 % 3.25

23,759

3,493 $ 7.72 %

6.16 % 3.22

24,025

2,616 $ 5.56 %

4.97 % 2.34

$

9,297 $ 11.89 %

8,839 $ 10.31 %

8,849 $ 9.73 %

7,692 $ 7.34 %

$

21,163 $ 22,287 17.04 % (4.45) 21.94 12.44 6.21

23,093 $ 24,418 17.90 % (3.89) 19.17 11.98 6.85

25,908 $ 27,578 16.45 % 4.42 14.57 10.89 5.79

28,250 $ 27,703 14.87 % 4.18 12.09 9.14 4.39

144,080 $ 146,876 9.10 % 1.19 9.41 5.38 2.48

148,433 $ 149,691 8.63 % 1.34 8.97 5.27 2.90

150,223 $ 155,824 8.75 % 0.46 6.86 5.34 2.78

162,067 $ 159,592 8.18 % 1.62 5.29 4.36 2.09

$

1,979 5.00 %

1

122

22,850

$

3.91 % 1.77 5,946 6.40 %

27,235

5,543 4.79 %

5.99 % 2.76

3.91 % 1.77

5

56

$

9,297 $ 11.89 %

(8) (9)

(22) NM

$

21,163 $ 24,742 17.11 % (1.01) 18.32 12.44 6.21

7.53 % 3.51

159,310 157,554 8.18 % 4.19 5.00 3.69 1.74

12,238 $ 9.32 %

(3) (2)

(10) (7)

$

144,080 $ 150,764 8.83 % 0.99 8.39 5.38 2.48

121

5,946 6.40 %

27,235

56

(22) NM

7.53 % 3.51

159,310 154,654 8.15 % 4.73 4.79 3.69 1.74

(10) (3)

(a) Results reflect the impact of purchase accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust. (b) Based on loans on balance sheets ("reported basis"). (c) Includes $3.0 billion and $5.0 billion of loans at September 30, 2009, and June 30, 2009, respectively, from the Washington Mutual Master Trust, which were consolidated onto the Card Services balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of September 30, 2009, or June 30, 2009. Excluding these loans, the allowance for loan losses to period-end loans was 12.36% and 10.95%, respectively. (d) As a percentage of average managed outstandings. (e) Represents total net revenue less provision for credit losses. (f) Excludes the impact of purchase accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust.

Page 18

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

YEAR-TO-DATE 3Q09 Change

3Q09 INCOME STATEMENT DATA (a) Credit card income Reported Securitization adjustments Managed credit card income Net interest income Reported Securitization adjustments Managed net interest income Total net revenue Reported Securitization adjustments Managed total net revenue

$ $

$ $

$ $

Provision for credit losses Reported Securitization adjustments Managed provision for credit losses

$

BALANCE SHEETS - AVERAGE BALANCES (a) Total average assets Reported Securitization adjustments Managed average assets

$

CREDIT QUALITY STATISTICS (a) Net charge-offs Reported Securitization adjustments Managed net charge-offs Net charge-off rates Reported Securitized Managed net charge-off rate

$

$

$ $

2Q09

1,201 (285) 916

$

2,345 1,983 4,328

$

$

$

3,461 1,698 5,159

$

3,269 1,698 4,967

$ $

109,362 82,779 192,141

$

$

$

2,694 1,698 4,392

12.85 7.83 10.30

$ $

%

1Q09

1,215 (294) 921

$

2,353 1,958 4,311

$

$

$

3,204 1,664 4,868

$

2,939 1,664 4,603

$ $

111,722 81,588 193,310

$

$

$

2,689 1,664 4,353

12.03 7.91 10.03

$ $

%

4Q08

1,384 (540) 844

$

2,478 2,004 4,482

$

$

$

3,665 1,464 5,129

$

3,189 1,464 4,653

$ $

118,418 82,782 201,200

$

$

$

2,029 1,464 3,493

8.42 6.93 7.72

$ $

%

3Q08

1,553 (691) 862

$

2,408 1,910 4,318

$

$

$

3,689 1,219 4,908

$

2,747 1,219 3,966

$ $

118,290 85,653 203,943

$

$

$

1,397 1,219 2,616

5.63 5.48 5.56

$ $

%

2Q09

1,476 (843) 633

3Q08

(1) % 3 (1)

2009

(19) % 66 45

$ $

1,525 1,716 3,241

1 -

54 16 34

$

3,014 873 3,887

8 2 6

15 95 33

$

1,356 873 2,229

11 2 8

141 95 123

$

93,701 75,712 169,413

(2) 1 (1)

17 9 13

1,106 873 1,979

2 1

144 95 122

5.56 4.43 5.00

%

$

$

$

$ $

$ $

3,800 (1,119) 2,681

$

7,176 5,945 13,121

$

$

$

10,330 4,826 15,156

$

9,397 4,826 14,223

$ $

113,134 82,383 195,517

$

$

$

7,412 4,826 12,238

10.99 7.56 9.32

2009 Change 2008

2008

$ $

%

4,529 (2,623) 1,906

(16) % 57 41

4,430 5,007 9,437

62 19 39

9,182 2,384 11,566

13 102 31

3,709 2,384 6,093

153 102 133

89,594 73,966 163,560

26 11 20

3,159 2,384 5,543

135 102 121

5.40 4.16 4.79

%

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

Page 19

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

YEAR-TO-DATE 3Q09 Change

3Q09 INCOME STATEMENT REVENUE Lending & deposit-related fees Asset management, administration and commissions All other income (a) Noninterest revenue Net interest income TOTAL NET REVENUE

$

2Q09

269 35 170 474 985 1,459

$

1Q09

270 36 152 458 995 1,453

$

4Q08

263 34 125 422 980 1,402

$

3Q08

242 32 102 376 1,103 1,479

$

2Q09

212 29 147 388 737 1,125

3Q08

- % (3) 12 3 (1) -

Provision for credit losses

355

312

293

190

126

14

NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE

196 339 10 545

197 327 11 535

200 342 11 553

164 324 11 499

177 298 11 486

(1) 4 (9) 2

Income before income tax expense Income tax expense NET INCOME

559 218 341

606 238 368

556 218 338

790 310 480

513 201 312

MEMO: Revenue by product: Lending Treasury services Investment banking Other Total Commercial Banking revenue IB revenue, gross (b) Revenue by business: Middle Market Banking Commercial Term Lending (c) Mid-Corporate Banking Real Estate Banking (c) Other (c) Total Commercial Banking revenue FINANCIAL RATIOS ROE Overhead ratio

$

$

$

675 672 99 13 1,459

$

$

$

$

$

684 679 114 (24) 1,453

301

$

771 232 278 121 57 1,459

$

17 37

$

$

%

$

$

665 646 73 18 1,402

328

$

772 224 305 120 32 1,453

$

18 37

$

$

%

$

(8) (8) (7)

9 8 9

1,721 674 1,047

1,577 618 959

9 9 9

(1) (1) (13) NM -

79 5 14 (28) 30

79 6 16 (77) 31

241

$

252

(8)

752 228 242 120 60 1,402

$

796 243 243 131 66 1,479

$

729 236 91 69 1,125

4 (9) 1 78 -

%

18 43

%

31 % 30 8 23 35 31

12 14 (14) 13

$

24 34

612 81 412 1,105 2,193 3,298

528 882 37 1,447

206

%

$

593 1,008 32 1,633

$

182

802 105 447 1,354 2,960 4,314

11 14 (9) 12

$

$

$

274

377 643 87 18 1,125

$

$

27 % 21 16 22 34 30

2009 Change 2008

2008

960

611 759 88 21 1,479

17 39

$

$

2009

$

$

$

$

2,024 1,997 286 7 4,314

$

1,132 1,889 246 31 3,298

19

$

835

$

725

6 NM 18 33 (17) 30

$

2,295 684 825 361 149 4,314

$

2,143 678 282 195 3,298

$

17 38

$

$

%

18 44

250

15

7 NM 22 28 (24) 31

%

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

Page 20

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

YEAR-TO-DATE 2009 Change 2008

3Q09 Change 3Q09 SELECTED BALANCE SHEET DATA (Period-end) Loans: Loans retained Loans held-for-sale & loans at fair value Total loans Equity SELECTED BALANCE SHEET DATA (Average) Total assets Loans: Loans retained Loans held-for-sale & loans at fair value Total loans Liability balances (a) Equity MEMO: Loans by business: Middle Market Banking Commercial Term Lending (b) Mid-Corporate Banking Real Estate Banking (b) Other (b) Total Commercial Banking loans

Net charge-off rate Allowance for loan losses to period-end loans retained Allowance for loan losses to average loans retained Allowance for loan losses to nonperforming loans retained Nonperforming loans to total period-end loans Nonperforming loans to total average loans

1Q09

4Q08

3Q08

2Q09

3Q08

2009

$

101,608 288 101,896 8,000

$

105,556 296 105,852 8,000

$

110,923 272 111,195 8,000

$

115,130 295 115,425 8,000

$

117,316 313 117,629 8,000

(4) % (3) (4) -

$

130,316

$

137,283

$

144,298

$

149,815

$

101,681

(5)

28

71,901 397 72,298 99,410 7,000

(5) 3 (5) 3 -

44 (25) 44 10 14

43,155 16,491 7,513 5,139 72,298

(5) (12) (6) (2) (5)

(16) NM (9) 54 (14) 44

5,298

(1)

(21)

40

61

NM

9 (14) 9 9

171 NM 173 167

1 10 2

14 57 16

103,752 297 104,049 109,293 8,000

$

$

Headcount CREDIT DATA AND QUALITY STATISTICS Net charge-offs Nonperforming loans: Nonperforming loans retained (c) Nonperforming loans held-for-sale & loans at fair value Total nonperforming loans: Nonperforming assets Allowance for credit losses: Allowance for loan losses Allowance for lending-related commitments Total allowance for credit losses

