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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): April 13, 2012

JPMORGAN CHASE & CO.

(Exact name of registrant as specified in its charter)


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

270 Park Avenue, New York, NY (Address of Principal Executive Offices)		10017 (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 April 13, 2012, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2012 first quarter net income of $5.4 billion, or $1.31 per share, compared with net income of $5.6 billion, or $1.28 per share, in the first quarter of 2011. A copy of the 2012 first quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

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

This Current Report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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, which has been filed with the Securities and Exchange Commission and is 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.

Item 9.01

Financial Statements and Exhibits

(d)

Exhibits


Exhibit No.		Description of Exhibit

12.1		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges
12.2		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1		JPMorgan Chase & Co. Earnings Release – First Quarter 2012 Results
99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement – First 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/ Shannon S. Warren
		Shannon S. Warren

		Managing Director and Corporate Controller
		(Principal Accounting Officer)

Dated: April 13, 2012

INDEX TO EXHIBITS


Exhibit No.		Description of Exhibit

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

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

99.1		JPMorgan Chase & Co. Earnings Release – First Quarter 2012 Results

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

<![CDATA[JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges]]>

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges


Three months ended March 31, (in millions, except ratios)	2012

Excluding interest on deposits
Income before income tax expense	$	7,641

Fixed charges:
Interest expense		2,313
One-third of rents, net of income from subleases (a)		141

Total fixed charges		2,454

Less: Equity in undistributed income of affiliates		(1)


Income before income tax expense and fixed charges, excluding capitalized interest	$	10,094

Fixed charges, as above	$	2,454

Ratio of earnings to fixed charges		4.11


Including interest on deposits
Fixed charges, as above	$	2,454
Add: Interest on deposits		722

Total fixed charges and interest on deposits	$	3,176

Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	10,094

Add: Interest on deposits		722

Total income before income tax expense, fixed charges and interest on deposits	$	10,816

Ratio of earnings to fixed charges		3.41

(a)

The proportion deemed representative of the interest factor.

<![CDATA[JPMorgan Chase & Co. Ratio of Earnings to Fixed Charges & Preferred Stock ]]>

EXHIBIT 12.2

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges

and Preferred Stock Dividend Requirements


Three months ended March 31, (in millions, except ratios)	2012

Excluding interest on deposits
Income before income tax expense	$	7,641

Fixed charges:
Interest expense		2,313
One-third of rents, net of income from subleases (a)		141

Total fixed charges		2,454


Less: Equity in undistributed income of affiliates		(1)

Income before income tax expense and fixed charges, excluding capitalized interest	$	10,094

Fixed charges, as above	$	2,454

Preferred stock dividends (pre-tax)		228

Fixed charges including preferred stock dividends	$	2,682

Ratio of earnings to fixed charges and preferred stock dividend requirements		3.76


Including interest on deposits
Fixed charges including preferred stock dividends, as above	$	2,682
Add: Interest on deposits		722

Total fixed charges including preferred stock dividends and interest on deposits	$	3,404

Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	10,094

Add: Interest on deposits		722

Total income before income tax expense, fixed charges and interest on deposits	$	10,816

Ratio of earnings to fixed charges and preferred stock dividend requirements		3.18

(a)

The proportion deemed representative of the interest factor.

<![CDATA[JPMorgan Chase & Co. Earnings Release - First 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 FIRST-QUARTER 2012 NET INCOME OF

$5.4 BILLION, OR $1.31 PER SHARE

REVENUE¹ OF $27.4 BILLION, UP 24% OVER PRIOR QUARTER,

UP 6% OVER PRIOR YEAR

SUPPORTED CONSUMERS, BUSINESSES AND COMMUNITIES

•

Solid performance across most businesses, with particular strength in Investment Bank and improvement in Mortgage Banking

Investment Bank reported strong performance driven by continued leadership and improved market conditions; maintained #1 ranking for Global Investment Banking Fees year-to-date

Consumer & Business Banking average deposits up 8% and Business Banking loan originations up 8% compared with prior year

Mortgage Banking application volume up 33% compared with prior year

Credit card sales volume² up 12% compared with prior year

Commercial Banking reported seventh consecutive quarter of loan growth, up 16% compared with prior year

Treasury & Securities Services reported record assets under custody of $17.9 trillion, up 8% compared with prior year

Asset Management reported record assets under supervision of $2.0 trillion, up 6% compared with prior year

•

Fortress balance sheet strengthened: Basel I Tier 1 common¹ of $128 billion, or 10.4%; estimated Basel III Tier 1 common¹ of 8.4%

•

Increased quarterly common stock dividend to $0.30 per share; authorized new $15 billion common equity repurchase program, of which up to $12 billion of repurchases is approved for 2012

•

First-quarter results included the following significant items:

$1.8 billion pretax benefit ($0.28 per share after-tax increase in earnings) from reduced loan loss reserves, related to mortgage and credit card

$1.1 billion pretax benefit ($0.17 per share after-tax increase in earnings) from the Washington Mutual bankruptcy settlement, in Corporate

$2.5 billion pretax expense ($0.39 per share after-tax reduction in earnings) for additional litigation reserves, predominantly for mortgage-related matters, in Corporate

$0.9 billion pretax loss ($0.14 per share after-tax reduction in earnings) from debit valuation adjustments (“DVA”) in the Investment Bank, resulting from tightening of the Firm’s credit spreads³


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 13.

²	For notes on financial measures, see pages 13 and 14.

³	Whether positive or negative, the Firm does not consider DVA reflective of the underlying operations of the company.

JPMorgan Chase & Co.

News Release

•

JPMorgan Chase Supported Consumers, Businesses and Our Communities

Provided $62 billion of credit² to consumers in the first quarter

Issued new credit cards to 1.7 million people

Originated over 200,000 mortgages

Provided over $4 billion of credit to U.S. small businesses, up 35% compared with prior year

Provided $118 billion of credit² to corporations in the first quarter

Raised $250 billion of capital for clients in the first quarter

Nearly $13 billion of capital raised for and credit² provided to 780 nonprofit and government entities in the first quarter, including states, municipalities, hospitals and universities

Hired more than 3,400 U.S. veterans since the beginning of 2011

New York, April 13, 2012 — JPMorgan Chase & Co. (NYSE: JPM) today reported first-quarter 2012 net income of $5.4 billion, compared with net income of $5.6 billion in the first quarter of 2011. Earnings per share were $1.31, compared with $1.28 in the first quarter of 2011.

Jamie Dimon, Chairman and Chief Executive Officer, commented on financial results: “The Firm reported strong revenue¹ for the first quarter of 2012 of $27.4 billion, up 24% compared with the prior quarter and up 6% compared with prior year. While several significant items affected our results, overall, the Firm’s performance in the first quarter was solid. The Firm’s return on tangible common equity¹ for the first quarter of 2012 was 16%, compared with 11% in the prior quarter and 18% in the prior year.”

Dimon continued: “We are pleased that our results for the quarter reflected positive credit trends for our consumer real estate and credit card portfolios. Estimated losses declined for these portfolios, and we reduced the related loan loss reserves by a total of $1.8 billion in the first quarter. However, with respect to our Mortgage Banking business, we expect to see elevated levels of costs and losses associated with mortgage-related issues for a while longer. Credit trends across our wholesale portfolios were stable and continued to be strong.”

Commenting on the balance sheet, Dimon said: “We strengthened our fortress balance sheet, ending the first quarter with a strong Basel I Tier 1 common ratio of 10.4%. We estimate that our Basel III Tier 1 common ratio was approximately 8.4% at the end of the first quarter.”

“Our strong balance sheet and earnings power allowed the Board to increase our annual dividend to $1.20 per share and authorize a new $15 billion equity repurchase program. The Company will constantly evaluate its best and highest use of capital. We will repurchase equity as deemed appropriate relative to our organic growth, investment opportunities, capital retention needs and the stock price.”

Dimon added: “JPMorgan Chase positively impacts the lives of millions of people and the communities in which they live. We are serving them each day, putting our resources and our voices to work on their behalf. During the first quarter of 2012, the Firm provided credit² and raised capital of over $445 billion for our commercial and consumer clients. We provided more than $4 billion of credit to U.S. small businesses, up 35% compared with the prior year. We originated more than

JPMorgan Chase & Co.

News Release

200,000 mortgages in the first quarter. To help struggling homeowners, we have offered more than 1.3 million mortgage modifications since 2009, and completed more than 490,000.”

Dimon concluded: “As we look toward the future, we continue to build our businesses by investing in infrastructure, systems, technology, and new products, and by adding bankers and offices around the world. The strengths that are embedded in this company — our people, client relationships, product capabilities, technology, global presence and fortress balance sheet — provide us with a foundation that is rock solid and an ability to thrive regardless of what the future brings.”

In the discussion below of the business segments and of JPMorgan Chase as a Firm, information is presented on a managed basis. For more information about managed basis, as well as other non-GAAP financial measures used by management to evaluate the performance of each line of business, see page 13. The following discussion compares the first quarters of 2012 and 2011 unless otherwise noted.

