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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): April 13, 2011

JPMORGAN CHASE & CO.

(Exact name of registrant as specified in its charter)


Delaware	1-5805	13-2624428
(State or Other Jurisdiction of	(Commission File Number)	(IRS Employer
Incorporation)		Identification No.)

270 Park Avenue, New York, NY		10017
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 270-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS


Item 2.02 Results of Operations and Financial Condition
Item 9.01 Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EX-12.1
EX-12.2
EX-99.1
EX-99.2

Item 2.02 Results of Operations and Financial Condition

On April 13, 2011, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2011 first quarter net income of $5.6 billion, or $1.28 per share, compared with net income of $3.3 billion, or $0.74 per share, for the first quarter of 2010. A copy of the 2011 first quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

Each of the Exhibits provided with this Form 8-K shall be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended.

This current report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase & Co.’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co.’s Annual Report on Form 10-K for the year ended December 31, 2010, which has been filed with the U.S. Securities and Exchange Commission and is available on JPMorgan Chase & Co.’s website (www.jpmorganchase.com) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits


Exhibit Number		Description of Exhibit
12.1		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges

12.2		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements

99.1		JPMorgan Chase & Co. Earnings Release — First Quarter 2011 Results

99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement — First Quarter 2011

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	JPMORGAN CHASE & CO. (Registrant)
	By:	/s/ Louis Rauchenberger
		Louis Rauchenberger

		Managing Director and Controller [Principal Accounting Officer]

Dated: April 13, 2011

EXHIBIT INDEX


Exhibit Number		Description of Exhibit
12.1		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges

12.2		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements

99.1		JPMorgan Chase & Co. Earnings Release — First Quarter 2011 Results

99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement — First Quarter 2011

exv12w1

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges


Three months ended March 31, (in millions, except ratios)	2011
Excluding interest on deposits
Income before income tax expense	$	8,057

Fixed charges:
Interest expense		2,816
One-third of rents, net of income from subleases (a)		140

Total fixed charges		2,956

Add: Equity in undistributed loss of affiliates		26

Income before income tax expense and fixed charges, excluding capitalized interest	$	11,039

Fixed charges, as above	$	2,956

Ratio of earnings to fixed charges		3.73


Including interest on deposits
Fixed charges, as above	$	2,956
Add: Interest on deposits		922

Total fixed charges and interest on deposits	$	3,878

Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	11,039
Add: Interest on deposits		922

Total income before income tax expense, fixed charges and interest on deposits	$	11,961

Ratio of earnings to fixed charges		3.08


(a)		The proportion deemed representative of the interest factor.

exv12w2

EXHIBIT 12.2

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges
and Preferred Stock Dividend Requirements


Three months ended March 31, (in millions, except ratios)	2011
Excluding interest on deposits
Income before income tax expense	$	8,057

Fixed charges:
Interest expense		2,816
One-third of rents, net of income from subleases (a)		140

Total fixed charges		2,956

Add: Equity in undistributed loss of affiliates		26

Income before income tax expense and fixed charges, excluding capitalized interest	$	11,039

Fixed charges, as above	$	2,956

Preferred stock dividends (pre-tax)		231


Fixed charges including preferred stock dividends	$	3,187

Ratio of earnings to fixed charges and preferred stock dividend requirements		3.46


Including interest on deposits
Fixed charges including preferred stock dividends, as above	$	3,187
Add: Interest on deposits		922

Total fixed charges including preferred stock dividends and interest on deposits	$	4,109

Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	11,039
Add: Interest on deposits		922

Total income before income tax expense, fixed charges and interest on deposits	$	11,961

Ratio of earnings to fixed charges and preferred stock dividend requirements		2.91


(a)		The proportion deemed representative of the interest factor.

exv99w1

Exhibit 99.1


JPMorgan Chase & Co. 270 Park Avenue, New York, NY 10017-2070 NYSE symbol: JPM www.jpmorganchase.com

News release: IMMEDIATE RELEASE

JPMORGAN CHASE REPORTS FIRST-QUARTER 2011 NET INCOME OF
$5.6 BILLION, OR $1.28 PER SHARE, ON REVENUE¹ OF $25.8 BILLION

	•		Investment Bank reported strong earnings; solid results from other businesses

	•		Retail Financial Services demonstrated good underlying performance; results offset by elevated credit costs and other mortgage-related costs

	•		Fortress balance sheet strengthened: Basel I Tier 1 Common¹ of $120 billion, or 10.0%; estimated Basel III Tier 1 Common¹ of 7.3%; credit reserves at $30.4 billion, coverage ratio at 4.10% of total loans¹

	•		Increased quarterly common stock dividend to $0.25 per share; authorized new $15 billion multi-year common stock repurchase program, of which up to $8.0 billion of common stock repurchases is approved for 2011

	•		First-quarter results included the following significant items:

	-		$2.0 billion pretax ($0.29 per share after-tax) benefit from reduced credit card loan loss reserves

	-		$1.1 billion pretax ($0.16 per share after-tax) loss from mortgage servicing rights asset adjustment for increased costs

	-		$650 million pretax ($0.10 per share after-tax) expense for estimated costs of foreclosure-related matters

	•		Over $450 billion in new and renewed credit provided to and capital raised for consumers, corporations, small businesses, municipalities and not-for-profits in the first quarter of 2011

	•		Enhanced programs to help military and veteran customers, including a commitment to reduce mortgage pricing and increase mortgage loan modifications, jobs, training, and homeownership assistance

	•		Loan modifications of 1,098,000 offered and 324,000 completed since the beginning of 2009

	•		Added 16,300 employees over the last twelve months, including more than 9,800 in the U.S.

New York, April 13, 2011 — JPMorgan Chase & Co. (NYSE: JPM) today reported first-quarter 2011 net income of $5.6 billion, compared with net income of $3.3 billion in the first quarter of 2010. Earnings per share were $1.28, compared with $0.74 in the first quarter of 2010.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the quarter: “The Firm’s results reflected a strong quarter across the Investment Bank and solid performance from Card Services, Commercial Banking, Treasury & Securities Services, and Asset Management. These results partially benefited from improved credit trends in our credit card and wholesale businesses.”



Investor Contact: Lauren Tyler (212) 270-7325		Media Contact: Joe Evangelisti (212) 270-7438


¹		Presented on a managed basis. For notes on managed basis and other non-GAAP measures, see page 13.

J.P. Morgan Chase & Co.
News Release

Dimon continued: “Retail Financial Services demonstrated good underlying performance, while we continued to invest in building branches and adding to our sales force. However, this performance was more than offset by the extraordinarily high losses we still are bearing on mortgage-related issues.^(a) Unfortunately, these losses will continue for a while. Rest assured, we are fully engaged in fixing our problems and addressing our mistakes from the past, and we will strive to build the best mortgage business going forward.”

Commenting on the balance sheet, Dimon said: “We strengthened our fortress balance sheet, ending the first quarter with a strong Tier 1 Common ratio of 10.0%. Looking forward, we intend to operate the business with the objectives of maintaining a Basel I Tier 1 Common ratio of at least 9.0% and meeting the Basel III requirements substantially ahead of time. Our earnings power will allow us to generate significant capital in excess of our objectives, enabling us to invest aggressively in our future.

“We were pleased that our strong balance sheet allowed us to increase our annual dividend to $1.00 per share and to reestablish a significant share-repurchase program. Importantly, we will only buy back stock if we believe the price is appropriate and if it benefits our remaining shareholders. In the meantime, we will pursue the significant organic growth opportunities we see in each of our businesses as our top priority and our best use of capital.”

Dimon also remarked: “In every way we can, we continue to support the economic recovery in the U.S. and around the world. This quarter alone, JPMorgan Chase provided credit to and raised capital for our clients of over $450 billion. These efforts have a meaningful impact on our communities — we originated mortgages to over 180,000 people; we provided credit cards to approximately 2.6 million people; we lent or increased credit to over 7,500 small businesses, allowing them to expand; we lent to over 500 not-for-profit and government entities, including states, municipalities, hospitals and universities; we extended or increased loan limits to approximately 1,500 middle market companies; and we lent to or raised capital for more than 3,500 corporations. In addition, we added 16,300 employees over the last twelve months, including more than 9,800 in the U.S. Furthermore, we remain committed to helping homeowners and preventing foreclosures. Since the beginning of 2009, we have offered 1,098,000 trial modifications to struggling homeowners.”

Dimon concluded: “We believe that a strong regulatory environment is essential, and we are working hard to ensure that we meet all the new rules and requirements, both in letter and spirit. While we expect to make numerous changes in our business, we do so with the needs and expectations of our customers foremost in our minds. As we look toward the future, we see incredible opportunities for the company, which our teams around the world are aggressively pursuing.”


^(a)		Within Retail Financial Services, during the first quarter of 2011, losses on mortgages and mortgage-related issues included (i) a provision for credit losses of $1.1 billion, (ii) a loss of $1.1 billion for the impact of increased servicing costs on the fair value of the Firm's mortgage servicing rights asset, (iii) $650 million of expense for the estimated costs of foreclosure-related matters, and (iv) mortgage repurchase losses of $420 million.

In the discussion below of the business segments and of JPMorgan Chase as a Firm, information is presented on a managed basis. For more information about managed basis, as well as other non-GAAP financial measures used by management to evaluate the performance of each line of business, see page 13. The following discussion compares the first quarters of 2011 and 2010 unless otherwise noted.

J.P. Morgan Chase & Co.
News Release

INVESTMENT BANK (IB)


Results for IB										4Q10						1Q10
($ millions)	1Q11			4Q10			1Q10			$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	8,233		$	6,213		$	8,319		$	2,020			33	%		($86	)		(1	)%
Provision for Credit Losses		(429	)		(271	)		(462	)		(158	)		(58	)		33			7
Noninterest Expense		5,016			4,201			4,838			815			19			178			4
Net Income	$	2,370		$	1,501		$	2,471		$	869			58	%		($101	)		(4	)%

Discussion of Results:

Net income was $2.4 billion, down 4% from the prior-year record, reflecting higher noninterest expense, slightly lower net revenue and a lower benefit from the provision for credit losses. Net income was up 58% from the prior quarter, reflecting higher net revenue and a higher benefit from the provision for credit losses, partially offset by higher noninterest expense.

Net revenue was $8.2 billion, compared with $8.3 billion in the prior year and $6.2 billion in the prior quarter. Investment banking fees were $1.8 billion, up 23% from the prior year and down 3% from the prior quarter; these consisted of record debt underwriting fees of $971 million (up 33% from the prior year and up 6% from the prior quarter), equity underwriting fees of $379 million (down 8% from the prior year and down 22% from the prior quarter), and advisory fees of $429 million (up 41% from the prior year and flat compared with the prior quarter). Fixed Income and Equity Markets revenue was $6.6 billion, compared with $6.9 billion in the prior year and $4.0 billion in the prior quarter, reflecting strong client revenues. Credit Portfolio revenue was a loss of $190 million, primarily reflecting the negative net impact of credit valuation adjustments, largely offset by net interest income and fees on retained loans.

The provision for credit losses was a benefit of $429 million, compared with a benefit of $462 million in the prior year. The current-quarter benefit primarily reflected a reduction in the allowance for loan losses, primarily related to loan sales and net repayments. The ratio of the allowance for loan losses to end-of-period loans retained was 2.52%, compared with 4.91% in the prior year, driven by the improved quality of the loan portfolio. Net charge-offs were $123 million, compared with net charge-offs of $697 million in the prior year.

Noninterest expense was $5.0 billion, up 4% from the prior year and 19% from the prior quarter. The increase from prior periods was driven by higher compensation expense, partially offset by lower noncompensation expense.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted, and all rankings are according to Dealogic)

	•		Ranked #1 in Global Investment Banking Fees for the three months ended March 31, 2011.

	•		Ranked #1 in Global Announced M&A; #1 in Global Syndicated Loans; #3 in Global Debt, Equity and Equity-related; #3 in Global Long-Term Debt; and #7 in Global Equity and Equity-related, based on volume, for the three months ended March 31, 2011.

	•		Return on equity was 24% on $40.0 billion of average allocated capital.

	•		End-of-period loans retained were $52.7 billion, flat compared with both the prior year and prior quarter. End-of-period held-for-sale and fair-value loans were $5.1 billion, up 41% from the prior year and up 35% from the prior quarter.

J.P. Morgan Chase & Co.
News Release

RETAIL FINANCIAL SERVICES (RFS)


Results for RFS									4Q10						1Q10
($ millions)	1Q11			4Q10		1Q10			$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	6,275		$	8,525	$	7,776			($2,250	)		(26	)%		($1,501	)		(19	)%
Provision for Credit Losses		1,326			2,456		3,733			(1,130	)		(46	)		(2,407	)		(64	)
Noninterest Expense		5,262			4,824		4,242			438			9	%		1,020			24
Net Income/(Loss)		($208	)	$	708		($131	)		($916	)	NM				($77	)		(59	)%

Discussion of Results:

Retail Financial Services reported a net loss of $208 million, compared with a net loss of $131 million in the prior year.

Net revenue was $6.3 billion, a decrease of $1.5 billion, or 19%, compared with the prior year. Net interest income was $4.6 billion, down by $394 million, or 8%, reflecting the impact of lower loan balances due to portfolio runoff and narrower loan spreads. Noninterest revenue was $1.6 billion, down by $1.1 billion, or 40%, driven by lower mortgage fees and related income.

The provision for credit losses was $1.3 billion, a decrease of $2.4 billion from the prior year and a decrease of $1.1 billion from the prior quarter. While delinquency trends and net charge-offs improved compared with both prior periods, the current-quarter provision continued to reflect elevated losses in the mortgage and home equity portfolios. Home equity net charge-offs were $720 million (3.36% net charge-off rate¹), compared with $1.1 billion (4.59% net charge-off rate¹) in the prior year. Subprime mortgage net charge-offs were $186 million (6.80% net charge-off rate¹), compared with $457 million (13.43% net charge-off rate¹). Prime mortgage, including option ARMs, net charge-offs were $165 million (1.06% net charge-off rate¹), compared with $482 million (2.84% net charge-off rate¹). The allowance for loan losses to end-of-period loans retained, excluding purchased credit-impaired loans, was 4.84%, compared with 5.16% in the prior year and 4.72% in the prior quarter.

Noninterest expense was $5.3 billion, an increase of $1.0 billion, or 24%, from the prior year.

Retail Banking reported net income of $891 million, flat compared with the prior year.

Net revenue was $4.4 billion, up 2% from the prior year. The increase was driven by higher debit card and investment sales revenue, largely offset by lower deposit-related fees.

Retail Banking net charge-offs were $119 million (2.86% net charge-off rate), compared with $191 million (4.58% net charge-off rate) in the prior year.

Noninterest expense was $2.8 billion, up 9% from the prior year, resulting from sales force increases and new branch builds.

J.P. Morgan Chase & Co.
News Release

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted)

	•		Checking accounts totaled 26.6 million, up 3% from the prior year and down 2% from the prior quarter.

	•		Average total deposits were $348.1 billion, up 4% from the prior year and 3% from the prior quarter.

	•		Deposit margin was 2.92%, compared with 3.02% in the prior year and 3.00% in the prior quarter.

	•		End-of-period Business Banking loans were $17.0 billion, up 1% from the prior year and the prior quarter; originations were $1.4 billion, up 57% from the prior year and flat compared with the prior quarter.

	•		Branch sales of credit cards were down 12% from the prior year and down 9% from the prior quarter.

	•		Branch sales of investment products increased 11% from the prior year and 8% from the prior quarter.

	•		Number of branches was 5,292, up 3% from the prior year and flat compared with the prior quarter.

Mortgage Banking, Auto & Other Consumer Lending reported a net loss of $937 million, compared with net income of $257 million in the prior year.

Net revenue was $696 million, a decrease of $1.2 billion, or 64%, from the prior year. Mortgage Banking net revenue was a loss of $114 million, compared with net revenue of $962 million in the prior year. Auto & Other Consumer Lending net revenue was $810 million, down by $139 million, predominantly as a result of the discontinuation of tax refund anticipation lending.

Mortgage Banking net revenue included $271 million of net interest income and $104 million of other noninterest revenue, offset by a loss of $489 million for mortgage fees and related income. Mortgage fees and related income comprised $259 million of net production revenue, $489 million of servicing operating revenue and a $1.2 billion MSR risk management loss. Production revenue, excluding repurchase losses, was $679 million, an increase of $246 million, reflecting higher mortgage origination volumes and wider margins. Total production revenue was reduced by $420 million of repurchase losses, compared with repurchase losses of $432 million in the prior year. Servicing operating revenue declined 3% from the prior year. MSR risk management revenue declined by $1.4 billion from the prior year, reflecting a $1.1 billion decrease in the fair value of the MSR asset for the estimated impact of increased servicing costs.

The provision for credit losses, predominantly related to the student and auto loan portfolios, was $131 million, compared with $217 million in the prior year. Auto loan net charge-offs were $47 million (0.40% net charge-off rate), compared with $102 million (0.88% net charge-off rate) in the prior year. Student loan and other net charge-offs were $80 million (2.25% net charge-off rate), compared with $64 million (1.64% net charge-off rate) in the prior year.

Noninterest expense was $2.1 billion, up by $859 million, or 69%, from the prior year, driven by $650 million recorded for estimated costs of foreclosure-related matters, as well as an increase in default-related expense for the serviced portfolio.

J.P. Morgan Chase & Co.
News Release

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted)

	•		Mortgage loan originations were $36.2 billion, up 14% from the prior year and down 29% from the prior quarter.

	•		Total third-party mortgage loans serviced were $955.0 billion, down 11% from the prior year and 1% from the prior quarter.

	•		Average auto loans were $47.7 billion, up 2%; originations were $4.8 billion, down 24% from the prior year and flat compared with the prior quarter.

Real Estate Portfolios reported a net loss of $162 million, compared with a net loss of $1.3 billion in the prior year. The improvement was driven by a lower provision for credit losses.

Net revenue was $1.2 billion, down by $364 million, or 24%, from the prior year. The decrease was driven by a decline in net interest income as a result of lower loan balances due to portfolio runoff, and narrower loan spreads.

The provision for credit losses was $1.1 billion, compared with $3.3 billion in the prior year. The current-quarter provision reflected a $1.0 billion reduction in net charge-offs driven by improved delinquency trends. Also, the prior-year provision included an addition to the allowance for loan losses of $1.2 billion for the Washington Mutual purchased credit-impaired portfolios. (For further detail, see RFS discussion of the provision for credit losses, above.)

Noninterest expense was $355 million, down by $64 million, or 15%, from the prior year, reflecting a decrease in foreclosed asset expense.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted)

	•		Average mortgage loans were $107.8 billion, down by $16.6 billion.

	•		Average home equity loans were $111.1 billion, down by $14.6 billion.

CARD SERVICES (CS)


Results for CS								4Q10						1Q10
($ millions)	1Q11		4Q10		1Q10			$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	3,982	$	4,246	$	4,447			($264	)		(6	)%		($465	)		(10	)%
Provision for Credit Losses		226		671		3,512			(445	)		(66	)		(3,286	)		(94	)
Noninterest Expense		1,555		1,514		1,402			41			3			153			11	%
Net Income/(Loss)	$	1,343	$	1,299		($303	)	$	44			3	%	$	1,646		NM

Discussion of Results:

Net income was $1.3 billion, compared with a net loss of $303 million in the prior year. The improved results were driven by a lower provision for credit losses, partially offset by lower net revenue.