2Q09

108,750 288 109,038 105,829 8,000

36,200 36,943 14,933 11,547 4,426 104,049

$

$

4,177

$

113,568 297 113,865 114,975 8,000

38,193 36,963 17,012 12,347 4,523 109,038

$

$

4,228

291

$

117,351 329 117,680 114,113 8,000

40,728 36,814 18,416 13,264 4,643 113,865

$

$

4,545

181

$

42,613 37,039 18,169 13,529 6,330 117,680

$

$

5,206

134

$

118

$

2,284 18 2,302 2,461

2,090 21 2,111 2,255

1,531 1,531 1,651

1,026 1,026 1,142

844 844 923

3,063 300 3,363

3,034 272 3,306

2,945 240 3,185

2,826 206 3,032

2,698 191 2,889

1.11 3.01 2.95 134 2.26 2.21

%

0.67 2.87 2.79 145 1.99 1.94

%

0.48 2.65 2.59 192 1.38 1.34

%

0.40 2.45 2.41 275 0.89 0.87

%

0.22 % 2.30 2.32 (d) 320 0.72 0.72 (d)

(13) % (8) (13) -

2008

$

101,608 288 101,896 8,000

$

117,316 313 117,629 8,000

$

137,248

$

102,374

34

70,038 432 70,470 99,430 7,000

55 (32) 55 11 14

42,052 15,669 7,490 5,259 70,470

(9) NM 7 65 (14) 55

5,298

(21)

108,654 294 108,948 110,012 8,000

$

$

38,357 36,907 16,774 12,380 4,530 108,948

$

$

4,177

$

606

170

256

2,284 18 2,302 2,461

844 844 923

171 NM 173 167

3,063 300 3,363

2,698 191 2,889

0.75 % 3.01 2.82 134 2.26 2.11

$

(13) % (8) (13) -

14 57 16

0.32 % 2.30 3.18 (d) 320 0.72 0.99 (d)

(a) Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements. (b) Includes loans acquired in the Washington Mutual transaction starting in the period ended December 31, 2008. (c) Allowance for loan losses of $496 million, $460 million, $352 million, $208 million and $135 million were held against nonperforming loans retained for the periods ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. (d) Average loans in the calculation of this ratio were adjusted to include $44.5 billion of loans acquired from Washington Mutual as if the transaction occurred on July 1, 2008. Excluding this adjustment, the unadjusted allowance for loan losses-to-average loans retained and nonperforming loans-to-total average loans ratios would have been 3.75% and 1.17%, respectively, for the quarter ended September 30, 2008, and 3.85% and 1.20%, respectively, for the nine months ended September 30, 2008.

Page 21

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

YEAR-TO-DATE 3Q09 Change

3Q09 INCOME STATEMENT REVENUE Lending & deposit-related fees Asset management, administration and commissions All other income Noninterest revenue Net interest income TOTAL NET REVENUE

$

Provision for credit losses Credit reimbursement to IB (a)

2Q09

316 620 201 1,137 651 1,788

$

13 (31)

1Q09

314 710 221 1,245 655 1,900

$

(5) (30)

4Q08

325 626 197 1,148 673 1,821

$

(6) (30)

3Q08

304 748 268 1,320 929 2,249

$

45 (30)

2Q09

290 719 221 1,230 723 1,953 18 (31)

3Q08

2009

1 % (13) (9) (9) (1) (6)

9 % (14) (9) (8) (10) (8)

NM (3)

(28) -

$

2009 Change 2008

2008

955 1,956 619 3,530 1,979 5,509

$

2 (91)

842 2,385 649 3,876 2,009 5,885 37 (91)

13 % (18) (5) (9) (1) (6) (95) -

NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE

629 633 18 1,280

618 650 20 1,288

629 671 19 1,319

628 692 19 1,339

664 661 14 1,339

2 (3) (10) (1)

(5) (4) 29 (4)

1,876 1,954 57 3,887

1,974 1,864 46 3,884

(5) 5 24 -

Income before income tax expense Income tax expense NET INCOME

464 162 302

587 208 379

478 170 308

835 302 533

565 159 406

(21) (22) (20)

(18) 2 (26)

1,529 540 989

1,873 639 1,234

(18) (15) (20)

946 1,007 1,953

(2) (10) (6)

(3) (14) (8)

2,711 3,174 5,885

3 (14) (6)

REVENUE BY BUSINESS Treasury Services (b) Worldwide Securities Services (b) TOTAL NET REVENUE

$

$ $

FINANCIAL RATIOS ROE Overhead ratio Pretax margin ratio (c) SELECTED BALANCE SHEET DATA (Period-end) Loans (d) Equity SELECTED BALANCE SHEET DATA (Average) Total assets Loans (d) Liability balances (e) Equity Headcount

919 869 1,788

$

$ $

24 % 72 26

934 966 1,900

$

$ $

30 % 68 31

931 890 1,821

$

$ $

25 % 72 26

1,068 1,181 2,249

$

$ $

47 % 60 37

$

$ $

46 % 69 29

2,784 2,725 5,509

$

$ $

26 % 71 28

47 % 66 32

$

19,693 5,000

$

17,929 5,000

$

18,529 5,000

$

24,508 4,500

$

40,675 4,500

10 -

(52) 11

$

19,693 5,000

$

40,675 4,500

(52) 11

$

33,117 17,062 231,502 5,000

$

35,520 17,524 234,163 5,000

$

38,682 20,140 276,486 5,000

$

55,515 31,283 336,277 4,500

$

49,386 26,650 259,992 3,500

(7) (3) (1) -

(33) (36) (11) 43

$

35,753 18,231 247,219 5,000

$

54,243 24,527 260,882 3,500

(34) (26) (5) 43

27,592

(3)

(4)

27,592

(4)

26,389

27,252

26,998

27,070

26,389

(a) The Investment Bank credit portfolio group manages certain exposures on behalf of clients shared with TSS. TSS reimburses IB for a portion of the total cost of managing the credit portfolio. IB recognizes this credit reimbursement as a component of noninterest revenue. (b) Reflects an internal reorganization for escrow products, from Worldwide Securities Services to Treasury Services revenue of $38 million, $46 million, $45 million, $75 million, and $49 million for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $129 million and $148 million for year-to-date 2009 and 2008, respectively. (c) Pretax margin represents income before income tax expense divided by total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors. (d) Loan balances include wholesale overdrafts, commercial card and trade finance loans. (e) Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements.

Page 22

JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted) TSS firmwide metrics include revenue recorded in the CB, Retail Banking and Asset Management ("AM") lines of business and excludes FX revenue recorded in the IB for TSS-related FX activity. In order to capture the firmwide impact of Treasury Services ("TS") and TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business. QUARTERLY TRENDS

YEAR-TO-DATE 3Q09 Change

3Q09 TSS FIRMWIDE DISCLOSURES Treasury Services revenue - reported (a) Treasury Services revenue reported in Commercial Banking Treasury Services revenue reported in other lines of business Treasury Services firmwide revenue (a) (b) Worldwide Securities Services revenue (a) Treasury & Securities Services firmwide revenue (b) Treasury Services firmwide liability balances (average) (c) (d) Treasury & Securities Services firmwide liability balances (average) (c)

$

$ $

TSS FIRMWIDE FINANCIAL RATIOS Treasury Services firmwide overhead ratio (e) Treasury & Securities Services firmwide overhead ratio (e) FIRMWIDE BUSINESS METRICS Assets under custody (in billions)

Net charge-off (recovery) rate Allowance for loan losses to period-end loans Allowance for loan losses to average loans Allowance for loan losses to nonperforming loans Nonperforming loans to period-end loans Nonperforming loans to average loans

919 672 63 1,654 869 2,523

$

$

$

261,059 340,795

52 62

Number of: US$ ACH transactions originated (in millions) Total US$ clearing volume (in thousands) International electronic funds transfer volume (in thousands) (f) Wholesale check volume (in millions) Wholesale cards issued (in thousands) (g) CREDIT DATA AND QUALITY STATISTICS Net charge-offs (recoveries) Nonperforming loans Allowance for loan losses Allowance for lending-related commitments

2Q09

$

%

14,887

$

$

$

258,312 339,992

$

%

13,748

$

%

$

931 646 62 1,639 890 2,529

$

$

289,645 391,461

$

%

13,532

$

%

$

1,068 759 82 1,909 1,181 3,090

$

$

312,559 450,390

$

%

13,205

$

$

%

30 74 63 0.30 0.24 247 0.12 0.10

$

%

2Q09

946 643 76 1,665 1,007 2,672

3Q08 (2) % (1) (1) (10) (5)

248,075 359,401

52 60

1,006 29,346 47,734 572 22,784

2 30 51 77 0.04 0.28 0.25 170 0.16 0.15

3Q08

44 52

978 27,186 44,365 568 23,757

17 14 15 92 0.39 0.08 0.09 107 0.08 0.08

4Q08

53 63

978 28,193 47,096 572 25,501

14 15 104 0.08 0.09 107 0.07 0.08

934 679 63 1,676 966 2,642

51 59

965 28,604 48,533 530 26,977

$

1Q09

1 -

2009 (3) % 5 (17) (1) (14) (6) 5 (5)

$ $

%

8

3

997 29,277 41,831 595 21,858

(1) 1 3 (7) 6

(3) (2) 16 (11) 23

47 45

NM 13

NM (68) 131

%

2,784 1,997 188 4,969 2,725 7,694

$

$

$

269,568 357,231

52 61

14,417

0.12 0.18 NM -

$

$

%

14,887

$

19 14 15 104 0.14 0.08 0.08 107 0.07 0.08

$

%

2,711 1,889 217 4,817 3,174 7,991

3 % 6 (13) 3 (14) (4)

247,956 360,302

53 59

2,921 83,983 139,994 1,670 26,977

$

2009 Change 2008

2008

9 (1)

%

14,417

3

2,994 86,396 123,302 1,836 21,858

(2) (3) 14 (9) 23

(2) 47 45

NM NM (68) 131

(0.01) % 0.12 0.19 NM -

(a) Reflects an internal reorganization for escrow products, from Worldwide Securities Services to Treasury Services revenue, of $38 million, $46 million, $45 million, $75 million, and $49 million, for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $129 million and $148 million for year-to-date 2009 and 2008, respectively. (b) TSS firmwide FX revenue includes FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of IB. However, some of the FX revenue associated with TSS customers who are FX customers of IB is not included in TS and TSS firmwide revenue. These amounts were $154 million, $191 million, $154 million, $271 million, and $196 million, for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $499 million and $609 million for year-to-date 2009 and 2008, respectively. (c) Firmwide liability balances include liability balances recorded in Commercial Banking. (d) Reflects an internal reorganization for escrow products, from Worldwide Securities Services to Treasury Services liability balances, of $13.9 billion, $14.9 billion, $18.2 billion, $22.3 billion, and $20.3 billion for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and $15.6 billion and $21.2 billion for year-to-date 2009 and 2008, respectively. (e) Overhead ratios have been calculated based upon firmwide revenue and TSS and TS expense, respectively, including those allocated to certain other lines of business. FX revenue and expense recorded in IB for TSS-related FX activity are not included in this ratio. (f) International electronic funds transfer includes non-US dollar ACH and clearing volume. (g) Wholesale cards issued include domestic commercial card, stored value card, prepaid card and government electronic benefit card products.

