JPMORGAN CHASE & CO - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - FORM 8-K - JPMORGAN CHASE & CO	y93007e8vk.htm
EX-12.2 - EX-12.2 - JPMORGAN CHASE & CO	y93007exv12w2.htm
EX-12.1 - EX-12.1 - JPMORGAN CHASE & CO	y93007exv12w1.htm
EX-99.1 - EX-99.1 - JPMORGAN CHASE & CO	y93007exv99w1.htm

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2011


JPMORGAN CHASE & CO. TABLE OF CONTENTS


		Page(s)
Consolidated Results
Consolidated Financial Highlights		2-3
Statements of Income		4
Consolidated Balance Sheets		5
Condensed Average Balance Sheets and Annualized Yields		6
Reconciliation from Reported to Managed Summary		7

Business Detail
Line of Business Financial Highlights — Managed Basis		8
Investment Bank		9-12
Retail Financial Services		13-19
Card Services & Auto		20-22
Commercial Banking		23-24
Treasury & Securities Services		25-26
Asset Management		27-31
Corporate/Private Equity		32-33

Credit-Related Information		34-39

Market Risk-Related Information		40

Supplemental Detail
Capital and Other Selected Balance Sheet Items		41
Mortgage Loan Repurchase Liability		42
Per Share-Related Information		43

Non-GAAP Financial Measures		44

Glossary of Terms		45-48

Memo: Business Segment Reorganization Summary		49

Page 1


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue	$	23,763		$	26,779		$	25,221		$	26,098		$	23,824			(11	)%		—	%	$	75,763		$	76,596			(1)	%
Total noninterest expense		15,534			16,842			15,995			16,043			14,398			(8	)		8			48,371			45,153			7
Pre-provision profit		8,229			9,937			9,226			10,055			9,426			(17	)		(13	)		27,392			31,443			(13	)
Provision for credit losses		2,411			1,810			1,169			3,043			3,223			33			(25	)		5,390			13,596			(60	)
NET INCOME		4,262			5,431			5,555			4,831			4,418			(22	)		(4	)		15,248			12,539			22

Managed Basis (a)
Total net revenue		24,368			27,410			25,791			26,722			24,335			(11	)		—			77,569			78,120			(1	)
Total noninterest expense		15,534			16,842			15,995			16,043			14,398			(8	)		8			48,371			45,153			7
Pre-provision profit		8,834			10,568			9,796			10,679			9,937			(16	)		(11	)		29,198			32,967			(11	)
Provision for credit losses		2,411			1,810			1,169			3,043			3,223			33			(25	)		5,390			13,596			(60	)
NET INCOME		4,262			5,431			5,555			4,831			4,418			(22	)		(4	)		15,248			12,539			22

PER COMMON SHARE DATA
Basic earnings		1.02			1.28			1.29			1.13			1.02			(20	)		—			3.60			2.86			26
Diluted earnings		1.02			1.27			1.28			1.12			1.01			(20	)		1			3.57			2.84			26

Cash dividends declared (b)		0.25			0.25			0.25			0.05			0.05			—			400			0.75			0.15			400
Book value		45.93			44.77			43.34			43.04			42.29			3			9			45.93			42.29			9

Closing share price (c)		30.12			40.94			46.10			42.42			38.06			(26	)		(21	)		30.12			38.06			(21	)
Market capitalization		114,422			160,083			183,783			165,875			149,418			(29	)		(23	)		114,422			149,418			(23	)

COMMON SHARES OUTSTANDING
Average: Basic		3,859.6			3,958.4			3,981.6			3,917.0			3,954.3			(2	)		(2	)		3,933.2			3,969.4			(1	)
Diluted		3,872.2			3,983.2			4,014.1			3,935.2			3,971.9			(3	)		(3	)		3,956.5			3,990.7			(1	)
Common shares at period-end		3,798.9			3,910.2			3,986.6			3,910.3			3,925.8			(3	)		(3	)		3,798.9			3,925.8			(3	)

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)		9	%		12	%		13	%		11	%		10	%								11	%		10	%
Return on tangible common equity (“ROTCE”) (e)		13			17			18			16			15									16			15
Return on assets (“ROA”)		0.76			0.99			1.07			0.92			0.86									0.94			0.82

CAPITAL RATIOS
Tier 1 capital ratio		12.1	(g)		12.4			12.3			12.1			11.9
Total capital ratio		15.3	(g)		15.7			15.6			15.5			15.4
Tier 1 common capital ratio (f)		9.9	(g)		10.1			10.0			9.8			9.5


(a)		For further discussion of managed basis, see Reconciliation from Reported to Managed Summary on page 7.

(b)		On March 18, 2011, the Board of Directors increased the Firm’s quarterly common stock dividend from $0.05 to $0.25 per share.

(c)		Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.

(d)		Ratios are based upon annualized amounts.

(e)		ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of tangible common equity. In management’s view, this measure is meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity and in facilitating comparisons with competitors. For further discussion, see page 44.

(f)		Tier 1 common capital ratio is Tier 1 common capital divided by risk-weighted assets. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. For further discussion of Tier 1 common capital ratio, see page 44.

(g)		Estimated.

Page 2


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
SELECTED BALANCE SHEET DATA (Period-end)
Total assets	$	2,289,240		$	2,246,764		$	2,198,161		$	2,117,605		$	2,141,595			2	%		7	%	$	2,289,240		$	2,141,595			7	%
Wholesale loans		259,483			248,823			236,007			227,633			220,597			4			18			259,483			220,597			18
Consumer, excluding credit card loans		310,235			315,390			321,186			327,618			333,498			(2	)		(7	)		310,235			333,498			(7	)
Credit card loans		127,135			125,523			128,803			137,676			136,436			1			(7	)		127,135			136,436			(7	)
Deposits		1,092,708			1,048,685			995,829			930,369			903,138			4			21			1,092,708			903,138			21
Common stockholders’ equity		174,487			175,079			172,798			168,306			166,030			—			5			174,487			166,030			5
Total stockholders’ equity		182,287			182,879			180,598			176,106			173,830			—			5			182,287			173,830			5

Deposits-to-loans ratio		157	%		152	%		145	%		134	%		131	%								157	%		131	%

Headcount		256,663			250,095			242,929			239,831			236,810			3			8			256,663			236,810			8

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	1,636		$	2,057		$	2,370		$	1,501		$	1,286			(20	)		27		$	6,063		$	5,138			18
Retail Financial Services		1,161			383			(399	)		459			716			203			62			1,145			1,269			(10	)
Card Services & Auto		849			1,110			1,534			1,548			926			(24	)		(8	)		3,493			1,324			164
Commercial Banking		571			607			546			530			471			(6	)		21			1,724			1,554			11
Treasury & Securities Services		305			333			316			257			251			(8	)		22			954			822			16
Asset Management		385			439			466			507			420			(12	)		(8	)		1,290			1,203			7
Corporate/Private Equity		(645	)		502			722			29			348		NM			NM				579			1,229			(53	)

NET INCOME	$	4,262		$	5,431		$	5,555		$	4,831		$	4,418			(22	)		(4	)	$	15,248		$	12,539			22

Page 3


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
REVENUE
Investment banking fees	$	1,052		$	1,933		$	1,793		$	1,832		$	1,476			(46)	%		(29	)%	$	4,778		$	4,358			10	%
Principal transactions		1,370			3,140			4,745			1,915			2,341			(56	)		(41	)		9,255			8,979			3
Lending- and deposit-related fees		1,643			1,649			1,546			1,545			1,563			—			5			4,838			4,795			1
Asset management, administration and commissions		3,448			3,703			3,606			3,697			3,188			(7	)		8			10,757			9,802			10
Securities gains		607			837			102			1,253			102			(27	)		495			1,546			1,712			(10	)
Mortgage fees and related income		1,380			1,103			(487	)		1,617			707			25			95			1,996			2,253			(11	)
Credit card income		1,666			1,696			1,437			1,558			1,477			(2	)		13			4,799			4,333			11
Other income		780			882			574			579			468			(12	)		67			2,236			1,465			53

Noninterest revenue		11,946			14,943			13,316			13,996			11,322			(20	)		6			40,205			37,697			7
Interest income		15,160			15,632			15,447			15,612			15,606			(3	)		(3	)		46,239			48,170			(4	)
Interest expense		3,343			3,796			3,542			3,510			3,104			(12	)		8			10,681			9,271			15

Net interest income		11,817			11,836			11,905			12,102			12,502			—			(5	)		35,558			38,899			(9	)

TOTAL NET REVENUE		23,763			26,779			25,221			26,098			23,824			(11	)		—			75,763			76,596			(1	)
Provision for credit losses		2,411			1,810			1,169			3,043			3,223			33			(25	)		5,390			13,596			(60	)
NONINTEREST EXPENSE
Compensation expense		6,908			7,569			8,263			6,571			6,661			(9	)		4			22,740			21,553			6
Occupancy expense		935			935			978			1,045			884			—			6			2,848			2,636			8
Technology, communications and equipment expense		1,248			1,217			1,200			1,198			1,184			3			5			3,665			3,486			5
Professional and outside services		1,860			1,866			1,735			1,789			1,718			—			8			5,461			4,978			10
Marketing		926			744			659			584			651			24			42			2,329			1,862			25
Other expense		3,445			4,299			2,943			4,616			3,082			(20	)		12			10,687			9,942			7
Amortization of intangibles		212			212			217			240			218			—			(3	)		641			696			(8	)

TOTAL NONINTEREST EXPENSE		15,534			16,842			15,995			16,043			14,398			(8	)		8			48,371			45,153			7

Income before income tax expense		5,818			8,127			8,057			7,012			6,203			(28	)		(6	)		22,002			17,847			23
Income tax expense		1,556			2,696			2,502			2,181			1,785			(42	)		(13	)		6,754			5,308			27

NET INCOME	$	4,262		$	5,431		$	5,555		$	4,831		$	4,418			(22	)		(4	)	$	15,248		$	12,539			22


PER COMMON SHARE DATA
Basic earnings	$	1.02		$	1.28		$	1.29		$	1.13		$	1.02			(20	)		—		$	3.60		$	2.86			26
Diluted earnings		1.02			1.27			1.28			1.12			1.01			(20	)		1			3.57			2.84			26

FINANCIAL RATIOS
Return on equity (a)		9	%		12	%		13	%		11	%		10	%								11	%		10	%
Return on tangible common equity (a)(b)		13			17			18			16			15									16			15
Return on assets (a)		0.76			0.99			1.07			0.92			0.86									0.94			0.82
Effective income tax rate		27	(c)		33			31			31			29									31			30
Overhead ratio		65			63			63			61			60									64			59


(a)		Ratios are based upon annualized amounts.

(b)		ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of tangible common equity. In management’s view, this measure is meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity and in facilitating comparisons with competitors. For further discussion, see page 44.

(c)		The decrease in the effective tax rate in the third quarter of 2011 was primarily the result of lower reported pretax book income, as well as changes in the proportion of income subject to U.S. federal and state and local taxes.

Page 4


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


																September 30, 2011
																Change
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30
	2011			2011			2011			2010			2010			2011			2010
ASSETS
Cash and due from banks	$	56,766		$	30,466		$	23,469		$	27,567		$	23,960			86	%		137	%
Deposits with banks		128,877			169,880			80,842			21,673			31,077			(24	)		315
Federal funds sold and securities purchased under resale agreements		248,042			213,362			217,356			222,554			235,390			16			5
Securities borrowed		131,561			121,493			119,000			123,587			127,365			8			3
Trading assets:
Debt and equity instruments		352,678			381,339			422,404			409,411			378,222			(8	)		(7	)
Derivative receivables		108,853			77,383			78,744			80,481			97,293			41			12
Securities		339,349			324,741			334,800			316,336			340,168			4			—
Loans		696,853			689,736			685,996			692,927			690,531			1			1
Less: Allowance for loan losses		28,350			28,520			29,750			32,266			34,161			(1	)		(17	)

Loans, net of allowance for loan losses		668,503			661,216			656,246			660,661			656,370			1			2
Accrued interest and accounts receivable		72,080			80,292			79,236			70,147			63,224			(10	)		14
Premises and equipment		13,812			13,679			13,422			13,355			11,316			1			22
Goodwill		48,180			48,882			48,856			48,854			48,736			(1	)		(1	)
Mortgage servicing rights		7,833			12,243			13,093			13,649			10,305			(36	)		(24	)
Other intangible assets		3,396			3,679			3,857			4,039			3,982			(8	)		(15	)
Other assets		109,310			108,109			106,836			105,291			114,187			1			(4	)

TOTAL ASSETS	$	2,289,240		$	2,246,764		$	2,198,161		$	2,117,605		$	2,141,595			2			7


LIABILITIES
Deposits	$	1,092,708		$	1,048,685		$	995,829		$	930,369		$	903,138			4			21
Federal funds purchased and securities loaned or sold under repurchase agreements		238,585			254,124			285,444			276,644			314,161			(6	)		(24	)
Commercial paper		51,073			51,160			46,022			35,363			38,611			—			32
Other borrowed funds (a)		29,318			30,208			36,704			34,325			35,736			(3	)		(18	)
Trading liabilities:
Debt and equity instruments		76,592			84,865			80,031			76,947			82,919			(10	)		(8	)
Derivative payables		79,249			63,668			61,362			69,219			74,902			24			6
Accounts payable and other liabilities		199,769			184,490			171,638			170,330			169,365			8			18
Beneficial interests issued by consolidated VIEs		65,971			67,457			70,917			77,649			77,438			(2	)		(15	)
Long-term debt (a)		273,688			279,228			269,616			270,653			271,495			(2	)		1

TOTAL LIABILITIES		2,106,953			2,063,885			2,017,563			1,941,499			1,967,765			2			7

STOCKHOLDERS’ EQUITY
Preferred stock		7,800			7,800			7,800			7,800			7,800			—			—
Common stock		4,105			4,105			4,105			4,105			4,105			—			—
Capital surplus		95,078			95,061			94,660			97,415			96,938			—			(2	)
Retained earnings		85,726			82,612			78,342			73,998			69,531			4			23
Accumulated other comprehensive income		1,964			1,638			712			1,001			3,096			20			(37	)
Shares held in RSU Trust, at cost		(53	)		(53	)		(53	)		(53	)		(68	)		—			22
Treasury stock, at cost		(12,333	)		(8,284	)		(4,968	)		(8,160	)		(7,572	)		(49	)		(63	)

TOTAL STOCKHOLDERS’ EQUITY		182,287			182,879			180,598			176,106			173,830			—			5

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,289,240		$	2,246,764		$	2,198,161		$	2,117,605		$	2,141,595			2			7


(a)		Effective January 1, 2011, the long-term portion of advances from Federal Home Loan Banks (“FHLBs”) was reclassified from other borrowed funds to long-term debt. Prior periods have been revised to conform with the current presentation.

Page 5


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
AVERAGE BALANCES	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
ASSETS
Deposits with banks	$	116,062		$	75,801		$	37,155		$	29,213		$	38,747			53	%		200	%	$	76,628		$	53,811			42	%
Federal funds sold and securities purchased under resale agreements		211,884			202,036			202,481			201,489			192,099			5			10			205,501			183,983			12
Securities borrowed		131,615			124,806			114,589			119,973			121,302			5			9			123,732			116,554			6
Trading assets — debt instruments		257,950			285,104			275,512			273,929			251,790			(10	)		2			272,791			248,484			10
Securities		331,330			342,248			318,936			328,126			327,798			(3	)		1			330,884			330,853			—
Loans		692,794			686,111			688,133			690,529			693,791			1			—			689,030			707,924			(3	)
Other assets (a)		42,760			48,716			49,887			42,583			36,912			(12	)		16			47,095			33,108			42

Total interest-earning assets		1,784,395			1,764,822			1,686,693			1,685,842			1,662,439			1			7			1,745,661			1,674,717			4
Trading assets — equity instruments		119,890			137,611			141,951			122,827			96,200			(13	)		25			133,070			91,697			45
Trading assets — derivative receivables		96,612			82,860			85,437			87,569			92,857			17			4			88,344			83,702			6
All other noninterest-earning assets		229,650			207,250			190,371			192,906			189,617			11			21			209,234			191,040			10

TOTAL ASSETS	$	2,230,547		$	2,192,543		$	2,104,452		$	2,089,144		$	2,041,113			2			9		$	2,176,309		$	2,041,156			7

LIABILITIES
Interest-bearing deposits	$	740,901		$	732,766		$	700,921		$	669,346		$	659,027			1			12		$	725,009		$	668,403			8
Federal funds purchased and securities loaned or sold under repurchase agreements		235,438			281,843			278,250			287,493			281,171			(16	)		(16	)		265,020			275,607			(4	)
Commercial paper		47,027			41,682			36,838			34,507			34,523			13			36			41,886			36,503			15
Trading liabilities — debt, short-term and other liabilities (b)(c)		215,064			212,878			193,814			196,840			188,010			1			14			207,330			182,424			14
Beneficial interests issued by consolidated VIEs		66,545			69,399			72,932			78,114			83,928			(4	)		(21	)		69,602			90,654			(23	)
Long-term debt (c)		279,235			273,934			269,156			273,066			267,556			2			4			274,145			273,077			—

Total interest-bearing liabilities		1,584,210			1,612,502			1,551,911			1,539,366			1,514,215			(2	)		5			1,582,992			1,526,668			4
Noninterest-bearing deposits		297,610			247,137			229,461			225,966			213,700			20			39			258,319			207,846			24
Trading liabilities — equity instruments		1,948			3,289			7,872			7,166			6,560			(41	)		(70	)		4,348			5,838			(26	)
Trading liabilities — derivative payables		75,828			66,009			71,288			71,727			69,350			15			9			71,058			63,688			12
All other noninterest-bearing liabilities		88,697			81,729			66,705			70,307			65,335			9			36			79,125			69,281			14

TOTAL LIABILITIES		2,048,293			2,010,666			1,927,237			1,914,532			1,869,160			2			10			1,995,842			1,873,321			7

Preferred stock		7,800			7,800			7,800			7,800			7,991			—			(2	)		7,800			8,098			(4	)
Common stockholders’ equity		174,454			174,077			169,415			166,812			163,962			—			6			172,667			159,737			8

TOTAL STOCKHOLDERS’ EQUITY		182,254			181,877			177,215			174,612			171,953			—			6			180,467			167,835			8

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	2,230,547		$	2,192,543		$	2,104,452		$	2,089,144		$	2,041,113			2			9		$	2,176,309		$	2,041,156			7


AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks		0.63	%		0.76	%		1.11	%		1.02	%		0.85	%								0.75	%		0.67	%
Federal funds sold and securities purchased under resale agreements		1.28			1.20			1.09			1.05			0.92									1.19			0.91
Securities borrowed		0.05			0.10			0.17			0.16			0.22									0.10			0.15
Trading assets — debt instruments		4.32			4.23			4.31			4.29			4.37									4.28			4.39
Securities		2.66			3.10			2.89			2.44			2.67									2.88			3.12
Loans		5.28			5.36			5.62			5.71			5.71									5.42			5.77
Other assets (a)		1.47			1.30			1.20			1.54			1.57									1.32			1.52
Total interest-earning assets		3.40			3.58			3.74			3.70			3.75									3.57			3.87

INTEREST — BEARING LIABILITIES
Interest-bearing deposits		0.53			0.61			0.53			0.50			0.51									0.56			0.51
Federal funds purchased and securities loaned or sold under repurchase agreements		0.18			0.29			0.17			0.12			(0.28	) (d)								0.22			(0.14	)(d)
Commercial paper		0.16			0.19			0.21			0.21			0.20									0.19			0.19
Trading liabilities — debt, short-term and other liabilities (b)(c)		1.05			1.26			1.43			1.57			1.27									1.24			1.25
Beneficial interests issued by consolidated VIEs		1.05			1.17			1.19			1.13			1.36									1.14			1.36
Long-term debt (c)		2.10			2.31			2.39			2.25			2.30									2.27			2.10
Total interest-bearing liabilities		0.84			0.94			0.93			0.90			0.81									0.90			0.81

INTEREST RATE SPREAD		2.56	%		2.64	%		2.81	%		2.80	%		2.94	%								2.67	%		3.06	%
NET YIELD ON INTEREST — EARNING ASSETS		2.66	%		2.72	%		2.89	%		2.88	%		3.01	%								2.75	%		3.13	%


(a)		Includes margin loans.

(b)		Includes brokerage customer payables.

