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Form 8-K

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): October 12, 2012

JPMorgan Chase & Co.

(Exact name of registrant as specified in its charter)


Delaware	1-5805	13-2624428
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. employer identification no.)

270 Park Avenue, New York, New York		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:

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

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

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

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

Item 2.02 Results of Operations and Financial Condition

On October 12, 2012, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2012 third quarter net income of $5.7 billion, or $1.40 per share, compared with net income of $4.3 billion, or $1.02 per share, in the third quarter of 2011. A copy of the 2012 third 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. These statements are based on 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 and 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, 2011, Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2012, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, which have been filed with the Securities and Exchange Commission and are available on JPMorgan Chase’s website (http://investor.shareholder.com/jpmorganchase) 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 No.		Description of Exhibit

12.1		JPMorgan Chase & Co. Computation of Earnings to Fixed Charges

12.2		JPMorgan Chase & Co. Computation of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1		JPMorgan Chase & Co. Earnings Release – Third Quarter 2012 Results

99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement – Third Quarter 2012

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/ Douglas L. Braunstein
		Douglas L. Braunstein

		Executive Vice President and Chief Financial Officer
		(Chief Financial Officer)

Dated: October 12, 2012

INDEX TO EXHIBITS


Exhibit No.		Description of Exhibit

12.1		JPMorgan Chase & Co. Computation of Earnings to Fixed Charges

12.2		JPMorgan Chase & Co. Computation of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1		JPMorgan Chase & Co. Earnings Release – Third Quarter 2012 Results

99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement – Third Quarter 2012

Computation of Earnings to Fixed Charges

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges


Nine months ended September 30, (in millions, except ratios)	2012

Excluding interest on deposits
Income before income tax expense	$	21,967

Fixed charges:
Interest expense		6,556
One-third of rents, net of income from subleases (a)		416

Total fixed charges		6,972


Add: Equity in undistributed loss of affiliates		111

Income before income tax expense and fixed charges, excluding capitalized interest	$	29,050


Fixed charges, as above	$	6,972


Ratio of earnings to fixed charges		4.17


Including interest on deposits
Fixed charges, as above	$	6,972
Add: Interest on deposits		2,085


Total fixed charges and interest on deposits	$	9,057

Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	29,050
Add: Interest on deposits		2,085

Total income before income tax expense, fixed charges and interest on deposits	$	31,135


Ratio of earnings to fixed charges		3.44

(a)

The proportion deemed representative of the interest factor.

Computation of Earnings to Fixed Charges and Preferred Stock Dividend

EXHIBIT 12.2

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges

and Preferred Stock Dividend Requirements


Nine months ended September 30, (in millions, except ratios)	2012

Excluding interest on deposits
Income before income tax expense	$	21,967


Fixed charges:
Interest expense		6,556
One-third of rents, net of income from subleases (a)		416

Total fixed charges		6,972


Add: Equity in undistributed loss of affiliates		111

Income before income tax expense and fixed charges, excluding capitalized interest	$	29,050


Fixed charges, as above	$	6,972

Preferred stock dividends (pre-tax)		683


Fixed charges including preferred stock dividends	$	7,655


Ratio of earnings to fixed charges and preferred stock dividend requirements		3.79


Including interest on deposits
Fixed charges including preferred stock dividends, as above	$	7,655

Add: Interest on deposits		2,085


Total fixed charges including preferred stock dividends and interest on deposits	$	9,740

Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	29,050

Add: Interest on deposits		2,085

Total income before income tax expense, fixed charges and interest on deposits	$	31,135


Ratio of earnings to fixed charges and preferred stock dividend requirements		3.20

(a)

The proportion deemed representative of the interest factor.

Earnings Release - Third Quarter 2012 Results

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 RECORD THIRD-QUARTER 2012 NET INCOME OF

$5.7 BILLION, OR RECORD $1.40 PER SHARE, ON REVENUE¹ OF $25.9 BILLION

STRONG PERFORMANCE ACROSS ALL BUSINESSES

•

Continued momentum in all our businesses; strong lending in Commercial Banking, Business Banking, Mortgage Banking and Asset Management²

Investment Bank reported favorable Fixed Income results; maintained #1 ranking for Global Investment Banking fees

Consumer & Business Banking average deposits up 9%; Business Banking loan growth for the eighth consecutive quarter to a record $19 billion, up 8%

Mortgage Banking record production revenue; originations of $47 billion, up 29%

Credit Card sales volume¹ up 11%

Commercial Banking reported record revenue; loan growth for the ninth consecutive quarter to a record $124 billion, up 15%

Treasury & Securities Services reported record assets under custody of $18.2 trillion, up 12%

Asset Management reported fourteenth consecutive quarter of positive net long-term product flows; record loan balances of $75 billion

•

JPMorgan Chase supported consumers, businesses and our communities²

Provided $200 billion of credit¹ to consumers YTD; originated 664,000 mortgages YTD

Provided $15 billion of credit¹ to U.S. small businesses YTD, up 21%

Provided over $380 billion of credit¹ to corporations YTD

Raised nearly $670 billion of capital for clients YTD

$52 billion of capital raised and credit¹ provided for more than 1,300 nonprofit and government entities YTD, including states, municipalities, hospitals and universities

Hired more than 4,500 U.S. veterans since the beginning of 2011

•

Third-quarter results included the following significant items:

$900 million pretax benefit ($0.14 per share after-tax increase in earnings) from reduced mortgage loan loss reserves in Real Estate Portfolios

$825 million pretax incremental charge-offs ($0.13 per share after-tax decrease in earnings) due to regulatory guidance on certain residential loans in Real Estate Portfolios

$888 million pretax benefit ($0.14 per share after-tax increase in earnings) due to extinguishment gains on redeemed trust preferred capital debt securities in Corporate

$684 million pretax expense ($0.11 per share after-tax decrease in earnings) for additional litigation reserves in Corporate


Investor Contact: Sarah Youngwood (212) 270-7325		Media Contact: Joe Evangelisti (212) 270-7438

¹	For notes on non-GAAP measures, including managed basis reporting, see page 14. For additional notes on financial measures, see page 15.

²	Comparisons below are versus prior year.

³	Includes the estimated impact of final Basel 2.5 rules and the Basel III Advanced Notice of Proposed Rulemaking.

JPMorgan Chase & Co.

News Release

•

Fortress balance sheet strengthened

Basel I Tier 1 common¹ of $135 billion; or 10.4%, up from 9.9% in the prior quarter

Estimated Basel III Tier 1 common¹ of 8.4%³, up from 7.9% in the prior quarter

Loan loss reserves of $23 billion; Global Liquidity Reserve of $449 billion

New York, October 12, 2012 – JPMorgan Chase & Co. (NYSE: JPM) today reported record net income for third-quarter 2012 of $5.7 billion, compared with net income of $4.3 billion in the third quarter of 2011. Earnings per share were a record $1.40, compared with $1.02 in the third quarter of 2011. The Firm’s return on tangible common equity¹ for the third quarter of 2012 was 16%, compared with 13% in the prior year.

Jamie Dimon, Chairman and Chief Executive Officer, commented on financial results: “The Firm reported strong performance across all our businesses in the third quarter of 2012. Revenue for the quarter was $25.9 billion, up 6% compared with the prior year, or 16% before the impact of DVA. These results reflected continued momentum in all our businesses.”

Dimon continued: “The Investment Bank reported favorable Fixed Income Markets results and maintained its #1 ranking for Global Investment Banking fees. Consumer & Business Banking average deposits were up 9% and Business Banking loan balances grew for the eighth consecutive quarter to a record $19 billion, up 8% compared with the prior year. Mortgage Banking originations were $47 billion, up 29% compared with the prior year. Credit Card sales volume¹ was up 11% compared with the prior year. Commercial Banking reported record revenue and grew loan balances for the ninth consecutive quarter to a record $124 billion, up 15% compared with the prior year. Treasury & Securities Services assets under custody rose to a record $18.2 trillion, up 12% compared with the prior year. Asset Management reported positive net long-term product flows for the fourteenth consecutive quarter and record loan balances of $75 billion.”

Dimon commented: “Importantly, we believe the housing market has turned the corner. In our Mortgage Banking business, we were encouraged that credit trends continued to modestly improve, and, as a result, the Firm reduced the related loan loss reserves by $900 million. Despite this improvement, the absolute level of charge-offs remains elevated. We also expect to see high default-related expense for a while longer. We are acting responsibly to help homeowners and prevent foreclosures, offering nearly 1.4 million mortgage modifications and completing 578,000 since 2009. Credit trends in our credit card portfolio continued to improve, and the wholesale credit environment remained stable.”

“The underlying strength in the Firm’s results is reflected in our support for customers, corporate clients and communities around the world. The Firm has provided credit and raised capital of over $1.3 trillion for our commercial and consumer clients during the first nine months of 2012. This included more than $15 billion of credit provided for U.S. small businesses, an increase of 21% compared with the same period last year. This also included $52 billion of capital raised and credit¹ provided for more than 1,300 nonprofit and government entities so far this year, including states, municipalities, hospitals and universities.”

Dimon added: “There were several significant items that affected our results this quarter – some positively, some negatively. As we always do, we discuss these significant items in detail within our disclosures.”

Commenting on the balance sheet, Dimon said: “We strengthened our fortress balance sheet, ending the third quarter with a strong Basel I Tier 1 common ratio¹ of 10.4%, up from 9.9% in the second quarter. We estimate that our Basel III Tier 1 common ratio¹ was approximately 8.4%³ at the end of the third quarter, up from 7.9% in the second quarter.”

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Dimon concluded: “I am proud of the momentum we are seeing throughout our businesses. The exceptional power of our franchise is evident in the solid foundation of our fortress balance sheet and the tremendous capacity of JPMorgan Chase to support our customers and communities around the world while making significant investments for the future.”

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 14. The following discussion compares the third quarters of 2012 and 2011 unless otherwise noted.

INVESTMENT BANK (IB)


Results for IB				2Q12		3Q11
($ millions)	3Q12	2Q12	3Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$6,277	$6,766	$6,369	($489)	(7)%	($92)	(1)%
Provision for Credit Losses	(48)	21	54	(69)	NM	(102)	NM
Noninterest Expense	3,907	3,802	3,799	105	3	108	3
Net Income	$1,572	$1,913	$1,636	($341)	(18)%	($64)	(4)%

Discussion of Results:

Net income was $1.6 billion, down 4% from the prior year. These results reflected higher noninterest expense and lower net revenue, largely offset by a benefit from the provision for credit losses compared with a provision for credit losses in the prior year. Net revenue was $6.3 billion, compared with $6.4 billion in the prior year. Net revenue included a $211 million loss from DVA on certain structured and derivative liabilities resulting from the tightening of the Firm’s credit spreads compared with a gain of $1.9 billion in the prior year. Excluding the impact of DVA, net income was $1.7 billion¹, up $1.2 billion from the prior year, and net revenue was $6.5 billion¹, up $2.0 billion from the prior year.

Investment banking fees were $1.4 billion (up 38%), which consisted of debt underwriting fees of $805 million (up 62%), equity underwriting fees of $235 million (up 32%), and advisory fees of $389 million (up 7%). Combined Fixed Income and Equity Markets revenue was $4.8 billion, flat compared with the prior year. The portion of the synthetic credit portfolio transferred from the Chief Investment Office in Corporate to the IB on July 2, 2012 experienced a modest loss, which was included in Fixed Income Markets revenue. Credit Portfolio reported net revenue of $90 million.

Excluding the impact of DVA, Fixed Income and Equity Markets combined revenue was $4.8 billion¹, up 24% from the prior year, driven by solid client revenue and broad-based strength across the Fixed Income businesses. Excluding the impact of DVA, Credit Portfolio net revenue was $289 million¹, driven by net interest income on retained loans and fees on lending-related commitments.

The provision for credit losses was a benefit of $48 million, compared with a provision for credit losses in the prior year of $54 million. The ratio of the allowance for loan losses to end-of-period loans retained was 2.06%, compared with 2.30% in the prior year. Excluding the impact of the consolidation of Firm-administered multi-seller conduits effective on January 1, 2010, the ratio of the allowance for loan losses to end-of-period loans retained was 3.29%¹, compared with 3.60%¹ in the prior year.

Noninterest expense was $3.9 billion, up 3% from the prior year, driven by higher compensation expense, partially offset by lower noncompensation expense. The compensation ratio for the current quarter was 32%¹, excluding the impact of DVA.

JPMorgan Chase & Co.

News Release

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 nine months ended September 30, 2012.

•

Ranked #1 in Global Debt, Equity and Equity-related; #1 in Global Long-Term Debt; #1 in Global Syndicated Loans; #2 in Global Announced M&A; and #4 in Global Equity and Equity-related, based on year-to-date volume, for the nine months ended September 30, 2012.

•

Return on equity was 16% on $40.0 billion of average allocated capital (17%¹excluding DVA).

•

End-of-period total loans were $71.2 billion, up 18% from the prior year and down 4% from the prior quarter. Nonaccrual loans were $794 million, down 44% from the prior year and 3% from the prior quarter.

RETAIL FINANCIAL SERVICES (RFS)


Results for RFS				2Q12		3Q11
($ millions)	3Q12	2Q12	3Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$8,013	$7,935	$7,535	$78	1%	$478	6%
Provision for Credit Losses	631	(555)	1,027	1,186	NM	(396)	(39)
Noninterest Expense	5,039	4,726	4,565	313	7	474	10
Net Income	$1,408	$2,267	$1,161	($859)	(38)%	$247	21%

Discussion of Results:

Net income was $1.4 billion, compared with $1.2 billion in the prior year.

Net revenue was $8.0 billion, an increase of $478 million, or 6%, compared with the prior year. Net interest income was $3.9 billion, down $190 million, or 5%, driven by lower deposit margins and lower loan balances due to portfolio runoff, largely offset by higher deposit balances. Noninterest revenue was $4.1 billion, an increase of $668 million, or 19%, driven by higher mortgage fees and related income, partially offset by lower debit card revenue.

The provision for credit losses was $631 million, compared with $1.0 billion in the prior year and a benefit of $555 million in the prior quarter. The current-quarter provision reflected a $900 million reduction in the allowance for loan losses. Current-quarter total net charge-offs were $1.5 billion, including $825 million of incremental charge-offs reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be charged off to their collateral value and to be considered nonaccrual, regardless of their delinquency status. Excluding these incremental charge-offs, net charge-offs during the quarter would have been $706 million compared with $1.0 billion in the prior year and $795 million in the prior quarter. The prior-quarter provision reflected a $1.4 billion reduction in the allowance for loan losses.

Noninterest expense was $5.0 billion, an increase of $474 million, or 10%, from the prior year.

Consumer & Business Banking reported net income of $785 million, a decrease of $238 million, or 23%, compared with the prior year.

Net revenue was $4.3 billion, down 7% from the prior year. Net interest income was $2.7 billion, down 2% compared with the prior year, driven by the impact of lower deposit margin, predominantly offset

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by higher deposit balances. Noninterest revenue was $1.7 billion, a decrease of 15%, driven by lower debit card revenue, reflecting the impact of the Durbin Amendment.

The provision for credit losses was $107 million, compared with $126 million in the prior year. Net charge-offs were $107 million (2.33% net charge-off rate), compared with $126 million (2.91% net charge-off rate) in the prior year.

Noninterest expense was $2.9 billion, up 3% from the prior year, driven by investments in sales force and new branch builds.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted; banking portal ranking is per compete.com)

•

Average total deposits were $393.8 billion, up 9% from the prior year and 1% from the prior quarter; deposit growth rates were among the best in the industry.

•

Deposit margin was 2.56%, compared with 2.82% in the prior year and 2.62% in the prior quarter.

•

Checking accounts totaled 27.7 million, up 4% from the prior year and 1% from the prior quarter.

•

Number of branches was 5,596, an increase of 200 from the prior year and 33 from the prior quarter. Chase Private Client locations were 960, an increase of 821 from the prior year and 222 from the prior quarter.

•

Record end-of-period Business Banking loans were $18.6 billion, up 8% from the prior year and 2% from the prior quarter; originations were $1.7 billion, up 17% from the prior year and down 6% from the prior quarter; Chase continues to be the #1 SBA lender (in number of loans).

•

Branch sales of credit cards were down 16% from the prior year and 7% from the prior quarter.

•

Branch sales of investment products were up 23% compared with the prior year and 2% compared with the prior quarter.

•

Client investment assets, excluding deposits, were $154.6 billion, up 17% from the prior year and 5% from the prior quarter.

•

Number of active mobile customers was 9.8 million, an increase of 35% compared with the prior year and 8% compared with the prior quarter; QuickDeposit active customers doubled compared with the prior year and QuickPay active customers tripled compared with the prior year.

•

Number of active online customers was 18.2 million, an increase of 5% compared with the prior year and 2% from the prior quarter; Chase.com is the #1 most visited banking portal in the U.S.

Mortgage Production and Servicing reported net income of $563 million, an increase of $358 million compared with the prior year.

Mortgage production reported record pretax income of $1.1 billion, an increase of $594 million from the prior year. Mortgage production-related revenue, excluding repurchase losses, was a record $1.8 billion, an increase of $475 million, or 36%, from the prior year. These results reflected wider margins, driven by favorable market conditions, and higher volumes due to historically low interest rates and the Home Affordable Refinance Programs (“HARP”). Production expense was $678 million, an increase of $182 million, or 37%, reflecting higher volumes. Repurchase losses were $13 million, compared with $314 million in the prior year and $10 million in the prior quarter.

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Mortgage servicing reported a pretax loss of $159 million, compared with a pretax loss of $153 million in the prior year. Mortgage servicing revenue, including mortgage servicing rights (“MSR”) asset amortization, was $754 million, an increase of $57 million, or 8%, from the prior year due to lower MSR asset amortization, largely offset by lower servicing-related revenue. MSR risk management income was $150 million, compared with $16 million in the prior year. Servicing expense was $1.1 billion, an increase of $197 million, or 23%, from the prior year. The current quarter includes approximately $100 million of incremental expense for foreclosure-related matters.

Key Metrics and Business Updates:

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

•

Mortgage loan originations were $47.3 billion, up 29% from the prior year and 8% compared with the prior quarter; Retail channel originations (branch and direct-to-consumer) were $25.5 billion, up 14% from the prior year and down 2% compared with the prior quarter.

•

Mortgage loan application volumes were $73.2 billion, up 26% from the prior year and 9% from the prior quarter.

•

Total third-party mortgage loans serviced were $814.8 billion, down 12% from the prior year and 5% from the prior quarter.

Real Estate Portfolios reported net income of $60 million, compared with a net loss of $67 million in the prior year. The increase was driven by a lower provision for credit losses.

Net revenue was $1.0 billion, a decrease of $145 million, or 13%, from the prior year. The decrease was driven by a decline in net interest income, resulting from lower loan balances due to portfolio runoff.

The provision for credit losses was $520 million, compared with $899 million in the prior year. The current quarter provision reflected a $900 million reduction in the allowance for loan losses due to improved delinquency trends and lower estimated losses, primarily in the Home Equity Portfolio. Net charge-offs totaled $1.4 billion, including $825 million of incremental charge-offs reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be charged off to their collateral value and to be considered nonaccrual, regardless of their delinquency status. Excluding these incremental charge-offs, net charge-offs during the quarter would have been $595 million, compared with $899 million in the prior year and $696 million in the prior quarter. Home equity net charge-offs were $1.1 billion (6.22% net charge-off rate¹), compared with $581 million (2.82% net charge-off rate¹) in the prior year. Subprime mortgage net charge-offs were $152 million (6.89% net charge-off rate¹), compared with $141 million (5.43% net charge-off rate¹). Prime mortgage, including option ARMs, net charge-offs were $143 million (1.37% net charge-off rate¹), compared with $172 million (1.48% net charge-off rate¹).

Excluding the effect of the incremental charge-offs resulting from the regulatory guidance noted above, Home Equity net charge-offs would have been $402 million (2.23% adjusted net charge-off rate¹), compared with $581 million (2.82% net charge-off rate¹) in the prior year. Subprime mortgage net charge-offs would have been $91 million (4.13% adjusted net charge-off rate¹), compared with $141 million (5.43% net charge-off rate¹). Prime mortgage, including option ARMs, net charge-offs would have been $97 million (0.93% adjusted net charge-off rate¹), compared with $172 million (1.48% net charge-off rate¹).

Nonaccrual loans were $8.1 billion, compared with $6.3 billion in the prior year and $6.7 billion in the prior quarter. Before the impact of several changes noted below, nonaccrual loans would have been

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$5.1 billion for the third quarter, down from $6.3 billion in the prior year and $5.3 billion in the prior quarter. The current quarter included $1.7 billion of loans that were reported as nonaccrual as a result of the regulatory guidance noted above. The current quarter nonaccrual loans also reflected the effect of regulatory guidance implemented in the first quarter of 2012 as a result of which the Firm began reporting performing junior liens that are subordinate to nonaccrual senior liens as nonaccrual loans. Such junior liens were $1.3 billion in the current quarter and $1.5 billion in the prior quarter.

Noninterest expense was $386 million, up by $23 million, or 6%, from the prior year due to an increase in servicing costs.

Key Metrics and Business Updates:

^{(All comparisons refer to the prior-year quarter except as noted. Average loans include PCI loans)}

•

Average home equity loans were $93.2 billion, down by $11.6 billion.

•

Average mortgage loans were $90.5 billion, down by $10.6 billion.

•

Allowance for loan losses was $11.3 billion, compared with $14.7 billion.

•

Allowance for loan losses to ending loans retained, excluding PCI loans was 4.63%, compared with 7.12%.

CARD SERVICES & AUTO (Card)


Results for Card				2Q12		3Q11
($ millions)	3Q12	2Q12	3Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$4,723	$4,525	$4,775	$198	4%	($52)	(1)%
Provision for Credit Losses	1,231	734	1,264	497	68	(33)	(3)
Noninterest Expense	1,920	2,096	2,115	(176)	(8)	(195)	(9)
Net Income	$ 954	$1,030	$ 849	($76)	(7)%	$105	12%

Discussion of Results:

Net income was $954 million, an increase of $105 million, or 12%, compared with the prior year. The increase was driven by lower noninterest expense and lower provision for credit losses, partially offset by lower net revenue.

Net revenue was $4.7 billion, a decrease of $52 million, or 1%, from the prior year. Net interest income was $3.4 billion, down $78 million, or 2%, from the prior year. The decrease was driven by narrower loan spreads, lower average loan balances, and lower late fee income. These decreases were largely offset by lower revenue reversals associated with lower net charge-offs. Noninterest revenue was $1.3 billion, an increase of $26 million, or 2%, from the prior year. The increase was driven by higher net interchange and merchant servicing revenue, largely offset by higher amortization of direct loan origination costs.

The provision for credit losses was $1.2 billion, compared with $1.3 billion in the prior year and $734 million in the prior quarter. The current-quarter provision reflected lower net charge-offs and a small reduction in the allowance for loan losses. The prior-year provision included a $370 million reduction in the allowance for loan losses. The Credit Card net charge-off rate¹ was 3.57%, down from 4.70% in the prior year and 4.32% in the prior quarter; and the 30+ day delinquency rate¹ was 2.15%, down from 2.89% in the prior year and up from 2.13% in the prior quarter. The Auto net charge-off rate was 0.74%, up from 0.36% in the prior year and from 0.17% in the prior quarter. Regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be charged off to their collateral value, regardless of their delinquency status, resulted in an incremental

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$55 million of net charge-offs. Excluding these incremental charge-offs, Auto net charge-offs would have been $35 million for the current quarter, and the net charge-off rate would have been 0.29%.

Noninterest expense was $1.9 billion, a decrease of $195 million, or 9%, from the prior year, driven by lower marketing expense.

Key Metrics and Business Updates:

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

•

Return on equity was 23% on $16.5 billion of average allocated capital.

•

Credit Card average loans were $124.3 billion, down 2% from prior year and 1% from the prior quarter.

•

#1 credit card issuer in the U.S. based on outstandings²; #1 Global Visa issuer based on consumer and business credit card sales volume.²

•

Credit Card sales volume² was $96.6 billion, up 11% compared with the prior year and 1% compared with the prior quarter; Card Services general purpose credit card sales volume growth has outperformed the industry since the first quarter of 2008.²

•

Credit Card new accounts of 1.6 million were opened; Credit Card open accounts of 63.9 million.

•

Card Services net revenue as a percentage of average loans was 12.46%, compared with 12.36% in the prior year and 11.91% in the prior quarter.

•

Merchant processing volume was $163.6 billion, up 18% from the prior year and 2% from the prior quarter; total transactions processed were 7.4 billion, up 21% from the prior year and 4% from the prior quarter.

•

Average auto loans were $48.4 billion, up 4% from the prior year and flat compared with the prior quarter.

•

Auto originations were $6.3 billion, up 7% from the prior year and 9% from the prior quarter.

COMMERCIAL BANKING (CB)


Results for CB									2Q12					3Q11
($ millions)	3Q12			2Q12			3Q11		$ O/(U)		O/(U) %			$ O/(U)			O/(U) %
Net Revenue	$	1,732		$	1,691		$	1,588	$	41		2	%	$	144			9	%
Provision for Credit Losses		(16	)		(17	)		67		1		6			(83	)		NM
Noninterest Expense		601			591			573		10		2			28			5
Net Income	$	690		$	673		$	571	$	17		3	%	$	119			21	%

Discussion of Results:

Net income was $690 million, an increase of $119 million, or 21%, from the prior year. The improvement was driven by an increase in net revenue and lower provision for credit losses, partially offset by higher expense.

Net revenue was a record $1.7 billion, an increase of $144 million, or 9%, from the prior year. Net interest income was $1.1 billion, up by $82 million, or 8%, driven by growth in loan and liability balances, partially offset by spread compression on loan products. Noninterest revenue was $586 million, up $62 million, or 12%, compared with the prior year, primarily driven by higher investment banking revenue.

Revenue from Middle Market Banking was $838 million, an increase of $47 million, or 6%, from the prior year. Revenue from Commercial Term Lending was $298 million, flat compared with the prior

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year. Revenue from Corporate Client Banking was $370 million, an increase of $64 million, or 21%, from the prior year. Revenue from Real Estate Banking was $106 million, an increase of $2 million, or 2%, from the prior year.