Page 23

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

YEAR-TO-DATE 3Q09 Change

3Q09 INCOME STATEMENT REVENUE Asset management, administration and commissions All other income Noninterest revenue Net interest income TOTAL NET REVENUE

$

Provision for credit losses NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE Income before income tax expense Income tax expense NET INCOME REVENUE BY CLIENT SEGMENT Private Bank Institutional Retail Private Wealth Management Bear Stearns Private Client Services Total net revenue

$ $

$

FINANCIAL RATIOS ROE Overhead ratio Pretax margin ratio (a)

2Q09

1,443 238 1,681 404 2,085

$

1,315 253 1,568 414 1,982

$

4Q08

1,231 69 1,300 403 1,703

$

3Q08

1,362 (170) 1,192 466 1,658

$

2Q09

1,538 43 1,581 380 1,961

3Q08

10 % (6) 7 (2) 5

2009

(6) % 453 6 6 6

38

59

33

32

20

(36)

90

858 474 19 1,351

810 525 19 1,354

800 479 19 1,298

689 504 20 1,213

816 525 21 1,362

6 (10) -

5 (10) (10) (1)

22 23 22

20 17 23

10 15 1 (7) 5

1 10 18 (4) 10 6

696 266 430 639 534 471 339 102 2,085

$ $

$

24 % 65 33

BUSINESS METRICS Number of: Client advisors (b) Retirement planning services participants Bear Stearns brokers

1Q09

569 217 352 640 487 411 334 110 1,982

$ $

$

20 % 68 29

1,891 1,620,000 365

372 148 224 583 460 253 312 95 1,703

$ $

$

13 % 76 22

1,838 1,595,000 362

413 158 255 630 327 265 330 106 1,658

$ $

$

14 % 73 25

1,872 1,628,000 359

579 228 351 631 486 399 352 93 1,961

$

$ $

$

25 % 69 30

1,840 1,531,000 324

1,814 1,492,000 323

3,989 560 4,549 1,221 5,770

$

4 9 13

4,642 232 4,874 1,052 5,926

(14) % 141 (7) 16 (3)

130

53

2,468 1,478 57 4,003

2,527 1,496 62 4,085

(2) (1) (8) (2)

1,788 686 1,102

(8) (8) (9)

1,935 1,448 1,355 1,057 131 5,926

(4) 2 (16) (7) 134 (3)

1,637 631 1,006 1,862 1,481 1,135 985 307 5,770

$ $

$

19 % 69 28

3 2 1

2009 Change 2008

2008

145

28 % 69 30

1,891 1,620,000 365

1,814 1,492,000 323

4 9 13

% of customer assets in 4 & 5 Star Funds (c)

39 %

45 %

42 %

42 %

39 %

(13)

-

39 %

39 %

-

% of AUM in 1st and 2nd quartiles: (d) 1 year 3 years 5 years

60 % 70 % 74 %

62 % 69 % 80 %

54 % 62 % 66 %

54 % 65 % 76 %

49 % 67 % 77 %

(3) 1 (8)

22 4 (4)

60 % 70 % 74 %

49 % 67 % 77 %

22 4 (4)

SELECTED BALANCE SHEET DATA (Period-end) Loans Equity SELECTED BALANCE SHEET DATA (Average) Total assets Loans Deposits Equity

$

35,925 7,000

$

35,474 7,000

$

33,944 7,000

$

36,188 7,000

$

39,720 7,000

1 -

(10) -

$

35,925 7,000

$

39,720 7,000

(10) -

$

60,345 34,822 73,649 7,000

$

59,334 34,292 75,355 7,000

$

58,227 34,585 81,749 7,000

$

65,648 36,851 76,911 7,000

$

71,189 39,750 65,621 5,500

2 2 (2) -

(15) (12) 12 27

$

59,309 34,567 76,888 7,000

$

65,518 38,552 67,918 5,190

(9) (10) 13 35

15,493

1

(4)

15,493

(4)

Headcount CREDIT DATA AND QUALITY STATISTICS Net charge-offs (recoveries) Nonperforming loans Allowance for loan losses Allowance for lending-related commitments Net charge-off (recovery) rate Allowance for loan losses to period-end loans Allowance for loan losses to average loans Allowance for loan losses to nonperforming loans Nonperforming loans to period-end loans Nonperforming loans to average loans

(a) (b) (c) (d)

14,919 $

17 409 251 5 0.19 % 0.70 0.72 61 1.14 1.17

14,840 $

46 313 226 4 0.54 % 0.64 0.66 72 0.88 0.91

15,109 $

19 301 215 4 0.22 % 0.63 0.62 71 0.89 0.87

15,339 $

12 147 191 5 0.13 % 0.53 0.52 130 0.41 0.40

$

(1) 121 170 5 (0.01) % 0.43 0.43 140 0.30 0.30

(63) 31 11 25

NM 238 48 -

14,919 $

82 409 251 5 0.32 % 0.70 0.73 61 1.14 1.18

$

(1) 121 170 5

NM 238 48 -

% 0.43 0.44 140 0.30 0.31

Pretax margin represents income before income tax expense divided by total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors. Prior periods revised to conform with current methodology. Derived from the following rating services: Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan. Derived from the following rating services: Lipper for the United States and Taiwan; Micropal for the United Kingdom, Luxembourg and Hong Kong; and Nomura for Japan.

Page 24

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

Sep 30 2009 Assets by asset class Liquidity Fixed income Equities & balanced Alternatives TOTAL ASSETS UNDER MANAGEMENT Custody / brokerage / administration / deposits TOTAL ASSETS UNDER SUPERVISION

Assets by client segment Institutional Private Bank Retail Private Wealth Management Bear Stearns Private Client Services TOTAL ASSETS UNDER MANAGEMENT Institutional Private Bank Retail Private Wealth Management Bear Stearns Private Client Services TOTAL ASSETS UNDER SUPERVISION

Assets by geographic region U.S. / Canada International TOTAL ASSETS UNDER MANAGEMENT U.S. / Canada International TOTAL ASSETS UNDER SUPERVISION

Mutual fund assets by asset class Liquidity Fixed income Equities Alternatives TOTAL MUTUAL FUND ASSETS

$

$

$

$ $

$

$ $ $ $

$

$

Jun 30 2009

634 215 316 94 1,259 411 1,670

$

737 180 256 71 15 1,259

$

737 414 339 131 49 1,670

862 397 1,259

$

$ $

$

$ $

1,179 491 1,670

$

576 57 133 10 776

$

$

$

Mar 31 2009

617 194 264 96 1,171 372 1,543

$

697 179 216 67 12 1,171

$

697 390 289 123 44 1,543

$

814 357 1,171

$

1,103 440 1,543

$

569 48 111 9 737

$

$

$

$

$

$

$

Dec 31 2008

625 180 215 95 1,115 349 1,464

$

668 181 184 68 14 1,115

$

669 375 250 120 50 1,464

$

789 326 1,115

$

1,066 398 1,464

$

570 42 85 8 705

$

$

$

$

$

$

$

Sep 30 2008

613 180 240 100 1,133 363 1,496

$

681 181 194 71 6 1,133

$

$

$

682 378 262 124 50 1,496

$

798 335 1,133

$

1,084 412 1,496

$

553 41 92 7 693

$

$

$

$

$

Sep 30, 2009 Change Jun 30 Sep 30 2009 2008

524 189 308 132 1,153 409 1,562

3 % 11 20 (2) 8 10 8

21 % 14 3 (29) 9 7

653 194 223 75 8 1,153

6 1 19 6 25 8

13 (7) 15 (5) 88 9

653 417 303 134 55 1,562

6 6 17 7 11 8

13 (1) 12 (2) (11) 7

785 368 1,153

6 11 8

10 8 9

1,100 462 1,562

7 12 8

7 6 7

470 44 127 7 648

1 19 20 11 5

23 30 5 43 20

Page 25

JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions) QUARTERLY TRENDS 3Q09 ASSETS UNDER SUPERVISION (continued) Assets under management rollforward Beginning balance Net asset flows: Liquidity Fixed income Equities, balanced & alternative Market / performance / other impacts TOTAL ASSETS UNDER MANAGEMENT Assets under supervision rollforward Beginning balance Net asset flows Market / performance / other impacts TOTAL ASSETS UNDER SUPERVISION

$

1,171

$

9 13 12 54 1,259

$

$

1,543 45 82 1,670

2Q09

$

1,115

$

(7) 8 2 53 1,171

$

$

1,464 (9) 88 1,543

1Q09

$

1,133

$

19 1 (5) (33) 1,115

$

$

1,496 25 (57) 1,464

YEAR-TO-DATE 4Q08

$

1,153

$

86 (7) (18) (81) 1,133

$

$

1,562 73 (139) 1,496

3Q08

$

1,185

$

55 (4) (5) (78) 1,153

$

$

1,611 61 (110) 1,562

2009

$

1,133

$

21 22 9 74 1,259

$

$

1,496 61 113 1,670

2008

$

1,193

$

124 (5) (29) (130) 1,153

$

$

1,572 108 (118) 1,562

Page 26

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

YEAR-TO-DATE 3Q09 Change

3Q09 INCOME STATEMENT REVENUE Principal transactions Securities gains All other income (a) Noninterest revenue Net interest income (expense) TOTAL NET REVENUE