INVESTMENT BANK (IB)


Results for IB				4Q11		1Q11
($ millions)	1Q12	4Q11	1Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$7,321	$ 4,358	$8,233	$2,963	68%	($912)	(11)%
Provision for Credit Losses	(5)	272	(429)	(277)	NM	424	99
Noninterest Expense	4,738	2,969	5,016	1,769	60	(278)	(6)
Net Income	$1,682	$ 726	$2,370	$ 956	132%	($688)	(29)%

Discussion of Results:

Net income was $1.7 billion, down 29% from the prior year. These results reflected lower net revenue and a lower benefit from the provision for credit losses, partially offset by lower noninterest expense.

Net revenue was $7.3 billion, compared with $8.2 billion in the prior year. Investment banking fees were $1.4 billion (down 23%), which consists of debt underwriting fees of $818 million (down 16%), equity underwriting fees of $276 million (down 27%), and advisory fees of $281 million (down 34%). Combined Fixed Income and Equity Markets revenue was $6.0 billion, down 10% from the prior year. Credit Portfolio reported a loss of $12 million.

Net revenue included a $907 million loss from DVA on certain structured and derivative liabilities resulting from the tightening of the Firm’s credit spreads; this loss was composed of $352 million in Fixed Income Markets, $130 million in Equity Markets and $425 million in Credit Portfolio. Excluding the impact of DVA, net revenue was $8.2 billion and net income was $2.2 billion.

Excluding the impact of DVA, Fixed Income and Equity Markets combined revenue was $6.4 billion, down 3% from the prior year, with continued solid client revenue, and particularly strong results in rates-related and equity products. Excluding the impact of DVA, Credit Portfolio net revenue was $413 million, reflecting net interest income and fees on retained loans, and net credit valuation adjustment (“CVA”) gains.

The provision for credit losses was a benefit of $5 million, compared with a benefit in the prior year of $429 million. The ratio of the allowance for loan losses to end-of-period loans retained was 2.06%, compared with 2.52% in the prior year.

Noninterest expense was $4.7 billion, down 6% from the prior year, driven by lower compensation expense. The ratio of compensation to net revenue was 35%, excluding 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 quarter ended March 31, 2012.

•

Ranked #1 in Global Debt, Equity and Equity-related; #1 in Global Announced M&A; #1 in Global Long-Term Debt; #2 in Global Syndicated Loans; and #3 in Global Equity and Equity-related, based on volume, for the quarter ended March 31, 2012.

•

Return on equity was 17% on $40.0 billion of average allocated capital (23% excluding DVA).

•

End-of-period total loans were $72.7 billion, up 26% from the prior year and 2% from the prior quarter. Nonaccrual loans of $877 million were down 67% from the prior year.

RETAIL FINANCIAL SERVICES (RFS)


Results for RFS				4Q11		1Q11
($ millions)	1Q12	4Q11	1Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$7,649	$6,395	$5,466	$1,254	20%	$2,183	40%
Provision for Credit Losses	(96)	779	1,199	(875)	NM	(1,295)	NM
Noninterest Expense	5,009	4,722	4,900	287	6	109	2%
Net Income/(Loss)	$1,753	$ 533	($399)	$1,220	229%	$2,152	NM

Discussion of Results:

Net income was $1.8 billion, compared with a net loss of $399 million in the prior year.

Net revenue was $7.6 billion, an increase of $2.2 billion, or 40%, compared with the prior year. Net interest income was $3.9 billion, down by $161 million, or 4%, largely reflecting lower loan balances due to portfolio runoff. Noninterest revenue was $3.7 billion, an increase of $2.3 billion, driven by higher mortgage fees and related income, partially offset by lower debit card revenue.

The provision for credit losses was a benefit of $96 million compared with provision expense of $1.2 billion in the prior year and $779 million in the prior quarter. The current-quarter provision reflected lower net charge-offs and a $1.0 billion reduction of the allowance for loan losses, due to lower estimated losses as mortgage delinquency trends improved. The prior-year provision for credit losses reflected higher net charge-offs; the prior-quarter provision reflected a net reduction of $230 million in the allowance for loan losses.

Noninterest expense was $5.0 billion, an increase of $109 million, or 2%, from the prior year.

Consumer & Business Banking reported net income of $774 million, a decrease of $119 million, or 13%, compared with the prior year.

Net revenue was $4.3 billion, down 4% from the prior year. Net interest income was $2.7 billion, relatively flat compared with the prior year, driven by the effect of higher deposit balances, predominantly offset by the impact of lower deposit spreads. Noninterest revenue was $1.6 billion, a decrease of 10%, driven by lower debit card revenue, reflecting the impact of the Durbin Amendment.

JPMorgan Chase & Co.

News Release

The provision for credit losses was $96 million, compared with $119 million in the prior year. Net charge-offs were $96 million (2.19% net charge-off rate), compared with $119 million (2.86% net charge-off rate) in the prior year.

Noninterest expense was $2.9 billion, up 2% from the prior year, due to investments in sales force and new branch builds.

Key Metrics and Business Updates:

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

•

Average total deposits were $380.8 billion, up 8% from the prior year and 3% from the prior quarter.

•

Deposit margin was 2.68%, compared with 2.88% in the prior year and 2.76% in the prior quarter.

•

Checking accounts totaled 27.0 million, up 2% from the prior year and 2% from the prior quarter.

•

Number of branches was 5,541, an increase of 249 from the prior year and 33 from the prior quarter. Chase Private Client locations were 366, an increase of 350 from the prior year and 104 from the prior quarter.

•

End-of-period Business Banking loans were $17.8 billion, up 5% from the prior year and 1% from the prior quarter; originations were $1.5 billion, up 8% from the prior year and 11% from the prior quarter.

•

Branch sales of credit cards were down 26% from the prior year and 7% from the prior quarter.

•

Branch sales of investment products were flat compared with the prior year and increased 41% from the prior quarter.

•

Client investment assets, excluding deposits, were a record $147.1 billion, up 6% from the prior year and 7% from the prior quarter.

•

Number of active mobile customers increased 42% compared with the prior year and 2% compared with the prior quarter.

Mortgage Production and Servicing reported net income of $461 million, compared with a net loss of $1.1 billion in the prior year.

Mortgage production-related revenue, excluding repurchase losses, was $1.6 billion, an increase of $722 million, or 80%, from the prior year, reflecting wider margins, driven by market conditions and mix, and higher volumes, due to a favorable refinancing environment, including the impact of the Home Affordable Refinance Programs (“HARP”). Production expense was $573 million, an increase of $149 million, or 35%, reflecting higher volumes and a strategic shift to the Retail channel, including branches, where origination costs and margins are traditionally higher. Repurchase losses were $302 million, compared with repurchase losses of $420 million in the prior year. Mortgage production reported pretax income of $744 million, an increase of $691 million from the prior year.

Mortgage servicing-related revenue was $1.2 billion, a decline of 5% from the prior year, as a result of a decline in third-party loans serviced. Mortgage servicing rights (“MSR”) asset amortization was $351 million, compared with $563 million in the prior year; this reflected reduced amortization as a result of a lower MSR asset value. Servicing expense was $1.2 billion, a decrease of $175 million, or 13%, from the prior year. Foreclosure-related matters, including adjustments for the global settlement with federal and state agencies, resulted in approximately $200 million of additional servicing expense. The prior-year servicing expense included approximately $650 million related to

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foreclosure-related matters. MSR risk management income was $191 million, compared with a loss of $1.2 billion in the prior year. The prior year MSR risk management loss included a $1.1 billion decrease in the fair value of the MSR asset for the estimated impact of increased servicing costs. Mortgage servicing reported a pretax loss of $160 million, compared with a pretax loss of $1.9 billion in the prior year.

Key Metrics and Business Updates:

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

•

Record production-related revenue drove record production pretax income of $744 million ($1.0 billion excluding repurchases).

•

Mortgage loan originations were $38.4 billion, up 6% from the prior year and relatively flat compared with the prior quarter; Retail channel originations (branch and direct to consumer) were $23.4 billion, up 11% from the prior year and relatively flat compared with the prior quarter.

•

Mortgage loan application volumes were $59.9 billion, up 33% from the prior year and 14% from the prior quarter, primarily reflecting refinancing activity.

•

Total third-party mortgage loans serviced was $884.2 billion, down 7% from the prior year and 2% from the prior quarter.

Real Estate Portfolios reported net income of $518 million, compared with a net loss of $162 million in the prior year. The increase was driven by a benefit from the provision for credit losses, reflecting an improvement in credit trends.

Net revenue was $1.1 billion, down by $83 million, or 7%, 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 reflected a benefit of $192 million, compared with provision expense of $1.1 billion in the prior year. The current-quarter provision benefit reflected lower charge-offs as compared with the prior year and a $1.0 billion reduction of the allowance for loan losses due to lower estimated losses as delinquency trends improved. Home equity net charge-offs were $542 million (2.85% net charge-off rate¹), compared with $720 million (3.36% net charge-off rate¹) in the prior year. Subprime mortgage net charge-offs were $130 million (5.51% net charge-off rate¹), compared with $186 million (6.80% net charge-off rate¹). Prime mortgage, including option ARMs, net charge-offs were $131 million (1.21% net charge-off rate¹), compared with $161 million (1.32% net charge-off rate¹).

