Final Fa Project

Abhinav Kumar Singh SIMSREE PGDBM-855

JP Morgan Chase & Co.

Acknowledgements This report has been prepared after thorough research and intense brainstorming with my faculty, colleagues and friends. I will like to thank all of them for their vital inputs in this project.

I wish to especially acknowledge Prof. Pavan V. Jhabak, our Financial Accounting faculty, who has provided me the opportunity to work on this project and providing valuable inputs wherever required throughout the semester. Not to mention his constant efforts to improve our subject knowledge, financial understanding, clearance of concepts related to markets and general trends/position of various issues related to finance. He is undoubtedly one of the main reasons for our deep interest in the area of finance. I at this point of time wish to sincerely thank him for his constant and valuable efforts.

Efforts have been made by me to keep the contents of the report as authentic and error-free as possible. If however due to inadvertence, the report contains any discrepancy in data or presentation, then I am open to feedback in such an eventuality.

Hope this report makes for a valuable & interesting reading.

Introduction Many new investors are intimidated by the pages and pages of numbers in financial newspapers. It's easy to see why. These tables pack a lot of information into a small space and can be complicated unless you know what you are looking for. Learning how to read these tables will help you keep track of your portfolio's performance. This tutorial will take you through six of the most popular financial tables and tickers you see in newspapers, on television and on the Internet.

About JP Morgan Chase & Co. JPMorgan Chase & Co. (JPMorgan Chase), incorporated in 1968, is a financial holding company. JPMorgan Chase's principal bank subsidiaries are JPMorgan Chase Bank, National Association (JPMorgan Chase Bank, N.A.), a national banking association with branches in 17 states, and Chase Bank USA, National Association (Chase Bank USA, N.A.), a national bank that is the Company's credit card issuing bank. JPMorgan Chase's principal non-banking subsidiary is J.P. Morgan Securities Inc., its United States investment banking firm. The bank and non-bank subsidiaries of JPMorgan Chase operate nationally, as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. In May 2007, the Company completed the acquisition of Xign Corporation, a provider of business-to-business financial settlement solutions. The business will be known as JPMorgan Xign Corporation. In January 2008, JPMorgan Chase acquired an additional equity interest in Highbridge Capital Management, LLC (Highbridge). As a result, the Company owns 77.5% of Highbridge as of January 31, 2008. On May 30, 2008, JPMorgan Chase completed the acquisition of The Bear Stearns Companies Inc. In September 2008, JPMorgan Chase acquired all deposits, assets and certain liabilities of Washington Mutual's (WM) banking operations from the Federal Deposit Insurance Corporation (FDIC). In November 2008, Chase Paymentech announced the completion of its transition from a joint venture with First Data Corp to a wholly owned unit of the Company. The Company's activities are organized into six business segments: Investment Bank, Retail Financial Services (RFS), Card Services (CS), Commercial Banking (CB), Treasury & Securities Services (TSS) and Asset Management (AM). Its wholesale business comprises the Investment Bank, Commercial Banking, Treasury & Securities Services, and Asset & Wealth Management. Its consumer business comprises Retail Financial Services and Card Services. It also has a corporate segment, which includes Private Equity, Treasury and Corporate operations. Investment Bank