The provision for credit losses was a benefit of $16 million, compared with a provision for credit losses of $67 million in the prior year. There were net recoveries of $18 million in the current quarter (0.06% net recovery rate), compared with net charge-offs of $17 million (0.06% net charge-off rate) in the prior year and net recoveries of $9 million (0.03% net recovery rate) in the prior quarter. The allowance for loan losses to period-end loans retained was 2.15%, down from 2.50% in the prior year and 2.20% in the prior quarter. Nonaccrual loans were $876 million, down by $567 million, or 39%, from the prior year, due to commercial real estate repayments and loan sales, and down by $41 million, or 4%, from the prior quarter.

Noninterest expense was $601 million, an increase of $28 million, or 5%, from the prior year, reflecting higher headcount-related² expense.

Key Metrics and Business Updates:

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

•

Return on equity was 29% on $9.5 billion of average allocated capital.

•

Overhead ratio was 35%, down from 36% in the prior year.

•

Gross investment banking revenue (which is shared with the Investment Bank) was $431 million, up $111 million, or 35%, from the prior year and up $47 million, or 12%, from the prior quarter.

•

Record average loan balances were $122.1 billion, up $16.8 billion, or 16%, from the prior year and $3.7 billion, or 3%, from the prior quarter.

•

Record end-of-period loan balances were $123.7 billion, up $16.3 billion, or 15%, from the prior year and $3.2 billion, or 3%, from the prior quarter.

•

Average liability balances were $190.9 billion, up $10.6 billion, or 6%, from the prior year and down $2.4 billion, or 1%, from the prior quarter.

TREASURY & SECURITIES SERVICES (TSS)


Results for TSS									2Q12						3Q11
($ millions)	3Q12			2Q12		3Q11			$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue		$2,029			$2,152		$1,908			($123	)		(6	)%		$121			6	%
Provision for Credit Losses		(12	)		8		(20	)		(20	)		NM			8			40
Noninterest Expense		1,443			1,491		1,470			(48	)		(3	)		(27	)		(2	)
Net Income		$ 420			$ 463		$ 305			($43	)		(9	)%		$115			38	%

Discussion of Results:

Net income was $420 million, an increase of $115 million, or 38%, from the prior year. Compared with the prior quarter, net income decreased $43 million, or 9%, reflecting seasonal activity in securities lending and depositary receipts.

Net revenue was $2.0 billion, an increase of $121 million, or 6%, from the prior year. Treasury Services (“TS”) net revenue was $1.1 billion, an increase of $95 million, or 10%. The increase was driven by higher deposit balances and higher trade finance loan volumes. Worldwide Securities Services net revenue was $1.0 billion, an increase of $26 million, or 3%, compared with the prior year driven by higher deposit balances.

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TSS generated firmwide net revenue² of $2.7 billion, including $1.7 billion by TS; of that amount, $1.1 billion was recorded in TS, $609 million in Commercial Banking and $67 million in other lines of business. The remaining $1.0 billion of firmwide net revenue was recorded in Worldwide Securities Services.

Noninterest expense was $1.4 billion, a decrease of $27 million, or 2%, compared with the prior year.

Key Metrics and Business Updates:

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

•

Pretax margin² was 32%, compared with 24% in the prior year and 34% in the prior quarter.

•

Return on equity was 22% on $7.5 billion of average allocated capital.

•

Average liability balances were $351.4 billion, up 3%.

•

Assets under custody were a record $18.2 trillion, up 12%.

•

End-of-period trade finance loans were $35.1 billion, up 17%.

•

International revenue was $1.1 billion, up 6%, and represented 54% of total revenue.

ASSET MANAGEMENT (AM)


Results for AM							2Q12						3Q11
($ millions)	3Q12		2Q12		3Q11		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue		$2,459		$2,364		$2,316		$95			4	%		$143			6	%
Provision for Credit Losses		14		34		26		(20	)		(59	)		(12	)		(46	)
Noninterest Expense		1,731		1,701		1,796		30			2			(65	)		(4	)
Net Income		$443		$391		$385		$52			13	%		$58			15	%

Discussion of Results:

Net income was $443 million, an increase of $58 million, or 15%, from the prior year. These results reflected higher net revenue, lower noninterest expense and lower provision for credit losses.

Net revenue was $2.5 billion, an increase of $143 million, or 6%, from the prior year. Noninterest revenue was $1.9 billion, up $9 million from the prior year as higher valuations of seed capital investments and net product inflows were offset by the absence of a prior-year gain on the sale of an investment and lower loan-related revenue. Net interest income was $552 million, up by $134 million, or 32%, primarily due to higher deposit and loan balances.

Revenue from Private Banking was $1.4 billion, up 5% from the prior year. Revenue from Institutional was $563 million, up 18%. Revenue from Retail was $531 million, down 2%.

Assets under supervision were $2.0 trillion, an increase of $225 billion, or 12%, from the prior year. Assets under management were $1.4 trillion, an increase of $127 billion, or 10%, due to the effect of higher market levels and net inflows to long-term products. Custody, brokerage, administration and deposit balances were $650 billion, up $98 billion, or 18%, primarily due to the effect of higher market levels and custody and brokerage inflows.

The provision for credit losses was $14 million, compared with $26 million in the prior year.

Noninterest expense was $1.7 billion, a decrease of $65 million, or 4%, from the prior year, due to the absence of non-client-related litigation expense, partially offset by higher performance-based compensation.

JPMorgan Chase & Co.

News Release

Key Metrics and Business Updates:

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

•

Pretax margin² was 29%, up from 21% in the prior year.

•

Assets under management reflected net inflows of $43 billion for the 12 months ended September 30, 2012. For the quarter, net inflows were $4 billion reflecting net inflows of $21 billion to long-term products, predominantly offset by net outflows of $17 billion from liquidity products. Net long-term product flows were positive for the fourteenth consecutive quarter.

•

Assets under management ranked in the top two quartiles for investment performance were 77% over 5 years, 78% over 3 years and 69% over 1 year.

•

Customer assets in 4 and 5 Star–rated funds were 45% of all rated mutual fund assets.

•

Assets under supervision were $2.0 trillion, up 12% from the prior year and 3% from the prior quarter.

•

Average loans were $71.8 billion, up 36% from the prior year and 7% from the prior quarter.

•

End-of-period loans were $74.9 billion, up 38% from the prior year and 6% from the prior quarter.

•

Average deposits were $127.5 billion, up 15% from the prior year and down slightly from the prior quarter.

CORPORATE/PRIVATE EQUITY


Results for Corporate/Private Equity				2Q12		3Q11
($ millions)	3Q12	2Q12	3Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$576	($2,609)	($132)	$3,185	NM	$708	NM
Provision for Credit Losses	(11)	(11)	(7)	—	—%	(4)	(57)%
Noninterest Expense	730	559	1,216	171	31	(486)	(40)
Net Income/(Loss)	$221	($1,777)	($645)	$1,998	NM	$866	NM

Discussion of Results:

Net income was $221 million, compared with a net loss of $645 million in the prior year.

Private Equity reported a net loss of $89 million, compared with a net loss of $347 million in the prior year. Net revenue was a loss of $135 million, compared with a loss of $546 million in the prior year, due to lower net valuation losses on both private and public investments.

Treasury and CIO reported net income of $369 million, compared with a net loss of $94 million in the prior year. Net revenue was $713 million, compared with net revenue of $102 million in the prior year. The current quarter revenue reflected $888 million of pretax extinguishment gains related to the redemption of trust preferred capital debt securities. The extinguishment gains were related to adjustments applied to the cost basis of the trust preferred capital debt securities during the period they were in a qualified hedge accounting relationship.

During the third quarter, the CIO effectively closed out the index credit derivative positions that were retained following the transfer of the synthetic credit portfolio to the IB on July 2, 2012. Principal transactions in CIO included $449 million of losses on this portfolio reflecting credit spread tightening during the quarter. Net revenue also included securities gains of $459 million from sales of available-

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for-sale investment securities during the current quarter. Net interest income was negative, reflecting the impact of lower portfolio yields and higher deposit balances across the Firm.

Other Corporate reported a net loss of $59 million, compared with a net loss of $204 million in the prior year. The current quarter included pretax expense of $684 million for additional litigation reserves, largely offset by other items, including tax adjustments. The prior year included pretax expense of $1.0 billion for additional litigation reserves.

JPMORGAN CHASE (JPM)^(*)


Results for JPM				2Q12		3Q11
($ millions)	3Q12	2Q12	3Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$25,863	$22,892	$24,368	$2,971	13%	$1,495	6%
Provision for Credit Losses	1,789	214	2,411	1,575	NM	(622)	(26)
Noninterest Expense	15,371	14,966	15,534	405	3	(163)	(1)
Net Income	$5,708	$4,960	$4,262	$748	15%	$1,446	34%

(*)	Presented on a managed basis. See notes on page 14 for further explanation of managed basis. Net revenue on a U.S. GAAP basis totaled $25,146 million, $22,180 million, and $23,763 million for the third quarter of 2012, second quarter of 2012, and third quarter of 2011, respectively.

Discussion of Results:

Net income was $5.7 billion, up $1.4 billion, or 34%, from the prior year. The increase in earnings was driven by higher net revenue, lower provision for credit losses and lower noninterest expense.

Net revenue was $25.9 billion, up $1.5 billion, or 6%, compared with the prior year. Noninterest revenue was $14.7 billion, up $2.3 billion, or 18%, from the prior year, due to higher mortgage fees and related income, higher principal transactions and higher investment banking fees. The current quarter revenue reflected $888 million of pretax extinguishment gains related to the redemption of trust preferred capital debt securities. The extinguishment gains were related to adjustments applied to the cost basis of the trust preferred capital debt securities during the period they were in a qualified hedge accounting relationship. Net interest income was $11.2 billion, down $774 million, or 6%, compared with the prior year, reflecting the impact of low interest rates, as well as lower average trading balances, faster mortgage-backed securities repayments, limited reinvestment opportunities and the runoff of higher-yielding loans, partially offset by lower deposit costs.

The provision for credit losses was $1.8 billion, down $622 million, or 26%, from the prior year. The total consumer provision for credit losses was $1.9 billion, down $432 million from the prior year. The decrease in the consumer provision reflected a $900 million reduction of the allowance for loan losses related to the mortgage portfolio due to improved delinquency trends and lower estimated losses. Consumer net charge-offs ¹ were $2.8 billion, compared with $2.7 billion in the prior year, resulting in net charge-off rates of 3.10% and 2.84%, respectively. The increase in consumer net charge-offs was primarily due to incremental charge-offs of $825 million for certain residential loans reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be charged off to their collateral value and to be considered nonaccrual, regardless of their delinquency status. The wholesale provision for credit losses was a benefit of $63 million compared with an expense of $127 million in the prior year. Wholesale net recoveries were $34 million, compared with net recoveries of $151 million in the prior year, resulting in net recovery rates of 0.05% and 0.24%, respectively. The Firm’s allowance for loan losses to end-of-period loans retained¹ was 2.61%, compared with 3.74% in the prior year.

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The Firm’s nonperforming assets totaled $12.5 billion at September 30, 2012, up from the prior-quarter level of $11.4 billion and flat compared with the prior-year level of $12.5 billion. Before the impact of the reporting changes noted below, nonperforming assets would have been $9.5 billion for the third quarter, down from $9.9 billion in the prior quarter and $12.5 billion in the prior year. The current quarter included $1.7 billion of loans which were reported as nonaccrual in accordance with the regulatory guidance noted above. The current quarter nonaccrual loans also reflected the effect of regulatory guidance implemented in the first quarter of 2012 as a result of which the Firm began reporting performing junior liens that are subordinate to senior liens that are 90 days or more past due, as nonaccrual loans. Such junior liens were $1.3 billion in the current quarter and $1.5 billion in the prior quarter.

Noninterest expense was $15.4 billion, down $163 million, or 1%, compared with the prior year.

Key Metrics and Business Updates:

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

•

Basel I Tier 1 common ratio¹ was 10.4% at September 30, 2012, compared with 9.9% at June 30, 2012, and 9.9% at September 30, 2011.

•

Headcount was 259,547, an increase of 2,884, or 1%.

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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 fully taxable-equivalent (“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 PCI portfolio totaled $5.7 billion, $5.7 billion and $4.9 billion at September 30, 2012, June 30, 2012, and September 30, 2011, respectively. In IB, the ratio for the allowance for loan losses to end-of-period loans is calculated excluding the impact of consolidated Firm-administered multi-seller conduits, to provide a more meaningful assessment of the IB’s allowance coverage.

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

d. The Basel I Tier 1 common ratio is Tier 1 common capital divided by Basel I risk-weighted assets. Tier 1 common capital 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 capital, 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 capital along with other capital measures to assess and monitor its capital position. On December 16, 2010, the Basel Committee issued its final version of the Basel Capital Accord, commonly referred to as “Basel III.” In June 2012, the U.S. federal banking agencies published final rules on Basel 2.5 that will go into effect on January 1, 2013 and result in additional capital requirements for trading positions and securitizations. Also, in June 2012, the U.S. federal banking agencies published for comment a Notice of Proposed Rulemaking (the “NPR”) for implementing Basel III, in the United States. The Firm’s estimate of its Tier 1 common ratio under Basel III is a non-GAAP financial measure and reflects the Firm’s current understanding of the Basel III rules and the application of such rules to its businesses as currently conducted based on information currently published by the Basel Committee and U.S. federal banking agencies, and therefore excludes the impact of any changes the Firm may make in the future to its businesses as a result of implementing the Basel III rules. The Firm’s estimates of its Basel III Tier 1 common ratio will evolve over time as the Firm’s businesses change, and as a result of further rule-making on Basel III implementation from U.S. federal banking agencies. Management considers this estimate as a key measure to assess the Firm’s capital position in conjunction with its capital ratios under Basel I requirements, in order to enable management, investors and analysts to compare the Firm’s capital under the Basel III capital standards with similar estimates provided by other financial services companies.

e. In Card Services & Auto, supplemental information is provided for Card Services to provide more meaningful measures that enable comparability with prior periods. The net charge-off and 30+ day delinquency rates presented include loans held-for-sale.

f. In the Investment Bank, the following metrics are provided excluding the impact of debit valuation adjustments (“DVA”): net revenue, net income, compensation ratio, and return on equity. These measures are used by management, investors and analysts to assess the underlying performance of the business.

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News Release

2. Additional notes on financial measures:

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

b. 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.

c. 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 peers.

d. Credit card sales volume is presented excluding Commercial Card. Rankings and comparison of general purpose credit card sales volume are based on disclosures by peers and internal estimates. Rankings are as of the second quarter of 2012.

e. The amount of credit provided to clients represents new and renewed credit, including loans and commitments. The amount of credit provided to small businesses reflects loans and increased lines of credit provided by Consumer & Business Banking, Card Services & Auto and Commercial Banking. The amount of credit provided to not-for-profit and government entities, including states, municipalities, hospitals and universities, represents that provided by the Investment Bank.

JPMorgan Chase & Co.

News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.3 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers and small businesses, 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 8:30 a.m. (Eastern Time) to present third-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. Please dial in 10 minutes prior to the start of the call. 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 October 12, 2012 through midnight, October 26, 2012 by telephone at (855) 859-2056 or (800) 585-8367 (U.S. and Canada) or (404) 537-3406 (international); use Conference ID# 22248891. 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. These statements are based on 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, 2011, Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2012, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, which have been filed with the Securities and Exchange Commission and are available on JPMorgan Chase & Co.’s website (http://investor.shareholder.com/jpmorganchase) 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															NINE MONTHS ENDED SEPTEMBER 30,
										3Q12 Change												2012 Change
	3Q12			2Q12			3Q11			2Q12			3Q11			2012			2011			2011
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue	$	25,146		$	22,180		$	23,763			13	%		6	%	$	73,378		$	75,763			(3	)%
Total noninterest expense		15,371			14,966			15,534			3			(1	)		48,682			48,371			1
Pre-provision profit		9,775			7,214			8,229			36			19			24,696			27,392			(10	)
Provision for credit losses		1,789			214			2,411			NM			(26	)		2,729			5,390			(49	)
NET INCOME		5,708			4,960			4,262			15			34			15,592			15,248			2

Managed Basis (a)
Total net revenue		25,863			22,892			24,368			13			6			75,512			77,569			(3	)
Total noninterest expense		15,371			14,966			15,534			3			(1	)		48,682			48,371			1
Pre-provision profit		10,492			7,926			8,834			32			19			26,830			29,198			(8	)
Provision for credit losses		1,789			214			2,411			NM			(26	)		2,729			5,390			(49	)
NET INCOME		5,708			4,960			4,262			15			34			15,592			15,248			2

PER COMMON SHARE DATA
Basic earnings		1.41			1.22			1.02			16			38			3.82			3.60			6
Diluted earnings		1.40			1.21			1.02			16			37			3.81			3.57			7

Cash dividends declared (b)		0.30			0.30			0.25			—			20			0.90			0.75			20
Book value		50.17			48.40			45.93			4			9			50.17			45.93			9

Closing share price (c)		40.48			35.73			30.12			13			34			40.48			30.12			34
Market capitalization		153,806			135,661			114,422			13			34			153,806			114,422			34

COMMON SHARES OUTSTANDING
Average: Basic		3,803.3			3,808.9			3,859.6			—			(1	)		3,810.4			3,933.2			(3	)
Diluted		3,813.9			3,820.5			3,872.2			—			(2	)		3,822.6			3,956.5			(3	)
Common shares at period-end		3,799.6			3,796.8			3,798.9			—			—			3,799.6			3,798.9			—

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)		12	%		11	%		9	%								11	%		11	%
Return on tangible common equity (“ROTCE”) (e)		16			15			13									15			16
Return on assets (“ROA”)		1.01			0.88			0.76									0.92			0.94
Return on risk-weighted assets (f)		1.74	(h)		1.52			1.40									1.61	(h)		1.70

CAPITAL RATIOS
Tier 1 capital ratio		11.9	(h)		11.3			12.1									11.9	(h)		12.1
Total capital ratio		14.7	(h)		14.0			15.3									14.7	(h)		15.3
Tier 1 common capital ratio (g)		10.4	(h)		9.9			9.9									10.4	(h)		9.9

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,321,284		$	2,290,146		$	2,289,240			1			1		$	2,321,284		$	2,289,240			1
Wholesale loans		302,331			302,820			259,483			—			17			302,331			259,483			17
Consumer, excluding credit card loans		295,079			300,046			310,235			(2	)		(5	)		295,079			310,235			(5	)
Credit card loans		124,537			124,705			127,135			—			(2	)		124,537			127,135			(2	)

Total Loans		721,947			727,571			696,853			(1	)		4			721,947			696,853			4
Deposits		1,139,611			1,115,886			1,092,708			2			4			1,139,611			1,092,708			4
Common stockholders’ equity		190,635			183,772			174,487			4			9			190,635			174,487			9
Total stockholders’ equity		199,693			191,572			182,287			4			10			199,693			182,287			10

Deposits-to-loans ratio		158	%		153	%		157	%								158	%		157	%

Headcount		259,547			262,882			256,663			(1	)		1			259,547			256,663			1

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	1,572		$	1,913		$	1,636			(18	)		(4	)	$	5,167		$	6,063			(15	)
Retail Financial Services		1,408			2,267			1,161			(38	)		21			5,428			1,145			374
Card Services & Auto		954			1,030			849			(7	)		12			3,167			3,493			(9	)
Commercial Banking		690			673			571			3			21			1,954			1,724			13
Treasury & Securities Services		420			463			305			(9	)		38			1,234			954			29
Asset Management		443			391			385			13			15			1,220			1,290			(5	)
Corporate/Private Equity		221			(1,777	)		(645	)		NM			NM			(2,578	)		579			NM

NET INCOME	$	5,708		$	4,960		$	4,262			15			34		$	15,592		$	15,248			2

(a)	For further discussion of managed basis, see Note (a) on page 14.

(b)	On March 13, 2012, the Board of Directors increased the Firm's quarterly stock dividend from $0.25 to $0.30 per share.

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

(d)	Ratios are based upon annualized amounts.

(e)	ROTCE is a non-GAAP financial ratio, and it measures the Firm's earnings as a percentage of tangible common equity. For further discussion of this ratio, see page 46 of the Earnings Release Financial Supplement.

(f)	Return on Basel I risk-weighted assets is the annualized earnings of the Firm divided by its average risk-weighted assets.

(g)

Basel I Tier 1 common capital ratio (“Tier 1 common ratio”) is Tier 1 common capital (“Tier 1 common”) 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 46 of the Earnings Release Financial Supplement.

(h)	Estimated.

Earnings Release Financial Supplement - Third Quarter 2012

Exhibit 99.2

LOGO

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2012

JPMORGAN CHASE & CO.

TABLE OF CONTENTS


		Page(s)

Consolidated Results
Consolidated Financial Highlights		2-3
Consolidated Statements of Income		4
Consolidated Balance Sheets		5
Condensed Average Balance Sheets and Annualized Yields		6
Core Net Interest Income		7
Reconciliation from Reported to Managed Summary		8

Business Detail
Line of Business Financial Highlights — Managed Basis		9
Investment Bank		10-13
Retail Financial Services		14-20
Card Services & Auto		21-23
Commercial Banking		24-25
Treasury & Securities Services		26-28
Asset Management		29-33
Corporate/Private Equity		34-35

Credit-Related Information		36-41

Market Risk-Related Information		42

Supplemental Detail
Capital and Other Selected Balance Sheet Items		43
Mortgage Repurchase Liability		44
Per Share-Related Information		45

Non-GAAP Financial Measures		46

Glossary of Terms		47-51

Page 1

JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(in millions, except per share and ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue	$	25,146		$	22,180		$	26,052		$	21,471		$	23,763			13	%		6	%		$ 73,378			$ 75,763			(3	)%
Total noninterest expense		15,371			14,966			18,345			14,540			15,534			3			(1	)		48,682			48,371			1
Pre-provision profit		9,775			7,214			7,707			6,931			8,229			36			19			24,696			27,392			(10	)
Provision for credit losses		1,789			214			726			2,184			2,411			NM			(26	)		2,729			5,390			(49	)
NET INCOME		5,708			4,960			4,924			3,728			4,262			15			34			15,592			15,248			2

Managed Basis (a)
Total net revenue		25,863			22,892			26,757			22,198			24,368			13			6			75,512			77,569			(3	)
Total noninterest expense		15,371			14,966			18,345			14,540			15,534			3			(1	)		48,682			48,371			1
Pre-provision profit		10,492			7,926			8,412			7,658			8,834			32			19			26,830			29,198			(8	)
Provision for credit losses		1,789			214			726			2,184			2,411			NM			(26	)		2,729			5,390			(49	)
NET INCOME		5,708			4,960			4,924			3,728			4,262			15			34			15,592			15,248			2

PER COMMON SHARE DATA
Basic earnings		1.41			1.22			1.20			0.90			1.02			16			38			3.82			3.60			6
Diluted earnings		1.40			1.21			1.19			0.90			1.02			16			37			3.81			3.57			7

Cash dividends declared (b)		0.30			0.30			0.30			0.25			0.25			—			20			0.90			0.75			20
Book value		50.17			48.40			47.48			46.59			45.93			4			9			50.17			45.93			9

Closing share price (c)		40.48			35.73			45.98			33.25			30.12			13			34			40.48			30.12			34
Market capitalization		153,806			135,661			175,737			125,442			114,422			13			34			153,806			114,422			34

COMMON SHARES OUTSTANDING
Average: Basic		3,803.3			3,808.9			3,818.8			3,801.9			3,859.6			—			(1	)		3,810.4			3,933.2			(3	)
Diluted		3,813.9			3,820.5			3,833.4			3,811.7			3,872.2			—			(2	)		3,822.6			3,956.5			(3	)
Common shares at period-end		3,799.6			3,796.8			3,822.0			3,772.7			3,798.9			—			—			3,799.6			3,798.9			—

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)		12	%		11	%		11	%		8	%		9	%								11	%		11	%
Return on tangible common equity (“ROTCE”) (e)		16			15			15			11			13									15			16
Return on assets (“ROA”)		1.01			0.88			0.88			0.65			0.76									0.92			0.94
Return on risk-weighted assets (f)		1.74	(h)		1.52			1.57			1.21			1.40									1.61	(h)		1.70

CAPITAL RATIOS
Tier 1 capital ratio		11.9	(h)		11.3			11.9			12.3			12.1									11.9	(h)		12.1
Total capital ratio		14.7	(h)		14.0			14.9			15.4			15.3									14.7	(h)		15.3
Tier 1 common capital ratio (g)		10.4	(h)		9.9			9.8			10.1			9.9									10.4	(h)		9.9

(a)	For further discussion of managed basis, see Reconciliation from Reported to Managed Summary on page 8.

(b)	On March 13, 2012, the Board of Directors increased the Firm’s quarterly stock dividend from $0.25 to $0.30 per share.

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

(d)	Ratios are based upon annualized amounts.

(e)	ROTCE is a non-GAAP financial ratio, and it measures the Firm’s earnings as a percentage of tangible common equity. For further discussion of this ratio, see page 46.

(f)	Return on Basel I risk-weighted assets is the annualized earnings of the Firm divided by its average risk-weighted assets.

(g)

(h)	Estimated.

