JPMORGAN CHASE & CO - FORM 8-K - EX-99.1 - JPMORGAN CHASE & CO. REVISED FINANCIAL SUPPLEMENT

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8-K - FORM 8-K - JPMORGAN CHASE & CO	d444830d8k.htm

EXHIBIT 99.1

LOGO

REVISED FINANCIAL SUPPLEMENT

(Business Segment Reorganization)

SEVEN QUARTER TREND THROUGH 3Q12

AND FULL YEARS OF 2011 & 2010


JPMORGAN CHASE & CO.
TABLE OF CONTENTS


		Page(s)

Summary of Revisions		2-3

Business Detail
Line of Business Financial Highlights - Managed Basis		4

Consumer & Community Banking		5-6
Consumer & Business Banking		7
Mortgage Production and Servicing		8-9
Real Estate Portfolios		10-11
Card, Merchant Services & Auto		12-13

Corporate & Investment Bank		14-17

Corporate/Private Equity		18

Credit-Related Information		19-22

Non-GAAP Financial Measures		23

Glossary of Terms		24-26

Page 1


JPMORGAN CHASE & CO.
REVISED FINANCIAL DISCLOSURE

JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) is furnishing this Current Report on Form 8-K to provide supplemental financial disclosures related to the reorganization of its business segments. The reorganization became effective in the fourth quarter of 2012. As a result of the reorganization:

Consumer business segment change. The Retail Financial Services (“RFS”) and Card Services & Auto (“Card”) business segments were combined to form one business segment called Consumer & Community Banking (“CCB”).

Wholesale business segment change. The Investment Bank (“IB”) and Treasury & Securities Services (“TSS”) business segments were combined to form one business segment called Corporate & Investment Bank (“CIB”).

The Firm’s other business segments, Commercial Banking (“CB”) and Asset Management (“AM”), were not affected by the aforementioned changes. A technology function supporting online and mobile banking was transferred from Corporate/Private Equity (“Corp/PE”) to the CCB business segment. This transfer did not materially affect the results of either the CCB business segment or Corp/PE.

The pages that follow provide: (i) a summary mapping of the Firm’s prior and current business segments (page 3), and (ii) more detailed presentations of the supplemental financial information in order to assist investors in understanding how the Firm’s business segment results would have been presented in previously-filed reports had such results been reported in the manner in which JPMorgan Chase’s business segments are being managed commencing in the fourth quarter of 2012 (pages 4 – 22). Only financial information affected by the reorganization is included in this Current Report on Form 8-K.

Page 2

JPMORGAN CHASE & CO.

REVISED FINANCIAL DISCLOSURE

LOGO

* A technology function supporting online and mobile banking was transferred from Corp/PE to the CCB business segment.

Page 3


JPMORGAN CHASE & CO.
LINE OF BUSINESS FINANCIAL HIGHLIGHTS - MANAGED BASIS
(in millions)


	QUARTERLY TRENDS														FULL YEAR

	3Q12		2Q12		1Q12		4Q11		3Q11		2Q11		1Q11		2011		2010
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	12,738	$	12,466	$	12,363	$	11,209	$	12,312	$	11,909	$	10,257	$	45,687	$	48,927
Corporate & Investment Bank		8,360		8,986		9,338		6,320		8,286		9,278		10,100		33,984		33,477
Commercial Banking		1,732		1,691		1,657		1,687		1,588		1,627		1,516		6,418		6,040
Asset Management		2,459		2,364		2,370		2,284		2,316		2,537		2,406		9,543		8,984
Corporate/Private Equity		574		(2,615)		1,029		698		(134)		2,059		1,512		4,135		7,414

TOTAL NET REVENUE	$	25,863	$	22,892	$	26,757	$	22,198	$	24,368	$	27,410	$	25,791	$	99,767	$	104,842


TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	6,954	$	6,832	$	7,038	$	6,763	$	6,680	$	7,282	$	6,819	$	27,544	$	23,706
Corporate & Investment Bank		5,350		5,293		6,211		4,532		5,269		5,785		6,393		21,979		22,869
Commercial Banking		601		591		598		579		573		563		563		2,278		2,199
Asset Management		1,731		1,701		1,729		1,752		1,796		1,794		1,660		7,002		6,112
Corporate/Private Equity		735		549		2,769		914		1,216		1,418		560		4,108		6,310

TOTAL NONINTEREST EXPENSE	$	15,371	$	14,966	$	18,345	$	14,540	$	15,534	$	16,842	$	15,995	$	62,911	$	61,196


PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	5,784	$	5,634	$	5,325	$	4,446	$	5,632	$	4,627	$	3,438	$	18,143	$	25,221
Corporate & Investment Bank		3,010		3,693		3,127		1,788		3,017		3,493		3,707		12,005		10,608
Commercial Banking		1,131		1,100		1,059		1,108		1,015		1,064		953		4,140		3,841
Asset Management		728		663		641		532		520		743		746		2,541		2,872
Corporate/Private Equity		(161)		(3,164)		(1,740)		(216)		(1,350)		641		952		27		1,104

PRE-PROVISION PROFIT	$	10,492	$	7,926	$	8,412	$	7,658	$	8,834	$	10,568	$	9,796	$	36,856	$	43,646


PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	1,862	$	179	$	642	$	1,839	$	2,291	$	1,938	$	1,552	$	7,620	$	17,489
Corporate & Investment Bank		(60)		29		(3)		291		34		(185)		(425)		(285)		(1,247)
Commercial Banking		(16)		(17)		77		40		67		54		47		208		297
Asset Management		14		34		19		24		26		12		5		67		86
Corporate/Private Equity		(11)		(11)		(9)		(10)		(7)		(9)		(10)		(36)		14

PROVISION FOR CREDIT LOSSES	$	1,789	$	214	$	726	$	2,184	$	2,411	$	1,810	$	1,169	$	7,574	$	16,639


NET INCOME/(LOSS)
Consumer & Community Banking	$	2,366	$	3,295	$	2,936	$	1,574	$	2,011	$	1,483	$	1,134	$	6,202	$	4,578
Corporate & Investment Bank		1,992		2,376		2,033		976		1,941		2,390		2,686		7,993		7,718
Commercial Banking		690		673		591		643		571		607		546		2,367		2,084
Asset Management		443		391		386		302		385		439		466		1,592		1,710
Corporate/Private Equity		217		(1,775)		(1,022)		233		(646)		512		723		822		1,280

TOTAL NET INCOME	$	5,708	$	4,960	$	4,924	$	3,728	$	4,262	$	5,431	$	5,555	$	18,976	$	17,370

Page 4


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
INCOME STATEMENT (a)
REVENUE
Lending- and deposit-related fees	$	797		$	782		$	753		$	812		$	838		$	822		$	747		$	3,219		$	3,117
Asset management, administration and commissions		522			540			535			508			524			512			500			2,044			1,831
Mortgage fees and related income		2,376			2,265			2,008			723			1,380			1,100			(489)			2,714			3,855
Credit card income		1,376			1,359			1,263			1,358			1,664			1,695			1,435			6,152			5,469
All other income		352			340			416			321			323			299			234			1,177			1,241

Noninterest revenue		5,423			5,286			4,975			3,722			4,729			4,428			2,427			15,306			15,513
Net interest income		7,315			7,180			7,388			7,487			7,583			7,481			7,830			30,381			33,414

TOTAL NET REVENUE		12,738			12,466			12,363			11,209			12,312			11,909			10,257			45,687			48,927

Provision for credit losses		1,862			179			642			1,839			2,291			1,938			1,552			7,620			17,489

NONINTEREST EXPENSE
Compensation expense		2,847			2,817			2,819			2,619			2,585			2,409			2,358			9,971			8,804
Noncompensation expense		3,970			3,871			4,072			3,991			3,939			4,709			4,295			16,934			14,159
Amortization of intangibles		137			144			147			153			156			164			166			639			743

TOTAL NONINTEREST EXPENSE		6,954			6,832			7,038			6,763			6,680			7,282			6,819			27,544			23,706


Income before income tax expense		3,922			5,455			4,683			2,607			3,341			2,689			1,886			10,523			7,732
Income tax expense		1,556			2,160			1,747			1,033			1,330			1,206			752			4,321			3,154

NET INCOME	$	2,366		$	3,295		$	2,936		$	1,574		$	2,011		$	1,483		$	1,134		$	6,202		$	4,578


FINANCIAL RATIOS (a)
ROE		22	%		31	%		27	%		15	%		19	%		15	%		11	%		15	%		11	%
Overhead ratio		55			55			57			60			54			61			66			60			48

SELECTED BALANCE SHEET DATA (period-end) (a)
Total assets	$	460,124		$	463,198		$	469,084		$	483,307		$	476,313		$	481,717		$	490,559		$	483,307		$	508,775
Loans:
Loans retained		402,431			408,066			413,373			425,581			423,023			427,449			433,618			425,581			452,249
Loans held-for-sale and loans at fair value (b)		15,356			14,366			13,352			12,796			13,247			13,558			16,246			12,796			17,015

Total loans		417,787			422,432			426,725			438,377			436,270			441,007			449,864			438,377			469,264
Deposits		422,068			415,531			415,942			397,825			390,783			380,453			381,541			397,825			371,861
Equity		43,000			43,000			43,000			41,000			41,000			41,000			41,000			41,000			43,000

SELECTED BALANCE SHEET DATA (average) (a)
Total assets	$	460,386		$	465,873		$	471,476		$	480,766		$	483,472		$	485,325		$	502,415		$	487,923		$	527,101
Loans:
Loans retained		404,772			410,774			418,017			422,970			425,222			429,893			442,078			429,975			475,549
Loans held-for-sale and loans at fair value (b)		17,988			18,476			16,442			16,777			16,609			14,889			20,521			17,187			16,663

Total loans		422,760			429,250			434,459			439,747			441,831			444,782			462,599			447,162			492,212
Deposits		416,653			411,255			401,580			391,521			384,288			380,892			373,798			382,678			363,645
Equity		43,000			43,000			43,000			41,000			41,000			41,000			41,000			41,000			43,000

Headcount (a)		160,342			162,807			162,991			161,443			157,280			150,286			145,960			161,443			143,226

(a)

Effective January 1, 2011, the commercial card business that was previously in Corporate & Investment Bank (“CIB”) was transferred to Consumer & Community Banking (“CCB”). There is no material impact on the financial data; prior-year periods were not revised. Headcount included 1,274 employees related to the transfer of this business.

(b)	Predominantly consists 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 and Condensed Average Balance Sheets.