The Investment Bank’s clients are corporations, financial institutions, governments and institutional investors. The Company offers a range of investment banking products and services in many capital markets, including advising on corporate strategy and structure, capital raising in equity and debt markets, risk management, market-making in cash securities and derivative instruments, and research. The Investment Bank also commits JPMorgan Chase’s own capital to investing and trading activities. Retail Financial Services RFS, which includes the Regional Banking, Mortgage Banking and Auto Finance reporting segments, serves consumers and businesses through bank branches, automated teller machines (ATMs), online banking and telephone banking. RFS serves customers through more than 3,100 bank branches, 9,100 ATMs and 290 mortgage offices, and through relationships with more than 14,500 auto dealerships and 5,200 schools and universities. More than 13,700 branch salespeople assist customers, across a 17-state footprint from New York to Arizona, with checking and savings accounts, mortgage, home equity and business loans, investments and insurance. Card Services CS is a credit card issuer. It has more than 155 million cards in circulation and $157 billion in managed loans. Customers used Chase cards for over $354 billion worth of transactions during the year ended December 31, 2007. Chase Paymentech Solutions, LLC, a joint venture with JPMorgan Chase and First Data Corporation, is a processor of MasterCard and Visa payments, having handled over 19 billion transactions in 2007. Commercial Banking CB serves more than 30,000 clients, including corporations, municipalities, financial institutions and not-for-profit entities. In partnership with the Company’s other businesses, it provides comprehensive solutions, including lending, treasury services, investment banking and asset management to meet its clients’ domestic and international financial needs. Treasury & Securities Services TSS is engaged in providing transaction, investment and information services. It also offers cash management and global custodian services. Treasury Services provides cash management, trade, wholesale card and liquidity products and services to small and midsized companies, multinational corporations, financial institutions and government entities. Treasury Services partners with the Commercial Banking, Retail Financial Services and Asset Management businesses to serve clients Company-wide. Worldwide Securities Services (WSS) holds, values, clears and services securities, cash and alternative investments for investors and broker-dealers, and manages depositary receipt programs globally. Asset Management

Asset Management (AM) offers investment and wealth management services. AM clients include institutions, retail investors and high-net-worth individuals in various markets throughout the world. AM offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity, including both money market instruments and bank deposits. AM also provides trust and estate and banking services to high-net-worth clients, and retirement services for corporations and individuals. The majority of AM’s client assets are in actively managed portfolios. JPMorgan Chase & Co. owns five bank subsidiaries in the United States: ➢ Chase Bank USA, National Association ➢ JPMorgan Chase Bank, National Association ➢ JPMorgan Chase Bank, Dearborn ➢ J.P. Morgan Trust Company, National Association ➢ Custodial Trust Companys Key Executives: Mr. James Dimon , 51 Exec. Chairman, Chief Exec. Officer, Pres and Member of Operating Committee Mr. Michael J. Cavanagh , 41 Chief Financial Officer, Exec. VP and Member of Operating Committee Mr. Steven D. Black , 55 Head of Investment Bank, Member of Operating Committee and Co-Chief Exec. Officer of J.P. Morgan Investment Bank Mr. James E. Staley , 51 Chief Exec. Officer of Asset & Wealth Management and Member of Operating Committee Mr. William T. Winters , 46 Co-Chief Exec. Officer of J.P. Morgan Investment Bank and Member of Operating Committee

Financial Statements Annual Balance Sheet In Millions of U.S. Dollars (except for per share items) Total Current Assets Cash & Due from Banks Other Earning Assets, Total Net Loans Property/Plant/Equipment, Total - Gross Accumulated Depreciation, Total Property/Plant/Equipment, Total - Net Goodwill, Net Intangibles, Net Long Term Investments Other Long Term Assets, Total Other Assets, Total Total Assets Accounts Payable Payable/Accrued Accrued Expenses

2007 2006 2005 2004 2003 31/12/20 31/12/20 31/12/20 31/12/20 31/12/2 07 06 05 04 003 -----40,144.0 40,412.0 36,670.0 35,168.0 20,268.0 0 0 0 0 0 843,406. 691,831. 582,597. 561,523. 449,242. 00 00 00 00 00 510,140. 475,848. 412,058. 394,794. 210,243. 00 00 00 00 00 --