End-of-period loans were $128.8 billion, a decrease of $20.5 billion, or 14%, from the prior year and a decrease of $8.9 billion, or 6%, from the prior quarter. Average loans were $132.5 billion, a decrease of $23.3 billion, or 15%, from the prior year and a decrease of $3.0 billion, or 2%, from the prior quarter. The declines in both end-of-period and average loans were consistent with expected portfolio runoff.

J.P. Morgan Chase & Co.
News Release

Net revenue was $4.0 billion, a decrease of $465 million, or 10%, from the prior year. Net interest income was $3.2 billion, down by $489 million, or 13%. The decrease in net interest income was driven by lower average loan balances, the impact of legislative changes and a decreased level of fees. These decreases were largely offset by lower revenue reversals associated with lower charge-offs. Noninterest revenue was $782 million, an increase of $24 million, or 3%. The increase was driven by the transfer of the Commercial Card business to CS from Treasury & Securities Services in the first quarter of 2011 and higher net interchange income, partially offset by lower revenue from fee-based products.

The provision for credit losses was $226 million, compared with $3.5 billion in the prior year and $671 million in the prior quarter. The current-quarter provision reflected lower net charge-offs and a reduction of $2.0 billion to the allowance for loan losses due to lower estimated losses. The prior-year provision included a reduction of $1.0 billion to the allowance for loan losses. Excluding the Washington Mutual and Commercial Card portfolios, the net charge-off rate¹ was 6.20%, down from 10.54% in the prior year and 7.08% in the prior quarter; and the 30-day delinquency rate¹ was 3.25%, down from 4.99% in the prior year and 3.66% in the prior quarter. Including the Washington Mutual and Commercial Card portfolios, the net charge-off rate¹ was 6.81%, down from 11.75% in the prior year and 7.82% in the prior quarter; the 30-day delinquency rate¹ was 3.55%, down from 5.62% in the prior year and 4.07% in the prior quarter.

Noninterest expense was $1.6 billion, an increase of $153 million, or 11%, due to the transfer of the Commercial Card business and higher marketing expense.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted)

	•		Return on equity was 42% on $13.0 billion of average allocated capital.

	•		Pretax income to average loans (ROO) was 6.73%, compared with negative 1.22% in the prior year and positive 6.03% in the prior quarter.

	•		Excluding the Washington Mutual and Commercial Card portfolios, net interest income as a percentage of average loans was 9.25%, up from 8.86% in the prior year and 9.16% in the prior quarter. Including the Washington Mutual and Commercial Card portfolios, the ratio was 9.79%.

	•		New accounts of 2.6 million were opened.

	•		Excluding the Commercial Card portfolio, sales volume was $77.5 billion, an increase of $8.1 billion, or 12%. Excluding the Washington Mutual and Commercial Card portfolios, sales volume was $75.2 billion, an increase of $8.3 billion, or 12%.

	•		Merchant processing volume was $125.7 billion on 5.6 billion total transactions processed.

J.P. Morgan Chase & Co.
News Release

COMMERCIAL BANKING (CB)


Results for CB							4Q10						1Q10
($ millions)	1Q11		4Q10		1Q10		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	1,516	$	1,611	$	1,416		($95	)		(6	)%	$	100			7	%
Provision for Credit Losses		47		152		214		(105	)		(69	)		(167	)		(78	)
Noninterest Expense		563		558		539		5			1			24			4
Net Income	$	546	$	530	$	390	$	16			3	%	$	156			40	%

Discussion of Results:

Net income was $546 million, an increase of $156 million, or 40%, from the prior year. The increase was driven by a reduction in the provision for credit losses and higher net revenue.

Net revenue was $1.5 billion, up by $100 million, or 7%, from the prior year. Net interest income was $1.0 billion, up by $98 million, or 11%, driven by growth in liability balances, wider loan spreads, and growth in loan balances, partially offset by spread compression on liability products. Noninterest revenue was $502 million, flat compared with the prior year.

Revenue from Middle Market Banking was $755 million, an increase of $9 million, or 1%, from the prior year. Revenue from Commercial Term Lending was $286 million, an increase of $57 million, or 25%. Revenue from Corporate Client Banking (formerly Mid-Corporate Banking) was $290 million, an increase of $27 million, or 10%. Revenue from Real Estate Banking was $88 million, a decrease of $12 million, or 12%.

The provision for credit losses was $47 million, compared with $214 million in the prior year. Net charge-offs were $31 million (0.13% net charge-off rate) and were largely related to commercial real estate; this compared with net charge-offs of $229 million (0.96% net charge-off rate) in the prior year and $286 million (1.16% net charge-off rate) in the prior quarter. The allowance for loan losses to end-of-period loans retained was 2.59%, down from 3.15% in the prior year and 2.61% in the prior quarter. Nonaccrual loans were $2.0 billion, down by $1.0 billion, or 35%, from the prior year, reflecting decreases in commercial real estate, and down $45 million, or 2%, from the prior quarter.

Noninterest expense was $563 million, an increase of $24 million, or 4%, from the prior year, primarily reflecting higher headcount-related expense.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted)

	•		Overhead ratio was 37%, down from 38%.

	•		Gross investment banking revenue (which is shared with the Investment Bank) was $309 million, down by $2 million, or 1%.

	•		Average loan balances were $99.6 billion, up by $3.0 billion, or 3%, from the prior year, and up by $1.2 billion, or 1%, from the prior quarter.

	•		End-of-period loan balances were $100.2 billion, up by $4.4 billion, or 5%, from the prior year, and up by $1.3 billion, or 1%, from the prior quarter.

	•		Average liability balances were $156.2 billion, up by $23.1 billion, or 17%, from the prior year and up $8.7 billion, or 6%, from the prior quarter.

J.P. Morgan Chase & Co.
News Release

TREASURY & SECURITIES SERVICES (TSS)


Results for TSS								4Q10						1Q10
($ millions)	1Q11		4Q10		1Q10			$ O/(U)			O/(U) %			$ O/(U)		O/(U) %
Net Revenue	$	1,840	$	1,913	$	1,756			($73	)		(4	)%	$	84		5	%
Provision for Credit Losses		4		10		(39	)		(6	)		(60	)		43	NM
Noninterest Expense		1,377		1,470		1,325			(93	)		(6	)		52		4
Net Income	$	316	$	257	$	279		$	59			23	%	$	37		13	%

Discussion of Results:

Net income was $316 million, an increase of $37 million, or 13%, from the prior year.

Net revenue was $1.8 billion, an increase of $84 million, or 5%, from the prior year. Worldwide Securities Services net revenue was $949 million, an increase of $75 million, or 9%. The increase was driven by net inflows of assets under custody, higher market levels and higher net interest income. Treasury Services net revenue was $891 million, an increase of $9 million, or 1%. The increase was driven by higher net interest income and higher trade loan volumes, offset by the transfer of the Commercial Card business to Card Services in the first quarter of 2011.

TSS generated firmwide net revenue¹ of $2.4 billion, including $1.5 billion by Treasury Services; of that amount, $891 million was recorded in Treasury Services, $542 million in Commercial Banking and $63 million in other lines of business. The remaining $949 million of firmwide net revenue was recorded in Worldwide Securities Services.

Noninterest expense was $1.4 billion, an increase of $52 million, or 4%, from the prior year. The increase was mainly driven by continued investment in new product platforms, primarily related to international expansion, partially offset by the transfer of the Commercial Card business to Card Services.

Results for the current quarter include a $27 million pre-tax benefit related to the allocation between the IB and TSS associated with credit extended to Global Corporate Bank (“GCB”) clients. The IB manages credit exposures related to the GCB on behalf of IB and TSS. Effective January 1, 2011, IB and TSS will share the economics related to the Firm’s GCB clients.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted)

	•		Pretax margin¹ was 26%, compared with 25% in the prior year and 21% in the prior quarter.

	•		Return on equity was 18% on $7.0 billion of average allocated capital.

	•		Average liability balances were $265.7 billion, up 7%.

	•		Assets under custody were a record $16.6 trillion, up 9%.

J.P. Morgan Chase & Co.
News Release

ASSET MANAGEMENT (AM)


Results for AM							4Q10						1Q10
($ millions)	1Q11		4Q10		1Q10		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	2,406	$	2,613	$	2,131		($207	)		(8	)%	$	275			13	%
Provision for Credit Losses		5		23		35		(18	)		(78	)		(30	)		(86	)
Noninterest Expense		1,660		1,777		1,442		(117	)		(7	)		218			15
Net Income	$	466	$	507	$	392		($41	)		(8	)%	$	74			19	%

Discussion of Results:

Net income was $466 million, an increase of $74 million, or 19%, from the prior year. These results reflected higher net revenue and a lower provision for credit losses, largely offset by higher noninterest expense.

Net revenue was $2.4 billion, an increase of $275 million, or 13%, from the prior year. Noninterest revenue was $2.0 billion, up by $246 million, or 14%, due to the effect of higher market levels, net inflows to products with higher margins and higher loan originations, partially offset by lower performance fees. Net interest income was $386 million, up by $29 million, or 8%, due to higher deposit and loan balances, partially offset by narrower deposit spreads.

Revenue from Private Banking was $1.3 billion, up 15% from the prior year. Revenue from Institutional was $549 million, up 1%. Revenue from Retail was $540 million, up 24%.

Assets under supervision were $1.9 trillion, an increase of $201 billion, or 12%, from the prior year. Assets under management were $1.3 trillion, an increase of $111 billion, or 9%. Both increases were due to the effect of higher market levels and record net inflows to long-term products, partially offset by net outflows in liquidity products. Custody, brokerage, administration and deposit balances were $578 billion, up by $90 billion, or 18%, due to the effect of higher market levels and custody and brokerage inflows.

The provision for credit losses was $5 million, compared with $35 million in the prior year.

Noninterest expense was $1.7 billion, an increase of $218 million, or 15%, from the prior year, largely resulting from an increase in headcount.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted)

	•		Pretax margin¹ was 31%, flat to the prior year.

	•		Assets under management reflected net inflows of $18 billion for the quarter; net inflows were $38 billion for the 12 months ended March 31, 2011. For the quarter, record net inflows of $27 billion to long-term products were partially offset by net outflows of $9 billion in liquidity products.

	•		Assets under management ranked in the top two quartiles for investment performance were 77% over 5-years, 70% over 3-years and 57% over 1-year.

	•		Customer assets in 4 and 5 Star-rated funds were 46%.

	•		Average loans were $44.9 billion, up 23% from the prior year and 6% from the prior quarter.

	•		End-of-period loans were $46.5 billion, up 25% from the prior year and 5% from the prior quarter.

J.P. Morgan Chase & Co.
News Release

•

Average deposits were $95.3 billion, up 18% from the prior year and 7% from the prior quarter.

CORPORATE/PRIVATE EQUITY^(*)


Results for
Corporate/Private Equity								4Q10						1Q10
($ millions)	1Q11			4Q10		1Q10		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	1,512		$	1,631	$	2,357		($119	)		(7	)%		($845	)		(36	)%
Provision for Credit Losses		(10	)		2		17		(12	)	NM				(27	)	NM
Noninterest Expense		562			1,699		2,336		(1,137	)		(67	)%		(1,774	)		(76	)
Net Income	$	722		$	29	$	228	$	693		NM			$	494			217	%


(*)		This segment includes the results of the Private Equity and Corporate business segments.

Discussion of Results:

Net income was $722 million, compared with net income of $228 million in the prior year.

Private Equity net income was $383 million, compared with $55 million in the prior year. Net revenue was $699 million, an increase of $584 million, driven by gains on sales and net increases in investment valuations. Noninterest expense was $113 million, an increase of $83 million from the prior year.

Corporate reported net income of $339 million, compared with net income of $173 million in the prior year. Net revenue was $813 million, including $102 million of securities gains. Noninterest expense was $449 million, a decrease of $1.9 billion from the prior year; the prior year included significant additions to litigation reserves.

JPMORGAN CHASE (JPM)^(*)


Results for JPM							4Q10						1Q10
($ millions)	1Q11		4Q10		1Q10		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	25,791	$	26,722	$	28,172		($931	)		(3	)%		($2,381	)		(8	)%
Provision for Credit Losses		1,169		3,043		7,010		(1,874	)		(62	)		(5,841	)		(83	)
Noninterest Expense		15,995		16,043		16,124		(48	)		—			(129	)		(1	)
Net Income	$	5,555	$	4,831	$	3,326	$	724			15	%	$	2,229			67	%


(*)		Presented on a managed basis. See notes on page 13 for further explanation of managed basis. Net revenue on a U.S. GAAP basis was $25,221 million, $26,098 million, and $27,671 million for the first quarter of 2011, fourth quarter of 2010 and first quarter of 2010, respectively.

Discussion of Results:

Net income was $5.6 billion, up by $2.2 billion, or 67%, from the prior year. The increase in earnings was driven by a significantly lower provision for credit losses, partially offset by lower net revenue.

Net revenue was $25.8 billion, a decrease of $2.4 billion, or 8%, from the prior year. Noninterest revenue was $13.8 billion, down by $605 million, or 4%, from the prior year; the decrease was driven by lower mortgage fees and related income, and lower securities gains, partially offset by higher investment banking fees. Net interest income was $12.0 billion, down by $1.8 billion, or 13%, driven by lower loan and securities balances.

J.P. Morgan Chase & Co.
News Release

The provision for credit losses was $1.2 billion, down by $5.8 billion, or 83%, from the prior year. The total consumer provision for credit losses was $1.6 billion, compared with $7.2 billion in the prior year. The decrease in the provision reflected improved delinquency trends and a reduction in the allowance for credit losses for the credit card portfolio as a result of lower estimated losses. Consumer net charge-offs¹were $3.6 billion, compared with $7.0 billion in the prior year, resulting in net charge-off rates of 3.77% and 6.61%, respectively. The wholesale provision for credit losses was a benefit of $386 million, compared with a benefit of $236 million in the prior year primarily reflecting continued improvement in the credit environment from the year-ago period. Wholesale net charge-offs were $165 million, compared with $959 million in the prior year, resulting in net charge-off rates of 0.30% and 1.84%, respectively. The Firm’s allowance for loan losses to end-of-period loans retained¹ was 4.10%, compared with 5.64% in the prior year. The Firm’s nonperforming assets totaled $15.0 billion at March 31, 2011, down from the prior-year level of $19.0 billion and from the prior-quarter level of $16.6 billion.

Noninterest expense was $16.0 billion, flat compared with the prior year, as higher compensation expense was offset by lower noncompensation expense.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted)

	•		Tier 1 Common ratio was 10.0% at March 31, 2011 (estimated), 9.8% at December 31, 2010, and 9.1% at March 31, 2010.

	•		Headcount was 242,929, an increase of 16,306, or 7%.

J.P. Morgan Chase & Co.
News Release

1. Notes on non-GAAP financial measures:

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

b. The ratio of 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 allowance for loan losses related to the purchased credit-impaired portfolio totaled $4.9 billion, $4.9 billion and $2.8 billion at March 31, 2011, December 31, 2010 and March 31, 2010, respectively.

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

d. Headcount-related expense includes salary and benefits (excluding performance-based incentives), and other noncompensation costs related to employees.

e. In Card Services, supplemental information is provided for Chase, excluding the Washington Mutual and Commercial Card portfolios, to provide more meaningful measures that enable comparability with prior periods.

f. Treasury & Securities Services firmwide metrics include certain TSS product revenue and liability balances reported in other lines of business related to customers who are also customers of those other lines of business. In order to capture the firmwide impact of TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary, in management’s view, in order to understand the aggregate TSS business.

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

J.P. Morgan Chase & Co.
News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. The Firm is a leader in investment banking, financial services for consumers, small-business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

JPMorgan Chase & Co. will host a conference call today at 9:00 a.m. (Eastern Time) to review first-quarter financial results. The general public can access the call by dialing (866) 541-2724 or (877) 368-8360 in the U.S. and Canada, or (706) 634-7246 for international participants. The live audio webcast and presentation slides will be available at the Firm’s website, www.jpmorganchase.com, under Investor Relations, Investor Presentations.

A replay of the conference call will be available beginning at approximately noon on Wednesday, April 13th, through midnight, Friday, April 29th, by telephone at (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (international); use Conference ID #52343593. The replay will also be available via webcast on www.jpmorganchase.com under Investor Relations, Investor Presentations. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available at www.jpmorganchase.com.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase & Co.’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co.’s Annual Report on Form 10-K for the year ended December 31, 2010, which has been filed with the U.S. Securities and Exchange Commission and is available on JPMorgan Chase & Co.’s website (www.jpmorganchase.com) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

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


	QUARTERLY TRENDS
										1Q11 Change
	1Q11			4Q10			1Q10			4Q10			1Q10
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue	$	25,221		$	26,098		$	27,671			(3)	%		(9	)%
Total noninterest expense		15,995			16,043			16,124			—			(1	)
Pre-provision profit		9,226			10,055			11,547			(8	)		(20	)
Provision for credit losses		1,169			3,043			7,010			(62	)		(83	)
NET INCOME		5,555			4,831			3,326			15			67

Managed Basis (a)
Total net revenue	$	25,791		$	26,722		$	28,172			(3	)		(8	)
Total noninterest expense		15,995			16,043			16,124			—			(1	)
Pre-provision profit		9,796			10,679			12,048			(8	)		(19	)
Provision for credit losses		1,169			3,043			7,010			(62	)		(83	)
NET INCOME		5,555			4,831			3,326			15			67

PER COMMON SHARE DATA
Basic Earnings		1.29			1.13			0.75			14			72
Diluted Earnings		1.28			1.12			0.74			14			73
Cash dividends declared		0.25			0.05			0.05			400			400
Book value		43.34			43.04			39.38			1			10
Closing share price (b)		46.10			42.42			44.75			9			3
Market capitalization		183,783			165,875			177,897			11			3

COMMON SHARES OUTSTANDING
Average: Basic		3,981.6			3,917.0			3,970.5			2			—
Diluted		4,014.1			3,935.2			3,994.7			2			—
Common shares at period-end		3,986.6			3,910.3			3,975.4			2			—

FINANCIAL RATIOS (c)
Return on common equity (“ROE”)		13	%		11	%		8	%
Return on tangible common equity (“ROTCE”) (d)		18			16			12
Return on assets (“ROA”)		1.07			0.92			0.66

CAPITAL RATIOS
Tier 1 capital ratio		12.3	(f)		12.1			11.5
Total capital ratio		15.6	(f)		15.5			15.1
Tier 1 common capital ratio (e)		10.0	(f)		9.8			9.1

SELECTED BALANCE SHEET DATA (Period-end)
Total assets	$	2,198,161		$	2,117,605		$	2,135,796			4			3
Wholesale loans		236,007			227,633			214,290			4			10
Consumer loans		449,989			465,294			499,509			(3	)		(10	)
Deposits		995,829			930,369			925,303			7			8
Common stockholders’ equity		172,798			168,306			156,569			3			10
Total stockholders’ equity		180,598			176,106			164,721			3			10

Deposits-to-loans ratio		145	%		134	%		130	%

Headcount		242,929			239,831			226,623			1			7

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	2,370		$	1,501		$	2,471			58			(4	)
Retail Financial Services		(208	)		708			(131	)	NM				(59	)
Card Services		1,343			1,299			(303	)		3		NM
Commercial Banking		546			530			390			3			40
Treasury & Securities Services		316			257			279			23			13
Asset Management		466			507			392			(8	)		19
Corporate/Private Equity		722			29			228		NM				217

NET INCOME	$	5,555		$	4,831		$	3,326			15			67


(a)		For further discussion of managed basis, see Note a. on page 13.

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

(c)		Quarterly ratios are based upon annualized amounts.

(d)		The Firm uses ROTCE, a non-GAAP financial measure, to evaluate the Firm’s use of equity and to facilitate comparisons with competitors. For further discussion of ROTCE, see page 43 of the Earnings Release Financial Supplement.