$

Provision for credit losses (b)

MEMO: TOTAL NET REVENUE Private equity Corporate TOTAL NET REVENUE NET INCOME (LOSS) Private equity Corporate Merger-related items (e) TOTAL NET INCOME (LOSS) Headcount

1,109 181 273 1,563 1,031 2,594

$

62

NONINTEREST EXPENSE Compensation expense Noncompensation expense (c) Merger costs Subtotal Net expense allocated to other businesses TOTAL NONINTEREST EXPENSE Income (loss) before income tax expense and extraordinary gain Income tax expense (benefit) Income (loss) before extraordinary gain Extraordinary gain (d) NET INCOME (LOSS)

2Q09

$

$ $ $

$

1Q09

1,243 366 (209) 1,400 865 2,265 9

768 875 103 1,746 (1,243) 503

655 1,319 143 2,117 (1,253) 864

2,029 818 1,211 76 1,287

1,392 584 808 808

$

172 2,422 2,594

$

88 1,269 (70) 1,287

$

20,747

$

$

$

(1,493) 214 (19) (1,298) 989 (309)

$

-

$

$

(27) 993 (158) 808

$

$

$

(221) 41 (262) (262)

$

(449) 140 (309)

$

(280) 252 (234) (262)

$

22,339

3Q08

(1,620) 499 685 (436) 868 432

$

$

$

3Q08

2009

NM % (59) NM NM NM NM

1,977

NM

(97)

438 673 181 1,292 (1,364) (72)

652 563 96 1,311 (1,150) 161

17 (34) (28) (18) 1 (42)

537 317 220 1,325 1,545

(3,974) (1,613) (2,361) 581 (1,780)

46 40 50 NM 59

18 55 7 33 (8) 212 NM NM NM (87) NM

(216) (1,620) (1,836)

NM 7 15

NM NM NM

$

(164) (881) (735) (1,780)

NM 28 56 59

NM NM 90 NM

$

24,967

(4)

(17)

$

(1,107) 1,539 432

$

(682) 1,163 1,064 1,545

$

23,376

$

$

(1,876) 440 (275) (1,711) (125) (1,836)

2Q09

(11) % (51) NM 12 19 15

(33)

641 345 205 1,191 (1,279) (88)

(1) 2,266 2,265

21,522

4Q08

$

859 761 45 1,665 2,885 4,550

$

71

$

$

$

2009 Change 2008

2008

(1,968) 1,138 988 158 (521) (363)

NM % (33) (95) NM NM NM

2,014

(96)

2,064 2,539 451 5,054 (3,775) 1,279

1,902 1,168 251 3,321 (3,277) 44

9 117 80 52 (15) NM

3,200 1,443 1,757 76 1,833

(2,421) (852) (1,569) 581 (988)

NM NM NM (87) NM

144 (507) (363)

NM NM NM

(8) 295 (1,275) (988)

NM NM 64 NM

24,967

(17)

$

(278) 4,828 4,550

$

(219) 2,514 (462) 1,833

$

20,747

$

$

(a) Included the following significant items: a gain of $1.0 billion from the dissolution of the Chase Paymentech Solutions joint venture in the fourth quarter of 2008, a charge of $375 million for the repurchase of auction rate securities in the third quarter of 2008, $423 million representing the Firm's share of Bear Stearns' losses from April 8 to May 30, 2008, in the second quarter of 2008, and proceeds of $1.5 billion from the sale of Visa shares in its initial public offering in the first quarter of 2008. (b) The fourth and third quarters of 2008 included accounting conformity loan loss reserve provisions related to the acquisition of Washington Mutual Bank's banking operations. An analysis of loans acquired in the transaction was substantially completed during the fourth quarter. This resulted in an increase in the purchased credit-impaired loan balances, a corresponding reduction in the non-credit-impaired portfolio and a reduction in the estimate of incurred losses related to the non-credit-impaired portfolio requiring a reduction in the accounting conformity provision for these loans. Also, the fourth quarter of 2008 includes a provision for credit losses related to the transfer of higher quality credit card loans from the legacy Chase portfolio to a securitization trust previously established by Washington Mutual. (c) Second quarter 2009 includes a $675 million FDIC special assessment. (d) JPMorgan Chase acquired the banking operations of Washington Mutual Bank for $1.9 billion. The fair value of the net assets acquired exceeded the purchase price, which resulted in negative goodwill. In accordance with U.S. GAAP for business combinations, nonfinancial assets that are not held-for-sale were written down against that negative goodwill. The negative goodwill that remained after writing down nonfinancial assets was recognized as an extraordinary gain. (e) Included accounting conformity loan loss reserve provisions, extraordinary gains and merger costs related to the Washington Mutual transaction, as well as items related to the Bear Stearns merger, including Bear Stearns' losses, merger costs, Bear Stearns asset management liquidation costs and Bear Stearns Private Client Services broker retention expense.

Page 27

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

YEAR-TO-DATE 3Q09 Change

3Q09

2Q09

1Q09

4Q08

3Q08

2Q09

3Q08

2009

2008

2009 Change 2008

SUPPLEMENTAL TREASURY Securities gains (a) (b) Investment securities portfolio (average) (b) Investment securities portfolio (ending) (b) Mortgage loans (average) Mortgage loans (ending) PRIVATE EQUITY Private equity gains (losses) Direct investments Realized gains Unrealized gains (losses) (c) Total direct investments Third-party fund investments Total private equity gains (losses) (d) Private equity portfolio information Direct investments Publicly-held securities Carrying value Cost Quoted public value Privately-held direct securities Carrying value Cost Third-party fund investments (e) Carrying value Cost

$

181 339,745 351,823 7,469 7,665

$

$

57 88 145 10 155

$

$

$

674 751 720

$

$

374 336,263 326,414 7,228 7,368

25 16 41 (61) (20)

431 778 477

$

$

$

$

214 265,785 316,498 7,210 7,162

15 (409) (394) (68) (462)

305 778 346

$

$

$

$

512 159,209 192,564 7,277 7,292

24 (1,000) (976) (121) (1,097)

483 792 543

$

$

$

$

442 108,728 119,085 7,221 7,297

(52) % 1 8 3 4

(59) % 212 195 3 5

$

40 (273) (233) 27 (206)

128 450 254 NM NM

43 NM NM (63) NM

$

600 705 657

56 (3) 51

12 7 10

4,722 5,823

4,709 5,627

4,708 5,519

5,564 6,296

6,038 6,058

3

(22) (4)

1,440 2,068

1,420 2,055

1,537 2,082

805 1,169

889 1,121

1 1

62 84

Total private equity portfolio - Carrying value

$

6,836

$

6,560

$

6,550

$

6,852

$

7,527

4

(9)

Total private equity portfolio - Cost

$

8,642

$

8,460

$

8,379

$

8,257

$

7,884

2

10

$

769 314,202 351,823 7,303 7,665

97 (305) (208) (119) (327)

$

$

$

1,140 97,498 119,085 6,986 7,297

1,693 (1,480) 213 (10) 203

(33) % 222 195 5 5

(94) 79 NM NM NM

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

Page 28

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

Sep 30 2009 CREDIT EXPOSURE WHOLESALE (a) Loans retained Loans held-for-sale and loans at fair value TOTAL WHOLESALE LOANS - REPORTED

$

CONSUMER (b) Home loan portfolio - excluding purchased credit-impaired loans: Home equity Prime mortgage Subprime mortgage Option ARMs Total home loan portfolio - excluding purchased credit-impaired loans Home loan portfolio - purchased credit-impaired loans: (c) Home equity Prime mortgage Subprime mortgage Option ARMs Total home loan portfolio - purchased credit-impaired loans Other consumer: Auto Credit card - reported: Credit card - reported excluding loans consolidated from the Washington Mutual Master Trust Credit card - reported loans consolidated from the Washington Mutual Master Trust (d) Total credit card - reported Other loans Loans retained Loans held-for-sale (e) TOTAL CONSUMER LOANS - REPORTED

213,718 5,235 218,953

Jun 30 2009

$

224,080 7,545 231,625

Mar 31 2009

$

230,534 11,750 242,284

Dec 31 2008

$

248,089 13,955 262,044

Sep 30 2008

$

271,465 16,980 288,445

Sep 30, 2009 Change Sep 30 2008

Jun 30 2009

(5) % (31) (5)

(21) % (69) (24)

104,795 67,597 13,270 8,852 194,514

108,229 68,878 13,825 9,034 199,966

111,781 71,731 14,594 8,940 207,046

114,335 72,266 15,330 9,018 210,949

116,804 70,243 18,162 18,989 224,198

(3) (2) (4) (2) (3)

(10) (4) (27) (53) (13)

27,088 20,229 6,135 29,750 83,202

27,729 20,807 6,341 30,529 85,406

28,366 21,398 6,565 31,243 87,572

28,555 21,855 6,760 31,643 88,813

26,507 24,672 3,863 22,653 77,695

(2) (3) (3) (3) (3)

2 (18) 59 31 7

44,309

42,887

43,065

42,603

43,306

3

2

75,207 3,008 78,215 32,405 432,645 1,546 434,191

80,722 5,014 85,736 33,041 447,036 1,940 448,976

90,911 90,911 33,700 462,294 3,665 465,959

104,746 104,746 33,715 480,826 2,028 482,854

92,881 92,881 33,252 471,332 1,604 472,936

(7) (40) (9) (2) (3) (20) (3)

(19) NM (16) (3) (8) (4) (8)

653,144 87,028 740,172 94,065 13,148 2,329 849,714 343,135 1,192,849

$

680,601 85,790 766,391 97,491 12,977 2,972 879,831 343,991 1,223,822

$

708,243 85,220 793,463 131,247 14,504 939,214 363,013 1,302,227

$

744,898 85,571 830,469 162,626 16,141 1,009,236 379,871 1,389,107

$

761,381 93,664 855,045 118,648 25,422 999,115 407,823 1,406,938

(4) 1 (3) (4) 1 (22) (3) (3)