--

--

--

--

--

--

--

--

--

9,319.00 45,270.0 0 14,731.0 0 --99,137.0 0 1,562,1 50.00 -94,476.0 0 --

8,735.00 45,186.0 0 14,852.0 0 --74,656.0 0 1,351,5 20.00 -88,096.0 0 --

9,081.00 43,621.0 0 14,559.0 0 --100,356. 00 1,198,9 40.00 -78,460.0 0 --

9,145.00 43,203.0 0 14,684.0 0 --98,731.0 0 1,157,2 50.00 -75,722.0 0 --

6,487.00 8,511.00 6,480.00 --69,681.0 0 770,91 2.00 -45,066.0 0 --

Total Deposits Other Bearing Liabilities, Total Total Short Term Borrowings Current Port. of LT Debt/Capital Leases Other Current liabilities, Total Total Current Liabilities Long Term Debt Capital Lease Obligations Total Long Term Debt Total Debt Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Redeemable Preferred Stock, Total Preferred Stock - Non Redeemable, Net Common Stock, Total Additional Paid-In Capital Retained Earnings (Accumulated Deficit) Treasury Stock - Common ESOP Debt Guarantee Unrealized Gain (Loss) Other Equity, Total Total Equity Total Liabilities & Shareholders' Equity Shares Outs - Common Stock Primary Issue Shares Outstanding - Common Issue 2 Shares Outstanding - Common Issue 3 Shares Outstanding - Common Issue 4

740,728. 638,788. 554,991. 521,456. 326,492. 00 00 00 00 00 -----232,829. 199,075. 150,267. 149,431. 136,675. 00 00 00 00 00 ---213,026. 00 -213,026. 00 445,855. 00 --157,867. 00 1,438,9 30.00

---161,814. 00 -161,814. 00 360,889. 00 --147,957. 00 1,235,7 30.00

---162,083. 00 -162,083. 00 312,350. 00 --145,930. 00 1,091,7 30.00

---153,779. 00 -153,779. 00 303,210. 00 --151,207. 00 1,051,6 00.00

---67,077.0 0 -67,077.0 0 203,752. 00 --149,448. 00 724,75 8.00

--

--

--

--

--

0 0 139 339 1,009.00 3,658.00 3,658.00 3,618.00 3,585.00 2,044.00 78,597.0 77,807.0 74,994.0 72,801.0 13,512.0 0 0 0 0 0 54,715.0 43,600.0 33,848.0 30,209.0 29,681.0 0 0 0 0 0 12,832.0 0 -7,718.00 -4,762.00 -1,073.00 -62 -----------917 -1,557.00 -626 -208 -30 123,221 115,790 107,211 105,653 46,154. .00 .00 .00 .00 00 1,562,1 1,351,5 1,198,9 1,157,2 770,91 50.00 20.00 40.00 50.00 2.00 3,367.38

3,461.68

3,486.69

3,556.19

2,042.62

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Total Common Shares Outstanding Total Preferred Shares Outstanding

3,367.38

3,461.68

3,486.69

3,556.19

2,042.62

--

--

--

--

--

2007 31/12/20 07

2006 31/12/20 06

2005 31/12/20 05

2004 31/12/20 04

2003 31/12/20 03

71,387.0

59,107.0

45,075.0

30,460.0

24,044.0

Annual Income Statement In Millions of U.S. Dollars (except for per share items) Interest Income, Bank

Total Interest Expense Net Interest Income Loan Loss Provision Net Interest Inc. After Loan Loss Prov. Non-Interest Income, Bank Non-Interest Expense, Bank Net Income Before Taxes Provision for Income Taxes Net Income After Taxes Minority Interest Equity In Affiliates U.S. GAAP Adjustment Net Income Before Extra. Items Accounting Change Discontinued Operations Extraordinary Item Tax on Extraordinary Items Net Income Preferred Dividends General Partners' Distributions Miscellaneous Earnings Adjustment Pro Forma Adjustment Interest Adjustment - Primary EPS Income Available to Com Excl ExtraOrd Income Available to Com Incl ExtraOrd Basic Weighted Average Shares Basic EPS Excluding Extraordinary Items Basic EPS Including Extraordinary Items Dilution Adjustment Diluted Weighted Average Shares

0 44,981.0 0 26,406.0 0 6,864.00 19,542.0 0 44,966.0 0 41,703.0 0 22,805.0 0 7,440.00 15,365.0 0 ---15,365.0 0 -0 --15,365.0 0 0 --