Page 2

JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,321,284		$	2,290,146		$	2,320,164		$	2,265,792		$	2,289,240			1	%		1	%	$	2,321,284		$	2,289,240			1	%
Wholesale loans		302,331			302,820			290,866			283,016			259,483			—			17			302,331			259,483			17
Consumer, excluding credit card loans		295,079			300,046			304,770			308,427			310,235			(2	)		(5	)		295,079			310,235			(5	)
Credit card loans		124,537			124,705			125,331			132,277			127,135			—			(2	)		124,537			127,135			(2	)

Total Loans		721,947			727,571			720,967			723,720			696,853			(1	)		4			721,947			696,853			4
Deposits		1,139,611			1,115,886			1,128,512			1,127,806			1,092,708			2			4			1,139,611			1,092,708			4
Common stockholders’ equity		190,635			183,772			181,469			175,773			174,487			4			9			190,635			174,487			9
Total stockholders’ equity		199,693			191,572			189,269			183,573			182,287			4			10			199,693			182,287			10

Deposits-to-loans ratio		158	%		153	%		157	%		156	%		157	%								158	%		157	%

Headcount		259,547			262,882			261,453			260,157			256,663			(1	)		1			259,547			256,663			1

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	1,572		$	1,913		$	1,682		$	726		$	1,636			(18	)		(4	)	$	5,167		$	6,063			(15	)
Retail Financial Services		1,408			2,267			1,753			533			1,161			(38	)		21			5,428			1,145			374
Card Services & Auto		954			1,030			1,183			1,051			849			(7	)		12			3,167			3,493			(9	)
Commercial Banking		690			673			591			643			571			3			21			1,954			1,724			13
Treasury & Securities Services		420			463			351			250			305			(9	)		38			1,234			954			29
Asset Management		443			391			386			302			385			13			15			1,220			1,290			(5	)
Corporate/Private Equity		221			(1,777	)		(1,022	)		223			(645	)		NM			NM			(2,578	)		579			NM

NET INCOME	$	5,708		$	4,960		$	4,924		$	3,728		$	4,262			15			34		$	15,592		$	15,248			2

Page 3

JPMORGAN CHASE & CO.

CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share and ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
REVENUE
Investment banking fees	$	1,443		$	1,257		$	1,381		$	1,133		$	1,052			15	%		37	%	$	4,081		$	4,778			(15	)%
Principal transactions		2,047			(427	)		2,722			750			1,370			NM			49			4,342			9,255			(53	)
Lending- and deposit-related fees		1,562			1,546			1,517			1,620			1,643			1			(5	)		4,625			4,838			(4	)
Asset management, administration and commissions		3,336			3,461			3,392			3,337			3,448			(4	)		(3	)		10,189			10,757			(5	)
Securities gains		458			1,014			536			47			607			(55	)		(25	)		2,008			1,546			30
Mortgage fees and related income		2,377			2,265			2,010			725			1,380			5			72			6,652			1,996			233
Credit card income		1,428			1,412			1,316			1,359			1,666			1			(14	)		4,156			4,799			(13	)
Other income		1,519			506			1,512			369			780			200			95			3,537			2,236			58

Noninterest revenue		14,170			11,034			14,386			9,340			11,946			28			19			39,590			40,205			(2	)
Interest income		13,629			14,099			14,701			15,054			15,160			(3	)		(10	)		42,429			46,239			(8	)
Interest expense		2,653			2,953			3,035			2,923			3,343			(10	)		(21	)		8,641			10,681			(19	)

Net interest income		10,976			11,146			11,666			12,131			11,817			(2	)		(7	)		33,788			35,558			(5	)

TOTAL NET REVENUE		25,146			22,180			26,052			21,471			23,763			13			6			73,378			75,763			(3	)
Provision for credit losses		1,789			214			726			2,184			2,411			NM			(26	)		2,729			5,390			(49	)
NONINTEREST EXPENSE
Compensation expense		7,503			7,427			8,613			6,297			6,908			1			9			23,543			22,740			4
Occupancy expense		973			1,080			961			1,047			935			(10	)		4			3,014			2,848			6
Technology, communications and equipment expense		1,312			1,282			1,271			1,282			1,248			2			5			3,865			3,665			5
Professional and outside services		1,759			1,857			1,795			2,021			1,860			(5	)		(5	)		5,411			5,461			(1	)
Marketing		607			642			680			814			926			(5	)		(34	)		1,929			2,329			(17	)
Other expense (a)		3,035			2,487			4,832			2,872			3,445			22			(12	)		10,354			10,687			(3	)
Amortization of intangibles		182			191			193			207			212			(5	)		(14	)		566			641			(12	)

TOTAL NONINTEREST EXPENSE		15,371			14,966			18,345			14,540			15,534			3			(1	)		48,682			48,371			1

Income before income tax expense		7,986			7,000			6,981			4,747			5,818			14			37			21,967			22,002			—
Income tax expense		2,278			2,040			2,057			1,019			1,556			12			46			6,375			6,754			(6	)

NET INCOME	$	5,708		$	4,960		$	4,924		$	3,728		$	4,262			15			34		$	15,592		$	15,248			2


PER COMMON SHARE DATA
Basic earnings	$	1.41		$	1.22		$	1.20		$	0.90		$	1.02			16			38		$	3.82		$	3.60			6
Diluted earnings		1.40			1.21			1.19			0.90			1.02			16			37			3.81			3.57			7

FINANCIAL RATIOS
Return on common equity (b)		12	%		11	%		11	%		8	%		9	%								11	%		11	%
Return on tangible common equity (b)(c)		16			15			15			11			13									15			16
Return on assets (b)		1.01			0.88			0.88			0.65			0.76									0.92			0.94
Return on risk-weighted assets (c)		1.74	(d)		1.52			1.57			1.21			1.40									1.61	(d)		1.70
Effective income tax rate		29			29			29			21	(e)		27	(e)								29			31
Overhead ratio		61			67			70			68			65									66			64

(a)

Included litigation expense of $0.8 billion, $0.3 billion, $2.7 billion, $0.6 billion and $1.3 billion for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $3.8 billion and $4.3 billion for the nine months ended September 30, 2012 and 2011, respectively.

(b)	Ratios are based upon annualized amounts.

(c)	For further discussion of ROTCE and return on Basel I risk-weighted assets, see pages 2 and 46.

(d)	Estimated.

(e)	Reflects lower reported pretax income and changes in the proportion of income subject to U.S. federal and state and local taxes, as well as tax benefits associated with state and local income taxes.

Page 4

JPMORGAN CHASE & CO.

CONSOLIDATED BALANCE SHEETS

(in millions)


																Sep 30, 2012 Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Sep 30,
	2012			2012			2012			2011			2011			2012			2011
ASSETS
Cash and due from banks	$	53,343		$	44,866		$	55,383		$	59,602		$	56,766			19	%		(6	)%
Deposits with banks		104,344			130,383			115,028			85,279			128,877			(20	)		(19	)
Federal funds sold and securities purchased under resale agreements		281,991			255,188			240,484			235,314			248,042			11			14
Securities borrowed		133,526			138,209			135,650			142,462			131,561			(3	)		1
Trading assets:
Debt and equity instruments		367,090			331,781			370,623			351,486			352,678			11			4
Derivative receivables		79,963			85,543			85,010			92,477			108,853			(7	)		(27	)
Securities		365,901			354,595			381,742			364,793			339,349			3			8
Loans		721,947			727,571			720,967			723,720			696,853			(1	)		4
Less: Allowance for loan losses		22,824			23,791			25,871			27,609			28,350			(4	)		(19	)

Loans, net of allowance for loan losses		699,123			703,780			695,096			696,111			668,503			(1	)		5
Accrued interest and accounts receivable		62,989			67,939			64,833			61,478			72,080			(7	)		(13	)
Premises and equipment		14,271			14,206			14,213			14,041			13,812			—			3
Goodwill		48,178			48,131			48,208			48,188			48,180			—			—
Mortgage servicing rights		7,080			7,118			8,039			7,223			7,833			(1	)		(10	)
Other intangible assets		2,641			2,813			3,029			3,207			3,396			(6	)		(22	)
Other assets		100,844			105,594			102,826			104,131			109,310			(4	)		(8	)

TOTAL ASSETS	$	2,321,284		$	2,290,146		$	2,320,164		$	2,265,792		$	2,289,240			1			1


LIABILITIES
Deposits	$	1,139,611		$	1,115,886		$	1,128,512		$	1,127,806		$	1,092,708			2			4
Federal funds purchased and securities loaned or sold under repurchase agreements		257,218			261,657			250,483			213,532			238,585			(2	)		8
Commercial paper		55,474			50,563			50,577			51,631			51,073			10			9
Other borrowed funds		22,255			21,689			27,298			21,908			29,318			3			(24	)
Trading liabilities:
Debt and equity instruments		71,471			70,812			71,529			66,718			76,592			1			(7	)
Derivative payables		73,462			76,249			74,767			74,977			79,249			(4	)		(7	)
Accounts payable and other liabilities		203,042			207,126			204,148			202,895			199,769			(2	)		2
Beneficial interests issued by consolidated VIEs		57,918			55,053			67,750			65,977			65,971			5			(12	)
Long-term debt		241,140			239,539			255,831			256,775			273,688			1			(12	)

TOTAL LIABILITIES		2,121,591			2,098,574			2,130,895			2,082,219			2,106,953			1			1

STOCKHOLDERS’ EQUITY
Preferred stock		9,058			7,800			7,800			7,800			7,800			16			16
Common stock		4,105			4,105			4,105			4,105			4,105			—			—
Capital surplus		94,431			94,201			94,070			95,602			95,078			—			(1	)
Retained earnings		99,888			95,518			91,888			88,315			85,726			5			17
Accumulated other comprehensive income		4,426			2,272			2,645			944			1,964			95			125
Shares held in RSU Trust, at cost		(38	)		(38	)		(38	)		(38	)		(53	)		—			28
Treasury stock, at cost		(12,177	)		(12,286	)		(11,201	)		(13,155	)		(12,333	)		1			1

TOTAL STOCKHOLDERS’ EQUITY		199,693			191,572			189,269			183,573			182,287			4			10

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,321,284		$	2,290,146		$	2,320,164		$	2,265,792		$	2,289,240			1			1

Page 5

JPMORGAN CHASE & CO.

CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(in millions, except rates)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
AVERAGE BALANCES
ASSETS
Deposits with banks	$	126,605		$	111,441		$	110,817		$	89,145		$	116,062			14	%		9	%	$	116,325		$	76,628			52	%
Federal funds sold and securities purchased under resale agreements		233,576			242,184			230,444			230,494			211,884			(4	)		10			235,393			205,501			15
Securities borrowed		134,980			129,390			133,080			143,745			131,615			4			3			132,493			123,732			7
Trading assets — debt instruments		228,120			235,990			228,397			241,645			257,950			(3	)		(12	)		230,826			272,791			(15	)
Securities		351,733			366,130			369,273			358,698			331,330			(4	)		6			362,341			330,884			10
Loans		723,077			725,252			715,553			706,856			692,794			—			4			721,301			689,030			5
Other assets (a)		31,689			33,240			33,949			37,343			42,760			(5	)		(26	)		32,954			47,095			(30	)

Total interest-earning assets		1,829,780			1,843,627			1,821,513			1,807,926			1,784,395			(1	)		3			1,831,633			1,745,661			5
Trading assets — equity instruments		103,279			110,718			126,938			116,720			119,890			(7	)		(14	)		113,607			133,070			(15	)
Trading assets — derivative receivables		85,303			89,345			90,446			94,925			96,612			(5	)		(12	)		88,353			88,344			—
All other noninterest-earning assets		233,395			222,606			219,979			243,578			229,650			5			2			225,357			209,234			8

TOTAL ASSETS	$	2,251,757		$	2,266,296		$	2,258,876		$	2,263,149		$	2,230,547			(1	)		1		$	2,258,950		$	2,176,309			4


LIABILITIES
Interest-bearing deposits	$	742,570		$	744,103		$	759,084		$	759,422		$	740,901			—			—		$	748,564		$	725,009			3
Federal funds purchased and securities loaned or sold under repurchase agreements		251,071			249,186			233,415			230,355			235,438			1			7			244,582			265,020			(8	)
Commercial paper		52,523			48,791			48,359			44,930			47,027			8			12			49,901			41,886			19
Trading liabilities — debt, short-term borrowings and other liabilities (b)		189,981			203,348			199,588			204,161			215,064			(7	)		(12	)		197,609			207,330			(5	)
Beneficial interests issued by consolidated VIEs		56,609			60,046			65,360			65,322			66,545			(6	)		(15	)		60,657			69,602			(13	)
Long-term debt		231,723			250,494			255,246			269,542			279,235			(7	)		(17	)		245,770			274,145			(10	)

Total interest-bearing liabilities		1,524,477			1,555,968			1,561,052			1,573,732			1,584,210			(2	)		(4	)		1,547,083			1,582,992			(2	)
Noninterest-bearing deposits		355,478			349,143			339,398			337,618			297,610			2			19			348,033			258,319			35
Trading liabilities — equity instruments		16,244			12,096			14,060			8,188			1,948			34			NM			14,141			4,348			225
Trading liabilities — derivative payables		77,851			78,704			76,069			72,965			75,828			(1	)		3			77,543			71,058			9
All other noninterest-bearing liabilities		82,839			81,564			82,786			87,804			88,697			2			(7	)		82,398			79,125			4

TOTAL LIABILITIES		2,056,889			2,077,475			2,073,365			2,080,307			2,048,293			(1	)		—			2,069,198			1,995,842			4

Preferred stock		8,278			7,800			7,800			7,800			7,800			6			6			7,961			7,800			2
Common stockholders’ equity		186,590			181,021			177,711			175,042			174,454			3			7			181,791			172,667			5

TOTAL STOCKHOLDERS’ EQUITY		194,868			188,821			185,511			182,842			182,254			3			7			189,752			180,467			5

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,251,757		$	2,266,296		$	2,258,876		$	2,263,149		$	2,230,547			(1	)		1		$	2,258,950		$	2,176,309			4


AVERAGE RATES (c)
INTEREST-EARNING ASSETS
Deposits with banks		0.41	%		0.49	%		0.55	%		0.75	%		0.63	%								0.48	%		0.75	%
Federal funds sold and securities purchased under resale agreements		0.97			1.07			1.14			1.19			1.28									1.06			1.19
Securities borrowed (d)		(0.05	)		(0.04	)		0.11			0.04			0.05									0.01			0.10
Trading assets — debt instruments		3.81			3.96			4.30			4.22			4.32									4.02			4.28
Securities		2.11			2.42			2.60			2.57			2.66									2.38			2.88
Loans		4.98			4.96			5.14			5.22			5.28									5.02			5.42
Other assets (a)		0.55			0.74			0.83			1.51			1.47									0.71			1.32
Total interest-earning assets		3.01			3.12			3.28			3.34			3.40									3.14			3.57

INTEREST-BEARING LIABILITIES
Interest-bearing deposits		0.34			0.40			0.38			0.43			0.53									0.37			0.56
Federal funds purchased and securities loaned or sold under repurchase agreements		0.22			0.26			0.15			0.18			0.18									0.21			0.22
Commercial paper		0.19			0.18			0.15			0.13			0.16									0.17			0.19
Trading liabilities — debt, short-term borrowings and other liabilities (b)(d)		0.50			0.66			0.61			0.67			1.05									0.59			1.24
Beneficial interests issued by consolidated VIEs		1.09			1.10			1.12			1.06			1.05									1.11			1.14
Long-term debt		2.51			2.47			2.71			2.15			2.10									2.57			2.27
Total interest-bearing liabilities		0.69			0.76			0.78			0.74			0.84									0.75			0.90

INTEREST RATE SPREAD		2.32	%		2.36	%		2.50	%		2.60	%		2.56	%								2.39	%		2.67	%
NET YIELD ON INTEREST-EARNING ASSETS		2.43	%		2.47	%		2.61	%		2.70	%		2.66	%								2.51	%		2.75	%

(a)	Includes margin loans.

(b)	Includes brokerage customer payables.

(c)	Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.

(d)

Negative yield on Securities borrowed was the result of increased client-driven demand for certain securities combined with the impact of low interest rates; the offset of this matched book activity is reflected as lower net interest expense reported within Trading liabilities — debt, short-term borrowings and other liabilities.

Page 6

JPMORGAN CHASE & CO.

CORE NET INTEREST INCOME

(in millions, except ratios)

In addition to reviewing JPMorgan Chase’s net interest income on a managed basis, management also reviews core net interest income to assess the performance of its core lending, investing (including asset/liability management) and deposit-raising activities, excluding the impact of IB’s market-based activities. The core data presented below are non-GAAP financial measures due to the exclusion of IB’s market-based net interest income and the related assets. For a further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 76-78 of JPMorgan Chase’s 2011 Annual Report.


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
CORE NET INTEREST INCOME DATA (a)
Net interest income — managed basis (b)(c)	$	11,176		$	11,341		$	11,837		$	12,288		$	11,950			(1	)%		(6	)%	$	34,354		$	35,931			(4	)%
Impact of market-based net interest income		1,386			1,345			1,569			1,800			1,866			3			(26	)		4,300			5,529			(22	)

Core net interest income (b)	$	9,790		$	9,996		$	10,268		$	10,488		$	10,084			(2	)		(3	)	$	30,054		$	30,402			(1	)

Average interest-earning assets	$	1,829,780		$	1,843,627		$	1,821,513		$	1,807,926		$	1,784,395			(1	)		3		$	1,831,633		$	1,745,661			5
Impact of market-based earning assets		497,469			505,282			490,750			502,312			512,215			(2	)		(3	)		497,832			525,500			(5	)

Core average interest-earning assets	$	1,332,311		$	1,338,345		$	1,330,763		$	1,305,614		$	1,272,180			—			5		$	1,333,801		$	1,220,161			9


Net interest yield on interest - earning assets - managed basis		2.43	%		2.47	%		2.61	%		2.70	%		2.66	%								2.51	%		2.75	%
Net interest yield on market-based activity		1.11			1.07			1.29			1.42			1.45									1.15			1.41
Core net interest yield on interest-earning assets		2.92			3.00			3.10			3.19			3.14									3.01			3.33

(a)	Includes core lending, investing and deposit-raising activities on a managed basis, across Retail Financial Services, Card Services & Auto, Commercial Banking, Treasury & Securities Services, Asset Management, and Corporate/Private Equity, as well as the Investment Bank’s credit portfolio loans.

(b)	Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.

(c)	For a reconciliation of net interest income on a reported and managed basis, see Reconciliation from Reported to Managed Summary on page 8.

Page 7

JPMORGAN CHASE & CO.

RECONCILIATION FROM REPORTED TO MANAGED SUMMARY

(in millions, except ratios)

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 46.

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


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
OTHER INCOME
Other income — reported	$	1,519		$	506		$	1,512		$	369		$	780			200	%		95	%	$	3,537		$	2,236			58	%
Fully taxable-equivalent (“FTE”) adjustments (a)		517			517			534			570			472			—			10			1,568			1,433			9

Other income — managed	$	2,036		$	1,023		$	2,046		$	939		$	1,252			99			63		$	5,105		$	3,669			39


TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	14,170		$	11,034		$	14,386		$	9,340		$	11,946			28			19		$	39,590		$	40,205			(2	)
Fully taxable-equivalent adjustments (a)		517			517			534			570			472			—			10			1,568			1,433			9

Total noninterest revenue — managed	$	14,687		$	11,551		$	14,920		$	9,910		$	12,418			27			18		$	41,158		$	41,638			(1	)


NET INTEREST INCOME
Net interest income — reported	$	10,976		$	11,146		$	11,666		$	12,131		$	11,817			(2	)		(7	)	$	33,788		$	35,558			(5	)
Fully taxable-equivalent adjustments (a)		200			195			171			157			133			3			50			566			373			52

Net interest income — managed	$	11,176		$	11,341		$	11,837		$	12,288		$	11,950			(1	)		(6	)	$	34,354		$	35,931			(4	)


TOTAL NET REVENUE
Total net revenue — reported	$	25,146		$	22,180		$	26,052		$	21,471		$	23,763			13			6		$	73,378		$	75,763			(3	)
Fully taxable-equivalent adjustments (a)		717			712			705			727			605			1			19			2,134			1,806			18

Total net revenue — managed	$	25,863		$	22,892		$	26,757		$	22,198		$	24,368			13			6		$	75,512		$	77,569			(3	)


PRE-PROVISION PROFIT
Pre-provision profit — reported	$	9,775		$	7,214		$	7,707		$	6,931		$	8,229			36			19		$	24,696		$	27,392			(10	)
Fully taxable-equivalent adjustments (a)		717			712			705			727			605			1			19			2,134			1,806			18

Pre-provision profit — managed	$	10,492		$	7,926		$	8,412		$	7,658		$	8,834			32			19		$	26,830		$	29,198			(8	)


INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense — reported	$	7,986		$	7,000		$	6,981		$	4,747		$	5,818			14			37		$	21,967		$	22,002			—
Fully taxable-equivalent adjustments (a)		717			712			705			727			605			1			19			2,134			1,806			18

Income before income tax expense — managed	$	8,703		$	7,712		$	7,686		$	5,474		$	6,423			13			35		$	24,101		$	23,808			1


INCOME TAX EXPENSE
Income tax expense — reported	$	2,278		$	2,040		$	2,057		$	1,019		$	1,556			12			46		$	6,375		$	6,754			(6	)
Fully taxable-equivalent adjustments (a)		717			712			705			727			605			1			19			2,134			1,806			18

Income tax expense — managed	$	2,995		$	2,752		$	2,762		$	1,746		$	2,161			9			39		$	8,509		$	8,560			(1	)


OVERHEAD RATIO
Overhead ratio — reported		61	%		67	%		70	%		68	%		65	%								66	%		64	%
Overhead ratio — managed		59			65			69			66			64									64			62

(a)	Predominantly recognized in Investment Bank and Commercial Banking business segments and Corporate/Private Equity.

Page 8

JPMORGAN CHASE & CO.

LINE OF BUSINESS FINANCIAL HIGHLIGHTS — MANAGED BASIS

(in millions)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
TOTAL NET REVENUE (FTE)
Investment Bank (a)	$	6,277		$	6,766		$	7,321		$	4,358		$	6,369			(7	)%		(1	)%	$	20,364		$	21,916			(7	)%
Retail Financial Services		8,013			7,935			7,649			6,395			7,535			1			6			23,597			20,143			17
Card Services & Auto		4,723			4,525			4,714			4,814			4,775			4			(1	)		13,962			14,327			(3	)
Commercial Banking		1,732			1,691			1,657			1,687			1,588			2			9			5,080			4,731			7
Treasury & Securities Services		2,029			2,152			2,014			2,022			1,908			(6	)		6			6,195			5,680			9
Asset Management		2,459			2,364			2,370			2,284			2,316			4			6			7,193			7,259			(1	)
Corporate/Private Equity (a)		630			(2,541	)		1,032			638			(123	)		NM			NM			(879	)		3,513			NM

TOTAL NET REVENUE	$	25,863		$	22,892		$	26,757		$	22,198		$	24,368			13			6		$	75,512		$	77,569			(3	)


TOTAL NONINTEREST EXPENSE
Investment Bank	$	3,907		$	3,802		$	4,738		$	2,969		$	3,799			3			3		$	12,447		$	13,147			(5	)
Retail Financial Services		5,039			4,726			5,009			4,722			4,565			7			10			14,774			14,736			—
Card Services & Auto		1,920			2,096			2,029			2,025			2,115			(8	)		(9	)		6,045			6,020			—
Commercial Banking		601			591			598			579			573			2			5			1,790			1,699			5
Treasury & Securities Services		1,443			1,491			1,473			1,563			1,470			(3	)		(2	)		4,407			4,300			2
Asset Management		1,731			1,701			1,729			1,752			1,796			2			(4	)		5,161			5,250			(2	)
Corporate/Private Equity		730			559			2,769			930			1,216			31			(40	)		4,058			3,219			26

TOTAL NONINTEREST EXPENSE	$	15,371		$	14,966		$	18,345		$	14,540		$	15,534			3			(1	)	$	48,682		$	48,371			1


PRE-PROVISION PROFIT/(LOSS)
Investment Bank (a)	$	2,370		$	2,964		$	2,583		$	1,389		$	2,570			(20	)		(8	)	$	7,917		$	8,769			(10	)
Retail Financial Services		2,974			3,209			2,640			1,673			2,970			(7	)		—			8,823			5,407			63
Card Services & Auto		2,803			2,429			2,685			2,789			2,660			15			5			7,917			8,307			(5	)
Commercial Banking		1,131			1,100			1,059			1,108			1,015			3			11			3,290			3,032			9
Treasury & Securities Services		586			661			541			459			438			(11	)		34			1,788			1,380			30
Asset Management		728			663			641			532			520			10			40			2,032			2,009			1
Corporate/Private Equity (a)		(100	)		(3,100	)		(1,737	)		(292	)		(1,339	)		97			93			(4,937	)		294			NM

PRE-PROVISION PROFIT	$	10,492		$	7,926		$	8,412		$	7,658		$	8,834			32			19		$	26,830		$	29,198			(8	)


PROVISION FOR CREDIT LOSSES
Investment Bank	$	(48	)	$	21		$	(5	)	$	272		$	54			NM			NM		$	(32	)	$	(558	)		94
Retail Financial Services		631			(555	)		(96	)		779			1,027			NM			(39	)		(20	)		3,220			NM
Card Services & Auto		1,231			734			738			1,060			1,264			68			(3	)		2,703			2,561			6
Commercial Banking		(16	)		(17	)		77			40			67			6			NM			44			168			(74	)
Treasury & Securities Services		(12	)		8			2			19			(20	)		NM			40			(2	)		(18	)		89
Asset Management		14			34			19			24			26			(59	)		(46	)		67			43			56
Corporate/Private Equity		(11	)		(11	)		(9	)		(10	)		(7	)		—			(57	)		(31	)		(26	)		(19	)

PROVISION FOR CREDIT LOSSES	$	1,789		$	214		$	726		$	2,184		$	2,411			NM			(26	)	$	2,729		$	5,390			(49	)


NET INCOME/(LOSS)
Investment Bank	$	1,572		$	1,913		$	1,682		$	726		$	1,636			(18	)		(4	)	$	5,167		$	6,063			(15	)
Retail Financial Services		1,408			2,267			1,753			533			1,161			(38	)		21			5,428			1,145			374
Card Services & Auto		954			1,030			1,183			1,051			849			(7	)		12			3,167			3,493			(9	)
Commercial Banking		690			673			591			643			571			3			21			1,954			1,724			13
Treasury & Securities Services		420			463			351			250			305			(9	)		38			1,234			954			29
Asset Management		443			391			386			302			385			13			15			1,220			1,290			(5	)
Corporate/Private Equity		221			(1,777	)		(1,022	)		223			(645	)		NM			NM			(2,578	)		579			NM

TOTAL NET INCOME	$	5,708		$	4,960		$	4,924		$	3,728		$	4,262			15			34		$	15,592		$	15,248			2

(a)

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

Page 9

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,429		$	1,245		$	1,375		$	1,119		$	1,039			15	%		38	%	$	4,049		$	4,740			(15	)%
Principal transactions (a)		2,260			3,063			3,210			364			2,253			(26	)		—			8,533			7,960			7
Asset management, administration and commissions		474			499			565			477			563			(5	)		(16	)		1,538			1,730			(11	)
All other income (b)		307			235			268			309			438			31			(30	)		810			1,272			(36	)

Noninterest revenue		4,470			5,042			5,418			2,269			4,293			(11	)		4			14,930			15,702			(5	)
Net interest income		1,807			1,724			1,903			2,089			2,076			5			(13	)		5,434			6,214			(13	)

TOTAL NET REVENUE (c)		6,277			6,766			7,321			4,358			6,369			(7	)		(1	)		20,364			21,916			(7	)

Provision for credit losses		(48	)		21			(5	)		272			54			NM			NM			(32	)		(558	)		94

NONINTEREST EXPENSE
Compensation expense		2,069			2,011			2,901			1,172			1,850			3			12			6,981			7,708			(9	)
Noncompensation expense		1,838			1,791			1,837			1,797			1,949			3			(6	)		5,466			5,439			—

TOTAL NONINTEREST EXPENSE		3,907			3,802			4,738			2,969			3,799			3			3			12,447			13,147			(5	)


Income before income tax expense		2,418			2,943			2,588			1,117			2,516			(18	)		(4	)		7,949			9,327			(15	)
Income tax expense		846			1,030			906			391			880			(18	)		(4	)		2,782			3,264			(15	)

NET INCOME	$	1,572		$	1,913		$	1,682		$	726		$	1,636			(18	)		(4	)	$	5,167		$	6,063			(15	)


FINANCIAL RATIOS
ROE (d)		16	%		19	%		17	%		7	%		16	%								17	%		20	%
ROA		0.80			0.97			0.86			0.36			0.81									0.88			0.99
Overhead ratio		62			56			65			68			60									61			60
Compensation expense as a percent of total net revenue (e)		33			30			40			27			29									34			35

REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	389		$	356		$	281		$	397		$	365			9			7		$	1,026		$	1,395			(26	)
Equity underwriting		235			250			276			169			178			(6	)		32			761			1,012			(25	)
Debt underwriting		805			639			818			553			496			26			62			2,262			2,333			(3	)

Total investment banking fees		1,429			1,245			1,375			1,119			1,039			15			38			4,049			4,740			(15	)
Fixed income markets (f)		3,685			3,734			4,664			2,491			3,328			(1	)		11			12,083			12,846			(6	)
Equity markets (g)		1,073			1,243			1,294			779			1,424			(14	)		(25	)		3,610			4,053			(11	)
Credit portfolio (b)(h)		90			544			(12	)		(31	)		578			(83	)		(84	)		622			277			125

Total net revenue	$	6,277		$	6,766		$	7,321		$	4,358		$	6,369			(7	)		(1	)	$	20,364		$	21,916			(7	)

(a)

Principal transactions included debit valuation adjustments (“DVA”) related to derivatives and structured liabilities measured at fair value. DVA gains/(losses) were ($211) million, $755 million, ($907) million, ($567) million and $1.9 billion for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and ($363) million and $2.0 billion for the nine months ended September 30, 2012 and 2011, respectively.