(14) (7) (13) (21) (48) NM (15) (16) (15)

TOTAL LOANS - REPORTED Credit card - securitized TOTAL LOANS - MANAGED Derivative receivables Receivables from customers (f) Interests in purchased receivables TOTAL CREDIT-RELATED ASSETS Wholesale lending-related commitments TOTAL

$

Memo: Total by category Total wholesale exposure (g) Total consumer managed loans (h) Total

$

671,630 521,219 1,192,849

$

689,056 534,766 1,223,822

$

751,048 551,179 1,302,227

$

820,682 568,425 1,389,107

$

840,338 566,600 1,406,938

(3) (3) (3)

(20) (8) (15)

$

474,005

$

491,168

$

546,968

$

605,210

$

620,524

(3)

(24)

$

$

$

$

$

Risk profile of wholesale credit exposure: Investment-grade Noninvestment-grade: Noncriticized Criticized performing Criticized nonperforming Total noninvestment-grade

141,578 27,217 8,118 176,913

141,408 26,453 6,533 174,394

147,891 25,320 4,615 177,826

159,379 22,568 3,429 185,376

161,503 14,491 1,418 177,412

3 24 1

(12) 88 472 -

Loans held-for-sale & loans at fair value Receivables from customers (f) Interests in purchased receivables Total wholesale exposure

5,235 13,148 2,329 671,630

7,545 12,977 2,972 689,056

11,750 14,504 751,048

13,955 16,141 820,682

16,980 25,422 840,338

(31) 1 (22) (3)

(69) (48) NM (20)

$

$

$

$

$

(a) Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management. (b) Includes Retail Financial Services, Card Services and residential mortgage loans reported in the Corporate/Private Equity segment to be risk managed by the Chief Investment Office. (c) Purchased credit-impaired loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase's acquisition date. These loans were initially recorded at fair value and accrete interest income over the estimated life of the loan when cash flows are reasonably estimable even if the underlying loans are contractually past due. As of September 30, 2008, an analysis of the acquired portfolio was conducted in order to preliminarily identify loans meeting impairment criteria. This analysis was completed during the fourth quarter of 2008, resulting in the reclassification of $12.4 billion of acquired loans from the non-credit-impaired loan balances into the credit-impaired loan balances. (d) Represents loans from the Washington Mutual Master Trust, which were consolidated onto the Firm's balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of September 30, 2009 and June 30, 2009. (e) Included loans for prime mortgage of $187 million, $589 million, $825 million, $206 million, and $132 million at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and other (largely student loans) of $1.4 billion, $1.4 billion, $2.8 billion, $1.8 billion, and $1.5 billion at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. (f) Represents margin loans to prime and retail brokerage customers, which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets. (g) Primarily represents total wholesale loans, derivative receivables, wholesale lending-related commitments and receivables from customers. (h) Represents total consumer loans plus credit card securitizations, and excludes consumer lending-related commitments.

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

Page 29

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

Sep 30 2009 NONPERFORMING ASSETS AND RATIOS WHOLESALE LOANS Loans retained Loans held-for-sale and loans at fair value TOTAL WHOLESALE LOANS

$

Jun 30 2009

7,494 146 7,640

$

Mar 31 2009

5,829 133 5,962

$

Dec 31 2008

3,605 57 3,662

$

Sep 30, 2009 Change Jun 30 Sep 30 2009 2008

Sep 30 2008

2,350 32 2,382

$

1,373 32 1,405

29 % 10 28

446 356 444

CONSUMER LOANS (a) Home loan portfolio (includes RFS and Corporate/Private Equity): Home equity Prime mortgage Subprime mortgage Option ARMs Total home loan portfolio Auto loans Credit card - reported Other loans TOTAL CONSUMER LOANS (b) (c)

1,598 4,007 3,233 244 9,082 179 3 863 10,127

1,487 3,501 2,773 182 7,943 154 4 722 8,823

1,591 2,712 2,545 97 6,945 165 4 625 7,739

1,394 1,895 2,690 10 5,989 148 4 430 6,571

1,142 1,496 2,384 5,022 119 5 382 5,528

7 14 17 34 14 16 (25) 20 15

40 168 36 NM 81 50 (40) 126 83

TOTAL NONPERFORMING LOANS REPORTED

17,767

14,785

11,401

8,953

6,933

20

156

Derivative receivables Assets acquired in loan satisfactions TOTAL NONPERFORMING ASSETS (b)

624 1,971 20,362

704 2,028 17,517

1,010 2,243 14,654

1,079 2,682 12,714

45 2,542 9,520

(11) (3) 16

NM (22) 114

28 12 (25) 9 29 18 16

NM 48 (40) 167 NM 249 290 114

$

TOTAL NONPERFORMING LOANS TO TOTAL LOANS REPORTED NONPERFORMING ASSETS BY LOB Investment Bank Retail Financial Services (c) Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity (d) TOTAL

2.72

$

$

5,782 11,641 3 2,461 14 422 39 20,362

$ %

2.17

$

$

4,534 10,351 4 2,255 14 326 33 17,517

$ %

1.61

$

$

3,041 9,582 4 1,651 30 319 27 14,654

$ %

1.20

$

$

2,501 8,841 4 1,142 30 172 24 12,714

$ %

0.91

$

$

583 7,878 5 923 121 10 9,520

%

%

(a) There were no nonperforming loans held-for-sale at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, or September 30, 2008. (b) Nonperforming loans and assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.0 billion, $4.2 billion, $4.2 billion, $3.0 billion, and $1.4 billion, at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively; (2) real estate owned insured by U.S. government agencies of $579 million, $508 million, $433 million, $364 million, and $370 million at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively and (3) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program, of $511 million, $473 million, $433 million, $437 million, and $405 million, at September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively. These amounts for mortgage and student loans are excluded, as reimbursement is proceeding normally. (c) Excludes home lending purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis, and the pools are considered to be performing. Also excludes loans held-for-sale and loans at fair value. (d) Predominantly relates to held-for-investment prime mortgage.

Page 30

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

YEAR-TO-DATE 3Q09 Change

3Q09 GROSS CHARGE-OFFS Wholesale loans Consumer loans (includes RFS and Corporate/Private Equity) Credit card loans - reported Total loans - reported Credit card loans - securitized Total loans - managed

$

2Q09

1,093

$

1Q09 697

$

4Q08 206

$

3Q08 238

$

2Q09 71

2,634 2,894 6,621 1,810 8,431

2,718 2,883 6,298 1,776 8,074

2,244 2,189 4,639 1,579 6,218

1,752 1,559 3,549 1,351 4,900

1,375 1,245 2,691 985 3,676

3Q08 57 %

2009 NM %

68

98

(31)

148 554 770 339 1,109

158 439 695 341 1,036

(6) 26 11 (1) 7

21

19

94

84

13 200 248 112 360

67 194 279 112 391

68 160 243 115 358

51 162 234 123 357

49 139 207 112 319

(81) 3 (11) (8)

(73) 44 20 13

NET CHARGE-OFFS Wholesale loans Consumer loans (includes RFS and Corporate/Private Equity) Credit card loans - reported Total loans - reported Credit card loans - securitized Total loans - managed

1,058

679

191

217

52

56

NM

2,621 2,694 6,373 1,698 8,071

2,651 2,689 6,019 1,664 7,683

2,176 2,029 4,396 1,464 5,860

1,701 1,397 3,315 1,228 4,543

1,326 1,106 2,484 873 3,357

NET CHARGE-OFF RATES Wholesale retained loans Consumer retained loans Total retained loans - reported Consumer loans - managed Total loans - managed Consumer loans - managed excluding purchased credit - impaired loans (a) Total loans - managed excluding purchased credit impaired loans (a) Memo: Average Retained Loans Wholesale loans - reported Consumer loans - reported Total loans - reported Consumer loans - managed Total loans - managed

1.93 4.79 3.84 5.29 4.30 6.29 4.85

217,952 440,376 658,328 526,393 744,345

%

1.19 % 4.69 3.52 5.20 4.00 6.18 4.51

229,105 456,292 685,397 540,709 769,814

0.32 % 3.61 2.51 4.12 2.98 4.90 3.36

238,689 471,918 710,607 557,537 796,226

0.33 % 2.59 1.80 3.05 2.20 3.62 2.46

258,770 475,239 734,009 563,744 822,514

$

0.10 % 3.13 1.91 3.39 2.24 3.39 2.24

208,288 309,044 517,332 387,415 595,703

NM %

3,334 3,598 7,215 2,725 9,940

15

$

283

7,596 7,966 17,558 5,165 22,723

18

$

$

92 132 146 84 129

35

$

1,996

(3) 5 2 4

RECOVERIES Wholesale loans Consumer loans (includes RFS and Corporate/Private Equity) Credit card loans - reported Total loans - reported Credit card loans - securitized Total loans - managed

$

$

2009 Change 2008

2008

(1) 6 2 5

98 144 157 95 140

$

1,928

185

7,448 7,412 16,788 4,826 21,614

3,176 3,159 6,520 2,384 8,904

1.13 4.36 3.28 4.86 3.75 5.78 4.23

228,506 456,080 684,586 541,432 769,938

$

%

0.12 2.78 1.70 3.06 2.02 3.06 2.02

128 121 143 90 129

NM 135 135 157 102 143

%

206,464 304,540 511,004 381,104 587,568

(a) Excludes the impact of purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management's estimate, as of that date, of credit losses over the remaining life of the portfolio.