(c)		Effective January 1, 2011, the long-term portion of the advances from FHLBs was reclassified from other borrowed funds, which is included in short-term and other liabilities, to long-term debt. Prior periods have been revised to conform with the current presentation.

(d)		Reflects a benefit from the favorable market environments for dollar-roll financings.

Page 6


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 U.S. (“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 the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 44.

The following summary table provides a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.


	QUARTERLY TRENDS																NINE MONTHS ENDED SEPTEMBER 30,
											3Q11 Change										2011 Change
	3Q11		2Q11		1Q11		4Q10		3Q10		2Q11			3Q10			2011		2010		2010
OTHER INCOME
Other income — reported	$	780	$	882	$	574	$	579	$	468		(12	)%		67	%	$	2,236	$	1,465		53	%
Fully tax-equivalent adjustments		472		510		451		503		415		(7	)		14			1,433		1,242		15

Other income — managed	$	1,252	$	1,392	$	1,025	$	1,082	$	883		(10	)		42		$	3,669	$	2,707		36


TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	11,946	$	14,943	$	13,316	$	13,996	$	11,322		(20	)		6		$	40,205	$	37,697		7
Fully tax-equivalent adjustments		472		510		451		503		415		(7	)		14			1,433		1,242		15

Total noninterest revenue — managed	$	12,418	$	15,453	$	13,767	$	14,499	$	11,737		(20	)		6		$	41,638	$	38,939		7


NET INTEREST INCOME
Net interest income — reported	$	11,817	$	11,836	$	11,905	$	12,102	$	12,502		—			(5	)	$	35,558	$	38,899		(9	)
Fully tax-equivalent adjustments		133		121		119		121		96		10			39			373		282		32

Net interest income — managed	$	11,950	$	11,957	$	12,024	$	12,223	$	12,598		—			(5	)	$	35,931	$	39,181		(8	)


TOTAL NET REVENUE
Total net revenue — reported	$	23,763	$	26,779	$	25,221	$	26,098	$	23,824		(11	)		—		$	75,763	$	76,596		(1	)
Fully tax-equivalent adjustments		605		631		570		624		511		(4	)		18			1,806		1,524		19

Total net revenue — managed	$	24,368	$	27,410	$	25,791	$	26,722	$	24,335		(11	)		—		$	77,569	$	78,120		(1	)


PRE-PROVISION PROFIT
Total pre-provision profit — reported	$	8,229	$	9,937	$	9,226	$	10,055	$	9,426		(17	)		(13	)	$	27,392	$	31,443		(13	)
Fully tax-equivalent adjustments		605		631		570		624		511		(4	)		18			1,806		1,524		19

Total pre-provision profit — managed	$	8,834	$	10,568	$	9,796	$	10,679	$	9,937		(16	)		(11	)	$	29,198	$	32,967		(11	)


INCOME TAX EXPENSE
Income tax expense — reported	$	1,556	$	2,696	$	2,502	$	2,181	$	1,785		(42	)		(13	)	$	6,754	$	5,308		27
Fully tax-equivalent adjustments		605		631		570		624		511		(4	)		18			1,806		1,524		19

Income tax expense — managed	$	2,161	$	3,327	$	3,072	$	2,805	$	2,296		(35	)		(6	)	$	8,560	$	6,832		25

Page 7


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
TOTAL NET REVENUE (FTE)
Investment Bank (b)	$	6,369		$	7,314		$	8,233		$	6,213		$	5,353			(13)	%		19	%	$	21,916		$	20,004			10	%
Retail Financial Services		7,535			7,142			5,466			7,699			6,814			6			11			20,143			20,748			(3	)
Card Services & Auto		4,775			4,761			4,791			5,072			5,085			—			(6	)		14,327			15,400			(7	)
Commercial Banking		1,588			1,627			1,516			1,611			1,527			(2	)		4			4,731			4,429			7
Treasury & Securities Services		1,908			1,932			1,840			1,913			1,831			(1	)		4			5,680			5,468			4
Asset Management		2,316			2,537			2,406			2,613			2,172			(9	)		7			7,259			6,371			14
Corporate/Private Equity (b)		(123	)		2,097			1,539			1,601			1,553		NM			NM				3,513			5,700			(38	)

TOTAL NET REVENUE	$	24,368		$	27,410		$	25,791		$	26,722		$	24,335			(11	)		—		$	77,569		$	78,120			(1	)


TOTAL PRE-PROVISION PROFIT
Investment Bank (b)	$	2,570		$	2,982		$	3,217		$	2,012		$	1,649			(14	)		56		$	8,769		$	6,940			26
Retail Financial Services		2,970			1,871			566			3,228			2,644			59			12			5,407			8,736			(38	)
Card Services & Auto		2,660			2,773			2,874			3,205			3,293			(4	)		(19	)		8,307			10,089			(18	)
Commercial Banking		1,015			1,064			953			1,053			967			(5	)		5			3,032			2,788			9
Treasury & Securities Services		438			479			463			443			421			(9	)		4			1,380			1,334			3
Asset Management		520			743			746			836			684			(30	)		(24	)		2,009			2,036			(1	)
Corporate/Private Equity (b)		(1,339	)		656			977			(98	)		279		NM			NM				294			1,044			(72	)

TOTAL PRE-PROVISION PROFIT	$	8,834		$	10,568		$	9,796		$	10,679		$	9,937			(16	)		(11	)	$	29,198		$	32,967			(11	)


NET INCOME/(LOSS)
Investment Bank	$	1,636		$	2,057		$	2,370		$	1,501		$	1,286			(20	)		27		$	6,063		$	5,138			18
Retail Financial Services		1,161			383			(399	)		459			716			203			62			1,145			1,269			(10	)
Card Services & Auto		849			1,110			1,534			1,548			926			(24	)		(8	)		3,493			1,324			164
Commercial Banking		571			607			546			530			471			(6	)		21			1,724			1,554			11
Treasury & Securities Services		305			333			316			257			251			(8	)		22			954			822			16
Asset Management		385			439			466			507			420			(12	)		(8	)		1,290			1,203			7
Corporate/Private Equity		(645	)		502			722			29			348		NM			NM				579			1,229			(53	)

TOTAL NET INCOME	$	4,262		$	5,431		$	5,555		$	4,831		$	4,418			(22	)		(4	)	$	15,248		$	12,539			22


AVERAGE EQUITY (c)
Investment Bank	$	40,000		$	40,000		$	40,000		$	40,000		$	40,000			—			—		$	40,000		$	40,000			—
Retail Financial Services		25,000			25,000			25,000			24,600			24,600			—			2			25,000			24,600			2
Card Services & Auto		16,000			16,000			16,000			18,400			18,400			—			(13	)		16,000			18,400			(13	)
Commercial Banking		8,000			8,000			8,000			8,000			8,000			—			—			8,000			8,000			—
Treasury & Securities Services		7,000			7,000			7,000			6,500			6,500			—			8			7,000			6,500			8
Asset Management		6,500			6,500			6,500			6,500			6,500			—			—			6,500			6,500			—
Corporate/Private Equity		71,954			71,577			66,915			62,812			59,962			1			20			70,167			55,737			26

TOTAL AVERAGE EQUITY	$	174,454		$	174,077		$	169,415		$	166,812		$	163,962			—			6		$	172,667		$	159,737			8


RETURN ON EQUITY (c)
Investment Bank		16	%		21	%		24	%		15	%		13	%								20	%		17	%
Retail Financial Services		18			6			(6	)		7			12									6			7
Card Services & Auto		21			28			39			33			20									29			10
Commercial Banking		28			30			28			26			23									29			26
Treasury & Securities Services		17			19			18			16			15									18			17
Asset Management		24			27			29			31			26									27			25
JPMORGAN CHASE		9			12			13			11			10									11			10


(a)		Commencing July 1, 2011, the Firm’s business segments have been reorganized as follows: (1) Auto and Student Lending transferred from the current Retail Financial Services (“RFS”) reportable/operating segment and is now reported with Card Services & Auto (“Card”) in a single reportable/operating segment, and (2) RFS continues as a reportable/operating segment, organized in two components: Consumer & Business Banking (formerly Retail Banking) and Mortgage Banking (including Mortgage Production and Servicing, and Real Estate Portfolios). All prior period disclosures have been revised to conform with the current period presentation. For further details on the reorganization, see page 49.

(b)		Corporate/Private Equity includes an adjustment to offset Investment Bank’s (“IB”) inclusion of a credit allocation income/(expense) to Treasury & Securities Services (“TSS”) in total net revenue; TSS reports the credit allocation as a separate line on its income statement (not within total net revenue).

(c)		Equity for a line of business represents the amount the Firm believes the business would require if it were operating independently, incorporating sufficient capital to address regulatory capital requirements (including Basel III Tier 1 common capital requirements), economic risk measures, and capital levels for similarly rated peers. Capital is also allocated to each line of business for, among other things, goodwill and other intangibles associated with acquisitions effected by the line of business. ROE is measured and internal targets for expected returns are established as key measures of a business segment’s performance. Effective January 1, 2011, capital allocated to Card was reduced by $2.4 billion, to $16.0 billion, largely reflecting portfolio runoff and the improving risk profile of the business; capital allocated to TSS was increased by $500 million, to $7.0 billion, reflecting growth in the underlying business. The Firm continues to assess the level of capital required for each line of business, as well as the assumptions and methodologies used to allocate capital to the business segments, and further refinements may be implemented in future periods.

Page 8


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,039		$	1,922		$	1,779		$	1,833		$	1,502			(46)	%		(31)	%	$	4,740		$	4,353			9	%
Principal transactions		2,253			2,309			3,398			1,289			1,129			(2	)		100			7,960			7,165			11
Lending- and deposit-related fees		210			218			214			209			205			(4	)		2			642			610			5
Asset management, administration and commissions		563			548			619			652			565			3			—			1,730			1,761			(2	)
All other income (a)		228			236			166			185			61			(3	)		274			630			196			221

Noninterest revenue		4,293			5,233			6,176			4,168			3,462			(18	)		24			15,702			14,085			11
Net interest income		2,076			2,081			2,057			2,045			1,891			—			10			6,214			5,919			5

TOTAL NET REVENUE (b)		6,369			7,314			8,233			6,213			5,353			(13	)		19			21,916			20,004			10

Provision for credit losses		54			(183	)		(429	)		(271	)		(142	)	NM			NM				(558	)		(929	)		40

NONINTEREST EXPENSE
Compensation expense		1,850			2,564			3,294			1,845			2,031			(28	)		(9	)		7,708			7,882			(2	)
Noncompensation expense		1,949			1,768			1,722			2,356			1,673			10			16			5,439			5,182			5

TOTAL NONINTEREST EXPENSE		3,799			4,332			5,016			4,201			3,704			(12	)		3			13,147			13,064			1


Income before income tax expense		2,516			3,165			3,646			2,283			1,791			(21	)		40			9,327			7,869			19
Income tax expense		880			1,108			1,276			782			505			(21	)		74			3,264			2,731			20

NET INCOME	$	1,636		$	2,057		$	2,370		$	1,501		$	1,286			(20	)		27		$	6,063		$	5,138			18


FINANCIAL RATIOS
ROE		16	%		21	%		24	%		15	%		13	%								20	%		17	%
ROA		0.81			0.98			1.18			0.75			0.68									0.99			0.97
Overhead ratio		60			59			61			68			69									60			65
Compensation expense as a percent of total net revenue		29			35			40			30			38									35			39	(f)

REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	365		$	601		$	429		$	424		$	385			(39	)		(5	)	$	1,395		$	1,045			33
Equity underwriting		178			455			379			489			333			(61	)		(47	)		1,012			1,100			(8	)
Debt underwriting		496			866			971			920			784			(43	)		(37	)		2,333			2,208			6

Total investment banking fees		1,039			1,922			1,779			1,833			1,502			(46	)		(31	)		4,740			4,353			9
Fixed income markets (c)		3,328			4,280			5,238			2,875			3,123			(22	)		7			12,846			12,150			6
Equity markets (d)		1,424			1,223			1,406			1,128			1,135			16			25			4,053			3,635			11
Credit portfolio (a)(e)		578			(111	)		(190	)		377			(407	)	NM			NM				277			(134	)	NM

Total net revenue	$	6,369		$	7,314		$	8,233		$	6,213		$	5,353			(13	)		19		$	21,916		$	20,004			10


(a)		IB manages traditional credit exposures related to Global Corporate Bank (“GCB”) on behalf of IB and TSS. Effective January 1, 2011, IB and TSS share the economics related to the Firm’s GCB clients. IB recognizes this sharing agreement within all other income. The prior-year periods reflected the reimbursement from TSS for a portion of the total costs of managing the credit portfolio on behalf of TSS.

(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 $440 million, $493 million, $438 million, $475 million and $390 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $1.4 billion and $1.2 billion for the nine months ended September 30, 2011 and 2010, respectively.

(c)		Fixed income markets primarily include revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets.

(d)		Equities markets primarily include revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and Prime Services.

(e)		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 IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

(f)		The compensation expense as a percentage of total net revenue ratio for the nine months ended September 30, 2010, excluding the payroll tax expense related to the U.K. Bank Payroll Tax on certain compensation awarded from December 9, 2009 to April 5, 2010 to relevant banking employees, which is a non-GAAP financial measure, was 37%. IB excludes this tax from the ratio because it enables comparability between periods.

Page 9


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
SELECTED BALANCE SHEET DATA (period-end)
Loans:
Loans retained (a)	$	58,163		$	56,107		$	52,712		$	53,145		$	51,299			4	%		13	%	$	58,163		$	51,299			13	%
Loans held-for-sale and loans at fair value		2,311			3,466			5,070			3,746			2,252			(33	)		3			2,311			2,252			3

Total loans		60,474			59,573			57,782			56,891			53,551			2			13			60,474			53,551			13
Equity		40,000			40,000			40,000			40,000			40,000			—			—			40,000			40,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	803,667		$	841,355		$	815,828		$	792,703		$	746,926			(4	)		8		$	820,239		$	711,277			15
Trading assets — debt and equity instruments		329,984			374,694			368,956			346,990			300,517			(12	)		10			357,735			293,605			22
Trading assets — derivative receivables		79,044			69,346			67,462			72,491			76,530			14			3			71,993			69,547			4
Loans:
Loans retained (a)		57,265			54,590			53,370			52,502			53,331			5			7			55,089			55,042			—
Loans held-for-sale and loans at fair value		2,431			4,154			3,835			3,504			2,678			(41	)		(9	)		3,468			3,118			11

Total loans		59,696			58,744			57,205			56,006			56,009			2			7			58,557			58,160			1
Adjusted assets (b)		597,513			628,475			611,038			587,307			539,459			(5	)		11			612,292			524,658			17
Equity		40,000			40,000			40,000			40,000			40,000			—			—			40,000			40,000			—

Headcount		26,615			27,716			26,494			26,314			26,373			(4	)		1			26,615			26,373			1

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(168	)	$	7		$	123		$	(23	)	$	33		NM			NM			$	(38	)	$	758		NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(c)		1,274			1,494			2,388			3,159			2,025			(15	)		(37	)		1,274			2,025			(37	)
Nonaccrual loans held-for-sale and loans at fair value		150			193			259			460			361			(22	)		(58	)		150			361			(58	)

Total nonaccrual loans		1,424			1,687			2,647			3,619			2,386			(16	)		(40	)		1,424			2,386			(40	)

Derivative receivables		7			18			21			34			255			(61	)		(97	)		7			255			(97	)
Assets acquired in loan satisfactions		77			83			73			117			148			(7	)		(48	)		77			148			(48	)

Total nonperforming assets		1,508			1,788			2,741			3,770			2,789			(16	)		(46	)		1,508			2,789			(46	)
Allowance for credit losses:
Allowance for loan losses		1,337			1,178			1,330			1,863			1,976			13			(32	)		1,337			1,976			(32	)
Allowance for lending-related commitments		444			383			424			447			570			16			(22	)		444			570			(22	)

Total allowance for credit losses		1,781			1,561			1,754			2,310			2,546			14			(30	)		1,781			2,546			(30	)

Net charge-off/(recovery) rate (a)(d)		(1.16)	%		0.05	%		0.93	%		(0.17	)%		0.25	%								(0.09)	%		1.84	%
Allow. for loan losses to period-end loans retained (a)(d)		2.30			2.10			2.52			3.51			3.85									2.30			3.85
Allow. for loan losses to nonaccrual loans retained (a)(c)(d)		105			79			56			59			98									105			98
Nonaccrual loans to total period-end loans		2.35			2.83			4.58			6.36			4.46									2.35			4.46


(a)		Loans retained included credit portfolio loans, leveraged leases and other accrual loans, and excluded loans held-for-sale and loans at fair value.

(b)		Adjusted assets, a non-GAAP financial measure, is presented to assist the reader in comparing IB’s asset and capital levels with those of other investment banks in the securities industry. For further discussion of adjusted assets, see page 44.

(c)		Allowance for loan losses of $320 million, $377 million, $567 million, $1.1 billion and $603 million were held against these nonaccrual loans at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively.

(d)		Loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage ratio and net charge-off/(recovery) rate.

Page 10


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
MARKET RISK — AVERAGE TRADING AND CREDIT
PORTFOLIO VAR - 95% CONFIDENCE LEVEL
Trading activities:
Fixed income	$	48		$	45		$	49		$	53		$	72			7	%		(33)	%	$	47		$	68			(31)	%
Foreign exchange		10			9			11			10			9			11			11			10			11			(9	)
Equities		19			25			29			23			21			(24	)		(10	)		24			22			9
Commodities and other		15			16			13			14			13			(6	)		15			15			16			(6	)
Diversification (a)		(39	)		(37	)		(38	)		(38	)		(38	)		(5	)		(3	)		(38	)		(43	)		12

Total trading VaR (b)		53			58			64			62			77			(9	)		(31	)		58			74			(22	)

Credit portfolio VaR (c)		38			27			26			26			30			41			27			30			25			20
Diversification (a)		(21	)		(8	)		(7	)		(10	)		(8	)		(163	)		(163	)		(11	)		(9	)		(22	)

Total trading and credit portfolio VaR	$	70		$	77		$	83		$	78		$	99			(9	)		(29	)	$	77		$	90			(14	)


	NINE MONTHS ENDED SEPTEMBER 30, 2011					FULL YEAR 2010
MARKET SHARES AND RANKINGS (d)	Market Share			Rankings		Market Share			Rankings
Global investment banking fees (e)		8.4	%		#1		7.6	%		#1
Debt, equity and equity-related
Global		6.8			1		7.2			1
U.S.		11.2			1		11.1			1
Syndicated loans
Global		11.3			1		8.5			2
U.S.		21.6			1		19.1			2
Long-term debt (f)
Global		6.8			1		7.2			2
U.S.		11.2			1		10.9			2
Equity and equity-related
Global (g)		7.0			4		7.3			3
U.S.		12.3			1		13.1			2
Announced M&A (h)
Global		22.4			2		16.2			4
U.S.		34.0			1		22.2			3


(a)		Average value-at-risk (“ VaR”) was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is therefore usually less than the sum of the risks of the positions themselves.

(b)		Trading VaR includes substantially all trading activities in IB, including the credit spread sensitivities of certain mortgage products and syndicated lending facilities that the Firm intends to distribute; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. Trading VaR does not include the debit valuation adjustments (“DVA”) taken on derivative and structured liabilities to reflect the credit quality of the Firm.

(c)		Credit portfolio VaR includes the derivative credit valuation adjustments (“CVA”), hedges of the CVA and mark-to-market (“MTM”) hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not MTM.

(d)		Source: Dealogic. Global Investment Banking fees reflects the ranking of fees and market share. Remainder of rankings reflects transaction volume rank and market share.

(e)		Global IB fees exclude money market, short-term debt and shelf deals.

(f)		Long-term debt tables include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities and mortgage-backed securities; and exclude money market, short-term debt, and U.S. municipal securities.

(g)		Equity and equity-related rankings include rights offerings and Chinese A-Shares.

(h)		Global announced M&A is based on transaction value at announcement; all other rankings are based on transaction 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%. M&A for the nine months ended September 30, 2011 and full year 2010 reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S. involvement ranking.