0 37,865.0 0 21,242.0 0 3,270.00 17,972.0 0 40,757.0 0 38,843.0 0 19,886.0 0 6,237.00 13,649.0 0 ---13,649.0 0 -795 --14,444.0 0 -4 --

---

---

0 25,520.0 0 19,555.0 0 3,483.00 16,072.0 0 34,693.0 0 38,926.0 0 11,839.0 0 3,585.00

0 13,933.0 0 16,527.0 0 2,544.00 13,983.0 0 25,845.0 0 33,972.0 0 5,856.00 1,596.00

0 11,079.0 0 12,965.0 0 1,540.00 11,425.0 0 20,419.0 0 21,816.0 0 10,028.0 0 3,309.00

8,254.00 4,260.00 6,719.00 ---------8,254.00 4,260.00 6,719.00 --0 229 206 -------8,483.00 4,466.00 6,719.00 -13 -52 -51 ------

---

---

-----15,365.0 13,645.0 0 0 8,241.00 4,208.00 6,668.00 15,365.0 14,440.0 0 0 8,470.00 4,414.00 6,668.00 3,404.00 3,470.00 3,492.00 2,780.00 2,008.60 4.514

3.932

4.514 0

4.161 0

3,508.00

3,574.00

2.36

1.514

3.32

1.588

3.32 0

2,851.00

2,055.10

2.426 0 -3,557.00

Diluted EPS Excluding ExtraOrd Items Diluted EPS Including ExtraOrd Items DPS - Common Stock Primary Issue Gross Dividends - Common Stock Total Special Items Normalized Income Before Taxes Effect of Special Items on Income Taxes Inc Tax Ex Impact of Sp Items Normalized Income After Taxes Normalized Inc. Avail to Com. Basic Normalized EPS Diluted Normalized EPS

4.38

3.818

2.317

1.476

3.245

4.38

4.04

2.381

1.548

3.245

1.48

1.36

1.36

1.36

1.36

5,165.00 209 23,014.0 0

4,860.00 305 20,191.0 0

4,831.00 722 12,561.0 0

3,886.00 1,365.00 7,221.00

2,838.00 100 10,128.0 0

68 7,508.00 15,506.0 0 15,506.0 0 4.555 4.42

96 6,333.00 13,858.0 0 13,854.0 0 3.993 3.876

219 3,804.00

372 1,968.00

33 3,342.00

8,757.00

5,253.00

6,786.00

8,744.00 2.504 2.458

5,201.00 1.871 1.824

6,735.00 3.353 3.277

Annual Cash Flow Statement In Millions of U.S. Dollars (except for per share items)

Net Income/Starting Line Depreciation/Depletion Amortization Deferred Taxes Non-Cash Items Changes in Working Capital Cash from Operating Activities Capital Expenditures Other Investing Cash Flow Items, Total Cash from Investing Activities Financing Cash Flow Items Total Cash Dividends Paid Issuance (Retirement) of Stock, Net Issuance (Retirement) of Debt, Net

2007 31/12/20 07

2006 31/12/20 06

2005 31/12/20 05

2004 31/12/20 04

2003 31/12/20 03

15,365.0 14,444.0 0 0 8,483.00 4,466.00 6,719.00 2,427.00 2,149.00 2,828.00 2,924.00 3,101.00 1,394.00 1,428.00 1,490.00 911 -1,307.00 -1,810.00 -1,791.00 -827 1,428.00 578 -3,771.00 -5,941.00 5,630.00 -408 131,631. 62,019.0 35,305.0 28,251.0 00 0 0 0 3,435.00 110,560 49,579. 30,236. 15,147. 14,275. .00 00 00 00 00 -----73,118.0 99,627.0 12,944.0 29,734.0 12,744.0 0 0 0 0 0 73,118. 99,627. 12,944. 29,734. 12,744. 00 00 00 00 00 107,605. 124,902. 33,421.0 59,121.0 34,033.0 00 00 0 0 0 -5,051.00 -4,846.00 -4,878.00 -3,927.00 -2,865.00 -6,711.00 87,143.0 0