Nonaccrual loans were $7.0 billion, compared with $7.0 billion in the prior year and $5.9 billion in the prior quarter. Based upon regulatory guidance issued in the first quarter of 2012, the Firm began reporting performing junior liens that are subordinate to nonaccrual senior liens as nonaccrual loans. Nonaccrual loans reported at the end of the first quarter included $1.6 billion of such junior liens, of which $1.4 billion were current. Excluding these junior liens, nonaccrual loans would have been $5.5 billion at the end of the first quarter. Prior periods have not been restated for this reporting change.

Noninterest expense was $419 million, up by $64 million, or 18%, 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 home equity loans were $99.1 billion, down by $12.0 billion.

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•

Average mortgage loans were $95.5 billion, down by $12.3 billion.

•

Allowance for loan losses was $13.4 billion, compared with $14.7 billion in the prior year.

CARD SERVICES & AUTO (Card)


Results for Card				4Q11		1Q11
($ millions)	1Q12	4Q11	1Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$4,714	$4,814	$4,791	($100)	(2)%	($77)	(2)%
Provision for Credit Losses	738	1,060	353	(322)	(30)	385	109
Noninterest Expense	2,029	2,025	1,917	4	—	112	6
Net Income	$1,183	$1,051	$1,534	$132	13%	($351)	(23)%

Discussion of Results:

Net income was $1.2 billion, a decrease of $351 million, or 23%, compared with the prior year. The decrease reflected a higher provision for credit losses, driven by a lower reduction in the allowance for loan losses compared with the prior year.

Net revenue was $4.7 billion, a decrease of $77 million, or 2%, from the prior year. Net interest income was $3.5 billion, down $281 million, or 8%, from the prior year. The decrease was driven by lower average loan balances and narrower loan spreads, partially offset by lower revenue reversals associated with lower net charge-offs. Noninterest revenue was $1.3 billion, an increase of $204 million, or 19%, from the prior year. The increase was driven by lower partner revenue-sharing, reflecting the impact of the Kohl’s portfolio sale on April 1, 2011, and higher net interchange income, partially offset by lower revenue from fee-based products.

The provision for credit losses was $738 million, compared with $353 million in the prior year and $1.1 billion in the prior quarter. The current-quarter provision reflected lower net charge-offs and a reduction of $750 million to the allowance for loan losses due to lower estimated losses. The prior-year provision included a reduction of $2.0 billion to the allowance for loan losses. The Credit Card net charge-off rate¹ was 4.37%, down from 6.81% in the prior year and up from 4.29% in the prior quarter; and the 30+ day delinquency rate¹ was 2.55%, down from 3.55% in the prior year and 2.81% in the prior quarter. The Auto net charge-off rate was 0.28%, down from 0.40% in the prior year and 0.37% in the prior quarter.

Noninterest expense was $2.0 billion, an increase of $112 million, or 6%, from the prior year, primarily due to an expense related to a non-core product that is being exited.

Key Metrics and Business Updates:

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

•

Return on equity was 29% on $16.5 billion of average allocated capital.

•

Credit Card average loans were $127.6 billion, a decrease of $4.9 billion, or 4%, from the prior year and $1.0 billion, or 1%, from the prior quarter.

•

Credit Card sales volume² was $86.9 billion, up 12% compared with the prior year and down 7% compared with the prior quarter; excluding the impact of the Kohl’s portfolio sale, sales volume was up 15% compared with the prior year.

•

Credit Card new accounts of 1.7 million were opened.

JPMorgan Chase & Co.

News Release

•

Card Services net revenue as a percentage of average loans was 12.22%, compared with 12.18% in the prior year and 12.26% in the prior quarter.

•

Merchant processing volume was $152.8 billion, up 22% from the prior year and flat compared with the prior quarter; total transactions processed were 6.8 billion, up 21% from the prior year and flat compared with the prior quarter.

•

Average auto loans were $47.7 billion, flat compared with the prior year and up 2% from the prior quarter.

•

Auto originations were $5.8 billion, up 21% from the prior year and 18% from the prior quarter.

COMMERCIAL BANKING (CB)


Results for CB				4Q11		1Q11
($ millions)	1Q12	4Q11	1Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$1,657	$1,687	$1,516	($30)	(2)%	$141	9%
Provision for Credit Losses	77	40	47	37	93	30	64
Noninterest Expense	598	579	563	19	3	35	6
Net Income	$ 591	$ 643	$ 546	($52)	(8)%	$ 45	8%

Discussion of Results:

Net income was $591 million, an increase of $45 million, or 8%, from the prior year. The improvement was driven by an increase in net revenue, partially offset by higher expense and an increase in the provision for credit losses.

Net revenue was $1.7 billion, an increase of $141 million, or 9%, from the prior year. Net interest income was $1.1 billion, up by $86 million, or 8%, driven by growth in liability and loan balances, largely offset by spread compression on liability and loan products. Noninterest revenue was $557 million, up by $55 million, or 11%, compared with the prior year, driven by increased deposit- and lending-related fees, higher investment banking revenue, increased community development investment-related revenue, and higher other revenue.

Revenue from Middle Market Banking was $825 million, an increase of $70 million, or 9%, from the prior year. Revenue from Commercial Term Lending was $293 million, an increase of $7 million, or 2%, compared with the prior year. Revenue from Corporate Client Banking was $337 million, an increase of $47 million, or 16%, from the prior year. Revenue from Real Estate Banking was $105 million, an increase of $17 million, or 19%, from the prior year.

The provision for credit losses was $77 million, compared with $47 million in the prior year. Net charge-offs were $12 million (0.04% net charge-off rate), compared with net charge-offs of $31 million (0.13% net charge-off rate) in the prior year and $99 million (0.36% net charge-off rate) in the prior quarter. The allowance for loan losses to end-of-period loans retained was 2.32%, down from 2.59% in the prior year and 2.34% in the prior quarter. Nonaccrual loans were $1.0 billion, down by $951 million, or 49%, from the prior year, as a result of commercial real estate repayments and loan sales; and were down $49 million, or 5%, from the prior quarter.

Noninterest expense was $598 million, an increase of $35 million, or 6%, from the prior year, primarily reflecting higher headcount-related² expense.

JPMorgan Chase & Co.

News Release

Key Metrics and Business Updates:

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

•

Return on equity was 25% on $9.5 billion of average allocated capital.

•

Overhead ratio was 36%, down from 37%.

•

Gross investment banking revenue (which is shared with the Investment Bank) was $339 million, up by $30 million, or 10%.

•

Average loan balances were $113.8 billion, up by $14.2 billion, or 14%, from the prior year and $3.9 billion, or 4%, from the prior quarter.

•

End-of-period loan balances were $115.8 billion, up by $15.7 billion, or 16%, from the prior year and $3.8 billion, or 3%, from the prior quarter.

•

Average liability balances were $200.2 billion, up by $44.0 billion, or 28%, from the prior year and up by $1.0 billion, or 1%, from the prior quarter.

TREASURY & SECURITIES SERVICES (TSS)


Results for TSS				4Q11		1Q11
($ millions)	1Q12	4Q11	1Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$2,014	$2,022	$1,840	($8)	—%	$174	9%
Provision for Credit Losses	2	19	4	(17)	(89)	(2)	(50)
Noninterest Expense	1,473	1,563	1,377	(90)	(6)	96	7
Net Income	$ 351	$ 250	$ 316	$101	40%	$35	11%

Discussion of Results:

Net income was $351 million, an increase of $35 million, or 11%, from the prior year. Compared with the prior quarter, net income increased by $101 million, or 40%, primarily driven by a higher Global Corporate Bank (“GCB”) credit allocation benefit and the absence of prior-quarter expense related to exiting unprofitable business.

Net revenue was $2.0 billion, an increase of $174 million, or 9%, from the prior year. Treasury Services (“TS”) net revenue was $1.1 billion, an increase of $161 million, or 18%. The increase was driven by higher deposit balances and higher trade finance loan volumes. Worldwide Securities Services net revenue was $962 million, an increase of 1% compared with the prior year.

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, $602 million in Commercial Banking, and $69 million in other lines of business. The remaining $962 million of firmwide net revenue was recorded in Worldwide Securities Services.

Noninterest expense was $1.5 billion, an increase of $96 million, or 7%, from the prior year. The increase was primarily driven by continued expansion into new markets.

Key Metrics and Business Updates:

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

•

Pretax margin² was 27%, compared with 26% in the prior year and 19% in the prior quarter.

•

Return on equity was 19% on $7.5 billion of average allocated capital.

•

Average liability balances were $357.0 billion, up 34%.

•

Assets under custody were a record $17.9 trillion, up 8%.

•

End-of-period trade finance loans were $35.7 billion, up 40%.

JPMorgan Chase & Co.

News Release

ASSET MANAGEMENT (AM)


Results for AM				4Q11		1Q11
($ millions)	1Q12	4Q11	1Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$2,370	$2,284	$2,406	$86	4%	($36)	(1)%
Provision for Credit Losses	19	24	5	(5)	(21)	14	280
Noninterest Expense	1,729	1,752	1,660	(23)	(1)	69	4
Net Income	$ 386	$ 302	$ 466	$84	28%	($80)	(17)%

Discussion of Results:

Net income was $386 million, a decrease of $80 million, or 17%, from the prior year. These results reflected higher noninterest expense and lower net revenue.