Page 11


JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED (in millions)


	QUARTERLY TRENDS																NINE MONTHS ENDED SEPTEMBER 30,
											3Q11 Change										2011 Change
	3Q11		2Q11		1Q11		4Q10		3Q10		2Q11			3Q10			2011		2010		2010
INTERNATIONAL METRICS
Total net revenue: (a)
Asia/Pacific	$	948	$	762	$	1,122	$	927	$	993		24	%		(5	)%	$	2,832	$	2,882		(2	)%
Latin America/Caribbean		175		337		327		172		167		(48	)		5			839		725		16
Europe/Middle East/Africa		1,995		2,478		2,592		1,423		1,538		(19	)		30			7,065		5,957		19
North America		3,251		3,737		4,192		3,691		2,655		(13	)		22			11,180		10,440		7

Total net revenue	$	6,369	$	7,314	$	8,233	$	6,213	$	5,353		(13	)		19		$	21,916	$	20,004		10

Loans (period-end): (b)
Asia/Pacific	$	6,892	$	6,211	$	5,472	$	5,924	$	5,595		11			23		$	6,892	$	5,595		23
Latin America/Caribbean		3,222		2,633		2,190		2,200		1,545		22			109			3,222		1,545		109
Europe/Middle East/Africa		15,361		15,370		14,059		13,961		12,781		—			20			15,361		12,781		20
North America		32,688		31,893		30,991		31,060		31,378		2			4			32,688		31,378		4

Total loans	$	58,163	$	56,107	$	52,712	$	53,145	$	51,299		4			13		$	58,163	$	51,299		13


(a)		Regional revenues are based primarily on the domicile of the client and/or location of the trading desk.

(b)		Includes retained loans based on the domicile of the customer. Excludes loans held-for-sale and loans at fair value.

Page 12


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	833		$	813		$	736		$	728		$	743			2	%		12	%	$	2,382		$	2,333			2	%
Asset management, administration and commissions		513			499			485			454			441			3			16			1,497			1,322			13
Mortgage fees and related income		1,380			1,100			(489	)		1,609			705			25			96			1,991			2,246			(11	)
Credit card income		611			572			537			524			502			7			22			1,720			1,431			20
Other income		136			131			111			128			143			4			(5	)		378			452			(16	)

Noninterest revenue		3,473			3,115			1,380			3,443			2,534			11			37			7,968			7,784			2
Net interest income		4,062			4,027			4,086			4,256			4,280			1			(5	)		12,175			12,964			(6	)

TOTAL NET REVENUE (a)		7,535			7,142			5,466			7,699			6,814			6			11			20,143			20,748			(3	)

Provision for credit losses		1,027			994			1,199			2,418			1,397			3			(26	)		3,220			6,501			(50	)

NONINTEREST EXPENSE
Compensation expense		2,101			1,937			1,876			1,816			1,825			8			15			5,914			5,256			13
Noncompensation expense		2,404			3,274			2,964			2,587			2,276			(27	)		6			8,642			6,548			32
Amortization of intangibles		60			60			60			68			69			—			(13	)		180			208			(13	)

TOTAL NONINTEREST EXPENSE		4,565			5,271			4,900			4,471			4,170			(13	)		9			14,736			12,012			23


Income/(loss) before income tax expense/(benefit)		1,943			877			(633	)		810			1,247			122			56			2,187			2,235			(2	)
Income tax expense/(benefit)		782			494			(234	)		351			531			58			47			1,042			966			8

NET INCOME/(LOSS)	$	1,161		$	383		$	(399	)	$	459		$	716			203			62		$	1,145		$	1,269			(10	)


FINANCIAL RATIOS
ROE		18	%		6	%		(6)	%		7	%		12	%								6	%		7	%
Overhead ratio		61			74			90			58			61									73			58
Overhead ratio excluding core deposit intangibles (b)		60			73			89			57			60									72			57

SELECTED BALANCE SHEET DATA (period-end)
Assets	$	276,799		$	283,753		$	289,336		$	299,950		$	300,913			(2	)		(8	)	$	276,799		$	300,913			(8	)
Loans:
Loans retained		235,572			241,127			247,128			253,904			260,647			(2	)		(10	)		235,572			260,647			(10	)
Loans held-for-sale and loans at fair value (c)		13,153			13,558			12,234			14,863			13,032			(3	)		1			13,153			13,032			1

Total loans		248,725			254,685			259,362			268,767			273,679			(2	)		(9	)		248,725			273,679			(9	)
Deposits		388,735			378,371			379,605			369,925			363,295			3			7			388,735			363,295			7
Equity		25,000			25,000			25,000			24,600			24,600			—			2			25,000			24,600			2

SELECTED BALANCE SHEET DATA (average)
Assets		283,443			287,235			297,938			307,040			309,523			(1	)		(8	)		289,486			316,407			(9	)
Loans:
Loans retained		238,273			244,030			250,443			257,500			264,467			(2	)		(10	)		244,204			272,744			(10	)
Loans held-for-sale and loans at fair value (c)		16,608			14,613			17,519			18,877			15,571			14			7			16,243			14,222			14

Total loans		254,881			258,643			267,962			276,377			280,038			(1	)		(9	)		260,447			286,966			(9	)
Deposits		382,202			378,932			371,787			367,032			361,668			1			6			377,678			359,669			5
Equity		25,000			25,000			25,000			24,600			24,600			—			2			25,000			24,600			2

Headcount		128,992			122,728			118,547			116,882			114,440			5			13			128,992			114,440			13


(a)		Total net revenue included tax-equivalent adjustments associated with tax-exempt loans to municipalities and other qualified entities of $2 million, $1 million, $2 million, zero and $2 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $5 million and $8 million for the nine months ended September 30, 2011 and 2010, respectively.

(b)		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 would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excludes Consumer & Business Banking’s CDI amortization expense related to prior business combination transactions of $60 million, $60 million, $60 million, $68 million and $69 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $180 million and $208 million for the nine months ended September 30, 2011 and 2010, respectively.

(c)		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 $13.0 billion, $13.3 billion, $12.0 billion, $14.7 billion and $12.6 billion at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively. Average balances of these loans totaled $16.5 billion, $14.5 billion, $17.4 billion, $18.7 billion and $15.3 billion for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $16.1 billion and $14.0 billion for the nine months ended September 30, 2011 and 2010, respectively.

Page 13


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	1,027		$	1,069		$	1,199		$	1,970		$	1,397			(4)	%		(26)	%	$	3,295		$	5,251			(37)	%
Nonaccrual loans:
Nonaccrual loans retained		7,579			8,088			8,278			8,568			9,601			(6	)		(21	)		7,579			9,601			(21	)
Nonaccrual loans held-for-sale and loans at fair value		132			142			150			145			166			(7	)		(20	)		132			166			(20	)

Total nonaccrual loans (a)(b)(c)		7,711			8,230			8,428			8,713			9,767			(6	)		(21	)		7,711			9,767			(21	)
Nonperforming assets (a)(b)(c)		8,576			9,175			9,632			9,999			11,155			(7	)		(23	)		8,576			11,155			(23	)
Allowance for loan losses		15,479			15,479			15,554			15,554			15,106			—			2			15,479			15,106			2

Net charge-off rate (d)		1.71	%		1.76	%		1.94	%		3.04	%		2.10	%								1.80	%		2.57	%
Net charge-off rate excluding purchased credit-impaired
(“PCI”) loans (d)(e)		2.39			2.46			2.72			4.25			2.94									2.53			3.61
Allowance for loan losses to ending loans retained (d)		6.57			6.42			6.29			6.13			5.80									6.57			5.80
Allowance for loan losses to ending loans retained excluding PCI loans (d)(e)		6.26			6.12			6.02			5.86			6.61									6.26			6.61
Allowance for loan losses to nonaccrual loans retained (a)(d)(e)		139			130			128			124			128									139			128
Nonaccrual loans to total loans		3.10			3.23			3.25			3.24			3.57									3.10			3.57
Nonaccrual loans to total loans excluding PCI loans (a)		4.25			4.43			4.47			4.45			4.91									4.25			4.91


(a)		Excludes PCI loans that were acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing.

(b)		Certain of these loans are classified as trading assets on the Consolidated Balance Sheets.

(c)		At September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.5 billion, $9.1 billion, $8.8 billion, $9.4 billion and $9.2 billion, respectively, that are 90 or more days past due; and (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.4 billion, $2.3 billion, $1.9 billion and $1.7 billion, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(d)		Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratio and the net charge-off rate.

(e)		Excludes the impact of PCI 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 $4.9 billion, $4.9 billion, $4.9 billion, $4.9 billion and $2.8 billion was recorded for these loans at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, which was also excluded from the applicable ratios. To date, no charge-offs have been recorded for these loans.

Page 14


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
CONSUMER & BUSINESS BANKING
Noninterest revenue	$	1,952		$	1,889		$	1,757		$	1,716		$	1,692			3	%		15	%	$	5,598		$	5,128			9	%
Net interest income		2,730			2,706			2,659			2,693			2,744			1			(1	)		8,095			8,191			(1	)

Total net revenue		4,682			4,595			4,416			4,409			4,436			2			6			13,693			13,319			3
Provision for credit losses		126			42			119			69			173			200			(27	)		287			561			(49	)
Noninterest expense		2,842			2,713			2,799			2,676			2,798			5			2			8,354			8,041			4

Income before income tax expense		1,714			1,840			1,498			1,664			1,465			(7	)		17			5,052			4,717			7

Net income	$	1,023		$	1,098		$	893		$	952		$	839			(7	)		22		$	3,014		$	2,700			12


Overhead ratio		61	%		59	%		63	%		61	%		63	%								61	%		60	%
Overhead ratio excluding core deposit intangibles (a)		59			58			62			59			62									60			59

BUSINESS METRICS (in billions, except where otherwise noted)
Business banking origination volume (in millions)	$	1,440		$	1,573		$	1,425		$	1,435		$	1,126			(8	)		28		$	4,438		$	3,253			36
End-of-period loans		17.3			17.1			17.0			16.8			16.6			1			4			17.3			16.6			4
End-of-period deposits:
Checking		142.1			136.3			137.5			131.7			124.2			4			14			142.1			124.2			14
Savings		186.7			182.1			180.3			170.6			166.4			3			12			186.7			166.4			12
Time and other		39.0			42.0			44.0			46.0			48.9			(7	)		(20	)		39.0			48.9			(20	)

Total end-of-period deposits		367.8			360.4			361.8			348.3			339.5			2			8			367.8			339.5			8
Average loans		17.2			17.1			16.9			16.6			16.6			1			4			17.0			17.0			—
Average deposits:
Checking		137.0			136.6			132.0			126.6			123.5			—			11			135.2			122.4			10
Savings		184.6			180.9			175.1			168.7			166.2			2			11			180.2			165.3			9
Time and other		40.6			43.0			45.0			47.5			49.9			(6	)		(19	)		42.9			52.4			(18	)

Total average deposits		362.2			360.5			352.1			342.8			339.6			—			7			358.3			340.1			5
Deposit margin		2.82	%		2.83	%		2.88	%		2.96	%		3.04	%								2.85	%		3.01	%
Average assets	$	30.1		$	29.0		$	29.4		$	29.1		$	28.5			4			6		$	29.5		$	29.4			—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs		126			117			119			169			173			8			(27	)		362			561			(35	)
Net charge-off rate		2.91	%		2.74	%		2.86	%		4.04	%		4.13	%								2.85	%		4.41	%
Nonperforming assets	$	773		$	784		$	822		$	846		$	913			(1	)		(15	)	$	773		$	913			(15	)

RETAIL BRANCH BUSINESS METRICS
Investment sales volume		5,102			6,334			6,584			6,069			5,798			(19	)		(12	)		18,020			17,510			3
Client investment assets		132,255			140,285			138,150			133,114			127,743			(6	)		4			132,255			127,743			4
% managed accounts		23	%		23	%		22	%		20	%		18	%								23	%		18	%

Number of:
Branches		5,396			5,340			5,292			5,268			5,192			1			4			5,396			5,192			4
Chase Private Client branch locations		139			16			16			16			16		NM			NM				139			16		NM
ATMs		16,708			16,443			16,265			16,145			15,815			2			6			16,708			15,815			6
Personal bankers		24,205			23,308			21,875			21,715			21,438			4			13			24,205			21,438			13
Sales specialists		7,891			7,630			7,336			7,196			7,123			3			11			7,891			7,123			11
Active online customers (in thousands)		18,372			18,085			18,318			17,744			17,167			2			7			18,372			17,167			7
Active mobile customers (in thousands)		7,266			6,608			6,048			5,354			4,600			10			58			7,266			4,600			58
Chase Private Clients		11,711			5,807			4,829			4,242			3,890			102			201			11,711			3,890			201
Checking accounts (in thousands)		26,541			26,266			26,622			27,252			27,014			1			(2	)		26,541			27,014			(2	)


(a)		Consumer & Business Banking uses the overhead ratio (excluding the amortization of CDI), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excludes Consumer & Business Banking’s CDI amortization expense related to prior business combination transactions of $60 million, $60 million, $60 million, $68 million and $69 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $180 million and $208 million for the nine months ended September 30, 2011 and 2010, respectively.

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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
MORTGAGE PRODUCTION AND SERVICING
Mortgage fees and related income	$	1,380		$	1,100		$	(489	)	$	1,609		$	705			25	%		96	%	$	1,991		$	2,246			(11)	%
Other noninterest revenue		118			106			104			108			116			11			2			328			305			8
Net interest income		204			124			271			244			232			65			(12	)		599			660			(9	)

Total net revenue		1,702			1,330			(114	)		1,961			1,053			28			62			2,918			3,211			(9	)
Provision for credit losses		2			(2	)		4			12			27		NM				(93	)		4			46			(91	)
Noninterest expense		1,360			2,187			1,746			1,382			982			(38	)		38			5,293			2,757			92

Income/(loss) before income tax expense/(benefit)		340			(855	)		(1,864	)		567			44		NM			NM				(2,379	)		408		NM

Net income/(loss)	$	205		$	(649	)	$	(1,130	)	$	330		$	25		NM			NM			$	(1,574	)	$	239		NM


Overhead ratio		80	%		164	%	NM		%		70	%		93	%								181	%		86	%

FUNCTIONAL RESULTS
Production
Production-related revenue, excl. repurchase losses	$	1,304		$	966		$	897		$	1,338		$	1,448			35			(10	)	$	3,167		$	2,971			7
Production expense		497			457			424			436			434			9			15			1,378			1,177			17

Income, excluding repurchase losses		807			509			473			902			1,014			59			(20	)		1,789			1,794			—
Repurchase losses		(314	)		(223	)		(420	)		(349	)		(1,464	)		(41	)		79			(957	)		(2,563	)		63

Income/(loss) before income tax expense/(benefit)		493			286			53			553			(450	)		72		NM				832			(769	)	NM
Servicing
Servicing-related revenue		1,154			1,040			1,208			1,237			1,282			11			(10	)		3,402			3,771			(10	)
MSR asset amortization		(457	)		(478	)		(563	)		(555	)		(604	)		4			24			(1,498	)		(1,829	)		18
Servicing expense		866			1,728			1,326			958			574			(50	)		51			3,920			1,626

Income/(loss), excluding MSR risk management		(169	)		(1,166	)		(681	)		(276	)		104			86		NM				(2,016	)		316		NM
MSR risk management (a)		16			25			(1,236	)		290			390			(36	)		(96	)		(1,195	)		861		NM

Income/(loss) before income tax expense/(benefit)		(153	)		(1,141	)		(1,917	)		14			494			87		NM				(3,211	)		1,177		NM

Net Income/(loss)	$	205		$	(649	)	$	(1,130	)	$	330		$	25		NM			NM			$	(1,574	)	$	239		NM


SELECTED BALANCE SHEET DATA (in billions)
End-of-period loans:
Prime mortgage, including option ARMs (b)(c)	$	14.8		$	14.3		$	14.1		$	14.2		$	13.8			3			7		$	14.8		$	13.8			7
Loans held-for-sale and loans at fair value (d)		13.2			13.6			12.2			14.9			13.0			(3	)		2			13.2			13.0			2
Average loans:
Prime mortgage, including option ARMs (b)(e)		14.4			14.1			14.0			13.9			13.6			2			6			14.2			13.3			7
Loans held-for-sale and loans at fair value (d)		16.6			14.6			17.5			18.9			15.6			14			6			16.2			14.2			14
Average assets		59.7			58.1			61.4			62.7			58.5			3			2			59.7			56.1			6
Repurchase reserve (ending)		3.2			3.2			3.2			3.0			3.0			—			7			3.2			3.0			7

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries):
Prime mortgage, including option ARMs		2			(2	)		4			12			10		NM				(80	)		4			29			(86	)
Net charge-off/(recovery) rate:
Prime mortgage, including option ARMs (e)		0.06	%		(0.06)	%		0.12	%		0.35	%		0.30	%								0.04	%		0.30	%
30+ day delinquency rate (c)(f)		3.35			3.30			3.21			3.44			3.40									3.35			3.40
Nonperforming assets (g)	$	691		$	662		$	658		$	729		$	786			4			(12	)	$	691		$	786			(12	)


(a)		MSR risk management predominantly includes (a) changes in the MSR asset fair value due to changes in market interest rates and other modeled inputs and assumptions, and (b) changes in the value of the derivatives used to hedge the MSR asset. For the nine months ended September 30, 2011, the Firm recognized a loss of $6.3 billion due to a decrease in the fair value of the MSR asset, which included $1.1 billion related to revised cost to service assumptions incorporated in the MSR valuation in the first quarter of 2011. The remaining loss of $5.2 billion is predominantly the result of a decrease in interest rates. Offsetting this loss, the Firm recognized a $5.1 billion gain on the derivatives used to hedge the MSR asset during the nine months ended September 30, 2011.

(b)		Predominantly represents prime loans repurchased from Government National Mortgage Association (“Ginnie Mae”) pools, which are insured by U.S. government agencies.

(c)		End-of-period loans owned includes loans held-for-sale of $131 million, $221 million, $188 million, $154 million and $428 million at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively. No allowance for loan losses was recorded for these loans. These amounts are excluded when calculating the 30+ day delinquency rate.

(d)		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 $13.0 billion, $13.3 billion, $12.0 billion, $14.7 billion and $12.6 billion at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively. Average balances of these loans totaled $16.5 billion, $14.5 billion, $17.4 billion, $18.7 billion and $15.3 billion for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $16.1 billion and $14.0 billion for the nine months ended September 30, 2011 and 2010, respectively.

(e)		Average loans owned includes loans held-for-sale of $108 million, $76 million, $133 million, $185 million and $226 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $105 million and $210 million for the nine months ended September 30, 2011 and 2010. No allowance for loan losses was recorded for these loans. These amounts are excluded when calculating the net charge-off rate.

(f)		Excludes mortgage loans insured by U.S. government agencies of $10.5 billion, $10.1 billion, $9.5 billion, $10.3 billion and $10.2 billion at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(g)		At September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.5 billion, $9.1 billion, $8.8 billion, $9.4 billion and $9.2 billion, respectively, that are 90 or more days past due; and (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.4 billion, $2.3 billion, $1.9 billion and $1.7 billion, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
MORTGAGE PRODUCTION AND SERVICING (continued)
BUSINESS METRICS
Origination volume by channel
Retail	$	22.4		$	20.7		$	21.0		$	22.9		$	19.2			8	%		17	%	$	64.1		$	45.9			40	%
Wholesale (a)		0.1			0.1			0.2			0.3			0.2			—			(50	)		0.4			1.0			(60	)
Correspondent (a)		13.4			10.3			13.5			25.5			19.1			30			(30	)		37.2			49.8			(25	)
CNT (negotiated transactions)		0.9			2.9			1.5			2.1			2.4			(69	)		(63	)		5.3			8.1			(35	)

Total origination volume		36.8			34.0			36.2			50.8			40.9			8			(10	)		107.0			104.8			2


Application volume by channel
Retail		37.7			33.6			31.3			32.4			34.6			12			9			102.6			82.7			24
Wholesale (a)		0.2			0.3			0.3			0.4			0.6			(33	)		(67	)		0.8			2.0			(60	)
Correspondent (a)		20.2			14.9			13.6			24.9			30.7			36			(34	)		48.7			72.4			(33	)

Total application volume		58.1			48.8			45.2			57.7			65.9			19			(12	)		152.1			157.1			(3	)


Third-party mortgage loans serviced (ending)		924.5			940.8			955.0			967.5			1,012.7			(2	)		(9	)		924.5			1,012.7			(9	)
Third-party mortgage loans serviced (average)		931.4			947.0			958.7			981.7			1,028.6			(2	)		(9	)		945.7			1,056.3			(10	)
MSR net carrying value (ending) (b)		7.8			12.2			13.1			13.6			10.3			(36	)		(24	)		7.8			10.3			(24	)
Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending)		0.84	%		1.30	%		1.37	%		1.41	%		1.02	%								0.84	%		1.02	%
Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average)		0.44			0.43			0.45			0.46			0.44									0.44			0.44
MSR revenue multiple (c)		1.91x			3.02x			3.04x			3.07x			2.32x									1.91x			2.32x


(a)		Includes rural housing loans sourced through brokers and correspondents, which are underwritten under Rural Housing Authority.