Page 5


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
CREDIT DATA AND QUALITY STATISTICS (a)
Net charge-offs (b)	$	2,817		$	2,280		$	2,392		$	2,569		$	2,661		$	3,033		$	3,552		$	11,815		$	21,943
Nonaccrual loans:
Nonaccrual loans retained		9,398			8,016			8,395			7,354			7,759			8,275			8,501			7,354			8,770
Nonaccrual loans held-for-sale and loans at fair value		89			98			101			103			132			142			150			103			145

Total nonaccrual loans (c)(d)(e)(f)(g)		9,487			8,114			8,496			7,457			7,891			8,417			8,651			7,457			8,915
Nonperforming assets (c)(d)(e)(f)(g)		10,185			8,864			9,351			8,292			8,808			9,408			9,907			8,292			10,268
Allowance for loan losses		18,454			19,405			21,508			23,256			24,016			24,400			25,494			23,256			27,487

Net charge-off rate (b)(h)		2.77	%		2.23	%		2.30	%		2.41	%		2.48	%		2.83	%		3.26	%		2.75	%		4.61	%
Net charge-off rate, excluding purchased credit-impaired (“PCI”) loans (b)(h)		3.27			2.64			2.72			2.86			2.96			3.38			3.89			3.27			5.50
Allowance for loan losses to period-end loans retained		4.59			4.76			5.20			5.46			5.68			5.71			5.88			5.46			6.08
Allowance for loan losses to period-end loans retained, excluding PCI loans (i)		3.73			3.96			4.52			4.87			5.36			5.43			5.66			4.87			5.94
Allowance for loan losses to nonaccrual loans retained, excluding credit card (c)(f)(g)(i)		77			102			114			143			149			138			135			143			131
Nonaccrual loans to total period-end loans, excluding credit card (f)(g)		3.23			2.72			2.82			2.44			2.55			2.67			2.69			2.44			2.69
Nonaccrual loans to total period-end loans, excluding credit card and PCI loans (c)(f)(g)		4.09			3.45			3.58			3.10			3.26			3.41			3.46			3.10			3.44

BUSINESS METRICS
Number of:
Branches		5,596			5,563			5,541			5,508			5,396			5,340			5,292			5,508			5,268
ATMs		18,485			18,132			17,654			17,235			16,708			16,443			16,265			17,235			16,145
Active online customers (in thousands)		30,765			30,361			30,680			29,749			29,544			29,246			29,761			29,749			28,708
Active mobile customers (in thousands)		11,573			10,646			10,016			8,203			7,299			6,485			5,770			8,203			4,873

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

(b)

Net charge-offs and net charge-off rates for the three months ended September 30, 2012 included $880 million of incremental charge-offs recorded in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) to be charged off to the net realizable value of the collateral and to be considered nonaccrual, regardless of their delinquency status. Excluding these incremental charges-offs, the third quarter of 2012 net charge-offs would have been $1.9 billion and, excluding these incremental charge-offs and PCI loans, the third quarter of 2012 net charge-off rate would have been 2.25%. For further information, see Consumer Credit Portfolio on pages 84-86 of JPMorgan Chase’s third quarter 2012 Form 10-Q.

(c)	Excludes PCI loans. Because the Firm is recognizing interest income on each pool of PCI loans, they are all considered to be performing.

(d)	Certain mortgages originated with the intent to sell are classified as trading assets on the Consolidated Balance Sheets.

(e)

At September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 March 31, 2011 and December 31, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $11.0 billion, $11.9 billion, $11.8 billion, $11.5 billion, $9.5 billion, $9.1 billion, $8.8 billion and $9.4 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $1.5 billion, $1.3 billion, $1.2 billion, $954 million, $2.4 billion, $2.4 billion, $2.3 billion and $1.9 billion, respectively; and (3) student loans insured by U.S government agencies under the Federal Family Education Loan Program (“FFELP”) of $536 million, $547 million, $586 million, $551 million, $567 million, $558 million, $615 million and $625 million, respectively, that are 90 or more days past due. These amounts were excluded from nonaccrual loans as reimbursement of insured amounts is proceeding normally.

(f)	Nonaccrual loans included $1.7 billion of Chapter 7 loans, based upon regulatory guidance, at September 30, 2012.

(g)

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

(i)

An allowance for loan losses of $5.7 billion at September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011 and $4.9 billion at September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010 was recorded for PCI loans; these amounts were also excluded from the applicable ratios.

Page 6


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
CONSUMER & BUSINESS BANKING
Lending- and deposit-related fees	$	785		$	770		$	742		$	800		$	826		$	807		$	727		$	3,160		$	3,025
Asset management, administration and commissions		406			415			412			385			399			395			380			1,559			1,390
Credit card income		343			344			315			305			611			571			537			2,024			1,953
All other income		121			123			116			113			118			123			113			467			484

Noninterest revenue		1,655			1,652			1,585			1,603			1,954			1,896			1,757			7,210			6,852
Net interest income		2,685			2,680			2,675			2,714			2,730			2,705			2,659			10,808			10,884

Total net revenue		4,340			4,332			4,260			4,317			4,684			4,601			4,416			18,018			17,736
Provision for credit losses		107			(2)			96			132			126			42			119			419			630
Noninterest expense		2,911			2,752			2,866			2,864			2,842			2,736			2,801			11,243			10,762

Income before income tax expense		1,322			1,582			1,298			1,321			1,716			1,823			1,496			6,356			6,344

Net income	$	789		$	944		$	774		$	792		$	1,024		$	1,088		$	892		$	3,796		$	3,630


Overhead ratio		67	%		64	%		67	%		66	%		61	%		59	%		63	%		62	%		61	%
Overhead ratio excluding core deposit intangibles (a)		66			62			66			65			59			58			62			61			59

BUSINESS METRICS
Business banking origination volume	$	1,685		$	1,787		$	1,540		$	1,389		$	1,440		$	1,573		$	1,425		$	5,827		$	4,688
Period-end loans		18,568			18,218			17,822			17,652			17,272			17,141			16,957			17,652			16,812
Period-end deposits:
Checking		159,527			156,449			159,075			147,779			142,064			136,297			137,463			147,779			131,702
Savings		208,272			203,910			200,662			191,891			186,733			182,127			180,345			191,891			170,604
Time and other		32,783			34,406			35,643			36,745			39,017			41,951			44,002			36,745			45,967

Total period-end deposits		400,582			394,765			395,380			376,415			367,814			360,375			361,810			376,415			348,273
Average loans		18,279			17,934			17,667			17,363			17,172			17,057			16,886			17,121			16,863
Average deposits:
Checking		153,982			151,733			147,455			140,672			137,033			136,558			131,954			136,579			123,490
Savings		206,298			202,685			197,199			189,553			184,590			180,892			175,133			182,587			166,112
Time and other		33,472			35,099			36,123			37,709			40,592			43,056			45,035			41,576			51,152

Total average deposits		393,752			389,517			380,777			367,934			362,215			360,506			352,122			360,742			340,754
Deposit margin		2.56	%		2.62	%		2.68	%		2.76	%		2.82	%		2.83	%		2.88	%		2.82	%		3.00	%
Average assets	$	30,702		$	30,340		$	30,911		$	30,416		$	30,129		$	29,093		$	29,445		$	29,774		$	29,321

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	107		$	98		$	96		$	132		$	126		$	117		$	119		$	494		$	730
Net charge-off rate		2.33	%		2.20	%		2.19	%		3.02	%		2.91	%		2.74	%		2.86	%		2.89	%		4.32	%
Allowance for loan losses	$	698		$	698		$	798		$	798		$	800		$	800		$	875		$	798		$	875
Nonperforming assets		532			597			663			710			773			784			822			710			846

RETAIL BRANCH BUSINESS METRICS
Investment sales volume	$	6,280		$	6,171		$	6,598		$	4,696		$	5,102		$	6,334		$	6,584		$	22,716		$	23,579
Client investment assets		154,637			147,641			147,083			137,853			132,255			140,285			138,150			137,853			133,114
% managed accounts		28	%		26	%		26	%		24	%		23	%		23	%		22	%		24	%		20	%

Number of:
Chase Private Client branch locations		960			738			366			262			139			16			16			262			16
Personal bankers		23,622			24,052			24,198			24,308			24,205			23,330			21,894			24,308			21,735
Sales specialists		6,205			6,179			6,110			6,017			5,639			5,289			5,039			6,017			4,876
Client advisors		3,034			3,075			3,131			3,201			3,177			3,112			3,051			3,201			3,066
Chase Private Clients		75,766			50,649			32,857			21,723			11,711			5,807			4,829			21,723			4,242
Accounts (in thousands) (b)		27,840			27,406			27,034			26,626			26,541			26,266			26,622			26,626			27,252

(a)

Consumer & Business Banking (“CBB”) 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 excluded CBB’s CDI amortization expense related to prior business combination transactions of $51 million, $50 million, $51 million, $58 million, $60 million, $60 million and $60 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively, and $238 million and $276 million for full year 2011 and 2010, respectively.

(b)

Includes checking accounts and Chase Liquid^® cards beginning in the second quarter of 2012.

Page 7


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
MORTGAGE PRODUCTION AND SERVICING
Mortgage fees and related income	$	2,376		$	2,265		$	2,008		$	723		$	1,380		$	1,100		$	(489)		$	2,714		$	3,855
All other income		103			110			123			124			118			106			104			452			413

Noninterest revenue		2,479			2,375			2,131			847			1,498			1,206			(385)			3,166			4,268
Net interest income		190			194			177			171			204			124			271			770			904

Total net revenue		2,669			2,569			2,308			1,018			1,702			1,330			(114)			3,936			5,172
Provision for credit losses		4			1			-			1			2			(2)			4			5			58
Noninterest expense		1,737			1,572			1,724			1,442			1,360			2,187			1,746			6,735			4,139

Income/(loss) before income tax expense/(benefit)		928			996			584			(425)			340			(855)			(1,864)			(2,804)			975

Net income/(loss)	$	563		$	604		$	461		$	(258)		$	205		$	(649)		$	(1,130)		$	(1,832)		$	569


Overhead ratio		65	%		61	%		75	%		142	%		80	%		164	%		NM	%		171	%		80	%

FUNCTIONAL RESULTS
Production
Production revenue	$	1,582		$	1,362		$	1,432		$	859		$	1,090		$	767		$	679		$	3,395		$	3,440
Production-related net interest & other income		196			199			187			210			213			199			218			840			869

Production-related revenue, excl. repurchase losses		1,778			1,561			1,619			1,069			1,303			966			897			4,235			4,309
Production expense		678			620			573			518			496			457			424			1,895			1,613

Income, excluding repurchase losses		1,100			941			1,046			551			807			509			473			2,340			2,696
Repurchase losses		(13)			(10)			(302)			(390)			(314)			(223)			(420)			(1,347)			(2,912)

Income/(loss) before income tax expense/(benefit)		1,087			931			744			161			493			286			53			993			(216)
Servicing
Loan servicing revenue		946			1,004			1,039			1,032			1,039			1,011			1,052			4,134			4,575
Servicing-related net interest & other income		98			108			112			90			115			29			156			390			433

Servicing-related revenue		1,044			1,112			1,151			1,122			1,154			1,040			1,208			4,524			5,008
MSR asset modeled amortization		(290)			(327)			(351)			(406)			(457)			(478)			(563)			(1,904)			(2,384)
Default servicing expense		819			705			890			702			585			1,449			1,078			3,814			1,747
Core servicing expense		244			248			261			223			281			279			248			1,031			837