Net revenue was $2.4 billion, a decrease of $36 million, or 1%, from the prior year. Noninterest revenue was $1.9 billion, down by $133 million, or 7%, primarily due to lower credit-related fees and lower performance fees, partially offset by net inflows to products with higher margins and higher valuations of seed capital investments. Net interest income was $483 million, up by $97 million, or 25%, due to higher deposit and loan balances, partially offset by narrower deposit spreads.

Revenue from Private Banking was $1.3 billion, down 3% from the prior year. Revenue from Institutional was $557 million, up 3%. Revenue from Retail was $534 million, down 2%.

Assets under supervision were a record $2.0 trillion, an increase of $105 billion, or 6%, from the prior year. Assets under management were a record $1.4 trillion, an increase of $52 billion, or 4%, from the prior year. Both increases were due to net inflows to long-term products and the impact of higher market levels. Custody, brokerage, administration and deposit balances were $631 billion, up by $53 billion, or 9%, due to deposit and custody inflows.

The provision for credit losses was $19 million, compared with $5 million in the prior year.

Noninterest expense was $1.7 billion, an increase of $69 million, or 4%, from the prior year, due to increased headcount-related² expense.

Key Metrics and Business Updates:

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

•

Pretax margin² was 26%, down from 31%.

•

Assets under management reflected net inflows of $45 billion for the 12 months ended March 31, 2012. For the quarter, net outflows were $8 billion, reflecting net outflows of $25 billion from liquidity products, largely offset by inflows of $17 billion to long-term products. Long-term product flows were positive for the twelfth consecutive quarter.

•

Assets under management ranked in the top two quartiles for investment performance were 76% over 5 years, 74% over 3 years and 64% over 1 year.

•

Customer assets in 4 and 5 Star–rated funds were 42% of all rated mutual fund assets.

•

Assets under supervision were a record $2.0 trillion, up 6% from the prior year and 5% from the prior quarter.

JPMorgan Chase & Co.

News Release

•

Average loans were $59.3 billion, up 32% from the prior year and 8% from the prior quarter.

•

End-of-period loans were $64.3 billion, up 38% from the prior year and 12% from the prior quarter.

•

Average deposits were $127.5 billion, up 34% from the prior year and 5% from the prior quarter.

CORPORATE/PRIVATE EQUITY


Results for Corporate/Private Equity				4Q11		1Q11
($ millions)	1Q12	4Q11	1Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$1,689	$698	$1,512	$991	142%	$177	12%
Provision for Credit Losses	(9)	(10)	(10)	1	10	1	10
Noninterest Expense	2,769	930	562	1,839	198%	2,207	393%
Net Income/(Loss)	($563)	$223	$ 722	($786)	NM	($1,285)	NM

Discussion of Results:

Net loss was $563 million, compared with net income of $722 million in the prior year.

Private Equity reported net income of $134 million, compared with net income of $383 million in the prior year. Net revenue of $254 million was down from $699 million in the prior year, due to the absence of prior-year valuation gains on private investments. Noninterest expense was $44 million, a decrease of $69 million from the prior year.

Corporate reported a net loss of $697 million, compared with net income of $339 million in the prior year. Net revenue of $1.4 billion was driven by a $1.1 billion benefit from the Washington Mutual bankruptcy settlement and securities gains of $449 million. Noninterest expense of $2.7 billion was up from $449 million in the prior year, primarily reflecting $2.5 billion of additional litigation reserves, predominantly for mortgage-related matters.

JPMORGAN CHASE (JPM)(*)


Results for JPM				4Q11		1Q11
($ millions)	1Q12	4Q11	1Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$27,417	$22,198	$25,791	$5,219	24%	$1,626	6%
Provision for Credit Losses	726	2,184	1,169	(1,458)	(67)	(443)	(38)
Noninterest Expense	18,345	14,540	15,995	3,805	26	2,350	15
Net Income	$ 5,383	$ 3,728	$ 5,555	$1,655	44%	($172)	(3)%

(*)	Presented on a managed basis. See notes on page 13 for further explanation of managed basis. Net revenue on a U.S. GAAP basis totaled $26,712 million, $21,471 million, and $25,221 million for the first quarter of 2012, fourth quarter of 2011, and first quarter of 2011, respectively.

Discussion of Results:

Net income was $5.4 billion, down by $172 million, or 3%, from the prior year. The decrease in earnings was driven by higher noninterest expense, largely offset by higher net revenue.

Net revenue was $27.4 billion, up by $1.6 billion, or 6%, compared with the prior year. Noninterest revenue was $15.6 billion, up by $1.8 billion, or 13%, from the prior year. The increase was driven by higher mortgage fees and related income and a $1.1 billion benefit from the Washington Mutual bankruptcy settlement, partially offset by lower principal transaction revenue, driven by a

JPMorgan Chase & Co.

News Release

$907 million loss from DVA. Net interest income was $11.8 billion, down by $187 million, or 2%, compared with the prior year.

The provision for credit losses was $726 million, down $443 million, or 38%, from the prior year. The total consumer provision for credit losses was $637 million, down $918 million from the prior year. The decrease in the consumer provision reflected improved delinquency trends across most consumer portfolios compared with the prior year, partially offset by the effect of a lower net reduction in the allowance for loan losses compared with the prior year. Consumer net charge-offs¹ were $2.4 billion, compared with $3.6 billion in the prior year, resulting in net charge-off rates of 2.60% and 3.77%, respectively. The wholesale provision for credit losses was $89 million compared with a benefit of $386 million; prior year credit costs reflected a reduction in loan loss reserves due to an improvement in the credit environment. Wholesale net charge-offs were $5 million, compared with $165 million in the prior year, resulting in net charge-off rates of 0.01% and 0.30%, respectively. The Firm’s allowance for loan losses to end-of-period loans retained¹ was 3.11%, compared with 4.10% in the prior year. The Firm’s nonperforming assets totaled $11.7 billion at March 31, 2012, down from the prior-year level of $15.0 billion and up from the prior-quarter level of $11.0 billion.

Noninterest expense was $18.3 billion, up 15% from the prior year, driven by higher compensation and noncompensation expense, including $2.5 billion of additional litigation reserves, predominantly for mortgage-related matters.

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 March 31, 2012, compared with 10.1% at December 31, 2011, and 10.0% at March 31, 2011.

•

Headcount was 261,453, an increase of 18,524, or 8%.

JPMorgan Chase & Co.

News Release

1. Notes on non-GAAP financial measures:

a. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the business segments) on a 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 March 31, 2012, December 31, 2011, and March 31, 2011, respectively.

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 competitors.

d. The Basel I Tier 1 common ratio is Tier 1 common divided by risk-weighted assets. Tier 1 common is defined as Tier 1 capital less elements of Tier 1 capital not in the form of common equity, such as perpetual preferred stock, noncontrolling interests in subsidiaries, and trust preferred capital debt securities. Tier 1 common, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies. The Firm uses Tier 1 common along with other capital measures to assess and monitor its capital position. On December 16, 2010, the Basel Committee issued the final version of the Basel Capital Accord, commonly referred to as “Basel III.” 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, 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. The Firm’s understanding of the Basel III rules is based on information currently published by the Basel Committee and U.S. federal banking agencies.

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 rate and 30+ day delinquency rate presented include loans held-for-sale.

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.

JPMorgan Chase & Co.

News Release

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 competitors.

d. Credit card sales volume is presented excluding Commercial Card.

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 review first-quarter financial results. The general public can access the call by dialing (866) 541-2724 or (877) 368-8360 in the U.S. and Canada, or (706) 634-7246 for international participants. 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 April 13, 2012 through midnight, April 27, 2012 by telephone at (855) 859-2056 or (800) 585-8367 (U.S. and Canada) or (404) 537-3406 (international); use Conference ID# 59781283. 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, which has been filed with the Securities and Exchange Commission and is 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
										1Q12 Change
	1Q12			4Q11			1Q11			4Q11			1Q11
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue	$	26,712		$	21,471		$	25,221			24	%		6	%
Total noninterest expense		18,345			14,540			15,995			26			15
Pre-provision profit		8,367			6,931			9,226			21			(9	)
Provision for credit losses		726			2,184			1,169			(67	)		(38	)
NET INCOME		5,383			3,728			5,555			44			(3	)

Managed Basis (a)
Total net revenue		27,417			22,198			25,791			24			6
Total noninterest expense		18,345			14,540			15,995			26			15
Pre-provision profit		9,072			7,658			9,796			18			(7	)
Provision for credit losses		726			2,184			1,169			(67	)		(38	)
NET INCOME		5,383			3,728			5,555			44			(3	)

PER COMMON SHARE DATA
Basic earnings		1.31			0.90			1.29			46			2
Diluted earnings		1.31			0.90			1.28			46			2

Cash dividends declared (b)		0.30			0.25			0.25			20			20
Book value		47.60			46.59			43.34			2			10

Closing share price (c)		45.98			33.25			46.10			38			—
Market capitalization		175,737			125,442			183,783			40			(4	)

COMMON SHARES OUTSTANDING
Average: Basic		3,818.8			3,801.9			3,981.6			—			(4	)
Diluted		3,833.4			3,811.7			4,014.1			1			(5	)
Common shares at period-end		3,822.0			3,772.7			3,986.6			1			(4	)