(b)		The fair value of the MSR asset decreased $5.8 billion during the nine months ended September 30, 2011, which included $1.1 billion related to revised cost to service assumptions incorporated in the MSR valuation in the first quarter of 2011. The remaining $4.7 billion decline in the MSR fair value represents a $5.2 billion loss, predominantly due to a decrease in interest rates, partially offset by new capitalization, net of amortization. The $5.2 billion loss was offset by $5.1 billion of gains on the derivatives used to hedge the MSR asset; these derivatives are recorded separately from the MSR asset.

(c)		Represents the ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending) divided by the ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average).

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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	23		$	20		$	8		$	10		$	21			15	%		10	%	$	51		$	105			(51)	%
Net interest income		1,128			1,197			1,156			1,319			1,304			(6	)		(13	)		3,481			4,113			(15	)

Total net revenue		1,151			1,217			1,164			1,329			1,325			(5	)		(13	)		3,532			4,218			(16	)
Provision for credit losses		899			954			1,076			2,337			1,197			(6	)		(25	)		2,929			5,894			(50	)
Noninterest expense		363			371			355			413			390			(2	)		(7	)		1,089			1,214			(10	)

Income/(loss) before income tax expense/(benefit)		(111	)		(108	)		(267	)		(1,421	)		(262	)		(3	)		58			(486	)		(2,890	)		83

Net income/(loss)	$	(67	)	$	(66	)	$	(162	)	$	(823	)	$	(148	)		(2	)		55		$	(295	)	$	(1,670	)		82


Overhead ratio		32	%		30	%		30	%		31	%		29	%								31	%		29	%

BUSINESS METRICS (in billions)
LOANS EXCLUDING PCI LOANS (a)
End-of-period loans owned:
Home equity	$	80.3		$	82.7		$	85.3		$	88.4		$	91.7			(3	)		(12	)	$	80.3		$	91.7			(12	)
Prime mortgage, including option ARMs		45.5			47.0			48.5			49.8			51.3			(3	)		(11	)		45.5			51.3			(11	)
Subprime mortgage		10.0			10.4			10.8			11.3			12.0			(4	)		(17	)		10.0			12.0			(17	)
Other		0.7			0.8			0.8			0.8			0.9			(13	)		(22	)		0.7			0.9			(22	)

Total end-of-period loans owned	$	136.5		$	140.9		$	145.4		$	150.3		$	155.9			(3	)		(12	)	$	136.5		$	155.9			(12	)
Average loans owned:
Home equity	$	81.6		$	84.0		$	86.9		$	90.2		$	93.3			(3	)		(13	)	$	84.1		$	96.4			(13	)
Prime mortgage, including option ARMs		46.2			47.6			49.3			50.7			52.2			(3	)		(11	)		47.7			54.3			(12	)
Subprime mortgage		10.3			10.7			11.1			11.8			12.3			(4	)		(16	)		10.7			13.0			(18	)
Other		0.7			0.8			0.8			0.9			1.0			(13	)		(30	)		0.8			1.0			(20	)

Total average loans owned	$	138.8		$	143.1		$	148.1		$	153.6		$	158.8			(3	)		(13	)	$	143.3		$	164.7			(13	)
PCI LOANS (a)
End-of-period loans owned:
Home equity	$	23.1		$	23.5		$	24.0		$	24.5		$	25.0			(2	)		(8	)	$	23.1		$	25.0			(8	)
Prime mortgage		15.6			16.2			16.7			17.3			17.9			(4	)		(13	)		15.6			17.9			(13	)
Subprime mortgage		5.1			5.2			5.3			5.4			5.5			(2	)		(7	)		5.1			5.5			(7	)
Option ARMs		23.3			24.1			24.8			25.6			26.4			(3	)		(12	)		23.3			26.4			(12	)

Total end-of-period loans owned	$	67.1		$	69.0		$	70.8		$	72.8		$	74.8			(3	)		(10	)	$	67.1		$	74.8			(10	)
Average loans owned:
Home equity	$	23.3		$	23.7		$	24.2		$	24.7		$	25.2			(2	)		(8	)	$	23.7		$	25.7			(8	)
Prime mortgage		15.9			16.5			17.0			17.6			18.2			(4	)		(13	)		16.5			18.8			(12	)
Subprime mortgage		5.1			5.2			5.3			5.4			5.6			(2	)		(9	)		5.2			5.8			(10	)
Option ARMs		23.7			24.4			25.1			25.9			26.7			(3	)		(11	)		24.4			27.7			(12	)

Total average loans owned	$	68.0		$	69.8		$	71.6		$	73.6		$	75.7			(3	)		(10	)	$	69.8		$	78.0			(11	)
TOTAL REAL ESTATE PORTFOLIOS
End-of-period loans owned:
Home equity	$	103.4		$	106.2		$	109.3		$	112.9		$	116.7			(3	)		(11	)	$	103.4		$	116.7			(11	)
Prime mortgage, including option ARMs		84.4			87.3			90.0			92.7			95.6			(3	)		(12	)		84.4			95.6			(12	)
Subprime mortgage		15.1			15.6			16.1			16.7			17.5			(3	)		(14	)		15.1			17.5			(14	)
Other		0.7			0.8			0.8			0.8			0.9			(13	)		(22	)		0.7			0.9			(22	)

Total end-of-period loans owned	$	203.6		$	209.9		$	216.2		$	223.1		$	230.7			(3	)		(12	)	$	203.6		$	230.7			(12	)
Average loans owned:
Home equity	$	104.9		$	107.7		$	111.1		$	114.9		$	118.5			(3	)		(11	)	$	107.8		$	122.1			(12	)
Prime mortgage, including option ARMs		85.8			88.5			91.4			94.2			97.1			(3	)		(12	)		88.6			100.8			(12	)
Subprime mortgage		15.4			15.9			16.4			17.2			17.9			(3	)		(14	)		15.9			18.8			(15	)
Other		0.7			0.8			0.8			0.9			1.0			(13	)		(30	)		0.8			1.0			(20	)

Total average loans owned	$	206.8		$	212.9		$	219.7		$	227.2		$	234.5			(3	)		(12	)	$	213.1		$	242.7			(12	)
Average assets		193.7			200.1			207.2			215.3			222.5			(3	)		(13	)		200.3			230.9			(13	)
Home equity origination volume		0.3			0.3			0.2			0.3			0.3			—			—			0.8			0.9			(11	)


(a)		PCI 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 lives of the loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due.

Page 18


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
REAL ESTATE PORTFOLIOS (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding PCI loans (a)(b)
Home equity	$	581		$	592		$	720		$	792		$	730			(2	)%		(20	)%	$	1,893		$	2,652			(29)	%
Prime mortgage, including option ARMs		172			198			161			558			266			(13	)		(35	)		531			1,015			(48	)
Subprime mortgage		141			156			186			429			206			(10	)		(32	)		483			945			(49	)
Other		5			8			9			10			12			(38	)		(58	)		22			49			(55	)

Total net charge-offs	$	899		$	954		$	1,076		$	1,789		$	1,214			(6	)		(26	)	$	2,929		$	4,661			(37	)
Net charge-off rate excluding PCI loans (a)(b)
Home equity		2.82	%		2.83	%		3.36	%		3.48	%		3.10	%								3.01	%		3.68	%
Prime mortgage, including option ARMs		1.48			1.67			1.32			4.37			2.02									1.49			2.50
Subprime mortgage		5.43			5.85			6.80			14.42			6.64									6.04			9.72
Other		2.83			4.01			4.56			4.41			4.76									3.68			6.55
Total net charge-off rate excluding PCI loans		2.57			2.67			2.95			4.62			3.03									2.73			3.78
Net charge-off rate — reported
Home equity		2.20	%		2.20	%		2.63	%		2.73	%		2.44	%								2.35	%		2.90	%
Prime mortgage, including option ARMs		0.80			0.90			0.71			2.35			1.09									0.80			1.35
Subprime mortgage		3.63			3.94			4.60			9.90			4.57									4.06			6.72
Other		2.83			4.01			4.56			4.41			4.76									3.68			6.55
Total net charge-off rate — reported		1.72			1.80			1.99			3.12			2.05									1.84			2.57

30+ day delinquency rate excluding PCI loans (c)		5.80	%		5.98	%		6.22	%		6.45	%		6.77	%								5.80	%		6.77	%
Allowance for loan losses	$	14,659		$	14,659		$	14,659		$	14,659		$	14,111			—			4		$	14,659		$	14,111			4
Nonperforming assets (d)		7,112			7,729			8,152			8,424			9,456			(8	)		(25	)		7,112			9,456			(25	)
Allowance for loan losses to ending loans retained		7.20	%		6.98	%		6.78	%		6.57	%		6.12	%								7.20	%		6.12	%
Allowance for loan losses to ending loans retained excluding PCI loans (a)		7.12			6.90			6.68			6.47			7.25									7.12			7.25


(a)		Excludes the impact of PCI 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 $4.9 billion, $4.9 billion, $4.9 billion, $4.9 billion and $2.8 billion was recorded for these loans at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, which was also excluded from the applicable ratios. To date, no charge-offs have been recorded for these loans.

(b)		Net charge-offs and net charge-off rates for the fourth quarter of 2010 include the effect of $632 million of charge-offs related to an adjustment of the estimated net realizable value of the collateral underlying delinquent residential home loans. Excluding this adjustment, net charge-offs for the fourth quarter of 2010 were $725 million, $240 million and $182 million for the home equity, prime mortgage including option ARMs and subprime mortgage portfolios, respectively. Net charge-off rates excluding this adjustment and excluding PCI loans were 3.19%, 1.88% and 6.12% for the home equity, prime mortgage including option ARMs and subprime mortgage portfolios, respectively.

(c)		The delinquency rate for PCI loans was 24.44%, 26.20%, 27.36%, 28.20% and 28.07% at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively.

(d)		Excludes PCI loans that were acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing.

Page 19


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
INCOME STATEMENT (a)
REVENUE
Credit card income	$	1,053		$	1,123		$	898		$	928		$	864			(6	)%		22	%	$	3,074		$	2,586			19	%
All other income		201			183			149			177			196			10			3			533			587			(9	)

Noninterest revenue (b)		1,254			1,306			1,047			1,105			1,060			(4	)		18			3,607			3,173			14
Net interest income		3,521			3,455			3,744			3,967			4,025			2			(13	)		10,720			12,227			(12	)

TOTAL NET REVENUE (c)		4,775			4,761			4,791			5,072			5,085			—			(6	)		14,327			15,400			(7	)

Provision for credit losses		1,264			944			353			709			1,784			34			(29	)		2,561			7,861			(67	)

NONINTEREST EXPENSE
Compensation expense		459			448			459			407			406			2			13			1,366			1,244			10
Noncompensation expense		1,560			1,436			1,352			1,346			1,280			9			22			4,348			3,714			17
Amortization of intangibles		96			104			106			114			106			(8	)		(9	)		306			353			(13	)

TOTAL NONINTEREST EXPENSE (d)		2,115			1,988			1,917			1,867			1,792			6			18			6,020			5,311			13


Income before income tax expense		1,396			1,829			2,521			2,496			1,509			(24	)		(7	)		5,746			2,228			158
Income tax expense		547			719			987			948			583			(24	)		(6	)		2,253			904			149

NET INCOME	$	849		$	1,110		$	1,534		$	1,548		$	926			(24	)		(8	)	$	3,493		$	1,324			164


FINANCIAL RATIOS (a)
ROE		21	%		28	%		39	%		33	%		20	%								29	%		10	%
Overhead ratio		44			42			40			37			35									42			34

SELECTED BALANCE SHEET DATA (period-end) (a)
Loans:
Credit Card	$	127,135		$	125,523		$	128,803		$	137,676		$	136,436			1			(7	)	$	127,135		$	136,436			(7	)
Auto		46,659			46,796			47,411			48,367			48,186			—			(3	)		46,659			48,186			(3	)
Student		13,751			14,003			14,288			14,454			14,687			(2	)		(6	)		13,751			14,687			(6	)

Total loans (e)		187,545			186,322			190,502			200,497			199,309			1			(6	)		187,545			199,309			(6	)
Equity		16,000			16,000			16,000			18,400			18,400			—			(13	)		16,000			18,400			(13	)

SELECTED BALANCE SHEET DATA (average) (a)
Total assets	$	199,974		$	198,044		$	204,441		$	205,286		$	207,474			1			(4	)	$	200,803		$	215,653			(7	)
Loans:
Credit Card		126,536			125,038			132,537			135,585			140,059			1			(10	)		128,015			147,326			(13	)
Auto		46,549			46,966			47,690			48,347			47,726			(1	)		(2	)		47,064			47,353			(1	)
Student		13,865			14,135			14,410			14,566			14,824			(2	)		(6	)		14,135			16,410			(14	)

Total loans (f)		186,950			186,139			194,637			198,498			202,609			—			(8	)		189,214			211,089			(10	)
Equity		16,000			16,000			16,000			18,400			18,400			—			(13	)		16,000			18,400			(13	)
Headcount (g)		27,554			26,874			26,777			25,733			26,382			3			4			27,554			26,382			4


(a)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to Card. There is no material impact on the financial data; prior-year periods were not revised.

(b)		Includes commercial card noninterest revenue of $76 million, $75 million and $72 million for the three months ended September 30, 2011, June 30, 2011 and March 31, 2011, respectively, and $223 million for the nine months ended September 30, 2011.

(c)		Total net revenue included tax-equivalent adjustments associated with tax-exempt loans to certain qualified entities of $1 million, $1 million, $1 million and $2 million for the three months ended June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $2 million and $6 million for the nine months ended September 30, 2011 and 2010, respectively.

(d)		Includes commercial card noninterest expense of $76 million, $69 million and $75 million for the three months ended September 30, 2011, June 30, 2011 and March 31, 2011, respectively, and $220 million for the nine months ended September 30, 2011.

(e)		Total period-end loans include loans held-for-sale of $94 million, $4.0 billion, $2.2 billion and $39 million at September 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively.

(f)		Total average loans include loans held-for-sale of $1 million, $276 million, $3.0 billion, $593 million and $112 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $1.1 billion and $1.5 billion for the nine months ended September 30, 2011 and 2010, respectively.

(g)		Headcount includes 1,274 employees related to the transfer of the commercial card business from TSS to Card in the first quarter of 2011.

Page 20


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
CREDIT DATA AND QUALITY STATISTICS (a)
Net charge-offs:
Credit Card	$	1,499		$	1,810		$	2,226		$	2,671		$	3,133			(17	)%		(52	)%	$	5,535		$	11,366			(51	)%
Auto		42			19			47			71			67			121			(37	)		108			227			(52	)
Student		93			135			80			118			84			(31	)		11			308			269			14

Total net charge-offs		1,634			1,964			2,353			2,860			3,284			(17	)		(50	)		5,951			11,862			(50	)
Net charge-off rate:
Credit Card (b)		4.70	%		5.82	%		6.97	%		7.85	%		8.87	%								5.83	%		10.31	%
Auto		0.36			0.16			0.40			0.58			0.56									0.31			0.64
Student (c)		2.66			3.83			2.25			3.22			2.27									2.91			2.41
Total net charge-off rate		3.47			4.24			4.98			5.73			6.43									4.23			7.57

Delinquency rates
30+ day delinquency rate:
Credit Card (d)		2.90			2.98			3.57			4.14			4.57									2.90			4.57
Auto		1.01			0.98			0.97			1.22			0.97									1.01			0.97
Student (e)(f)		1.93			1.70			2.01			1.53			1.77									1.93			1.77
Total 30+ day delinquency rate		2.36			2.38			2.79			3.23			3.49									2.36			3.49
90+ day delinquency rate — Credit Card (d)		1.43			1.55			1.93			2.25			2.41									1.43			2.41
Nonperforming assets (g)	$	232		$	233		$	275		$	269		$	268			—			(13	)	$	232		$	268			(13	)
Allowance for loan losses:
Credit Card		7,528			8,042			9,041			11,034			13,029			(6	)		(42	)		7,528			13,029			(42	)
Auto and Student		1,009			879			899			899			1,048			15			(4	)		1,009			1,048			(4	)

Total allowance for loan losses		8,537			8,921			9,940			11,933			14,077			(4	)		(39	)		8,537			14,077			(39	)
Allowance for loan losses to period-end loans:
Credit Card (d)		5.93	%		6.41	%		7.24	%		8.14	%		9.55	%								5.93	%		9.55	%
Auto and Student (e)		1.67			1.45			1.46			1.43			1.67									1.67			1.67
Total allowance for loan losses to period-end loans		4.55			4.79			5.33			6.02			7.06									4.55			7.06

BUSINESS METRICS
Credit Card, excluding Commercial Card (a)
Sales volume (in billions)	$	87.3		$	85.5		$	77.5		$	85.9		$	79.6			2			10		$	250.3		$	227.1			10
New accounts opened		2.0			2.0			2.6			3.4			2.7			—			(26	)		6.6			7.9			(16	)
Open accounts		64.3			65.4	(h)		91.9			90.7			89.0			(2	)		(28	)		64.3			89.0			(28	)
Merchant Services
Bank card volume (in billions)	$	138.1		$	137.3		$	125.7		$	127.2		$	117.0			1			18		$	401.1		$	342.1			17
Total transactions (in billions)		6.1			5.9			5.6			5.6			5.2			3			17			17.6			14.9			18
Auto and Student
Origination volume (in billions)
Auto	$	5.9		$	5.4		$	4.8		$	4.8		$	6.1			9			(3	)	$	16.1		$	18.2			(12	)
Student		0.1			—			0.1			—			0.2		NM				(50	)		0.2			1.9			(89	)


(a)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to Card. There is no material impact on the financial data; prior-year periods were not revised. The commercial card portfolio is excluded from business metrics and supplemental information where noted.

(b)		Average loans include loans held-for-sale of $1 million, $276 million, $3.0 billion and $586 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively, and $1.1 billion for the nine months ended September 30, 2011. These amounts are excluded when calculating the net charge-off rate.

(c)		Average loans included loans held-for-sale of $7 million and $112 million for the three months ended December 31, 2010 and September 30, 2010, respectively, and $1.5 billion for the nine months ended September 30, 2010. These amounts are excluded when calculating the net charge-off rate.

(d)		Period-end loans include loans held-for-sale of $94 million, $4.0 billion and $2.2 billion at September 30, 2011, March 31, 2011 and December 31, 2010, respectively. No allowance for loan losses was recorded for these loans. Loans held-for-sale are excluded when calculating the allowance for loan losses to period-end loans and delinquency rates.

(e)		Period-end loans included loans held-for-sale of $39 million at September 30, 2010. This amount is excluded when calculating the allowance for loan losses to period-end loans and the 30+ day delinquency rate.

(f)		Excludes student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $995 million, $968 million, $1.0 billion, $1.1 billion and $1.0 billion at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(g)		Nonperforming assets exclude student loans insured by U.S. government agencies under the FFELP of $567 million, $558 million, $615 million, $625 million and $572 million at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(h)		Reflects the impact of portfolio sales in the second quarter of 2011.