Income/(loss), excluding MSR risk management		(309)			(168)			(351)			(209)			(169)			(1,166)			(681)			(2,225)			40
MSR risk management, including related net interest income/(expense)		150			233			191			(377)			16			25			(1,236)			(1,572)			1,151

Income/(loss) before income tax expense/(benefit)		(159)			65			(160)			(586)			(153)			(1,141)			(1,917)			(3,797)			1,191

Net Income/(loss)	$	563		$	604		$	461		$	(258)		$	205		$	(649)		$	(1,130)		$	(1,832)		$	569


SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS
Net production revenue:
Production revenue	$	1,582		$	1,362		$	1,432		$	859		$	1,090		$	767		$	679		$	3,395		$	3,440
Repurchase losses		(13)			(10)			(302)			(390)			(314)			(223)			(420)			(1,347)			(2,912)

Net production revenue		1,569			1,352			1,130			469			776			544			259			2,048			528
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue		946			1,004			1,039			1,032			1,039			1,011			1,052			4,134			4,575
Changes in MSR asset fair value due to modeled amortization		(290)			(327)			(351)			(406)			(457)			(478)			(563)			(1,904)			(2,384)

Total operating revenue		656			677			688			626			582			533			489			2,230			2,191
Risk management:
Changes in MSR asset fair value due to market interest rates		(323)			(1,193)			644			(263)			(4,574)			(932)			379			(5,390)			(2,224)
Other changes in MSR asset fair value due to inputs or assumptions in model (a)		(5)			76			(48)			(569)			-			(28)			(1,130)			(1,727)			(44)
Derivative valuation adjustments and other		479			1,353			(406)			460			4,596			983			(486)			5,553			3,404

Total risk management		151			236			190			(372)			22			23			(1,237)			(1,564)			1,136

Total net mortgage servicing revenue		807			913			878			254			604			556			(748)			666			3,327

Mortgage fees and related income	$	2,376		$	2,265		$	2,008		$	723		$	1,380		$	1,100		$	(489)		$	2,714		$	3,855

(a)	Represents the aggregate impact of changes in model inputs and assumptions such as costs to service, home prices, mortgage spreads, ancillary income, and assumptions used to derive prepayment speeds, as well as changes to the valuation models themselves.

Page 8


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
MORTGAGE PRODUCTION AND SERVICING (continued)
SELECTED BALANCE SHEET DATA
Period-end loans:
Prime mortgage, including option ARMs (a)	$	17,153		$	17,454		$	17,268		$	16,891		$	14,800		$	14,260		$	14,147		$	16,891		$	14,186
Loans held-for-sale and loans at fair value (b)		15,250			14,254			12,496			12,694			13,153			13,558			12,234			12,694			14,863
Average loans:
Prime mortgage, including option ARMs (a)		17,381			17,478			17,238			15,733			14,451			14,083			14,037			14,580			13,422
Loans held-for-sale and loans at fair value (b)		17,879			17,694			15,621			16,680			16,608			14,613			17,519			16,354			15,395
Average assets		59,769			60,534			58,862			60,473			59,677			58,072			61,354			59,891			57,778
Repurchase liability (period-end)		2,779			2,997			3,213			3,213			3,213			3,213			3,205			3,213			3,000

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries):
Prime mortgage, including option ARMs		4			1			-			1			2			(2)			4			5			41
Net charge-off/(recovery) rate:
Prime mortgage, including option ARMs		0.09	%		0.02	%		-	%		0.03	%		0.06	%		(0.06)	%		0.12	%		0.03	%		0.31	%
30+ day delinquency rate (c)		3.10			3.00			3.01			3.15			3.35			3.30			3.21			3.15			3.44
Nonperforming assets (d)	$	700		$	708		$	708		$	716		$	691		$	662		$	658		$	716			729

BUSINESS METRICS (in billions)
Origination volume by channel
Retail	$	25.5		$	26.1		$	23.4		$	23.1		$	22.4		$	20.7		$	21.0		$	87.2		$	68.8
Wholesale (e)		-			0.2			-			0.1			0.1			0.1			0.2			0.5			1.3
Correspondent (e)		20.1			16.5			14.2			14.9			13.4			10.3			13.5			52.1			75.3
CNT (negotiated transactions)		1.7			1.1			0.8			0.5			0.9			2.9			1.5			5.8			10.2

Total origination volume		47.3			43.9			38.4			38.6			36.8			34.0			36.2			145.6			155.6


Application volume by channel
Retail		44.7			43.1			40.0			34.6			37.7			33.6			31.3			137.2			115.1
Wholesale (e)		0.2			0.1			0.2			0.2			0.2			0.3			0.3			1.0			2.4
Correspondent (e)		28.3			23.7			19.7			17.8			20.2			14.9			13.6			66.5			97.3

Total application volume		73.2			66.9			59.9			52.6			58.1			48.8			45.2			204.7			214.8


Third-party mortgage loans serviced (period-end)		811.4			860.0			884.2			902.2			924.5			940.8			955.0			902.2			967.5
Third-party mortgage loans serviced (average)		825.7			866.7			892.6			913.2			931.4			947.0			958.7			937.6			1,037.6
MSR net carrying value (period-end)		7.1			7.1			8.0			7.2			7.8			12.2			13.1			7.2			13.6
Ratio of MSR net carrying value (period-end) to third-party mortgage loans serviced (period-end)		0.88	%		0.83	%		0.90	%		0.80	%		0.84	%		1.30	%		1.37	%		0.80	%		1.41	%
Ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average)		0.46			0.47			0.47			0.45			0.44			0.43			0.45			0.44			0.44
MSR revenue multiple (f)		1.91x			1.77x			1.91x			1.78x			1.91x			3.02x			3.04x			1.82x			3.20x

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

(b)	Predominantly consists 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 and Condensed Average Balance Sheets.

(c)

At September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, excluded mortgage loans insured by U.S. government agencies of $12.1 billion, $13.0 billion, $12.7 billion, $12.6 billion, $10.5 billion, $10.1 billion, $9.5 billion and $10.3 billion, respectively, that are 30 or more days past due. These amounts were excluded as reimbursement of insured amounts is proceeding normally.

(d)

(e)	Includes rural housing loans sourced through brokers and correspondents, which are underwritten and closed with pre-funding loan approval from the U.S. Department of Agriculture Rural Development, which acts as the guarantor in the transaction.

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

Page 9


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	9		$	13		$	8		$	(13)		$	23		$	20		$	8		$	38		$	115
Net interest income		997			1,027			1,073			1,073			1,128			1,197			1,156			4,554			5,432

Total net revenue		1,006			1,040			1,081			1,060			1,151			1,217			1,164			4,592			5,547
Provision for credit losses		520			(554)			(192)			646			899			954			1,076			3,575			8,231
Noninterest expense		386			412			419			432			363			371			355			1,521			1,627

Income/(loss) before income tax expense/(benefit)		100			1,182			854			(18)			(111)			(108)			(267)			(504)			(4,311)

Net income/(loss)	$	60		$	717		$	518		$	(11)		$	(67)		$	(66)		$	(162)		$	(306)		$	(2,493)


Overhead ratio		38	%		40	%		39	%		41	%		32	%		30	%		30	%		33	%		29	%

BUSINESS METRICS
Loans, excluding PCI loans
Period-end loans owned:
Home equity	$	69,686		$	72,833		$	75,207		$	77,800		$	80,278		$	82,751		$	85,253		$	77,800		$	88,385
Prime mortgage, including option ARMs		41,404			42,037			43,152			44,284			45,439			46,994			48,552			44,284			49,768
Subprime mortgage		8,552			8,945			9,289			9,664			10,045			10,441			10,841			9,664			11,287
Other		653			675			692			718			741			767			801			718			857

Total period-end loans owned	$	120,295		$	124,490		$	128,340		$	132,466		$	136,503		$	140,953		$	145,447		$	132,466		$	150,297
Average loans owned:
Home equity	$	71,620		$	74,069		$	76,600		$	79,106		$	81,568		$	84,065		$	86,907		$	82,886		$	94,835
Prime mortgage, including option ARMs		41,628			42,543			43,701			44,886			46,165			47,615			49,273			46,971			53,431
Subprime mortgage		8,774			9,123			9,485			9,880			10,268			10,667			11,086			10,471			12,729
Other		665			684			707			729			753			785			829			773			954

Total average loans owned	$	122,687		$	126,419		$	130,493		$	134,601		$	138,754		$	143,132		$	148,095		$	141,101		$	161,949

PCI loans
Period-end loans owned:
Home equity	$	21,432		$	21,867		$	22,305		$	22,697		$	23,105		$	23,535		$	23,973		$	22,697		$	24,459
Prime mortgage		14,038			14,395			14,781			15,180			15,626			16,200			16,725			15,180			17,322
Subprime mortgage		4,702			4,784			4,870			4,976			5,072			5,187			5,276			4,976			5,398
Option ARMs		21,024			21,565			22,105			22,693			23,325			24,072			24,791			22,693			25,584

Total period-end loans owned	$	61,196		$	62,611		$	64,061		$	65,546		$	67,128		$	68,994		$	70,765		$	65,546		$	72,763
Average loans owned:
Home equity	$	21,620		$	22,076		$	22,488		$	22,872		$	23,301		$	23,727		$	24,170		$	23,514		$	25,455
Prime mortgage		14,185			14,590			14,975			15,405			15,909			16,456			16,974			16,181			18,526
Subprime mortgage		4,717			4,824			4,914			5,024			5,128			5,231			5,301			5,170			5,671
Option ARMs		21,237			21,823			22,395			23,009			23,666			24,420			25,113			24,045			27,220

Total average loans owned	$	61,759		$	63,313		$	64,772		$	66,310		$	68,004		$	69,834		$	71,558		$	68,910		$	76,872

Total Real Estate Portfolios
Period-end loans owned:
Home equity	$	91,118		$	94,700		$	97,512		$	100,497		$	103,383		$	106,286		$	109,226		$	100,497		$	112,844
Prime mortgage, including option ARMs		76,466			77,997			80,038			82,157			84,390			87,266			90,068			82,157			92,674
Subprime mortgage		13,254			13,729			14,159			14,640			15,117			15,628			16,117			14,640			16,685
Other		653			675			692			718			741			767			801			718			857

Total period-end loans owned	$	181,491		$	187,101		$	192,401		$	198,012		$	203,631		$	209,947		$	216,212		$	198,012		$	223,060
Average loans owned:
Home equity	$	93,240		$	96,145		$	99,088		$	101,978		$	104,869		$	107,792		$	111,077		$	106,400		$	120,290
Prime mortgage, including option ARMs		77,050			78,956			81,071			83,300			85,740			88,491			91,360			87,197			99,177
Subprime mortgage		13,491			13,947			14,399			14,904			15,396			15,898			16,387			15,641			18,400
Other		665			684			707			729			753			785			829			773			954