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)		12	%		8	%		13	%
Return on tangible common equity (“ROTCE”) (e)		16			11			18
Return on assets (“ROA”)		0.96			0.65			1.07
Return on risk-weighted assets (f)		1.76	(g)		1.21			1.90

CAPITAL RATIOS
Tier 1 capital ratio		12.6	(g)		12.3			12.3
Total capital ratio		15.6	(g)		15.4			15.6
Tier 1 common capital ratio (e)		10.4	(g)		10.1			10.0

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,320,330		$	2,265,792		$	2,198,161			2			6
Wholesale loans		290,866			283,016			236,007			3			23
Consumer, excluding credit card loans		304,770			308,427			321,186			(1	)		(5	)
Credit card loans		125,331			132,277			128,803			(5	)		(3	)

Total Loans		720,967			723,720			685,996			—			5
Deposits		1,128,512			1,127,806			995,829			—			13
Common stockholders’ equity		181,928			175,773			172,798			4			5
Total stockholders’ equity		189,728			183,573			180,598			3			5

Deposits-to-loans ratio		157	%		156	%		145	%

Headcount		261,453			260,157			242,929			—			8

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	1,682		$	726		$	2,370			132			(29	)
Retail Financial Services		1,753			533			(399	)		229			NM
Card Services & Auto		1,183			1,051			1,534			13			(23	)
Commercial Banking		591			643			546			(8	)		8
Treasury & Securities Services		351			250			316			40			11
Asset Management		386			302			466			28			(17	)
Corporate/Private Equity		(563	)		223			722			NM			NM

NET INCOME	$	5,383		$	3,728		$	5,555			44			(3	)

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

(b)	On March 13, 2012, the Board of Directors increased the Firm’s quarterly common 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)	Quarterly ratios are based upon annualized amounts.

(e)

ROTCE and Tier 1 common capital ratio are non-GAAP financial ratios. ROTCE measures the Firm’s earnings as a percentage of tangible common equity. Tier 1 common capital ratio measures the quality and composition of the Firm’s capital. For further discussion of these ratios, 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)	Estimated.

<![CDATA[JPMorgan Chase & Co. Earnings Release Financial Supplement - First Quarter 2012]]>

Exhibit 99.2

LOGO

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2012

JPMORGAN CHASE & CO.

TABLE OF CONTENTS


		Page(s)

Consolidated Results
Consolidated Financial Highlights		2-3
Statements of Income		4
Consolidated Balance Sheets		5
Condensed Average Balance Sheets and Annualized Yields		6
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 Loan 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
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11		1Q11
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue		$	26,712		$	21,471		$	23,763		$	26,779		$	25,221		24%		6%
Total noninterest expense			18,345			14,540			15,534			16,842			15,995		26		15
Pre-provision profit			8,367			6,931			8,229			9,937			9,226		21		(9)
Provision for credit losses			726			2,184			2,411			1,810			1,169		(67)		(38)
NET INCOME			5,383			3,728			4,262			5,431			5,555		44		(3)

Managed Basis (a)
Total net revenue			27,417			22,198			24,368			27,410			25,791		24		6
Total noninterest expense			18,345			14,540			15,534			16,842			15,995		26		15
Pre-provision profit			9,072			7,658			8,834			10,568			9,796		18		(7)
Provision for credit losses			726			2,184			2,411			1,810			1,169		(67)		(38)
NET INCOME			5,383			3,728			4,262			5,431			5,555		44		(3)

PER COMMON SHARE DATA
Basic earnings			1.31			0.90			1.02			1.28			1.29		46		2
Diluted earnings			1.31			0.90			1.02			1.27			1.28		46		2

Cash dividends declared (b)			0.30			0.25			0.25			0.25			0.25		20		20
Book value			47.60			46.59			45.93			44.77			43.34		2		10

Closing share price (c)			45.98			33.25			30.12			40.94			46.10		38		—
Market capitalization			175,737			125,442			114,422			160,083			183,783		40		(4)

COMMON SHARES OUTSTANDING
Average: Basic			3,818.8			3,801.9			3,859.6			3,958.4			3,981.6		—		(4)
Diluted			3,833.4			3,811.7			3,872.2			3,983.2			4,014.1		1		(5)
Common shares at period-end			3,822.0			3,772.7			3,798.9			3,910.2			3,986.6		1		(4)

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)			12%			8%			9%			12%			13%
Return on tangible common equity (“ROTCE”) (e)			16			11			13			17			18
Return on assets (“ROA”)			0.96			0.65			0.76			0.99			1.07
Return on risk-weighted assets (f)			1.76(g)			1.21			1.40			1.82			1.90

CAPITAL RATIOS
Tier 1 capital ratio			12.6(g)			12.3			12.1			12.4			12.3
Total capital ratio			15.6(g)			15.4			15.3			15.7			15.6
Tier 1 common capital ratio (e)			10.4(g)			10.1			9.9			10.1			10.0

(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 common 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)	Quarterly ratios are based upon annualized amounts.

(e)	ROTCE and Tier 1 common capital ratio are non-GAAP financial ratios. ROTCE measures the Firm’s earnings as a percentage of tangible common equity. Tier 1 common capital ratio measures the quality and composition of the Firm’s capital. For further discussion of these ratios, 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)	Estimated.

Page 2

JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,320,330		$	2,265,792		$	2,289,240		$	2,246,764		$	2,198,161			2	%		6	%
Wholesale loans		290,866			283,016			259,483			248,823			236,007			3			23
Consumer, excluding credit card loans		304,770			308,427			310,235			315,390			321,186			(1	)		(5	)
Credit card loans		125,331			132,277			127,135			125,523			128,803			(5	)		(3	)

Total Loans		720,967			723,720			696,853			689,736			685,996			—			5
Deposits		1,128,512			1,127,806			1,092,708			1,048,685			995,829			—			13
Common stockholders’ equity		181,928			175,773			174,487			175,079			172,798			4			5
Total stockholders' equity		189,728			183,573			182,287			182,879			180,598			3			5

Deposits-to-loans ratio		157	%		156	%		157	%		152	%		145	%

Headcount		261,453			260,157			256,663			250,095			242,929			—			8

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	1,682		$	726		$	1,636		$	2,057		$	2,370			132			(29	)
Retail Financial Services		1,753			533			1,161			383			(399	)		229			NM
Card Services & Auto		1,183			1,051			849			1,110			1,534			13			(23	)
Commercial Banking		591			643			571			607			546			(8	)		8
Treasury & Securities Services		351			250			305			333			316			40			11
Asset Management		386			302			385			439			466			28			(17	)
Corporate/Private Equity		(563	)		223			(645	)		502			722			NM			NM

NET INCOME	$	5,383		$	3,728		$	4,262		$	5,431		$	5,555			44			(3	)

Page 3

JPMORGAN CHASE & CO.

STATEMENTS OF INCOME

(in millions, except per share and ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
REVENUE
Investment banking fees	$	1,381		$	1,133		$	1,052		$	1,933		$	1,793			22	%		(23	)%
Principal transactions		3,382			750			1,370			3,140			4,745			351			(29	)
Lending- and deposit-related fees		1,517			1,620			1,643			1,649			1,546			(6	)		(2	)
Asset management, administration and commissions		3,392			3,337			3,448			3,703			3,606			2			(6	)
Securities gains		536			47			607			837			102			NM			425
Mortgage fees and related income		2,010			725			1,380			1,103			(487	)		177			NM
Credit card income		1,316			1,359			1,666			1,696			1,437			(3	)		(8	)
Other income		1,512	(d)		369			780			882			574			310			163

Noninterest revenue		15,046			9,340			11,946			14,943			13,316			61			13
Interest income		14,701			15,054			15,160			15,632			15,447			(2	)		(5	)
Interest expense		3,035			2,923			3,343			3,796			3,542			4			(14	)

Net interest income		11,666			12,131			11,817			11,836			11,905			(4	)		(2	)

TOTAL NET REVENUE		26,712			21,471			23,763			26,779			25,221			24			6
Provision for credit losses		726			2,184			2,411			1,810			1,169			(67	)		(38	)
NONINTEREST EXPENSE
Compensation expense		8,613			6,297			6,908			7,569			8,263			37			4
Occupancy expense		961			1,047			935			935			978			(8	)		(2	)
Technology, communications and equipment expense		1,271			1,282			1,248			1,217			1,200			(1	)		6
Professional and outside services		1,795			2,021			1,860			1,866			1,735			(11	)		3
Marketing		680			814			926			744			659			(16	)		3
Other expense (a)		4,832			2,872			3,445			4,299			2,943			68			64
Amortization of intangibles		193			207			212			212			217			(7	)		(11	)

TOTAL NONINTEREST EXPENSE		18,345			14,540			15,534			16,842			15,995			26			15

Income before income tax expense		7,641			4,747			5,818			8,127			8,057			61			(5	)
Income tax expense		2,258			1,019			1,556			2,696			2,502			122			(10	)

NET INCOME	$	5,383		$	3,728		$	4,262		$	5,431		$	5,555			44			(3	)


PER COMMON SHARE DATA
Basic earnings	$	1.31		$	0.90		$	1.02		$	1.28		$	1.29			46			2
Diluted earnings		1.31			0.90			1.02			1.27			1.28			46			2

FINANCIAL RATIOS
Return on common equity (b)		12	%		8	%		9	%		12	%		13	%
Return on tangible common equity (b)(c)		16			11			13			17			18
Return on assets (b)		0.96			0.65			0.76			0.99			1.07
Return on risk-weighted assets (c)		1.76	(e)		1.21			1.40			1.82			1.90
Effective income tax rate		30			21	(f)		27	(f)		33			31
Overhead ratio		69			68			65			63			63

(a)	Includes litigation expense of $2.7 billion, $0.6 billion, $1.3 billion, $1.9 billion and $1.1 billion for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

(b)	Quarterly 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)	Includes a $1.1 billion benefit from the Washington Mutual bankruptcy settlement.