Page 21


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
SUPPLEMENTAL INFORMATION (a)(b)
Card Services, excluding Washington Mutual portfolio
Loans (period-end)	$	115,766		$	113,766		$	116,395		$	123,943		$	121,932			2	%		(5	)%	$	115,766		$	121,932			(5	)%
Average loans		114,940			112,984			119,411			121,493			124,933			2			(8	)		115,762			130,610			(11	)
Net interest income (c)		8.61	%		8.60	%		9.09	%		9.16	%		8.98	%								8.77	%		8.77	%
Net revenue (c)		11.73			12.01			11.57			11.78			11.33									11.77			11.04
Risk adjusted margin (c)(d)		8.93			8.71			10.28			10.26			6.76									9.32			4.41
Net charge-off rate (e)		4.29			5.22			6.13			7.08			8.06									5.22			9.24
30+ day delinquency rate (f)		2.62			2.71			3.22			3.66			4.13									2.62			4.13
90+ day delinquency rate (f)		1.28			1.41			1.71			1.98			2.16									1.28			2.16

Card Services, excluding Washington Mutual and commercial card portfolios
Loans (period-end)	$	114,207		$	112,366		$	115,016		$	123,943		$	121,932			2			(6	)	$	114,207		$	121,932			(6	)
Average loans		113,541			111,641			118,145			121,493			124,933			2			(9	)		114,425			130,610			(12	)
Net interest income (c)		8.79	%		8.77	%		9.25	%		9.16	%		8.98	%								8.94	%		8.77	%
Net revenue (c)		11.68			11.95			11.51			11.78			11.33									11.71			11.04
Risk adjusted margin (c)(d)		8.84			8.61			10.21			10.26			6.76									9.23			4.41
Net charge-off rate (e)		4.34			5.28			6.20			7.08			8.06									5.28			9.24
30+ day delinquency rate (f)		2.64			2.73			3.25			3.66			4.13									2.64			4.13
90+ day delinquency rate (f)		1.30			1.42			1.73			1.98			2.16									1.30			2.16


(a)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to Card. There is no material impact on the financial data; prior-year periods were not revised. The commercial card portfolio is excluded from business metrics and supplemental information where noted.

(b)		Supplemental information is provided for Card Services, excluding Washington Mutual and commercial card portfolios and including loans held-for-sale, which are non-GAAP financial measures, to provide more meaningful measures that enable comparability with prior periods.

(c)		As a percentage of average loans.

(d)		Represents total net revenue less provision for credit losses.

(e)		Average loans include loans held-for-sale of $1 million, $276 million, $3.0 billion and $586 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively, and $1.1 billion for the nine months ended September 30, 2011. These amounts are included when calculating the net charge-off rate.

(f)		Period-end loans include loans held-for-sale of $94 million, $4.0 billion and $2.2 billion at September 30, 2011, March 31, 2011 and December 31, 2010, respectively. These amounts are included when calculating the delinquency rates.

Page 22



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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	269		$	281		$	264		$	273		$	269			(4)	%		—	%	$	814		$	826			(1)	%
Asset management, administration and commissions		35			34			35			35			36			3			(3	)		104			109			(5	)
All other income (a)		220			283			203			299			242			(22	)		(9	)		706			658			7

Noninterest revenue		524			598			502			607			547			(12	)		(4	)		1,624			1,593			2
Net interest income		1,064			1,029			1,014			1,004			980			3			9			3,107			2,836			10

TOTAL NET REVENUE (b)		1,588			1,627			1,516			1,611			1,527			(2	)		4			4,731			4,429			7
Provision for credit losses		67			54			47			152			166			24			(60	)		168			145			16

NONINTEREST EXPENSE
Compensation expense		229			219			223			208			210			5			9			671			612			10
Noncompensation expense		337			336			332			342			341			—			(1	)		1,005			1,002			—
Amortization of intangibles		7			8			8			8			9			(13	)		(22	)		23			27			(15	)

TOTAL NONINTEREST EXPENSE		573			563			563			558			560			2			2			1,699			1,641			4


Income before income tax expense		948			1,010			906			901			801			(6	)		18			2,864			2,643			8
Income tax expense		377			403			360			371			330			(6	)		14			1,140			1,089			5

NET INCOME	$	571		$	607		$	546		$	530		$	471			(6	)		21		$	1,724		$	1,554			11


Revenue by product:
Lending (c)	$	857		$	880		$	837		$	749		$	693			(3	)		24		$	2,574		$	2,000			29
Treasury services (c)		572			556			542			659			670			3			(15	)		1,670			1,973			(15	)
Investment banking		116			152			110			126			120			(24	)		(3	)		378			340			11
Other		43			39			27			77			44			10			(2	)		109			116			(6	)

Total Commercial Banking revenue	$	1,588		$	1,627		$	1,516		$	1,611		$	1,527			(2	)		4		$	4,731		$	4,429			7


IB revenue, gross (d)	$	320		$	442		$	309		$	347		$	344			(28	)		(7	)	$	1,071		$	988			8

Revenue by client segment:
Middle Market Banking	$	791		$	789		$	755		$	781		$	766			—			3		$	2,335		$	2,279			2
Commercial Term Lending		297			286			286			301			256			4			16			869			722			20
Corporate Client Banking (e)		306			339			290			302			304			(10	)		1			935			852			10
Real Estate Banking		104			109			88			117			118			(5	)		(12	)		301			343			(12	)
Other		90			104			97			110			83			(13	)		8			291			233			25

Total Commercial Banking revenue	$	1,588		$	1,627		$	1,516		$	1,611		$	1,527			(2	)		4		$	4,731		$	4,429			7


FINANCIAL RATIOS
ROE		28	%		30	%		28	%		26	%		23	%								29	%		26	%
Overhead ratio		36			35			37			35			37									36			37


(a)		Commercial Banking (“CB”) client revenue from investment banking products and commercial card transactions is included in all other income.

(b)		Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities as well as tax-exempt income from municipal bond activity of $90 million, $67 million, $65 million, $85 million and $59 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $222 million and $153 million for the nine months ended September 30, 2011 and 2010, respectively.

(c)		Effective January 1, 2011, product revenue from commercial card and standby letters of credit transactions is included in lending. For the quarters ending September 30, 2011, June 30, 2011 and March 31, 2011, the impact of the change was $109 million, $114 million and $107 million, respectively, and $330 million for the nine months ended September 30, 2011. In prior-year quarters, it was reported in treasury services.

(d)		Represents the total revenue related to investment banking products sold to CB clients.

(e)		Corporate Client Banking was known as Mid-Corporate Banking prior to January 1, 2011.

Page 23



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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
SELECTED BALANCE SHEET DATA (period-end)
Loans:
Loans retained	$	106,834		$	102,122		$	99,334		$	97,900		$	97,738			5	%		9	%	$	106,834		$	97,738			9	%
Loans held-for-sale and loans at fair value		584			557			835			1,018			399			5			46			584			399			46

Total loans		107,418			102,679			100,169			98,918			98,137			5			9			107,418			98,137			9
Equity		8,000			8,000			8,000			8,000			8,000			—			—			8,000			8,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	145,195		$	143,560		$	140,400		$	138,041		$	130,237			1			11		$	143,069		$	132,176			8
Loans:
Loans retained		104,705			100,857			98,829			97,823			96,657			4			8			101,485			96,166			6
Loans held-for-sale and loans at fair value		632			1,015			756			612			384			(38	)		65			801			358			124

Total loans		105,337			101,872			99,585			98,435			97,041			3			9			102,286			96,524			6
Liability balances		180,275			162,769			156,200			147,534			137,853			11			31			166,503			135,939			22
Equity		8,000			8,000			8,000			8,000			8,000			—			—			8,000			8,000			—

Average loans by client segment:
Middle Market Banking	$	41,540		$	40,012		$	38,207		$	36,561		$	35,299			4			18		$	39,932			34,552			16
Commercial Term Lending		38,198			37,729			37,810			38,358			37,509			1			2			37,914			36,513			4
Corporate Client Banking (a)		14,373			13,062			12,374			11,771			11,807			10			22			13,277			11,978			11
Real Estate Banking		7,465			7,467			7,607			8,169			8,983			—			(17	)		7,512			9,740			(23	)
Other		3,761			3,602			3,587			3,576			3,443			4			9			3,651			3,741			(2	)

Total Commercial Banking loans	$	105,337		$	101,872		$	99,585		$	98,435		$	97,041			3			9		$	102,286		$	96,524			6


Headcount		5,417			5,140			4,941			4,881			4,805			5			13			5,417			4,805			13

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	17		$	40		$	31		$	286		$	218			(58	)		(92	)	$	88		$	623			(86	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (b)		1,417			1,613			1,925			1,964			2,898			(12	)		(51	)		1,417			2,898			(51	)
Nonaccrual loans held-for-sale and loans at fair value		26			21			30			36			48			24			(46	)		26			48			(46	)

Total nonaccrual loans		1,443			1,634			1,955			2,000			2,946			(12	)		(51	)		1,443			2,946			(51	)
Assets acquired in loan satisfactions		168			197			179			197			281			(15	)		(40	)		168			281			(40	)

Total nonperforming assets		1,611			1,831			2,134			2,197			3,227			(12	)		(50	)		1,611			3,227			(50	)
Allowance for credit losses:
Allowance for loan losses		2,671			2,614			2,577			2,552			2,661			2			—			2,671			2,661			—
Allowance for lending-related commitments		181			187			206			209			241			(3	)		(25	)		181			241			(25	)

Total allowance for credit losses		2,852			2,801			2,783			2,761			2,902			2			(2	)		2,852			2,902			(2	)

Net charge-off rate (c)		0.06	%		0.16	%		0.13	%		1.16	%		0.89	%								0.12	%		0.87	%
Allowance for loan losses to period-end loans retained (c)		2.50			2.56			2.59			2.61			2.72									2.50			2.72
Allowance for loan losses to nonaccrual loans retained (b)(c)		188			162			134			130			92									188			92
Nonaccrual loans to total period-end loans		1.34			1.59			1.95			2.02			3.00									1.34			3.00


(a)		Corporate Client Banking was known as Mid-Corporate Banking prior to January 1, 2011.

(b)		Allowance for loan losses of $257 million, $289 million, $360 million, $340 million and $535 million was held against nonaccrual loans retained at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively.

(c)		Loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage ratios and net charge-off rate.

Page 24



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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	310		$	314		$	303		$	314		$	318			(1)	%		(3)	%	$	927		$	942			(2	)%
Asset management, administration and commissions		656			726			695			689			644			(10	)		2			2,077			2,008			3
All other income		141			143			139			209			210			(1	)		(33	)		423			595			(29	)

Noninterest revenue		1,107			1,183			1,137			1,212			1,172			(6	)		(6	)		3,427			3,545			(3	)
Net interest income		801			749			703			701			659			7			22			2,253			1,923			17

TOTAL NET REVENUE		1,908			1,932			1,840			1,913			1,831			(1	)		4			5,680			5,468			4

Provision for credit losses		(20	)		(2	)		4			10			(2	)		NM			NM			(18	)		(57	)		68
Credit allocation income/(expense) (a)		9			32			27			(30	)		(31	)		(72	)		NM			68			(91	)		NM

NONINTEREST EXPENSE
Compensation expense		718			719			715			679			701			—			2			2,152			2,055			5
Noncompensation expense		728			719			647			763			693			1			5			2,094			2,027			3
Amortization of intangibles		24			15			15			28			16			60			50			54			52			4

TOTAL NONINTEREST EXPENSE		1,470			1,453			1,377			1,470			1,410			1			4			4,300			4,134			4


Income before income tax expense		467			513			486			403			392			(9	)		19			1,466			1,300			13
Income tax expense		162			180			170			146			141			(10	)		15			512			478			7

NET INCOME	$	305		$	333		$	316		$	257		$	251			(8	)		22		$	954		$	822			16


REVENUE BY BUSINESS
Treasury Services	$	969		$	930		$	891		$	953		$	937			4			3		$	2,790		$	2,745			2
Worldwide Securities Services		939			1,002			949			960			894			(6	)		5			2,890			2,723			6

TOTAL NET REVENUE	$	1,908		$	1,932		$	1,840		$	1,913		$	1,831			(1	)		4		$	5,680		$	5,468			4


REVENUE BY GEOGRAPHIC REGION (b)
Asia/Pacific	$	321		$	299		$	276		$	270		$	256			7			25		$	896		$	708			27
Latin America/Caribbean		61			80			76			91			50			(24	)		22			217			166			31
Europe/Middle East/Africa		648			691			630			624			579			(6	)		12			1,969			1,765			12
North America		878			862			858			928			946			2			(7	)		2,598			2,829			(8	)

TOTAL NET REVENUE	$	1,908		$	1,932		$	1,840		$	1,913		$	1,831			(1	)		4		$	5,680		$	5,468			4


FINANCIAL RATIOS
ROE		17	%		19	%		18	%		16	%		15	%								18	%		17	%
Overhead ratio		77			75			75			77			77									76			76
Pretax margin ratio		24			27			26			21			21									26			24

SELECTED BALANCE SHEET DATA (period-end)
Loans (c)	$	36,389		$	34,034		$	31,020		$	27,168		$	26,899			7			35		$	36,389		$	26,899			35
Equity		7,000			7,000			7,000			6,500			6,500			—			8			7,000			6,500			8

TRADE FINANCE LOANS BY GEOGRAPHIC REGION (period-end) (b)
Asia/Pacific	$	16,918		$	15,736		$	14,607		$	11,834		$	10,238			8			65		$	16,918		$	10,238			65
Latin America/Caribbean		5,228			4,553			4,014			3,628			3,357			15			56			5,228			3,357			56
Europe/Middle East/Africa		6,853			6,184			5,794			4,874			3,391			11			102			6,853			3,391			102
North America		1,105			1,000			1,084			820			820			11			35			1,105			820			35

TOTAL TRADE FINANCE LOANS	$	30,104		$	27,473		$	25,499		$	21,156		$	17,806			10			69		$	30,104		$	17,806			69


SELECTED BALANCE SHEET DATA (average)
Total assets	$	60,141		$	52,688		$	47,873		$	46,301		$	42,445			14			42		$	53,612		$	41,211			30
Loans (c)		35,303			33,069			29,290			26,941			24,337			7			45			32,576			22,035			48
Liability balances		341,107			302,858			265,720			256,661			242,517			13			41			303,504			245,684			24
Equity		7,000			7,000			7,000			6,500			6,500			—			8			7,000			6,500			8
Headcount		28,157			28,230			28,040			29,073			28,544			—			(1	)		28,157			28,544			(1	)


(a)		IB manages traditional credit exposures related to GCB on behalf of IB and TSS. Effective January 1, 2011, IB and TSS share the economics related to the Firm’s GCB clients. Included within this allocation are net revenues, provision for credit losses, as well as expenses. The prior-year periods reflected a reimbursement to IB for a portion of the total costs of managing the credit portfolio. IB recognizes this credit allocation as a component of all other income.

(b)		Revenue and trade finance loans are based on TSS management’s view of the domicile of clients.

(c)		Loan balances include trade finance loans, wholesale overdrafts and commercial card. Effective January 1, 2011, the commercial card loan business (of approximately $1.2 billion) that was previously in TSS was transferred to Card. There is no material impact on the financial data; prior-year periods were not revised.

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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, Consumer & Business Banking and Asset Management (“AM”) lines of business and excludes FX revenue recorded in 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 of TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
TSS FIRMWIDE DISCLOSURES
TS revenue — reported	$	969		$	930		$	891		$	953		$	937			4	%		3	%	$	2,790		$	2,745			2	%
TS revenue reported in CB (a)		572			556			542			659			670			3			(15	)		1,670			1,973			(15	)
TS revenue reported in other lines of business		68			65			63			65			64			5			6			196			182			8

TS firmwide revenue (b)		1,609			1,551			1,496			1,677			1,671			4			(4	)		4,656			4,900			(5	)
Worldwide Securities Services revenue		939			1,002			949			960			894			(6	)		5			2,890			2,723			6

TSS firmwide revenue (b)	$	2,548		$	2,553		$	2,445		$	2,637		$	2,565			—			(1	)	$	7,546		$	7,623			(1	)


TS firmwide liability balances (average) (c)	$	414,485		$	375,432		$	339,240		$	320,745		$	302,921			10			37		$	376,661		$	303,742			24
TSS firmwide liability balances (average) (c)		521,383			465,627			421,920			404,195			380,370			12			37			470,008			381,623			23
TSS FIRMWIDE FINANCIAL RATIOS
TS firmwide overhead ratio (a)(d)		56	%		59	%		56	%		54	%		55	%								57	%		55	%
TSS firmwide overhead ratio (a)(d)		67			67			67			66			65									67			65

FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)	$	16,250		$	16,945		$	16,619		$	16,120		$	15,863			(4	)		2		$	16,250		$	15,863			2

Number of:
U.S.$ ACH transactions originated		972			959			992			995			978			1			(1	)		2,923			2,897			1
Total U.S.$ clearing volume (in thousands)		33,117			32,274			30,971			32,144			30,779			3			8			96,362			89,979			7
International electronic funds transfer volume (in thousands) (e)		62,718			63,208			60,942			60,882			57,333			(1	)		9			186,868			171,571			9
Wholesale check volume		601			608			532			525			531			(1	)		13			1,741			1,535			13
Wholesale cards issued (in thousands) (f)		24,288			23,746			23,170			29,785			28,404			2			(14	)		24,288			28,404			(14	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	—		$	—		$	—		$	—		$	1			—			NM		$	—		$	1			NM
Nonaccrual loans		3			3			11			12			14			—			(79	)		3			14			(79	)
Allowance for credit losses:
Allowance for loan losses		49			74			69			65			54			(34	)		(9	)		49			54			(9	)
Allowance for lending-related commitments		46			41			48			51			52			12			(12	)		46			52			(12	)

Total allowance for credit losses		95			115			117			116			106			(17	)		(10	)		95			106			(10	)

Net charge-off rate		—	%		—	%		—	%		—	%		0.02	%								—	%		0.01	%
Allowance for loan losses to period-end loans		0.14			0.22			0.22			0.24			0.20									0.14			0.20
Allowance for loan losses to nonaccrual loans		NM			NM			NM			NM			386									NM			386
Nonaccrual loans to period-end loans		0.01			0.01			0.04			0.04			0.05									0.01			0.05


(a)		Effective January 1, 2011, certain CB revenues were excluded in the TS firmwide metrics; they are instead directly captured within CB’s lending revenue by product. For the three months ended September 30, 2011, June 30, 2011 and March 31, 2011, the impact of this change was $109 million, $114 million and $107 million, respectively, and $330 million for the nine months ended September 30, 2011. In prior-year periods, these revenues were included in CB’s treasury services revenue by product.

(b)		TSS firmwide revenue includes foreign exchange (“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. The total FX revenue generated was $179 million, $165 million, $160 million, $181 million and $143 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $504 million and $455 million for the nine months ended September 30, 2011 and 2010, respectively.

(c)		Firmwide liability balances include liability balances recorded in CB.

(d)		Overhead ratios have been calculated based on 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.

(e)		International electronic funds transfer includes non-U.S. dollar Automated Clearing House (“ACH”) and clearing volume.

(f)		Wholesale cards issued and outstanding include U.S. domestic commercial, stored value, prepaid and government electronic benefit card products. Effective January 1, 2011, the commercial card portfolio was transferred from TSS to Card.