Total average loans owned	$	184,446		$	189,732		$	195,265		$	200,911		$	206,758		$	212,966		$	219,653		$	210,011		$	238,821
Average assets		173,613			177,698			182,254			187,651			193,692			200,116			207,175			197,096			226,961
Home equity origination volume		375			360			312			277			294			307			249			1,127			1,203

Page 10


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
REAL ESTATE PORTFOLIOS (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs, excluding PCI loans (a)
Home equity	$	1,120		$	466		$	542		$	579		$	581		$	592		$	720		$	2,472		$	3,444
Prime mortgage, including option ARMs		143			114			131			151			172			198			161			682			1,573
Subprime mortgage		152			112			130			143			141			156			186			626			1,374
Other		5			4			5			3			5			8			9			25			59

Total net charge-offs	$	1,420		$	696		$	808		$	876		$	899		$	954		$	1,076		$	3,805		$	6,450
Net charge-off rate, excluding PCI loans (a)
Home equity		6.22	%		2.53	%		2.85	%		2.90	%		2.82	%		2.83	%		3.36	%		2.98	%		3.63	%
Prime mortgage, including option ARMs		1.37			1.08			1.21			1.33			1.48			1.67			1.32			1.45			2.95
Subprime mortgage		6.89			4.94			5.51			5.74			5.43			5.85			6.80			5.98			10.82
Other		2.99			2.35			2.84			1.63			2.83			4.01			4.56			3.23			5.90
Total net charge-off rate, excluding PCI loans		4.60			2.21			2.49			2.58			2.57			2.67			2.95			2.70			3.98
Net charge-off rate - reported (a)
Home equity		4.78	%		1.95	%		2.20	%		2.25	%		2.20	%		2.20	%		2.63	%		2.32	%		2.86	%
Prime mortgage, including option ARMs		0.74			0.58			0.65			0.72			0.80			0.90			0.71			0.78			1.59
Subprime mortgage		4.48			3.23			3.63			3.81			3.63			3.94			4.60			4.00			7.47
Other		2.99			2.35			2.84			1.63			2.83			4.01			4.56			3.23			5.90
Total net charge-off rate - reported		3.06			1.48			1.66			1.73			1.72			1.80			1.99			1.81			2.70

30+ day delinquency rate, excluding PCI loans (b)		5.12	%		5.16	%		5.32	%		5.69	%		5.80	%		5.98	%		6.22	%		5.69	%		6.45	%
Allowance for loan losses, excluding PCI loans	$	5,568		$	6,468		$	7,718		$	8,718		$	9,718		$	9,718		$	9,718		$	8,718		$	9,718
Allowance for PCI loans		5,711			5,711			5,711			5,711			4,941			4,941			4,941			5,711			4,941

Allowance for loan losses	$	11,279		$	12,179		$	13,429		$	14,429		$	14,659		$	14,659		$	14,659		$	14,429		$	14,659
Nonperforming assets (c)(d)(e)		8,669			7,340			7,738			6,638			7,112			7,729			8,152			6,638			8,424
Allowance for loan losses to period-end loans retained		6.21	%		6.51	%		6.98	%		7.29	%		7.20	%		6.98	%		6.78	%		7.29	%		6.57	%
Allowance for loan losses to period-end loans retained, excluding PCI loans		4.63			5.20			6.01			6.58			7.12			6.90			6.68			6.58			6.47

(a)

Net charge-offs and net charge-off rates for the three months ended September 30, 2012 included $825 million of incremental charge-offs of Chapter 7 loans. Excluding these incremental charges-offs, for the third quarter of 2012, net charge-offs would have been $402 million, $97 million and $91 million for the home equity, prime mortgage, including option ARMs, and subprime mortgage portfolios, respectively. Net charge-off rates for the same period excluding these incremental charge-offs and PCI loans would have been 2.23%, 0.93% and 4.13% for the home equity, prime mortgage, including option ARMs, and subprime mortgage portfolios, respectively. For further information, see Consumer and Credit Portfolio on pages 84-86 of JPMorgan Chase’s third quarter 2012 Form 10-Q.

(b)	The delinquency rate for PCI loans was 20.65%, 21.38%, 21.72%, 23.30%, 24.44%, 26.20%, 27.36% and 28.20% at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively.

(c)	Excludes PCI loans. Because the Firm is recognizing interest income on each pool of PCI loans, they are all considered to be performing.

(d)	Nonperforming assets at September 30, 2012 included Chapter 7 loans, based upon regulatory guidance.

(e)

Beginning March 31, 2012, and for all periods thereafter, nonperforming assets included performing junior liens that are subordinate to senior liens that are 90 days or more past due based on regulatory guidance issued in the first quarter of 2012. For further information, see footnote (g) on page 6.

Page 11


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
CARD, MERCHANT SERVICES & AUTO (a)
Credit card income	$	1,032		$	1,015		$	948		$	1,053		$	1,053		$	1,123		$	898		$	4,127		$	3,514
All other income		248			231			303			232			201			183			149			765			764

Noninterest revenue		1,280			1,246			1,251			1,285			1,254			1,306			1,047			4,892			4,278
Net interest income		3,443			3,279			3,463			3,529			3,521			3,455			3,744			14,249			16,194

Total net revenue		4,723			4,525			4,714			4,814			4,775			4,761			4,791			19,141			20,472
Provision for credit losses		1,231			734			738			1,060			1,264			944			353			3,621			8,570
Noninterest expense		1,920			2,096			2,029			2,025			2,115			1,988			1,917			8,045			7,178

Income before income tax expense		1,572			1,695			1,947			1,729			1,396			1,829			2,521			7,475			4,724

Net income	$	954		$	1,030		$	1,183		$	1,051		$	849		$	1,110		$	1,534		$	4,544		$	2,872


Overhead ratio		41	%		46	%		43	%		42	%		44	%		42	%		40	%		42	%		35	%

SELECTED BALANCE SHEET DATA (period-end)
Loans:
Credit Card	$	124,537		$	124,705		$	125,331		$	132,277		$	127,135		$	125,523		$	128,803		$	132,277		$	137,676
Auto		48,920			48,468			48,245			47,426			46,659			46,796			47,411			47,426			48,367
Student		11,868			12,232			13,162			13,425			13,751			14,003			14,288			13,425			14,454

Total loans	$	185,325		$	185,405		$	186,738		$	193,128		$	187,545		$	186,322		$	190,502		$	193,128		$	200,497

SELECTED BALANCE SHEET DATA (average)
Total assets	$	196,302		$	197,301		$	199,449		$	202,226		$	199,974		$	198,044		$	204,441		$	201,162		$	213,041
Loans:
Credit Card		124,339			125,195			127,616			128,619			126,536			125,038			132,537			128,167			144,367
Auto		48,399			48,273			47,704			46,947			46,549			46,966			47,690			47,034			47,603
Student		12,037			12,944			13,348			13,543			13,865			14,135			14,410			13,986			15,945

Total loans	$	184,775		$	186,412		$	188,668		$	189,109		$	186,950		$	186,139		$	194,637		$	189,187		$	207,915

BUSINESS METRICS
Credit Card, excluding Commercial Card
Sales volume (in billions)	$	96.6		$	96.0		$	86.9		$	93.4		$	87.3		$	85.5		$	77.5		$	343.7		$	313.0
New accounts opened		1.6			1.6			1.7			2.2			2.0			2.0			2.6			8.8			11.3
Open accounts		63.9			63.7			64.2			65.2			64.3			65.4	(b)		91.9			65.2			90.7
Number of accounts with sales activity		29.1			29.3			29.0			30.7			28.6			28.8			35.1			30.7			39.9
% of accounts acquired online		52	%		49	%		46	%		44	%		35	%		29	%		22	%		32	%		15	%

Merchant Services
Merchant processing volume (in billions)	$	163.6		$	160.2		$	152.8		$	152.6		$	138.1		$	137.3		$	125.7		$	553.7		$	469.3
Total transactions (in billions)		7.4			7.1			6.8			6.8			6.1			5.9			5.6			24.4			20.5

Auto and Student
Origination volume (in billions)
Auto	$	6.3		$	5.8		$	5.8		$	4.9		$	5.9		$	5.4		$	4.8		$	21.0		$	23.0
Student		0.1			-			0.1			0.1			0.1			-			0.1			0.3			1.9

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

(b)	The decrease in the second quarter of 2011 reflected the impact of portfolio sales.

Page 12


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
CARD, MERCHANT SERVICES & AUTO (continued) (a)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Credit Card	$	1,116		$	1,345		$	1,386		$	1,390		$	1,499		$	1,810		$	2,226		$	6,925		$	14,037
Auto (b)		90			21			33			44			42			19			47			152			298
Student		80			119			69			126			93			135			80			434			387

Total net charge-offs		1,286			1,485			1,488			1,560			1,634			1,964			2,353			7,511			14,722
Net charge-off rate:
Credit Card (c)		3.57	%		4.35	%		4.40	%		4.29	%		4.70	%		5.82	%		6.97	%		5.44	%		9.73	%
Auto (b)		0.74			0.17			0.28			0.37			0.36			0.16			0.40			0.32			0.63
Student (d)		2.64			3.70			2.08			3.69			2.66			3.83			2.25			3.10			2.61
Total net charge-off rate		2.77			3.22			3.19			3.27			3.47			4.24			4.98			3.99			7.12

Delinquency rates
30+ day delinquency rate:
Credit Card (e)		2.15			2.14			2.56			2.81			2.90			2.98			3.57			2.81			4.14
Auto		1.11			0.90			0.79			1.13			1.01			0.98			0.97			1.13			1.22
Student (f)		2.38			1.95			2.06			1.78			1.93			1.70			2.01			1.78			1.53
Total 30+ day delinquency rate		1.89			1.80			2.07			2.32			2.36			2.38			2.79			2.32			3.23
90+ day delinquency rate - Credit Card (e)		0.99			1.04			1.37			1.44			1.43			1.55			1.93			1.44			2.25

Nonperforming assets (b)(g)	$	284		$	219		$	242		$	228		$	232		$	233		$	275		$	228		$	269
Allowance for loan losses:
Credit Card		5,503			5,499			6,251			6,999			7,528			8,042			9,041			6,999			11,034
Auto and Student		954			1,009			1,010			1,010			1,009			879			899			1,010			899

Total allowance for loan losses		6,457			6,508			7,261			8,009			8,537			8,921			9,940			8,009			11,933
Allowance for loan losses to period-end loans:
Credit Card (e)		4.42	%		4.41	%		5.02	%		5.30	%		5.93	%		6.41	%		7.24	%		5.30	%		8.14	%
Auto and Student		1.57			1.66			1.64			1.66			1.67			1.45			1.46			1.66			1.43
Total allowance for loan losses to period-end loans		3.49			3.51			3.91			4.15			4.55			4.79			5.33			4.15			6.02

CARD SERVICES SUPPLEMENTAL INFORMATION
Noninterest revenue	$	971		$	953		$	949		$	985		$	957		$	1,016		$	782		$	3,740		$	3,277
Net interest income		2,923			2,755			2,928			2,989			2,984			2,911			3,200			12,084			13,886

Total net revenue		3,894			3,708			3,877			3,974			3,941			3,927			3,982			15,824			17,163
Provision for credit losses		1,116			595			636			890			999			810			226			2,925			8,037
Noninterest expense		1,517			1,703			1,636			1,633			1,734			1,622			1,555			6,544			5,797

Income before income tax expense		1,261			1,410			1,605			1,451			1,208			1,495			2,201			6,355			3,329

Net income	$	769		$	860		$	979		$	885		$	737		$	911		$	1,343		$	3,876		$	2,074


Percentage of average loans:
Noninterest revenue		3.11	%		3.06	%		2.99	%		3.04	%		3.00	%		3.26	%		2.39	%		2.92	%		2.27	%
Net interest income		9.35			8.85			9.23			9.22			9.36			9.34			9.79			9.43			9.62
Total net revenue		12.46			11.91			12.22			12.26			12.36			12.60			12.18			12.35			11.89

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

(b)

Net charge-offs and net charge-off rates for the three months ended September 30, 2012 included $55 million of incremental charge-offs of Chapter 7 loans. Excluding these incremental charge-offs, for the third quarter of 2012, net charge-offs would have been $35 million, and the net charge-off rate would have been 0.29%. Nonperforming assets at September 30, 2012 included $65 million of Chapter 7 loans, based upon regulatory guidance.