(e)		Tier 1 common capital ratio, a non-GAAP financial measure, is Tier 1 common capital divided by risk-weighted assets. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. For further discussion of Tier 1 common capital ratio, see page 43 of the Earnings Release Financial Supplement.

(f)		Estimated.

exv99w2

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2011



JPMORGAN CHASE & CO. TABLE OF CONTENTS


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

Business Detail
Line of Business Financial Highlights — Managed Basis		8
Investment Bank		9-12
Retail Financial Services		13-19
Card Services — Managed Basis		20-21
Commercial Banking		22-23
Treasury & Securities Services		24-25
Asset Management		26-30
Corporate/Private Equity		31-32

Credit-Related Information		33-38

Market Risk-Related Information		39

Supplemental Detail
Capital and Other Selected Balance Sheet Items		40
Mortgage Loan Repurchase Liability		41
Per Share-Related Information		42

Non-GAAP Financial Measures		43

Glossary of Terms		44-47

Page 1



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue	$	25,221		$	26,098		$	23,824		$	25,101		$	27,671			(3	)%		(9	)%
Total noninterest expense		15,995			16,043			14,398			14,631			16,124			—			(1	)
Pre-provision profit		9,226			10,055			9,426			10,470			11,547			(8	)		(20	)
Provision for credit losses		1,169			3,043			3,223			3,363			7,010			(62	)		(83	)
NET INCOME		5,555			4,831			4,418			4,795			3,326			15			67

Managed Basis (a)
Total net revenue	$	25,791		$	26,722		$	24,335		$	25,613		$	28,172			(3	)		(8	)
Total noninterest expense		15,995			16,043			14,398			14,631			16,124			—			(1	)
Pre-provision profit		9,796			10,679			9,937			10,982			12,048			(8	)		(19	)
Provision for credit losses		1,169			3,043			3,223			3,363			7,010			(62	)		(83	)
NET INCOME		5,555			4,831			4,418			4,795			3,326			15			67

PER COMMON SHARE DATA
Basic Earnings		1.29			1.13			1.02			1.10			0.75			14			72
Diluted Earnings		1.28			1.12			1.01			1.09			0.74			14			73
Cash dividends declared		0.25			0.05			0.05			0.05			0.05			400			400
Book value		43.34			43.04			42.29			40.99			39.38			1			10
Closing share price (b)		46.10			42.42			38.06			36.61			44.75			9			3
Market capitalization		183,783			165,875			149,418			145,554			177,897			11			3

COMMON SHARES OUTSTANDING
Average: Basic		3,981.6			3,917.0			3,954.3			3,983.5			3,970.5			2			—
Diluted		4,014.1			3,935.2			3,971.9			4,005.6			3,994.7			2			—
Common shares at period-end		3,986.6			3,910.3			3,925.8			3,975.8			3,975.4			2			—

FINANCIAL RATIOS (c)
Return on common equity (“ROE”)		13	%		11	%		10	%		12	%		8	%
Return on tangible common equity (“ROTCE”) (d)		18			16			15			17			12
Return on assets (“ROA”)		1.07			0.92			0.86			0.94			0.66

CAPITAL RATIOS
Tier 1 capital ratio		12.3	(f)		12.1			11.9			12.1			11.5
Total capital ratio		15.6	(f)		15.5			15.4			15.8			15.1
Tier 1 common capital ratio (e)		10.0	(f)		9.8			9.5			9.6			9.1


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

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

(c)		Quarterly ratios are based upon annualized amounts.

(d)		The Firm uses ROTCE, a non-GAAP financial measure, to evaluate the Firm’s use of equity and to facilitate comparisons with competitors. For further discussion of ROTCE, see page 43.

(e)		Tier 1 common capital ratio is Tier 1 common capital divided by risk-weighted assets. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. For further discussion of Tier 1 common capital ratio, see page 43.

(f)		Estimated.

Page 2



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
SELECTED BALANCE SHEET DATA (Period-end)
Total assets	$	2,198,161		$	2,117,605		$	2,141,595		$	2,014,019		$	2,135,796			4	%		3	%
Wholesale loans		236,007			227,633			220,597			216,826			214,290			4			10
Consumer loans		449,989			465,294			469,934			482,657			499,509			(3	)		(10	)
Deposits		995,829			930,369			903,138			887,805			925,303			7			8
Common stockholders’ equity		172,798			168,306			166,030			162,968			156,569			3			10
Total stockholders’ equity		180,598			176,106			173,830			171,120			164,721			3			10

Deposits-to-loans ratio		145	%		134	%		131	%		127	%		130	%

Headcount		242,929			239,831			236,810			232,939			226,623			1			7

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	2,370		$	1,501		$	1,286		$	1,381		$	2,471			58			(4	)
Retail Financial Services		(208	)		708			907			1,042			(131	)	NM				(59	)
Card Services		1,343			1,299			735			343			(303	)		3		NM
Commercial Banking		546			530			471			693			390			3			40
Treasury & Securities Services		316			257			251			292			279			23			13
Asset Management		466			507			420			391			392			(8	)		19
Corporate/Private Equity		722			29			348			653			228		NM				217

NET INCOME	$	5,555		$	4,831		$	4,418		$	4,795		$	3,326			15			67

Page 3



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
REVENUE
Investment banking fees	$	1,793		$	1,832		$	1,476		$	1,421		$	1,461			(2	)%		23	%
Principal transactions		4,745			1,915			2,341			2,090			4,548			148			4
Lending- and deposit-related fees		1,546			1,545			1,563			1,586			1,646			—			(6	)
Asset management, administration and commissions		3,606			3,697			3,188			3,349			3,265			(2	)		10
Securities gains		102			1,253			102			1,000			610			(92	)		(83	)
Mortgage fees and related income		(487	)		1,617			707			888			658		NM			NM
Credit card income		1,437			1,558			1,477			1,495			1,361			(8	)		6
Other income		574			579			468			585			412			(1	)		39

Noninterest revenue		13,316			13,996			11,322			12,414			13,961			(5	)		(5	)
Interest income		15,643			15,612			15,606			15,719			16,845			—			(7	)
Interest expense		3,738			3,510			3,104			3,032			3,135			6			19

Net interest income		11,905			12,102			12,502			12,687			13,710			(2	)		(13	)

TOTAL NET REVENUE		25,221			26,098			23,824			25,101			27,671			(3	)		(9	)
Provision for credit losses		1,169			3,043			3,223			3,363			7,010			(62	)		(83	)
NONINTEREST EXPENSE
Compensation expense		8,263			6,571			6,661			7,616			7,276			26			14
Occupancy expense		978			1,045			884			883			869			(6	)		13
Technology, communications and equipment expense		1,200			1,198			1,184			1,165			1,137			—			6
Professional and outside services		1,735			1,789			1,718			1,685			1,575			(3	)		10
Marketing		659			584			651			628			583			13			13
Other expense		2,943			4,616			3,082			2,419			4,441			(36	)		(34	)
Amortization of intangibles		217			240			218			235			243			(10	)		(11	)

TOTAL NONINTEREST EXPENSE		15,995			16,043			14,398			14,631			16,124			—			(1	)

Income before income tax expense		8,057			7,012			6,203			7,107			4,537			15			78
Income tax expense (a)		2,502			2,181			1,785			2,312			1,211			15			107

NET INCOME	$	5,555		$	4,831		$	4,418		$	4,795		$	3,326			15			67


PER COMMON SHARE DATA
Basic earnings	$	1.29		$	1.13		$	1.02		$	1.10		$	0.75			14			72
Diluted earnings		1.28			1.12			1.01			1.09			0.74			14			73

FINANCIAL RATIOS
Return on equity		13	%		11	%		10	%		12	%		8	%
Return on tangible common equity (b)		18			16			15			17			12
Return on assets		1.07			0.92			0.86			0.94			0.66
Effective income tax rate (a)		31			31			29			33			27
Overhead ratio		63			61			60			58			58


(a)		The income tax expense in the first quarter of 2010 included tax benefits recognized upon the resolution of tax audits.

(b)		The Firm uses return on tangible common equity, a non-GAAP financial measure, to evaluate the Firm’s use of equity and to facilitate comparisons with competitors. For further discussion of ROTCE, see page 43.

Page 4



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


																March 31, 2011
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2011			2010			2010			2010			2010			2010			2010
ASSETS
Cash and due from banks	$	23,469		$	27,567		$	23,960		$	32,806		$	31,422			(15	)%		(25	)%
Deposits with banks		80,842			21,673			31,077			39,430			59,014			273			37
Federal funds sold and securities purchased under resale agreements		217,356			222,554			235,390			199,024			230,123			(2	)		(6	)
Securities borrowed		119,000			123,587			127,365			122,289			126,741			(4	)		(6	)
Trading assets:
Debt and equity instruments		422,404			409,411			378,222			317,293			346,712			3			22
Derivative receivables		78,744			80,481			97,293			80,215			79,416			(2	)		(1	)
Securities		334,800			316,336			340,168			312,013			344,376			6			(3	)
Loans		685,996			692,927			690,531			699,483			713,799			(1	)		(4	)
Less: Allowance for loan losses		29,750			32,266			34,161			35,836			38,186			(8	)		(22	)

Loans, net of allowance for loan losses		656,246			660,661			656,370			663,647			675,613			(1	)		(3	)
Accrued interest and accounts receivable		79,236			70,147			63,224			61,295			53,991			13			47
Premises and equipment		13,422			13,355			11,316			11,267			11,123			1			21
Goodwill		48,856			48,854			48,736			48,320			48,359			—			1
Mortgage servicing rights		13,093			13,649			10,305			11,853			15,531			(4	)		(16	)
Other intangible assets		3,857			4,039			3,982			4,178			4,383			(5	)		(12	)
Other assets		106,836			105,291			114,187			110,389			108,992			1			(2	)

TOTAL ASSETS	$	2,198,161		$	2,117,605		$	2,141,595		$	2,014,019		$	2,135,796			4			3


LIABILITIES
Deposits	$	995,829		$	930,369		$	903,138		$	887,805		$	925,303			7			8
Federal funds purchased and securities loaned or sold under repurchase agreements		285,444			276,644			314,161			237,455			295,171			3			(3	)
Commercial paper		46,022			35,363			38,611			41,082			50,554			30			(9	)
Other borrowed funds (a)		36,704			34,325			35,736			32,607			33,153			7			11
Trading liabilities:
Debt and equity instruments		80,031			76,947			82,919			74,745			78,228			4			2
Derivative payables		61,362			69,219			74,902			60,137			62,741			(11	)		(2	)
Accounts payable and other liabilities		171,638			170,330			169,365			160,478			154,185			1			11
Beneficial interests issued by consolidated VIEs		70,917			77,649			77,438			88,148			93,055			(9	)		(24	)
Long-term debt (a)		269,616			270,653			271,495			260,442			278,685			—			(3	)

TOTAL LIABILITIES		2,017,563			1,941,499			1,967,765			1,842,899			1,971,075			4			2

STOCKHOLDERS’ EQUITY
Preferred stock		7,800			7,800			7,800			8,152			8,152			—			(4	)
Common stock		4,105			4,105			4,105			4,105			4,105			—			—
Capital surplus		94,660			97,415			96,938			96,745			96,450			(3	)		(2	)
Retained earnings		78,342			73,998			69,531			65,465			61,043			6			28
Accumulated other comprehensive income		712			1,001			3,096			2,404			761			(29	)		(6	)
Shares held in RSU Trust, at cost		(53	)		(53	)		(68	)		(68	)		(68	)		—			22
Treasury stock, at cost		(4,968	)		(8,160	)		(7,572	)		(5,683	)		(5,722	)		39			13

TOTAL STOCKHOLDERS’ EQUITY		180,598			176,106			173,830			171,120			164,721			3			10

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,198,161		$	2,117,605		$	2,141,595		$	2,014,019		$	2,135,796			4			3


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

Page 5



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
AVERAGE BALANCES
ASSETS
Deposits with banks	$	37,155		$	29,213		$	38,747		$	58,737		$	64,229			27	%		(42	)%
Federal funds sold and securities purchased under resale agreements		202,481			201,489			192,099			189,573			170,036			—			19
Securities borrowed		114,589			119,973			121,302			113,650			114,636			(4	)		—
Trading assets — debt instruments		275,512			273,929			251,790			245,532			248,089			1			11
Securities		318,936			328,126			327,798			327,425			337,441			(3	)		(5	)
Loans		688,133			690,529			693,791			705,189			725,136			—			(5	)
Other assets (a)		49,887			42,583			36,912			34,429			27,885			17			79

Total interest-earning assets		1,686,693			1,685,842			1,662,439			1,674,535			1,687,452			—			—
Trading assets — equity instruments		141,951			122,827			96,200			95,080			83,674			16			70
Trading assets — derivative receivables		85,437			87,569			92,857			79,409			78,683			(2	)		9
All other noninterest-earning assets		190,371			192,906			189,617			194,623			188,871			(1	)		1

TOTAL ASSETS	$	2,104,452		$	2,089,144		$	2,041,113		$	2,043,647		$	2,038,680			1			3


LIABILITIES
Interest-bearing deposits	$	700,921		$	669,346		$	659,027		$	668,953		$	677,431			5			3
Federal funds purchased and securities loaned or sold under repurchase agreements		278,250			287,493			281,171			273,614			271,934			(3	)		2
Commercial paper		36,838			34,507			34,523			37,557			37,461			7			(2	)
Trading liabilities — debt instruments		75,047			77,096			73,278			72,276			65,154			(3	)		15
Other borrowings and liabilities (b)(c)		118,767			119,744			114,732			117,550			104,080			(1	)		14
Beneficial interests issued by consolidated VIEs		72,932			78,114			83,928			90,085			98,104			(7	)		(26	)
Long-term debt (c)		269,156			273,066			267,556			270,085			281,744			(1	)		(4	)

Total interest-bearing liabilities		1,551,911			1,539,366			1,514,215			1,530,120			1,535,908			1			1
Noninterest-bearing deposits		229,461			225,966			213,700			209,615			200,075			2			15
Trading liabilities — equity instruments		7,872			7,166			6,560			5,216			5,728			10			37
Trading liabilities — derivative payables		71,288			71,727			69,350			62,547			59,053			(1	)		21
All other noninterest-bearing liabilities		66,705			70,307			65,335			68,928			73,670			(5	)		(9	)

TOTAL LIABILITIES		1,927,237			1,914,532			1,869,160			1,876,426			1,874,434			1			3

Preferred stock		7,800			7,800			7,991			8,152			8,152			—			(4	)
Common stockholders’ equity		169,415			166,812			163,962			159,069			156,094			2			9

TOTAL STOCKHOLDERS’ EQUITY		177,215			174,612			171,953			167,221			164,246			1			8

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,104,452		$	2,089,144		$	2,041,113		$	2,043,647		$	2,038,680			1			3


AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks		1.11	%		1.02	%		0.85	%		0.63	%		0.60	%
Federal funds sold and securities purchased under resale agreements		1.09			1.05			0.92			0.84			0.97
Securities borrowed		0.17			0.16			0.22			0.11			0.10
Trading assets — debt instruments		4.59			4.29			4.37			4.25			4.56
Securities		2.89			2.44			2.67			3.14			3.54
Loans		5.62			5.71			5.71			5.68			5.91
Other assets (a)		1.20			1.54			1.57			1.60			1.36
Total interest-earning assets		3.79			3.70			3.75			3.79			4.07

INTEREST-BEARING LIABILITIES
Interest-bearing deposits		0.53			0.50			0.51			0.53			0.51
Federal funds purchased and securities loaned or sold under repurchase agreements		0.17			0.12			(0.28)	(d)		(0.07)	(d)		(0.05)	(d)
Commercial paper		0.21			0.21			0.20			0.19			0.19
Trading liabilities — debt instruments		3.85			2.30			2.64			2.49			3.39
Other borrowings and liabilities (b)(c)		0.57			1.11			0.39			0.27			0.12
Beneficial interests issued by consolidated VIEs		1.19			1.13			1.36			1.36			1.36
Long-term debt (c)		2.39			2.25			2.30			2.00			2.01
Total interest-bearing liabilities		0.98			0.90			0.81			0.79			0.83

INTEREST RATE SPREAD		2.81	%		2.80	%		2.94	%		3.00	%		3.24	%

NET YIELD ON INTEREST-EARNING ASSETS		2.89	%		2.88	%		3.01	%		3.06	%		3.32	%


(a)		Includes margin loans.

(b)		Includes brokerage customer payables and short-term advances from FHLB.

(c)		Effective January 1, 2011, the long-term portion of the advances from FHLB was reclassified to long-term debt. Prior periods have been revised to conform with the current presentation.

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

Page 6



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

The Firm prepares its consolidated financial statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported basis,” provides the reader with an understanding of the Firm’s results that can be tracked consistently from year to year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements.

In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 43.