Page 26



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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,617		$	1,818		$	1,707		$	1,846		$	1,498			(11)	%		8	%	$	5,142		$	4,528			14	%
All other income		281			321			313			386			282			(12	)		—			915			725			26

Noninterest revenue		1,898			2,139			2,020			2,232			1,780			(11	)		7			6,057			5,253			15
Net interest income		418			398			386			381			392			5			7			1,202			1,118			8

TOTAL NET REVENUE		2,316			2,537			2,406			2,613			2,172			(9	)		7			7,259			6,371			14

Provision for credit losses		26			12			5			23			23			117			13			43			63			(32	)

NONINTEREST EXPENSE
Compensation expense		999			1,068			1,039			1,078			914			(6	)		9			3,106			2,685			16
Noncompensation expense		775			704			599			679			557			10			39			2,078			1,598			30
Amortization of intangibles		22			22			22			20			17			—			29			66			52			27

TOTAL NONINTEREST EXPENSE		1,796			1,794			1,660			1,777			1,488			—			21			5,250			4,335			21


Income before income tax expense		494			731			741			813			661			(32	)		(25	)		1,966			1,973			—
Income tax expense		109			292			275			306			241			(63	)		(55	)		676			770			(12	)

NET INCOME	$	385		$	439		$	466		$	507		$	420			(12	)		(8	)	$	1,290		$	1,203			7


REVENUE BY CLIENT SEGMENT
Private Banking	$	1,298		$	1,289		$	1,317		$	1,376		$	1,181			1			10		$	3,904		$	3,484			12
Institutional		455			704			549			675			506			(35	)		(10	)		1,708			1,505			13
Retail		563			544			540			562			485			3			16			1,647			1,382			19

TOTAL NET REVENUE	$	2,316		$	2,537		$	2,406		$	2,613		$	2,172			(9	)		7		$	7,259		$	6,371			14


FINANCIAL RATIOS
ROE		24	%		27	%		29	%		31	%		26	%								27	%		25	%
Overhead ratio		78			71			69			68			69									72			68
Pretax margin ratio		21			29			31			31			30									27			31

SELECTED BALANCE SHEET DATA (period-end)
Loans	$	54,178		$	51,747		$	46,454		$	44,084		$	41,408			5			31		$	54,178		$	41,408			31
Equity		6,500			6,500			6,500			6,500			6,500			—			—			6,500			6,500			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	78,669		$	74,206		$	68,918		$	69,290		$	64,911			6			21		$	73,967		$	63,629			16
Loans		52,652			48,837			44,948			42,296			39,417			8			34			48,840			37,819			29
Deposits		111,090			97,509			95,250			89,314			87,841			14			26			101,341			85,012			19
Equity		6,500			6,500			6,500			6,500			6,500			—			—			6,500			6,500			—
Headcount		18,084			17,963			17,203			16,918			16,510			1			10			18,084			16,510			10

Page 27



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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
BUSINESS METRICS
Number of:
Client advisors (a)		2,418			2,282			2,288			2,281			2,244			6	%		8	%		2,418			2,244			8	%
Retirement planning services participants (in thousands)		1,755			1,613			1,604			1,580			1,665			9			5			1,755			1,665			5
JPMorgan Securities brokers (a)		446			437			431			415			419			2			6			446			419			6
% of customer assets in 4 & 5 Star Funds (b)		47	%		50	%		46	%		49	%		42	%		(6	)		12			47	%		42	%		12
% of AUM in 1^stand 2^nd quartiles: (c)
1 year		49			56			57			67			67			(13	)		(27	)		49			67			(27	)
3 years		73			71			70			72			65			3			12			73			65			12
5 years		77			76			77			80			74			1			4			77			74			4

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	—		$	33		$	11		$	8		$	13		NM			NM			$	44		$	68			(35	)
Nonaccrual loans		311			252			254			375			294			23			6			311			294			6
Allowance for credit losses:
Allowance for loan losses		240			222			257			267			257			8			(7	)		240			257			(7	)
Allowance for lending-related commitments		9			9			4			4			3			—			200			9			3			200

Total allowance for credit losses		249			231			261			271			260			8			(4	)		249			260			(4	)
Net charge-off rate		—	%		0.27	%		0.10	%		0.08	%		0.13	%								0.12	%		0.24	%
Allowance for loan losses to period-end loans		0.44			0.43			0.55			0.61			0.62									0.44			0.62
Allowance for loan losses to nonaccrual loans		77			88			101			71			87									77			87
Nonaccrual loans to period-end loans		0.57			0.49			0.55			0.85			0.71									0.57			0.71


(a)		Effective January 1, 2011, the methodology used to determine client advisors was revised, and the prior-year periods have been revised.

(b)		Derived from Morningstar for the U.S., the U.K., Luxembourg, France, Hong Kong and Taiwan; and Nomura for Japan.

(c)		Quartile ranking sourced from: Lipper for the U.S. and Taiwan; Morningstar for the U.K., Luxembourg, France and Hong Kong; and Nomura for Japan.

Page 28


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


											September 30, 2011
											Change
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30			Sep 30
	2011		2011		2011		2010		2010		2011			2010
ASSETS UNDER SUPERVISION (a)
Assets by asset class
Liquidity	$	464	$	476	$	490	$	497	$	521		(3)	%		(11	)%
Fixed income		321		319		305		289		277		1			16
Equities and multi-asset		356		430		421		404		362		(17	)		(2	)
Alternatives		113		117		114		108		97		(3	)		16

TOTAL ASSETS UNDER MANAGEMENT		1,254		1,342		1,330		1,298		1,257		(7	)		—
Custody/brokerage/administration/deposits		552		582		578		542		513		(5	)		8

TOTAL ASSETS UNDER SUPERVISION	$	1,806	$	1,924	$	1,908	$	1,840	$	1,770		(6	)		2


Assets by client segment
Private Banking	$	276	$	291	$	293	$	284	$	276		(5	)		—
Institutional (b)		673		708		711		703		696		(5	)		(3	)
Retail (b)		305		343		326		311		285		(11	)		7

TOTAL ASSETS UNDER MANAGEMENT	$	1,254	$	1,342	$	1,330	$	1,298	$	1,257		(7	)		—


Private Banking	$	738	$	776	$	773	$	731	$	698		(5	)		6
Institutional (b)		674		709		713		703		697		(5	)		(3	)
Retail (b)		394		439		422		406		375		(10	)		5

TOTAL ASSETS UNDER SUPERVISION	$	1,806	$	1,924	$	1,908	$	1,840	$	1,770		(6	)		2


Mutual fund assets by asset class
Liquidity	$	409	$	421	$	436	$	446	$	466		(3	)		(12	)
Fixed income		101		105		99		92		88		(4	)		15
Equities and multi-asset		139		176		173		169		151		(21	)		(8	)
Alternatives		8		9		8		7		7		(11	)		14

TOTAL MUTUAL FUND ASSETS	$	657	$	711	$	716	$	714	$	712		(8	)		(8	)


(a)		Excludes assets under management of American Century Companies, Inc. in which the Firm sold its ownership interest on August 31, 2011. The Firm previously had an ownership interest of 40% at June 30, 2011 and March 31, 2011 and 41% at December 31, 2010 and September 30, 2010.

(b)		In the second quarter of 2011, the client hierarchy used to determine asset classification was revised, and the prior-year periods have been revised.

Page 29


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


																NINE MONTHS ENDED
																SEPTEMBER 30,
	3Q11			2Q11			1Q11			4Q10			3Q10			2011			2010
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,342		$	1,330		$	1,298		$	1,257		$	1,161		$	1,298		$	1,249
Net asset flows:
Liquidity		(10	)		(16	)		(9	)		(25	)		27			(35	)		(64	)
Fixed income		3			12			16			10			12			31			40
Equities, multi-asset and alternatives		(1	)		7			11			13			(1	)		17			6
Market/performance/other impacts		(80	)		9			14			43			58			(57	)		26

Ending balance	$	1,254		$	1,342		$	1,330		$	1,298		$	1,257		$	1,254		$	1,257

Assets under supervision rollforward
Beginning balance	$	1,924		$	1,908		$	1,840		$	1,770		$	1,640		$	1,840		$	1,701
Net asset flows		11			12			31			1			41			54			27
Market/performance/other impacts		(129	)		4			37			69			89			(88	)		42

Ending balance	$	1,806		$	1,924		$	1,908		$	1,840		$	1,770		$	1,806		$	1,770

Page 30


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


	QUARTERLY TRENDS																NINE MONTHS ENDED SEPTEMBER 30,
											3Q11 Change										2011 Change
	3Q11		2Q11		1Q11		4Q10		3Q10		2Q11			3Q10			2011		2010		2010
INTERNATIONAL METRICS
Total net revenue: (in millions) (a)
Asia/Pacific	$	248	$	257	$	246	$	263	$	226		(4)	%		10	%	$	751	$	662		13	%
Latin America/Caribbean		168		251		165		168		125		(33	)		34			584		373		57
Europe/Middle East/Africa		395		478		439		481		395		(17	)		—			1,312		1,161		13
North America		1,505		1,551		1,556		1,701		1,426		(3	)		6			4,612		4,175		10

Total net revenue	$	2,316	$	2,537	$	2,406	$	2,613	$	2,172		(9	)		7		$	7,259	$	6,371		14

Assets under management:
Asia/Pacific	$	104	$	119	$	115	$	111	$	107		(13	)		(3	)	$	104	$	107		(3	)
Latin America/Caribbean		32		37		35		35		27		(14	)		19			32		27		19
Europe/Middle East/Africa		255		298		300		282		258		(14	)		(1	)		255		258		(1	)
North America		863		888		880		870		865		(3	)		—			863		865		—

Total assets under management	$	1,254	$	1,342	$	1,330	$	1,298	$	1,257		(7	)		—		$	1,254	$	1,257		—

Assets under supervision:
Asia/Pacific	$	140	$	161	$	155	$	147	$	139		(13	)		1		$	140	$	139		1
Latin America/Caribbean		87		94		88		84		74		(7	)		18			87		74		18
Europe/Middle East/Africa		306		353		353		331		307		(13	)		—			306		307		—
North America		1,273		1,316		1,312		1,278		1,250		(3	)		2			1,273		1,250		2

Total assets under supervision	$	1,806	$	1,924	$	1,908	$	1,840	$	1,770		(6	)		2		$	1,806	$	1,770		2


(a)		Regional revenue is based on the domicile of clients.

Page 31


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
INCOME STATEMENT
REVENUE
Principal transactions	$	(933	)	$	745		$	1,298		$	587		$	1,143			NM	%		NM	%	$	1,110		$	1,621			(32	)%
Securities gains		607			837			102			1,199			99			(27	)		NM			1,546			1,699			(9	)
All other income		186			265			78			(24	)		(29	)		(30	)		NM			529			277			91

Noninterest revenue		(140	)		1,847			1,478			1,762			1,213			NM			NM			3,185			3,597			(11	)
Net interest income		8			218			34			(131	)		371			(96	)		(98	)		260			2,194			(88	)

TOTAL NET REVENUE (a)		(132	)		2,065			1,512			1,631			1,584			NM			NM			3,445			5,791			(41	)

Provision for credit losses		(7	)		(9	)		(10	)		2			(3	)		22			(133	)		(26	)		12			NM

NONINTEREST EXPENSE
Compensation expense		552			614			657			538			574			(10	)		(4	)		1,823			1,819			—
Noncompensation expense (b)		1,995			2,097			1,143			2,352			1,927			(5	)		4			5,235			6,436			(19	)

Subtotal		2,547			2,711			1,800			2,890			2,501			(6	)		2			7,058			8,255			(15	)
Net expense allocated to other businesses		(1,331	)		(1,270	)		(1,238	)		(1,191	)		(1,227	)		(5	)		(8	)		(3,839	)		(3,599	)		(7	)

TOTAL NONINTEREST EXPENSE		1,216			1,441			562			1,699			1,274			(16	)		(5	)		3,219			4,656			(31	)


Income/(loss) before income tax expense/(benefit)		(1,341	)		633			960			(70	)		313			NM			NM			252			1,123			(78	)
Income tax expense/(benefit) (c)		(696	)		131			238			(99	)		(35	)		NM			NM			(327	)		(106	)		(208	)

NET INCOME/(LOSS)	$	(645	)	$	502		$	722		$	29		$	348			NM			NM		$	579		$	1,229			(53	)


MEMO:
TOTAL NET REVENUE
Private equity	$	(546	)	$	796		$	699		$	355		$	721			NM			NM		$	949		$	884			7
Corporate		414			1,269			813			1,276			863			(67	)		(52	)		2,496			4,907			(49	)

TOTAL NET REVENUE	$	(132	)	$	2,065		$	1,512		$	1,631		$	1,584			NM			NM		$	3,445		$	5,791			(41	)


NET INCOME/(LOSS)
Private equity	$	(347	)	$	444		$	383		$	178		$	344			NM			NM		$	480		$	410			17
Corporate		(298	)		58			339			(149	)		4			NM			NM			99			819			(88	)

TOTAL NET INCOME/(LOSS)	$	(645	)	$	502		$	722		$	29		$	348			NM			NM		$	579		$	1,229			(53	)

Headcount		21,844			21,444			20,927			20,030			19,756			2			11			21,844			19,756			11


(a)		Total net revenue included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $73 million, $69 million, $64 million, $63 million and $58 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $206 million and $163 million for the nine months ended September 30, 2011 and 2010, respectively,

(b)		Includes litigation expense of $1.0 billion, $1.3 billion, $0.4 billion, $1.5 billion and $1.3 billion for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $2.6 billion and $4.3 billion for the nine months ended September 30, 2011 and 2010, respectively.

(c)		Income tax expense/(benefit) in the third quarter of 2010 includes tax benefits recognized upon the resolution of tax audits.

Page 32


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


	QUARTERLY TRENDS																			NINE MONTHS ENDED SEPTEMBER 30,
														3Q11 Change											2011 Change
	3Q11			2Q11			1Q11		4Q10			3Q10		2Q11			3Q10			2011			2010		2010
SUPPLEMENTAL INFORMATION
TREASURY and CHIEF INVESTMENT OFFICE (“CIO”)
Securities gains (a)	$	459		$	837		$	102	$	1,199		$	99		(45)	%		364	%	$	1,398		$	1,698		(18)	%
Investment securities portfolio (average)		324,596			335,543			313,319		322,218			321,428		(3	)		1			324,527			324,163		—
Investment securities portfolio (ending)		330,800			318,237			328,013		310,801			334,140		4			(1	)		330,800			334,140		(1	)
Mortgage loans (average)		13,748			12,731			11,418		10,117			9,174		8			50			12,641			8,629		46
Mortgage loans (ending)		14,226			13,243			12,171		10,739			9,550		7			49			14,226			9,550		49

PRIVATE EQUITY
Private equity gains/(losses)
Direct investments
Realized gains	$	394		$	1,219		$	171	$	1,039		$	179		(68	)		120		$	1,784		$	370		382
Unrealized gains/(losses) (b)		(827	)		(726	)		370		(781	)		561		(14	)	NM				(1,183	)		479	NM

Total direct investments		(433	)		493			541		258			740	NM			NM				601			849		(29	)
Third-party fund investments		(7	)		323			186		129			10	NM			NM				502			112		348

Total private equity gains/(losses) (c)	$	(440	)	$	816		$	727	$	387		$	750	NM			NM			$	1,103		$	961		15


Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	709		$	670		$	731	$	875		$	1,152		6			(38	)
Cost		779			595			649		732			985		31			(21	)
Quoted public value		778			721			785		935			1,249		8			(38	)
Privately-held direct securities
Carrying value		4,322			5,680			7,212		5,882			6,388		(24	)		(32	)
Cost		6,556			6,891			7,731		6,887			6,646		(5	)		(1	)
Third-party fund investments (d)
Carrying value		2,399			2,481			2,179		1,980			1,814		(3	)		32
Cost		2,454			2,464			2,461		2,404			2,356		—			4

Total private equity portfolio
Carrying value	$	7,430		$	8,831		$	10,122	$	8,737		$	9,354		(16	)		(21	)
Cost		9,789			9,950			10,841		10,023			9,987		(2	)		(2	)


(a)		Reflects repositioning of the Corporate investment securities portfolio.

(b)		Unrealized gains/(losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.

(c)		Included in principal transactions revenue in the Consolidated Statements of Income.

(d)		Unfunded commitments to third-party private equity funds were $853 million, $876 million, $943 million, $1.0 billion and $1.1 billion at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively.

Page 33


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


											September 30, 2011
											Change
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30			Sep 30
	2011		2011		2011		2010		2010		2011			2010
CREDIT EXPOSURE
Wholesale
Loans retained	$	255,799	$	244,224	$	229,648	$	222,510	$	217,582		5	%		18	%
Loans held-for-sale and loans at fair value		3,684		4,599		6,359		5,123		3,015		(20	)		22

Total wholesale loans (a)(b)		259,483		248,823		236,007		227,633		220,597		4			18

Consumer, excluding credit card
Loans, excluding PCI loans and held-for sale loans
Home equity		80,278		82,751		85,253		88,385		91,728		(3	)		(12	)
Prime mortgage, including option ARMs		74,230		74,276		74,682		74,539		74,205		—			—
Subprime mortgage		10,045		10,441		10,841		11,287		12,009		(4	)		(16	)
Auto		46,659		46,796		47,411		48,367		48,186		—			(3	)
Business banking		17,272		17,141		16,957		16,812		16,568		1			4
Student and other		14,492		14,770		15,089		15,311		15,583		(2	)		(7	)

Total loans, excluding PCI loans and loans held-for-sale		242,976		246,175		250,233		254,701		258,279		(1	)		(6	)
Loans — PCI: (c)
Home equity		23,105		23,535		23,973		24,459		24,982		(2	)		(8	)
Prime mortgage		15,626		16,200		16,725		17,322		17,904		(4	)		(13	)
Subprime mortgage		5,072		5,187		5,276		5,398		5,496		(2	)		(8	)
Option ARMs		23,325		24,072		24,791		25,584		26,370		(3	)		(12	)

Total loans — PCI		67,128		68,994		70,765		72,763		74,752		(3	)		(10	)
Total loans — retained		310,104		315,169		320,998		327,464		333,031		(2	)		(7	)
Loans held-for-sale (d)		131		221		188		154		467		(41	)		(72	)

Total consumer, excluding credit card loans		310,235		315,390		321,186		327,618		333,498		(2	)		(7	)


Credit card
Loans retained		127,041		125,523		124,791		135,524		136,436		1			(7	)
Loans held-for-sale		94		—		4,012		2,152		—	NM			NM

Total credit card (b)		127,135		125,523		128,803		137,676		136,436		1			(7	)

Total consumer loans (e)		437,370		440,913		449,989		465,294		469,934		(1	)		(7	)

Total loans		696,853		689,736		685,996		692,927		690,531		1			1

Derivative receivables		108,853		77,383		78,744		80,481		97,293		41			12
Receivables from customers and interests in purchased receivables (f)		25,719		32,678		38,230		32,932		26,025		(21	)		(1	)

Total credit-related assets		134,572		110,061		116,974		113,413		123,318		22			9
Wholesale lending-related commitments		379,682		365,689		355,561		346,079		338,612		4			12

Total	$	1,211,107	$	1,165,486	$	1,158,531	$	1,152,419	$	1,152,461		4			5

Memo: Total by category
Total wholesale exposure (g)	$	773,633	$	724,573	$	708,542	$	687,125	$	682,527		7			13
Total consumer loans (h)		437,474		440,913		449,989		465,294		469,934		(1	)		(7	)

Total	$	1,211,107	$	1,165,486	$	1,158,531	$	1,152,419	$	1,152,461		4			5


(a)		Includes IB, CB, TSS, AM and Corporate/Private Equity.

(b)		Effective January 1, 2011, the commercial card business that was previously in TSS was transferred to Card. There is no material impact on the financial data; prior-year periods were not revised.

(c)		PCI 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 lives of the underlying loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due.

(d)		Included prime mortgages of $131 million, $221 million, $188 million, $154 million and $428 million at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and student loans of $39 million at September 30, 2010.

(e)		Includes RFS, Card and residential real estate loans reported in Corporate/Private Equity.

(f)		Receivables from customers represent primarily 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, wholesale lending-related commitments, derivative receivables and receivables from customers.

(h)		Represents total consumer loans and excludes consumer lending-related commitments.

Page 34


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


																September 30, 2011
																Change
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30
	2011			2011			2011			2010			2010			2011			2010
NONPERFORMING ASSETS AND RATIOS
Wholesale
Loans retained	$	3,011		$	3,362		$	4,578		$	5,510		$	5,231			(10)	%		(42	)%
Loans held-for-sale and loans at fair value		176			214			289			496			409			(18	)		(57	)

Total wholesale loans		3,187			3,576			4,867			6,006			5,640			(11	)		(43	)

Consumer, excluding credit card
Home equity		1,290			1,308			1,263			1,263			1,251			(1	)		3
Prime mortgage, including option ARMs		3,656			4,024			4,166			4,320			4,857			(9	)		(25	)
Subprime mortgage		1,932			2,058			2,106			2,210			2,649			(6	)		(27	)
Auto		114			111			120			141			145			3			(21	)
Business banking		756			770			810			832			895			(2	)		(16	)
Student and other		68			79			107			67			64			(14	)		6

Total consumer, excluding credit card		7,816			8,350			8,572			8,833			9,861			(6	)		(21	)

Total credit card		2			2			2			2			2			—			—


Total consumer nonaccrual loans (a)(b)		7,818			8,352			8,574			8,835			9,863			(6	)		(21	)


Total nonaccrual loans		11,005			11,928			13,441			14,841			15,503			(8	)		(29	)


Derivative receivables		11			22			21			34			255			(50	)		(96	)
Assets acquired in loan satisfactions		1,178			1,290			1,524			1,682			1,898			(9	)		(38	)

Total nonperforming assets (a)		12,194			13,240			14,986			16,557			17,656			(8	)		(31	)
Wholesale lending-related commitments (c)		705			793			895			1,005			1,344			(11	)		(48	)

Total (a)	$	12,899		$	14,033		$	15,881		$	17,562		$	19,000			(8	)		(32	)


Total nonaccrual loans to total loans		1.58	%		1.73	%		1.96	%		2.14	%		2.25	%
Total wholesale nonaccrual loans to total wholesale loans		1.23			1.44			2.06			2.64			2.56
Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans		2.52			2.65			2.67			2.70			2.96
NONPERFORMING ASSETS BY LOB
Investment Bank	$	1,508		$	1,788		$	2,741		$	3,770		$	2,789			(16	)		(46	)
Retail Financial Services (b)		8,444			9,033			9,482			9,854			10,989			(7	)		(23	)
Card Services & Auto		232			233			275			269			268			—			(13	)
Commercial Banking		1,611			1,831			2,134			2,197			3,227			(12	)		(50	)
Treasury & Securities Services		3			3			11			12			14			—			(79	)
Asset Management		322			264			263			382			299			22			8
Corporate/Private Equity (d)		74			88			80			73			70			(16	)		6

TOTAL	$	12,194		$	13,240		$	14,986		$	16,557		$	17,656			(8	)		(31	)


(a)		At September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.5 billion, $9.1 billion, $8.8 billion, $9.4 billion and $9.2 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.4 billion, $2.3 billion, $1.9 billion and $1.7 billion, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $567 million, $558 million, $615 million, $625 million and $572 million, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). 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 about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

(b)		Excludes PCI loans acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing. Also excludes loans held-for-sale and loans at fair value.