(c)

Average credit card loans included loans held-for-sale of $109 million, $782 million, $821 million, $97 million, $1 million, $276 million and $3.0 billion for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively, and $833 million and $148 million for full year 2011 and 2010, respectively. These amounts are excluded when calculating the net charge-off rate.

(d)	Average student loans included loans held-for-sale of $1.1 billion for full year 2010. There were no loans held-for-sale for all other periods. This amount is excluded when calculating the net charge-off rate.

(e)

Period-end credit card loans included loans held-for-sale of $106 million, $112 million, $856 million, $102 million, $94 million, $4.0 billion and $2.2 billion at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, March 31, 2011 and December 31, 2010, respectively. There were no loans held-for-sale at June 30, 2011. No allowance for loan losses was recorded for these loans. These amounts are excluded when calculating delinquency rates and the allowance for loan losses to period-end loans.

(f)

Excluded student loans insured by U.S. government agencies under the FFELP of $910 million, $931 million, $1.0 billion, $989 million, $995 million, $968 million, $1.0 billion and $1.1 billion at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 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 excluded student loans insured by U.S. government agencies under the FFELP of $536 million, $547 million, $586 million, $551 million, $567 million, $558 million, $615 million and $625 million at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

Page 13


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,429		$	1,245		$	1,375		$	1,119		$	1,039		$	1,922		$	1,779		$	5,859		$	6,186
Principal transactions (a)		2,263			3,070			3,211			371			2,260			2,314			3,402			8,347			8,474
Lending- and deposit-related fees		486			488			475			529			520			532			517			2,098			2,075
Asset management, administration and commissions		1,104			1,207			1,219			1,148			1,219			1,274			1,314			4,955			5,110
All other income		290			251			208			159			371			406			328			1,264			1,044

Noninterest revenue		5,572			6,261			6,488			3,326			5,409			6,448			7,340			22,523			22,889
Net interest income		2,788			2,725			2,850			2,994			2,877			2,830			2,760			11,461			10,588

TOTAL NET REVENUE (b)		8,360			8,986			9,338			6,320			8,286			9,278			10,100			33,984			33,477

Provision for credit losses		(60)			29			(3)			291			34			(185)			(425)			(285)			(1,247)

NONINTEREST EXPENSE
Compensation expense		2,755			2,718			3,623			1,832			2,555			3,271			3,996			11,654			12,418
Noncompensation expense		2,595			2,575			2,588			2,700			2,714			2,514			2,397			10,325			10,451

TOTAL NONINTEREST EXPENSE		5,350			5,293			6,211			4,532			5,269			5,785			6,393			21,979			22,869


Income before income tax expense		3,070			3,664			3,130			1,497			2,983			3,678			4,132			12,290			11,855
Income tax expense		1,078			1,288			1,097			521			1,042			1,288			1,446			4,297			4,137

NET INCOME	$	1,992		$	2,376		$	2,033		$	976		$	1,941		$	2,390		$	2,686		$	7,993		$	7,718


FINANCIAL RATIOS
ROE (c)		17	%		20	%		17	%		8	%		16	%		20	%		23	%		17	%		17	%
Overhead ratio		64			59			67			72			64			62			63			65			68
Compensation expense as a percent of total net revenue (d)		33			30			39			29			31			35			40			34			37

REVENUE BY BUSINESS
Advisory	$	389		$	356		$	281		$	397		$	365		$	601		$	429		$	1,792		$	1,469
Equity underwriting		235			250			276			169			178			455			379			1,181			1,589
Debt underwriting		805			639			818			553			496			866			971			2,886			3,128

Total investment banking fees		1,429			1,245			1,375			1,119			1,039			1,922			1,779			5,859			6,186
Treasury Services		1,064			1,074			1,052			1,051			969			930			891			3,841			3,698
Lending		357			370			222			279			295			241			239			1,054			811

Total Banking		2,850			2,689			2,649			2,449			2,303			3,093			2,909			10,754			10,695
Fixed Income Markets		3,726			3,493			5,016			2,626			2,799			4,216			5,143			14,784			14,738
Equity Markets		1,044			1,043			1,424			806			1,047			1,145			1,478			4,476			4,582
Securities Services		965			1,078			962			971			939			1,002			949			3,861			3,683
Credit Adjustments & Other (a)(e)		(225)			683			(713)			(532)			1,198			(178)			(379)			109			(221)

Total Markets & Investor Services		5,510			6,297			6,689			3,871			5,983			6,185			7,191			23,230			22,782

TOTAL NET REVENUE	$	8,360		$	8,986		$	9,338		$	6,320		$	8,286		$	9,278		$	10,100		$	33,984		$	33,477

(a)

Included debit valuation adjustments (“DVA”) related to derivatives and structured liabilities measured at fair value. DVA gains/(losses) were ($211) million, $755 million, ($907) million, ($567) million, $1.9 billion, $165 million and ($46) million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively, and $1.4 billion and $509 million for full year 2011 and 2010, respectively.

(b)

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 $492 million, $494 million, $509 million, $510 million, $440 million, $493 million and $438 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively, and $1.9 billion and $1.7 billion for full year 2011 and 2010, respectively.

(c)

Return on equity excluding DVA, a non-GAAP financial measure, was 18%, 16%, 22%, 11%, 7%, 20% and 23% for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively, and 15% and 16% for full year 2011 and 2010, respectively. For additional information on this measure, see non-GAAP financial measures on page 23.

(d)

Compensation expense as a percentage of total net revenue excluding DVA, a non-GAAP financial measure, was 32%, 33%, 35%, 27%, 40%, 36% and 39% for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively, and 36% and 38% for full year 2011 and 2010, respectively. In addition, compensation expense as a percent of total net revenue for full year 2010, excluding both DVA and 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 36%. For additional information on this measure, see non-GAAP financial measures on page 23.

(e)

Primarily includes net credit portfolio credit valuation adjustments (“CVA”) and its associated hedging activities; DVA related to both structured notes and derivatives; and nonperforming derivative receivable results effective in the first quarter of 2012 and thereafter. The results of the synthetic credit portfolio that was transferred from the Chief Investment Office effective July 2, 2012, which are reported in Fixed Income Markets, are not included.

Page 14


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


	QUARTERLY TRENDS																					FULL YEAR

	3Q12			2Q12			1Q12			4Q11			3Q11			2Q11			1Q11			2011			2010
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	904,090		$	897,413		$	879,691		$	845,095		$	887,097		$	865,580		$	904,066		$	845,095		$	870,631
Loans:
Loans retained (a)		107,903			114,620			108,287			111,099			94,449			90,040			83,630			111,099			80,208
Loans held-for-sale and loans at fair value		3,899			2,375			5,550			3,016			2,414			3,567			5,172			3,016			3,851

Total loans		111,802			116,995			113,837			114,115			96,863			93,607			88,802			114,115			84,059
Equity		47,500			47,500			47,500			47,000			47,000			47,000			47,000			47,000			46,500

SELECTED BALANCE SHEET DATA (average)
Assets	$	841,678		$	859,026		$	854,128		$	854,330		$	863,808		$	894,043		$	863,701		$	868,930		$	774,295
Trading assets - debt and equity instruments		296,811			305,972			315,176			314,776			331,756			376,368			370,833			348,234			309,383
Trading assets - derivative receivables		74,812			74,960			76,220			76,782			79,044			69,346			67,462			73,200			70,286
Loans:
Loans retained (a)		111,263			112,952			107,148			101,885			92,466			87,557			82,557			91,173			77,620
Loans held-for-sale and loans at fair value		2,809			3,256			2,867			2,184			2,533			4,256			3,938			3,221			3,268

Total loans		114,072			116,208			110,015			104,069			94,999			91,813			86,495			94,394			80,888

Equity		47,500			47,500			47,500			47,000			47,000			47,000			47,000			47,000			46,500

Headcount		52,479			53,725			53,214			53,557			54,502			55,676			54,275			53,557			55,142

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(22)		$	(10)		$	(35)		$	199		$	(168)		$	7		$	123		$	161		$	736
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(b)		588			661			700			1,039			1,277			1,497			2,399			1,039			3,171
Nonaccrual loans held-for-sale and loans at fair value		213			158			182			166			150			193			259			166			460

Total nonaccrual loans		801			819			882			1,205			1,427			1,690			2,658			1,205			3,631

Derivative receivables (c)		282			451			317			293			281			213			180			293			159
Assets acquired in loan satisfactions		77			68			79			79			77			83			73			79			117

Total nonperforming assets		1,160			1,338			1,278			1,577			1,785			1,986			2,911			1,577			3,907
Allowance for credit losses:
Allowance for loan losses		1,459			1,498			1,455			1,501			1,386			1,252			1,399			1,501			1,928
Allowance for lending-related commitments		544			542			544			467			490			424			472			467			498

Total allowance for credit losses		2,003			2,040			1,999			1,968			1,876			1,676			1,871			1,968			2,426

Net charge-off/(recovery) rate (a)		(0.08)	%		(0.04)	%		(0.13)	%		0.77	%		(0.72)	%		0.03	%		0.60	%		0.18	%		0.95	%
Allowance for loan losses to period-end loans retained (a)		1.35			1.31			1.34			1.35			1.47			1.39			1.67			1.35			2.40
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits (d)		2.92			2.75			2.93			3.06			3.08			2.82			3.47			3.06			4.90
Allowance for loan losses to nonaccrual loans retained (a)(b)		248			227			208			144			109			84			58			144			61
Nonaccrual loans to total period-end loans		0.72			0.70			0.77			1.06			1.47			1.81			2.99			1.06			4.32

(a)	Loans retained included credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts.