(b)

All other income includes lending- and deposit-related fees. In addition, IB manages traditional credit exposures related to Global Corporate Bank (“GCB”) on behalf of IB and TSS, and IB and TSS share the economics related to the Firm’s GCB clients. IB recognizes this sharing agreement also within all other income.

(c)

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 $492 million, $494 million, $509 million, $510 million and $440 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $1.5 billion and $1.4 billion for the nine months ended September 30, 2012 and 2011, respectively.

(d)

Return on equity excluding DVA, a non-GAAP financial measure, was 17%, 15%, 23%, 11% and 5% for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and 18% and 16% for the nine months ended September 30, 2012 and 2011, respectively. Management uses this measure to assess the underlying performance of the business and for comparability with peers.

(e)

Compensation expense as a percentage of total net revenue excluding DVA, a non-GAAP financial measure, was 32%, 33%, 35%, 24% and 41% for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and 34% and 39% for the nine months ended September 30, 2012 and 2011, respectively. Management uses this measure to assess the underlying performance of the business and for comparability with peers.

(f)

Fixed income markets primarily includes revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets. Included DVA gains/(losses) of ($41) million, $241 million, ($352) million, ($135) million and $529 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and ($152) million and $688 million for the nine months ended September 30, 2012 and 2011, respectively. On July 2, 2012, the Chief Investment Office (“CIO”) transferred its synthetic credit portfolio, other than a portion aggregating to approximately $12 billion of notional, to the IB; and in the third quarter of 2012, IB’s portion experienced a modest loss.

(g)

Equity markets primarily includes revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and Prime Services. Included DVA gains/(losses) of $29 million, $200 million, ($130) million, ($27) million and $377 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $99 million and $383 million for the nine months ended September 30, 2012 and 2011, respectively.

(h)

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. Included DVA gains/(losses) of ($199) million, $314 million, ($425) million, ($405) million and $979 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and ($310) million and $933 million for the nine months ended September 30, 2012 and 2011, respectively.

Page 10

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except headcount and ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	838,753		$	829,655		$	812,959		$	776,430		$	824,733			1	%		2	%	$	838,753		$	824,733			2	%
Loans:
Loans retained (a)		67,383			72,159			67,213			68,208			58,163			(7	)		16			67,383			58,163			16
Loans held-for-sale and loans at fair value		3,803			2,278			5,451			2,915			2,311			67			65			3,803			2,311			65

Total loans		71,186			74,437			72,664			71,123			60,474			(4	)		18			71,186			60,474			18
Equity		40,000			40,000			40,000			40,000			40,000			—			—			40,000			40,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	778,475		$	792,628		$	789,569		$	790,644		$	803,667			(2	)		(3	)	$	786,860		$	820,239			(4	)
Trading assets — debt and equity instruments		295,546			304,203			313,267			313,005			329,984			(3	)		(10	)		304,307			357,735			(15	)
Trading assets — derivative receivables		74,818			74,965			76,225			76,786			79,044			—			(5	)		75,334			71,993			5
Loans:
Loans retained (a)		70,569			70,837			66,710			62,698			57,265			—			23			69,377			55,089			26
Loans held-for-sale and loans at fair value		2,712			3,158			2,767			2,082			2,431			(14	)		12			2,878			3,468			(17	)

Total loans		73,281			73,995			69,477			64,780			59,696			(1	)		23			72,255			58,557			23
Adjusted assets (b)		553,187			560,356			559,566			564,158			597,513			(1	)		(7	)		557,687			612,292			(9	)
Equity		40,000			40,000			40,000			40,000			40,000			—			—			40,000			40,000			—

Headcount		25,884			26,553			25,707			25,999			26,615			(3	)		(3	)		25,884			26,615			(3	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(16	)	$	(10	)	$	(35	)	$	199		$	(168	)		(60	)		90		$	(61	)	$	(38	)		(61	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(c)		581			657			695			1,035			1,274			(12	)		(54	)		581			1,274			(54	)
Nonaccrual loans held-for-sale and loans at fair value		213			158			182			166			150			35			42			213			150			42

Total nonaccrual loans		794			815			877			1,201			1,424			(3	)		(44	)		794			1,424			(44	)

Derivative receivables (d)		282			451			317			293			281			(37	)		—			282			281			—
Assets acquired in loan satisfactions		77			68			79			79			77			13			—			77			77			—

Total nonperforming assets		1,153			1,334			1,273			1,573			1,782			(14	)		(35	)		1,153			1,782			(35	)
Allowance for credit losses:
Allowance for loan losses		1,385			1,419			1,386			1,436			1,337			(2	)		4			1,385			1,337			4
Allowance for lending-related commitments		535			533			530			418			444			—			20			535			444			20

Total allowance for credit losses		1,920			1,952			1,916			1,854			1,781			(2	)		8			1,920			1,781			8

Net charge-off/(recovery) rate (a)		(0.09	)%		(0.06	)%		(0.21	)%		1.26	%		(1.16	)%								(0.12	)%		(0.09	)%
Allow. for loan losses to period-end loans retained (a)		2.06			1.97			2.06			2.11			2.30									2.06			2.30
Allow. for loan losses to nonaccrual loans retained (a)(c)		238			216			199			139			105									238			105
Nonaccrual loans to total period-end loans		1.12			1.09			1.21			1.69			2.35									1.12			2.35

(a)	Loans retained includes credit portfolio loans, leveraged leases and other held-for-investment loans.

(b)	Adjusted assets, a non-GAAP financial measure, is presented to assist the reader in comparing IB’s asset and capital levels with those of other investment banks in the securities industry. For further discussion of adjusted assets, see page 46.

(c)	Allowance for loan losses of $177 million, $201 million, $225 million, $263 million and $320 million was held against these nonaccrual loans at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively.

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

Page 11

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and rankings data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
MARKET RISK—95% CONFIDENCE LEVEL AVERAGE TRADING AND CREDIT PORTFOLIO VAR
Trading activities:
Fixed income	$	118	(i)	$	66		$	60		$	56		$	48			79	%		146	%	$	81		$	47			72	%
Foreign exchange		10			10			11			12			10			—			—			10			10			—
Equities		19			20			17			19			19			(5	)		—			19			24			(21	)
Commodities and other		13			13			21			20			15			—			(13	)		16			15			7
Diversification benefit to trading VaR (a)		(48	)		(44	)		(46	)		(50	)		(39	)		(9	)		(23	)		(46	)		(38	)		(21	)

Total trading VaR (b)		112			65			63			57			53			72			111			80			58			38

Credit portfolio VaR (c)		22			25			32			39			38			(12	)		(42	)		26			30			(13	)
Diversification benefit to trading and credit portfolio VaR (a)		(12	)		(15	)		(14	)		(21	)		(21	)		20			43			(13	)		(11	)		(18	)

Total trading and credit portfolio VaR	$	122	(i)	$	75		$	81		$	75		$	70			63			74		$	93		$	77			21



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

(a)	Average portfolio VaR was less than the sum of the VaR of the components described above, due to portfolio diversification. The diversification effect reflected the fact that the risks were not perfectly correlated.

(b)

Trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in IB, including the credit spread sensitivities of certain mortgage products and syndicated lending facilities that the Firm intends to distribute; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. Trading VaR does not include the DVA 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 the fair value of 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 reported at fair value.

(d)

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

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

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

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

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

(i)

On July 2, 2012, CIO transferred its synthetic credit portfolio, other than a portion aggregating to approximately $12 billion of notional, to the IB. During the third quarter of 2012, the Firm applied a new VaR model to calculate VaR for the synthetic credit portfolio. The Firm believes this new model, which was applied to both the portion of the synthetic credit portfolio held by the IB, as well as the portion that was retained by CIO, more appropriately captures the risk of the portfolio. This new VaR model resulted in a reduction to the average fixed income and average total trading and credit portfolio VaR of $26 million and $28 million, respectively, for the three months ended September 30, 2012.

Page 12

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions)


	QUARTERLY TRENDS																NINE MONTHS ENDED SEPTEMBER 30,
											3Q12 Change										2012 Change
	3Q12		2Q12		1Q12		4Q11		3Q11		2Q12			3Q11			2012		2011		2011
INTERNATIONAL METRICS
Total net revenue: (a)
Europe/Middle East/Africa	$	1,766	$	2,106	$	2,400	$	1,353	$	1,995		(16	)%		(11	)%	$	6,272	$	7,065		(11	)%
Asia/Pacific		675		662		758		502		948		2			(29	)		2,095		2,832		(26	)
Latin America/Caribbean		313		304		339		240		175		3			79			956		839		14
North America		3,523		3,694		3,824		2,263		3,251		(5	)		8			11,041		11,180		(1	)

Total net revenue	$	6,277	$	6,766	$	7,321	$	4,358	$	6,369		(7	)		(1	)	$	20,364	$	21,916		(7	)

Loans (period-end): (b)
Europe/Middle East/Africa	$	16,656	$	18,804	$	16,358	$	15,905	$	15,361		(11	)		8		$	16,656	$	15,361		8
Asia/Pacific		8,451		8,268		7,969		7,889		6,892		2			23			8,451		6,892		23
Latin America/Caribbean		3,970		4,195		3,764		3,148		3,222		(5	)		23			3,970		3,222		23
North America		38,306		40,892		39,122		41,266		32,688		(6	)		17			38,306		32,688		17

Total loans	$	67,383	$	72,159	$	67,213	$	68,208	$	58,163		(7	)		16		$	67,383	$	58,163		16

(a)	Regional revenue is 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 client.

Page 13

JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	791		$	777		$	748		$	808		$	833			2	%		(5	)%	$	2,316		$	2,382			(3	)%
Asset management, administration and commissions		501			522			527			494			513			(4	)		(2	)		1,550			1,497			4
Mortgage fees and related income		2,376			2,265			2,008			723			1,380			5			72			6,649			1,991			234
Credit card income		344			344			315			305			611			—			(44	)		1,003			1,720			(42	)
Other income		129			126			126			107			136			2			(5	)		381			378			1

Noninterest revenue		4,141			4,034			3,724			2,437			3,473			3			19			11,899			7,968			49
Net interest income		3,872			3,901			3,925			3,958			4,062			(1	)		(5	)		11,698			12,175			(4	)

TOTAL NET REVENUE		8,013			7,935			7,649			6,395			7,535			1			6			23,597			20,143			17
Provision for credit losses		631			(555	)		(96	)		779			1,027			NM			(39	)		(20	)		3,220			NM

NONINTEREST EXPENSE
Compensation expense		2,324			2,298			2,305			2,130			2,101			1			11			6,927			5,914			17
Noncompensation expense		2,664			2,378			2,653			2,534			2,404			12			11			7,695			8,642			(11	)
Amortization of intangibles		51			50			51			58			60			2			(15	)		152			180			(16	)

TOTAL NONINTEREST EXPENSE		5,039			4,726			5,009			4,722			4,565			7			10			14,774			14,736			—


Income before income tax expense		2,343			3,764			2,736			894			1,943			(38	)		21			8,843			2,187			304
Income tax expense		935			1,497			983			361			782			(38	)		20			3,415			1,042			228

NET INCOME	$	1,408		$	2,267		$	1,753		$	533		$	1,161			(38	)		21		$	5,428		$	1,145			374


FINANCIAL RATIOS
ROE		21	%		34	%		27	%		8	%		18	%								27	%		6	%
Overhead ratio		63			60			65			74			61									63			73
Overhead ratio excluding core deposit intangibles (a)		62			59			65			73			60									62			72

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	259,238		$	264,320		$	269,442		$	274,795		$	276,799			(2	)		(6	)	$	259,238		$	276,799			(6	)
Loans:
Loans retained		217,212			222,773			227,491			232,555			235,572			(2	)		(8	)		217,212			235,572			(8	)
Loans held-for-sale and loans at fair value (b)		15,250			14,254			12,496			12,694			13,153			7			16			15,250			13,153			16

Total loans		232,462			237,027			239,987			245,249			248,725			(2	)		(7	)		232,462			248,725			(7	)
Deposits		420,075			413,571			413,901			395,797			388,735			2			8			420,075			388,735			8
Equity		26,500			26,500			26,500			25,000			25,000			—			6			26,500			25,000			6

SELECTED BALANCE SHEET DATA (average)
Total assets		264,007			268,507			271,973			278,497			283,443			(2	)		(7	)		268,147			289,486			(7	)
Loans:
Loans retained		220,106			225,144			230,170			233,958			238,273			(2	)		(8	)		225,122			244,204			(8	)
Loans held-for-sale and loans at fair value (b)		17,879			17,694			15,621			16,680			16,608			1			8			17,068			16,243			5

Total loans		237,985			242,838			245,791			250,638			254,881			(2	)		(7	)		242,190			260,447			(7	)
Deposits		414,608			409,256			399,561			389,519			382,202			1			8			407,833			377,678			8
Equity		26,500			26,500			26,500			25,000			25,000			—			6			26,500			25,000			6

Headcount		132,067			134,380			134,321			133,075			128,992			(2	)		2			132,067			128,992			2

(a)

Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excluded Consumer & Business Banking’s CDI amortization expense related to prior business combination transactions of $51 million, $50 million, $51 million, $58 million and $60 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $152 million and $180 million for the nine months ended September 30, 2012 and 2011, respectively.

(b)	Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets.

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FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (a)	$	1,531		$	795		$	904		$	1,009		$	1,027			93	%		49	%	$	3,230		$	3,295			(2	)%
Nonaccrual loans:
Nonaccrual loans retained		9,154			7,835			8,191			7,170			7,579			17			21			9,154			7,579			21
Nonaccrual loans held-for-sale and loans at fair value		89			98			101			103			132			(9	)		(33	)		89			132			(33	)

Total nonaccrual loans (b)(c)(d)(e)		9,243			7,933			8,292			7,273			7,711			17			20			9,243			7,711			20
Nonperforming assets (b)(c)(d)(e)		9,901			8,645			9,109			8,064			8,576			15			15			9,901			8,576			15
Allowance for loan losses		11,997			12,897			14,247			15,247			15,479			(7	)		(22	)		11,997			15,479			(22	)

Net charge-off rate (a)(f)		2.77	%		1.42	%		1.58	%		1.71	%		1.71	%								1.92	%		1.80	%
Net charge-off rate excluding purchased credit-impaired (“PCI”) loans (a)(f)		3.85			1.98			2.20			2.39			2.39									2.67			2.53
Allowance for loan losses to ending loans retained		5.52			5.79			6.26			6.56			6.57									5.52			6.57
Allowance for loan losses to ending loans retained excluding PCI loans (g)		4.03			4.49			5.22			5.71			6.26									4.03			6.26
Allowance for loan losses to nonaccrual loans retained (b)(e)(g)		69			92			104			133			139									69			139
Nonaccrual loans to total loans (e)		3.98			3.35			3.46			2.97			3.10									3.98			3.10
Nonaccrual loans to total loans excluding PCI loans (b)(e)		5.40			4.55			4.71			4.05			4.25									5.40			4.25

(a)

Net charge-offs and net charge-off rates for the three and nine months ended September 30, 2012 included an incremental $825 million reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be charged off to their collateral value, regardless of their delinquency status. Excluding these incremental charge-offs, net charge-offs for the third quarter of 2012 would have been $706 million and the net charge-off rate for the same period excluding these incremental charge-offs and purchased credit-impaired loans would have been 1.77%.

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

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

(d)

(e)

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

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

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JPMORGAN CHASE & CO.

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FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
CONSUMER & BUSINESS BANKING
Noninterest revenue	$	1,653		$	1,646		$	1,585		$	1,603		$	1,952			—	%		(15	)%	$	4,884		$	5,598			(13	)%
Net interest income		2,685			2,680			2,675			2,714			2,730			—			(2	)		8,040			8,095			(1	)

Total net revenue		4,338			4,326			4,260			4,317			4,682			—			(7	)		12,924			13,693			(6	)
Provision for credit losses		107			(2	)		96			132			126			NM			(15	)		201			287			(30	)
Noninterest expense		2,916			2,742			2,866			2,848			2,842			6			3			8,524			8,354			2

Income before income tax expense		1,315			1,586			1,298			1,337			1,714			(17	)		(23	)		4,199			5,052			(17	)

Net income	$	785		$	946		$	774		$	802		$	1,023			(17	)		(23	)	$	2,505		$	3,014			(17	)


Overhead ratio		67	%		63	%		67	%		66	%		61	%								66	%		61	%
Overhead ratio excluding core deposit intangibles (a)		66			62			66			65			59									65			60

BUSINESS METRICS
Business banking origination volume	$	1,685		$	1,787		$	1,540		$	1,389		$	1,440			(6	)		17		$	5,012		$	4,438			13
End-of-period loans		18,568			18,218			17,822			17,652			17,272			2			8			18,568			17,272			8
End-of-period deposits:
Checking		159,527			156,449			159,075			147,779			142,064			2			12			159,527			142,064			12
Savings		208,272			203,910			200,662			191,891			186,733			2			12			208,272			186,733			12
Time and other		32,781			34,403			35,642			36,743			39,017			(5	)		(16	)		32,781			39,017			(16	)

Total end-of-period deposits		400,580			394,762			395,379			376,413			367,814			1			9			400,580			367,814			9
Average loans		18,279			17,934			17,667			17,363			17,172			2			6			17,961			17,039			5
Average deposits:
Checking		153,982			151,733			147,455			140,672			137,033			1			12			151,067			135,200			12
Savings		206,298			202,685			197,199			189,553			184,590			2			12			202,076			180,240			12
Time and other		33,470			35,096			36,121			37,708			40,588			(5	)		(18	)		34,891			42,876			(19	)

Total average deposits		393,750			389,514			380,775			367,933			362,211			1			9			388,034			358,316			8
Deposit margin		2.56	%		2.62	%		2.68	%		2.76	%		2.82	%								2.62	%		2.85	%
Average assets	$	30,625		$	30,275		$	30,857		$	30,373		$	30,074			1			2		$	30,585		$	29,513			4

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs		107			98			96			132			126			9			(15	)		301			362			(17	)
Net charge-off rate		2.33	%		2.20	%		2.19	%		3.02	%		2.91	%								2.24	%		2.85	%
Allowance for loan losses	$	698		$	698		$	798		$	798		$	800			—			(13	)	$	698		$	800			(13	)
Nonperforming assets		532			597			663			710			773			(11	)		(31	)		532			773			(31	)

RETAIL BRANCH BUSINESS METRICS
Investment sales volume		6,280			6,171			6,598			4,696			5,102			2			23			19,049			18,020			6
Client investment assets		154,637			147,641			147,083			137,853			132,255			5			17			154,637			132,255			17
% managed accounts		28	%		26	%		26	%		24	%		23	%								28	%		23	%

Number of:
Branches		5,596			5,563			5,541			5,508			5,396			1			4			5,596			5,396			4
Chase Private Client branch locations		960			738			366			262			139			30			NM			960			139			NM
ATMs		18,485			18,132			17,654			17,235			16,708			2			11			18,485			16,708			11
Personal bankers		23,622			24,052			24,198			24,308			24,205			(2	)		(2	)		23,622			24,205			(2	)
Sales specialists		6,205			6,179			6,110			6,017			5,639			—			10			6,205			5,639			10
Client advisors		3,034			3,075			3,131			3,201			3,177			(1	)		(5	)		3,034			3,177			(5	)
Active online customers (in thousands)		18,225			17,929			17,915			17,334			17,326			2			5			18,225			17,326			5
Active mobile customers (in thousands)		9,799			9,075			8,570			8,391			7,234			8			35			9,799			7,234			35
Chase Private Clients		75,766			50,649			32,857			21,723			11,711			50			NM			75,766			11,711			NM
Checking accounts (in thousands)		27,669			27,384			27,034			26,626			26,541			1			4			27,669			26,541			4

(a)	Consumer & Business Banking uses the overhead ratio (excluding the amortization of CDI), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. See footnote (a) on page 14 for further details.

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JPMORGAN CHASE & CO.

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FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
MORTGAGE PRODUCTION AND SERVICING
Mortgage fees and related income	$	2,376		$	2,265		$	2,008		$	723		$	1,380			5	%		72	%	$	6,649		$	1,991			234	%
Other noninterest revenue		103			110			123			124			118			(6	)		(13	)		336			328			2
Net interest income		190			194			177			171			204			(2	)		(7	)		561			599			(6	)

Total net revenue		2,669			2,569			2,308			1,018			1,702			4			57			7,546			2,918			159
Provision for credit losses		4			1			—			1			2			300			100			5			4			25
Noninterest expense		1,737			1,572			1,724			1,442			1,360			10			28			5,033			5,293			(5	)

Income/(loss) before income tax expense/(benefit)		928			996			584			(425	)		340			(7	)		173			2,508			(2,379	)		NM

Net income/(loss)	$	563		$	604		$	461		$	(258	)	$	205			(7	)		175		$	1,628		$	(1,574	)		NM

Overhead ratio		65	%		61	%		75	%		142	%		80	%								67	%		181	%
FUNCTIONAL RESULTS
Production
Production revenue	$	1,582		$	1,362		$	1,432		$	859		$	1,090			16			45		$	4,376		$	2,536			73
Production-related net interest & other income		196			199			187			210			213			(2	)		(8	)		582			630			(8	)

Production-related revenue, excl. repurchase losses		1,778			1,561			1,619			1,069			1,303			14			36			4,958			3,166			57
Production expense		678			620			573			518			496			9			37			1,871			1,377			36

Income, excluding repurchase losses		1,100			941			1,046			551			807			17			36			3,087			1,789			73
Repurchase losses		(13	)		(10	)		(302	)		(390	)		(314	)		(30	)		96			(325	)		(957	)		66

Income before income tax expense		1,087			931			744			161			493			17			120			2,762			832			232
Servicing
Loan servicing revenue		946			1,004			1,039			1,032			1,039			(6	)		(9	)		2,989			3,102			(4	)
Servicing-related net interest & other income		98			108			112			90			115			(9	)		(15	)		318			300			6

Servicing-related revenue		1,044			1,112			1,151			1,122			1,154			(6	)		(10	)		3,307			3,402			(3	)
MSR asset modeled amortization		(290	)		(327	)		(351	)		(406	)		(457	)		11			37			(968	)		(1,498	)		35
Default servicing expense (a)		819			705			890			702			585			16			40			2,414			3,112			(22	)
Core servicing expense (a)		244			248			261			223			281			(2	)		(13	)		753			808			(7	)

Income/(loss), excluding MSR risk management		(309	)		(168	)		(351	)		(209	)		(169	)		(84	)		(83	)		(828	)		(2,016	)		59
MSR risk management, including related net interest income/(expense)		150			233			191			(377	)		16			(36	)		NM			574			(1,195	)		NM

Income/(loss) before income tax expense/(benefit)		(159	)		65			(160	)		(586	)		(153	)		NM			(4	)		(254	)		(3,211	)		92

Net Income/(loss)	$	563		$	604		$	461		$	(258	)	$	205			(7	)		175		$	1,628		$	(1,574	)		NM

SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS
Net production revenue:
Production revenue	$	1,582		$	1,362		$	1,432		$	859		$	1,090			16			45		$	4,376		$	2,536			73
Repurchase losses		(13	)		(10	)		(302	)		(390	)		(314	)		(30	)		96			(325	)		(957	)		66

Net production revenue		1,569			1,352			1,130			469			776			16			102			4,051			1,579			157
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue		946			1,004			1,039			1,032			1,039			(6	)		(9	)		2,989			3,102			(4	)
Changes in MSR asset fair value due to modeled amortization		(290	)		(327	)		(351	)		(406	)		(457	)		11			37			(968	)		(1,498	)		35

Total operating revenue		656			677			688			626			582			(3	)		13			2,021			1,604			26
Risk management:
Changes in MSR asset fair value due to market interest rates		(323	)		(1,193	)		644			(263	)		(4,574	)		73			93			(872	)		(5,127	)		83
Other changes in MSR asset fair value due to inputs or assumptions in model (b)		(5	)		76			(48	)		(569	)		—			NM			NM			23			(1,158	)		NM
Derivative valuation adjustments and other		479			1,353			(406	)		460			4,596			(65	)		(90	)		1,426			5,093			(72	)

Total risk management		151			236			190			(372	)		22			(36	)		NM			577			(1,192	)		NM

Total net mortgage servicing revenue		807			913			878			254			604			(12	)		34			2,598			412			NM

Mortgage fees and related income	$	2,376		$	2,265		$	2,008		$	723		$	1,380			5			72		$	6,649		$	1,991			234

(a)	Default and core servicing expense included an aggregate of approximately $300 million and $1.7 billion for foreclosure-related matters for the nine months ended September 30, 2012 and September 30, 2011, respectively.