(e)	Estimated.

(f)	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)


																March 31, 2012 Change
	Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Dec 31, 2011			Mar 31, 2011
ASSETS
Cash and due from banks	$	55,383		$	59,602		$	56,766		$	30,466		$	23,469			(7	)%		136	%
Deposits with banks		115,028			85,279			128,877			169,880			80,842			35			42
Federal funds sold and securities purchased under resale agreements		240,484			235,314			248,042			213,362			217,356			2			11
Securities borrowed		135,650			142,462			131,561			121,493			119,000			(5	)		14
Trading assets:
Debt and equity instruments		370,623			351,486			352,678			381,339			422,404			5			(12	)
Derivative receivables		85,377			92,477			108,853			77,383			78,744			(8	)		8
Securities		381,742			364,793			339,349			324,741			334,800			5			14
Loans		720,967			723,720			696,853			689,736			685,996			—			5
Less: Allowance for loan losses		25,871			27,609			28,350			28,520			29,750			(6	)		(13	)

Loans, net of allowance for loan losses		695,096			696,111			668,503			661,216			656,246			—			6
Accrued interest and accounts receivable		64,833			61,478			72,080			80,292			79,236			5			(18	)
Premises and equipment		14,213			14,041			13,812			13,679			13,422			1			6
Goodwill		48,208			48,188			48,180			48,882			48,856			—			(1	)
Mortgage servicing rights		8,039			7,223			7,833			12,243			13,093			11			(39	)
Other intangible assets		3,029			3,207			3,396			3,679			3,857			(6	)		(21	)
Other assets		102,625			104,131			109,310			108,109			106,836			(1	)		(4	)

TOTAL ASSETS	$	2,320,330		$	2,265,792		$	2,289,240		$	2,246,764		$	2,198,161			2			6


LIABILITIES
Deposits	$	1,128,512		$	1,127,806		$	1,092,708		$	1,048,685		$	995,829			—			13
Federal funds purchased and securities loaned or sold under repurchase agreements		250,483			213,532			238,585			254,124			285,444			17			(12	)
Commercial paper		50,577			51,631			51,073			51,160			46,022			(2	)		10
Other borrowed funds		27,298			21,908			29,318			30,208			36,704			25			(26	)
Trading liabilities:
Debt and equity instruments		71,529			66,718			76,592			84,865			80,031			7			(11	)
Derivative payables		74,474			74,977			79,249			63,668			61,362			(1	)		21
Accounts payable and other liabilities		204,148			202,895			199,769			184,490			171,638			1			19
Beneficial interests issued by consolidated VIEs		67,750			65,977			65,971			67,457			70,917			3			(4	)
Long-term debt		255,831			256,775			273,688			279,228			269,616			—			(5	)

TOTAL LIABILITIES		2,130,602			2,082,219			2,106,953			2,063,885			2,017,563			2			6

STOCKHOLDERS’ EQUITY
Preferred stock		7,800			7,800			7,800			7,800			7,800			—			—
Common stock		4,105			4,105			4,105			4,105			4,105			—			—
Capital surplus		94,070			95,602			95,078			95,061			94,660			(2	)		(1	)
Retained earnings		92,347			88,315			85,726			82,612			78,342			5			18
Accumulated other comprehensive income		2,645			944			1,964			1,638			712			180			271
Shares held in RSU Trust, at cost		(38	)		(38	)		(53	)		(53	)		(53	)		—			28
Treasury stock, at cost		(11,201	)		(13,155	)		(12,333	)		(8,284	)		(4,968	)		15			(125	)

TOTAL STOCKHOLDERS’ EQUITY		189,728			183,573			182,287			182,879			180,598			3			5

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,320,330		$	2,265,792		$	2,289,240		$	2,246,764		$	2,198,161			2			6

Page 5

JPMORGAN CHASE & CO.

CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(in millions, except rates)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
AVERAGE BALANCES
ASSETS
Deposits with banks	$	110,817		$	89,145		$	116,062		$	75,801		$	37,155			24	%		198	%
Federal funds sold and securities purchased under resale agreements		230,444			230,494			211,884			202,036			202,481			—			14
Securities borrowed		133,080			143,745			131,615			124,806			114,589			(7	)		16
Trading assets — debt instruments		228,397			241,645			257,950			285,104			275,512			(5	)		(17	)
Securities		369,273			358,698			331,330			342,248			318,936			3			16
Loans		715,553			706,856			692,794			686,111			688,133			1			4
Other assets (a)		33,949			37,343			42,760			48,716			49,887			(9	)		(32	)

Total interest-earning assets		1,821,513			1,807,926			1,784,395			1,764,822			1,686,693			1			8
Trading assets — equity instruments		126,938			116,720			119,890			137,611			141,951			9			(11	)
Trading assets — derivative receivables		90,446			94,925			96,612			82,860			85,437			(5	)		6
All other noninterest-earning assets		219,979			243,578			229,650			207,250			190,371			(10	)		16

TOTAL ASSETS	$	2,258,876		$	2,263,149		$	2,230,547		$	2,192,543		$	2,104,452			—			7


LIABILITIES
Interest-bearing deposits	$	759,084		$	759,422		$	740,901		$	732,766		$	700,921			—			8
Federal funds purchased and securities loaned or sold under repurchase agreements		233,415			230,355			235,438			281,843			278,250			1			(16	)
Commercial paper		48,359			44,930			47,027			41,682			36,838			8			31
Trading liabilities — debt, short-term and other liabilities (b)		199,588			204,161			215,064			212,878			193,814			(2	)		3
Beneficial interests issued by consolidated VIEs		65,360			65,322			66,545			69,399			72,932			—			(10	)
Long-term debt		255,246			269,542			279,235			273,934			269,156			(5	)		(5	)

Total interest-bearing liabilities		1,561,052			1,573,732			1,584,210			1,612,502			1,551,911			(1	)		1
Noninterest-bearing deposits		339,398			337,618			297,610			247,137			229,461			1			48
Trading liabilities — equity instruments		14,060			8,188			1,948			3,289			7,872			72			79
Trading liabilities — derivative payables		76,069			72,965			75,828			66,009			71,288			4			7
All other noninterest-bearing liabilities		82,786			87,804			88,697			81,729			66,705			(6	)		24

TOTAL LIABILITIES		2,073,365			2,080,307			2,048,293			2,010,666			1,927,237			—			8

Preferred stock		7,800			7,800			7,800			7,800			7,800			—			—
Common stockholders’ equity		177,711			175,042			174,454			174,077			169,415			2			5

TOTAL STOCKHOLDERS’ EQUITY		185,511			182,842			182,254			181,877			177,215			1			5

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,258,876		$	2,263,149		$	2,230,547		$	2,192,543		$	2,104,452			—			7


AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks		0.55	%		0.75	%		0.63	%		0.76	%		1.11	%
Federal funds sold and securities purchased under resale agreements		1.14			1.19			1.28			1.20			1.09
Securities borrowed		0.11			0.04			0.05			0.10			0.17
Trading assets — debt instruments		4.30			4.22			4.32			4.23			4.31
Securities		2.60			2.57			2.66			3.10			2.89
Loans		5.14			5.22			5.28			5.36			5.62
Other assets (a)		0.83			1.51			1.47			1.30			1.20
Total interest-earning assets		3.28			3.34			3.40			3.58			3.74

INTEREST-BEARING LIABILITIES
Interest-bearing deposits		0.38			0.43			0.53			0.61			0.53
Federal funds purchased and securities loaned or sold under repurchase agreements		0.15			0.18			0.18			0.29			0.17
Commercial paper		0.15			0.13			0.16			0.19			0.21
Trading liabilities — debt, short-term and other liabilities (b)		0.61			0.67			1.05			1.26			1.43
Beneficial interests issued by consolidated VIEs		1.12			1.06			1.05			1.17			1.19
Long-term debt		2.71			2.15			2.10			2.31			2.39
Total interest-bearing liabilities		0.78			0.74			0.84			0.94			0.93

INTEREST RATE SPREAD		2.50	%		2.60	%		2.56	%		2.64	%		2.81	%
NET YIELD ON INTEREST-EARNING ASSETS		2.61	%		2.70	%		2.66	%		2.72	%		2.89	%

(a)	Includes margin loans.

(b)	Includes brokerage customer payables.