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


	QUARTERLY TRENDS
											1Q11 Change
	1Q11		4Q10		3Q10		2Q10		1Q10		4Q10			1Q10
OTHER INCOME
Other income — reported	$	574	$	579	$	468	$	585	$	412		(1	)%		39	%
Fully tax-equivalent adjustments		451		503		415		416		411		(10	)		10

Other income — managed	$	1,025	$	1,082	$	883	$	1,001	$	823		(5	)		25


TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	13,316	$	13,996	$	11,322	$	12,414	$	13,961		(5	)		(5	)
Fully tax-equivalent adjustments		451		503		415		416		411		(10	)		10

Total noninterest revenue — managed	$	13,767	$	14,499	$	11,737	$	12,830	$	14,372		(5	)		(4	)


NET INTEREST INCOME
Net interest income — reported	$	11,905	$	12,102	$	12,502	$	12,687	$	13,710		(2	)		(13	)
Fully tax-equivalent adjustments		119		121		96		96		90		(2	)		32

Net interest income — managed	$	12,024	$	12,223	$	12,598	$	12,783	$	13,800		(2	)		(13	)


TOTAL NET REVENUE
Total net revenue — reported	$	25,221	$	26,098	$	23,824	$	25,101	$	27,671		(3	)		(9	)
Fully tax-equivalent adjustments		570		624		511		512		501		(9	)		14

Total net revenue — managed	$	25,791	$	26,722	$	24,335	$	25,613	$	28,172		(3	)		(8	)


PRE-PROVISION PROFIT
Total pre-provision profit — reported	$	9,226	$	10,055	$	9,426	$	10,470	$	11,547		(8	)		(20	)
Fully tax-equivalent adjustments		570		624		511		512		501		(9	)		14

Total pre-provision profit — managed	$	9,796	$	10,679	$	9,937	$	10,982	$	12,048		(8	)		(19	)


INCOME TAX EXPENSE
Income tax expense — reported	$	2,502	$	2,181	$	1,785	$	2,312	$	1,211		15			107
Fully tax-equivalent adjustments		570		624		511		512		501		(9	)		14

Income tax expense — managed	$	3,072	$	2,805	$	2,296	$	2,824	$	1,712		10			79

Page 7



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
TOTAL NET REVENUE (FTE)
Investment Bank (a)	$	8,233		$	6,213		$	5,353		$	6,332		$	8,319			33	%		(1	)%
Retail Financial Services		6,275			8,525			7,646			7,809			7,776			(26	)		(19	)
Card Services		3,982			4,246			4,253			4,217			4,447			(6	)		(10	)
Commercial Banking		1,516			1,611			1,527			1,486			1,416			(6	)		7
Treasury & Securities Services		1,840			1,913			1,831			1,881			1,756			(4	)		5
Asset Management		2,406			2,613			2,172			2,068			2,131			(8	)		13
Corporate/Private Equity (a)		1,539			1,601			1,553			1,820			2,327			(4	)		(34	)

TOTAL NET REVENUE	$	25,791		$	26,722		$	24,335		$	25,613		$	28,172			(3	)		(8	)


TOTAL PRE-PROVISION PROFIT
Investment Bank (a)	$	3,217		$	2,012		$	1,649		$	1,810		$	3,481			60			(8	)
Retail Financial Services		1,013			3,701			3,129			3,528			3,534			(73	)		(71	)
Card Services		2,427			2,732			2,808			2,781			3,045			(11	)		(20	)
Commercial Banking		953			1,053			967			944			877			(9	)		9
Treasury & Securities Services		463			443			421			482			431			5			7
Asset Management		746			836			684			663			689			(11	)		8
Corporate/Private Equity (a)		977			(98	)		279			774			(9	)	NM			NM

TOTAL PRE-PROVISION PROFIT	$	9,796		$	10,679		$	9,937		$	10,982		$	12,048			(8	)		(19	)


NET INCOME/(LOSS)
Investment Bank	$	2,370		$	1,501		$	1,286		$	1,381		$	2,471			58			(4	)
Retail Financial Services		(208	)		708			907			1,042			(131	)	NM				(59	)
Card Services		1,343			1,299			735			343			(303	)		3		NM
Commercial Banking		546			530			471			693			390			3			40
Treasury & Securities Services		316			257			251			292			279			23			13
Asset Management		466			507			420			391			392			(8	)		19
Corporate/Private Equity		722			29			348			653			228		NM				217

TOTAL NET INCOME	$	5,555		$	4,831		$	4,418		$	4,795		$	3,326			15			67


AVERAGE EQUITY (b)
Investment Bank	$	40,000		$	40,000		$	40,000		$	40,000		$	40,000			—			—
Retail Financial Services		28,000			28,000			28,000			28,000			28,000			—			—
Card Services		13,000			15,000			15,000			15,000			15,000			(13	)		(13	)
Commercial Banking		8,000			8,000			8,000			8,000			8,000			—			—
Treasury & Securities Services		7,000			6,500			6,500			6,500			6,500			8			8
Asset Management		6,500			6,500			6,500			6,500			6,500			—			—
Corporate/Private Equity		66,915			62,812			59,962			55,069			52,094			7			28

TOTAL AVERAGE EQUITY	$	169,415		$	166,812		$	163,962		$	159,069		$	156,094			2			9


RETURN ON EQUITY (b)
Investment Bank		24	%		15	%		13	%		14	%		25	%
Retail Financial Services		(3	)		10			13			15			(2	)
Card Services		42			34			19			9			(8	)
Commercial Banking		28			26			23			35			20
Treasury & Securities Services		18			16			15			18			17
Asset Management		29			31			26			24			24
JPMORGAN CHASE		13			11			10			12			8


(a)		Corporate/Private Equity includes an adjustment to offset IB’s inclusion of a credit allocation income/expense to/from TSS in total net revenue; TSS reports the credit allocation as a separate line on its income statement (not within total net revenue).

(b)		Equity for a line of business represents the amount the Firm believes the business would require if it were operating independently, incorporating sufficient capital to address economic risk measures, regulatory capital requirements and capital levels for similarly rated peers. Capital is also allocated to each line of business for, among other things, goodwill and other intangibles associated with acquisitions effected by the line of business. Return on common equity is measured and internal targets for expected returns are established as key measures of a business segment’s performance. Effective January 1, 2011, capital allocated to Card Services was reduced by $2.0 billion, to $13.0 billion, which largely reflects portfolio runoff and the improving risk profile of the business; capital allocated to Treasury & Securities Services was increased by $500 million, to $7.0 billion.

Page 8



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,779		$	1,833		$	1,502		$	1,405		$	1,446			(3	)%		23	%
Principal transactions		3,398			1,289			1,129			2,105			3,931			164			(14	)
Lending- and deposit-related fees		214			209			205			203			202			2			6
Asset management, administration and commissions		619			652			565			633			563			(5	)		10
All other income (a)		166			185			61			86			49			(10	)		239

Noninterest revenue		6,176			4,168			3,462			4,432			6,191			48			—
Net interest income		2,057			2,045			1,891			1,900			2,128			1			(3	)

TOTAL NET REVENUE (b)		8,233			6,213			5,353			6,332			8,319			33			(1	)

Provision for credit losses		(429	)		(271	)		(142	)		(325	)		(462	)		(58	)		7

NONINTEREST EXPENSE
Compensation expense		3,294			1,845			2,031			2,923			2,928			79			13
Noncompensation expense		1,722			2,356			1,673			1,599			1,910			(27	)		(10	)

TOTAL NONINTEREST EXPENSE		5,016			4,201			3,704			4,522			4,838			19			4


Income before income tax expense		3,646			2,283			1,791			2,135			3,943			60			(8	)
Income tax expense		1,276			782			505			754			1,472			63			(13	)

NET INCOME	$	2,370		$	1,501		$	1,286		$	1,381		$	2,471			58			(4	)


FINANCIAL RATIOS
ROE		24	%		15	%		13	%		14	%		25	%
ROA		1.18			0.75			0.68			0.78			1.48
Overhead ratio		61			68			69			71			58
Compensation expense as a percent of total net revenue (c)		40			30			38			46			35

REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	429		$	424		$	385		$	355		$	305			1			41
Equity underwriting		379			489			333			354			413			(22	)		(8	)
Debt underwriting		971			920			784			696			728			6			33

Total investment banking fees		1,779			1,833			1,502			1,405			1,446			(3	)		23
Fixed income markets		5,238			2,875			3,123			3,563			5,464			82			(4	)
Equity markets		1,406			1,128			1,135			1,038			1,462			25			(4	)
Credit portfolio (a)		(190	)		377			(407	)		326			(53	)	NM				(258	)

Total net revenue	$	8,233		$	6,213		$	5,353		$	6,332		$	8,319			33			(1	)


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

(b)		Total net revenue included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as tax-exempt income from municipal bond investments of $438 million, $475 million, $390 million, $401 million and $403 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

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

Page 9



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
SELECTED BALANCE SHEET DATA (Period-end)
Loans:
Loans retained (a)	$	52,712		$	53,145		$	51,299		$	54,049		$	53,010			(1	)%		(1	)%
Loans held-for-sale and loans at fair value		5,070			3,746			2,252			3,221			3,594			35			41

Total loans		57,782			56,891			53,551			57,270			56,604			2			2
Equity		40,000			40,000			40,000			40,000			40,000			—			—

SELECTED BALANCE SHEET DATA (Average)
Total assets	$	815,828		$	792,703		$	746,926		$	710,005		$	676,122			3			21
Trading assets — debt and equity instruments		368,956			346,990			300,517			296,031			284,085			6			30
Trading assets — derivative receivables		67,462			72,491			76,530			65,847			66,151			(7	)		2
Loans:
Loans retained (a)		53,370			52,502			53,331			53,351			58,501			2			(9	)
Loans held-for-sale and loans at fair value		3,835			3,504			2,678			3,530			3,150			9			22

Total loans		57,205			56,006			56,009			56,881			61,651			2			(7	)
Adjusted assets (b)		611,038			587,307			539,459			527,520			506,635			4			21
Equity		40,000			40,000			40,000			40,000			40,000			—			—

Headcount		26,494			26,314			26,373			26,279			24,977			1			6

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	123		$	(23	)	$	33		$	28		$	697		NM				(82	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(c)		2,388			3,159			2,025			1,926			2,459			(24	)		(3	)
Nonaccrual loans held-for-sale and loans at fair value		259			460			361			334			282			(44	)		(8	)

Total nonaccrual loans		2,647			3,619			2,386			2,260			2,741			(27	)		(3	)

Derivative receivables		21			34			255			315			363			(38	)		(94	)
Assets acquired in loan satisfactions		73			117			148			151			185			(38	)		(61	)

Total nonperforming assets		2,741			3,770			2,789			2,726			3,289			(27	)		(17	)
Allowance for credit losses:
Allowance for loan losses		1,330			1,863			1,976			2,149			2,601			(29	)		(49	)
Allowance for lending-related commitments		424			447			570			564			482			(5	)		(12	)

Total allowance for credit losses		1,754			2,310			2,546			2,713			3,083			(24	)		(43	)

Net charge-off/(recovery) rate (a)(d)		0.93	%		(0.17	)%		0.25	%		0.21	%		4.83	%
Allow. for loan losses to period-end loans retained (a)(d)		2.52			3.51			3.85			3.98			4.91
Allow. for loan losses to nonaccrual loans retained (a)(c)(d)		56			59			98			112			106
Nonaccrual loans to total period-end loans		4.58			6.36			4.46			3.95			4.84


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

(b)		Adjusted assets, a non-GAAP financial measure, is presented to assist the reader in comparing IB’s asset and capital levels to other investment banks in the securities industry. For further discussion of adjusted assets, see page 43.

(c)		Allowance for loan losses of $567 million, $1.1 billion, $603 million, $617 million and $811 million were held against these nonaccrual loans at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

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

Page 10



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR - 95% CONFIDENCE LEVEL
Trading activities:
Fixed income	$	49		$	53		$	72		$	64		$	69			(8)	%		(29	)%
Foreign exchange		11			10			9			10			13			10			(15	)
Equities		29			23			21			20			24			26			21
Commodities and other		13			14			13			20			15			(7	)		(13	)
Diversification (a)		(38	)		(38	)		(38	)		(42	)		(49	)		—			22

Total trading VaR (b)		64			62			77			72			72			3			(11	)

Credit portfolio VaR (c)		26			26			30			27			19			—			37
Diversification (a)		(7	)		(10	)		(8	)		(9	)		(9	)		30			22

Total trading and credit portfolio VaR	$	83		$	78		$	99		$	90		$	82			6			1


	March 31, 2011 YTD					Full Year 2010
	Market					Market
	Share			Rankings		Share			Rankings
MARKET SHARES AND RANKINGS (d)
Global investment banking fees (e)		8.6	%		#1		7.6	%		#1
Debt, equity and equity-related
Global		6.6			3		7.2			1
U.S.		11.8			1		11.1			1
Syndicated loans
Global		12.3			1		8.5			1
U.S.		24.5			1		19.3			2
Long-term debt (f)
Global		6.7			3		7.2			2
U.S.		11.8			1		10.9			2
Equity and equity-related
Global (g)		5.7			7		7.3			3
U.S.		9.5			4		12.6			2
Announced M&A (h)
Global		26.8			1		16.3			3
U.S.		44.5			1		23.0			3


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

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

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

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

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

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

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

(h)		Global announced M&A is based on transaction value at announcement; all other rankings are based on transaction proceeds, with full credit to each book manager/equal if joint. Because of joint assignments, market share of all participants will add up to more than 100%. M&A for the first quarter 2011 and full year 2010 reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S. involvement ranking.

Page 11



JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED


	QUARTERLY TRENDS
											1Q11 Change
	1Q11		4Q10		3Q10		2Q10		1Q10		4Q10			1Q10
INTERNATIONAL METRICS
Total net revenue: (in millions) (a)
Asia/Pacific	$	1,122	$	927	$	993	$	901	$	988		21	%		14	%
Latin America/Caribbean		327		172		167		248		310		90			5
Europe/Middle East/Africa		2,592		1,423		1,538		1,544		2,875		82			(10	)
North America		4,192		3,691		2,655		3,639		4,146		14			1

Total net revenue	$	8,233	$	6,213	$	5,353	$	6,332	$	8,319		33			(1	)

Loans (period-end): (in millions) (b)
Asia/Pacific	$	5,472	$	5,924	$	5,595	$	5,697	$	6,195		(8	)		(12	)
Latin America/Caribbean		2,190		2,200		1,545		1,763		2,035		—			8
Europe/Middle East/Africa		14,059		13,961		12,781		12,959		12,510		1			12
North America		30,991		31,060		31,378		33,630		32,270		—			(4	)

Total loans	$	52,712	$	53,145	$	51,299	$	54,049	$	53,010		(1	)		(1	)


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

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

Page 12



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	746		$	737		$	759		$	780		$	841			1	%		(11	)%
Asset management, administration and commissions		487			456			443			433			452			7			8
Mortgage fees and related income		(489	)		1,609			705			886			655			NM			NM
Credit card income		537			524			502			480			450			2			19
Other income		364			370			379			413			354			(2	)		3

Noninterest revenue		1,645			3,696			2,788			2,992			2,752			(55	)		(40	)
Net interest income		4,630			4,829			4,858			4,817			5,024			(4	)		(8	)

TOTAL NET REVENUE (a)		6,275			8,525			7,646			7,809			7,776			(26	)		(19	)

Provision for credit losses		1,326			2,456			1,548			1,715			3,733			(46	)		(64	)

NONINTEREST EXPENSE
Compensation expense		1,971			1,905			1,915			1,842			1,770			3			11
Noncompensation expense		3,231			2,851			2,533			2,369			2,402			13			35
Amortization of intangibles		60			68			69			70			70			(12	)		(14	)

TOTAL NONINTEREST EXPENSE		5,262			4,824			4,517			4,281			4,242			9			24


Income/(loss) before income tax expense/(benefit)		(313	)		1,245			1,581			1,813			(199	)		NM			(57	)
Income tax expense/(benefit)		(105	)		537			674			771			(68	)		NM			(54	)

NET INCOME/(LOSS)	$	(208	)	$	708		$	907		$	1,042		$	(131	)		NM			(59	)


FINANCIAL RATIOS
ROE		(3	)%		10	%		13	%		15	%		(2	)%
Overhead ratio		84			57			59			55			55
Overhead ratio excluding core deposit intangibles (b)		83			56			58			54			54

SELECTED BALANCE SHEET DATA (period-end)
Assets	$	355,394		$	366,841		$	367,675		$	375,329		$	382,475			(3	)		(7	)
Loans:
Loans retained		308,827			316,725			323,481			330,329			339,002			(2	)		(9	)
Loans held-for-sale and loans at fair value (c)		12,234			14,863			13,071			12,599			11,296			(18	)		8

Total loans		321,061			331,588			336,552			342,928			350,298			(3	)		(8	)
Deposits		380,494			370,819			364,186			359,974			362,470			3			5
Equity		28,000			28,000			28,000			28,000			28,000			—			—

SELECTED BALANCE SHEET DATA (average)
Assets		364,266			373,883			375,968			381,906			393,867			(3	)		(8	)
Loans:
Loans retained		312,543			320,407			326,905			335,308			342,997			(2	)		(9	)
Loans held-for-sale and loans at fair value (c)		17,519			18,883			15,683			14,426			17,055			(7	)		3

Total loans		330,062			339,290			342,588			349,734			360,052			(3	)		(8	)
Deposits		372,634			367,920			362,559			362,010			356,934			1			4
Equity		28,000			28,000			28,000			28,000			28,000			—			—

Headcount		123,550			121,876			119,424			116,879			112,616			1			10


(a)		Total net revenue included tax-equivalent adjustments associated with tax-exempt loans to municipalities and other qualified entities of $3 million, $1 million, $4 million, $5 million and $5 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

(b)		Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Retail Banking’s CDI amortization expense related to prior business combination transactions of $60 million, $68 million, $69 million, $69 million and $70 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

(c)		Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $12.0 billion, $14.7 billion, $12.6 billion, $12.2 billion and $8.4 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Average balances of these loans totaled $17.4 billion, $18.7 billion, $15.3 billion, $12.5 billion and $14.2 billion for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

Page 13



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	1,326		$	2,159		$	1,548		$	1,761		$	2,438			(39	)%		(46	)%
Nonaccrual loans:
Nonaccrual loans retained		8,499			8,768			9,801			10,457			10,769			(3	)		(21	)
Nonaccrual loans held-for-sale and loans at fair value		150			145			166			176			217			3			(31	)

Total nonaccrual loans (a)(b)(c)		8,649			8,913			9,967			10,633			10,986			(3	)		(21	)
Nonperforming assets (a)(b)(c)		9,905			10,266			11,421			11,907			12,191			(4	)		(19	)
Allowance for loan losses		16,453			16,453			16,154			16,152			16,200			—			2

Net charge-off rate (d)		1.72	%		2.67	%		1.88	%		2.11	%		2.88	%
Net charge-off rate excluding purchased credit-impaired (“PCI”) loans (d)(e)		2.23			3.47			2.44			2.75			3.76
Allowance for loan losses to ending loans retained (d)		5.33			5.19			4.99			4.89			4.78
Allowance for loan losses to ending loans retained excluding PCI loans (d)(e)		4.84			4.72			5.36			5.26			5.16
Allowance for loan losses to nonaccrual loans retained (a)(d)(e)		135			131			136			128			124
Nonaccrual loans to total loans		2.69			2.69			2.96			3.10			3.14
Nonaccrual loans to total loans excluding PCI loans (a)		3.46			3.44			3.81			4.00			4.05


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

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

(c)		At March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.8 billion, $10.5 billion, $10.2 billion, $10.1 billion and $10.5 billion, respectively, that are 90 days past due and accruing at the guaranteed reimbursement rate; (2) real estate owned insured by U.S. government agencies of $2.3 billion, $1.9 billion, $1.7 billion, $1.4 billion and $707 million, respectively; and (3) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”), of $615 million, $625 million, $572 million, $447 million and $581 million, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

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

(e)		Excludes the impact of PCI loans that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management’s estimate, as of that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $4.9 billion, $4.9 billion, $2.8 billion, $2.8 billion and $2.8 billion was recorded for these loans at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, which has also been excluded from the applicable ratios. To date, no charge-offs have been recorded for these loans.