(b)

Allowance for loan losses of $178 million, $202 million, $226 million, $263 million, $320 million, $377 million, $567 million and $1.1 billion were held against these nonaccrual loans at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 2010, respectively.

(c)	Prior to the first quarter of 2012, reported amounts had only included defaulted derivatives; effective in the first quarter of 2012, reported amounts in all periods included both defaulted derivatives as well as derivatives that have been risk rated as nonperforming.

(d)	Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, as a more relevant metric to reflect the allowance coverage of the retained lending portfolio.

Page 15


JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except rankings data and where otherwise noted)


	QUARTERLY TRENDS																	FULL YEAR

	3Q12			2Q12		1Q12		4Q11			3Q11		2Q11			1Q11		2011		2010
BUSINESS METRICS
Assets under custody (“AUC”) by asset class (period-end) (in billions):
Fixed Income	$	11,545		$	11,302	$	11,332	$	10,926		$	10,871	$	10,686		$	10,437	$	10,926	$	10,364
Equity		5,328			5,025		5,365		4,878			4,401		5,267			5,238		4,878		4,850
Other (a)		1,346			1,338		1,171		1,066			978		992			944		1,066		906

Total AUC	$	18,219		$	17,665	$	17,868	$	16,870		$	16,250	$	16,945		$	16,619	$	16,870	$	16,120

Customer deposits and other third party liabilities (average) (b)		351,383			348,102		356,964		364,196			341,107		302,858			265,720		318,802		248,451

Trade finance loans (period-end)		35,142			35,291		35,692		36,696			30,104		27,473			25,499		36,696		21,156

	NINE MONTHS ENDED SEPTEMBER 30, 2012							FULL YEAR 2011					FULL YEAR 2010
MARKET SHARES AND RANKINGS (c)	Market Share			Rankings				Market Share			Rankings		Market Share			Rankings
Global investment banking fees (d)		7.7	%		#1				8.1	%		#1		7.6	%		#1
Debt, equity and equity-related
Global		7.2			1				6.7			1		7.2			1
U.S.		11.2			1				11.1			1		11.1			1
Syndicated loans
Global		9.8			1				10.8			1		8.5			2
U.S.		18.0			1				21.2			1		19.1			2
Long-term debt (e)
Global		7.1			1				6.7			1		7.2			2
U.S.		11.3			1				11.2			1		10.9			2
Equity and equity-related
Global (f)		7.8			4				6.8			3		7.3			3
U.S.		10.5			4				12.5			1		13.1			2
Announced M&A (g)
Global		19.8			2				18.3			2		15.9			4
U.S.		21.0			2				26.7			2		21.9			3

(a)	Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and nonsecurities contracts.

(b)

Customer deposits and other third party liabilities pertain to the Treasury Services and Securities Services businesses, and include deposits, as well as deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements) as part of customer cash management programs.

(c)

Source: Dealogic. Global Investment Banking fees reflects the ranking of fees and market share. Remainder of rankings reflects transaction volume and market share. Global announced M&A is based on transaction value at announcement; because of joint M&A assignments, M&A market share of all participants will add up to more than 100%. All other transaction volume-based rankings are based on proceeds, with full credit to each book manager/equal if joint.

(d)	Global investment banking fees rankings exclude money market, short-term debt and shelf deals.

(e)	Long-term debt rankings 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.

(f)	Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.

(g)	Announced M&A reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S. involvement ranking.

Page 16


JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)


	QUARTERLY TRENDS														FULL YEAR

INTERNATIONAL METRICS	3Q12		2Q12		1Q12		4Q11		3Q11		2Q11		1Q11		2011		2010
Total net revenue (a)
Europe/Middle East/Africa	$	2,443	$	2,885	$	3,050	$	2,037	$	2,656	$	3,180	$	3,229	$	11,102	$	9,740
Asia/Pacific		1,031		1,020		1,110		842		1,273		1,064		1,410		4,589		4,775
Latin America/Caribbean		392		375		420		351		234		421		403		1,409		1,154

Total international net revenue		3,866		4,280		4,580		3,230		4,163		4,665		5,042		17,100		15,669
North America		4,494		4,706		4,758		3,090		4,123		4,613		5,058		16,884		17,808

Total net revenue	$	8,360	$	8,986	$	9,338	$	6,320	$	8,286	$	9,278	$	10,100	$	33,984	$	33,477


Loans (period-end) (a)
Europe/Middle East/Africa	$	27,866	$	33,041	$	29,337	$	29,484	$	26,156	$	25,077	$	22,832	$	29,484	$	21,072
Asia/Pacific		27,215		27,058		26,637		27,803		24,307		22,549		20,621		27,803		18,251
Latin America/Caribbean		9,730		9,982		9,936		9,692		8,552		7,420		6,337		9,692		5,928

Total international loans		64,811		70,081		65,910		66,979		59,015		55,046		49,790		66,979		45,251
North America		43,092		44,539		42,377		44,120		35,434		34,994		33,840		44,120		34,957

Total loans	$	107,903	$	114,620	$	108,287	$	111,099	$	94,449	$	90,040	$	83,630	$	111,099	$	80,208


Customer deposits and other third party liabilities (average) (a)(b)
Europe/Middle East/Africa	$	125,720	$	127,173	$	127,794	$	130,862	$	129,608	$	125,911	$	108,997	$	123,920	$	102,014
Asia/Pacific		50,862		50,331		50,197		49,407		42,987		42,472		39,123		43,524		32,862
Latin America/Caribbean		10,141		10,453		11,852		11,563		12,722		13,506		12,720		12,625		11,558

Total international		186,723		187,957		189,843		191,832		185,317		181,889		160,840		180,069		146,434
North America		164,660		160,145		167,121		172,364		155,790		120,969		104,880		138,733		102,017

Total customer deposits and other third party liabilities	$	351,383	$	348,102	$	356,964	$	364,196	$	341,107	$	302,858	$	265,720	$	318,802	$	248,451


AUC (period-end) (in billions) (a)
North America	$	10,206	$	10,048	$	9,998	$	9,735	$	9,611	$	9,976	$	9,901	$	9,735	$	9,836
All other regions		8,013		7,617		7,870		7,135		6,639		6,969		6,718		7,135		6,284

Total AUC	$	18,219	$	17,665	$	17,868	$	16,870	$	16,250	$	16,945	$	16,619	$	16,870	$	16,120

(a)	Total net revenue is based primarily on the domicile of the client or location of the trading desk, as applicable. Loans outstanding (excluding loans held for sale and loans carried at fair value), customer deposits and AUC are based predominantly on the domicile of the client.

(b)

Page 17

JPMORGAN CHASE & CO.

CORPORATE/PRIVATE EQUITY

FINANCIAL HIGHLIGHTS

(in millions, except headcount data)


	QUARTERLY TRENDS																	FULL YEAR
	3Q12			2Q12			1Q12			4Q11		3Q11		2Q11		1Q11		2011		2010
INCOME STATEMENT
REVENUE
Principal transactions (a)	$	(304)		$	(3,576)	(e)	$	(547)		$	324	$	(933)	$	745	$	1,298	$	1,434	$	2,208
Securities gains		459			1,013			449			54		607		837		102		1,600		2,898
All other income		1,044	(d)		153			1,111	(f)		75		184		258		78		595		245

Noninterest revenue		1,199			(2,410)			1,013			453		(142)		1,840		1,478		3,629		5,351
Net interest income		(625)			(205)			16			245		8		219		34		506		2,063

TOTAL NET REVENUE (b)		574			(2,615)			1,029			698		(134)		2,059		1,512		4,135		7,414

Provision for credit losses		(11)			(11)			(9)			(10)		(7)		(9)		(10)		(36)		14

NONINTEREST EXPENSE
Compensation expense		555			623			795			573		527		590		634		2,324		2,276
Noncompensation expense (c)		1,550			1,264			3,284			1,601		1,946		2,040		1,106		6,693		8,641

Subtotal		2,105			1,887			4,079			2,174		2,473		2,630		1,740		9,017		10,917
Net expense allocated to other businesses		(1,370)			(1,338)			(1,310)			(1,260)		(1,257)		(1,212)		(1,180)		(4,909)		(4,607)

TOTAL NONINTEREST EXPENSE		735			549			2,769			914		1,216		1,418		560		4,108		6,310


Income/(loss) before income tax expense/(benefit)		(150)			(3,153)			(1,731)			(206)		(1,343)		650		962		63		1,090
Income tax expense/(benefit)		(367)			(1,378)			(709)			(439)		(697)		138		239		(759)		(190)

NET INCOME/(LOSS)	$	217		$	(1,775)		$	(1,022)		$	233	$	(646)	$	512	$	723	$	822	$	1,280


MEMO:
REVENUE
Private Equity	$	(135)		$	410		$	254		$	(113)	$	(546)	$	796	$	699	$	836	$	1,239
Treasury and Chief Investment Office (“CIO”)		713			(3,434)			(233)			845		102		1,426		823		3,196		6,642
Other Corporate		(4)			409			1,008			(34)		310		(163)		(10)		103		(467)

TOTAL NET REVENUE	$	574		$	(2,615)		$	1,029		$	698	$	(134)	$	2,059	$	1,512	$	4,135	$	7,414


NET INCOME/(LOSS)
Private Equity	$	(89)		$	197		$	134		$	(89)	$	(347)	$	444	$	383	$	391	$	588
Treasury and CIO		369			(2,078)			(227)			417		(94)		670		356		1,349		3,576
Other Corporate		(63)			106			(929)			(95)		(205)		(602)		(16)		(918)		(2,884)

TOTAL NET INCOME/(LOSS)	$	217		$	(1,775)		$	(1,022)		$	233	$	(646)	$	512	$	723	$	822	$	1,280


TOTAL ASSETS (period-end)	$	685,338		$	667,133		$	713,263		$	693,108	$	693,556	$	672,606	$	591,309	$	693,108	$	526,556

Headcount		22,517			22,156			21,529			21,334		21,110		20,760		20,291		21,334		19,419

(a)

During the third quarter, CIO effectively closed out the index credit derivative positions that were retained following the transfer of the synthetic credit portfolio to the CIB on July 2, 2012. Principal transactions revenue included losses in CIO for the three months ended September 30, 2012 of $449 million on this portfolio. Also included losses in CIO of $4.4 billion and $1.4 billion on the synthetic credit portfolio for the three months ended June 30, 2012 and March 31, 2012, respectively, and $6.2 billion for the nine months ended September 30, 2012. Results of the portfolio that was transferred to CIB are not included herein.

(b)

Total net revenue included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $109 million, $118 million, $99 million, $92 million, $73 million, $69 million and $64 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31 2011, respectively, and $298 million and $226 million for full year 2011 and 2010, respectively.

(c)

Includes litigation expense of $0.7 billion, $0.3 billion, $2.5 billion, $0.5 billion, $1.0 billion, $1.3 billion and $0.4 billion for the three months ended September 30. 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011 and March 31, 2011, respectively, and $3.2 billion and $5.7 billion for full year 2011 and 2010, respectively.