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

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JPMORGAN CHASE & CO.

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FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
MORTGAGE PRODUCTION AND SERVICING (continued)
SELECTED BALANCE SHEET DATA
End-of-period loans:
Prime mortgage, including option ARMs (a)	$	17,153		$	17,454		$	17,268		$	16,891		$	14,800			(2	)%		16	%	$	17,153		$	14,800			16	%
Loans held-for-sale and loans at fair value (b)		15,250			14,254			12,496			12,694			13,153			7			16			15,250			13,153			16
Average loans:
Prime mortgage, including option ARMs (a)		17,381			17,478			17,238			15,733			14,451			(1	)		20			17,366			14,192			22
Loans held-for-sale and loans at fair value (b)		17,879			17,694			15,621			16,680			16,608			1			8			17,068			16,243			5
Average assets		59,769			60,534			58,862			60,473			59,677			(1	)		—			59,722			59,695			—
Repurchase liability (ending)		2,779			2,997			3,213			3,213			3,213			(7	)		(14	)		2,779			3,213			(14	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Prime mortgage, including option ARMs		4			1			—			1			2			300			100			5			4			25
Net charge-off rate:
Prime mortgage, including option ARMs		0.09	%		0.02	%		—	%		0.03	%		0.06	%								0.04	%		0.04	%
30+ day delinquency rate (c)		3.10			3.00			3.01			3.15			3.35									3.10			3.35
Nonperforming assets (d)	$	700		$	708		$	708		$	716		$	691			(1	)		1		$	700		$	691			1

BUSINESS METRICS (in billions)
Origination volume by channel
Retail		25.5			26.1			23.4			23.1			22.4			(2	)		14			75.0			64.1			17
Wholesale (e)		—			0.2			—			0.1			0.1			NM			NM			0.2			0.4			(50	)
Correspondent (e)		20.1			16.5			14.2			14.9			13.4			22			50			50.8			37.2			37
CNT (negotiated transactions)		1.7			1.1			0.8			0.5			0.9			55			89			3.6			5.3			(32	)

Total origination volume		47.3			43.9			38.4			38.6			36.8			8			29			129.6			107.0			21


Application volume by channel
Retail		44.7			43.1			40.0			34.6			37.7			4			19			127.8			102.6			25
Wholesale (e)		0.2			0.1			0.2			0.2			0.2			100			—			0.5			0.8			(38	)
Correspondent (e)		28.3			23.7			19.7			17.8			20.2			19			40			71.7			48.7			47

Total application volume		73.2			66.9			59.9			52.6			58.1			9			26			200.0			152.1			31


Third-party mortgage loans serviced (ending)		814.8			860.0			884.2			902.2			924.5			(5	)		(12	)		814.8			924.5			(12	)
Third-party mortgage loans serviced (average)		828.6			866.7			892.6			913.2			931.4			(4	)		(11	)		862.6			945.7			(9	)
MSR net carrying value (ending)		7.1			7.1			8.0			7.2			7.8			—			(9	)		7.1			7.8			(9	)
Ratio of MSR net carrying value (ending) to third-partymortgage loans serviced (ending)		0.87	%		0.83	%		0.90	%		0.80	%		0.84	%								0.87	%		0.84	%
Ratio of annualized loan servicing-related revenue to third-partymortgage loans serviced (average)		0.46			0.47			0.47			0.45			0.44									0.46			0.44
MSR revenue multiple (f)		1.89	x		1.77	x		1.91	x		1.78	x		1.91	x								1.89	x		1.91	x

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

(b)	Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets.

(c)

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

(d)

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

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

Page 18

JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	9		$	13		$	8		$	(13	)	$	23			(31	)%		(61	)%	$	30		$	51			(41	)%
Net interest income		997			1,027			1,073			1,073			1,128			(3	)		(12	)		3,097			3,481			(11	)

Total net revenue		1,006			1,040			1,081			1,060			1,151			(3	)		(13	)		3,127			3,532			(11	)
Provision for credit losses		520			(554	)		(192	)		646			899			NM			(42	)		(226	)		2,929			NM
Noninterest expense		386			412			419			432			363			(6	)		6			1,217			1,089			12

Income/(loss) before income tax expense/(benefit)		100			1,182			854			(18	)		(111	)		(92	)		NM			2,136			(486	)		NM

Net income/(loss)	$	60		$	717		$	518		$	(11	)	$	(67	)		(92	)		NM		$	1,295		$	(295	)		NM


Overhead ratio		38	%		40	%		39	%		41	%		32	%								39	%		31	%

BUSINESS METRICS
LOANS EXCLUDING PCI LOANS
End-of-period loans owned:
Home equity	$	69,686		$	72,833		$	75,207		$	77,800		$	80,278			(4	)		(13	)	$	69,686		$	80,278			(13	)
Prime mortgage, including option ARMs		41,404			42,037			43,152			44,284			45,439			(2	)		(9	)		41,404			45,439			(9	)
Subprime mortgage		8,552			8,945			9,289			9,664			10,045			(4	)		(15	)		8,552			10,045			(15	)
Other		653			675			692			718			741			(3	)		(12	)		653			741			(12	)

Total end-of-period loans owned	$	120,295		$	124,490		$	128,340		$	132,466		$	136,503			(3	)		(12	)	$	120,295		$	136,503			(12	)
Average loans owned:
Home equity	$	71,620		$	74,069		$	76,600		$	79,106		$	81,568			(3	)		(12	)	$	74,087		$	84,160			(12	)
Prime mortgage, including option ARMs		41,628			42,543			43,701			44,886			46,165			(2	)		(10	)		42,620			47,672			(11	)
Subprime mortgage		8,774			9,123			9,485			9,880			10,268			(4	)		(15	)		9,126			10,671			(14	)
Other		665			684			707			729			753			(3	)		(12	)		686			789			(13	)

Total average loans owned	$	122,687		$	126,419		$	130,493		$	134,601		$	138,754			(3	)		(12	)	$	126,519		$	143,292			(12	)
PCI LOANS
End-of-period loans owned:
Home equity	$	21,432		$	21,867		$	22,305		$	22,697		$	23,105			(2	)		(7	)	$	21,432		$	23,105			(7	)
Prime mortgage		14,038			14,395			14,781			15,180			15,626			(2	)		(10	)		14,038			15,626			(10	)
Subprime mortgage		4,702			4,784			4,870			4,976			5,072			(2	)		(7	)		4,702			5,072			(7	)
Option ARMs		21,024			21,565			22,105			22,693			23,325			(3	)		(10	)		21,024			23,325			(10	)

Total end-of-period loans owned	$	61,196		$	62,611		$	64,061		$	65,546		$	67,128			(2	)		(9	)	$	61,196		$	67,128			(9	)
Average loans owned:
Home equity	$	21,620		$	22,076		$	22,488		$	22,872		$	23,301			(2	)		(7	)	$	22,060		$	23,730			(7	)
Prime mortgage		14,185			14,590			14,975			15,405			15,909			(3	)		(11	)		14,582			16,443			(11	)
Subprime mortgage		4,717			4,824			4,914			5,024			5,128			(2	)		(8	)		4,818			5,219			(8	)
Option ARMs		21,237			21,823			22,395			23,009			23,666			(3	)		(10	)		21,816			24,394			(11	)

Total average loans owned	$	61,759		$	63,313		$	64,772		$	66,310		$	68,004			(2	)		(9	)	$	63,276		$	69,786			(9	)
TOTAL REAL ESTATE PORTFOLIOS
End-of-period loans owned:
Home equity	$	91,118		$	94,700		$	97,512		$	100,497		$	103,383			(4	)		(12	)	$	91,118		$	103,383			(12	)
Prime mortgage, including option ARMs		76,466			77,997			80,038			82,157			84,390			(2	)		(9	)		76,466			84,390			(9	)
Subprime mortgage		13,254			13,729			14,159			14,640			15,117			(3	)		(12	)		13,254			15,117			(12	)
Other		653			675			692			718			741			(3	)		(12	)		653			741			(12	)

Total end-of-period loans owned	$	181,491		$	187,101		$	192,401		$	198,012		$	203,631			(3	)		(11	)	$	181,491		$	203,631			(11	)
Average loans owned:
Home equity	$	93,240		$	96,145		$	99,088		$	101,978		$	104,869			(3	)		(11	)	$	96,147		$	107,890			(11	)
Prime mortgage, including option ARMs		77,050			78,956			81,071			83,300			85,740			(2	)		(10	)		79,018			88,509			(11	)
Subprime mortgage		13,491			13,947			14,399			14,904			15,396			(3	)		(12	)		13,944			15,890			(12	)
Other		665			684			707			729			753			(3	)		(12	)		686			789			(13	)

Total average loans owned	$	184,446		$	189,732		$	195,265		$	200,911		$	206,758			(3	)		(11	)	$	189,795		$	213,078			(11	)
Average assets		173,613			177,698			182,254			187,651			193,692			(2	)		(10	)		177,840			200,278			(11	)
Home equity origination volume		375			360			312			277			294			4			28			1,047			850			23

Page 19

JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
REAL ESTATE PORTFOLIOS (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding PCI loans (a)
Home equity	$	1,120		$	466		$	542		$	579		$	581			140	%		93	%	$	2,128		$	1,893			12	%
Prime mortgage, including option ARMs		143			114			131			151			172			25			(17	)		388			531			(27	)
Subprime mortgage		152			112			130			143			141			36			8			394			483			(18	)
Other		5			4			5			3			5			25			—			14			22			(36	)

Total net charge-offs	$	1,420		$	696		$	808		$	876		$	899			104			58		$	2,924		$	2,929			—
Net charge-off rate excluding PCI loans (a)
Home equity		6.22	%		2.53	%		2.85	%		2.90	%		2.82	%								3.84	%		3.01	%
Prime mortgage, including option ARMs		1.37			1.08			1.21			1.33			1.48									1.22			1.49
Subprime mortgage		6.89			4.94			5.51			5.74			5.43									5.77			6.04
Other		2.99			2.35			2.84			1.63			2.83									2.73			3.68
Total net charge-off rate excluding PCI loans		4.60			2.21			2.49			2.58			2.57									3.09			2.73
Net charge-off rate — reported (a)
Home equity		4.78	%		1.95	%		2.20	%		2.25	%		2.20	%								2.96	%		2.35	%
Prime mortgage, including option ARMs		0.74			0.58			0.65			0.72			0.80									0.66			0.80
Subprime mortgage		4.48			3.23			3.63			3.81			3.63									3.77			4.06
Other		2.99			2.35			2.84			1.63			2.83									2.73			3.68
Total net charge-off rate — reported		3.06			1.48			1.66			1.73			1.72									2.06			1.84

30+ day delinquency rate excluding PCI loans (b)		5.12	%		5.16	%		5.32	%		5.69	%		5.80	%								5.12			5.80	%
Allowance for loan losses, excluding PCI loans	$	5,568		$	6,468		$	7,718		$	8,718		$	9,718			(14	)		(43	)	$	5,568		$	9,718			(43	)
Allowance for PCI loans		5,711			5,711			5,711			5,711			4,941			—			16			5,711			4,941			16

Allowance for loan losses	$	11,279		$	12,179		$	13,429		$	14,429		$	14,659			(7	)		(23	)	$	11,279		$	14,659			(23	)
Nonperforming assets (c)(d)		8,669			7,340			7,738			6,638			7,112			18			22			8,669			7,112			22
Allowance for loan losses to ending loans retained		6.21	%		6.51	%		6.98	%		7.29	%		7.20	%								6.21	%		7.20	%
Allowance for loan losses to ending loans retained excluding PCI loans		4.63			5.20			6.01			6.58			7.12									4.63			7.12

(a)

Net charge-offs and net charge-off rates for the three and nine months ended September 30, 2012 included an incremental $825 million reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be charged off to their collateral value, regardless of their delinquency status. Excluding these incremental charge-offs, net charge-offs for the third quarter of 2012 would have been $402 million, $97 million and $91 million for the home equity, prime mortgage, including option ARMs, and subprime mortgage portfolios, respectively. Net charge-off rates for the same period excluding these incremental charge-offs and purchased credit-impaired loans would have been 2.23%, 0.93% and 4.13% for the home equity, prime mortgage, including option ARMs, and subprime mortgage portfolios, respectively.

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

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

(d)

Nonperforming assets at September 30, 2012 included loans reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be reported as nonaccrual loans, regardless of their delinquency status. In addition, beginning March 31, 2012, period end amounts included performing junior liens that are subordinate to senior liens that are 90 days or more past due based on regulatory guidance issued in the first quarter of 2012. For further information, see footnote (e) on page 15.

Page 20

JPMORGAN CHASE & CO.

CARD SERVICES & AUTO

FINANCIAL HIGHLIGHTS

(in millions, except ratio data and headcount)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Credit card income	$	1,032		$	1,015		$	948		$	1,053		$	1,053			2	%		(2	)%	$	2,995		$	3,074			(3	)%
All other income		248			231			303			232			201			7			23			782			533			47

Noninterest revenue		1,280			1,246			1,251			1,285			1,254			3			2			3,777			3,607			5
Net interest income		3,443			3,279			3,463			3,529			3,521			5			(2	)		10,185			10,720			(5	)

TOTAL NET REVENUE		4,723			4,525			4,714			4,814			4,775			4			(1	)		13,962			14,327			(3	)

Provision for credit losses		1,231			734			738			1,060			1,264			68			(3	)		2,703			2,561			6

NONINTEREST EXPENSE
Compensation expense		489			490			486			460			459			—			7			1,465			1,366			7
Noncompensation expense		1,345			1,512			1,447			1,470			1,560			(11	)		(14	)		4,304			4,348			(1	)
Amortization of intangibles		86			94			96			95			96			(9	)		(10	)		276			306			(10	)

TOTAL NONINTEREST EXPENSE		1,920			2,096			2,029			2,025			2,115			(8	)		(9	)		6,045			6,020			—


Income before income tax expense		1,572			1,695			1,947			1,729			1,396			(7	)		13			5,214			5,746			(9	)
Income tax expense		618			665			764			678			547			(7	)		13			2,047			2,253			(9	)

NET INCOME	$	954		$	1,030		$	1,183		$	1,051		$	849			(7	)		12		$	3,167		$	3,493			(9	)


FINANCIAL RATIOS
ROE		23	%		25	%		29	%		26	%		21	%								26	%		29	%
Overhead ratio		41			46			43			42			44									43			42

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	200,812		$	198,805		$	199,579		$	208,467		$	199,473			1			1		$	200,812		$	199,473			1
Loans:
Credit Card		124,537			124,705			125,331			132,277			127,135			—			(2	)		124,537			127,135			(2	)
Auto		48,920			48,468			48,245			47,426			46,659			1			5			48,920			46,659			5
Student		11,868			12,232			13,162			13,425			13,751			(3	)		(14	)		11,868			13,751			(14	)

Total loans		185,325			185,405			186,738			193,128			187,545			—			(1	)		185,325			187,545			(1	)
Equity		16,500			16,500			16,500			16,000			16,000			—			3			16,500			16,000			3

SELECTED BALANCE SHEET DATA (average)
Total assets	$	196,302		$	197,301		$	199,449		$	202,226		$	199,974			(1	)		(2	)	$	197,679		$	200,803			(2	)
Loans:
Credit Card		124,339			125,195			127,616			128,619			126,536			(1	)		(2	)		125,712			128,015			(2	)
Auto		48,399			48,273			47,704			46,947			46,549			—			4			48,126			47,064			2
Student		12,037			12,944			13,348			13,543			13,865			(7	)		(13	)		12,774			14,135			(10	)

Total loans		184,775			186,412			188,668			189,109			186,950			(1	)		(1	)		186,612			189,214			(1	)
Equity		16,500			16,500			16,500			16,000			16,000			—			3			16,500			16,000			3

Headcount		27,365			27,563			27,862			27,585			27,554			(1	)		(1	)		27,365			27,554			(1	)

Page 21

JPMORGAN CHASE & CO.

CARD SERVICES & AUTO

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Credit Card	$	1,116		$	1,345		$	1,386		$	1,390		$	1,499			(17	)%		(26	)%	$	3,847		$	5,535			(30	)%
Auto (a)		90			21			33			44			42			329			114			144			108			33
Student		80			119			69			126			93			(33	)		(14	)		268			308			(13	)

Total net charge-offs		1,286			1,485			1,488			1,560			1,634			(13	)		(21	)		4,259			5,951			(28	)
Net charge-off rate:
Credit Card (b)		3.57	%		4.35	%		4.40	%		4.29	%		4.70	%								4.11	%		5.83	%
Auto (a)		0.74			0.17			0.28			0.37			0.36									0.40			0.31
Student		2.64			3.70			2.08			3.69			2.66									2.80			2.91
Total net charge-off rate		2.77			3.22			3.19			3.27			3.47									3.06			4.23

Delinquency rates
30+ day delinquency rate:
Credit Card (c)		2.15			2.14			2.56			2.81			2.90									2.15			2.90
Auto		1.11			0.90			0.79			1.13			1.01									1.11			1.01
Student (d)		2.38			1.95			2.06			1.78			1.93									2.38			1.93
Total 30+ day delinquency rate		1.89			1.80			2.07			2.32			2.36									1.89			2.36
90+ day delinquency rate—Credit Card (c)		0.99			1.04			1.37			1.44			1.43									0.99			1.43

Nonperforming assets (a)(e)	$	284		$	219		$	242		$	228		$	232			30			22		$	284		$	232			22
Allowance for loan losses:
Credit Card		5,503			5,499			6,251			6,999			7,528			—			(27	)		5,503			7,528			(27	)
Auto and Student		954			1,009			1,010			1,010			1,009			(5	)		(5	)		954			1,009			(5	)

Total allowance for loan losses		6,457			6,508			7,261			8,009			8,537			(1	)		(24	)		6,457			8,537			(24	)
Allowance for loan losses to period-end loans:
Credit Card (c)		4.42	%		4.41	%		5.02	%		5.30	%		5.93	%								4.42	%		5.93	%
Auto and Student		1.57			1.66			1.64			1.66			1.67									1.57			1.67
Total allowance for loan losses to period-end loans		3.49			3.51			3.91			4.15			4.55									3.49			4.55

BUSINESS METRICS
Credit Card, excluding Commercial Card
Sales volume (in billions)	$	96.6		$	96.0		$	86.9		$	93.4		$	87.3			1			11		$	279.5		$	250.3			12
New accounts opened		1.6			1.6			1.7			2.2			2.0			—			(20	)		4.9			6.6			(26	)
Open accounts		63.9			63.7			64.2			65.2			64.3			—			(1	)		63.9			64.3			(1	)

Merchant Services
Bank card volume (in billions)	$	163.6		$	160.2		$	152.8		$	152.6		$	138.1			2			18		$	476.6		$	401.1			19
Total transactions (in billions)		7.4			7.1			6.8			6.8			6.1			4			21			21.3			17.6			21

Auto and Student
Origination volume (in billions)
Auto	$	6.3		$	5.8		$	5.8		$	4.9		$	5.9			9			7		$	17.9		$	16.1			11
Student		0.1			—			0.1			0.1			0.1			NM			—			0.2			0.2			—

(a)

Net charge-offs and net charge-off rates for the three and nine months ended September 30, 2012, included an incremental $55 million reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be charged off to their collateral value and placed on nonaccrual, regardless of their delinquency status. Excluding these incremental charge-offs, net charge-offs for the third quarter of 2012 would have been $35 million, and the net charge-off rate for the same period would have been 0.29%. Nonperforming assets at September 30, 2012 included $65 million of nonaccrual loans, reported in accordance with this guidance.

(b)

Average credit card loans include loans held-for-sale of $109 million, $782 million, $821 million, $97 million and $1 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $569 million and $1.1 billion for the nine months ended September 30, 2012 and 2011, respectively. These amounts are excluded when calculating the net charge-off rate.

(c)

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

(d)

Excluded student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $910 million, $931 million, $1.0 billion, $989 million and $995 million at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, that were 30 or more days past due. These amounts were excluded as reimbursement of insured amounts was proceeding normally.

(e)

Nonperforming assets excluded student loans insured by U.S. government agencies under the FFELP of $536 million, $547 million, $586 million, $551 million and $567 million at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, that were 90 or more days past due. These amounts were excluded as reimbursement of insured amounts was proceeding normally.

Page 22

JPMORGAN CHASE & CO.

CARD SERVICES & AUTO

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
CARD SERVICES SUPPLEMENTAL INFORMATION
Noninterest revenue	$	971		$	953		$	949		$	985		$	957			2	%		1	%	$	2,873		$	2,755			4	%
Net interest income		2,923			2,755			2,928			2,989			2,984			6			(2	)		8,606			9,095			(5	)

Total net revenue		3,894			3,708			3,877			3,974			3,941			5			(1	)		11,479			11,850			(3	)
Provision for credit losses		1,116			595			636			890			999			88			12			2,347			2,035			15
Noninterest expense		1,517			1,703			1,636			1,633			1,734			(11	)		(13	)		4,856			4,911			(1	)

Income before income tax expense		1,261			1,410			1,605			1,451			1,208			(11	)		4			4,276			4,904			(13	)

Net income	$	769		$	860		$	979		$	885		$	737			(11	)		4		$	2,608		$	2,991			(13	)


FINANCIAL RATIOS
Percentage of average loans:
Noninterest revenue		3.11	%		3.06	%		2.99	%		3.04	%		3.00	%								3.05	%		2.88	%
Net interest income		9.35			8.85			9.23			9.22			9.36									9.14			9.50
Total net revenue		12.46			11.91			12.22			12.26			12.36									12.20			12.38

Page 23

JPMORGAN CHASE & CO.

COMMERCIAL BANKING

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	263		$	264		$	276		$	267		$	269			—	%		(2	)%	$	803		$	814			(1	)%
Asset management, administration and commissions		30			34			36			32			35			(12	)		(14	)		100			104			(4	)
All other income (a)		293			264			245			272			220			11			33			802			706			14

Noninterest revenue		586			562			557			571			524			4			12			1,705			1,624			5
Net interest income		1,146			1,129			1,100			1,116			1,064			2			8			3,375			3,107			9

TOTAL NET REVENUE (b)		1,732			1,691			1,657			1,687			1,588			2			9			5,080			4,731			7

Provision for credit losses		(16	)		(17	)		77			40			67			6			NM			44			168			(74	)

NONINTEREST EXPENSE
Compensation expense (c)		263			245			256			227			242			7			9			764			709			8
Noncompensation expense (c)		332			339			335			344			324			(2	)		2			1,006			967			4
Amortization of intangibles		6			7			7			8			7			(14	)		(14	)		20			23			(13	)

TOTAL NONINTEREST EXPENSE		601			591			598			579			573			2			5			1,790			1,699			5


Income before income tax expense		1,147			1,117			982			1,068			948			3			21			3,246			2,864			13
Income tax expense		457			444			391			425			377			3			21			1,292			1,140			13

NET INCOME	$	690		$	673		$	591		$	643		$	571			3			21		$	1,954		$	1,724			13

Revenue by product:
Lending	$	916		$	920		$	892		$	881		$	857			—			7		$	2,728		$	2,574			6
Treasury services		609			603			602			600			572			1			6			1,814			1,670			9
Investment banking		139			129			120			120			116			8			20			388			378			3
Other		68			39			43			86			43			74			58			150			109			38

Total Commercial Banking revenue	$	1,732		$	1,691		$	1,657		$	1,687		$	1,588			2			9		$	5,080		$	4,731			7


IB revenue, gross (d)	$	431		$	384		$	339		$	350		$	320			12			35		$	1,154		$	1,071			8

Revenue by client segment:
Middle Market Banking	$	838		$	833		$	825		$	810		$	791			1			6		$	2,496		$	2,335			7
Commercial Term Lending		298			291			293			299			297			2			—			882			869			1
Corporate Client Banking		370			343			337			326			306			8			21			1,050			935			12
Real Estate Banking		106			114			105			115			104			(7	)		2			325			301			8
Other		120			110			97			137			90			9			33			327			291			12

Total Commercial Banking revenue	$	1,732		$	1,691		$	1,657		$	1,687		$	1,588			2			9		$	5,080		$	4,731			7

FINANCIAL RATIOS
ROE		29	%		28	%		25	%		32	%		28	%								27	%		29	%
Overhead ratio		35			35			36			34			36									35			36

(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 $115 million, $99 million, $94 million, $123 million and $90 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $308 million and $222 million for the nine months ended September 30, 2012 and 2011, respectively.

(c)

Effective July 1, 2012, certain Treasury Services product sales staff supporting CB were transferred from TSS to CB. As a result, compensation expense for these sales staff is now reflected in CB’s compensation expense rather than as an allocation from TSS in noncompensation expense. CB’s and TSS’s previously reported headcount, compensation expense and noncompensation expense have been revised to reflect this transfer.