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
RETAIL BANKING
Noninterest revenue	$	1,756		$	1,715		$	1,691		$	1,684		$	1,702			2	%		3	%
Net interest income		2,659			2,693			2,745			2,712			2,635			(1	)		1

Total net revenue		4,415			4,408			4,436			4,396			4,337			—			2
Provision for credit losses		119			73			175			168			191			63			(38	)
Noninterest expense		2,802			2,668			2,779			2,633			2,577			5			9

Income before income tax expense		1,494			1,667			1,482			1,595			1,569			(10	)		(5	)

Net income	$	891		$	954		$	848		$	914		$	898			(7	)		(1	)


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

BUSINESS METRICS (in billions, except where otherwise noted)
Business banking origination volume (in millions)	$	1,425		$	1,435		$	1,126		$	1,222		$	905			(1	)		57
End-of-period loans owned		17.0			16.8			16.6			16.6			16.8			1			1
End-of-period deposits:
Checking		137.4			131.7			124.2			123.5			123.8			4			11
Savings		176.3			166.6			162.4			161.8			163.4			6			8
Time and other		44.0			45.9			48.9			50.5			53.2			(4	)		(17	)

Total end-of-period deposits		357.7			344.2			335.5			335.8			340.4			4			5
Average loans owned		16.9			16.6			16.6			16.7			16.9			2			—
Average deposits:
Checking		132.0			126.6			123.5			123.6			119.7			4			10
Savings		171.1			164.7			162.2			162.8			158.6			4			8
Time and other		45.0			47.4			49.8			51.4			55.6			(5	)		(19	)

Total average deposits		348.1			338.7			335.5			337.8			333.9			3			4
Deposit margin		2.92	%		3.00	%		3.08	%		3.05	%		3.02	%
Average assets	$	28.7		$	28.3		$	27.7		$	28.4		$	28.9			1			(1	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs		119			173			175			168			191			(31	)		(38	)
Net charge-off rate		2.86	%		4.13	%		4.18	%		4.04	%		4.58	%
Nonperforming assets	$	822		$	846		$	913		$	920		$	872			(3	)		(6	)

RETAIL BRANCH BUSINESS METRICS
Investment sales volume		6,584			6,069			5,798			5,756			5,956			8			11

Number of:
Branches		5,292			5,268			5,192			5,159			5,155			—			3
ATMs		16,265			16,145			15,815			15,654			15,549			1			5
Personal bankers		21,875			21,715			21,438			20,170			19,003			1			15
Sales specialists		7,336			7,196			7,123			6,785			6,315			2			16
Active online customers (in thousands)		18,318			17,744			17,167			16,584			16,208			3			13
Checking accounts (in thousands)		26,622			27,252			27,014			26,351			25,830			(2	)		3


(a)		Retail Banking uses the overhead ratio (excluding the amortization of CDI), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Retail Banking’s CDI amortization expense related to prior business combination transactions of $60 million, $68 million, $69 million, $69 million and $70 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

Page 15



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
MORTGAGE BANKING, AUTO & OTHER CONSUMER LENDING
Noninterest revenue	$	(119	)	$	1,971		$	1,076		$	1,256		$	1,018			NM	%		NM	%
Net interest income		815			817			809			792			893			—			(9	)

Total net revenue		696			2,788			1,885			2,048			1,911			(75	)		(64	)
Provision for credit losses		131			46			176			175			217			185			(40	)
Noninterest expense		2,105			1,743			1,348			1,243			1,246			21			69

Income/(loss) before income tax expense/(benefit)		(1,540	)		999			361			630			448			NM			NM

Net income/(loss)	$	(937	)	$	577		$	207		$	364		$	257			NM			NM


Overhead ratio		302	%		63	%		72	%		61	%		65	%

BUSINESS METRICS (in billions)
End-of-period loans owned:
Auto	$	47.4		$	48.4		$	48.2		$	47.5		$	47.4			(2	)		—
Prime mortgage, including option ARMs (a)		14.1			14.2			13.8			13.2			13.7			(1	)		3
Student and other		14.3			14.4			14.6			15.1			17.4			(1	)		(18	)

Total end-of-period loans owned		75.8			77.0			76.6			75.8			78.5			(2	)		(3	)
Average loans owned:
Auto		47.7			48.3			47.7			47.5			46.9			(1	)		2
Prime mortgage, including option ARMs (a)		14.0			13.9			13.6			13.6			12.5			1			12
Student and other		14.4			14.6			14.8			16.7			18.4			(1	)		(22	)

Total average loans owned (b)		76.1			76.8			76.1			77.8			77.8			(1	)		(2	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Auto		47			71			67			58			102			(34	)		(54	)
Prime mortgage, including option ARMs		4			12			10			13			6			(67	)		(33	)
Student and other		80			114			82			150			64			(30	)		25

Total net charge-offs		131			197			159			221			172			(34	)		(24	)

Net charge-off rate:
Auto		0.40	%		0.58	%		0.56	%		0.49	%		0.88	%
Prime mortgage, including option ARMs		0.12			0.35			0.30			0.39			0.20
Student and other		2.25			3.10			2.21			4.04			1.64
Total net charge-off rate (b)		0.70			1.02			0.83			1.17			0.93

30+ day delinquency rate (c)(d)(e)		1.59			1.68			1.55			1.43			1.52
Nonperforming assets (f)(g)	$	931		$	996		$	1,052		$	1,013		$	1,006			(7	)		(7	)


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

(b)		Total average loans owned includes loans held-for-sale of $133 million, $192 million, $338 million, $1.9 billion and $2.9 billion for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. These amounts are excluded when calculating the net charge-off rate.

(c)		Total end-of-period loans owned includes loans held-for-sale of $188 million, $154 million, $467 million, $434 million and $2.9 billion for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. These amounts are excluded when calculating the 30+ day delinquency rate.

(d)		Excludes mortgage loans that are insured by U.S. government agencies of $10.4 billion, $11.4 billion, $11.1 billion, $10.9 billion and $11.2 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(e)		Excludes loans that are 30 days past due and still accruing, which are insured by U.S. government agencies under the FFELP, of $1.0 billion, $1.1 billion, $1.0 billion, $988 million and $965 million at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(f)		At March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.8 billion, $10.5 billion, $10.2 billion, $10.1 billion and $10.5 billion, respectively, that are 90 days past due and accruing at the guaranteed reimbursement rate; (2) real estate owned insured by U.S. government agencies of $2.3 billion, $1.9 billion, $1.7 billion, $1.4 billion and $707 million, respectively; and (3) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the FFELP, of $615 million, $625 million, $572 million, $447 million and $581 million, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(g)		During the third quarter of 2010, $147 million of nonperforming assets pertaining to the second quarter of 2010 were reclassified from Real Estate Portfolios to Mortgage Banking, Auto & Other Consumer Lending.

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
MORTGAGE BANKING, AUTO & OTHER CONSUMER LENDING (continued)
Origination volume:
Mortgage origination volume by channel
Retail	$	21.0		$	22.9		$	19.2		$	15.3		$	11.4			(8	)%		84	%
Wholesale (a)		0.2			0.3			0.2			0.4			0.4			(33	)		(50	)
Correspondent (a)		13.5			25.5			19.1			14.7			16.0			(47	)		(16	)
CNT (negotiated transactions)		1.5			2.1			2.4			1.8			3.9			(29	)		(62	)

Total mortgage origination volume		36.2			50.8			40.9			32.2			31.7			(29	)		14

Student		0.1			—			0.2			0.1			1.6			NM			(94	)
Auto		4.8			4.8			6.1			5.8			6.3			—			(24	)

Application volume:
Mortgage application volume by channel
Retail		31.3			32.4			34.6			27.8			20.3			(3	)		54
Wholesale (a)		0.3			0.4			0.6			0.6			0.8			(25	)		(63	)
Correspondent (a)		13.6			24.9			30.7			23.5			18.2			(45	)		(25	)

Total mortgage application volume		45.2			57.7			65.9			51.9			39.3			(22	)		15


Average mortgage loans held-for-sale and loans at fair value (b)		17.5			18.9			15.6			12.6			14.5			(7	)		21
Average assets		128.4			130.3			125.8			123.2			124.8			(1	)		3
Repurchase reserve (ending)		3.2			3.0			3.0			2.0			1.6			7			100
Third-party mortgage loans serviced (ending)		955.0			967.5			1,012.7			1,055.2			1,075.0			(1	)		(11	)
Third-party mortgage loans serviced (average)		958.7			981.7			1,028.6			1,063.7			1,076.4			(2	)		(11	)
MSR net carrying value (ending)		13.1			13.6			10.3			11.8			15.5			(4	)		(15	)
Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending)		1.37	%		1.41	%		1.02	%		1.12	%		1.44	%
Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average)		0.45			0.46			0.44			0.45			0.42
MSR revenue multiple (c)		3.04	x		3.07	x		2.32	x		2.49	x		3.43	x

SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions)
Net production revenue:
Production revenue	$	679		$	1,098		$	1,233		$	676		$	433			(38	)		57
Repurchase losses		(420	)		(349	)		(1,464	)		(667	)		(432	)		(20	)		3

Net production revenue		259			749			(231	)		9			1			(65	)		NM
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue		1,052			1,129			1,153			1,186			1,107			(7	)		(5	)
Other changes in MSR asset fair value		(563	)		(555	)		(604	)		(620	)		(605	)		(1	)		7

Total operating revenue		489			574			549			566			502			(15	)		(3	)
Risk management:
Changes in MSR asset fair value due to inputs or assumptions in model		(751	)		2,909			(1,497	)		(3,584	)		(96	)		NM			NM
Derivative valuation adjustments and other		(486	)		(2,623	)		1,884			3,895			248			81			NM

Total risk management		(1,237	)		286			387			311			152			NM			NM

Total net mortgage servicing revenue		(748	)		860			936			877			654			NM			NM

Mortgage fees and related income	$	(489	)	$	1,609		$	705		$	886		$	655			NM			NM


(a)		Includes rural housing loans sourced through brokers and correspondents, which are underwritten under U.S. Department of Agriculture guidelines.

(b)		Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. Average balances of these loans totaled $17.4 billion, $18.7 billion, $15.3 billion, $12.5 billion and $14.2 billion for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

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

Page 17



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	8		$	10		$	21		$	52		$	32			(20	)%		(75	)%
Net interest income		1,156			1,319			1,304			1,313			1,496			(12	)		(23	)

Total net revenue		1,164			1,329			1,325			1,365			1,528			(12	)		(24	)
Provision for credit losses		1,076			2,337			1,197			1,372			3,325			(54	)		(68	)
Noninterest expense		355			413			390			405			419			(14	)		(15	)

Income/(loss) before income tax expense/(benefit)		(267	)		(1,421	)		(262	)		(412	)		(2,216	)		81			88

Net income/(loss)	$	(162	)	$	(823	)	$	(148	)	$	(236	)	$	(1,286	)		80			87


Overhead ratio		30	%		31	%		29	%		30	%		27	%

BUSINESS METRICS (in billions)
LOANS EXCLUDING PCI LOANS (a)
End-of-period loans owned:
Home equity	$	85.3		$	88.4		$	91.7		$	94.8		$	97.7			(4	)		(13	)
Prime mortgage, including option ARMs		48.5			49.8			51.3			53.1			55.4			(3	)		(12	)
Subprime mortgage		10.8			11.3			12.0			12.6			13.2			(4	)		(18	)
Other		0.8			0.8			0.9			1.0			1.0			—			(20	)

Total end-of-period loans owned		145.4			150.3			155.9			161.5			167.3			(3	)		(13	)
Average loans owned:
Home equity		86.9			90.2			93.3			96.3			99.5			(4	)		(13	)
Prime mortgage, including option ARMs		49.3			50.7			52.2			54.3			56.6			(3	)		(13	)
Subprime mortgage		11.1			11.8			12.3			13.1			13.8			(6	)		(20	)
Other		0.8			0.9			1.0			1.0			1.1			(11	)		(27	)

Total average loans owned		148.1			153.6			158.8			164.7			171.0			(4	)		(13	)
PCI LOANS (a)
End-of-period loans owned:
Home equity		24.0			24.5			25.0			25.5			26.0			(2	)		(8	)
Prime mortgage		16.7			17.3			17.9			18.5			19.2			(3	)		(13	)
Subprime mortgage		5.3			5.4			5.5			5.6			5.8			(2	)		(9	)
Option ARMs		24.8			25.6			26.4			27.3			28.3			(3	)		(12	)

Total end-of-period loans owned		70.8			72.8			74.8			76.9			79.3			(3	)		(11	)
Average loans owned:
Home equity		24.2			24.7			25.2			25.7			26.2			(2	)		(8	)
Prime mortgage		17.0			17.6			18.2			18.8			19.5			(3	)		(13	)
Subprime mortgage		5.3			5.4			5.6			5.8			5.9			(2	)		(10	)
Option ARMs		25.1			25.9			26.7			27.7			28.6			(3	)		(12	)

Total average loans owned		71.6			73.6			75.7			78.0			80.2			(3	)		(11	)
TOTAL REAL ESTATE PORTFOLIOS
End-of-period loans owned:
Home equity		109.3			112.9			116.7			120.3			123.7			(3	)		(12	)
Prime mortgage, including option ARMs		90.0			92.7			95.6			98.9			102.9			(3	)		(13	)
Subprime mortgage		16.1			16.7			17.5			18.2			19.0			(4	)		(15	)
Other		0.8			0.8			0.9			1.0			1.0			—			(20	)

Total end-of-period loans owned		216.2			223.1			230.7			238.4			246.6			(3	)		(12	)
Average loans owned:
Home equity		111.1			114.9			118.5			122.0			125.7			(3	)		(12	)
Prime mortgage, including option ARMs		91.4			94.2			97.1			100.8			104.7			(3	)		(13	)
Subprime mortgage		16.4			17.2			17.9			18.9			19.7			(5	)		(17	)
Other		0.8			0.9			1.0			1.0			1.1			(11	)		(27	)

Total average loans owned		219.7			227.2			234.5			242.7			251.2			(3	)		(13	)
Average assets		207.2			215.3			222.5			230.3			240.2			(4	)		(14	)
Home equity origination volume		0.2			0.3			0.3			0.3			0.3			(33	)		(33	)


(a)		PCI loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due.

Page 18



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
REAL ESTATE PORTFOLIOS (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding PCI loans (a)(b)
Home equity	$	720		$	792		$	730		$	796		$	1,126			(9	)%		(36	)%
Prime mortgage, including option ARMs		161			558			266			273			476			(71	)		(66	)
Subprime mortgage		186			429			206			282			457			(57	)		(59	)
Other		9			10			12			21			16			(10	)		(44	)

Total net charge-offs		1,076			1,789			1,214			1,372			2,075			(40	)		(48	)
Net charge-off rate excluding PCI loans (a)(b)
Home equity		3.36	%		3.48	%		3.10	%		3.32	%		4.59	%
Prime mortgage, including option ARMs		1.32			4.37			2.02			2.02			3.41
Subprime mortgage		6.80			14.42			6.64			8.63			13.43
Other		4.56			4.41			4.76			8.42			5.90
Total net charge-off rate excluding PCI loans		2.95			4.62			3.03			3.34			4.92
Net charge-off rate — reported
Home equity		2.63			2.73			2.44			2.62			3.63
Prime mortgage, including option ARMs		0.71			2.35			1.09			1.09			1.84
Subprime mortgage		4.60			9.90			4.57			5.98			9.41
Other		4.56			4.41			4.76			8.42			5.90
Total net charge-off rate — reported		1.99			3.12			2.05			2.27			3.35

30+ day delinquency rate excluding PCI loans (c)		6.22			6.45			6.77			6.88			7.28
Allowance for loan losses	$	14,659		$	14,659		$	14,111		$	14,127		$	14,127			—			4
Nonperforming assets (d)(e)		8,152			8,424			9,456			9,974			10,313			(3	)		(21	)
Allowance for loan losses to ending loans retained		6.78	%		6.57	%		6.12	%		5.93	%		5.73	%
Allowance for loan losses to ending loans retained excluding PCI loans (a)		6.68			6.47			7.25			7.01			6.76


(a)		Excludes the impact of PCI loans that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the acquisition date, which incorporated management’s estimate, as of that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $4.9 billion, $4.9 billion, $2.8 billion, $2.8 billion and $2.8 billion was recorded for these loans at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, which has also been excluded from the applicable ratios. To date, no charge-offs have been recorded for these loans.

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

(c)		The delinquency rate for PCI loans was 27.36%, 28.20%, 28.07%, 27.91% and 28.49% at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

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

(e)		During the third quarter of 2010, $147 million of nonperforming assets pertaining to the second quarter of 2010 were reclassified from Real Estate Portfolios to Mortgage Banking, Auto & Other Consumer Lending.

Page 19



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
INCOME STATEMENT (a)
REVENUE
Credit card income	$	898		$	928		$	864		$	908		$	813			(3	)%		10	%
All other income (b)		(116	)		(76	)		(58	)		(47	)		(55	)		(53	)		(111	)

Noninterest revenue		782			852			806			861			758			(8	)		3
Net interest income		3,200			3,394			3,447			3,356			3,689			(6	)		(13	)

TOTAL NET REVENUE		3,982			4,246			4,253			4,217			4,447			(6	)		(10	)

Provision for credit losses		226			671			1,633			2,221			3,512			(66	)		(94	)

NONINTEREST EXPENSE
Compensation expense		364			318			316			327			330			14			10
Noncompensation expense		1,085			1,082			1,023			986			949			—			14
Amortization of intangibles		106			114			106			123			123			(7	)		(14	)

TOTAL NONINTEREST EXPENSE		1,555			1,514			1,445			1,436			1,402			3			11


Income/(loss) before income tax expense/(benefit)		2,201			2,061			1,175			560			(467	)		7			NM
Income tax expense/(benefit)		858			762			440			217			(164	)		13			NM

NET INCOME/(LOSS)	$	1,343		$	1,299		$	735		$	343		$	(303	)		3			NM


FINANCIAL RATIOS (a)
ROE		42	%		34	%		19	%		9	%		(8	)%
Overhead ratio		39			36			34			34			32
Percentage of average loans:
Net interest income		9.79			9.93			9.76			9.20			9.60
Provision for credit losses		0.69			1.96			4.63			6.09			9.14
Noninterest revenue		2.39			2.49			2.28			2.36			1.97
Risk adjusted margin (c)		11.49			10.46			7.42			5.47			2.43
Noninterest expense		4.76			4.43			4.09			3.94			3.65
Pretax income/(loss) (ROO)		6.73			6.03			3.33			1.54			(1.22	)
Net income/(loss)		4.11			3.80			2.08			0.94			(0.79	)

BUSINESS METRICS, EXCLUDING COMMERCIAL CARD
Sales volume (in billions)	$	77.5		$	85.9		$	79.6		$	78.1		$	69.4			(10	)		12
New accounts opened		2.6			3.4			2.7			2.7			2.5			(24	)		4
Open accounts		91.9			90.7			89.0			88.9			88.9			1			3

Merchant acquiring business
Bank card volume (in billions)	$	125.7		$	127.2		$	117.0		$	117.1		$	108.0			(1	)		16
Total transactions (in billions)		5.6			5.6			5.2			5.0			4.7			—			19


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

(b)		Includes the impact of revenue sharing agreements with other JPMorgan Chase business segments.

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

Page 20


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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
SELECTED BALANCE SHEET DATA (period-end) (a)
Loans (b)	$	128,803		$	137,676		$	136,436		$	142,994		$	149,260			(6	)%		(14	)%
Equity		13,000			15,000			15,000			15,000			15,000			(13	)		(13	)

SELECTED BALANCE SHEET DATA (average) (a)
Total assets		138,113			138,443			141,029			146,816			156,968			—			(12	)
Loans (c)		132,537			135,585			140,059			146,302			155,790			(2	)		(15	)
Equity		13,000			15,000			15,000			15,000			15,000			(13	)		(13	)

Headcount (d)		21,774			20,739			21,398			21,529			22,478			5			(3	)

CREDIT QUALITY STATISTICS (a)
Net charge-offs	$	2,226		$	2,671		$	3,133		$	3,721		$	4,512			(17	)		(51	)
Net charge-off rate (c)(e)		6.97	%		7.85	%		8.87	%		10.20	%		11.75	%

Delinquency rates (b)
30+ day		3.57			4.14			4.57			4.96			5.62
90+ day		1.93			2.25			2.41			2.76			3.15

Allowance for loan losses	$	9,041		$	11,034		$	13,029		$	14,524		$	16,032			(18	)		(44	)
Allowance for loan losses to period-end loans (b)		7.24	%		8.14	%		9.55	%		10.16	%		10.74	%

SUPPLEMENTAL INFORMATION (a)(f)

Chase, excluding Washington Mutual portfolio
Loans (period-end)	$	116,395		$	123,943		$	121,932		$	127,379		$	132,056			(6	)		(12	)
Average loans		119,411			121,493			124,933			129,847			137,183			(2	)		(13	)
Net interest income (g)		9.09	%		9.16	%		8.98	%		8.47	%		8.86	%
Risk adjusted margin (g)(h)		10.28			10.26			6.76			4.21			2.43
Net charge-off rate		6.13			7.08			8.06			9.02			10.54
30+ day delinquency rate		3.22			3.66			4.13			4.48			4.99
90+ day delinquency rate		1.71			1.98			2.16			2.47			2.74

Chase, excluding Washington Mutual and Commercial Card portfolios
Loans (period-end)	$	115,016		$	123,943		$	121,932		$	127,379		$	132,056			(7	)		(13	)
Average loans		118,145			121,493			124,933			129,847			137,183			(3	)		(14	)
Net interest income (g)		9.25	%		9.16	%		8.98	%		8.47	%		8.86	%
Risk adjusted margin (g)(h)		10.21			10.26			6.76			4.21			2.43
Net charge-off rate		6.20			7.08			8.06			9.02			10.54
30+ day delinquency rate		3.25			3.66			4.13			4.48			4.99
90+ day delinquency rate		1.73			1.98			2.16			2.47			2.74


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

(b)		Total period-end loans include loans held-for-sale of $4.0 billion and $2.2 billion at March 31, 2011 and December 31, 2010, respectively. No allowance for loan losses was recorded for these loans. The held-for-sale loans are excluded when calculating the allowance for loan losses to period-end loans and delinquency rates. The 30+ day delinquency rate including loans held-for-sale, which is a non-GAAP financial measure, was 3.55% and 4.07% at March 31, 2011 and December 31, 2010, respectively. The 90+ day delinquency rate including loans held-for-sale, which is a non-GAAP financial measure, was 1.92% and 2.22% at March 31, 2011 and December 31, 2010, respectively.