-2,418.00 35,111.0 0

-2,930.00 19,456.0 0

-560

1,213.00

4,962.00

9,434.00

Cash from Financing Activities Foreign Exchange Effects Net Change in Cash

182,986 .00 424

152,749 .00 199

45,069. 00 -387

-268

3,742.00

1,502.00

59,596. 00 185 14,900.0 0

Trend Analysis Ten Years Summary Balance Sheet - 10 Year Summary (in Millions)

Dec-07 Dec-06 Dec-05

Current Assets 1,562,147.0 0 1,351,520.0 0 1,198,942.0 0

Current Liabilities

Long Term Debt

Shares Outstanding

1,438,926.00

213,026.00

3.4 Bil

1,235,730.00

161,814.00

3.5 Bil

1,091,731.00

162,083.00

3.5 Bil

26,251. 00 282 1,050.00

Dec-04 Dec-03 Dec-02 Dec-01 Dec-00 Dec-99 Dec-98

1,157,248.0 0 770,912.00 758,800.00 693,575.00 715,348.00 667,003.00 626,942.00

1,051,595.00 724,758.00 716,494.00 652,476.00 673,010.00 631,947.00 591,843.00

153,779.00 67,077.00 45,190.00 43,622.00 47,238.00 45,540.00 47,132.00

3.6 2.0 2.0 2.0 1.9 1.9 1.9

Bil Bil Bil Bil Bil Bil Bil

Income Statement - 10 Year Summary (in Millions) Sal es Dec-07

0

Dec-06

0

Dec-05

0

Dec-04

0

Dec-03

0

Dec-02

0

Dec-01

0

Dec-00

0

Dec-99

0

Dec-98

0

EBIT 22,805. 00 19,886. 00 11,839. 00 5,856.0 0 10,028. 00 2,519.0 0 2,566.0 0 8,733.0 0 11,489. 00 7,347.0 0

Depreciat ion

Total Net Income

3,821.00

15,365.00

3,577.00

13,649.00

4,318.00

8,254.00

3,835.00

4,260.00

3,101.00

6,719.00

2,979.00

1,663.00

2,891.00

1,719.00

2,545.00

5,727.00

1,945.00

7,501.00

1,915.00

4,745.00

Price Movement (10 yrs):

EP S 4.3 8 3.8 2 2.3 2 1.4 8 3.2 4 0.8 0.8 2 2.8 6 3.6 9 2.2 7

Tax Rate (%) 32.62 31.36 30.28 27.25 33 33.98 33.01 34.42 34.71 35.42

Income Statement Items:

Balance Sheet Items:

Key Ratios Growth Rates Growth Rates % Sales (Qtr vs year ago qtr) Net Income (YTD vs YTD) Net Income (Qtr vs year ago qtr) Sales (5-Year Annual Avg.)

Comp any

Indus try

S&P 500

-7.9 -67.2

-3.8 -25.2

13.2 19.1

-106.4

-78.9

6.8

22.45

13.73

13.4

Net Income (5-Yr Annual Avg.) Dividends (5-Yr Annual Avg.)

56.98

19.2

18.9 6

1.71

8.7

12.2

Comp any 13 NA NA 1.45 0.71 8.6

Indus try 7.8 0.8 0.2 2.54 1.26 10.3

S&P 500 14.2 11.1 2.4 1.39 2.62 8.7

Comp any NA 12.2 10.8

Indus try 0 2 3.4

S&P 500 38 15.4 10.9

NA

0

37

26.7

29.4

17

18.3

21

11.8

Debt/Equity Ratio Current Ratio Quick Ratio Interest Coverage Leverage Ratio

Comp any 4.89 NA NA NA 15.4

Indus try 4.39 NA NA 0 19.4

Book Value/Share

39.13

25.92

S&P 500 1.17 1.2 1 58.9 3.8 20.7 8

Price Ratios Price Ratios Current P/E Ratio P/E Ratio 5-Year High P/E Ratio 5-Year Low Price/Sales Ratio Price/Book Value Price/Cash Flow Ratio

Profit Margins Profit Margins % Gross Margin Pre-Tax Margin Net Profit Margin 5Yr Gross Margin (5-Yr Avg.) 5Yr PreTax Margin (5-Yr Avg.) 5Yr Net Profit Margin (5Yr Avg.)