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

Page 24

JPMORGAN CHASE & CO.

COMMERCIAL BANKING

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except headcount and ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	168,124		$	163,698		$	161,741		$	158,040		$	151,095			3	%		11	%	$	168,124		$	151,095			11	%
Loans:
Loans retained		123,173			119,946			114,969			111,162			106,834			3			15			123,173			106,834			15
Loans held-for-sale and loans at fair value		549			547			878			840			584			—			(6	)		549			584			(6	)

Total loans		123,722			120,493			115,847			112,002			107,418			3			15			123,722			107,418			15
Equity		9,500			9,500			9,500			8,000			8,000			—			19			9,500			8,000			19

Period-end loans by client segment:
Middle Market Banking	$	48,852		$	47,638		$	46,040		$	44,437		$	42,365			3			15		$	48,852		$	42,365			15
Commercial Term Lending		42,304			40,972			39,314			38,583			38,539			3			10			42,304			38,539			10
Corporate Client Banking		19,727			18,839			17,670			16,747			15,100			5			31			19,727			15,100			31
Real Estate Banking		8,563			8,819			8,763			8,211			7,470			(3	)		15			8,563			7,470			15
Other		4,276			4,225			4,060			4,024			3,944			1			8			4,276			3,944			8

Total Commercial Banking loans	$	123,722		$	120,493		$	115,847		$	112,002		$	107,418			3			15		$	123,722		$	107,418			15


SELECTED BALANCE SHEET DATA (average)
Total assets	$	164,702		$	163,423		$	161,074		$	155,611		$	145,195			1			13		$	163,072		$	143,069			14
Loans:
Loans retained		121,566			117,835			112,879			109,328			104,705			3			16			117,442			101,485			16
Loans held-for-sale and loans at fair value		552			599			881			580			632			(8	)		(13	)		677			801			(15	)

Total loans		122,118			118,434			113,760			109,908			105,337			3			16			118,119			102,286			15
Liability balances		190,910			193,280			200,178			199,138			180,275			(1	)		6			194,775			166,503			17
Equity		9,500			9,500			9,500			8,000			8,000			—			19			9,500			8,000			19

Average loans by client segment:
Middle Market Banking	$	47,741		$	46,880		$	45,047		$	43,215		$	41,540			2			15		$	46,560		$	39,932			17
Commercial Term Lending		41,658			40,060			38,848			38,679			38,198			4			9			40,194			37,914			6
Corporate Client Banking		19,791			18,588			17,514			16,116			14,373			6			38			18,635			13,277			40
Real Estate Banking		8,651			8,808			8,341			7,936			7,465			(2	)		16			8,600			7,512			14
Other		4,277			4,098			4,010			3,962			3,761			4			14			4,130			3,651			13

Total Commercial Banking loans	$	122,118		$	118,434		$	113,760		$	109,908		$	105,337			3			16		$	118,119		$	102,286			15


Headcount (a)		6,100			6,152			5,870			5,787			5,687			(1	)		7			6,100			5,687			7

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(18	)	$	(9	)	$	12		$	99		$	17			(100	)		NM		$	(15	)	$	88			NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (b)		843			881			972			1,036			1,417			(4	)		(41	)		843			1,417			(41	)
Nonaccrual loans held-for-sale and loans at fair value		33			36			32			17			26			(8	)		27			33			26			27

Total nonaccrual loans		876			917			1,004			1,053			1,443			(4	)		(39	)		876			1,443			(39	)
Assets acquired in loan satisfactions		32			36			60			85			168			(11	)		(81	)		32			168			(81	)

Total nonperforming assets		908			953			1,064			1,138			1,611			(5	)		(44	)		908			1,611			(44	)
Allowance for credit losses:
Allowance for loan losses		2,653			2,638			2,662			2,603			2,671			1			(1	)		2,653			2,671			(1	)
Allowance for lending-related commitments		196			209			194			189			181			(6	)		8			196			181			8

Total allowance for credit losses		2,849			2,847			2,856			2,792			2,852			—			—			2,849			2,852			—

Net charge-off/(recovery) rate (c)		(0.06	)%		(0.03	)%		0.04	%		0.36	%		0.06	%								(0.02	)%		0.12	%
Allowance for loan losses to period-end loans retained		2.15			2.20			2.32			2.34			2.50									2.15			2.50
Allowance for loan losses to nonaccrual loans retained (b)		315			299			274			251			188									315			188
Nonaccrual loans to total period-end loans		0.71			0.76			0.87			0.94			1.34									0.71			1.34

(a)	Effective July 1, 2012, certain Treasury Services product sales staff supporting CB were transferred from TSS to CB. For further discussion of this transfer, see page 24, footnote (c).

(b)	Allowance for loan losses of $148 million, $143 million, $163 million, $176 million and $257 million was held against nonaccrual loans retained at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively.

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

Page 25

JPMORGAN CHASE & CO.

TREASURY & SECURITIES SERVICES

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	282		$	287		$	286		$	313		$	310			(2	)%		(9	)%	$	855		$	927			(8	)%
Asset management, administration and commissions		630			708			654			671			656			(11	)		(4	)		1,992			2,077			(4	)
All other income		136			156			127			133			141			(13	)		(4	)		419			423			(1	)

Noninterest revenue		1,048			1,151			1,067			1,117			1,107			(9	)		(5	)		3,266			3,427			(5	)
Net interest income		981			1,001			947			905			801			(2	)		22			2,929			2,253			30

TOTAL NET REVENUE		2,029			2,152			2,014			2,022			1,908			(6	)		6			6,195			5,680			9

Provision for credit losses		(12	)		8			2			19			(20	)		NM			40			(2	)		(18	)		89
Credit allocation income/(expense) (a)		54			68			3			(60	)		9			(21	)		500			125			68			84

NONINTEREST EXPENSE
Compensation expense (b)		686			707			722			660			705			(3	)		(3	)		2,115			2,114			—
Noncompensation expense (b)		743			770			738			889			741			(4	)		—			2,251			2,132			6
Amortization of intangibles		14			14			13			14			24			—			(42	)		41			54			(24	)

TOTAL NONINTEREST EXPENSE		1,443			1,491			1,473			1,563			1,470			(3	)		(2	)		4,407			4,300			2


Income before income tax expense		652			721			542			380			467			(10	)		40			1,915			1,466			31
Income tax expense		232			258			191			130			162			(10	)		43			681			512			33

NET INCOME	$	420		$	463		$	351		$	250		$	305			(9	)		38		$	1,234		$	954			29


FINANCIAL RATIOS
ROE		22	%		25	%		19	%		14	%		17	%								22	%		18	%
Pretax margin ratio		32			34			27			19			24									31			26
Overhead ratio		71			69			73			77			77									71			76
Pre-provision profit ratio		29			31			27			23			23									29			24

REVENUE BY BUSINESS
Worldwide Securities Services (“WSS”):
Investor Services	$	777		$	835		$	783		$	752		$	740			(7	)		5		$	2,395		$	2,267			6
Clearance, Collateral Mgmt & Depositary Receipts		188			243			179			219			199			(23	)		(6	)		610			623			(2	)

Total WSS Revenue		965			1,078			962			971			939			(10	)		3			3,005			2,890			4
Treasury Services (“TS”):
Transaction Services	$	913		$	917		$	893		$	874		$	816			—			12		$	2,723		$	2,366			15
Trade Finance		151			157			159			177			153			(4	)		(1	)		467			424			10

Total TS Revenue		1,064			1,074			1,052			1,051			969			(1	)		10			3,190			2,790			14

(a)

IB manages traditional credit exposures related to GCB on behalf of IB and TSS, and IB and TSS share the economics related to the Firm’s GCB clients. Included within this allocation are net revenue, provision for credit losses and expenses. IB recognizes this credit allocation as a component of all other income.

(b)	Effective July 1, 2012, certain Treasury Services product sales staff supporting CB were transferred from TSS to CB. For further discussion of this transfer, see page 24, footnote (c).

Page 26

JPMORGAN CHASE & CO.

TREASURY & SECURITIES SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except headcount and ratio data, and where otherwise noted)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	65,337		$	67,758		$	66,732		$	68,665		$	62,364			(4	)%		5	%	$	65,337		$	62,364			5	%
Loans (a)		40,616			42,558			41,173			42,992			36,389			(5	)		12			40,616			36,389			12
Equity		7,500			7,500			7,500			7,000			7,000			—			7			7,500			7,000			7

SELECTED BALANCE SHEET DATA (average)
Total assets	$	63,203		$	66,398		$	64,559		$	63,686		$	60,141			(5	)		5		$	64,714		$	53,612			21
Loans (a)		40,791			42,213			40,538			39,289			35,303			(3	)		16			41,179			32,576			26
Liability balances		351,383			348,102			356,964			364,196			341,107			1			3			352,147			303,504			16
Equity		7,500			7,500			7,500			7,000			7,000			—			7			7,500			7,000			7

Headcount (b)		26,595			27,172			27,507			27,558			27,887			(2	)		(5	)		26,595			27,887			(5	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	(6	)	$	—		$	—		$	—		$	—			NM			NM		$	(6	)	$	—			NM
Nonaccrual loans		7			4			5			4			3			75			133			7			3			133
Allowance for credit losses:
Allowance for loan losses		74			79			69			65			49			(6	)		51			74			49			51
Allowance for lending-related commitments		9			9			14			49			46			—			(80	)		9			46			(80	)

Total allowance for credit losses		83			88			83			114			95			(6	)		(13	)		83			95			(13	)

Net charge-off rate		(0.06	)%		—	%		—	%		—	%		—	%								(0.02	)%		—	%
Allowance for loan losses to period-end loans		0.18			0.19			0.17			0.15			0.14									0.18			0.14
Allowance for loan losses to nonaccrual loans		NM			NM			NM			NM			NM									NM			NM
Nonaccrual loans to period-end loans		0.02			0.01			0.01			0.01			0.01									0.02			0.01

WSS BUSINESS METRICS
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
Fixed Income	$	11,545		$	11,302		$	11,332		$	10,926		$	10,871			2			6		$	11,545		$	10,871			6
Equity		5,328			5,025			5,365			4,878			4,401			6			21			5,328			4,401			21
Other (c)		1,346			1,338			1,171			1,066			978			1			38			1,346			978			38

Total AUC	$	18,219		$	17,665		$	17,868		$	16,870		$	16,250			3			12		$	18,219		$	16,250			12

Liability balances (average)		124,669			121,755			125,088			122,102			107,105			2			16			123,840			93,433			33

TS BUSINESS METRICS
Liability balances (average)		226,714			226,347			231,876			242,094			234,002			—			(3	)		228,307			210,071			9
Trade finance loans (period-end)		35,142			35,291			35,692			36,696			30,104			—			17			35,142			30,104			17

(a)	Loan balances include trade finance loans and wholesale overdrafts.

(b)	Effective July 1, 2012, certain Treasury Services product sales staff supporting CB were transferred from TSS to CB. For further discussion of this transfer, see page 24, footnote (c).

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

Page 27


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


	QUARTERLY TRENDS																NINE MONTHS ENDED SEPTEMBER 30,
											3Q12 Change										2012 Change
	3Q12		2Q12		1Q12		4Q11		3Q11		2Q12			3Q11			2012		2011		2011
INTERNATIONAL METRICS
Net revenue (a)
Europe/Middle East/Africa	$	677	$	777	$	668	$	689	$	648		(13	)%		4	%	$	2,122	$	1,969		8	%
Asia/Pacific		342		345		353		339		321		(1	)		7			1,040		896		16
Latin America/Caribbean		70		72		82		112		61		(3	)		15			224		217		3
North America		940		958		911		882		878		(2	)		7			2,809		2,598		8

Total net revenue	$	2,029	$	2,152	$	2,014	$	2,022	$	1,908		(6	)		6		$	6,195	$	5,680		9


Average liability balances (a)
Europe/Middle East/Africa	$	125,720	$	127,173	$	127,794	$	130,862	$	129,608		(1	)		(3	)		126,891		121,581		4
Asia/Pacific		50,862		50,331		50,197		49,407		42,987		1			18			50,465		41,541		21
Latin America/Caribbean		10,141		10,453		11,852		11,563		12,722		(3	)		(20	)		10,813		12,983		(17	)
North America		164,660		160,145		167,121		172,364		155,790		3			6			163,978		127,399		29

Total average liability balances	$	351,383	$	348,102	$	356,964	$	364,196	$	341,107		1			3		$	352,147	$	303,504		16


Trade finance loans (period-end) (a)
Europe/Middle East/Africa	$	9,274	$	9,577	$	9,972	$	9,726	$	6,853		(3	)		35		$	9,274	$	6,853		35
Asia/Pacific		18,317		18,209		18,140		19,280		16,918		1			8			18,317		16,918		8
Latin America/Caribbean		5,710		5,754		6,040		6,254		5,228		(1	)		9			5,710		5,228		9
North America		1,841		1,751		1,540		1,436		1,105		5			67			1,841		1,105		67

Total trade finance loans	$	35,142	$	35,291	$	35,692	$	36,696	$	30,104		—			17		$	35,142	$	30,104		17


AUC (period-end) (in billions) (a)
North America	$	10,206	$	10,048	$	9,998	$	9,735	$	9,611		2			6		$	10,206	$	9,611		6
All other regions		8,013		7,617		7,870		7,135		6,639		5			21			8,013		6,639		21

Total AUC	$	18,219	$	17,665	$	17,868	$	16,870	$	16,250		3			12		$	18,219	$	16,250		12


TSS FIRMWIDE DISCLOSURES (b)
TS revenue - reported	$	1,064	$	1,074	$	1,052	$	1,051	$	969		(1	)		10		$	3,190	$	2,790		14
TS revenue reported in CB		609		603		602		600		572		1			6			1,814		1,670		9
TS revenue reported in other lines of business		67		68		69		69		68		(1	)		(1	)		204		196		4

TS firmwide revenue (c)		1,740		1,745		1,723		1,720		1,609		—			8			5,208		4,656		12
WSS revenue		965		1,078		962		971		939		(10	)		3			3,005		2,890		4

TSS firmwide revenue (c)	$	2,705	$	2,823	$	2,685	$	2,691	$	2,548		(4	)		6		$	8,213	$	7,546		9


TSS total foreign exchange (“FX”) revenue (c)		135		147		137		154		179		(8	)		(25	)		419		504		(17	)

TS firmwide liability balances (average) (d)	$	417,821	$	419,806	$	432,299	$	441,572	$	414,485		—			1		$	423,289	$	376,661		12
TSS firmwide liability balances (average) (d)		542,293		541,382		557,142		563,334		521,383		—			4			546,922		470,008		16

Number of:
U.S.$ ACH transactions originated		1,028		1,020		1,019		983		972		1			6			3,067		2,923		5
Total U.S.$ clearing volume (in thousands)		34,697		33,980		32,696		33,055		33,117		2			5			101,373		96,362		5
International electronic funds transfer volume (in thousands) (e)		73,281		76,343		75,087		63,669		62,718		(4	)		17			224,711		186,868		20
Wholesale check volume		580		602		589		592		601		(4	)		(3	)		1,771		1,741		2
Wholesale cards issued (in thousands) (f)		24,955		25,346		24,693		25,187		24,288		(2	)		3			24,955		24,288		3

(a)	Total net revenue, average liability balances, trade finance loans and AUC are based on the domicile of the client. In the second quarter of 2012, the methodology for allocating the data by region was refined. Prior periods were not revised due to immateriality.

(b)

TSS firmwide metrics include revenue recorded in CB, Consumer & Business Banking and Asset Management (“AM”) lines of business and net TSS FX revenue (it excludes TSS FX revenue recorded in IB). In order to capture the firmwide impact of Treasury Services (“TS”) and TSS products and revenue, management reviews firmwide metrics in assessing financial performance of TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.

(c)

IB executes FX transactions on behalf of TSS customers under revenue sharing agreements. FX revenue generated by TSS customers is recorded in TSS and IB. TSS total FX revenue reported above is the gross (pre-split) FX revenue generated by TSS customers. However, TSS firmwide revenue includes only the FX revenue booked in TSS, i.e., it does not include the portion of TSS FX revenue recorded in IB.

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

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

(f)	Wholesale cards issued and outstanding include stored value, prepaid and government electronic benefit card products.

Page 28

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,708		$	1,701		$	1,621		$	1,606		$	1,617			—	%		6	%	$	5,030		$	5,142			(2	)%
All other income		199			151			266			232			281			32			(29	)		616			915			(33	)

Noninterest revenue		1,907			1,852			1,887			1,838			1,898			3			—			5,646			6,057			(7	)
Net interest income		552			512			483			446			418			8			32			1,547			1,202			29

TOTAL NET REVENUE		2,459			2,364			2,370			2,284			2,316			4			6			7,193			7,259			(1	)

Provision for credit losses		14			34			19			24			26			(59	)		(46	)		67			43			56

NONINTEREST EXPENSE
Compensation expense		1,083			1,024			1,120			1,046			999			6			8			3,227			3,106			4
Noncompensation expense		625			655			586			674			775			(5	)		(19	)		1,866			2,078			(10	)
Amortization of intangibles		23			22			23			32			22			5			5			68			66			3

TOTAL NONINTEREST EXPENSE		1,731			1,701			1,729			1,752			1,796			2			(4	)		5,161			5,250			(2	)


Income before income tax expense		714			629			622			508			494			14			45			1,965			1,966			—
Income tax expense		271			238			236			206			109			14			149			745			676			10

NET INCOME	$	443		$	391		$	386		$	302		$	385			13			15		$	1,220		$	1,290			(5	)


REVENUE BY CLIENT SEGMENT
Private Banking	$	1,365		$	1,341		$	1,279		$	1,212		$	1,298			2			5		$	3,985		$	3,904			2
Institutional		563			537			557			558			478			5			18			1,657			1,715			(3	)
Retail		531			486			534			514			540			9			(2	)		1,551			1,640			(5	)

TOTAL NET REVENUE	$	2,459		$	2,364		$	2,370		$	2,284		$	2,316			4			6		$	7,193		$	7,259			(1	)


FINANCIAL RATIOS
ROE		25	%		22	%		22	%		18	%		24	%								23	%		27	%
Overhead ratio		70			72			73			77			78									72			72
Pretax margin ratio		29			27			26			22			21									27			27

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	103,608		$	98,704		$	96,385		$	86,242		$	81,179			5			28		$	103,608		$	81,179			28
Loans (a)		74,924			70,470			64,335			57,573			54,178			6			38			74,924			54,178			38
Equity		7,000			7,000			7,000			6,500			6,500			—			8			7,000			6,500			8

SELECTED BALANCE SHEET DATA (average)
Total assets	$	99,209		$	96,670		$	89,582		$	82,594		$	78,669			3			26		$	95,168		$	73,967			29
Loans		71,824			67,093			59,311			54,691			52,652			7			36			66,097			48,841			35
Deposits		127,487			128,087			127,534			121,493			111,090			—			15			127,702			101,341			26
Equity		7,000			7,000			7,000			6,500			6,500			—			8			7,000			6,500			8

Headcount		18,109			18,042			17,849			18,036			18,084			—			—			18,109			18,084			—

(a)	Included $8.9 billion, $6.7 billion and $4.5 billion of prime mortgage loans reported in the Consumer, excluding credit card loan portfolio at September 30, 2012, June 30, 2012 and March 31, 2012, respectively.

Page 29

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data and where otherwise noted)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
BUSINESS METRICS
Number of:
Client advisors (a)		2,826			2,739			2,832			2,883			2,864			3	%		(1	)%		2,826			2,864			(1	)%
Retirement Planning Services participants (in thousands)		1,951			1,960			1,926			1,798			1,755			—			11			1,951			1,755			11
% of customer assets in 4 & 5 Star Funds (b)		45	%		43	%		42	%		43	%		47	%								45	%		47	%
% of AUM in 1^stand 2^nd quartiles: (c)
1 year		69			65			64			48			49									69			49
3 years		78			72			74			72			73									78			73
5 years		77			74			76			78			77									77			77

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	6		$	28		$	27		$	48		$	—			(79	)		NM		$	61		$	44			39
Nonaccrual loans		227			256			263			317			311			(11	)		(27	)		227			311			(27	)
Allowance for credit losses:
Allowance for loan losses		229			220			209			209			240			4			(5	)		229			240			(5	)
Allowance for lending-related commitments		5			6			5			10			9			(17	)		(44	)		5			9			(44	)

Total allowance for credit losses		234			226			214			219			249			4			(6	)		234			249			(6	)
Net charge-off rate		0.03	%		0.17	%		0.18	%		0.35	%		—	%								0.12	%		0.12	%
Allowance for loan losses to period-end loans		0.31			0.31			0.32			0.36			0.44									0.31			0.44
Allowance for loan losses to nonaccrual loans		101			86			79			66			77									101			77
Nonaccrual loans to period-end loans		0.30			0.36			0.41			0.55			0.57									0.30			0.57

(a)	Effective January 1, 2012, the previously disclosed separate metric for client advisors and JPMorgan Securities brokers were combined into one metric that reflects the number of Private Banking client-facing representatives.

(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 30

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

(in billions)


											Sep 30, 2012 Change
ASSETS UNDER SUPERVISION	Sep 30, 2012		Jun 30, 2012		Mar 31, 2012		Dec 31, 2011		Sep 30, 2011		Jun 30, 2012			Sep 30, 2011
Assets by asset class
Liquidity	$	451	$	466	$	492	$	515	$	464		(3	)%		(3	)%
Fixed income		380		359		355		336		321		6			18
Equity and multi-asset		432		401		417		372		356		8			21
Alternatives		118		121		118		113		113		(2	)		4

TOTAL ASSETS UNDER MANAGEMENT		1,381		1,347		1,382		1,336		1,254		3			10
Custody/brokerage/administration/deposits		650		621		631		585		552		5			18

TOTAL ASSETS UNDER SUPERVISION	$	2,031	$	1,968	$	2,013	$	1,921	$	1,806		3			12


Assets by client segment
Private Banking	$	311	$	297	$	303	$	291	$	276		5			13
Institutional		710		702		732		722		673		1			5
Retail		360		348		347		323		305		3			18

TOTAL ASSETS UNDER MANAGEMENT	$	1,381	$	1,347	$	1,382	$	1,336	$	1,254		3			10


Private Banking	$	852	$	816	$	830	$	781	$	738		4			15
Institutional		710		702		732		723		674		1			5
Retail		469		450		451		417		394		4			19

TOTAL ASSETS UNDER SUPERVISION	$	2,031	$	1,968	$	2,013	$	1,921	$	1,806		3			12


Mutual fund assets by asset class
Liquidity	$	390	$	408	$	434	$	458	$	409		(4	)		(5	)
Fixed income		128		119		116		107		101		8			27
Equity and multi-asset		174		160		167		147		139		9			25
Alternatives		6		7		8		8		8		(14	)		(25	)

TOTAL MUTUAL FUND ASSETS	$	698	$	694	$	725	$	720	$	657		1			6

Page 31

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

(in billions)


	QUARTERLY TRENDS															NINE MONTHS ENDED SEPTEMBER 30,
	3Q12			2Q12			1Q12			4Q11			3Q11			2012			2011
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,347		$	1,382		$	1,336		$	1,254		$	1,342		$	1,336		$	1,298
Net asset flows:
Liquidity		(17	)		(25	)		(25	)		53			(10	)		(67	)		(35	)
Fixed income		13			5			11			9			3			29			31
Equities, multi-asset and alternatives		8			9			6			(4	)		(1	)		23			17
Market/performance/other impacts		30			(24	)		54			24			(80	)		60			(57	)

Ending balance	$	1,381		$	1,347		$	1,382		$	1,336		$	1,254		$	1,381		$	1,254

Assets under supervision rollforward
Beginning balance	$	1,968		$	2,013		$	1,921		$	1,806		$	1,924		$	1,921		$	1,840
Net asset flows		10			(6	)		8			69			11			12			54
Market/performance/other impacts		53			(39	)		84			46			(129	)		98			(88	)

Ending balance	$	2,031		$	1,968		$	2,013		$	1,921		$	1,806		$	2,031		$	1,806

Page 32

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

(in billions, except where otherwise noted)


	QUARTERLY TRENDS																NINE MONTHS ENDED SEPTEMBER 30,
											3Q12 Change										2012 Change
INTERNATIONAL METRICS	3Q12		2Q12		1Q12		4Q11		3Q11		2Q12			3Q11			2012		2011		2011
Total net revenue: (in millions) (a)
Europe/Middle East/Africa	$	386	$	379	$	405	$	392	$	395		2	%		(2	)%	$	1,170	$	1,312		(11	)%
Asia/Pacific		245		230		236		220		248		7			(1	)		711		751		(5	)
Latin America/Caribbean		191		166		175		224		168		15			14			532		584		(9	)
North America		1,637		1,589		1,554		1,448		1,505		3			9			4,780		4,612		4

Total net revenue	$	2,459	$	2,364	$	2,370	$	2,284	$	2,316		4			6		$	7,193	$	7,259		(1	)

Assets under management:
Europe/Middle East/Africa	$	267	$	261	$	282	$	278	$	255		2			5		$	267	$	255		5
Asia/Pacific		112		103		112		105		104		9			8			112		104		8
Latin America/Caribbean		42		41		41		34		32		2			31			42		32		31
North America		960		942		947		919		863		2			11			960		863		11

Total assets under management	$	1,381	$	1,347	$	1,382	$	1,336	$	1,254		3			10		$	1,381	$	1,254		10

Assets under supervision:
Europe/Middle East/Africa	$	325	$	315	$	339	$	329	$	306		3			6		$	325	$	306		6
Asia/Pacific		155		144		152		139		140		8			11			155		140		11
Latin America/Caribbean		106		101		101		89		87		5			22			106		87		22
North America		1,445		1,408		1,421		1,364		1,273		3			14			1,445		1,273		14

Total assets under supervision	$	2,031	$	1,968	$	2,013	$	1,921	$	1,806		3			12		$	2,031	$	1,806		12

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

Page 33

JPMORGAN CHASE & CO.