(c)		Total average loans include loans held-for-sale of $3.0 billion and $586 million for the quarters ended March 31, 2011 and December 31, 2010, respectively. These amounts are excluded when calculating the net charge-off rate. The net charge-off rate including loans held-for-sale, which is a non-GAAP financial measure, was 6.81% and 7.82% for the quarters ended March 31, 2011 and December 31, 2010, respectively.

(d)		The first quarter of 2011 headcount includes 1,274 employees related to the transfer of the commercial card business from TSS to CS.

(e)		Results for the quarter ended March 31, 2010 reflect the impact of fair value accounting adjustments related to the consolidation of the Washington Mutual Master Trust (“WMMT”) in the second quarter of 2009.

(f)		Supplemental information is provided for Chase, excluding Washington Mutual and Commercial Card portfolios and including loans held for sale, to provide more meaningful measures that enable comparability with prior periods.

(g)		As a percentage of average loans.

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

Page 21

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	264		$	273		$	269		$	280		$	277			(3	)%		(5	)%
Asset management, administration and commissions		35			35			36			36			37			—			(5	)
All other income (a)		203			299			242			230			186			(32	)		9

Noninterest revenue		502			607			547			546			500			(17	)		—
Net interest income		1,014			1,004			980			940			916			1			11

TOTAL NET REVENUE (b)		1,516			1,611			1,527			1,486			1,416			(6	)		7

Provision for credit losses		47			152			166			(235	)		214			(69	)		(78	)

NONINTEREST EXPENSE
Compensation expense		223			208			210			196			206			7			8
Noncompensation expense		332			342			341			337			324			(3	)		2
Amortization of intangibles		8			8			9			9			9			—			(11	)

TOTAL NONINTEREST EXPENSE		563			558			560			542			539			1			4


Income before income tax expense		906			901			801			1,179			663			1			37
Income tax expense		360			371			330			486			273			(3	)		32

NET INCOME	$	546		$	530		$	471		$	693		$	390			3			40

Revenue by product:
Lending (c)	$	837		$	749		$	693		$	649		$	658			12			27
Treasury services (c)		542			659			670			665			638			(18	)		(15	)
Investment banking		110			126			120			115			105			(13	)		5
Other		27			77			44			57			15			(65	)		80

Total Commercial Banking revenue	$	1,516		$	1,611		$	1,527		$	1,486		$	1,416			(6	)		7


IB revenue, gross (d)	$	309		$	347		$	344		$	333		$	311			(11	)		(1	)

Revenue by client segment:
Middle Market Banking	$	755		$	781		$	766		$	767		$	746			(3	)		1
Commercial Term Lending		286			301			256			237			229			(5	)		25
Corporate Client Banking (e)		290			302			304			285			263			(4	)		10
Real Estate Banking		88			117			118			125			100			(25	)		(12	)
Other		97			110			83			72			78			(12	)		24

Total Commercial Banking revenue	$	1,516		$	1,611		$	1,527		$	1,486		$	1,416			(6	)		7


FINANCIAL RATIOS
ROE		28	%		26	%		23	%		35	%		20	%
Overhead ratio		37			35			37			36			38


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

(b)		Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities as well as tax-exempt income from municipal bond activity of $65 million, $85 million, $59 million, $49 million and $45 million for quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, and March 31, 2010, respectively.

(c)		Effective January 1, 2011, product revenue from commercial card and standby letters of credit transactions is included in lending. For the period ending March 31, 2011, the impact of the change was $107 million. In prior-year quarters, it was reported in treasury services.

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

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

Page 22

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
SELECTED BALANCE SHEET DATA (period-end)
Loans:
Loans retained	$	99,334		$	97,900		$	97,738		$	95,090		$	95,435			1	%		4	%
Loans held-for-sale and loans at fair value		835			1,018			399			446			294			(18	)		184

Total loans		100,169			98,918			98,137			95,536			95,729			1			5

Equity		8,000			8,000			8,000			8,000			8,000			—			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	140,400		$	138,041		$	130,237		$	133,309		$	133,013			2			6
Loans:
Loans retained		98,829			97,823			96,657			95,521			96,317			1			3
Loans held-for-sale and loans at fair value		756			612			384			391			297			24			155

Total loans		99,585			98,435			97,041			95,912			96,614			1			3
Liability balances		156,200			147,534			137,853			136,770			133,142			6			17
Equity		8,000			8,000			8,000			8,000			8,000			—			—

Average loans by client segment:
Middle Market Banking	$	38,207		$	36,561		$	35,299		$	34,424		$	33,919			5			13
Commercial Term Lending		37,810			38,358			37,509			35,956			36,057			(1	)		5
Corporate Client Banking (a)		12,374			11,771			11,807			11,875			12,258			5			1
Real Estate Banking		7,607			8,169			8,983			9,814			10,438			(7	)		(27	)
Other		3,587			3,576			3,443			3,843			3,942			—			(9	)

Total Commercial Banking loans	$	99,585		$	98,435		$	97,041		$	95,912		$	96,614			1			3


Headcount		4,941			4,881			4,805			4,808			4,701			1			5

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	31		$	286		$	218		$	176		$	229			(89	)		(86	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (b)		1,925			1,964			2,898			3,036			2,947			(2	)		(35	)
Nonaccrual loans held-for-sale and loans at fair value		30			36			48			41			49			(17	)		(39	)

Total nonaccrual loans		1,955			2,000			2,946			3,077			2,996			(2	)		(35	)
Assets acquired in loan satisfactions		179			197			281			208			190			(9	)		(6	)

Total nonperforming assets		2,134			2,197			3,227			3,285			3,186			(3	)		(33	)
Allowance for credit losses:
Allowance for loan losses		2,577			2,552			2,661			2,686			3,007			1			(14	)
Allowance for lending-related commitments		206			209			241			267			359			(1	)		(43	)

Total allowance for credit losses		2,783			2,761			2,902			2,953			3,366			1			(17	)

Net charge-off rate		0.13	%		1.16	%		0.89	%		0.74	%		0.96	%
Allowance for loan losses to period-end loans retained		2.59			2.61			2.72			2.82			3.15
Allowance for loan losses to nonaccrual loans retained		134			130			92			88			102
Nonaccrual loans to total period-end loans		1.95			2.02			3.00			3.22			3.13


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

(b)		Allowance for loan losses of $360 million, $340 million, $535 million, $586 million and $612 million were held against nonaccrual loans retained at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

Page 23

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	303		$	314		$	318		$	313		$	311			(4	)%		(3	)%
Asset management, administration and commissions		695			689			644			705			659			1			5
All other income		139			209			210			209			176			(33	)		(21	)

Noninterest revenue		1,137			1,212			1,172			1,227			1,146			(6	)		(1	)
Net interest income		703			701			659			654			610			—			15

TOTAL NET REVENUE		1,840			1,913			1,831			1,881			1,756			(4	)		5

Provision for credit losses		4			10			(2	)		(16	)		(39	)		(60	)	NM
Credit allocation income/(expense) (a)		27			(30	)		(31	)		(30	)		(30	)	NM			NM

NONINTEREST EXPENSE
Compensation expense		715			679			701			697			657			5			9
Noncompensation expense		647			763			693			684			650			(15	)		—
Amortization of intangibles		15			28			16			18			18			(46	)		(17	)

TOTAL NONINTEREST EXPENSE		1,377			1,470			1,410			1,399			1,325			(6	)		4


Income before income tax expense		486			403			392			468			440			21			10
Income tax expense		170			146			141			176			161			16			6

NET INCOME	$	316		$	257		$	251		$	292		$	279			23			13


REVENUE BY BUSINESS
Treasury Services	$	891		$	953		$	937		$	926		$	882			(7	)		1
Worldwide Securities Services		949			960			894			955			874			(1	)		9

TOTAL NET REVENUE	$	1,840		$	1,913		$	1,831		$	1,881		$	1,756			(4	)		5


REVENUE BY GEOGRAPHIC REGION (b)
Asia/Pacific	$	276		$	270		$	256		$	233		$	219			2			26
Latin America/Caribbean		76			91			50			71			45			(16	)		69
Europe/Middle East/Africa		630			624			579			617			569			1			11
North America		858			928			946			960			923			(8	)		(7	)

TOTAL NET REVENUE	$	1,840		$	1,913		$	1,831		$	1,881		$	1,756			(4	)		5


TRADE FINANCE LOANS BY GEOGRAPHIC REGION (period-end) (b)
Asia/Pacific	$	14,607		$	11,834		$	10,238		$	9,802		$	7,679			23			90
Latin America/Caribbean		4,014			3,628			3,357			3,008			2,881			11			39
Europe/Middle East/Africa		5,794			4,874			3,391			2,898			2,163			19			168
North America		1,084			820			820			693			996			32			9

TOTAL TRADE FINANCE LOANS	$	25,499		$	21,156		$	17,806		$	16,401		$	13,719			21			86


FINANCIAL RATIOS
ROE		18	%		16	%		15	%		18	%		17	%
Overhead ratio		75			77			77			74			75
Pretax margin ratio		26			21			21			25			25

SELECTED BALANCE SHEET DATA (period-end)
Loans (c)	$	31,020		$	27,168		$	26,899		$	24,513		$	24,066			14			29
Equity		7,000			6,500			6,500			6,500			6,500			8			8

SELECTED BALANCE SHEET DATA (average)
Total assets	$	47,873		$	46,301		$	42,445		$	42,868		$	38,273			3			25
Loans (c)		29,290			26,941			24,337			22,137			19,578			9			50
Liability balances		265,720			256,661			242,517			246,690			247,905			4			7
Equity		7,000			6,500			6,500			6,500			6,500			8			8

Headcount		28,040			29,073			28,544			27,943			27,223			(4	)		3


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

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

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

Page 24

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

TSS firmwide metrics include revenue recorded in the CB, Retail Banking and Asset Management (“AM”) lines of business and excludes FX revenue recorded in IB for TSS-related FX activity. In order to capture the firmwide impact of Treasury Services (“TS”) and TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
TSS FIRMWIDE DISCLOSURES
TS revenue — reported	$	891		$	953		$	937		$	926		$	882			(7	)%		1	%
TS revenue reported in CB (a)		542			659			670			665			638			(18	)		(15	)
TS revenue reported in other lines of business		63			65			64			62			56			(3	)		13

TS firmwide revenue (b)		1,496			1,677			1,671			1,653			1,576			(11	)		(5	)
Worldwide Securities Services revenue		949			960			894			955			874			(1	)		9

TSS firmwide revenue (b)	$	2,445		$	2,637		$	2,565		$	2,608		$	2,450			(7	)		—

TS firmwide liability balances (average) (c)	$	339,240		$	320,745		$	302,921		$	303,224		$	305,105			6			11
TSS firmwide liability balances (average) (c)		421,920			404,195			380,370			383,460			381,047			4			11

TSS FIRMWIDE FINANCIAL RATIOS
TS firmwide overhead ratio (a)(d)		56	%		54	%		55	%		54	%		55	%
TSS firmwide overhead ratio (a)(d)		67			66			65			64			65

FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)	$	16,619		$	16,120		$	15,863		$	14,857		$	15,283			3			9
Number of:
U.S.$ ACH transactions originated		992			995			978			970			949			—			5
Total U.S.$ clearing volume (in thousands)		30,971			32,144			30,779			30,531			28,669			(4	)		8
International electronic funds transfer volume (in thousands) (e)		60,942			60,882			57,333			58,484			55,754			—			9
Wholesale check volume		532			525			531			526			478			1			11
Wholesale cards issued (in thousands) (f)		23,170			29,785			28,404			28,066			27,352			(22	)		(15	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	—		$	—		$	1		$	—		$	—			—			—
Nonaccrual loans		11			12			14			14			14			(8	)		(21	)
Allowance for credit losses:
Allowance for loan losses		69			65			54			48			57			6			21
Allowance for lending-related commitments		48			51			52			68			76			(6	)		(37	)

Total allowance for credit losses		117			116			106			116			133			1			(12	)

Net charge-offs rate		—	%		—	%		0.02	%		—	%		—	%
Allowance for loan losses to period-end loans		0.22			0.24			0.20			0.20			0.24
Allowance for loan losses to nonaccrual loans	NM			NM				386			343			407
Nonaccrual loans to period-end loans		0.04			0.04			0.05			0.06			0.06


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

(b)		TSS firmwide revenue includes foreign exchange (“FX”) revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of IB. However, some of the FX revenue associated with TSS customers who are FX customers of IB is not included in TS and TSS firmwide revenue. The total FX revenue generated was $160 million, $181 million, $143 million, $175 million, and $137 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

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

(d)		Overhead ratios have been calculated based on firmwide revenue and TSS and TS expense, respectively, including those allocated to certain other lines of business. FX revenue and expense recorded in IB for TSS-related FX activity are not included in this ratio.

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

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

Page 25

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,707		$	1,846		$	1,498		$	1,522		$	1,508			(8	)%		13	%
All other income		313			386			282			177			266			(19	)		18

Noninterest revenue		2,020			2,232			1,780			1,699			1,774			(9	)		14
Net interest income		386			381			392			369			357			1			8

TOTAL NET REVENUE		2,406			2,613			2,172			2,068			2,131			(8	)		13

Provision for credit losses		5			23			23			5			35			(78	)		(86	)

NONINTEREST EXPENSE
Compensation expense		1,039			1,078			914			861			910			(4	)		14
Noncompensation expense		599			679			557			527			514			(12	)		17
Amortization of intangibles		22			20			17			17			18			10			22

TOTAL NONINTEREST EXPENSE		1,660			1,777			1,488			1,405			1,442			(7	)		15


Income before income tax expense		741			813			661			658			654			(9	)		13
Income tax expense		275			306			241			267			262			(10	)		5

NET INCOME	$	466		$	507		$	420		$	391		$	392			(8	)		19


REVENUE BY CLIENT SEGMENT
Private Banking (a)	$	1,317		$	1,376		$	1,181		$	1,153		$	1,150			(4	)		15
Institutional		549			675			506			455			544			(19	)		1
Retail		540			562			485			460			437			(4	)		24

TOTAL NET REVENUE	$	2,406		$	2,613		$	2,172		$	2,068		$	2,131			(8	)		13


FINANCIAL RATIOS
ROE		29	%		31	%		26	%		24	%		24	%
Overhead ratio		69			68			69			68			68
Pretax margin ratio		31			31			30			32			31

SELECTED BALANCE SHEET DATA (period-end)
Loans	$	46,454		$	44,084		$	41,408		$	38,744		$	37,088			5			25
Equity		6,500			6,500			6,500			6,500			6,500			—			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	68,918		$	69,290		$	64,911		$	63,426		$	62,525			(1	)		10
Loans		44,948			42,296			39,417			37,407			36,602			6			23
Deposits		95,250			89,314			87,841			86,453			80,662			7			18
Equity		6,500			6,500			6,500			6,500			6,500			—			—

Headcount		17,203			16,918			16,510			16,019			15,321			2			12


(a)		Private Banking is a combination of the previously disclosed client segments: Private Bank, Private Wealth Management and JPMorgan Securities.

Page 26

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
BUSINESS METRICS
Number of:
Client advisors (a)		2,288			2,281			2,244			2,083			1,998			—	%		15	%
Retirement planning services participants (in thousands)		1,604			1,580			1,665			1,653			1,651			2			(3	)
JPMorgan Securities brokers (a)		431			415			419			403			391			4			10
% of customer assets in 4 & 5 Star Funds (b)		46	%		49	%		42	%		43	%		43	%		(6	)		7
% of AUM in 1^stand 2^nd quartiles: (c)
1 year		57	%		67	%		67	%		58	%		55	%		(15	)		4
3 years		70	%		72	%		65	%		67	%		67	%		(3	)		4
5 years		77	%		80	%		74	%		78	%		77	%		(4	)		—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	11		$	8		$	13		$	27		$	28			38			(61	)
Nonaccrual loans		254			375			294			309			475			(32	)		(47	)
Allowance for credit losses:
Allowance for loan losses		257			267			257			250			261			(4	)		(2	)
Allowance for lending-related commitments		4			4			3			3			13			—			(69	)

Total allowance for credit losses		261			271			260			253			274			(4	)		(5	)
Net charge-off rate		0.10	%		0.08	%		0.13	%		0.29	%		0.31	%
Allowance for loan losses to period-end loans		0.55			0.61			0.62			0.65			0.70
Allowance for loan losses to nonaccrual loans		101			71			87			81			55
Nonaccrual loans to period-end loans		0.55			0.85			0.71			0.80			1.28


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

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

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

Page 27

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


											March 31, 2011
											Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
ASSETS UNDER SUPERVISION (a)	2011		2010		2010		2010		2010		2010			2010
Assets by asset class
Liquidity	$	490	$	497	$	521	$	489	$	521		(1	)%		(6	)%
Fixed income		305		289		277		259		246		6			24
Equities and multi-asset		421		404		362		322		355		4			19
Alternatives		114		108		97		91		97		6			18

TOTAL ASSETS UNDER MANAGEMENT		1,330		1,298		1,257		1,161		1,219		2			9
Custody/brokerage/administration/deposits		578		542		513		479		488		7			18

TOTAL ASSETS UNDER SUPERVISION	$	1,908	$	1,840	$	1,770	$	1,640	$	1,707		4			12


Assets by client segment
Private Banking (b)	$	293	$	284	$	276	$	258	$	268		3			9
Institutional		696		686		677		634		669		1			4
Retail		341		328		304		269		282		4			21

TOTAL ASSETS UNDER MANAGEMENT	$	1,330	$	1,298	$	1,257	$	1,161	$	1,219		2			9


Private Banking (b)	$	773	$	731	$	698	$	653	$	666		6			16
Institutional		697		687		678		636		670		1			4
Retail		438		422		394		351		371		4			18

TOTAL ASSETS UNDER SUPERVISION	$	1,908	$	1,840	$	1,770	$	1,640	$	1,707		4			12


Mutual fund assets by asset class
Liquidity	$	436	$	446	$	466	$	440	$	470		(2	)		(7	)
Fixed income		99		92		88		79		76		8			30
Equities and multi-asset		173		169		151		133		150		2			15
Alternatives		8		7		7		8		9		14			(11	)

TOTAL MUTUAL FUND ASSETS	$	716	$	714	$	712	$	660	$	705		—			2


(a)		Excludes assets under management of American Century Companies, Inc. in which the Firm had a 40% ownership in the first quarter of 2011, 41% in the fourth and third quarters of 2010, and 42% in all other prior periods presented.

(b)		Private Banking is a combination of the previously disclosed client segments: Private Bank, Private Wealth Management and JPMorgan Securities.