(d)

Included an extinguishment gain of $888 million related to the redemption of trust preferred capital debt securities for the three months ended September 30, 2012; the gain related to adjustments applied to the cost basis of these securities during the period they were in a qualifying hedge accounting relationship.

(e)

Included a gain of $545 million, reflecting the expected recovery on a Bear Stearns-related subordinated loan.

(f)

Includes a $1.1 billion benefit from the Washington Mutual bankruptcy settlement.

Page 18

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION

(in millions, except ratio data)


	Sep 30, 2012			Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Dec 31, 2010
NONPERFORMING ASSETS AND RATIOS
Wholesale loans
Loans retained	$	1,663		$	1,804		$	1,941		$	2,398		$	3,011		$	3,362		$	4,578		$	5,510
Loans held-for-sale and loans at fair value		246			194			214			183			176			214			289			496

Total wholesale loans		1,909			1,998			2,155			2,581			3,187			3,576			4,867			6,006


Consumer, excluding credit card loans
Home equity (a)(b)		3,254			2,615			2,766			1,287			1,290			1,308			1,263			1,263
Prime mortgage, including option ARMs (a)		3,570			3,139			3,258			3,462			3,656			4,024			4,166			4,320
Subprime mortgage (a)		1,868			1,544			1,569			1,781			1,932			2,058			2,106			2,210
Auto (a)		172			101			102			118			114			111			120			141
Business banking		521			587			649			694			756			770			810			832
Student and other		75			83			105			69			68			79			107			67

Total consumer, excluding credit card loans		9,460			8,069			8,449			7,411			7,816			8,350			8,572			8,833

Total credit card loans		1			1			1			1			2			2			2			2


Total consumer nonaccrual loans (c)		9,461			8,070			8,450			7,412			7,818			8,352			8,574			8,835

Total nonaccrual loans		11,370			10,068			10,605			9,993			11,005			11,928			13,441			14,841


Derivative receivables (d)		282			451			317			297			285			217			184			159
Assets acquired in loan satisfactions		829			878			1,031			1,025			1,178			1,290			1,524			1,682

Total nonperforming assets (e)		12,481			11,397			11,953			11,315			12,468			13,435			15,149			16,682
Wholesale lending-related commitments (f)		586			565			756			865			705			793			895			1,005

Total nonperforming exposure (e)	$	13,067		$	11,962		$	12,709		$	12,180		$	13,173		$	14,228		$	16,044		$	17,687


Total nonaccrual loans to total loans		1.57	%		1.38	%		1.47	%		1.38	%		1.58	%		1.73	%		1.96	%		2.14	%
Total wholesale nonaccrual loans to total wholesale loans		0.63			0.66			0.74			0.91			1.23			1.44			2.06			2.64
Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans		3.21			2.69			2.77			2.40			2.52			2.65			2.67			2.70

NONPERFORMING ASSETS BY LOB
Consumer & Community Banking (a)(b)(c)	$	10,096		$	8,766		$	9,250		$	8,189		$	8,676		$	9,266		$	9,757		$	10,123
Corporate & Investment Bank (d)		1,160			1,338			1,278			1,577			1,785			1,986			2,911			3,907
Commercial Banking		908			953			1,064			1,138			1,611			1,831			2,134			2,197
Asset Management (d)		242			271			286			336			322			264			267			382
Corporate/Private Equity (g)		75			69			75			75			74			88			80			73

TOTAL	$	12,481		$	11,397		$	11,953		$	11,315		$	12,468		$	13,435		$	15,149		$	16,682

(a)

Nonperforming assets at September 30, 2012 included $1.7 billion of Chapter 7 loans, based upon regulatory guidance, consisting of $820 million of home equity loans, $481 million of prime mortgage, including option ARM loans, $356 million of subprime mortgage loans, and $65 million of auto loans.

(b)

Included $1.3 billion, $1.5 billion and $1.6 billion of performing junior liens that are subordinate to senior liens that are 90 days or more past due at September 30, 2012, June 30, 2012 and March 31, 2012, respectively. Beginning March 31, 2012, such junior liens are reported as nonaccrual loans based upon regulatory guidance issued in the first quarter of 2012. Of these totals, $1.2 billion, $1.3 billion and $1.4 billion were current at September 30, 2012, June 30, 2012 and March 31, 2012, respectively.

(c)

Excludes PCI loans. Because the Firm is recognizing interest income on each pool of PCI loans, they are all considered to be performing.

(d)

Prior to the first quarter of 2012, reported amounts had only included defaulted derivatives; effective in the first quarter of 2012, reported amounts in all periods presented include both defaulted derivatives as well as derivatives that have been risk rated as nonperforming.

(e)

At September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011 and December 31, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $11.0 billion, $11.9 billion, $11.8 billion, $11.5 billion, $9.5 billion, $9.1 billion, $8.8 billion and $9.4 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $1.5 billion, $1.3 billion, $1.2 billion, $954 million, $2.4 billion, $2.4 billion, $2.3 billion and $1.9 billion, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $536 million, $547 million, $586 million, $551 million, $567 million, $558 million, $615 million and $625 million, respectively, that are 90 or more days past due. These amounts were excluded from nonaccrual loans 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.

(f)

Represent commitments that are risk rated as nonaccrual.

(g)

Predominantly relates to retained prime mortgage loans.

Page 19


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


	QUARTERLY TRENDS														FULL YEAR

	3Q12		2Q12		1Q12		4Q11		3Q11		2Q11		1Q11		2011		2010
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	23,791	$	25,871	$	27,609	$	28,350	$	28,520	$	29,750	$	32,266	$	32,266	$	31,602
Cumulative effect of change in accounting principles		-		-		-		-		-		-		-		-		7,494
Net charge-offs		2,770		2,278		2,387		2,907		2,507		3,103		3,720		12,237		23,673
Provision for loan losses		1,801		200		646		2,193		2,351		1,872		1,196		7,612		16,822
Other		2		(2)		3		(27)		(14)		1		8		(32)		21

Ending balance	$	22,824	$	23,791	$	25,871	$	27,609	$	28,350	$	28,520	$	29,750	$	27,609	$	32,266


ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	764	$	750	$	673	$	686	$	626	$	688	$	717	$	717	$	939
Cumulative effect of change in accounting principles		-		-		-		-		-		-		-		-		(18)
Provision for lending-related commitments		(12)		14		80		(9)		60		(62)		(27)		(38)		(183)
Other		-		-		(3)		(4)		-		-		(2)		(6)		(21)

Ending balance	$	752	$	764	$	750	$	673	$	686	$	626	$	688	$	673	$	717


ALLOWANCE FOR LOAN LOSSES BY LOB
Consumer & Community Banking	$	18,454	$	19,405	$	21,508	$	23,256	$	24,016	$	24,400	$	25,494	$	23,256	$	27,487
Corporate & Investment Bank		1,459		1,498		1,455		1,501		1,386		1,252		1,399		1,501		1,928
Commercial Banking		2,653		2,638		2,662		2,603		2,671		2,614		2,577		2,603		2,552
Asset Management		229		220		209		209		240		222		257		209		267
Corporate/Private Equity		29		30		37		40		37		32		23		40		32

Total	$	22,824	$	23,791	$	25,871	$	27,609	$	28,350	$	28,520	$	29,750	$	27,609	$	32,266

Page 20


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


	Sep 30, 2012			Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Dec 31, 2010
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset-specific	$	388		$	407		$	448		$	516		$	670		$	749		$	1,030		$	1,574
Formula-based		3,945			3,942			3,875			3,800			3,632			3,342			3,204			3,187

Total wholesale		4,333			4,349			4,323			4,316			4,302			4,091			4,234			4,761

Consumer, excluding credit card
Asset-specific		918			1,004			760			828			1,016			1,049			1,067			1,075
Formula-based		6,359			7,228			8,826			9,755			10,563			10,397			10,467			10,455
PCI		5,711			5,711			5,711			5,711			4,941			4,941			4,941			4,941

Total consumer, excluding credit card		12,988			13,943			15,297			16,294			16,520			16,387			16,475			16,471

Credit card
Asset-specific		1,909			1,977			2,402			2,727			3,052			3,451			3,819			4,069
Formula-based		3,594			3,522			3,849			4,272			4,476			4,591			5,222			6,965

Total credit card		5,503			5,499			6,251			6,999			7,528			8,042			9,041			11,034

Total consumer		18,491			19,442			21,548			23,293			24,048			24,429			25,516			27,505

Total allowance for loan losses		22,824			23,791			25,871			27,609			28,350			28,520			29,750			32,266
Allowance for lending-related commitments		752			764			750			673			686			626			688			717

Total allowance for credit losses	$	23,576		$	24,555		$	26,621		$	28,282		$	29,036		$	29,146		$	30,438		$	32,983


CREDIT RATIOS
Wholesale allowance to total wholesale retained loans		1.46	%		1.46	%		1.52	%		1.55	%		1.68	%		1.68	%		1.84	%		2.14	%
Wholesale allowance to total wholesale retained loans, excluding trade finance and conduits (a)		1.80			1.81			1.90			1.97			2.07			2.04			2.26			2.60
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		4.40			4.65			5.02			5.28			5.33			5.20			5.13			5.03
Credit card allowance to total credit card retained loans		4.42			4.41			5.02			5.30			5.93			6.41			7.24			8.14
Total allowance to total retained loans		3.18			3.29			3.63			3.84			4.09			4.16			4.40			4.71
Wholesale allowance to wholesale retained nonaccrual loans		261			241			223			180			143			122			92			86
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (b)(c)(d)		137			173			181			220			211			196			192			186
Allowance, excluding credit card allowance, to retained nonaccrual loans, excluding credit card nonaccrual loans (b)(c)(d)		156			185			189			210			192			175			157			148
Total allowance to total retained nonaccrual loans (c)(d)		205			241			249			281			262			243			226			225

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		3.11			3.47			3.98			4.36			4.77			4.65			4.61			4.53
Total allowance to total retained loans		2.61			2.74			3.11			3.35			3.74			3.83			4.10			4.46
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (b)(c)(d)		77			102			113			143			148			137			135			131
Allowance, excluding credit card allowance, to retained nonaccrual loans, excluding credit card nonaccrual loans (b)(c)(d)		104			127			134			152			147			133			120			114
Total allowance to total retained nonaccrual loans (c)(d)		154			183			194			223			216			201			189			190

(a)	Management believes allowance for loan losses to period-end loans retained, excluding CIB’s trade finance and Firm-administered conduits, a non-GAAP financial measure, is a more relevant metric to reflect the allowance coverage of the retained lending portfolio.

(b)

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.

(c)	Nonaccrual loans included $1.7 billion of Chapter 7 loans, based upon regulatory guidance, at September 30, 2012. For further information, see Consumer Credit Portfolio on pages 84-86 of JPMorgan Chase’s third quarter 2012 Form 10-Q.