CORPORATE/PRIVATE EQUITY

FINANCIAL HIGHLIGHTS

(in millions, except headcount data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Principal transactions (a)	$	(304	)	$	(3,576	)(e)	$	(547	)	$	324		$	(933	)		91	%		67	%	$	(4,427	)	$	1,110			NM	%
Securities gains		459			1,013			449			54			607			(55	)		(24	)		1,921			1,546			24
All other income		1,046	(d)		159			1,111	(f)		75			186			NM			462			2,316			529			338

Noninterest revenue		1,201			(2,404	)		1,013			453			(140	)		NM			NM			(190	)		3,185			NM
Net interest income		(625	)		(205	)		16			245			8			(205	)		NM			(814	)		260			NM

TOTAL NET REVENUE (b)		576			(2,609	)		1,029			698			(132	)		NM			NM			(1,004	)		3,445			NM

Provision for credit losses		(11	)		(11	)		(9	)		(10	)		(7	)		—			(57	)		(31	)		(26	)		(19	)

NONINTEREST EXPENSE
Compensation expense		589			652			823			602			552			(10	)		7			2,064			1,823			13
Noncompensation expense (c)		1,603			1,317			3,328			1,649			1,995			22			(20	)		6,248			5,235			19

Subtotal		2,192			1,969			4,151			2,251			2,547			11			(14	)		8,312			7,058			18
Net expense allocated to other businesses		(1,462	)		(1,410	)		(1,382	)		(1,321	)		(1,331	)		(4	)		(10	)		(4,254	)		(3,839	)		(11	)

TOTAL NONINTEREST EXPENSE		730			559			2,769			930			1,216			31			(40	)		4,058			3,219			26


Income/(loss) before income tax expense/(benefit)		(143	)		(3,157	)		(1,731	)		(222	)		(1,341	)		95			89			(5,031	)		252			NM
Income tax expense/(benefit)		(364	)		(1,380	)		(709	)		(445	)		(696	)		74			48			(2,453	)		(327	)		NM

NET INCOME/(LOSS)	$	221		$	(1,777	)	$	(1,022	)	$	223		$	(645	)		NM			NM		$	(2,578	)	$	579			NM


MEMO:
REVENUE
Private Equity	$	(135	)	$	410		$	254		$	(113	)	$	(546	)		NM			75		$	529		$	949			(44	)
Treasury and Chief Investment Office (“CIO”)		713			(3,434	)		(233	)		845			102			NM			NM			(2,954	)		2,351			NM
Other Corporate		(2	)		415			1,008			(34	)		312			NM			NM			1,421			145			NM

TOTAL NET REVENUE	$	576		$	(2,609	)	$	1,029		$	698		$	(132	)		NM			NM		$	(1,004	)	$	3,445			NM


NET INCOME/(LOSS)
Private Equity	$	(89	)	$	197		$	134		$	(89	)	$	(347	)		NM			74		$	242		$	480			(50	)
Treasury and CIO		369			(2,078	)		(227	)		417			(94	)		NM			NM			(1,936	)		932			NM
Other Corporate		(59	)		104			(929	)		(105	)		(204	)		NM			71			(884	)		(833	)		(6	)

TOTAL NET INCOME/(LOSS)	$	221		$	(1,777	)	$	(1,022	)	$	223		$	(645	)		NM			NM		$	(2,578	)	$	579			NM

TOTAL ASSETS (period-end)	$	685,412		$	667,206		$	713,326		$	693,153		$	693,597			3			(1	)	$	685,412		$	693,597			(1	)

Headcount		23,427			23,020			22,337			22,117			21,844			2			7			23,427			21,844			7

(a)

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

(b)

Total net revenue included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $109 million, $118 million, $99 million, $92 million and $73 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $326 million and $206 million for the nine months ended September 30, 2012 and 2011, respectively.

(c)

Included litigation expense of $0.7 billion, $0.3 billion, $2.5 billion, $0.5 billion and $1.0 billion for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $3.5 billion and $2.6 billion for the nine months ended September 30, 2012 and 2011, respectively.

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

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

(f)	Included a $1.1 billion benefit from the Washington Mutual bankruptcy settlement.

Page 34

JPMORGAN CHASE & CO.

CORPORATE/PRIVATE EQUITY

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions)


	QUARTERLY TRENDS																				NINE MONTHS ENDED SEPTEMBER 30,
															3Q12 Change											2012 Change
	3Q12			2Q12			1Q12		4Q11			3Q11			2Q12			3Q11			2012		2011			2011
SUPPLEMENTAL INFORMATION

TREASURY and CHIEF INVESTMENT OFFICE (“CIO”)
Securities gains (a)	$	459		$	1,013		$	453	$	(13	)	$	459			(55	)%		—	%	$	1,925	$	1,398			38	%
Investment securities portfolio (average)		348,571			359,130			361,601		349,750			324,596			(3	)		7			356,405		324,527			10
Investment securities portfolio (ending)		360,268			348,610			374,588		355,605			330,800			3			9			360,268		330,800			9
Mortgage loans (average)		9,469			11,012			12,636		14,089			13,748			(14	)		(31	)		11,033		12,641			(13	)
Mortgage loans (ending)		8,574			10,332			11,819		13,375			14,226			(17	)		(40	)		8,574		14,226			(40	)

PRIVATE EQUITY
Private equity gains/(losses)
Direct investments
Realized gains/(losses)	$	75		$	(116	)	$	66	$	58		$	394			NM			(81	)	$	25	$	1,784			(99	)
Unrealized gains/(losses) (b)		(140	)		589			179		(122	)		(827	)		NM			83			628		(1,183	)		NM

Total direct investments		(65	)		473			245		(64	)		(433	)		NM			85			653		601			9
Third-party fund investments		(27	)		(9	)		83		(85	)		(7	)		(200	)		(286	)		47		502			(91	)

Total private equity gains/(losses) (c)	$	(92	)	$	464		$	328	$	(149	)	$	(440	)		NM			79		$	700	$	1,103			(37	)


Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	637		$	863		$	889	$	805		$	709			(26	)		(10	)	$	637	$	709			(10	)
Cost		384			436			549		573			779			(12	)		(51	)		384		779			(51	)
Quoted public value		673			909			931		896			778			(26	)		(13	)		673		778			(13	)
Privately-held direct securities
Carrying value		5,313			4,931			4,944		4,597			4,322			8			23			5,313		4,322			23
Cost		6,662			6,362			6,819		6,793			6,556			5			2			6,662		6,556			2
Third-party fund investments (d)
Carrying value		2,119			2,113			2,131		2,283			2,399			—			(12	)		2,119		2,399			(12	)
Cost		2,018			1,952			2,162		2,452			2,454			3			(18	)		2,018		2,454			(18	)

Total private equity portfolio
Carrying value	$	8,069		$	7,907		$	7,964	$	7,685		$	7,430			2			9		$	8,069	$	7,430			9
Cost		9,064			8,750			9,530		9,818			9,789			4			(7	)		9,064		9,789			(7	)

(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 $398 million, $524 million, $571 million, $789 million and $853 million at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively.

Page 35

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION

(in millions)


											Sep 30, 2012 Change
	Sep 30, 2012		Jun 30, 2012		Mar 31, 2012		Dec 31, 2011		Sep 30, 2011		Jun 30, 2012			Sep 30, 2011
CREDIT EXPOSURE
Wholesale (a)
Loans retained	$	297,576	$	298,888	$	283,653	$	278,395	$	255,799		—	%		16	%
Loans held-for-sale and loans at fair value		4,755		3,932		7,213		4,621		3,684		21			29

Total wholesale loans		302,331		302,820		290,866		283,016		259,483		—			17

Consumer, excluding credit card (b)
Loans retained, excluding PCI loans
Home equity		69,686		72,833		75,207		77,800		80,278		(4	)		(13	)
Prime mortgage, including option ARMs		75,636		76,064		76,292		76,196		74,230		(1	)		2
Subprime mortgage		8,552		8,945		9,289		9,664		10,045		(4	)		(15	)
Auto		48,920		48,468		48,245		47,426		46,659		1			5
Business banking		18,568		18,218		17,822		17,652		17,272		2			8
Student and other		12,521		12,907		13,854		14,143		14,492		(3	)		(14	)

Total loans retained, excluding PCI loans		233,883		237,435		240,709		242,881		242,976		(1	)		(4	)
Loans — PCI
Home equity		21,432		21,867		22,305		22,697		23,105		(2	)		(7	)
Prime mortgage		14,038		14,395		14,781		15,180		15,626		(2	)		(10	)
Subprime mortgage		4,702		4,784		4,870		4,976		5,072		(2	)		(7	)
Option ARMs		21,024		21,565		22,105		22,693		23,325		(3	)		(10	)

Total loans — PCI		61,196		62,611		64,061		65,546		67,128		(2	)		(9	)
Total loans retained		295,079		300,046		304,770		308,427		310,104		(2	)		(5	)
Loans held-for-sale (c)		—		—		—		—		131		—			NM

Total consumer, excluding credit card loans		295,079		300,046		304,770		308,427		310,235		(2	)		(5	)


Credit card
Loans retained (d)		124,431		124,593		124,475		132,175		127,041		—			(2	)
Loans held-for-sale		106		112		856		102		94		(5	)		13

Total credit card		124,537		124,705		125,331		132,277		127,135		—			(2	)

Total consumer loans		419,616		424,751		430,101		440,704		437,370		(1	)		(4	)

Total loans		721,947		727,571		720,967		723,720		696,853		(1	)		4

Derivative receivables		79,963		85,543		85,010		92,477		108,853		(7	)		(27	)
Receivables from customers and other (e)		18,946		20,131		21,235		17,561		25,719		(6	)		(26	)


Total credit-related assets		98,909		105,674		106,245		110,038		134,572		(6	)		(27	)
Lending-related commitments
Wholesale		422,557		419,641		401,064		382,739		379,682		1			11
Consumer, excluding credit card		62,183		62,438		63,121		62,307		64,581		—			(4	)
Credit card		534,333		534,267		533,318		530,616		528,830		—			1

Total lending-related commitments		1,019,073		1,016,346		997,503		975,662		973,093		—			5


Total credit exposure	$	1,839,929	$	1,849,591	$	1,824,715	$	1,809,420	$	1,804,518		(1	)		2


Memo: Total by category
Wholesale exposure (f)(g)	$	823,688	$	828,028	$	798,071	$	775,693	$	773,633		(1	)		6
Consumer exposures (h)		1,016,241		1,021,563		1,026,644		1,033,727		1,030,885		(1	)		(1	)

Total credit exposure	$	1,839,929	$	1,849,591	$	1,824,715	$	1,809,420	$	1,804,518		(1	)		2

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

(b)	Includes loans reported in RFS, auto and student loans reported in Card, and residential real estate loans reported in the AM business segment and in Corporate/Private Equity.

(c)	Represents prime mortgages.

(d)	Includes billed finance charges and fees net of an allowance for uncollectible amounts.

(e)	Predominantly includes receivables from customers, which represent margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated Balance Sheets.

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

(g)

Currently, the Firm deems exposures as criticized those that represent a ratings profile similar to a rating of “CCC+/Caa1” and lower as defined by S&P and Moody’s, respectively. The Firm intends to revise, beginning with its disclosures in the Form 10-Q for the quarter ended September 30, 2012, its definition of criticized for wholesale exposures to better align with the banking regulators definition of criticized exposures. The Firm intends to also revise prior period amounts in order to provide comparable information.

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

Page 36

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


																Sep 30, 2012 Change
	Sep 30, 2012			Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2012			Sep 30, 2011
NONPERFORMING ASSETS AND RATIOS
Wholesale
Loans retained	$	1,663		$	1,804		$	1,941		$	2,398		$	3,011			(8	)%		(45	)%
Loans held-for-sale and loans at fair value		246			194			214			183			176			27			40

Total wholesale loans		1,909			1,998			2,155			2,581			3,187			(4	)		(40	)


Consumer, excluding credit card
Home equity (a)(b)		3,254			2,615			2,766			1,287			1,290			24			152
Prime mortgage, including option ARMs (a)		3,570			3,139			3,258			3,462			3,656			14			(2	)
Subprime mortgage (a)		1,868			1,544			1,569			1,781			1,932			21			(3	)
Auto (a)		172			101			102			118			114			70			51
Business banking		521			587			649			694			756			(11	)		(31	)
Student and other		75			83			105			69			68			(10	)		10

Total consumer, excluding credit card		9,460			8,069			8,449			7,411			7,816			17			21

Total credit card		1			1			1			1			2			—			(50	)


Total consumer nonaccrual loans (c)		9,461			8,070			8,450			7,412			7,818			17			21

Total nonaccrual loans		11,370			10,068			10,605			9,993			11,005			13			3


Derivative receivables (d)		282			451			317			297			285			(37	)		(1	)
Assets acquired in loan satisfactions		829			878			1,031			1,025			1,178			(6	)		(30	)

Total nonperforming assets (e)		12,481			11,397			11,953			11,315			12,468			10			—
Wholesale lending-related commitments (f)		586			565			756			865			705			4			(17	)

Total (e)	$	13,067		$	11,962		$	12,709		$	12,180		$	13,173			9			(1	)


Total nonaccrual loans to total loans		1.57	%		1.38	%		1.47	%		1.38	%		1.58	%
Total wholesale nonaccrual loans to total wholesale loans		0.63			0.66			0.74			0.91			1.23
Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans		3.21			2.69			2.77			2.40			2.52

NONPERFORMING ASSETS BY LOB
Investment Bank (d)	$	1,153		$	1,334		$	1,273		$	1,573		$	1,782			(14	)		(35	)
Retail Financial Services (a)(b)(c)		9,812			8,547			9,008			7,961			8,444			15			16
Card Services & Auto (a)		284			219			242			228			232			30			22
Commercial Banking		908			953			1,064			1,138			1,611			(5	)		(44	)
Treasury & Securities Services		7			4			5			4			3			75			133
Asset Management (d)		242			271			286			336			322			(11	)		(25	)
Corporate/Private Equity (g)		75			69			75			75			74			9			1

TOTAL	$	12,481		$	11,397		$	11,953		$	11,315		$	12,468			10			—

(a)

Nonperforming assets at September 30, 2012, included $1.7 billion, consisting of $820 million of home equity loans, $481 million of prime mortgage, including option ARM loans, $356 million of subprime mortgage loans, and $65 million of auto loans, reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be reported as nonaccrual loans, regardless of their delinquency status.

(b)

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

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

(d)	Prior to the first quarter of 2012, reported amounts had only included defaulted derivatives; beginning with the first quarter of 2012, reported amounts include both defaulted derivatives as well as derivatives that have been risk rated as nonperforming.

(e)

At September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $11.0 billion, $11.9 billion, $11.8 billion, $11.5 billion and $9.5 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $1.5 billion, $1.3 billion, $1.2 billion, $954 million and $2.4 billion, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $536 million, $547 million, $586 million, $551 million and $567 million, respectively, that are 90 or more days past due. These amounts were excluded from nonaccrual loans as reimbursement of insured amounts is proceeding normally. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

(f)	Represent commitments that are risk rated as nonaccrual.

(g)	Predominantly relates to retained prime mortgage loans.

Page 37

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
GROSS CHARGE-OFFS
Wholesale loans	$	48		$	73		$	92		$	431		$	98			(34	)%		(51	)%	$	213		$	485			(56	)%
Consumer loans, excluding credit card (a)		1,813			1,054			1,134			1,310			1,292			72			40			4,001			4,109			(3	)
Credit card loans		1,284			1,583			1,627			1,641			1,765			(19	)		(27	)		4,494			6,527			(31	)

Total consumer loans		3,097			2,637			2,761			2,951			3,057			17			1			8,495			10,636			(20	)

Total loans	$	3,145		$	2,710		$	2,853		$	3,382		$	3,155			16			—		$	8,708		$	11,121			(22	)


GROSS RECOVERIES
Wholesale loans	$	82		$	64		$	87		$	85		$	249			28			(67	)	$	233		$	391			(40	)
Consumer loans, excluding credit card		125			130			138			139			133			(4	)		(6	)		393			408			(4	)
Credit card loans		168			238			241			251			266			(29	)		(37	)		647			992			(35	)

Total consumer loans		293			368			379			390			399			(20	)		(27	)		1,040			1,400			(26	)

Total loans	$	375		$	432		$	466		$	475		$	648			(13	)		(42	)	$	1,273		$	1,791			(29	)


NET CHARGE-OFFS/(RECOVERIES)
Wholesale loans	$	(34	)	$	9		$	5		$	346		$	(151	)		NM			77		$	(20	)	$	94			NM
Consumer loans, excluding credit card (a)		1,688			924			996			1,171			1,159			83			46			3,608			3,701			(3	)
Credit card loans		1,116			1,345			1,386			1,390			1,499			(17	)		(26	)		3,847			5,535			(30	)

Total consumer loans		2,804			2,269			2,382			2,561			2,658			24			5			7,455			9,236			(19	)

Total loans	$	2,770		$	2,278		$	2,387		$	2,907		$	2,507			22			10		$	7,435		$	9,330			(20	)


NET CHARGE-OFF/(RECOVERY) RATES
Wholesale retained loans		(0.05	)%		0.01	%		0.01	%		0.52	%		(0.24	)%								(0.01	)%		0.05	%
Consumer retained loans, excluding credit card (a)		2.26			1.23			1.31			1.50			1.47									1.59			1.56
Credit card retained loans		3.57			4.35			4.40			4.29			4.70									4.11			5.83
Total retained loans		1.53			1.27			1.35			1.64			1.44									1.39			1.83
Consumer retained loans, excluding credit card and PCI loans (a)		2.85			1.55			1.66			1.91			1.88									2.02			1.99
Consumer retained loans, excluding PCI loans (a)		3.10			2.51			2.60			2.74			2.84									2.74			3.29
Total retained loans, excluding PCI loans		1.68			1.40			1.49			1.81			1.60									1.52			2.03

Memo: Average retained loans
Wholesale loans	$	297,369		$	292,942		$	276,764		$	265,758		$	250,145			2			19		$	289,055		$	238,153			21

Consumer retained loans, excluding credit card		297,472			302,523			306,657			308,980			312,341			(2	)		(5	)		302,200			318,012			(5	)
Credit card retained loans		124,230			124,413			126,795			128,522			126,535			—			(2	)		125,143			126,933			(1	)

Total average retained consumer loans		421,702			426,936			433,452			437,502			438,876			(1	)		(4	)		427,343			444,945			(4	)

Total average retained loans	$	719,071		$	719,878		$	710,216		$	703,260		$	689,021			—			4		$	716,398		$	683,098			5

Consumer retained loans, excluding credit card and PCI loans	$	235,713		$	239,210		$	241,885		$	242,670		$	244,337			(1	)		(4	)	$	238,924		$	248,226			(4	)
Consumer retained loans, excluding PCI loans		359,943			363,623			368,679			371,192			370,872			(1	)		(3	)		364,067			375,159			(3	)
Total retained loans, excluding PCI loans		657,293			656,547			645,423			636,923			620,974			—			6			653,103			613,263			6

(a)

Charge-offs and net charge-off rates for the three and nine months ended September 30, 2012 included an incremental $825 million for residential real estate loans and an incremental $55 million for auto loans reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be charged-off to their collateral value, regardless of their delinquency status. Excluding these incremental charge-offs, consumer retained loans, excluding credit card, consumer retained loans, excluding credit card and PCI loans, and consumer retained loans, excluding PCI loans net charge-off rates would have been 1.08%, 1.36% and 2.13%, respectively, for the three months ended September 30, 2012.

Page 38

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	23,791		$	25,871		$	27,609		$	28,350		$	28,520			(8	)%		(17	)%	$	27,609		$	32,266			(14	)%
Net charge-offs		2,770			2,278			2,387			2,907			2,507			22			10			7,435			9,330			(20	)
Provision for loan losses		1,801			200			646			2,193			2,351			NM			(23	)		2,647			5,419			(51	)
Other		2			(2	)		3			(27	)		(14	)		NM			NM			3			(5	)		NM

Ending balance	$	22,824		$	23,791		$	25,871		$	27,609		$	28,350			(4	)		(19	)	$	22,824		$	28,350			(19	)


ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	764		$	750		$	673		$	686		$	626			2			22		$	673		$	717			(6	)
Provision for lending-related commitments		(12	)		14			80			(9	)		60			NM			NM			82			(29	)		NM
Other		—			—			(3	)		(4	)		—			—			—			(3	)		(2	)		(50	)

Ending balance	$	752		$	764		$	750		$	673		$	686			(2	)		10		$	752		$	686			10


ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,385		$	1,419		$	1,386		$	1,436		$	1,337			(2	)		4		$	1,385		$	1,337			4
Retail Financial Services		11,997			12,897			14,247			15,247			15,479			(7	)		(22	)		11,997			15,479			(22	)
Card Services & Auto		6,457			6,508			7,261			8,009			8,537			(1	)		(24	)		6,457			8,537			(24	)
Commercial Banking		2,653			2,638			2,662			2,603			2,671			1			(1	)		2,653			2,671			(1	)
Treasury & Securities Services		74			79			69			65			49			(6	)		51			74			49			51
Asset Management		229			220			209			209			240			4			(5	)		229			240			(5	)
Corporate/Private Equity		29			30			37			40			37			(3	)		(22	)		29			37			(22	)

Total	$	22,824		$	23,791		$	25,871		$	27,609		$	28,350			(4	)		(19	)	$	22,824		$	28,350			(19	)

Page 39

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


																Sep 30, 2012 Change
	Sep 30, 2012			Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2012			Sep 30, 2011
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset-specific	$	388		$	407		$	448		$	516		$	670			(5	)%		(42	)%
Formula-based		3,945			3,942			3,875			3,800			3,632			—			9

Total wholesale		4,333			4,349			4,323			4,316			4,302			—			1

Consumer, excluding credit card
Asset-specific		918			1,004			760			828			1,016			(9	)		(10	)
Formula-based		6,359			7,228			8,826			9,755			10,563			(12	)		(40	)
PCI		5,711			5,711			5,711			5,711			4,941			—			16

Total consumer, excluding credit card		12,988			13,943			15,297			16,294			16,520			(7	)		(21	)

Credit card
Asset-specific		1,909			1,977			2,402			2,727			3,052			(3	)		(37	)
Formula-based		3,594			3,522			3,849			4,272			4,476			2			(20	)

Total credit card		5,503			5,499			6,251			6,999			7,528			—			(27	)

Total consumer		18,491			19,442			21,548			23,293			24,048			(5	)		(23	)

Total allowance for loan losses		22,824			23,791			25,871			27,609			28,350			(4	)		(19	)
Allowance for lending-related commitments		752			764			750			673			686			(2	)		10

Total allowance for credit losses	$	23,576		$	24,555		$	26,621		$	28,282		$	29,036			(4	)		(19	)


CREDIT RATIOS
Wholesale allowance to total wholesale retained loans		1.46	%		1.46	%		1.52	%		1.55	%		1.68	%
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		4.40			4.65			5.02			5.28			5.33
Credit card allowance to total credit card retained loans		4.42			4.41			5.02			5.30			5.93
Total allowance to total retained loans		3.18			3.29			3.63			3.84			4.09
Wholesale allowance to wholesale retained nonaccrual loans		261			241			223			180			143
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (a)(b)		137			173			181			220			211
Allowance, excluding credit card allowance, to retained non-accrual loans, excluding credit card nonaccrual loans (a)(b)		156			185			189			210			192
Total allowance to total retained nonaccrual loans (b)		205			241			249			281			262

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		3.11			3.47			3.98			4.36			4.77
Total allowance to total retained loans		2.61			2.74			3.11			3.35			3.74
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (a)(b)		77			102			113			143			148
Allowance, excluding credit card allowance, to retained non-accrual loans, excluding credit card nonaccrual loans (a)(b)		104			127			134			152			147
Total allowance to total retained nonaccrual loans (b)		154			183			194			223			216

(a)

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

(b)

Nonaccrual loans at September 30, 2012 included $1.7 billion of loans reported in accordance with regulatory guidance requiring loans discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower to be reported as nonaccrual loans, regardless of their delinquency status. Nonaccrual loans also included $1.3 billion, $1.5 billion and $1.6 billion of performing junior liens that are subordinate to senior liens that were 90 days or more past due at September 30, 2012, June 30, 2012 and March 31, 2012, respectively. Of these totals, $1.2 billion, $1.3 billion and $1.4 billion were current at the respective period ends. Beginning March 31, 2012, such junior liens are reported as nonaccrual loans based upon regulatory guidance issued in the first quarter of 2012. Excluding the incremental nonaccrual loans resulting from the guidance noted, the total allowance to total retained nonaccrual loans ratio at September 30, 2012, June 30, 2012 and March 31, 2012, would have been 282%, 283% and 293%, respectively, and the total allowance to total retained nonaccrual loans excluding PCI loans would have been 211%, 215% and 228% for the same periods, respectively.