Page 28

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


	1Q11			4Q10			3Q10			2Q10			1Q10
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,298		$	1,257		$	1,161		$	1,219		$	1,249
Net asset flows:
Liquidity		(9	)		(25	)		27			(29	)		(62	)
Fixed income		16			10			12			12			16
Equities, multi-asset and alternatives		11			13			(1	)		1			6
Market/performance/other impacts		14			43			58			(42	)		10

Ending balance	$	1,330		$	1,298		$	1,257		$	1,161		$	1,219


Assets under supervision rollforward
Beginning balance	$	1,840		$	1,770		$	1,640		$	1,707		$	1,701
Net asset flows		31			1			41			(4	)		(10	)
Market/performance/other impacts		37			69			89			(63	)		16

Ending balance	$	1,908		$	1,840		$	1,770		$	1,640		$	1,707

Page 29

JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED


	QUARTERLY TRENDS
											1Q11 Change
INTERNATIONAL METRICS	1Q11		4Q10		3Q10		2Q10		1Q10		4Q10			1Q10
Total net revenue: (in millions) (a)
Asia/Pacific	$	246	$	263	$	226	$	214	$	222		(6	)%		11	%
Latin America/Caribbean		165		168		125		124		124		(2	)		33
Europe/Middle East/Africa		439		481		395		381		385		(9	)		14
North America		1,556		1,701		1,426		1,349		1,400		(9	)		11

Total net revenue	$	2,406	$	2,613	$	2,172	$	2,068	$	2,131		(8	)		13

Assets under management: (in billions)
Asia/Pacific	$	115	$	111	$	107	$	95	$	102		4			13
Latin America/Caribbean		35		35		27		24		26		—			35
Europe/Middle East/Africa		300		282		258		239		265		6			13
North America		880		870		865		803		826		1			7

Total assets under management	$	1,330	$	1,298	$	1,257	$	1,161	$	1,219		2			9

Assets under supervision: (in billions)
Asia/Pacific	$	155	$	147	$	139	$	127	$	131		5			18
Latin America/Caribbean		88		84		74		68		66		5			33
Europe/Middle East/Africa		353		331		307		282		310		7			14
North America		1,312		1,278		1,250		1,163		1,200		3			9

Total assets under supervision	$	1,908	$	1,840	$	1,770	$	1,640	$	1,707		4			12


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

Page 30

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
INCOME STATEMENT
REVENUE
Principal transactions	$	1,298		$	587		$	1,143		$	(69	)	$	547			121	%		137	%
Securities gains		102			1,199			99			990			610			(91	)		(83	)
All other income		78			(24	)		(29	)		182			124		NM				(37	)

Noninterest revenue		1,478			1,762			1,213			1,103			1,281			(16	)		15
Net interest income		34			(131	)		371			747			1,076		NM				(97	)

TOTAL NET REVENUE (a)		1,512			1,631			1,584			1,850			2,357			(7	)		(36	)

Provision for credit losses		(10	)		2			(3	)		(2	)		17		NM			NM

NONINTEREST EXPENSE
Compensation expense		657			538			574			770			475			22			38
Noncompensation expense (b)		1,143			2,352			1,927			1,468			3,041			(51	)		(62	)

Subtotal		1,800			2,890			2,501			2,238			3,516			(38	)		(49	)
Net expense allocated to other businesses		(1,238	)		(1,191	)		(1,227	)		(1,192	)		(1,180	)		(4	)		(5	)

TOTAL NONINTEREST EXPENSE		562			1,699			1,274			1,046			2,336			(67	)		(76	)


Income/(loss) before income tax expense/(benefit)		960			(70	)		313			806			4		NM			NM
Income tax expense/(benefit) (c)		238			(99	)		(35	)		153			(224	)	NM			NM

NET INCOME	$	722		$	29		$	348		$	653		$	228		NM				217


MEMO:
TOTAL NET REVENUE
Private equity	$	699		$	355		$	721		$	48		$	115			97		NM
Corporate		813			1,276			863			1,802			2,242			(36	)		(64	)

TOTAL NET REVENUE	$	1,512		$	1,631		$	1,584		$	1,850		$	2,357			(7	)		(36	)


NET INCOME/(LOSS)
Private equity	$	383		$	178		$	344		$	11		$	55			115		NM
Corporate		339			(149	)		4			642			173		NM				96

TOTAL NET INCOME	$	722		$	29		$	348		$	653		$	228		NM				217


Headcount		20,927			20,030			19,756			19,482			19,307			4			8


(a)		Total net revenue included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $64 million, $63 million, $58 million, $57 million and $48 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

(b)		Includes litigation expense of $0.4 billion, $1.5 billion, $1.3 billion, $0.7 billion and $2.3 billion for the quarters ending March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

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

Page 31

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


	QUARTERLY TRENDS
														1Q11 Change
	1Q11		4Q10			3Q10		2Q10			1Q10			4Q10			1Q10
SUPPLEMENTAL INFORMATION

TREASURY and CHIEF INVESTMENT OFFICE (“CIO”)
Securities gains (a)	$	102	$	1,199		$	99	$	989		$	610			(91	)%		(83	)%
Investment securities portfolio (average)		313,319		322,218			321,428		320,578			330,584			(3	)		(5	)
Investment securities portfolio (ending)		328,013		310,801			334,140		305,288			337,442			6			(3	)
Mortgage loans (average)		11,418		10,117			9,174		8,539			8,162			13			40
Mortgage loans (ending)		12,171		10,739			9,550		8,900			8,368			13			45

PRIVATE EQUITY
Private equity gains/(losses)
Direct investments
Realized gains	$	171	$	1,039		$	179	$	78		$	113			(84	)		51
Unrealized gains/(losses) (b)		370		(781	)		561		(7	)		(75	)	NM			NM

Total direct investments		541		258			740		71			38			110		NM
Third-party fund investments		186		129			10		4			98			44			90

Total private equity gains/(losses) (c)	$	727	$	387		$	750	$	75		$	136			88			435


Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	731	$	875		$	1,152	$	873		$	890			(16	)		(18	)
Cost		649		732			985		901			793			(11	)		(18	)
Quoted public value		785		935			1,249		974			982			(16	)		(20	)
Privately-held direct securities
Carrying value		7,212		5,882			6,388		5,464			4,782			23			51
Cost		7,731		6,887			6,646		6,507			5,795			12			33
Third-party fund investments (d)
Carrying value		2,179		1,980			1,814		1,782			1,603			10			36
Cost		2,461		2,404			2,356		2,315			2,134			2			15

Total private equity portfolio
Carrying value	$	10,122	$	8,737		$	9,354	$	8,119		$	7,275			16			39

Cost	$	10,841	$	10,023		$	9,987	$	9,723		$	8,722			8			24


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

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

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

(d)		Unfunded commitments to third-party private equity funds were $0.9 billion, $1.0 billion, $1.1 billion, $1.2 billion and $1.4 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

Page 32


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


											March 31, 2011
											Change
	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31			Mar 31
	2011		2010		2010		2010		2010		2010			2010
CREDIT EXPOSURE
WHOLESALE
Loans retained	$	229,648	$	222,510	$	217,582	$	212,987	$	210,211		3	%		9	%
Loans held-for-sale and loans at fair value		6,359		5,123		3,015		3,839		4,079		24			56

TOTAL WHOLESALE LOANS (a)(b)		236,007		227,633		220,597		216,826		214,290		4			10
Consumer, excluding credit card
Loans, excluding PCI loans and held-for sale loans
Home equity		85,253		88,385		91,728		94,761		97,642		(4	)		(13	)
Prime mortgage, including option ARMs		74,682		74,539		74,205		75,023		76,854		—			(3	)
Subprime mortgage		10,841		11,287		12,009		12,597		13,219		(4	)		(18	)
Auto		47,411		48,367		48,186		47,548		47,381		(2	)		—
Business banking		16,957		16,812		16,568		16,604		16,799		1			1
Student and other		15,089		15,311		15,583		15,795		16,152		(1	)		(7	)

Total loans, excluding PCI loans and loans held-for-sale		250,233		254,701		258,279		262,328		268,047		(2	)		(7	)
Loans — PCI: (c)
Home equity		23,973		24,459		24,982		25,471		26,012		(2	)		(8	)
Prime mortgage		16,725		17,322		17,904		18,512		19,203		(3	)		(13	)
Subprime mortgage		5,276		5,398		5,496		5,662		5,848		(2	)		(10	)
Option ARMs		24,791		25,584		26,370		27,256		28,260		(3	)		(12	)

Total loans — PCI		70,765		72,763		74,752		76,901		79,323		(3	)		(11	)
Total loans — retained		320,998		327,464		333,031		339,229		347,370		(2	)		(8	)
Loans held-for-sale (d)		188		154		467		434		2,879		22			(93	)

Total consumer, excluding credit card loans		321,186		327,618		333,498		339,663		350,249		(2	)		(8	)


Credit card
Loans retained		124,791		135,524		136,436		142,994		149,260		(8	)		(16	)
Loans held-for-sale		4,012		2,152		—		—		—		86		NM

Total credit card (b)		128,803		137,676		136,436		142,994		149,260		(6	)		(14	)

Total consumer loans (e)		449,989		465,294		469,934		482,657		499,509		(3	)		(10	)

Total loans		685,996		692,927		690,531		699,483		713,799		(1	)		(4	)

Derivative receivables		78,744		80,481		97,293		80,215		79,416		(2	)		(1	)
Receivables from customers (f)		38,053		32,541		25,274		22,966		16,314		17			133
Interests in purchased receivables		177		391		751		1,836		2,579		(55	)		(93	)

TOTAL CREDIT-RELATED ASSETS		116,974		113,413		123,318		105,017		98,309		3			19
Wholesale lending-related commitments		355,561		346,079		338,612		324,552		326,921		3			9

TOTAL	$	1,158,531	$	1,152,419	$	1,152,461	$	1,129,052	$	1,139,029		1			2

Memo: Total by category
Total wholesale exposure (g)	$	708,542	$	687,125	$	682,527	$	646,395	$	639,520		3			11
Total consumer loans (h)		449,989		465,294		469,934		482,657		499,509		(3	)		(10	)

Total	$	1,158,531	$	1,152,419	$	1,152,461	$	1,129,052	$	1,139,029		1			2


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

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

(c)		PCI loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the underlying loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due.

(d)		Included prime mortgages of $188 million, $154 million, $428 million, $185 million and $558 million at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and student loans of zero, zero, $39 million, $249 million and $2.3 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

(e)		Includes RFS, CS and Corporate/Private Equity.

(f)		Represents primarily margin loans to prime and retail brokerage customers, which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.

(g)		Primarily represents total wholesale loans, derivative receivables, wholesale lending-related commitments and receivables from customers.

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

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


																March 31, 2011
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2011			2010			2010			2010			2010			2010			2010
NONPERFORMING ASSETS AND RATIOS
WHOLESALE
Loans retained	$	4,578		$	5,510		$	5,231		$	5,285		$	5,895			(17	)%		(22	)%
Loans held-for-sale and loans at fair value		289			496			409			375			331			(42	)		(13	)

TOTAL WHOLESALE LOANS		4,867			6,006			5,640			5,660			6,226			(19	)		(22	)


CONSUMER, EXCLUDING CREDIT CARD
Home equity		1,263			1,263			1,251			1,211			1,427			—			(11	)
Prime mortgage, including option ARMs		4,166			4,320			4,857			5,062			4,927			(4	)		(15	)
Subprime mortgage		2,106			2,210			2,649			3,115			3,331			(5	)		(37	)
Auto		120			141			145			155			174			(15	)		(31	)
Business banking		810			832			895			905			859			(3	)		(6	)
Student and other		107			67			64			68			103			60			4

TOTAL CONSUMER, EXCLUDING CREDIT CARD		8,572			8,833			9,861			10,516			10,821			(3	)		(21	)
TOTAL CREDIT CARD		2			2			2			3			3			—			(33	)
TOTAL CONSUMER NONACCRUAL LOANS (a)(b)		8,574			8,835			9,863			10,519			10,824			(3	)		(21	)

TOTAL NONACCRUAL LOANS		13,441			14,841			15,503			16,179			17,050			(9	)		(21	)


Derivative receivables		21			34			255			315			363			(38	)		(94	)
Assets acquired in loan satisfactions		1,524			1,682			1,898			1,662			1,606			(9	)		(5	)

TOTAL NONPERFORMING ASSETS (a)	$	14,986		$	16,557		$	17,656		$	18,156		$	19,019			(9	)		(21	)


Total nonaccrual loans to total loans		1.96	%		2.14	%		2.25	%		2.31	%		2.39	%
Total wholesale nonaccrual loans to total wholesale loans		2.06			2.64			2.56			2.61			2.91
Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans		2.67			2.70			2.96			3.10			3.09

NONPERFORMING ASSETS BY LOB
Investment Bank	$	2,741		$	3,770		$	2,789		$	2,726		$	3,289			(27	)		(17	)
Retail Financial Services (b)		9,755			10,121			11,255			11,731			11,974			(4	)		(19	)
Card Services		2			2			2			3			3			—			(33	)
Commercial Banking		2,134			2,197			3,227			3,285			3,186			(3	)		(33	)
Treasury & Securities Services		11			12			14			14			14			(8	)		(21	)
Asset Management		263			382			299			337			498			(31	)		(47	)
Corporate/Private Equity (c)		80			73			70			60			55			10			45

TOTAL	$	14,986		$	16,557		$	17,656		$	18,156		$	19,019			(9	)		(21	)


(a)		At March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.8 billion, $10.5 billion, $10.2 billion, $10.1 billion and $10.5 billion, respectively, that are 90 days past due and accruing at the guaranteed reimbursement rate; (2) real estate owned insured by U.S. government agencies of $2.3 billion, $1.9 billion, $1.7 billion, $1.4 billion and $707 million, respectively; and (3) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”), of $615 million, $625 million, $572 million, $447 million and $581 million, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council. Credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

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

(c)		Predominantly relates to retained prime mortgage loans.

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
GROSS CHARGE-OFFS
Wholesale loans	$	253		$	414		$	297		$	264		$	1,014			(39	)%		(75	)%
Consumer loans, excluding credit card		1,460			2,277			1,677			1,874			2,555			(36	)		(43	)
Credit card loans		2,631			2,980			3,485			4,063			4,882			(12	)		(46	)

Total loans	$	4,344		$	5,671		$	5,459		$	6,201		$	8,451			(23	)		(49	)


RECOVERIES
Wholesale loans	$	88		$	143		$	31		$	33		$	55			(38	)		60
Consumer loans, excluding credit card		131			115			131			112			116			14			13
Credit card loans		405			309			352			342			370			31			9

Total loans	$	624		$	567		$	514		$	487		$	541			10			15


NET CHARGE-OFFS
Wholesale loans	$	165		$	271		$	266		$	231		$	959			(39	)		(83	)
Consumer loans, excluding credit card		1,329			2,162	(a)		1,546			1,762			2,439			(39	)		(46	)
Credit card loans		2,226			2,671			3,133			3,721			4,512			(17	)		(51	)

Total loans	$	3,720		$	5,104	(a)	$	4,945		$	5,714		$	7,910			(27	)		(53	)


NET CHARGE-OFF RATES
Wholesale retained loans		0.30	%		0.49	%		0.49	%		0.44	%		1.84	%
Consumer retained loans, excluding credit card		1.66			2.60	(a)		1.83			2.06			2.82
Credit card retained loans		6.97			7.85			8.87			10.20			11.75
Total retained loans		2.22			2.95	(a)		2.84			3.28			4.46
Consumer retained loans, excluding credit card and PCI loans		2.14			3.34	(a)		2.36			2.66			3.65
Total retained loans — excluding PCI loans		2.48			3.31	(a)		3.19			3.69			5.03

Memo: Average Retained Loans
Wholesale loans	$	226,544		$	219,750		$	213,979		$	209,016		$	211,599
Consumer retained loans, excluding credit card		323,961			330,524			336,078			343,847			351,159
Credit card retained loans		129,535			134,999			140,059			146,302			155,790

Total loans — retained	$	680,040		$	685,273		$	690,116		$	699,165		$	718,548


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

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	32,266		$	34,161		$	35,836		$	38,186		$	31,602			(6	)%		2	%
Cumulative effect of change in accounting principles (a)		—			—			—			—			7,494			—		NM
Net charge-offs		3,720			5,104			4,945			5,714			7,910			(27	)		(53	)
Provision for loan losses		1,196			3,207			3,244			3,380			6,991			(63	)		(83	)
Other		8			2			26			(16	)		9			300			(11	)

Ending balance	$	29,750		$	32,266		$	34,161		$	35,836		$	38,186			(8	)		(22	)

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	717		$	873		$	912		$	940		$	939			(18	)		(24	)
Cumulative effect of change in accounting principles (a)		—			—			—			—			(18	)		—		NM
Provision for lending-related commitments		(27	)		(164	)		(21	)		(17	)		19			84		NM
Other		(2	)		8			(18	)		(11	)		—		NM			NM

Ending balance	$	688		$	717		$	873		$	912		$	940			(4	)		(27	)


ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,330		$	1,863		$	1,976		$	2,149		$	2,601			(29	)		(49	)
Retail Financial Services		16,453			16,453			16,154			16,152			16,200			—			2
Card Services		9,041			11,034			13,029			14,524			16,032			(18	)		(44	)
Commercial Banking		2,577			2,552			2,661			2,686			3,007			1			(14	)
Treasury & Securities Services		69			65			54			48			57			6			21
Asset Management		257			267			257			250			261			(4	)		(2	)
Corporate/Private Equity		23			32			30			27			28			(28	)		(18	)

Total	$	29,750		$	32,266		$	34,161		$	35,836		$	38,186			(8	)		(22	)


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

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset specific	$	1,030		$	1,574		$	1,246		$	1,324		$	1,557			(35	)%		(34	)%
Formula-based		3,204			3,187			3,717			3,824			4,385			1			(27	)

Total wholesale		4,234			4,761			4,963			5,148			5,942			(11	)		(29	)

Consumer, excluding credit card
Asset specific (a)(b)		1,067			1,075			1,088			1,091			911			(1	)		17
Formula-based (b)		10,467			10,455			12,270			12,262			12,490			—			(16	)
PCI		4,941			4,941			2,811			2,811			2,811			—			76

Total consumer, excluding credit card		16,475			16,471			16,169			16,164			16,212			—			2

Credit card
Asset specific (b)		3,819			4,069			4,573			4,846			5,402			(6	)		(29	)
Formula-based (b)		5,222			6,965			8,456			9,678			10,630			(25	)		(51	)

Total credit card		9,041			11,034			13,029			14,524			16,032			(18	)		(44	)

Total consumer		25,516			27,505			29,198			30,688			32,244			(7	)		(21	)

Total allowance for loan losses		29,750			32,266			34,161			35,836			38,186			(8	)		(22	)
Allowance for lending-related commitments		688			717			873			912			940			(4	)		(27	)

Total allowance for credit losses	$	30,438		$	32,983		$	35,034		$	36,748		$	39,126			(8	)		(22	)


CREDIT RATIOS
Wholesale allowance to total wholesale retained loans		1.84	%		2.14	%		2.28	%		2.42	%		2.83	%
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		5.13			5.03			4.86			4.76			4.67
Credit card allowance to total credit card retained loans		7.24			8.14			9.55			10.16			10.74
Allowance to total retained loans		4.40			4.71			4.97			5.15			5.40
Consumer allowance to consumer retained nonaccrual loans		298			311			296			292			298
Consumer allowance to consumer retained nonaccrual loans, excluding credit card (c)		192			186			164			154			150