Financial Position Financial Position

Returns Ratio Investment Returns % Return On Equity Return On Assets Return On Capital Return On Equity (5Year Avg.) Return On Assets (5Year Avg.) Return On Capital (5Year Avg.)

Comp any 5.5 0.4 NA

Indus try 4 0.4 0

S&P 500 22 9.1 12.4

10.6

15.7

21

0.9

1

8

NA

0

10.7

Comp any

Indus try

86554 40205 1 NA NA NA

58180 29196 5 0 NA 0

S&P 500 1289 83

Management Efficiency Management Efficiency Income/Employee Revenue/Employee Receivable Turnover Inventory Turnover Asset Turnover

1 Mil 14.4 10.8 1

Overview of the company P/E

EPS Growth

Sales Growth

Current FY Estimate Trailing 12 Months PEG Ratio

15.8 11.7 2.11

Price Ratios Price/Book Price/Cash Flow Price/Sales

06/30/08 03/31/08

09/30/08

1.01 1.02 1.04

09/30/08

06/30/08 03/31/08

12.2 22.4 27.4

09/30/08

-

09/30/08

06/30/08 03/31/08

06/30/08 03/31/08

06/30/08 03/31/08

06/30/08 03/31/08

09/30/08

1.01 1.02 1.04

09/30/08

12.22 22.42 27.43

09/30/08

2.95 2.22 1.74

09/30/08

06/30/08 03/31/08

03/31/08

0.44 0.67 0.84

Operating Margin 06/30/08 03/31/08

11.9 15.7 18.7

Book Value 06/30/08 03/31/08

Debt-to-Equity 06/30/08

8.53 19.9

ROA

6.26 8.73 10.61

Pre-Tax Margin

Inventory Turnover 09/30/08

-79

vs. Previous Year vs. Previous Quarter

Quick Ratio

Net Margin 09/30/08

-87.6

ROE

0.65 4.57 1.45

Current Ratio 09/30/08

vs. Previous Year vs. Previous Quarter

40.1 37.1 37

Debt-to-Capital 06/30/08 03/31/08

74.4 69.3 65.1

REVENUE ANALYSIS The company recorded revenues of $71,372 million during the fiscal year ended December 2007, an increase of 15.1% over 2006. The US, JPMC's largest geographical market, accounted for 73% of the total revenues in the fiscal year 2007. JPMC generates revenues through seven business divisions: investment bank (25.5% of the total

revenues during the fiscal year 2007), retail financial services (24.5%), card services (21.3%), asset management (12.1%), treasury and securities (9.7%), corporate (5.9%) and commercial banking (5.7%). Revenues by Division During the fiscal year 2007, the investment bank division recorded revenues of $18,170 million, a decrease of 3.5% over 2006. The retail financial services division recorded revenues of $17,479 million in the fiscal year 2007, an increase of 17.9% over 2006. The card services division recorded revenues of $15,235 million in the fiscal year 2007, an increase of 3.3% over 2006. The asset management division recorded revenues of $8,635 million in the fiscal year 2007, an increase of 27.2% over 2006. The treasury and security services division recorded revenues of $6,945 million in the fiscal year 2007, an increase of 13.7% over 2006. The corporate division recorded revenues of $4,245 million in the fiscal year 2007, as compared to $14 million in 2006. The commercial banking division recorded revenues of $4,103 million in the fiscal year 2007, an increase of 8% over 2006. Revenues by Geography The US, JP Morgan's largest geographical market, accounted for 73% of the total revenues in the fiscal year 2007. Revenues from the US reached $52,137 million in 2007, an increase of 14.1% over 2006.