Page 31

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

YEAR-TO-DATE 2009 Change 2008

3Q09 Change 3Q09 SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES Beginning balance Acquired allowance resulting from the Washington Mutual transaction Net charge-offs Provision for loan losses (a) Other (b) Ending balance SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS Beginning balance Provision for lending-related commitments Other Ending balance ALLOWANCE COMPONENTS AND RATIOS ALLOWANCE FOR LOAN LOSSES Wholesale Asset specific Formula - based Total wholesale

$

$

$

$

$

Consumer Asset specific Formula - based Total consumer Total allowance for loan losses Allowance for lending-related commitments Total allowance for credit losses

29,072 6,373 8,029 (95) 30,633

$

$

746 75 821

$

$

2,410 5,631 8,041

$

161 22,431 22,592

$

REPORTED RATIOS Wholesale allowance for loan losses to total wholesale retained loans Consumer allowance for loan losses to total consumer retained loans Allowance for loan losses to total retained loans

$

$

1Q09

27,381 6,019 7,923 (213) 29,072

$

$

638 108 746

$

$

2,108 6,284 8,392

$

132 20,548 20,680

30,633 821 31,454

3.76 5.22 4.74

MANAGED RATIOS Consumer allowance for loan losses to total consumer retained loans excluding purchased credit-impaired loans and loans from the Washington Mutual Trust (c) (d) Allowance for loan losses to ending loans excluding purchased credit-impaired loans and loans from the Washington Mutual Master Trust (c) (d) Allowance for loan losses to total retained nonperforming loans (e) ALLOWANCE FOR LOAN LOSSES BY LOB Investment Bank Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity Total

2Q09

$

%

23,164 4,396 8,617 (4) 27,381

$

$

659 (21) 638

$

$

1,213 6,691 7,904

$

106 19,371 19,477

29,072 746 29,818

3.75 4.63 4.33

4Q08

$

%

19,052 3,315 7,434 (7) 23,164

$

$

713 (121) 67 659

$

$

712 5,833 6,545

$

74 16,545 16,619

27,381 638 28,019

3.43 4.21 3.95

3Q08

$

%

23,164 659 23,823

2.64 3.46 3.18

$

%

2Q09

13,246 2,535 2,484 5,760 (5) 19,052

14 (10) (4)

NM 6 44

70 13,403 13,473

22 9 9

130 67 68

19,052 713 19,765

5 10 5

61 15 59

(8) 12 5 1 11 (28) 5

77 77 56 14 (68) 48 (10) 61

2.06 2.86 2.56

3.42 2.87

168

198

241

260

287

$

$

4,682 10,619 8,849 2,945 51 215 20 27,381

$

$

3,444 8,918 7,692 2,826 74 191 19 23,164

$

$

$

253 5,326 5,579

4.24 3.62

$

$

9 178 15

5.20 4.53

5,101 11,832 8,839 3,034 15 226 25 29,072

119 % NM 157 39 NM 61

17 (31) 10

5.80 5.01

$

6 % 6 1 55 5

2009

686 27 713

6.21 5.28

4,703 13,286 9,297 3,063 15 251 18 30,633

3Q08

2,654 7,517 5,946 2,698 47 170 20 19,052

$

$

2008

23,164 16,788 24,569 (312) 30,633

659 162 821

$

$

$

$

9,234 2,535 6,520 13,803 19,052

850 (137) 713

151 % NM 157 78 NM 61

(22) NM 15

%

(a) Includes accounting conformity loan loss provision related to the acquisition of Washington Mutual Bank's banking operations. (b) Activity for the second quarter of 2009, predominantly included a reclassification related to the issuance and retention of securities from the Chase Issuance Trust. (c) Excludes the impact of purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management's estimate, as of that date, of credit losses over the remaining life of the portfolio. The allowance for loan losses associated with these loans was $1.1 billion at September 30, 2009. No allowance for loan losses was recorded for these loans as of June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008. (d) Excludes loans from the Washington Mutual Master Trust, which were consolidated onto the Firm's balance sheet at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of September 30, 2009 and June 30, 2009. (e) Excludes consumer purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing. The allowance for loan losses associated with these loans was $1.1 billion at September 30, 2009. No allowance for loan losses was recorded as of June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively.

Page 32

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

YEAR-TO-DATE 3Q09 Change

3Q09 PROVISION FOR CREDIT LOSSES LOANS Investment Bank Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity (a) (b) Total wholesale Retail Financial Services Card Services - reported Corporate/Private Equity (a) Total consumer Total provision for loan losses LENDING-RELATED COMMITMENTS Investment Bank Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity (a) Total wholesale Retail Financial Services Card Services - reported Corporate/Private Equity (a) Total consumer Total provision for lending-related commitments TOTAL PROVISION FOR CREDIT LOSSES Investment Bank Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity (a) (b) Total wholesale Retail Financial Services Card Services - reported Corporate/Private Equity (a) Total consumer Total provision for credit losses Credit card - securitized Managed provision for credit losses

$

$

$

$

$

$

2Q09

330 326 1 37 (6) 688 4,004 3,269 68 7,341 8,029

49 29 12 1 91 (16) (16) 75

379 355 13 38 (6) 779 3,988 3,269 68 7,325 8,104 1,698 9,802

$

$

$

$

$

$

1Q09

815 280 (20) 59 7 1,141 3,841 2,939 2 6,782 7,923

56 32 15 103 5 5 108

871 312 (5) 59 7 1,244 3,846 2,939 2 6,787 8,031 1,664 9,695

$

1,274 263 (20) 34 1,551 3,877 3,189 7,066 8,617

$

$

(64) 30 14 (1) (21) (21)

$

$

$

4Q08

1,210 293 (6) 33 1,530 3,877 3,189 7,066 8,596 1,464 10,060

$

$

$

$

$

$

3Q08

869 180 27 32 76 1,184 3,578 2,747 (75) 6,250 7,434

(104) 10 18 5 (71) (2) (48) (50) (121)

765 190 45 32 81 1,113 3,576 2,747 (123) 6,200 7,313 1,228 8,541

$

$

$

$

$

$

2Q09

238 105 7 21 564 935 2,056 1,356 1,413 4,825 5,760

3Q08

2009

(60) % 16 NM (37) NM (40) 4 11 NM 8 1

39 % 210 (86) 76 NM (26) 95 141 (95) 52 39

(13) (9) (20) NM (12) NM NM (31)

NM 38 9 NM 237 NM NM 178

234 126 18 20 564 962 2,056 1,356 1,413 4,825 5,787

(56) 14 NM (36) NM (37) 4 11 NM 8 1

62 182 (28) 90 NM (19) 94 141 (95) 52 40

873 6,660

2 1

95 47

(4) 21 11 (1) 27 27

$

$

$

$

$

$

2009 Change 2008

2008

2,419 869 (39) 130 1 3,380 11,722 9,397 70 21,189 24,569

41 91 41 173 (11) (11) 162

2,460 960 2 130 1 3,553 11,711 9,397 70 21,178 24,731 4,826 29,557

$

$

$

$

$

$

1,347 325 25 55 600 2,352 6,328 3,709 1,414 11,451 13,803

(97) (51) 12 (2) (138) 1 1 (137)

80 % 167 NM 136 (100) 44 85 153 (95) 85 78

NM NM 242 NM NM NM NM NM

1,250 274 37 53 600 2,214 6,329 3,709 1,414 11,452 13,666

97 250 (95) 145 (100) 60 85 153 (95) 85 81

2,384 16,050

102 84

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

Page 33

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

YEAR-TO-DATE 3Q09 Change

3Q09 AVERAGE IB TRADING VAR AND CREDIT PORTFOLIO VAR - 99% CONFIDENCE LEVEL (a) IB VaR by risk type: Fixed income Foreign exchange Equities Commodities and other Diversification benefit to IB trading VaR (b) 99% IB Trading VaR (c) Credit portfolio VaR (d) Diversification benefit to IB trading and credit portfolio VaR (b) 99% Total IB trading and credit portfolio VaR

AVERAGE IB TRADING VAR , CREDIT PORTFOLIO VAR AND OTHER VAR - 95% CONFIDENCE LEVEL (e) IB VaR by risk type: Fixed income Foreign exchange Equities Commodities and other Diversification benefit to IB trading VaR (b) 95% IB Trading VaR (c)

$

$

$

2Q09

243 30 28 38 (134) 205 50 (49) 206

182 19 19 23 (97) 146

$

$

$

1Q09

249 26 77 34 (136) 250 133 (116) 267

179 16 50 22 (97) 170

$

$

$

4Q08

218 40 162 28 (159) 289 182 (135) 336

158 23 97 20 (108) 190

$

$

$

3Q08

276 55 87 30 (146) 302 165 (140) 327

194 32 47 21 (103) 191

$

$

$

2Q09

183 20 80 41 (104) 220

3Q08

(2) % 15 (64) 12 1 (18)

2009

33 % 50 (65) (7) (29) (7)

47 (49) 218

(62) 58 (23)

6 (6)

130 13 46 24 (69) 144

2 19 (62) 5 (14)

40 46 (59) (4) (41) 1

$

$

$

237 32 88 34 (144) 247 120 (99) 268

29 (32) 143

68 (60) 178

86 (63) 213

66 (50) 207

25 (22) 147

(57) 47 (20)

16 (45) (3)

61 (52) 177

Consumer Lending VaR (f) Corporate Risk Management VaR (g) Diversification benefit to total other VaR (b) Total other VaR

49 99 (31) 117

43 111 (29) 125

108 121 (61) 168

56 76 (31) 101

19 22 (10) 31

14 (11) (7) (6)

158 350 (210) 277

66 111 (41) 136

(24) 154

8 (17)

(242) 16

$

(82) 178

$

(89) 214

$

(93) 288

$

(56) 252

$

$

$

$

150 27 47 33 (95) 162 38 (39) 161

58 % 19 87 3 (52) 52 216 (154) 66

173 19 55 22 (101) 168

Credit portfolio VaR (d) Diversification benefit to IB trading and credit portfolio VaR (b) 95% Total IB trading and credit portfolio VaR