CREDIT RATIOS excluding PCI loans (d)
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		4.61			4.53			5.17			5.09			5.00
Allowance to total retained loans		4.10			4.46			5.12			5.34			5.64
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (c)		135			131			135			127			124
Allowance to total retained nonaccrual loans		189			190			208			209			212


(a)		The asset-specific consumer, excluding credit card allowance for loan losses includes troubled debt restructuring reserves of $970 million, $985 million, $980 million, $946 million and $754 million at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

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

(c)		The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Under guidance issued by the Federal Financial Institutions Examination Council, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

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

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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	(409	)	$	(140	)	$	(158	)	$	(418	)	$	(477	)		(192	)%		14	%
Commercial Banking		51			184			192			(143	)		204			(72	)		(75	)
Treasury & Securities Services		7			11			6			(8	)		(31	)		(36	)	NM
Asset Management		5			22			23			15			31			(77	)		(84	)
Corporate/Private Equity		(13	)		—			(1	)		(1	)		16		NM			NM

Total wholesale		(359	)		77			62			(555	)		(257	)	NM				(40	)

Retail Financial Services		1,326			2,457			1,551			1,715			3,735			(46	)		(64	)
Corporate/Private Equity		3			2			(2	)		(1	)		1			50			200

Total consumer, excluding credit card		1,329			2,459			1,549			1,714			3,736			(46	)		(64	)
Card Services		226			671			1,633			2,221			3,512			(66	)		(94	)

Total consumer		1,555			3,130			3,182			3,935			7,248			(50	)		(79	)

Total provision for loan losses	$	1,196		$	3,207		$	3,244		$	3,380		$	6,991			(63	)		(83	)


LENDING-RELATED COMMITMENTS
Investment Bank	$	(20	)	$	(131	)	$	16		$	93		$	15			85		NM
Commercial Banking		(4	)		(32	)		(26	)		(92	)		10			88		NM
Treasury & Securities Services		(3	)		(1	)		(8	)		(8	)		(8	)		(200	)		63
Asset Management		—			1			—			(10	)		4		NM			NM
Corporate/Private Equity		—			—			—			—			—			—			—

Total wholesale		(27	)		(163	)		(18	)		(17	)		21			83		NM

Retail Financial Services		—			(1	)		(3	)		—			(2	)	NM			NM
Corporate/Private Equity		—			—			—			—			—			—			—

Total consumer, excluding credit card		—			(1	)		(3	)		—			(2	)	NM			NM
Card Services		—			—			—			—			—			—			—

Total consumer		—			(1	)		(3	)		—			(2	)	NM			NM

Total provision for lending-related commitments	$	(27	)	$	(164	)	$	(21	)	$	(17	)	$	19			84		NM


TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	(429	)	$	(271	)	$	(142	)	$	(325	)	$	(462	)		(58	)		7
Commercial Banking		47			152			166			(235	)		214			(69	)		(78	)
Treasury & Securities Services		4			10			(2	)		(16	)		(39	)		(60	)	NM
Asset Management		5			23			23			5			35			(78	)		(86	)
Corporate/Private Equity		(13	)		—			(1	)		(1	)		16		NM			NM

Total wholesale		(386	)		(86	)		44			(572	)		(236	)		(349	)		(64	)

Retail Financial Services		1,326			2,456			1,548			1,715			3,733			(46	)		(64	)
Corporate/Private Equity		3			2			(2	)		(1	)		1			50			200

Total consumer, excluding credit card		1,329			2,458			1,546			1,714			3,734			(46	)		(64	)
Card Services		226			671			1,633			2,221			3,512			(66	)		(94	)

Total consumer		1,555			3,129			3,179			3,935			7,246			(50	)		(79	)

Total provision for credit losses	$	1,169		$	3,043		$	3,223		$	3,363		$	7,010			(62	)		(83	)

Page 38



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
95% CONFIDENCE LEVEL- AVERAGE IB TRADING VAR, CREDIT PORTFOLIO VAR AND OTHER VAR
IB VaR by risk type:
Fixed income	$	49		$	53		$	72		$	64		$	69			(8	)%		(29	)%
Foreign exchange		11			10			9			10			13			10			(15	)
Equities		29			23			21			20			24			26			21
Commodities and other		13			14			13			20			15			(7	)		(13	)
Diversification benefit to IB trading VaR (a)		(38	)		(38	)		(38	)		(42	)		(49	)		—			22

IB Trading VaR (b)		64			62			77			72			72			3			(11	)

Credit portfolio VaR (c)		26			26			30			27			19			—			37
Diversification benefit to IB trading and credit portfolio VaR (a)		(7	)		(10	)		(8	)		(9	)		(9	)		30			22

Total IB trading and credit portfolio VaR		83			78			99			90			82			6			1


Mortgage Banking VaR (d)		16			17			24			24			25			(6	)		(36	)
Chief Investment Office (“CIO”) VaR (e)		60			49			53			72			70			22			(14	)
Diversification benefit to total other VaR (a)		(14	)		(10	)		(15	)		(14	)		(13	)		(40	)		(8	)

Total other VaR		62			56			62			82			82			11			(24	)


Diversification benefit to total IB and other VaR (a)		(57	)		(39	)		(52	)		(79	)		(66	)		(46	)		14

Total IB and other VaR (f)	$	88		$	95		$	109		$	93		$	98			(7	)		(10	)


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

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

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

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

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

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

Page 39



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


																March 31, 2011
																Change
	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Mar 31
	2011			2010			2010			2010			2010			2010			2010
CAPITAL
Tier 1 capital	$	147,266	(e)	$	142,450		$	139,381		$	137,077		$	131,350			3	%		12	%
Total capital		186,461	(e)		182,216			180,740			178,293			173,332			2			8
Tier 1 common capital (a)		119,611	(e)		114,763			110,842			108,175			103,908			4			15
Risk-weighted assets		1,193,529	(e)		1,174,978			1,170,158			1,131,030			1,147,008			2			4
Adjusted average assets (b)		2,041,153	(e)		2,024,515			1,975,479			1,983,839			1,981,060			1			3
Tier 1 capital ratio		12.3	%(e)		12.1	%		11.9	%		12.1	%		11.5	%
Total capital ratio		15.6	(e)		15.5			15.4			15.8			15.1
Tier 1 common capital ratio (a)		10.0	(e)		9.8			9.5			9.6			9.1
Tier 1 leverage ratio		7.2	(e)		7.0			7.1			6.9			6.6

TANGIBLE COMMON EQUITY (PERIOD-END) (c)
Common stockholders’ equity	$	172,798		$	168,306		$	166,030		$	162,968		$	156,569			3			10
Less: Goodwill		48,856			48,854			48,736			48,320			48,359			—			1
Less: Other intangible assets		3,857			4,039			3,982			4,178			4,383			(5	)		(12	)
Add: Deferred tax liabilities (d)		2,603			2,586			2,656			2,584			2,544			1			2

Total tangible common equity	$	122,688		$	117,999		$	115,968		$	113,054		$	106,371			4			15


TANGIBLE COMMON EQUITY (AVERAGE) (c)
Common stockholders’ equity	$	169,415		$	166,812		$	163,962		$	159,069		$	156,094			2			9
Less: Goodwill		48,846			48,831			48,745			48,348			48,542			—			1
Less: Other intangible assets		3,928			4,054			4,094			4,265			4,307			(3	)		(9	)
Add: Deferred tax liabilities (d)		2,595			2,621			2,620			2,564			2,541			(1	)		2

Total tangible common equity	$	119,236		$	116,548		$	113,743		$	109,020		$	105,786			2			13


INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	48,856		$	48,854		$	48,736		$	48,320		$	48,359			—			1
Mortgage servicing rights		13,093			13,649			10,305			11,853			15,531			(4	)		(16	)
Purchased credit card relationships		820			897			974			1,051			1,153			(9	)		(29	)
All other intangibles		3,037			3,142			3,008			3,127			3,230			(3	)		(6	)

Total intangibles	$	65,806		$	66,542		$	63,023		$	64,351		$	68,273			(1	)		(4	)


DEPOSITS (PERIOD-END)
U.S. offices:
Noninterest-bearing	$	244,136		$	228,555		$	219,302		$	208,064		$	210,982			7			16
Interest-bearing		468,654			455,237			435,405			433,764			436,914			3			7
Non-U.S. offices:
Noninterest-bearing		11,644			10,917			10,646			9,094			10,062			7			16
Interest-bearing		271,395			235,660			237,785			236,883			267,345			15			2

Total deposits	$	995,829		$	930,369		$	903,138		$	887,805		$	925,303			7			8


(a)		The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. The Tier 1 common capital ratio, a non-GAAP financial measure, is Tier 1 common capital divided by risk-weighted assets. For further discussion of Tier 1 common capital ratio, see page 43.

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

(c)		The Firm uses ROTCE, a non-GAAP financial measure, to evaluate the Firm’s use of equity and to facilitate comparisons with competitors. For further discussion of ROTCE, see page 43.

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

(e)		Estimated.

Page 40



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
REPURCHASE LIABILITY (a)
Summary of changes in repurchase liability:
Repurchase liability at beginning of period	$	3,285		$	3,307		$	2,332		$	1,982		$	1,705			(1	)%		93	%
Realized losses (b)		(231	)		(371	)		(489	)		(317	)		(246	)		38			6
Provision for repurchase losses		420			349			1,464			667			523			20			(20	)

Repurchase liability at end of period	$	3,474		$	3,285		$	3,307		$	2,332		$	1,982			6			75


Outstanding repurchase demands and mortgage insurance rescission notices by counterparty type: (c)
GSEs and other	$	1,114		$	1,071		$	1,063		$	1,331		$	1,358			4			(18	)
Mortgage insurers		677			624			556			998			1,090			8			(38	)
Overlapping population (d)		(83	)		(63	)		(69	)		(220	)		(232	)		(32	)		64

Total	$	1,708		$	1,632		$	1,550		$	2,109		$	2,216			5			(23	)


Quarterly repurchase demands received by loan origination vintage: (c)
Pre-2005	$	15		$	38		$	31		$	35		$	16			(61	)		(6	)
2005		40			72			67			94			50			(44	)		(20	)
2006		137			195			185			234			189			(30	)		(28	)
2007		367			537			498			521			403			(32	)		(9	)
2008		249			254			191			186			98			(2	)		154
Post-2008		94			65			46			53			20			45			370

Total	$	902		$	1,161		$	1,018		$	1,123		$	776			(22	)		16


(a)		For further details regarding the Firm’s repurchase liability, see Repurchase liability on pages 98-101 and Note 30, on pages 275-280, of JPMorgan Chase’s 2010 Annual Report.

(b)		Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expense. Make-whole settlements were $115 million, $152 million, $225 million, $150 million and $105 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

(c)		Excludes amounts related to Washington Mutual.

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

Page 41



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


	QUARTERLY TRENDS
																1Q11 Change
	1Q11			4Q10			3Q10			2Q10			1Q10			4Q10			1Q10
EARNINGS PER SHARE DATA
Basic earnings per share:
Net income	$	5,555		$	4,831		$	4,418		$	4,795		$	3,326			15	%		67	%
Less: Preferred stock dividends		157			157			160			163			162			—			(3	)

Net income applicable to common equity		5,398			4,674			4,258			4,632			3,164			15			71
Less: Dividends and undistributed earnings allocated to participating securities		262			262			239			269			190			—			38

Net income applicable to common stockholders	$	5,136		$	4,412		$	4,019		$	4,363		$	2,974			16			73


Total weighted-average basic shares outstanding		3,981.6			3,917.0			3,954.3			3,983.5			3,970.5			2			—

Net income per share	$	1.29		$	1.13		$	1.02		$	1.10		$	0.75			14			72

Diluted earnings per share:
Net income applicable to common stockholders	$	5,136		$	4,412		$	4,019		$	4,363		$	2,974			16			73

Total weighted-average basic shares outstanding		3,981.6			3,917.0			3,954.3			3,983.5			3,970.5			2			—
Add: Employee stock options, SARs and warrants (a)		32.5			18.2			17.6			22.1			24.2			79			34

Total weighted-average diluted shares outstanding (b)		4,014.1			3,935.2			3,971.9			4,005.6			3,994.7			2			—
Net income per share	$	1.28		$	1.12		$	1.01		$	1.09		$	0.74			14			73

COMMON SHARES OUTSTANDING
Common shares — at period end		3,986.6			3,910.3			3,925.8			3,975.8			3,975.4			2			—
Cash dividends declared per share	$	0.25		$	0.05		$	0.05		$	0.05		$	0.05			400			400
Book value per share		43.34			43.04			42.29			40.99			39.38			1			10
Dividend payout ratio		20	%		4	%		5	%		5	%		7	%

SHARE PRICE (c)
High	$	48.36		$	43.12		$	41.70		$	48.20		$	46.05			12			5
Low		42.65			36.21			35.16			36.51			37.03			18			15
Close		46.10			42.42			38.06			36.61			44.75			9			3
Market capitalization		183,783			165,875			149,418			145,554			177,897			11			3

STOCK REPURCHASE PROGRAM
Aggregate repurchases	$	95.0		$	685.2		$	2,178.1		$	135.3		$	—			(86	)	NM
Common shares repurchased		2.1			17.9			56.5			3.5			—			(88	)	NM
Average purchase price	$	45.66		$	38.37		$	38.52		$	38.73		$	—			19		NM


(a)		Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock aggregating 85 million, 233 million, 236 million, 224 million and 239 million, for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

(b)		Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.

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

Page 42



JPMORGAN CHASE & CO. NON-GAAP FINANCIAL MEASURES

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

(a)

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

(b)

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

(c)

Return on Tangible Common Equity is Net income applicable to common equity divided by total average common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less identifiable intangible assets (other than MSRs) and goodwill, net of related deferred tax liabilities. The Firm uses return on tangible common equity, a non-GAAP financial measure, to evaluate the Firm’s use of equity and to facilitate comparisons with competitors.

(d)

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

(e)

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

(f)

Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years. This method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Retail Banking’s CDI amortization expense related to prior business combination transactions.

(g)

Adjusted assets, a non-GAAP financial measure, equals total assets minus: (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased; (2) assets of consolidated VIEs; (3) cash and securities segregated and on deposit for regulatory and other purposes; (4) goodwill and intangibles; and (5) securities received as collateral. The amount of adjusted assets is presented to assist the reader in comparing IB’s asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. IB believes an adjusted asset amount that excludes the assets discussed above, which were considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.

Page 43



JPMORGAN CHASE & CO. GLOSSARY OF TERMS

ACH: Automated Clearing House.

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

Beneficial interests issued by consolidated VIEs: Represents the interest of third-party holders of debt/equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates. The underlying obligations of the VIEs consist of short-term borrowings, commercial paper and long-term debt. The related assets consist of trading assets, available-for-sale securities, loans and other assets.

Contractual credit card charge-off: In accordance with the Federal Financial Institutions Examination Council policy, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specific event (e.g., bankruptcy of the borrower), whichever is earlier.

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

FASB: Financial Accounting Standards Board.

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

Interests in purchased receivables: Represents an ownership interest in cash flows of an underlying pool of receivables transferred by a third-party seller into a bankruptcy-remote entity, generally a trust.

Managed basis: A non-GAAP presentation of financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management uses this non-GAAP financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.

Mark-to-market exposure: A measure, at a point in time, of the value of a derivative or foreign exchange contract in the open market. When the MTM value is positive, it indicates the counterparty owes JPMorgan Chase and, therefore, creates credit risk for the Firm. When the MTM value is negative, JPMorgan Chase owes the counterparty; in this situation, the Firm has liquidity risk.

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

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

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

Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.

NM: Not meaningful.

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

Participating securities: Represents unvested stock-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”), which are included in the earnings per share calculation using the two-class method. JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends.

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

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JPMORGAN CHASE & CO. GLOSSARY OF TERMS

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

Principal transactions: Realized and unrealized gains and losses from trading activities (including physical commodities inventories that are accounted for at the lower of cost or fair value) and changes in fair value associated with financial instruments held predominantly by IB for which the fair value option was elected. Principal transactions revenue also includes private equity gains and losses.

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

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

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

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

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

Taxable-equivalent basis: Total net revenue for each of the business segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to fully taxable securities and investments. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense.

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

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

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

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

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JPMORGAN CHASE & CO. GLOSSARY OF TERMS

INVESTMENT BANK (IB)

IB’s revenue comprises the following:

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

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

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

Credit portfolio revenue includes net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring, for IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

RETAIL FINANCIAL SERVICES (RFS)

Description of selected business metrics within Retail Banking:

Personal bankers – Retail branch office personnel who acquire, retain and expand new and existing customer relationships by assessing customer needs and recommending and selling appropriate banking products and services.

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

Mortgage banking revenue comprises the following:

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

Net mortgage servicing revenue includes the following components:

Operating revenue comprises:

•

All gross income earned from servicing third-party mortgage loans, including stated service fees, excess service fees, late fees and other ancillary fees; and

•

Modeled servicing portfolio runoff (or time decay).

Risk management comprises:

•

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

•

Derivative valuation adjustments and other, which represents changes in the fair value of derivative instruments used to offset the impact of changes in the market-based inputs to the MSR valuation model.

RFS (continued)

Mortgage origination channels comprise the following:

Retail – Borrowers who are buying or refinancing a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.

Wholesale – A third-party mortgage broker refers loan applications to a mortgage banker at the Firm. Brokers are independent loan originators that specialize in finding and counseling borrowers but do not provide funding for loans. The Firm exited the broker channel during 2008.

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

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

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

CARD SERVICES (CS)

Description of selected business metrics within CS:

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

Open accounts – Cardmember accounts with charging privileges.

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

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

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

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.

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JPMORGAN CHASE & CO. GLOSSARY OF TERMS

COMMERCIAL BANKING (CB)

CB Client Segments:

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

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

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

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

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

CB Revenue:

Lending includes a variety of financing alternatives, which are primarily provided on a basis secured by receivables, inventory, equipment, real estate or other assets. Products include term loans, revolving lines of credit, bridge financing, asset-based structures, leases, commercial card products and standby letters of credit.

Treasury services includes a broad range of products and services enabling clients to transfer, invest and manage the receipt and disbursement of funds, while providing the related information reporting. These products and services include U.S. dollar and multi-currency clearing, ACH, lockbox, disbursement and reconciliation services, check deposits, other check and currency-related services, trade finance and logistics solutions, deposit products, sweeps and money market mutual funds.

Investment banking products provide clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through loan syndications, investment-grade debt, asset-backed securities, private placements, high-yield bonds, equity underwriting, advisory, interest rate derivatives, foreign exchange hedges and securities sales.

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

Description of selected business metrics within CB:

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

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

TREASURY & SECURITIES SERVICES (TSS)

Treasury & Securities Services firmwide metrics include certain TSS product revenue and liability balances reported in other lines of business related to customers who are also customers of those other lines of business. In order to capture the firmwide impact of Treasury Services and TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary, in management’s view, in order to understand the aggregate TSS business.

Description of a business metric within TSS:

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

ASSET MANAGEMENT (AM)

Assets under management – Represent assets actively managed by AM on behalf of Private Banking, Institutional, and Retail clients. Includes ”committed capital not called”, on which AM earns fees. Excludes assets managed by American Century Companies, Inc. in which the Firm has a 40% ownership interest at March 31, 2011.

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

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

Alternative assets – The following types of assets constitute alternative investments – hedge funds, currency, real estate and private equity.

AM’s client segments comprise the following:

Institutional brings comprehensive global investment services – including asset management, pension analytics, asset/liability management and active risk budgeting strategies – to corporate and public institutions, endowments, foundations, not-for-profit organizations and governments worldwide.

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

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

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Table of Contents

Table of Contents

Table of Contents

Table of Contents