Key Employees KEY EMPLOYEE BIOGRAPHIES

James Dimon Board: Executive Board Job Title: Chairman and Chief Executive Officer Since: 2006 Age: 52 Mr. Dimon has been Chairman and Chief Executive Officer of JP Morgan since 2006. Prior to joining JP Morgan he was with Bank where he was Chairman and Chief Executive Officer since 2000. Prior to Bank One, he had held various senior executive positions at Citigroup, its subsidiary, Salomon Smith Barney, and its predecessor company, Travelers Group. Mr. Dimon is a Director of The College Fund/UNCF and serves on the Board of Directors of The Federal Reserve Bank of New York.

James S. Crown Board: Non Executive Board Job Title: Director Since: 1991 Age: 54 Mr. Crown has been a Director since 1991. He joined Henry Crown and Company (diversified investments) in 1985 as Vice President and became President in 2003. He earned a B.A. in 1976 from Hampshire College and received his law degree in 1980 from Stanford University Law School. Mr. Crown is also a director of General Dynamics Corporation and Sara Lee Corporation. He is Chairman of the Board of Trustees for the University of Chicago and a trustee of the Museum of Science and Industry and the Orchestral Association.

William H. Gray, III Board: Non Executive Board Job Title: Director Since: 1992 Age: 66 Mr. Gray has been a Director since 1992. He is also Chairman of Amani Group (consulting and advisory). Mr. Gray was President and Chief Executive Officer of The College Fund/UNCF (educational assistance) from 1991 until he retired in 2004. He was a member of the United States House of Representatives from 1979 to 1991. Mr. Gray earned a B.A. degree from Franklin & Marshall College and received a master’s degree in divinity from Drew Theological Seminary and a master’s degreein church history from Princeton Theological Seminary. Mr. Gray is also a Director of Dell Computer Corporation, Pfizer, Prudential Financial, and Visteon Corporation.

Lee R. Raymond Board: Non Executive Board Job Title: Director Since: 1987 Age: 69 Mr. Raymond has been a Director since 1987. He was Chairman of the Board and Chief Executive Officer of Exxon Mobil Corporation (oil and gas) from 1999 until he retired in 2005. He had been

Chairman of the Board and Chief Executive Officer of Exxon Corporation from 1993 until its merger with Mobil Oil Corporation in 1999; having begun his career in 1963 with Exxon. Mr. Raymond is Chairman of the National Petroleum Council, Vice Chairman of the Board of Trustees of the American Enterprise Institute, a trustee of the Wisconsin Alumni Research Foundation, a member of the President’s Export Council, and a member of the Innovations in Medicine Leadership Council of UT Southwestern Medical Center.

Crandall C. Bowles Board: Non Executive Board Job Title: Director Since: 2006 Age: 60 Ms. Bowles has been a Director since 2006. She has been Co-Chairman and Co-Chief Executive Officer of Springs Global US and Springs Global Participacoes, an international manufacturer and marketer of textile home furnishings, and Chairman of Springs Industries, a home furnishings company since early 2006. Prior to a business spin-off and merger in early 2006, she was Chairman and Chief Executive Officer of Springs Industries, from 1998 until 2006, and has been a member of its board since 1978. Ms. Bowles is also a member of the board of directors of Deere & Company.

Laban P. Jackson, Jr. Board: Non Executive Board Job Title: Director Since: 1993 Age: 65 Mr. Jackson has been a Director since 1993. He is also Chairman of Clear Creek Properties, (real estate development). Mr. Jackson is a graduate of the United States Military Academy. He is also a director of The Home Depot, and SIRVA. He is a Director of Markey Cancer Foundation and Governor’s Scholars Program.

William C.Weldon Board: Non Executive Board Job Title: Director Since: 2005 Age: 59 Mr.Weldon has been a Director since 2005 .Prior to becoming Chairman and Chief Executive Officer of Johnson & Johnson (health care products) in 2002, Mr.Weldon served as Vice Chairman from 2001 and Worldwide Chairman, Pharmaceuticals Group from 1998 until 2001. He previously served as Chairman of the Pharmaceutical Research and Manufacturers of America (PhRMA).