(d)

Nonaccrual loans included $1.3 billion, $1.5 billion and $1.6 billion of performing junior liens that are subordinate to senior liens that were 90 days or more past due at September 30, 2012, June 30, 2012 and March 31, 2012, respectively. Of these totals, $1.2 billion, $1.3 billion and $1.4 billion were current at the respective period ends. Beginning March 31, 2012, such junior liens were reported as nonaccrual loans based upon regulatory guidance issued in the first quarter of 2012. Excluding the incremental nonaccrual loans resulting from the guidance noted, the total allowance to total retained nonaccrual loans ratio at September 30, 2012, June 30, 2012 and March 31, 2012, would have been 282%, 283% and 293%, respectively, and the total allowance to total retained nonaccrual loans excluding PCI loans would have been 211%, 215% and 228%, respectively.

Page 21


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


	QUARTERLY TRENDS														FULL YEAR

	3Q12		2Q12		1Q12		4Q11		3Q11		2Q11		1Q11		2011		2010
PROVISION FOR CREDIT LOSSES BY LINE OF BUSINESS
Provision for loan losses
Consumer & Community Banking	$	1,862	$	179	$	642	$	1,838	$	2,291	$	1,938	$	1,552	$	7,619	$	17,495
Corporate & Investment Bank		(62)		31		(81)		314		(32)		(137)		(402)		(257)		(1,215)
Commercial Banking		(4)		(31)		72		29		73		73		51		226		437
Asset Management		15		33		21		23		26		7		5		61		91
Corporate/Private Equity		(10)		(12)		(8)		(11)		(7)		(9)		(10)		(37)		14

Total provision for loan losses	$	1,801	$	200	$	646	$	2,193	$	2,351	$	1,872	$	1,196	$	7,612	$	16,822


Provision for lending-related commitments
Consumer & Community Banking	$	-	$	-	$	-	$	1	$	-	$	-	$	-	$	1	$	(6)
Corporate & Investment Bank		2		(2)		78		(23)		66		(48)		(23)		(28)		(32)
Commercial Banking		(12)		14		5		11		(6)		(19)		(4)		(18)		(140)
Asset Management		(1)		1		(2)		1		-		5		-		6		(5)
Corporate/Private Equity		(1)		1		(1)		1		-		-		-		1		-

Total provision for lending-related commitments	$	(12)	$	14	$	80	$	(9)	$	60	$	(62)	$	(27)	$	(38)	$	(183)


Provision for credit losses
Consumer & Community Banking	$	1,862	$	179	$	642	$	1,839	$	2,291	$	1,938	$	1,552	$	7,620	$	17,489
Corporate & Investment Bank		(60)		29		(3)		291		34		(185)		(425)		(285)		(1,247)
Commercial Banking		(16)		(17)		77		40		67		54		47		208		297
Asset Management		14		34		19		24		26		12		5		67		86
Corporate/Private Equity		(11)		(11)		(9)		(10)		(7)		(9)		(10)		(36)		14

Total provision for credit losses	$	1,789	$	214	$	726	$	2,184	$	2,411	$	1,810	$	1,169	$	7,574	$	16,639





PROVISION FOR CREDIT LOSSES BY PORTFOLIO SEGMENT
Provision for loan losses
Wholesale	$	(52)	$	30	$	8	$	364	$	67	$	(55)	$	(359)	$	17	$	(673)
Consumer, excluding credit card		737		(425)		2		939		1,285		1,117		1,329		4,670		9,458
Credit card		1,116		595		636		890		999		810		226		2,925		8,037

Total consumer		1,853		170		638		1,829		2,284		1,927		1,555		7,595		17,495

Total provision for loan losses	$	1,801	$	200	$	646	$	2,193	$	2,351	$	1,872	$	1,196	$	7,612	$	16,822


Provision for lending-related commitments
Wholesale	$	(11)	$	13	$	81	$	(11)	$	60	$	(62)	$	(27)	$	(40)	$	(177)
Consumer, excluding credit card		(1)		1		(1)		2		-		-		-		2		(6)
Credit card		-		-		-		-		-		-		-		-		-

Total consumer		(1)		1		(1)		2		-		-		-		2		(6)

Total provision for lending-related commitments	$	(12)	$	14	$	80	$	(9)	$	60	$	(62)	$	(27)	$	(38)	$	(183)


Provision for credit losses
Wholesale	$	(63)	$	43	$	89	$	353	$	127	$	(117)	$	(386)	$	(23)	$	(850)
Consumer, excluding credit card		736		(424)		1		941		1,285		1,117		1,329		4,672		9,452
Credit card		1,116		595		636		890		999		810		226		2,925		8,037

Total consumer		1,852		171		637		1,831		2,284		1,927		1,555		7,597		17,489

Total provision for credit losses	$	1,789	$	214	$	726	$	2,184	$	2,411	$	1,810	$	1,169	$	7,574	$	16,639

Page 22


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. 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 investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. 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. The ratio for the wholesale allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the Firm’s wholesale allowance coverage ratio.

(c)

Consumer & Business Banking (“CBB”) uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)) 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 CBB’s CDI amortization expense related to prior business combination transactions.

(d)

Corporate & Investment Bank provides several non-GAAP financial measures which exclude the impact of DVA on: net revenue, net income, compensation ratio (which was also adjusted for the exclusion of the 2010 U.K. Bank Payroll Tax), and return on equity. These measures are used by management to assess the underlying performance of the business and for comparability with peers. The ratio for the allowance for loan losses to period-end loans is calculated excluding the impact of trade finance loans and consolidated Firm-administered multi-seller conduits, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Page 23

JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

Allowance for loan losses to total loans: Represents period-end allowance for loan losses divided by retained loans.

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

Fully taxable-equivalent (“FTE”) basis: Total net revenue for each of the business segments and the Firm is presented on a fully taxable-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.

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.

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.

Net charge-off rate: Represents net charge-offs (annualized) divided by average retained loans for the reporting period.

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

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.

NA: Data is not available for the period presented.

Principal transactions revenue: Principal transactions revenue includes realized and unrealized gains and losses recorded on derivatives, other financial instruments, private equity investments, and physical commodities used in market-making and client-driven activities. In addition, principal transactions revenue also includes certain realized and unrealized gains and losses related to hedge accounting and specified risk management activities including: (a) certain derivatives designated in qualifying hedge accounting relationships (primarily fair value hedges of commodity and foreign exchange risk), (b) certain derivatives used for specified risk management purposes, primarily to mitigate credit risk, foreign exchange risk and commodity risk, and (c) other derivatives, including the synthetic credit portfolio.

Purchased credit-impaired (“PCI”) loans: Represents loans that were acquired in the Washington Mutual transaction and deemed to be credit-impaired on the acquisition date in accordance with FASB guidance. 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., product type, LTV ratios, FICO scores, past-due status, 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.

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.

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. PCI loans as well as the related charge-offs and allowance for loan losses are excluded in the calculation of certain net charge-off rates and allowance coverage ratios. To date, no charge-offs have been recorded for these loans.

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

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

Page 24

JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

CONSUMER & COMMUNITY BANKING (“CCB”)

Active mobile customers – Users of all mobile platforms, which include: SMS, Mobile, smartphone and tablet, who have been active in the past 90 days.

Consumer & Business Banking (“CBB”)

Description of selected business metrics within CBB:

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.

Client advisors – Investment product specialists, including private client advisors, financial advisors, financial advisor associates, senior financial advisors, independent financial advisors and financial advisor associate trainees, who advise clients on investment options, including annuities, mutual funds, stock trading services, etc., sold by the Firm or by third-party vendors through retail branches, Chase Private Client branches and other channels.

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 and field personnel, including business bankers, relationship managers and loan officers, who specialize in marketing and sales of various business banking products (i.e., business loans, letters of credit, deposit accounts, Chase Paymentech, etc.) and mortgage products to existing and new clients.

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

Chase Liquid^® cards – Refers to a prepaid, reloadable card product.

Mortgage Banking

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 and other ancillary fees; and

•

Modeled MSR asset amortization (or time decay).

Risk management comprises:

•

Changes in MSR asset fair value due to market-based inputs such as interest rates, 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 interest rates to the MSR valuation model.

Mortgage Production and Servicing revenue comprises the following:

Retail – Borrowers who buy or refinance 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 – Third-party mortgage brokers refer loan application packages to the Firm. The Firm then underwrites and funds the loan. Brokers are independent loan originators that specialize in counseling applicants on available home financing options, but do not provide funding for loans. Chase materially eliminated broker-originated loans in 2008, with the exception of a small number of loans guaranteed by the U.S. Department of Agriculture under its Section 502 Guaranteed Loan program that serves low-and-moderate income families in small rural communities.

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

Correspondent negotiated transactions (“CNTs”) – Mid- to large-sized mortgage lenders, banks and bank-owned mortgage companies sell servicing to the Firm on an as-originated basis (excluding sales of bulk servicing transactions). These transactions supplement traditional production channels and provide growth opportunities in the servicing portfolio in periods of stable and rising interest rates.

Card, Merchant Services and 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 is a business that processes transactions for merchants.

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

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

Card Services includes the Credit Card and Merchant Services businesses.

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 25

JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

CORPORATE & INVESTMENT BANK (“CIB”)

Definition of selected CIB revenue:

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

Treasury Services includes both transaction services and trade finance. Transaction services offers a broad range of products and services that enable clients to manage payments and receipts, as well as invest and manage funds. Products include U.S. dollar and multi-currency clearing, ACH, lockbox, disbursement and reconciliation services, check deposits, and currency related services. Trade finance enables the management of cross-border trade for bank and corporate clients. Products include loans tied directly to goods crossing borders, export/import loans, commercial letters of credit, standby letters of credit, and supply chain finance.

3.	Lending revenue includes net interest income, fees, gains or losses on loan sale activity, gains or losses on securities received as part of a loan restructuring, and the risk management results related to the credit portfolio (excluding trade finance).

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

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

Securities Services includes primarily custody, fund accounting and administration, and securities lending products sold principally to asset managers, insurance companies and public and private investment funds. Also includes clearance, collateral management & depositary receipts business which provides broker-dealer clearing and custody services, including tri-party repo transactions, collateral management products, and depositary bank services for American and global depositary receipt programs.

Credit Adjustments & Other primarily includes net credit portfolio credit valuation adjustments (“CVA”) and its associated hedging activities; debit valuation adjustments (“DVA”) related to both structured notes and derivatives; and nonperforming derivative receivable results effective in the first quarter of 2012 and thereafter. The results of the synthetic credit portfolio that was transferred from the Chief Investment Office effective July 2, 2012, which are reported in Fixed Income Markets, are not included.

Description of certain business metrics:

Customer deposits & other third party liability balances pertain to the Treasury Services and Securities Services businesses, and include deposits, as well as deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements) as part of customer cash management programs.

2.	Assets under custody (“AUC”) represents activities associated with the safekeeping and servicing of assets on which Securities Services earns fees.

Page 26

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