Diversification benefit to total IB and other VaR (b) Total IB and other VaR

2009 Change 2008

2008

(87) 226

(a) Results for year-to-date 2008 include four months of the combined Firm’s (JPMorgan Chase & Co.’s and Bear Stearns’) results and five months of heritage JPMorgan Chase & Co results. (b) Average VaRs were less than the sum of the VaRs of their market risk components, which was due to risk offsets resulting from portfolio diversification. The diversification effect reflected the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is therefore usually less than the sum of the risks of the positions themselves. (c) IB Trading VaR includes predominantly all trading activities in IB; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. The 95% IB Trading VaR includes syndicated lending facilities that the Firm intends to distribute, and the credit spread sensitivities of certain mortgage products. The 99% IB Trading VaR includes the credit spread sensitivities of certain mortgage products but does not include syndicated lending facilities that the Firm intends to distribute. Both the 95% and 99% IB Trading VaR do not include the debit valuation adjustments ("DVA") taken on derivative and structured liabilities to reflect the credit quality of the Firm. (d) Includes VaR on derivative credit valuation adjustments ("CVA"), hedges of the CVA and mark-to-market hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio. (e) In the third quarter of 2008, the Firm revised the VaR measurement to create a more comprehensive view of its market risks by adding syndicated lending facilities that the Firm intends to distribute, and the credit spread sensitivities of certain mortgage products. In addition, certain actively managed positions utilized as part of the Firm's risk management function within Corporate and in RFS' mortgage banking businesses have been added to IB VaR to provide a Total IB and other VaR measure. Finally, the Firm moved from using a 99% confidence level to a 95% confidence level since the 95% level provides a more stable measure of the VaR for day-to-day risk management. Results for the nine months ended September 30, 2008, are not available. This section presents the results of the Firm’s VaR measure under the revised measurement using a 95% confidence level. The Firm intends to only present the VaR at this confidence level once information for five quarters and two comparative year-to-date periods is available. (f) Consumer Lending VaR includes the Firm’s mortgage pipeline and warehouse, MSR and all related hedges. (g) Corporate Risk Management VaR includes certain actively managed positions utilized as part of the Firm's risk management function within Corporate. It does not include certain nontrading activity such as Private Equity, principal investing (e.g., mezzanine financing, tax-oriented investments, etc.) and Corporate Treasury balance sheet and capital management positions as well as longer-term corporate investments.

Page 34

JPMORGAN CHASE & CO. CAPITAL, INTANGIBLE ASSETS AND DEPOSITS (in millions, except ratio data) Sep 30, 2009 Change Sep 30 2009 CAPITAL RATIOS (a) Tier 1 common capital Tier 1 capital Total capital Risk-weighted assets Adjusted average assets Tier 1 common capital ratio Tier 1 capital ratio Total capital ratio Tier 1 leverage ratio TANGIBLE COMMON EQUITY (PERIOD-END) (b) Common stockholders' equity Less : Goodwill Less : Other intangible assets Add : Deferred tax liabilities (c) Total tangible common equity TANGIBLE COMMON EQUITY (AVERAGE) (b) Common stockholders' equity Less : Goodwill Less : Other intangible assets Add : Deferred tax liabilities (c) Total tangible common equity INTANGIBLE ASSETS (PERIOD-END) Goodwill Mortgage servicing rights Purchased credit card relationships All other intangibles Total intangibles DEPOSITS (PERIOD-END) U.S. offices: Noninterest-bearing Interest-bearing Non-U.S. offices: Noninterest-bearing Interest-bearing Total deposits

$

$

$

$

$

$

$

$

$

Jun 30 2009

101,420 (d) $ 126,541 (d) 171,842 (d) 1,240,830 (d) 1,940,722 (d) 8.2 % (d) 10.2 (d) 13.8 (d) 6.5 (d)

154,101 48,334 4,862 2,527 103,432

$

149,468 48,328 4,984 2,531 98,687

$

48,334 13,663 1,342 3,520 66,859

$

195,561 415,122

$

9,390 247,904 867,977

$

$

$

$

96,850 122,174 167,767 1,260,237 1,969,339 7.7 9.7 13.3 6.2

Mar 31 2009

$

%

146,614 48,288 5,082 2,535 95,779

$

140,865 48,273 5,218 2,518 89,892

$

48,288 14,600 1,431 3,651 67,970

$

192,247 433,862

$

8,291 232,077 866,477

$

$

$

$

Dec 31 2008

87,878 $ 137,144 183,109 1,207,490 1,923,186 7.3 % 11.4 15.2 7.1

138,201 48,201 5,349 2,502 87,153

$

136,493 48,071 5,443 2,609 85,588

$

48,201 10,634 1,528 3,821 64,184

$

197,027 463,913

$

7,073 238,956 906,969

$

$

$

$

Sep 30 2008

86,908 $ 136,104 184,720 1,244,659 1,966,895 7.0 % 10.9 14.8 6.9

134,945 48,027 5,581 2,717 84,054

$

138,757 46,838 5,586 2,547 88,880

$

48,027 9,403 1,649 3,932 63,011

$

210,899 511,077

$

7,697 279,604 1,009,277

$

$

$

$

86,267 111,630 159,175 1,261,034 1,555,297 6.8 % 8.9 12.6 7.2

Jun 30 2009

YEAR-TO-DATE Sep 30 2008

5 % 4 2 (2) (1)

2009

2008

2009 Change 2008

18 % 13 8 (2) 25

137,691 46,121 5,480 2,377 88,467

5 (4) 8

12 5 (11) 6 17

126,640 45,947 5,512 2,378 77,559

6 (4) 1 10

18 5 (10) 6 27

46,121 17,048 1,827 3,653 68,649

(6) (6) (4) (2)

5 (20) (27) (4) (3)

193,253 506,974

2 (4)

1 (18)

9,747 259,809 969,783

13 7 -

(4) (5) (10)

$

$

142,322 48,225 5,214 2,552 91,435

$

$

125,878 45,809 5,845 2,309 76,533

13 % 5 (11) 11 19

(a) The Federal Reserve granted the Firm, for a period of 18 months following the merger with Bear Stearns, relief up to a certain specified amount and subject to certain conditions from the Federal Reserve's risk-based capital and leverage requirements with respect to the Bear Stearns' risk-weighted assets and other exposures acquired. The relief ended September 30, 2009. Commencing in the second quarter of 2009, the Firm no longer adjusted its risk-based capital ratios to take into account the relief in the calculation of its risk-based capital ratios. (b) 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. The Firm views TCE, a non-GAAP financial measure, as a meaningful measure of capital quality. (c) Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted with goodwill and other intangibles when calculating tangible common equity. (d) Estimated.

Page 35

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

YEAR-TO-DATE 3Q09 Change

3Q09 EARNINGS PER SHARE DATA (a) Basic earnings per share: Income (loss) before extraordinary gain Extraordinary gain Net income Less: Preferred stock dividends Less: Accelerated amortization from redemption of preferred stock issued to the U.S. Treasury (b) Net income applicable to common equity Less: Dividends and undistributed earnings allocated to participating securities Net income applicable to common stockholders (c)

$

$

Total weighted-average basic shares outstanding

$

Diluted earnings per share: Net income applicable to common stockholders (c)

$

$

Total weighted-average basic shares outstanding Add: Employee stock options and SARs (d) Total weighted-average diluted shares outstanding (e)

COMMON SHARES OUTSTANDING Common shares outstanding - at period end (f) Cash dividends declared per share Book value per share Dividend payout SHARE PRICE High Low Close Market capitalization STOCK REPURCHASE PROGRAM Common shares repurchased

3,512 76 3,588 163

$

3,425 185 3,240

$

3,937.9

Income (loss) before extraordinary gain per share (b) Extraordinary gain per share Net income per share (b)

Income (loss) before extraordinary gain per share (b) Extraordinary gain per share Net income per share (b)

2Q09

$

$

$

3,240

$

$

$

46.50 31.59 43.82 172,596

-

$

1,112 1,136 64 1,072

$

$ $

$

$

1,072

$

$

%

$

38.94 25.29 34.11 133,852

-

2,141 2,141 529

$

1,612 93 1,519

$

$ $

$

$

1,519

$

$

%

$

31.64 14.96 26.58 99,881

-

(623) 1,325 702 423

$

279 47 232

$

$ $

$

$

232

$

$

%

$

(0.29) 0.35 0.06

3,732.8 0.38 36.15 532

50.63 19.69 31.53 117,695

-

2Q09

$ $

$ %

$

3Q08

2009

(54) 581 527 161

29 % NM 32 (66)

NM % (87) NM 1

366 48 318

NM 201 189 202

NM 285 NM

3,444.6

(0.29) 0.35 0.06

3,737.5 (g) 3,737.5

0.40 0.40

3,757.7 0.05 36.78 15

3Q08

3,737.5

0.40 0.40

3,755.7 3.0 3,758.7

0.28 0.28

3,924.1 0.05 37.36 14

4Q08

3,755.7

0.28 0.28

3,811.5 12.6 3,824.1

0.80 0.02 0.82

3,938.7 0.05 39.12 6

2,721 2,721 473

3,811.5

0.80 0.02 0.82

3,937.9 24.1 3,962.0 $

1Q09

3

$

$

14

186 NM 193

NM (88) NM

$

318

202

NM

$

3,444.6 (g) 3,444.6

3 91 4

14 NM 15

186 NM 193

NM (88) NM

5

6 (87) 6

19 25 28 29

(5) 8 (6) (1)

(0.08) 0.17 0.09

3,726.9 0.38 36.95 399

49.00 29.24 46.70 174,048

-

$

-

1,112 6,173 348 5,825

$

$

$ $

$

$

4,322 581 4,903 251

94 % (87) 72 364

4,652 160 4,492

33 118 30

3,422.3

1.50 0.02 1.52

$

5,825

$

$

3,835.0 13.3 3,848.3

%

-

8,374 76 8,450 1,165

3,835.0

(0.08) 0.17 0.09

2009 Change 2008

2008

12

1.14 0.17 1.31

32 (88) 16

4,492

30

3,422.3 23.9 3,446.2

12 (44) 12

1.13 0.17 1.30

33 (94) 16

3,938.7 0.15 $ 39.12 10 %

3,726.9 1.14 36.95 89 %

6 (87) 6

46.50 14.96 43.82 172,596

49.95 29.24 46.70 174,048

(7) (49) (6) (1)

1.50 0.01 1.51

-

$ $

$

-

-

(a) Effective January 1, 2009, the Firm implemented new FASB guidance for participating securities, which clarifies that unvested stock-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents are participating securities and should be included in the EPS calculation using the two-class method. JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. EPS data for the prior periods were revised as required by the guidance. (b) The calculation of second quarter 2009 earnings per share included a one-time, non-cash reduction of $1.1 billion, or $0.27 per share, resulting from the redemption of Series K preferred stock issued to the U.S. Treasury. (c) Net income applicable to common stockholders for diluted and basic EPS may differ under the two-class method as a result of adding common stock equivalents for options, SARs and warrants to dilutive shares outstanding, which alters the ratio used to allocate earnings to common stockholders and participating securities for purposes of calculating diluted EPS. (d) Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and (subsequent to October 28, 2008) the warrant issued under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock totaling 241 million, 315 million, 363 million, 353 million, and 304 million for the quarters ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, and September 30, 2008, respectively, and 306 million and 178 million for the nine months ended September 30, 2009 and 2008, respectively. (e) Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury-stock method. (f) On June 5, 2009, the Firm issued $5.8 billion, or 163 million shares, of its common stock at $35.25 per share; and on September 30, 2008, the Firm issued $11.5 billion, or 284 million shares, of its common stock at $40.50 per share. (g) Common equivalent shares have been excluded from the computation of diluted loss per share for the fourth and third quarters of 2008, as the effect would have been antidilutive.