Page 40

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
PROVISION FOR CREDIT LOSSES BY LINE OF BUSINESS
Provision for loan losses
Investment Bank	$	(50	)	$	21		$	(85	)	$	298		$	(7	)		NM	%		NM	%	$	(114	)	$	(558	)		80	%
Retail Financial Services		631			(555	)		(96	)		777			1,027			NM			(39	)		(20	)		3,220			NM
Card Services & Auto		1,231			734			738			1,061			1,264			68			(3	)		2,703			2,561			6
Commercial Banking		(4	)		(31	)		72			29			73			87			NM			37			197			(81	)
Treasury & Securities Services		(12	)		10			4			16			(25	)		NM			52			2			(13	)		NM
Asset Management		15			33			21			23			26			(55	)		(42	)		69			38			82
Corporate/Private Equity		(10	)		(12	)		(8	)		(11	)		(7	)		17			(43	)		(30	)		(26	)		(15	)

Total provision for loan losses	$	1,801		$	200		$	646		$	2,193		$	2,351			NM			(23	)	$	2,647		$	5,419			(51	)


Provision for lending-related commitments
Investment Bank	$	2		$	—		$	80		$	(26	)	$	61			NM			(97	)	$	82		$	—			NM
Retail Financial Services		—			—			—			2			—			—			—			—			—			—
Card Services & Auto		—			—			—			(1	)		—			—			—			—			—			—
Commercial Banking		(12	)		14			5			11			(6	)		NM			(100	)		7			(29	)		NM
Treasury & Securities Services		—			(2	)		(2	)		3			5			NM			NM			(4	)		(5	)		20
Asset Management		(1	)		1			(2	)		1			—			NM			NM			(2	)		5			NM
Corporate/Private Equity		(1	)		1			(1	)		1			—			NM			NM			(1	)		—			NM

Total provision for lending-related commitments	$	(12	)	$	14		$	80		$	(9	)	$	60			NM			NM		$	82		$	(29	)		NM


Provision for credit losses
Investment Bank	$	(48	)	$	21		$	(5	)	$	272		$	54			NM			NM		$	(32	)	$	(558	)		94
Retail Financial Services		631			(555	)		(96	)		779			1,027			NM			(39	)		(20	)		3,220			NM
Card Services & Auto		1,231			734			738			1,060			1,264			68			(3	)		2,703			2,561			6
Commercial Banking		(16	)		(17	)		77			40			67			6			NM			44			168			(74	)
Treasury & Securities Services		(12	)		8			2			19			(20	)		NM			40			(2	)		(18	)		89
Asset Management		14			34			19			24			26			(59	)		(46	)		67			43			56
Corporate/Private Equity		(11	)		(11	)		(9	)		(10	)		(7	)		—			(57	)		(31	)		(26	)		(19	)

Total provision for credit losses	$	1,789		$	214		$	726		$	2,184		$	2,411			NM			(26	)	$	2,729		$	5,390			(49	)




PROVISION FOR CREDIT LOSSES BY PORTFOLIO SEGMENT
Provision for loan losses
Wholesale	$	(52	)	$	30		$	8		$	364		$	67			NM			NM		$	(14	)	$	(347	)		96
Consumer, excluding credit card		737			(425	)		2			939			1,285			NM			(43	)		314			3,731			(92	)
Credit card		1,116			595			636			890			999			88			12			2,347			2,035			15

Total consumer		1,853			170			638			1,829			2,284			NM			(19	)		2,661			5,766			(54	)

Total provision for loan losses	$	1,801		$	200		$	646		$	2,193		$	2,351			NM			(23	)	$	2,647		$	5,419			(51	)


Provision for lending-related commitments
Wholesale	$	(11	)	$	13		$	81		$	(11	)	$	60			NM			NM		$	83		$	(29	)		NM
Consumer, excluding credit card		(1	)		1			(1	)		2			—			NM			NM			(1	)		—			NM
Credit card		—			—			—			—			—			—			—			—			—			—

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

Total provision for lending-related commitments	$	(12	)	$	14		$	80		$	(9	)	$	60			NM			NM		$	82		$	(29	)		NM


Provision for credit losses
Wholesale	$	(63	)	$	43		$	89		$	353		$	127			NM			NM		$	69		$	(376	)		NM
Consumer, excluding credit card		736			(424	)		1			941			1,285			NM			(43	)		313			3,731			(92	)
Credit card		1,116			595			636			890			999			88			12			2,347			2,035			15

Total consumer		1,852			171			637			1,831			2,284			NM			(19	)		2,660			5,766			(54	)

Total provision for credit losses	$	1,789		$	214		$	726		$	2,184		$	2,411			NM			(26	)	$	2,729		$	5,390			(49	)

Page 41

JPMORGAN CHASE & CO.

MARKET RISK-RELATED INFORMATION

(in millions)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
95% CONFIDENCE LEVEL- AVERAGE TOTAL IB TRADING VAR, CREDIT PORTFOLIO VAR AND OTHER VAR
IB VaR by risk type:
Fixed income	$	118	(f)	$	66		$	60		$	56		$	48			79	%		146	%	$	81		$	47			72	%
Foreign exchange		10			10			11			12			10			—			—			10			10			—
Equities		19			20			17			19			19			(5	)		—			19			24			(21	)
Commodities and other		13			13			21			20			15			—			(13	)		16			15			7
Diversification benefit to IB trading VaR (a)		(48	)		(44	)		(46	)		(50	)		(39	)		(9	)		(23	)		(46	)		(38	)		(21	)

IB trading VaR (b)		112			65			63			57			53			72			111			80			58			38

Credit portfolio VaR (c)		22			25			32			39			38			(12	)		(42	)		26			30			(13	)
Diversification benefit to IB trading and credit portfolio VaR (a)		(12	)		(15	)		(14	)		(21	)		(21	)		20			43			(13	)		(11	)		(18	)

Total IB trading and credit portfolio VaR		122	(f)		75			81			75			70			63			74			93			77			21


Other VaR:
Mortgage Production and Servicing VaR (d)		17			15			11			44			40			13			(58	)		14			25			(44	)
Chief Investment Office VaR		54	(f)		177			129	(g)		69			48			(69	)		13			120	(g)		53			126
Diversification benefit to total other VaR (a)		(10	)		(10	)		(4	)		(30	)		(15	)		—			33			(8	)		(13	)		38

Total other VaR		61			182			136			83			73			(66	)		(16	)		126			65			94


Diversification benefit to total IB and other VaR (a)		(68	)		(56	)		(47	)		(45	)		(35	)		(21	)		(94	)		(57	)		(45	)		(27	)

Total VaR (e)	$	115	(f)	$	201		$	170		$	113		$	108			(43	)		6		$	162		$	97			67

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

(b)	For further information on IB trading VaR, see footnote (b) on page 12.

(c)	For further information on Credit portfolio VaR see footnote (c) on page 12.

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

(e)

Total IB, Credit portfolio and other VaR does not include the retained Credit portfolio, which is not reported at fair value; however, it does include hedges of those positions. It also does not include DVA on derivative and structured liabilities to reflect the credit quality of the Firm, principal investments (mezzanine financing, tax-oriented investments, etc.), certain securities and investments held by Corporate/Private Equity, capital management positions and longer-term investments managed by CIO.

(f)

On July 2, 2012, CIO transferred its synthetic credit portfolio, other than a portion aggregating to approximately $12 billion notional, to the IB; CIO’s retained portfolio was effectively closed out during the three months ended September 30, 2012. During the third quarter of 2012, the Firm applied a new VaR model to calculate VaR for the synthetic credit portfolio. The Firm believes this new model, which was applied to both the portion of the synthetic credit portfolio held by the IB, as well as the portion that was retained by CIO, more appropriately captures the risks of the portfolio. This new VaR model resulted in a reduction to average fixed income VaR of $26 million, average total IB trading and credit portfolio VaR of $28 million, average CIO VaR of $17 million, and average total VaR of $36 million for the three months ended September 30, 2012. Prior period VaR results have not been recalculated using the new model.

(g)	On August 9, 2012, the Firm restated its 2012 first quarter financial statements. See the Firm’s Form 10-Q/A for the quarter ended March 31, 2012 for further information on the restatement. The CIO VaR amount for the first quarter of 2012 has not been recalculated to reflect the restatement.

Page 42

JPMORGAN CHASE & CO.

CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS

(in millions, except ratio data)


																Sep 30, 2012 Change						NINE MONTHS ENDED SEPTEMBER 30,
	Sep 30, 2012			Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2012			Sep 30, 2011									2012 Change
	Sep 30, 2012			Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2012			Sep 30, 2011			2012			2011			2011
CAPITAL (based on Basel I)
Tier 1 capital	$	154,697	(e)(f)	$	148,425	(g)	$	155,352		$	150,384		$	147,823			4	%		5	%	$	154,697	(e)(f)	$	147,823			5	%
Total capital		190,509	(e)		185,134			193,476			188,088			186,510			3			2			190,509	(e)		186,510			2
Tier 1 common capital (a)		135,071	(e)		130,095			127,642			122,916			120,234			4			12			135,071	(e)		120,234			12
Risk-weighted assets		1,297,524	(e)(h)		1,318,734	(h)		1,300,185	(h)		1,221,198			1,217,548			(2	)		7			1,297,524	(e)(h)		1,217,548			7
Adjusted average assets (b)		2,186,292	(e)		2,202,487			2,195,625			2,202,087			2,168,678			(1	)		1			2,186,292	(e)		2,168,678			1
Tier 1 capital ratio		11.9	(e)(f)%		11.3	%		11.9	%		12.3	%		12.1	%								11.9	(e)(f)%		12.1	%
Total capital ratio		14.7	(e)		14.0			14.9			15.4			15.3									14.7	(e)		15.3
Tier 1 leverage ratio		7.1	(e)		6.7			7.1			6.8			6.8									7.1	(e)		6.8
Tier 1 common capital ratio (a)		10.4	(e)		9.9			9.8			10.1			9.9									10.4	(e)		9.9

TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity	$	190,635		$	183,772		$	181,469		$	175,773		$	174,487			4			9		$	190,635		$	174,487			9
Less: Goodwill		48,178			48,131			48,208			48,188			48,180			—			—			48,178			48,180			—
Less: Other intangible assets		2,641			2,813			3,029			3,207			3,396			(6	)		(22	)		2,641			3,396			(22	)
Add: Deferred tax liabilities (d)		2,780			2,749			2,719			2,729			2,645			1			5			2,780			2,645			5

Total tangible common equity	$	142,596		$	135,577		$	132,951		$	127,107		$	125,556			5			14		$	142,596		$	125,556			14


TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity	$	186,590		$	181,021		$	177,711		$	175,042		$	174,454			3			7		$	181,791		$	172,667			5
Less: Goodwill		48,158			48,157			48,218			48,225			48,631			—			(1	)		48,178			48,770			(1	)
Less: Other intangible assets		2,729			2,923			3,137			3,326			3,545			(7	)		(23	)		2,928			3,736			(22	)
Add: Deferred tax liabilities (d)		2,765			2,734			2,724			2,687			2,639			1			5			2,741			2,617			5

Total tangible common equity	$	138,468		$	132,675		$	129,080		$	126,178		$	124,917			4			11		$	133,426		$	122,778			9


INTANGIBLE ASSETS (period-end)
Goodwill	$	48,178		$	48,131		$	48,208		$	48,188		$	48,180			—			—		$	48,178		$	48,180			—
Mortgage servicing rights		7,080			7,118			8,039			7,223			7,833			(1	)		(10	)		7,080			7,833			(10	)
Purchased credit card relationships		409			466			535			602			668			(12	)		(39	)		409			668			(39	)
All other intangibles		2,232			2,347			2,494			2,605			2,728			(5	)		(18	)		2,232			2,728			(18	)

Total intangibles	$	57,899		$	58,062		$	59,276		$	58,618		$	59,409			—			(3	)	$	57,899		$	59,409			(3	)


DEPOSITS (period-end)
U.S. offices:
Noninterest-bearing	$	363,388		$	348,510		$	343,299		$	346,670		$	323,058			4			12		$	363,388		$	323,058			12
Interest-bearing		509,407			506,656			521,323			504,864			484,640			1			5			509,407			484,640			5
Non-U.S. offices:
Noninterest-bearing		16,192			17,123			16,276			18,790			14,724			(5	)		10			16,192			14,724			10
Interest-bearing		250,624			243,597			247,614			257,482			270,286			3			(7	)		250,624			270,286			(7	)

Total deposits	$	1,139,611		$	1,115,886		$	1,128,512		$	1,127,806		$	1,092,708			2			4		$	1,139,611		$	1,092,708			4

(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 the Tier 1 common capital ratio, see page 46.

(b)

Adjusted average assets, for purposes of calculating the leverage ratio, includes 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 certain equity investments that are subject to deductions from Tier 1 capital.

(c)	For further discussion of TCE, see page 46.

(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.

(f)	At September 30, 2012, TruPS included in Tier 1 capital were $10.2 billion. Had these securities been excluded from the calculation at September 30, 2012, Tier 1 capital would have been $144.5 billion and the Tier 1 capital ratio would have been 11.1%.

(g)	Approximately $9 billion of outstanding TruPS were excluded from Tier 1 capital as of June 30, 2012, since these securities were redeemed on July 12, 2012.

(h)	As discussed in JPMorgan Chase’s second quarter 2012 Form 10-Q, the Firm’s risk-weighted assets include an adjustment to reflect regulatory guidance for a limited number of market risk models used for certain positions held by the Firm, including the synthetic credit portfolio.

Page 43

JPMORGAN CHASE & CO.

MORTGAGE REPURCHASE LIABILITY

(in millions)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
MORTGAGE REPURCHASE LIABILITY (a)(b)
Summary of changes in mortgage repurchase liability:
Repurchase liability at beginning of period	$	3,293		$	3,516		$	3,557		$	3,616		$	3,631			(6	)%		(9	)%	$	3,557		$	3,285			8	%
Realized losses (c)		(268	)		(259	)		(364	)		(462	)		(329	)		(3	)		19			(891	)		(801	)		(11	)
Provision (d)		74			36			323			403			314			106			(76	)		433			1,132			(62	)

Repurchase liability at end of period	$	3,099	(h)	$	3,293		$	3,516		$	3,557		$	3,616			(6	)		(14	)	$	3,099		$	3,616			(14	)


Outstanding repurchase demands and unresolved mortgage insurance rescission notices by counterparty type: (e)
GSEs	$	1,533		$	1,646		$	1,868		$	1,682		$	1,666			(7	)		(8	)	$	1,533		$	1,666			(8	)
Mortgage insurers		1,036			1,004			1,000			1,034			1,112			3			(7	)		1,036			1,112			(7	)
Other (f)		1,697			981			756			663			467			73			263			1,697			467			263
Overlapping population (g)		(150	)		(125	)		(116	)		(113	)		(155	)		(20	)		3			(150	)		(155	)		3

Total	$	4,116		$	3,506		$	3,508		$	3,266		$	3,090			17			33		$	4,116		$	3,090			33


Quarterly mortgage repurchase demands received by loan origination vintage: (e)
Pre-2005	$	33		$	28		$	41		$	39		$	34			18			(3	)	$	102		$	81			26
2005		103			65			95			55			200			58			(49	)		263			302			(13	)
2006		963			506			375			315			232			90			315			1,844			753			145
2007		371			420			645			804			602			(12	)		(38	)		1,436			1,493			(4	)
2008		196			311			361			291			323			(37	)		(39	)		868			873			(1	)
Post-2008		124			191			124			81			153			(35	)		(19	)		439			336			31

Total	$	1,790		$	1,521		$	1,641		$	1,585		$	1,544			18			16		$	4,952		$	3,838			29

(a)

For further details regarding the Firm’s mortgage repurchase liability, see Mortgage repurchase liability on pages 115-118 and Note 29 on pages 283-289 of JPMorgan Chase’s 2011 Annual Report; and Mortgage repurchase liability on pages 56-59 and Note 21 on pages 192-196 of JPMorgan Chase’s second quarter 2012 Form 10-Q.

(b)	Mortgage repurchase demands associated with private-label securitizations are separately evaluated by the Firm in establishing its litigation reserves.

(c)

Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expense. Make-whole settlements were $94 million, $107 million, $186 million, $237 million and $162 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $387 million and $403 million for the nine months ended September 30, 2012 and 2011, respectively.

(d)

Includes $30 million, $28 million, $27 million, $17 million and $12 million of provision related to new loan sales for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and $85 million and $35 million for the nine months ended September 30, 2012 and 2011, respectively.

(e)	Excludes amounts related to Washington Mutual.

(f)

Represents repurchase demands received from parties other than the GSEs that have been presented to the Firm by trustees who assert authority to present such claims under the terms of the underlying sale or securitization agreement, and excludes repurchase demands asserted in or in connection with litigation.

(g)	Because the GSEs and others 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 outstanding repurchase demand.

(h)	Includes $3 million at September 30, 2012 related to future repurchase demands on loans sold by Washington Mutual to the GSEs.

Page 44

JPMORGAN CHASE & CO.

PER SHARE-RELATED INFORMATION

(in millions, except per share and ratio data)


	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																3Q12 Change												2012 Change
	3Q12			2Q12			1Q12			4Q11			3Q11			2Q12			3Q11			2012			2011			2011
EARNINGS PER SHARE DATA
Basic earnings per share:
Net income	$	5,708		$	4,960		$	4,924		$	3,728		$	4,262			15	%		34	%	$	15,592		$	15,248			2	%
Less: Preferred stock dividends		163			158			157			157			157			3			4			478			472			1

Net income applicable to common equity		5,545			4,802			4,767			3,571			4,105			15			35			15,114			14,776			2
Less: Dividends and undistributed earnings allocated to participating securities		199			168			190			146			169			18			18			558			635			(12	)

Net income applicable to common stockholders	$	5,346		$	4,634		$	4,577		$	3,425		$	3,936			15			36		$	14,556		$	14,141			3


Total weighted-average basic shares outstanding		3,803.3			3,808.9			3,818.8			3,801.9			3,859.6			—			(1	)		3,810.4			3,933.2			(3	)

Net income per share	$	1.41		$	1.22		$	1.20		$	0.90		$	1.02			16			38		$	3.82		$	3.60			6


Diluted earnings per share:
Net income applicable to common stockholders	$	5,346		$	4,634		$	4,577		$	3,425		$	3,936			15			36		$	14,556		$	14,141			3

Total weighted-average basic shares outstanding		3,803.3			3,808.9			3,818.8			3,801.9			3,859.6			—			(1	)		3,810.4			3,933.2			(3	)
Add: Employee stock options, SARs and warrants (a)		10.6			11.6			14.6			9.8			12.6			(9	)		(16	)		12.2			23.3			(48	)

Total weighted-average diluted shares outstanding (b)		3,813.9			3,820.5			3,833.4			3,811.7			3,872.2			—			(2	)		3,822.6			3,956.5			(3	)
Net income per share	$	1.40		$	1.21		$	1.19		$	0.90		$	1.02			16			37		$	3.81		$	3.57			7


COMMON SHARES OUTSTANDING
Common shares - at period end		3,799.6			3,796.8			3,822.0			3,772.7			3,798.9			—			—			3,799.6			3,798.9			—
Cash dividends declared per share (c)	$	0.30		$	0.30		$	0.30		$	0.25		$	0.25			—			20		$	0.90		$	0.75			20
Book value per share		50.17			48.40			47.48			46.59			45.93			4			9			50.17			45.93			9
Dividend payout ratio		21	%		24	%		25	%		27	%		24	%								23	%		21	%

SHARE PRICE (c)
High	$	42.09		$	46.35		$	46.49		$	37.54		$	42.55			(9	)		(1	)	$	46.49		$	48.36			(4	)
Low		33.10			30.83			34.01			27.85			28.53			7			16			30.83			28.53			8
Close		40.48			35.73			45.98			33.25			30.12			13			34			40.48			30.12			34
Market capitalization		153,806			135,661			175,737			125,442			114,422			13			34			153,806			114,422			34

COMMON EQUITY REPURCHASE PROGRAM (d)
Aggregate common equity repurchased	$	—		$	1,437.4	(e)	$	216.1		$	863.8		$	4,424.9	(e)		NM			NM		$	1,653.5	(e)	$	7,999.7	(e)		(79	)
Common equity repurchased		—			46.5	(e)		5.5			27.2			127.4	(e)		NM			NM			52.0	(e)		209.8	(e)		(75	)
Average purchase price	$	—		$	30.88	(e)	$	39.49		$	31.75		$	34.72	(e)		NM			NM		$	31.79	(e)	$	38.12	(e)		(17	)

(a)

Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock. The aggregate number of shares issuable upon the exercise of such options and warrants was 147 million, 159 million, 169 million, 197 million and 197 million for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively, and 158 million and 112 million for the nine months ended September 30, 2012 and 2011, 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)	For additional information on the dividends, listing and trading of JPMorgan Chase’s common stock, see page 2.

(d)

On March 13, 2012, the Board of Directors authorized a new $15 billion common equity (i.e., common stock and warrants) repurchase program, of which up to $12 billion is approved for repurchase in 2012 and up to an additional $3 billion is approved through the end of the first quarter of 2013. The new program supersedes a $15 billion repurchase program approved on March 18, 2011. The Firm did not make any repurchases after May 17, 2012.

(e)	Included the impact of aggregate repurchases of 18.5 million and 10.2 million warrants during the three months ended June 30, 2012 and September 30, 2011, respectively.

Page 45

JPMORGAN CHASE & CO.

NON-GAAP FINANCIAL MEASURES

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

(a)

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

(b)

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

(c)

Tangible common equity (“TCE”), ROTCE, and Tier 1 common under Basel I and III rules. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s earnings as a percentage of TCE. Tier 1 common under Basel I and III rules are used by management, along with other capital measures, to assess and monitor the Firm’s capital position. TCE and ROTCE are meaningful to the Firm, as well as analysts and investors, in assessing the Firm’s use of equity. For additional information on Tier 1 common under Basel I and III, see Regulatory capital on pages 119-123 of JPMorgan Chase’s 2011 Annual Report and pages 60-63 of JPMorgan Chase’s second quarter 2012 Form 10-Q. In addition, all of the aforementioned measures are useful to the Firm, as well as analysts and investors, in facilitating comparisons with competitors.

(d)	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.

(e)

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

(f)

Adjusted assets equals total assets minus: (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased; (2) assets of consolidated VIEs; (3) cash and securities segregated and on deposit for regulatory and other purposes; (4) goodwill and intangibles; and (5) securities received as collateral. The amount of adjusted assets is presented to assist the reader in comparing IB’s asset and capital levels with those of other investment banks in the securities industry. Assets-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 are considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.

(g)

Investment Bank uses the return on equity (“ROE”) excluding debit valuation adjustments (“DVA”) ratio and compensation expense as a percentage of total net revenue excluding DVA, which exclude the impact of DVA on net income and total net revenue, respectively. These measures are used by management, investors and analysts to assess the underlying performance of the business and for comparability with peers.

Page 46

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 interests 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.

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

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

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

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

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

Purchased credit-impaired (“PCI”) loans: Represents loans that were acquired in the Washington Mutual transaction and deemed to be credit-impaired on the acquisition date in accordance with FASB guidance. The guidance allows purchasers to aggregate credit-impaired loans acquired in the same fiscal quarter into one or more pools, provided that the loans have common risk characteristics (e.g., product type, LTV ratios, FICO scores, past-due status, geographic location). A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows.

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

Charge-offs are not recorded on PCI loans until actual losses exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. PCI loans as well as the related charge-offs and allowance for loan losses are excluded in the calculation of certain net charge-off rates and allowance coverage ratios. To date, no charge-offs have been recorded for these loans.

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.

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 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.

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

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 statistical risk measure used to estimate the potential loss from adverse market movements in a normal market environment based on recent historical market behavior. For additional information, see Value-at-risk on page 158 of JPMorgan Chase’s 2011 Annual Report and page 96 of JPMorgan Chase’s Form 10-Q for the quarterly period ended June 30, 2012.

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 Glossary of Terms on page 311 of JPMorgan Chase’s 2011 Annual Report.

Page 48

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.

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

Credit portfolio revenue includes net interest income, fees and loan sales activity, as well as gains or losses on securities received as part of a loan restructuring, for IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

RETAIL FINANCIAL SERVICES (“RFS”)

Description of selected business metrics within Consumer & Business Banking:

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

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

Client advisors – Investment product specialists, including Private Client Advisors, Financial Advisors, Financial Advisor Associates, Senior Financial Advisors, Independent Financial Advisors and Financial Advisor Associate trainees, who advise clients on investment options, including annuities, mutual funds, stock trading services, etc., sold by the Firm or by third-party vendors through retail branches, Chase Private Client branches and other channels.

Personal bankers – Retail branch office personnel who acquire, retain and expand new and existing customer relationships by assessing customer needs and recommending and selling appropriate banking products and services.

Sales specialists – Retail branch office and field personnel, including Business Bankers, Relationship Managers and Loan Officers, who specialize in marketing and sales of various business banking products (i.e., business loans, letters of credit, deposit accounts, Chase paymentec, etc.) and mortgage products to existing and new clients.

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

RFS (continued)

Mortgage Production and Servicing revenue comprises the following:

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

Net mortgage servicing revenue includes the following components:

Operating revenue comprises:

•

All gross income earned from servicing third-party mortgage loans including stated service fees, excess service fees and other ancillary fees; and

•

Modeled MSR asset amortization (or time decay).

Risk management comprises:

•

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

•

Derivative valuation adjustments and other, which represents changes in the fair value of derivative instruments used to offset the impact of changes in interest rates to the MSR valuation model.

Mortgage origination channels comprise the following:

Retail – Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.

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

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

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

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JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

CARD SERVICES & AUTO (“Card”)

Description of selected business metrics within Card:

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

Open accounts – Cardmember accounts with charging privileges.

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

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

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

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

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

COMMERCIAL BANKING (“CB”)

CB Client Segments:

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

2.	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.

3.	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.

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

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

CB (continued)

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.

2.	Treasury services includes revenue from a broad range of products and services (as defined by Transaction Services and Trade Finance descriptions within TSS line of business metrics) that enable CB clients to manage payments and receipts, as well as invest and manage funds.

Investment banking includes revenue from a range of products providing CB clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through advisory, equity underwriting, and loan syndications. Revenue from Fixed income and Equity market products (as defined by Investment Banking line of business metrics) available to CB clients is also included.

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

Description of selected business metrics within CB:

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

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

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JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

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:

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

2.	Assets under custody represents activities associated with the safekeeping and servicing of assets on which WSS earns fees.

Description of selected products and services within TSS:

1.	Investor Services includes primarily custody, fund accounting and administration, and securities lending products sold principally to asset managers, insurance companies and public and private investment funds.

2.	Clearance, Collateral Management & Depositary Receipts primarily includes broker-dealer clearing and custody services, including tri-party repo transactions, collateral management products, and depositary bank services for American and global depositary receipt programs.

Transaction Services includes a broad range of products and services that enable clients to manage payments and receipts, as well as invest and manage funds. Products include U.S. dollar and multi-currency clearing, ACH, lockbox, disbursement and reconciliation services, check deposits, and currency related services.

4.	Trade Finance enables the management of cross-border trade for bank and corporate clients. Products include loans directly tied to goods crossing borders, export/import loans, commercial letters of credit, standby letters of credit, and supply chain finance.

Pre-provision profit ratio represents total net revenue less total noninterest expense divided by total net revenue. This measure reflects TSS’s operating performance before the impact of credit losses, and is another measure used to compare the performance of TSS versus its competitors.

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.

Assets under supervision – Represent 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 includes 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 includes worldwide investment management services and retirement planning and administration through third-parties and direct distribution of a full range of investment vehicles.

Private Banking includes 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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