(c)		The amounts in nonperforming represent unfunded commitments that are risk rated as nonaccrual.

(d)		Predominantly relates to retained prime mortgage loans.

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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
GROSS CHARGE-OFFS
Wholesale loans	$	98		$	134		$	253		$	414		$	297			(27)	%		(67)	%	$	485		$	1,575			(69	)%
Consumer loans, excluding credit card		1,292			1,357			1,460			2,277			1,677			(5	)		(23	)		4,109			6,106			(33	)
Credit card loans		1,765			2,131			2,631			2,980			3,485			(17	)		(49	)		6,527			12,430			(47	)

Total loans	$	3,155		$	3,622		$	4,344		$	5,671		$	5,459			(13	)		(42	)	$	11,121		$	20,111			(45	)


GROSS RECOVERIES
Wholesale loans	$	249		$	54		$	88		$	143		$	31			361		NM			$	391		$	119			229
Consumer loans, excluding credit card		133			144			131			115			131			(8	)		2			408			359			14
Credit card loans		266			321			405			309			352			(17	)		(24	)		992			1,064			(7	)

Total loans	$	648		$	519		$	624		$	567		$	514			25			26		$	1,791		$	1,542			16


NET CHARGE-OFFS/(RECOVERIES)
Wholesale loans	$	(151	)	$	80		$	165		$	271		$	266		NM			NM			$	94		$	1,456			(94	)
Consumer loans, excluding credit card		1,159			1,213			1,329			2,162	(b)		1,546			(4	)		(25	)		3,701			5,747			(36	)
Credit card loans		1,499			1,810			2,226			2,671			3,133			(17	)		(52	)		5,535			11,366			(51	)

Total loans	$	2,507		$	3,103		$	3,720		$	5,104	(b)	$	4,945			(19	)		(49	)	$	9,330		$	18,569			(50	)


NET CHARGE-OFF RATES
Wholesale retained loans		(0.24)	%		0.14	%		0.30	%		0.49	%		0.49	%								0.05	%		0.92	%
Consumer retained loans, excluding credit card		1.47			1.53			1.66			2.60	(b)		1.83									1.56			2.24
Credit card retained loans		4.70			5.82			6.97			7.85			8.87									5.83			10.31
Total retained loans		1.44			1.83			2.22			2.95	(b)		2.84									1.83			3.53
Consumer retained loans, excluding credit card and
PCI loans (a)		1.88			1.96			2.14			3.34	(b)		2.36									1.99			2.89
Consumer retained loans, excluding PCI loans (a)		2.84			3.25			3.77			4.89			4.64									3.29			5.54
Total retained loans, excluding PCI loans (a)		1.60			2.04			2.48			3.31	(b)		3.19									2.03			3.98

Memo: Average Retained Loans
Wholesale loans	$	250,145		$	237,511		$	226,544		$	219,750		$	213,979			5			17		$	238,153		$	211,540			13
Consumer retained loans, excluding credit card		312,341			317,862			323,961			330,524			336,078			(2	)		(7	)		318,012			343,639			(7	)
Credit card retained loans		126,535			124,762			129,535			134,999			140,059			1			(10	)		126,933			147,326			(14	)

Total average retained loans	$	689,021		$	680,135		$	680,040		$	685,273		$	690,116			1			—		$	683,098		$	702,505			(3	)


Consumer retained loans, excluding credit card and PCI loans (a)	$	244,337		$	248,028		$	252,403		$	256,884		$	260,394			(1	)		(6	)	$	248,226		$	265,678			(7	)
Consumer retained loans, excluding PCI loans (a)		370,872			372,790			381,938			391,883			400,453			(1	)		(7	)		375,159			413,004			(9	)
Total retained loans, excluding PCI loans (a)		620,974			610,246			608,432			611,572			614,346			2			1			613,263			624,442			(2	)


(a)		Charge-offs are not recorded on PCI loans until actual losses exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. To date, no charge-offs have been recorded for these loans.

(b)		Net charge-offs and net charge-off rates for the fourth quarter of 2010 include the effect of $632 million of charge-offs related to an adjustment of the estimated net realizable value of the collateral underlying delinquent residential home loans. Excluding this adjustment, net charge-offs for the fourth quarter of 2010 were $1.5 billion for total consumer, excluding credit card loans, and $4.5 billion for total loans. Net charge-off rates excluding this adjustment were 1.84% for total consumer, excluding credit card, 2.59% for total retained loans, 2.36% for total consumer, excluding credit card and PCI loans, and 2.90% for total retained loans, excluding PCI loans.

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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	28,520		$	29,750		$	32,266		$	34,161		$	35,836			(4)	%		(20)	%	$	32,266		$	31,602			2	%
Cumulative effect of change in accounting principles (a)		—			—			—			—			—			—			—			—			7,494		NM
Net charge-offs		2,507			3,103			3,720			5,104			4,945			(19	)		(49	)		9,330			18,569			(50	)
Provision for loan losses		2,351			1,872			1,196			3,207			3,244			26			(28	)		5,419			13,615			(60	)
Other		(14	)		1			8			2			26		NM			NM				(5	)		19		NM

Ending balance	$	28,350		$	28,520		$	29,750		$	32,266		$	34,161			(1	)		(17	)	$	28,350		$	34,161			(17	)


ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	626		$	688		$	717		$	873		$	912			(9	)		(31	)	$	717		$	939			(24	)
Cumulative effect of change in accounting principles (a)		—			—			—			—			—			—			—			—			(18	)	NM
Provision for lending-related commitments		60			(62	)		(27	)		(164	)		(21	)	NM			NM				(29	)		(19	)		(53	)
Other		—			—			(2	)		8			(18	)		—		NM				(2	)		(29	)		93

Ending balance	$	686		$	626		$	688		$	717		$	873			10			(21	)	$	686		$	873			(21	)


ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank (a)	$	1,337		$	1,178		$	1,330		$	1,863		$	1,976			13			(32	)
Retail Financial Services (a)		15,479			15,479			15,554			15,554			15,106			—			2
Card Services & Auto (a)		8,537			8,921			9,940			11,933			14,077			(4	)		(39	)
Commercial Banking		2,671			2,614			2,577			2,552			2,661			2			—
Treasury & Securities Services		49			74			69			65			54			(34	)		(9	)
Asset Management		240			222			257			267			257			8			(7	)
Corporate/Private Equity		37			32			23			32			30			16			23

Total	$	28,350		$	28,520		$	29,750		$	32,266		$	34,161			(1	)		(17	)


(a)		Effective January 1, 2010, the Firm adopted accounting guidance related to VIEs. Upon the adoption of the guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts, its Firm-administered multi-seller conduits and certain other consumer loan securitization entities, primarily mortgage-related. As a result of the consolidation, $7.5 billion of allowance for loan losses were recorded on balance sheet with the consolidation of these entities.

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


	QUARTERLY TRENDS
																3Q11 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset-specific	$	670		$	749		$	1,030		$	1,574		$	1,246			(11)	%		(46)	%
Formula-based		3,632			3,342			3,204			3,187			3,717			9			(2	)

Total wholesale		4,302			4,091			4,234			4,761			4,963			5			(13	)

Consumer, excluding credit card
Asset-specific (a)		1,016			1,049			1,067			1,075			1,088			(3	)		(7	)
Formula-based		10,563			10,397			10,467			10,455			12,270			2			(14	)
PCI		4,941			4,941			4,941			4,941			2,811			—			76

Total consumer, excluding credit card		16,520			16,387			16,475			16,471			16,169			1			2

Credit card
Asset-specific (b)		3,052			3,451			3,819			4,069			4,573			(12	)		(33	)
Formula-based (b)		4,476			4,591			5,222			6,965			8,456			(3	)		(47	)

Total credit card		7,528			8,042			9,041			11,034			13,029			(6	)		(42	)

Total consumer		24,048			24,429			25,516			27,505			29,198			(2	)		(18	)

Total allowance for loan losses		28,350			28,520			29,750			32,266			34,161			(1	)		(17	)
Allowance for lending-related commitments		686			626			688			717			873			10			(21	)

Total allowance for credit losses	$	29,036		$	29,146		$	30,438		$	32,983		$	35,034			—			(17	)


CREDIT RATIOS
Wholesale allowance to total wholesale retained loans		1.68	%		1.68	%		1.84	%		2.14	%		2.28	%
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		5.33			5.20			5.13			5.03			4.86
Credit card allowance to total credit card retained loans		5.93			6.41			7.24			8.14			9.55
Allowance to total retained loans		4.09			4.16			4.40			4.71			4.97
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (c)		211			196			192			186			164
Allowance, excluding credit card allowance, to retained non- accrual loans, excluding credit card nonaccrual loans (c)		192			175			157			148			140
Allowance to total retained nonaccrual loans		262			243			226			225			226

CREDIT RATIOS, excluding PCI loans (d)
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		4.77			4.65			4.61			4.53			5.17
Allowance to total retained loans		3.74			3.83			4.10			4.46			5.12
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (c)		148			137			135			131			135
Allowance, excluding credit card allowance, to retained non- accrual loans, excluding credit card nonaccrual loans (c)		147			133			120			114			121
Allowance to total retained nonaccrual loans		216			201			189			190			208


(a)		The asset-specific consumer, excluding credit card allowance for loan losses, includes troubled debt restructuring reserves of $930 million, $962 million, $970 million, $985 million and $980 million at September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively.

(b)		At December 31, 2010, the Firm’s allowance for loan losses on all impaired credit card loans was reclassified to the asset-specific allowance. This reclassification had no incremental impact on the Firm’s allowance for loan losses. Prior periods have been revised to reflect the current presentation.

(c)		The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Under guidance issued by the FFIEC, 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 about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

(d)		Excludes the impact of PCI loans that were acquired as part of the Washington Mutual transaction.

Page 38



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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
BY LINE OF BUSINESS
Provision for loan losses
Investment Bank	$	(7	)	$	(142	)	$	(409	)	$	(140	)	$	(158	)		95	%		96	%	$	(558	)	$	(1,053	)		47	%
Retail Financial Services		1,027			994			1,199			2,418			1,397			3			(26	)		3,220			6,501			(50	)
Card Services & Auto		1,264			944			353			710			1,787			34			(29	)		2,561			7,866			(67	)
Commercial Banking		73			73			51			184			192			—			(62	)		197			253			(22	)
Treasury & Securities Services		(25	)		5			7			11			6		NM			NM				(13	)		(33	)		61
Asset Management		26			7			5			22			23			271			13			38			69			(45	)
Corporate/Private Equity		(7	)		(9	)		(10	)		2			(3	)		22			(133	)		(26	)		12		NM

Total provision for loan losses	$	2,351		$	1,872		$	1,196		$	3,207		$	3,244			26			(28	)	$	5,419		$	13,615			(60	)


Provision for lending-related commitments
Investment Bank	$	61		$	(41	)	$	(20	)	$	(131	)	$	16		NM				281		$	—		$	124			NM
Retail Financial Services		—			—			—			—			—			—			—			—			—			—
Card Services & Auto		—			—			—			(1	)		(3	)		—		NM				—			(5	)	NM
Commercial Banking		(6	)		(19	)		(4	)		(32	)		(26	)		68			77			(29	)		(108	)		73
Treasury & Securities Services		5			(7	)		(3	)		(1	)		(8	)	NM			NM				(5	)		(24	)		79
Asset Management		—			5			—			1			—		NM				—			5			(6	)	NM
Corporate/Private Equity		—			—			—			—			—			—			—			—			—			—

Total provision for lending-related commitments	$	60		$	(62	)	$	(27	)	$	(164	)	$	(21	)	NM			NM			$	(29	)	$	(19	)		(53	)


Provision for credit losses
Investment Bank	$	54		$	(183	)	$	(429	)	$	(271	)	$	(142	)	NM			NM			$	(558	)	$	(929	)		40
Retail Financial Services		1,027			994			1,199			2,418			1,397			3			(26	)		3,220			6,501			(50	)
Card Services & Auto		1,264			944			353			709			1,784			34			(29	)		2,561			7,861			(67	)
Commercial Banking		67			54			47			152			166			24			(60	)		168			145			16
Treasury & Securities Services		(20	)		(2	)		4			10			(2	)	NM			NM				(18	)		(57	)		68
Asset Management		26			12			5			23			23			117			13			43			63			(32	)
Corporate/Private Equity		(7	)		(9	)		(10	)		2			(3	)		22			(133	)		(26	)		12		NM

Total provision for credit losses	$	2,411		$	1,810		$	1,169		$	3,043		$	3,223			33			(25	)	$	5,390		$	13,596			(60	)




BY PORTFOLIO SEGMENT
Provision for loan losses
Wholesale	$	67		$	(55	)	$	(359	)	$	77		$	62		NM				8		$	(347	)	$	(750	)		54
Consumer, excluding credit card		1,285			1,117			1,329			2,459			1,549			15			(17	)		3,731			6,999			(47	)
Credit card		999			810			226			671			1,633			23			(39	)		2,035			7,366			(72	)

Total provision for loan losses	$	2,351		$	1,872		$	1,196		$	3,207		$	3,244			26			(28	)	$	5,419		$	13,615			(60	)


Provision for lending-related commitments
Wholesale	$	60		$	(62	)	$	(27	)	$	(163	)	$	(18	)	NM			NM			$	(29	)	$	(14	)		(107	)
Consumer, excluding credit card		—			—			—			(1	)		(3	)		—		NM				—			(5	)	NM
Credit card		—			—			—			—			—			—			—			—			—			—

Total provision for lending-related commitments	$	60		$	(62	)	$	(27	)	$	(164	)	$	(21	)	NM			NM			$	(29	)	$	(19	)		(53	)


Provision for credit losses
Wholesale	$	127		$	(117	)	$	(386	)	$	(86	)	$	44		NM				189		$	(376	)	$	(764	)		51
Consumer, excluding credit card		1,285			1,117			1,329			2,458			1,546			15			(17	)		3,731			6,994			(47	)
Credit card		999			810			226			671			1,633			23			(39	)		2,035			7,366			(72	)

Total provision for credit losses	$	2,411		$	1,810		$	1,169		$	3,043		$	3,223			33			(25	)	$	5,390		$	13,596			(60	)

Page 39


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
95% CONFIDENCE LEVEL- AVERAGE IB TRADING VAR, CREDIT PORTFOLIO VAR AND OTHER VAR
IB VaR by risk type:
Fixed income	$	48		$	45		$	49		$	53		$	72			7	%		(33)	%	$	47		$	68			(31)	%
Foreign exchange		10			9			11			10			9			11			11			10			11			(9	)
Equities		19			25			29			23			21			(24	)		(10	)		24			22			9
Commodities and other		15			16			13			14			13			(6	)		15			15			16			(6	)
Diversification benefit to IB trading VaR (a)		(39	)		(37	)		(38	)		(38	)		(38	)		(5	)		(3	)		(38	)		(43	)		12

IB trading VaR (b)		53			58			64			62			77			(9	)		(31	)		58			74			(22	)

Credit portfolio VaR (c)		38			27			26			26			30			41			27			30			25			20
Diversification benefit to IB trading and credit portfolio VaR (a)		(21	)		(8	)		(7	)		(10	)		(8	)		(163	)		(163	)		(11	)		(9	)		(22	)

Total IB trading and credit portfolio VaR		70			77			83			78			99			(9	)		(29	)		77			90			(14	)


Mortgage Production and Servicing VaR (d)		40			20			16			17			24			100			67			25			24			4
Chief Investment Office VaR (e)		48			51			60			49			53			(6	)		(9	)		53			65			(18	)
Diversification benefit to total other VaR (a)		(15	)		(10	)		(14	)		(10	)		(15	)		(50	)		—			(13	)		(14	)		7

Total other VaR		73			61			62			56			62			20			18			65			75			(13	)


Diversification benefit to total IB and other VaR (a)		(35	)		(44	)		(57	)		(39	)		(52	)		20			33			(45	)		(66	)		32

Total IB and other VaR (f)	$	108		$	94		$	88		$	95		$	109			15			(1	)	$	97		$	99			(2	)


(a)		Average VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is therefore usually less than the sum of the risks of the positions themselves.

(b)		IB trading VaR includes substantially all trading activities in IB, including the credit spread sensitivity of certain mortgage products and syndicated lending facilities that the Firm intends to distribute; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. IB trading VaR does not include the DVA taken on derivative and structured liabilities to reflect the credit quality of the Firm.

(c)		Credit portfolio VaR includes the derivative CVA, hedges of the CVA and MTM hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not MTM.

(d)		Mortgage Production and Servicing VaR includes the Firm’s mortgage pipeline and warehouse, MSR and all related hedges.

(e)		CIO VaR includes positions, primarily in debt securities and credit products, used to manage structural risk and other risks, including interest rate, credit and mortgage risks arising from the Firm’s ongoing business activities.

(f)		Total IB and other VaR excludes the retained credit portfolio, which is not marked to market (but it does include hedges of those positions), and certain nontrading activity, such as principal investing (e.g., mezzanine financing, tax-oriented investments, etc.), and certain securities and investments held by Corporate/Private Equity, including private equity investments, capital management positions and longer-term corporate investments managed by the CIO.