Page 36

JPMORGAN CHASE & CO. Glossary of Terms ACH: Automated Clearing House. Allowance for loan losses to total loans : Represents period-end Allowance for loan losses divided by retained loans. Average managed assets: Refers to total assets on the Firm's Consolidated Balance Sheets plus credit card receivables that have been securitized. Beneficial interest issued by consolidated VIEs: Represents the interest of third-party holders of debt/equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates. The underlying obligations of the VIEs consist of short-term borrowings, commercial paper and long-term debt. The related assets consist of trading assets, available-for-sale securities, loans and other assets. Contractual credit card charge-off: In accordance with the Federal Financial Institutions Examination Council policy, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification of the filing of bankruptcy, whichever is earlier. Corporate/Private Equity: Includes Private Equity, Treasury and Corporate Other, which includes other centrally managed expense and discontinued operations.

Managed credit card receivables: Refers to credit card receivables on the Firm's Consolidated Balance Sheets plus credit card receivables that have been securitized. Mark-to-market exposure: A measure, at a point in time, of the value of a derivative or foreign exchange contract in the open market. When the mark-to-market value is positive, it indicates the counterparty owes JPMorgan Chase and, therefore, creates a repayment risk for the Firm. When the mark-to-market value is negative, JPMorgan Chase owes the counterparty. In this situation, the Firm does not have repayment risk. Merger costs: Reflects costs associated with the Washington Mutual and Bear Stearns mergers in 2008. MSR risk management revenue: Includes changes in MSR asset fair value due to inputs or assumptions in model and derivative valuation adjustments and other. Net charge off ratio: Represents net charge-offs (annualized) divided by average retained loans for the reporting period. Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds. NM: Not meaningful.

Credit card securitizations: Card Services' managed results excludes the impact of credit card securitizations on total net revenue, the provision for credit losses, net charge-offs and loan receivables. Through securitization, the Firm transforms a portion of its credit card receivables into securities, which are sold to investors. The credit card receivables are removed from the Consolidated Balance Sheets through the transfer of the receivables to a trust and the sale of undivided interests to investors that entitle the investors to specific cash flows generated from the credit card receivables. The Firm retains the remaining undivided interests as seller’s interests, which are recorded in loans on the Consolidated Balance Sheets. A gain or loss on the sale of credit card receivables to investors is recorded in other income. Securitization also affects the Firm’s Consolidated Statements of Income as the aggregate amount of interest income, certain fee revenue and recoveries that is in excess of the aggregate amount of interest paid to the investors, gross credit losses and other trust expense related to the securitized receivables are reclassified into credit card income in the Consolidated Statements of Income.

Overhead ratio: Noninterest expense as a percentage of total net revenue. Principal transactions (revenue): Realized and unrealized gains and losses from trading activities (including physical commodities inventories that are accounted for at the lower of cost or fair value) and changes in fair value associated with financial instruments held by the Investment Bank for which the fair value option was elected. Principal transactions revenue also include private equity gains and losses. Retained loans: Loans that are held for investment excluding loans held-for-sale and loans at fair value. Reported basis: Financial statements prepared under accounting principles generally accepted in the United States of America ("U.S. GAAP"). The reported basis includes the impact of credit card securitizations, but excludes the impact of taxable equivalent adjustments.

FASB: Financial Accounting Standards Board. Interests in purchased receivables: Represent an ownership interest in cash flows of an underlying pool of receivables transferred by a third-party seller into a bankruptcy-remote entity, generally a trust. Investment-grade: An indication of credit quality based upon JPMorgan Chase's internal risk assessment system. “Investment-grade” generally represents a risk profile similar to a rating of a "BBB-"/"Baa3" or better, as defined by independent rating agencies. Managed basis: A non-GAAP presentation of financial results that includes reclassifications related to credit card securitizations and to present revenue on a fully taxable-equivalent basis. Management uses this non-GAAP financial measure at the segment level because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.

Taxable-equivalent basis: Total net revenue for each of the business segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to fully taxable securities and investments. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense. Unaudited: Financial statements and information that have not been subjected to auditing procedures sufficient to permit an independent certified public accountant to express an opinion. U.S. GAAP: Accounting principles generally accepted in the United States of America. Value-at-risk: A measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.

Page 37

JPMORGAN CHASE & CO. Line of Business Metrics Investment Banking

Retail Financial Services (continued)

IB'S REVENUE COMPRISES THE FOLLOWING:

MORTGAGE ORIGINATION CHANNELS COMPRISE THE FOLLOWING:

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

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

2. Fixed income markets include client and portfolio management revenue related to both market-making and proprietary risk-taking across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets. 3. Equities markets include client and portfolio management revenue related to market-making and proprietary risk-taking across global equity products, including cash instruments, derivatives and convertibles. 4. Credit portfolio revenue includes net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring, for the IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm's lending and derivative activities, and changes in the credit valuation adjustment, which is the component of the fair value of a derivative that reflects the credit quality of the counterparty.

2. Wholesale - A third-party mortgage broker refers loan applications to a mortgage banker at the Firm. Brokers are independent loan originators that specialize in finding and counseling borrowers but do not provide funding for loans. 3. Correspondent - Correspondents are banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm. 4. Correspondent negotiated transactions ("CNT") - These transactions occur when mid- to large-sized mortgage lenders, banks and bank-owned mortgage companies sell servicing to the Firm on an as-originated basis, and exclude purchased bulk servicing transactions. These transactions supplement traditional production channels and provide growth opportunities in the servicing portfolio in stable and rising-rate periods.

Retail Financial Services

Card Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN RETAIL BANKING:

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN CARD SERVICES:

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

1. Charge volume - Represents the dollar amount of cardmember purchases, balance transfers and cash advance activity. 2. Net accounts opened - Includes originations, purchases and sales.

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

3. Merchant acquiring business - Represents a business that processes bank card transactions for merchants.

MORTGAGE FEES AND RELATED INCOME COMPRISE THE FOLLOWING:

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

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

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

2. Net mortgage servicing revenue a) Operating revenue comprises: – all gross income earned from servicing third-party mortgage loans including stated service fees, excess service fees, late fees and other ancillary fees. – modeled servicing portfolio runoff (or time decay). b) Risk management comprises: – changes in MSR asset fair value due to market-based inputs such as interest rates and volatility, as well as updates to assumptions used in the MSR valuation model. – derivative valuation adjustments and other, which represents changes in the fair value of derivative instruments used to offset the impact of changes in the market-based inputs to the MSR valuation model.

Page 38

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

Asset Management

COMMERCIAL BANKING REVENUE COMPRISES THE FOLLOWING:

Assets under management: Represent assets actively managed by Asset Management on behalf of Institutional, Retail, Private Banking, Private Wealth Management and Bear Stearns Private Client Services clients. Excludes assets managed by American Century Companies, Inc., in which the Firm has a 42% ownership interest as of September 30, 2009.

1. Lending includes a variety of financing alternatives, which are primarily provided on a basis secured by receivables, inventory, equipment, real estate or other assets. Products include term loans, revolving lines of credit, bridge financing, asset-based structures and leases. 2. Treasury services includes a broad range of products and services enabling clients to transfer, invest and manage the receipt and disbursement of funds, while providing the related information reporting. These products and services include U.S. dollar and multi-currency clearing, ACH, lockbox, disbursement and reconciliation services, check deposits, other check and currency-related services, trade finance and logistics solutions, commercial card, and deposit products, sweeps and money market mutual funds.

Assets under supervision: Represents assets under management as well as custody, brokerage, administration and deposit accounts. Alternative assets: The following types of assets constitute alternative investments - hedge funds, currency, real estate and private equity. AM's CLIENT SEGMENTS COMPRISE THE FOLLOWING:

3. Investment banking products provide clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through loan syndications, investment-grade debt, asset-backed securities, private placements, high-yield bonds, equity underwriting, advisory, interest rate derivatives, foreign exchange hedges and securities sales. DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN COMMERCIAL BANKING: 1. Liability balances include deposits and deposits that are swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities sold under repurchase agreements. 2. IB revenue, gross - Represents total revenue related to investment banking products sold to CB clients.

1. Institutional brings comprehensive global investment services - including asset management, pension analytics, asset/liability management and active risk budgeting strategies - to corporate and public institutions, endowments, foundations, not-for-profit organizations and governments worldwide. 2. Retail provides worldwide investment management services and retirement planning and administration through third-party and direct distribution of a full range of investment vehicles. 3. The Private Bank addresses every facet of wealth management for ultra-high-net-worth individuals and families worldwide, including investment management, capital markets and risk management, tax and estate planning, banking, capital raising and specialty-wealth advisory services. 4. Private Wealth Management offers high-net-worth individuals, families and business owners in the United States comprehensive wealth management solutions, including investment management, capital markets and risk management, tax and estate planning, banking, and specialty-wealth advisory services.

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

5. Bear Stearns Private Client Services provides investment advice and wealth management services to highnet-worth individuals, money managers, and small corporations.

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN TREASURY & SECURITIES SERVICES: Liability balances include deposits and deposits that are swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements.

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