Stephen B. Burke Board: Non Executive Board Job Title: Director Since: 2003

Age: 49 Mr. Burke has been a Director since 2003. He joined Comcast Cable Communications (cable television) as President in 1998. Prior to 1998, he was with The Walt Disney Company from 1986. Mr. Burke is a graduate of Colgate University and received an MBA from Harvard Business School. He is Vice Chairman of The Children’s Hospital of Philadelphia.

Ellen V. Futter Board: Non Executive Board Job Title: Director Since: 1997 Age: 58 Ms. Futter has been the Director since 1997. Prior to joining JP Morgan she became President of the American Museum of Natural History in 1993, prior to which she had been President of Barnard College since 1981. Ms. Futter is also a Director of American International Group, Consolidated Edison, and Viacom. She is a member of the Board of Overseers and Managers of Memorial Sloan-Kettering Cancer Center, a Fellow of the American Academy of Arts and Sciences and a member of the Council on Foreign Relations.

David C. Novak Board: Non Executive Board Job Title: Director Since: 2001 Age: 55 Mr. Novack has been a Director since 2001.Prior to joining JP Morgan he was the Chairman and Chief Executive Officer of Yum! Brands, (franchised restaurants). Mr. Novak was Vice Chairman and President of Tricon Global Restaurants, Inc. (now known as Yum! Brands,) from 1997 until 2000; Group President and Chief Executive Officer, KFC and Pizza Hut, North America, subsidiaries of PepsiCo, from 1996 until 1997; and President, KFC North America, a subsidiary of PepsiCo, from 1994 until 1996.

David M. Cote Board: Non Executive Board Job Title: Director Since: 2007 Mr. Cote has been a Director of JPMC since 2007. He has been Chairman and Chief Executive Officer of Honeywell International since July 2002. He joined Honeywell as President and Chief Executive Officer in February 2002. Prior to joining Honeywell, he was Chairman, President and Chief Executive Officer of TRW. Mr. Cote is a graduate of the University of New Hampshire, where he earned a bachelor's degree in business administration. He received an honorary Juris Doctor degree from Pepperdine University in 2001

Michael J. Cavanagh Board: Senior Management Job Title: Chief Financial Officer Since: 2004 Age: 41 Mr. Cavanagh has been Chief Financial Officer of JPMC since 2004 prior to that he had been Head

of Middle Market Banking. Prior to the Merger, he had been Chief Administrative Officer of Commercial Banking and Chief Operating Officer of Middle Market Banking from 2003, and Treasurer from 2001 until 2003 at Bank One Corporation.

Steven D. Black Board: Senior Management Job Title: Co-Chief Executive Officer of the Investment Bank Since: 2004 Age: 55 Mr. Black has been Co-Chief Executive Officer of the Investment Bank since 2004, prior to which he had been Deputy Head of the Investment Bank.

William T. Winters Board: Senior Management Job Title: Co-Chief Executive Officer of the Investment Bank Since: 2004 Age: 46 Mr. Winters has been Co-Chief Executive Officer of the Investment Bank since 2004, prior to which he had been Deputy Head of the Investment Bank and Head of Credit & Rate Markets.

James E. Staley Board: Senior Management Job Title: Chief Executive Officer of Asset Management Since: 2006 Age: 51 Mr. Staley has been Chief Executive Officer of Asset Management of JPMC since 2006.

Conclusions At this price this share is good as a hold share at least for the time period of 2-3 months. Future prospects do not seem very bright but still its performance is not as bad as its competitors or the current market situation. Also near term outlook is satisfactory but long term outlook is very good. Financial performance of the company is satisfactory Management efficiency is satisfactory. Solvency situation is satisfactory as current ratio and quick ratio is close to unity. Though the Debt-equity ratio is close to 3 but it is satisfactory.