Page 40


JPMORGAN CHASE & CO. CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS (in millions, except ratio data)


																September 30, 2011
																Change						NINE MONTHS ENDED SEPTEMBER 30,
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Sep 30							2011 Change
	2011			2011			2011			2010			2010			2011			2010			2011		2010		2010
CAPITAL
Tier 1 capital	$	147,823	(e)	$	148,880		$	147,234		$	142,450		$	139,381			(1	)%		6	%
Total capital		186,547	(e)		187,899			186,417			182,216			180,740			(1	)		3
Tier 1 common capital (a)		120,234	(e)		121,209			119,598			114,763			110,842			(1	)		8
Risk-weighted assets		1,220,554	(e)		1,198,711			1,192,536			1,174,978			1,170,158			2			4
Adjusted average assets (b)		2,168,678	(e)		2,129,510			2,041,153			2,024,515			1,975,479			2			10
Tier 1 capital ratio		12.1	(e)%		12.4	%		12.3	%		12.1	%		11.9	%
Total capital ratio		15.3	(e)		15.7			15.6			15.5			15.4
Tier 1 common capital ratio (a)		9.9	(e)		10.1			10.0			9.8			9.5
Tier 1 leverage ratio		6.8	(e)		7.0			7.2			7.0			7.1

TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity	$	174,487		$	175,079		$	172,798		$	168,306		$	166,030			—			5
Less: Goodwill		48,180			48,882			48,856			48,854			48,736			(1	)		(1	)
Less: Other intangible assets		3,396			3,679			3,857			4,039			3,982			(8	)		(15	)
Add: Deferred tax liabilities (d)		2,645			2,632			2,603			2,586			2,656			—			—

Total tangible common equity	$	125,556		$	125,150		$	122,688		$	117,999		$	115,968			—			8


TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity	$	174,454		$	174,077		$	169,415		$	166,812		$	163,962			—			6		$	172,667	$	159,737		8	%
Less: Goodwill		48,631			48,834			48,846			48,831			48,745			—			—			48,770		48,546		—
Less: Other intangible assets		3,545			3,738			3,928			4,054			4,094			(5	)		(13	)		3,736		4,221		(11	)
Add: Deferred tax liabilities (d)		2,639			2,618			2,595			2,621			2,620			1			1			2,617		2,575		2

Total tangible common equity	$	124,917		$	124,123		$	119,236		$	116,548		$	113,743			1			10		$	122,778	$	109,545		12


INTANGIBLE ASSETS (period-end)
Goodwill	$	48,180		$	48,882		$	48,856		$	48,854		$	48,736			(1	)		(1	)
Mortgage servicing rights		7,833			12,243			13,093			13,649			10,305			(36	)		(24	)
Purchased credit card relationships		668			744			820			897			974			(10	)		(31	)
All other intangibles		2,728			2,935			3,037			3,142			3,008			(7	)		(9	)

Total intangibles	$	59,409		$	64,804		$	65,806		$	66,542		$	63,023			(8	)		(6	)


DEPOSITS (period-end)
U.S. offices:
Noninterest-bearing	$	323,058		$	287,654		$	244,136		$	228,555		$	219,302			12			47
Interest-bearing		484,640			469,618			468,654			455,237			435,405			3			11
Non-U.S. offices:
Noninterest-bearing		14,724			13,422			11,644			10,917			10,646			10			38
Interest-bearing		270,286			277,991			271,395			235,660			237,785			(3	)		14

Total deposits	$	1,092,708		$	1,048,685		$	995,829		$	930,369		$	903,138			4			21


(a)		The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. The Tier 1 common capital ratio, a non-GAAP financial measure, is Tier 1 common capital divided by risk-weighted assets. For further discussion of Tier 1 common capital ratio, see page 44.

(b)		Adjusted average assets, for purposes of calculating the leverage ratio, include total quarterly average assets adjusted for unrealized gains/(losses) on securities, less deductions for disallowed goodwill and other intangible assets, investments in certain subsidiaries, and the total adjusted carrying value of nonfinancial equity investments that are subject to deductions from Tier 1 capital.

(c)		ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of tangible common equity. In management’s view, these measures are meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity and in facilitating comparisons with competitors. For further discussion, see page 44.

(d)		Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.

(e)		Estimated.

Page 41


JPMORGAN CHASE & CO. MORTGAGE LOAN REPURCHASE LIABILITY (in millions)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
MORTGAGE LOAN REPURCHASE LIABILITY (a)
Summary of changes in mortgage repurchase liability:
Repurchase liability at beginning of period	$	3,631		$	3,474		$	3,285		$	3,307		$	2,332			5	%		56	%	$	3,285		$	1,705			93	%
Realized losses (b)		(329	)		(241	)		(231	)		(371	)		(489	)		(37	)		33			(801	)		(1,052	)		24
Provision for repurchase losses		314			398			420			349			1,464			(21	)		(79	)		1,132			2,654			(57	)

Repurchase liability at end of period	$	3,616		$	3,631		$	3,474		$	3,285		$	3,307			—			9		$	3,616		$	3,307			9


Outstanding repurchase demands and unresolved mortgage insurance rescission notices by counterparty type: (c)(d)
GSEs and other	$	2,133		$	1,826		$	1,321		$	1,251		$	1,333			17			60		$	2,133		$	1,333			60
Mortgage insurers		1,112			1,093			1,240			1,121			1,007			2			10			1,112			1,007			10
Overlapping population (e)		(155	)		(145	)		(127	)		(104	)		(109	)		(7	)		(42	)		(155	)		(109	)		(42	)

Total	$	3,090		$	2,774		$	2,434		$	2,268		$	2,231			11			39		$	3,090		$	2,231			39


Quarterly mortgage repurchase demands received by loan origination vintage: (c)(d)
Pre-2005	$	34		$	32		$	15		$	39		$	31			6			10		$	81		$	85			(5	)
2005		200			57			45			73			67			251			199			302			218			39
2006		232			363			158			198			213			(36	)		9			753			752			—
2007		602			510			381			539			537			18			12			1,493			1,506			(1	)
2008		323			301			249			254			191			7			69			873			475			84
Post-2008		153			89			94			65			46			72			233			336			119			182

Total	$	1,544		$	1,352		$	942		$	1,168		$	1,085			14			42		$	3,838		$	3,155			22


(a)		For further details regarding the Firm’s mortgage repurchase liability, see Mortgage repurchase liability on pages 53-56 and Note 21, on pages 167-170, of JPMorgan Chase’s second quarter Form 10-Q.

(b)		Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expense. Make-whole settlements were $162 million, $126 million, $115 million, $152 million and $225 million for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and $403 million and $480 million for the nine months ended September 30, 2011 and 2010, respectively.

(c)		In the second quarter of 2011, prior periods were revised to include repurchase demands and mortgage insurance rescission notices related to certain loans sold or deposited into private-label securitizations. The Firm’s outstanding repurchase demands are predominantly from the GSEs.

(d)		Excludes amounts related to Washington Mutual.

(e)		Because the GSEs may make repurchase demands based on mortgage insurance rescission notices that remain unresolved, certain loans may be subject to both an unresolved mortgage insurance rescission notice and an unresolved repurchase demand.

Page 42


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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q11 Change												2011 Change
	3Q11			2Q11			1Q11			4Q10			3Q10			2Q11			3Q10			2011			2010			2010
EARNINGS PER SHARE DATA
Basic earnings per share:
Net income	$	4,262		$	5,431		$	5,555		$	4,831		$	4,418			(22)	%		(4)	%	$	15,248		$	12,539			22	%
Less: Preferred stock dividends		157			158			157			157			160			(1	)		(2	)		472			485			(3	)

Net income applicable to common equity		4,105			5,273			5,398			4,674			4,258			(22	)		(4	)		14,776			12,054			23
Less: Dividends and undistributed earnings allocated to participating securities		169			206			262			262			239			(18	)		(29	)		635			701			(9	)

Net income applicable to common stockholders	$	3,936		$	5,067		$	5,136		$	4,412		$	4,019			(22	)		(2	)	$	14,141		$	11,353			25


Total weighted-average basic shares outstanding		3,859.6			3,958.4			3,981.6			3,917.0			3,954.3			(2	)		(2	)		3,933.2			3,969.4			(1	)

Net income per share	$	1.02		$	1.28		$	1.29		$	1.13		$	1.02			(20	)		—		$	3.60		$	2.86			26

Diluted earnings per share:
Net income applicable to common stockholders	$	3,936		$	5,067		$	5,136		$	4,412		$	4,019			(22	)		(2	)	$	14,141		$	11,353			25

Total weighted-average basic shares outstanding		3,859.6			3,958.4			3,981.6			3,917.0			3,954.3			(2	)		(2	)		3,933.2			3,969.4			(1	)
Add: Employee stock options, SARs and warrants (a)		12.6			24.8			32.5			18.2			17.6			(49	)		(28	)		23.3			21.3			9

Total weighted-average diluted shares outstanding (b)		3,872.2			3,983.2			4,014.1			3,935.2			3,971.9			(3	)		(3	)		3,956.5			3,990.7			(1	)

Net income per share	$	1.02		$	1.27		$	1.28		$	1.12		$	1.01			(20	)		1		$	3.57		$	2.84			26

COMMON SHARES OUTSTANDING
Common shares — at period end		3,798.9			3,910.2			3,986.6			3,910.3			3,925.8			(3	)		(3	)		3,798.9			3,925.8			(3	)
Cash dividends declared per share	$	0.25		$	0.25		$	0.25	(f)	$	0.05		$	0.05			—			400		$	0.75		$	0.15			400
Book value per share		45.93			44.77			43.34			43.04			42.29			3			9			45.93			42.29			9
Dividend payout ratio		24	%		19	%		20	%		4	%		5	%								21	%		5	%

SHARE PRICE (c)
High	$	42.55		$	47.80		$	48.36		$	43.12		$	41.70			(11	)		2		$	48.36		$	48.20			—
Low		28.53			39.24			42.65			36.21			35.16			(27	)		(19	)		28.53			35.16			(19	)
Close		30.12			40.94			46.10			42.42			38.06			(26	)		(21	)		30.12			38.06			(21	)
Market capitalization		114,422			160,083			183,783			165,875			149,418			(29	)		(23	)		114,422			149,418			(23	)

COMMON EQUITY REPURCHASE PROGRAM (d)
Aggregate common equity repurchased	$	4,424.9	(e)	$	3,479.8		$	95.0		$	685.2		$	2,178.1			27			103		$	7,999.7	(e)	$	2,313.4			246
Common equity repurchased		127.4	(e)		80.3			2.1			17.9			56.5			59			125			209.8	(e)		60.0			250
Average purchase price	$	34.72	(e)	$	43.33		$	45.66		$	38.37		$	38.52			(20	)		(10	)	$	38.12	(e)	$	38.53			(1	)


(a)		Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock. The aggregate number of shares issuable upon the exercise of such options and warrants was 197 million, 53 million, 85 million, 233 million and 236 million, for the three months ended September 30, 2011, June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010, respectively, and 112 million and 233 million for the nine months ended September 30, 2011 and 2010, respectively.

(b)		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.

(c)		Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.

(d)		On March 18, 2011, the Board of Directors authorized the repurchase of up to $15.0 billion of the Firm’s common equity, of which up to $8.0 billion of common equity repurchases is approved for 2011. The authorization commenced on March 22, 2011, and replaced the Firm’s previous $10.0 billion repurchase program. Management and the Board will continue to assess and make decisions regarding alternatives for deploying capital, as appropriate, over the course of the year. Any planned future dividend increases over the current level, or planned use of the equity repurchase program over the repurchases authorized for 2011, will be reviewed by the Firm with the banking regulators before taking action.

(e)		Includes impact of aggregate repurchases of 10.2 million warrants during the three months ended September 30, 2011.

(f)		On March 18, 2011, the Board of Directors increased the Firm’s quarterly common stock dividend from $0.05 to $0.25 per share.

Page 43


JPMORGAN CHASE & CO. NON-GAAP FINANCIAL MEASURES

The following are several of the non-GAAP measures that the Firm uses for various reasons, including: (i) to allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources, (ii) to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies, and (iii) more generally, to provide a more meaningful measure of certain metrics that enables comparability with prior periods, as well as with competitors.

(a)

In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the business segments) on a FTE basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to taxable securities and investments. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.

(b)

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

(c)

Tangible common equity (“TCE”), a non-GAAP financial measure, represents common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of TCE. In management’s view, these measures are meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity, and in facilitating comparisons with competitors.

(d)

Tier 1 common capital ratio is Tier 1 common capital divided by risk-weighted assets. Tier 1 Common Capital (“Tier 1 Common”) is defined as Tier 1 capital less elements of capital not in the form of common equity – such as perpetual preferred stock, noncontrolling interests in subsidiaries and trust preferred capital debt securities. Tier 1 Common, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies. The Firm uses Tier 1 Common along with other capital measures to assess and monitor its capital position.

(e)

TSS Firmwide revenue includes certain TSS product revenue and liability balances reported in other lines of business, mainly CB, RFS and AM, related to customers who are also customers of those lines of business.

(f)

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 would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years. This method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Consumer & Business Banking’s CDI amortization expense related to prior business combination transactions.

(g)

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 VIEs; (3) cash and securities segregated and on deposit for regulatory and other purposes; (4) goodwill and intangibles; and (5) securities received as collateral. The amount of adjusted assets is presented to assist the reader in comparing IB’s asset and capital levels with those of 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.

Page 44


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.

Beneficial interests 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 about a specific event (e.g., bankruptcy of the borrower), whichever is earlier.

Corporate/Private Equity: Includes Private Equity, Treasury and Chief Investment Office, and Corporate Other, which includes other centrally managed expense and discontinued operations.

Global Corporate Bank: TSS and IB formed a joint venture to create the Firm’s Global Corporate Bank. With a team of bankers, the Global Corporate Bank serves multinational clients by providing them access to TSS products and services and certain IB products, including derivatives, foreign exchange and debt. The cost of this effort and the credit that the Firm extends to these clients is shared between TSS and IB.

Interests in purchased receivables: Represents 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.

Managed basis: A non-GAAP presentation of financial results that includes reclassifications 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.

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 MTM value is positive, it indicates the counterparty owes JPMorgan Chase and, therefore, creates credit risk for the Firm. When the MTM value is negative, JPMorgan Chase owes the counterparty; in this situation, the Firm has liquidity risk.

MSR risk management revenue: Includes changes in the fair value of the MSR asset due to market-based inputs, such as interest rates and volatility, as well as updates to assumptions used in the MSR valuation model; and 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.

NA: Data is not applicable or available for the period presented.

Net charge-off rate: 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.

Overhead ratio: Noninterest expense as a percentage of total net revenue.

Participating securities: Represents unvested stock-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”), which are included in the earnings per share 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.

Pre-provision profit: Pre-provision profit is total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

Page 45


JPMORGAN CHASE & CO. GLOSSARY OF TERMS

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

Principal transactions: 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 predominantly by IB for which the fair value option was elected. Principal transactions revenue also includes private equity gains and losses.

Purchased credit-impaired (“PCI”) loans: Acquired loans deemed to be credit-impaired under the Financial Accounting Standards Board guidance for PCI loans. The guidance allows purchasers to aggregate credit-impaired loans acquired in the same fiscal quarter into one or more pools, provided that the loans have common risk characteristics (e.g., FICO score, geographic location). A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Wholesale loans are determined to be credit-impaired if they meet the definition of an impaired loan under U.S. GAAP at the acquisition date. Consumer loans are determined to be credit-impaired based on specific risk characteristics of the loan, including product type, LTV ratios, FICO scores, and past due status.

Receivables from customers: Primarily represents margin loans to prime and retail brokerage customers which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets for the wholesale lines of business.

Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments.

Retained loans: Loans that are held-for-investment excluding loans held-for-sale and loans at fair value.

Risk-weighted assets (“RWA”): Risk-weighted assets consist of on- and off-balance sheet assets that are assigned to one of several broad risk categories and weighted by factors representing their risk and potential for default. On-balance sheet assets are risk-weighted based on the perceived credit risk associated with the obligor or counterparty, the nature of any collateral, and the guarantor, if any. Off-balance sheet assets such as lending-related commitments, guarantees, derivatives and other applicable off-balance sheet positions are risk-weighted by multiplying the contractual amount by the appropriate credit conversion factor to determine the on-balance sheet credit equivalent amount, which is then risk-weighted based on the same factors used for on-balance sheet assets. Risk-weighted assets also incorporate a measure for the market risk related to applicable trading assets-debt and equity instruments, and foreign exchange and commodity derivatives. The resulting risk-weighted values for each of the risk categories are then aggregated to determine total risk-weighted assets.

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.

Troubled debt restructuring (“TDR”): Occurs when the Firm modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty.

U.S. GAAP: Accounting principles generally accepted in the United States of America.

Value-at-risk (“VaR”): A measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.

Washington Mutual transaction: On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank (“Washington Mutual”) from the FDIC. For additional information, see Note 2 on pages 166-170 of JPMorgan Chase’s 2010 Annual Report.

Page 46


JPMORGAN CHASE & CO. GLOSSARY OF TERMS

INVESTMENT BANK (IB)

IB’s revenue comprises the following:

Investment banking fees include advisory, equity underwriting, bond underwriting and loan syndication fees.

Fixed income markets primarily include revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets.

Equities markets primarily include revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and Prime Services.

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 IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

RETAIL FINANCIAL SERVICES (RFS)

Description of selected business metrics within Consumer & Business Banking:

Client investment managed accounts – Assets actively managed by Chase Wealth Management on behalf of clients. The percentage of managed accounts is calculated by dividing managed account assets by total client investment assets.

Active mobile customers – Retail banking users of all mobile platforms, which include: SMS text, Mobile Browser, iPhone, iPad and Android, who have been active in the past 90 days.

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.

Sales specialists – Retail branch office personnel who specialize in the marketing of a single product, including mortgages, investments, and business banking, by partnering with the personal bankers.

Mortgage Production and Servicing revenue comprises the following:

Net production revenue includes net gains or losses on originations and sales of prime and subprime mortgage loans, other production-related fees and losses related to the repurchase of previously-sold loans.

Net mortgage servicing revenue includes the following components:

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; and

•

Modeled servicing portfolio runoff (or time decay).

(see next column for continuation)

RFS (continued)

Risk management comprises:

•

Changes in the fair value of the MSR asset due to market-based inputs, such as interest rates and volatility, as well as updates to assumptions used in the MSR valuation model; and

•

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.

Mortgage origination channels comprise the following:

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 a banker in a Chase branch, real estate brokers, home builders or other third parties.

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. The Firm exited the broker channel during 2008.

Correspondent – Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.

Correspondent negotiated transactions (“CNTs”) – 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 periods of rising interest rates.

Deposit margin: Represents deposit-related net interest income expressed as a percentage of average deposits.

CARD SERVICES & AUTO (Card)

Description of selected business metrics within Card:

Sales volume – Dollar amount of cardmember purchases, net of returns.

Open accounts – Cardmember accounts with charging privileges.

Merchant Services business – A business that processes bank card transactions for merchants.

Bank card volume – Dollar amount of transactions processed for merchants.

Total transactions – Number of transactions and authorizations processed for merchants.

Auto Origination volume – Dollar amount of loans and leases originated.

Commercial Card provides a wide range of payment services to corporate and public sector clients worldwide through the commercial card products. Services include procurement, corporate travel and entertainment, expense management services, and Business-to-Business payment solutions.

Page 47


JPMORGAN CHASE & CO. GLOSSARY OF TERMS

COMMERCIAL BANKING (CB)

CB Client Segments:

Middle Market Banking covers corporate, municipal, financial institution and not-for-profit clients, with annual revenue generally ranging between $10 million and $500 million.

Corporate Client Banking covers clients with annual revenue generally ranging between $500 million and $2 billion and focuses on clients that have broader investment banking needs.

Commercial Term Lending primarily provides term financing to real estate investors/owners for multi-family properties as well as financing office, retail and industrial properties.

Real Estate Banking provides full-service banking to investors and developers of institutional-grade real estate properties.

Other primarily includes lending and investment activity within the Community Development Banking and Chase Capital segments.

CB Revenue:

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, leases, commercial card products and standby letters of credit.

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, deposit products, sweeps and money market mutual funds.

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.

Other product revenue primarily includes tax-equivalent adjustments generated from Community Development Banking segment activity and certain income derived from principal transactions.

Description of selected business metrics within CB:

Liability balances include deposits, as well as deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, federal funds purchased, time deposits and securities loaned or sold under repurchase agreements) as part of customer cash management programs.

IB revenue, gross represents total revenue related to investment banking products sold to CB clients.

TREASURY & SECURITIES SERVICES (TSS)

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 Treasury Services and TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary, in management’s view, in order to understand the aggregate TSS business.

Description of a business metric within TSS:

ASSET MANAGEMENT (AM)

Assets under management – Represent assets actively managed by AM on behalf of Private Banking, Institutional, and Retail clients. Includes “committed capital not called”, on which AM earns fees. Excludes assets managed by American Century Companies, Inc. in which the Firm sold its minority ownership interest on August 31, 2011.

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

Multi-asset – Any fund or account that allocates assets under management to more than one asset class (e.g., long-term fixed income, equity, cash, real assets, private equity or hedge funds).

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:

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.

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

Private Banking offers investment advice and wealth management services to high- and ultra-high-net-worth individuals, families, money managers, business owners and small corporations worldwide, including investment management, capital markets and risk management, tax and estate planning, banking, capital raising and specialty-wealth advisory services.

Page 48


JPMORGAN CHASE & CO. Revised Financial Disclosure

Commencing July 1, 2011, the Firm’s business segments have been reorganized as follows:

	•		Auto and Student Lending transferred from the current Retail Financial Services reportable/operating segment and is now reported with Card Services & Auto in a single reportable/operating segment.

	•		Retail Financial Services continues as a reportable/operating segment, organized in two components: Consumer & Business Banking (formerly Retail Banking) and Mortgage Banking (including Mortgage Production and Servicing, and Real Estate Portfolios).

All prior period disclosures were revised to conform with the current period presentation.

The chart below provides a mapping of the Firm’s prior reporting to the current presentation.

Page 49

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