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
																1Q12 Change
CORE NET INTEREST INCOME DATA (a)	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
Net interest income — managed basis (b)	$	11,837		$	12,288		$	11,950		$	11,957		$	12,024			(4	)%		(2	)%
Impact of market-based net interest income		1,569			1,800			1,866			1,829			1,834			(13	)		(14	)

Core net interest income	$	10,268		$	10,488		$	10,084		$	10,128		$	10,190			(2	)		1


Average interest-earning assets — managed basis	$	1,821,513		$	1,807,926		$	1,784,395		$	1,764,822		$	1,686,693			1			8
Impact of market-based earning assets		490,750			502,312			512,215			543,458			520,924			(2	)		(6	)

Core average interest-earning assets	$	1,330,763		$	1,305,614		$	1,272,180		$	1,221,364		$	1,165,769			2			14


Net interest yield on interest-earning assets — managed basis		2.61	%		2.70	%		2.66	%		2.72	%		2.89	%
Net interest yield on market-based activity		1.29			1.42			1.45			1.35			1.43
Core net interest yield on interest-earning assets		3.10			3.19			3.14			3.33			3.54

(a)	Includes core lending, investing and deposit-raising activities on a managed basis, across RFS, Card, CB, TSS, AM and Corporate/Private Equity, as well as IB credit portfolio loans.

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

Page 7

JPMORGAN CHASE & CO.

RECONCILIATION FROM REPORTED TO MANAGED SUMMARY

(in millions)

The Firm prepares its consolidated financial statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year to year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 46.

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


	QUARTERLY TRENDS
											1Q12 Change
	1Q12		4Q11		3Q11		2Q11		1Q11		4Q11			1Q11
OTHER INCOME
Other income — reported	$	1,512	$	369	$	780	$	882	$	574		310	%		163	%
Fully taxable-equivalent (“FTE”) adjustments (a)		534		570		472		510		451		(6	)		18

Other income — managed	$	2,046	$	939	$	1,252	$	1,392	$	1,025		118			100


TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	15,046	$	9,340	$	11,946	$	14,943	$	13,316		61			13
Fully taxable-equivalent adjustments (a)		534		570		472		510		451		(6	)		18

Total noninterest revenue — managed	$	15,580	$	9,910	$	12,418	$	15,453	$	13,767		57			13


NET INTEREST INCOME
Net interest income — reported	$	11,666	$	12,131	$	11,817	$	11,836	$	11,905		(4	)		(2	)
Fully taxable-equivalent adjustments (a)		171		157		133		121		119		9			44

Net interest income — managed	$	11,837	$	12,288	$	11,950	$	11,957	$	12,024		(4	)		(2	)


TOTAL NET REVENUE
Total net revenue — reported	$	26,712	$	21,471	$	23,763	$	26,779	$	25,221		24			6
Fully taxable-equivalent adjustments (a)		705		727		605		631		570		(3	)		24

Total net revenue — managed	$	27,417	$	22,198	$	24,368	$	27,410	$	25,791		24			6


PRE-PROVISION PROFIT
Total pre-provision profit — reported	$	8,367	$	6,931	$	8,229	$	9,937	$	9,226		21			(9	)
Fully taxable-equivalent adjustments (a)		705		727		605		631		570		(3	)		24

Total pre-provision profit — managed	$	9,072	$	7,658	$	8,834	$	10,568	$	9,796		18			(7	)


INCOME TAX EXPENSE
Income tax expense — reported	$	2,258	$	1,019	$	1,556	$	2,696	$	2,502		122			(10	)
Fully taxable-equivalent adjustments (a)		705		727		605		631		570		(3	)		24

Income tax expense — managed	$	2,963	$	1,746	$	2,161	$	3,327	$	3,072		70			(4	)

(a)	Predominantly recognized in IB and CB business segments and Corporate/Private Equity.

Page 8

JPMORGAN CHASE & CO.

LINE OF BUSINESS FINANCIAL HIGHLIGHTS — MANAGED BASIS

(in millions, except ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
TOTAL NET REVENUE (FTE)
Investment Bank (a)	$	7,321		$	4,358		$	6,369		$	7,314		$	8,233			68	%		(11	)%
Retail Financial Services		7,649			6,395			7,535			7,142			5,466			20			40
Card Services & Auto		4,714			4,814			4,775			4,761			4,791			(2	)		(2	)
Commercial Banking		1,657			1,687			1,588			1,627			1,516			(2	)		9
Treasury & Securities Services		2,014			2,022			1,908			1,932			1,840			—			9
Asset Management		2,370			2,284			2,316			2,537			2,406			4			(1	)
Corporate/Private Equity (a)		1,692			638			(123	)		2,097			1,539			165			10

TOTAL NET REVENUE	$	27,417		$	22,198		$	24,368		$	27,410		$	25,791			24			6


TOTAL PRE-PROVISION PROFIT
Investment Bank (a)	$	2,583		$	1,389		$	2,570		$	2,982		$	3,217			86			(20	)
Retail Financial Services		2,640			1,673			2,970			1,871			566			58			366
Card Services & Auto		2,685			2,789			2,660			2,773			2,874			(4	)		(7	)
Commercial Banking		1,059			1,108			1,015			1,064			953			(4	)		11
Treasury & Securities Services		541			459			438			479			463			18			17
Asset Management		641			532			520			743			746			20			(14	)
Corporate/Private Equity (a)		(1,077	)		(292	)		(1,339	)		656			977			(269	)		NM

TOTAL PRE-PROVISION PROFIT	$	9,072		$	7,658		$	8,834		$	10,568		$	9,796			18			(7	)


NET INCOME/(LOSS)
Investment Bank	$	1,682		$	726		$	1,636		$	2,057		$	2,370			132			(29	)
Retail Financial Services		1,753			533			1,161			383			(399	)		229			NM
Card Services & Auto		1,183			1,051			849			1,110			1,534			13			(23	)
Commercial Banking		591			643			571			607			546			(8	)		8
Treasury & Securities Services		351			250			305			333			316			40			11
Asset Management		386			302			385			439			466			28			(17	)
Corporate/Private Equity		(563	)		223			(645	)		502			722			NM			NM

TOTAL NET INCOME	$	5,383		$	3,728		$	4,262		$	5,431		$	5,555			44			(3	)


AVERAGE EQUITY (b)
Investment Bank	$	40,000		$	40,000		$	40,000		$	40,000		$	40,000			—			—
Retail Financial Services		26,500			25,000			25,000			25,000			25,000			6			6
Card Services & Auto		16,500			16,000			16,000			16,000			16,000			3			3
Commercial Banking		9,500			8,000			8,000			8,000			8,000			19			19
Treasury & Securities Services		7,500			7,000			7,000			7,000			7,000			7			7
Asset Management		7,000			6,500			6,500			6,500			6,500			8			8
Corporate/Private Equity		70,711			72,542			71,954			71,577			66,915			(3	)		6

TOTAL AVERAGE EQUITY	$	177,711		$	175,042		$	174,454		$	174,077		$	169,415			2			5


RETURN ON EQUITY (b)
Investment Bank		17	%		7	%		16	%		21	%		24	%
Retail Financial Services		27			8			18			6			(6	)
Card Services & Auto		29			26			21			28			39
Commercial Banking		25			32			28			30			28
Treasury & Securities Services		19			14			17			19			18
Asset Management		22			18			24			27			29
JPMORGAN CHASE		12			8			9			12			13

(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).

(b)

Equity for a line of business represents the amount the Firm believes the business would require if it were operating independently, incorporating sufficient capital to address regulatory capital requirements (including Basel III Tier 1 common capital requirements), economic risk measures and capital levels for similarly rated peers. Capital is also allocated to each line of business for, among other things, goodwill and other intangibles associated with acquisitions effected by the lines of business. ROE is measured and internal targets for expected returns are established as key measures of a business segment’s performance. Effective January 1, 2012, the Firm further revised the capital allocated to certain businesses, reflecting additional refinement of each segment’s Basel III Tier 1 common capital requirements.

Page 9

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,375		$	1,119		$	1,039		$	1,922		$	1,779			23	%		(23	)%
Principal transactions (a)		3,210			364			2,253			2,309			3,398			NM			(6	)
Asset management, administration and commissions		565			477			563			548			619			18			(9	)
All other income (b)		268			309			438			454			380			(13	)		(29	)

Noninterest revenue		5,418			2,269			4,293			5,233			6,176			139			(12	)
Net interest income		1,903			2,089			2,076			2,081			2,057			(9	)		(7	)

TOTAL NET REVENUE (c)		7,321			4,358			6,369			7,314			8,233			68			(11	)

Provision for credit losses		(5	)		272			54			(183	)		(429	)		NM			99

NONINTEREST EXPENSE
Compensation expense		2,901			1,172			1,850			2,564			3,294			148			(12	)
Noncompensation expense		1,837			1,797			1,949			1,768			1,722			2			7

TOTAL NONINTEREST EXPENSE		4,738			2,969			3,799			4,332			5,016			60			(6	)


Income before income tax expense		2,588			1,117			2,516			3,165			3,646			132			(29	)
Income tax expense		906			391			880			1,108			1,276			132			(29	)

NET INCOME	$	1,682		$	726		$	1,636		$	2,057		$	2,370			132			(29	)


FINANCIAL RATIOS
ROE		17	%		7	%		16	%		21	%		24	%
ROA		0.86			0.36			0.81			0.98			1.18
Overhead ratio		65			68			60			59			61
Compensation expense as a percent of total net revenue		40			27			29			35			40

REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	281		$	397		$	365		$	601		$	429			(29	)		(34	)
Equity underwriting		276			169			178			455			379			63			(27	)
Debt underwriting		818			553			496			866			971			48			(16	)

Total investment banking fees		1,375			1,119			1,039			1,922			1,779			23			(23	)
Fixed income markets (d)		4,664			2,491			3,328			4,280			5,238			87			(11	)
Equity markets (e)		1,294			779			1,424			1,223			1,406			66			(8	)
Credit portfolio (b)(f)		(12	)		(31	)		578			(111	)		(190	)		61			94

Total net revenue	$	7,321		$	4,358		$	6,369		$	7,314		$	8,233			68			(11	)

(a)

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

(b)

All other income included 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 $509 million, $510 million, $440 million, $493 million and $438 million for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

(d)

Fixed income markets primarily include revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets. Includes DVA gains/(losses) of ($352) million, ($135) million, $529 million, $64 million and $95 million for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

(e)

Equity markets primarily include revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and Prime Services. Includes DVA gains/(losses) of ($130) million, ($27) million, $377 million, $78 million and ($72) million for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

(f)

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. Includes DVA gains/(losses) of ($425) million, ($405) million, $979 million, $23 million and ($69) million for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

Page 10

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except headcount and ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	812,959		$	776,430		$	824,733		$	809,630		$	853,452			5	%		(5	)%
Loans:
Loans retained (a)		67,213			68,208			58,163			56,107			52,712			(1	)		28
Loans held-for-sale and loans at fair value		5,451			2,915			2,311			3,466			5,070			87			8

Total loans		72,664			71,123			60,474			59,573			57,782			2			26
Equity		40,000			40,000			40,000			40,000			40,000			—			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	789,569		$	790,644		$	803,667		$	841,355		$	815,828			—			(3	)
Trading assets — debt and equity instruments		313,267			313,005			329,984			374,694			368,956			—			(15	)
Trading assets — derivative receivables		76,225			76,786			79,044			69,346			67,462			(1	)		13
Loans:
Loans retained (a)		66,710			62,698			57,265			54,590			53,370			6			25
Loans held-for-sale and loans at fair value		2,767			2,082			2,431			4,154			3,835			33			(28	)

Total loans		69,477			64,780			59,696			58,744			57,205			7			21
Adjusted assets (b)		559,566			564,158			597,513			628,475			611,038			(1	)		(8	)
Equity		40,000			40,000			40,000			40,000			40,000			—			—

Headcount		25,707			25,999			26,615			27,716			26,494			(1	)		(3	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(35	)	$	199		$	(168	)	$	7		$	123			NM			NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(c)		695			1,035			1,274			1,494			2,388			(33	)		(71	)
Nonaccrual loans held-for-sale and loans at fair value		182			166			150			193			259			10			(30	)

Total nonaccrual loans		877			1,201			1,424			1,687			2,647			(27	)		(67	)

Derivative receivables		32			14			7			18			21			129			52
Assets acquired in loan satisfactions		79			79			77			83			73			—			8

Total nonperforming assets		988			1,294			1,508			1,788			2,741			(24	)		(64	)
Allowance for credit losses:
Allowance for loan losses		1,386			1,436			1,337			1,178			1,330			(3	)		4
Allowance for lending-related commitments		530			418			444			383			424			27			25

Total allowance for credit losses		1,916			1,854			1,781			1,561			1,754			3			9

Net charge-off/(recovery) rate (a)		(0.21	)%		1.26	%		(1.16	)%		0.05	%		0.93	%
Allow. for loan losses to period-end loans retained (a)		2.06			2.11			2.30			2.10			2.52
Allow. for loan losses to nonaccrual loans retained (a)(c)		199			139			105			79			56
Nonaccrual loans to total period-end loans		1.21			1.69			2.35			2.83			4.58

(a)	Loans retained included 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 $225 million, $263 million, $320 million, $377 million and $567 million were held against these nonaccrual loans at March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

Page 11

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and rankings data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
MARKET RISK — 95% CONFIDENCE LEVEL AVERAGE TRADING AND CREDIT PORTFOLIO VAR
Trading activities:
Fixed income	$	60		$	56		$	48		$	45		$	49			7	%		22	%
Foreign exchange		11			12			10			9			11			(8	)		—
Equities		17			19			19			25			29			(11	)		(41	)
Commodities and other		21			20			15			16			13			5			62
Diversification benefit to trading VaR (a)		(46	)		(50	)		(39	)		(37	)		(38	)		8			(21	)

Total trading VaR (b)		63			57			53			58			64			11			(2	)

Credit portfolio VaR (c)		32			39			38			27			26			(18	)		23
Diversification benefit to trading and credit portfolio VaR (a)		(14	)		(21	)		(21	)		(8	)		(7	)		33			(100	)

Total trading and credit portfolio VaR	$	81		$	75		$	70		$	77		$	83			8			(2	)


	THREE MONTHS ENDED MARCH 31, 2012		FULL YEAR 2011
	Market Share	Rankings	Market Share	Rankings
MARKET SHARES AND RANKINGS (d)
Global investment banking fees (e)	7.9%	#1	8.0%	#1
Debt, equity and equity-related
Global	7.2	1	6.7	1
U.S.	11.7	1	11.1	1
Syndicated loans
Global	9.0	2	10.9	1
U.S.	16.0	2	21.2	1
Long-term debt (f)
Global	7.1	1	6.7	1
U.S.	11.4	1	11.2	1
Equity and equity-related
Global (g)	8.6	3	6.8	3
U.S.	11.3	3	12.5	1
Announced M&A (h)
Global	22.3	1	18.5	2
U.S.	21.7	1	27.1	2

(a)

Average value-at-risk (“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. The risk of a portfolio of positions is therefore usually less than the sum of the risks of the positions themselves.

(b)

Trading VaR includes substantially all 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 CVA, hedges of the CVA and the fair value of hedges of the retained loan portfolio, which are all reported in principal transactions revenue. However, Credit portfolio 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 rank 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 IB 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 for the periods presented reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S. involvement ranking.

Page 12

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions)


	QUARTERLY TRENDS
											1Q12 Change
	1Q12		4Q11		3Q11		2Q11		1Q11		4Q11			1Q11
INTERNATIONAL METRICS
Total net revenue: (a)
Europe/Middle East/Africa	$	2,400	$	1,353	$	1,995	$	2,478	$	2,592		77	%		(7	)%
Asia/Pacific		758		502		948		762		1,122		51			(32	)
Latin America/Caribbean		339		240		175		337		327		41			4
North America		3,824		2,263		3,251		3,737		4,192		69			(9	)

Total net revenue	$	7,321	$	4,358	$	6,369	$	7,314	$	8,233		68			(11	)

Loans (period-end): (b)
Europe/Middle East/Africa	$	16,358	$	15,905	$	15,361	$	15,370	$	14,059		3			16
Asia/Pacific		7,969		7,889		6,892		6,211		5,472		1			46
Latin America/Caribbean		3,764		3,148		3,222		2,633		2,190		20			72
North America		39,122		41,266		32,688		31,893		30,991		(5	)		26

Total loans	$	67,213	$	68,208	$	58,163	$	56,107	$	52,712		(1	)		28

(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
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	748		$	808		$	833		$	813		$	736			(7	)%		2	%
Asset management, administration and commissions		527			494			513			499			485			7			9
Mortgage fees and related income		2,008			723			1,380			1,100			(489	)		178			NM
Credit card income		315			305			611			572			537			3			(41	)
Other income		126			107			136			131			111			18			14

Noninterest revenue		3,724			2,437			3,473			3,115			1,380			53			170
Net interest income		3,925			3,958			4,062			4,027			4,086			(1	)		(4	)

TOTAL NET REVENUE		7,649			6,395			7,535			7,142			5,466			20			40

Provision for credit losses		(96	)		779			1,027			994			1,199			NM			NM

NONINTEREST EXPENSE
Compensation expense		2,305			2,130			2,101			1,937			1,876			8			23
Noncompensation expense		2,653			2,534			2,404			3,274			2,964			5			(10	)
Amortization of intangibles		51			58			60			60			60			(12	)		(15	)

TOTAL NONINTEREST EXPENSE		5,009			4,722			4,565			5,271			4,900			6			2


Income/(loss) before income tax expense/(benefit)		2,736			894			1,943			877			(633	)		206			NM
Income tax expense/(benefit)		983			361			782			494			(234	)		172			NM

NET INCOME/(LOSS)	$	1,753		$	533		$	1,161		$	383		$	(399	)		229			NM


FINANCIAL RATIOS
ROE		27	%		8	%		18	%		6	%		(6	)%
Overhead ratio		65			74			61			74			90
Overhead ratio excluding core deposit intangibles (a)		65			73			60			73			89

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	269,442		$	274,795		$	276,799		$	283,753		$	289,336			(2	)		(7	)
Loans:
Loans retained		227,491			232,555			235,572			241,127			247,128			(2	)		(8	)
Loans held-for-sale and loans at fair value (b)		12,496			12,694			13,153			13,558			12,234			(2	)		2

Total loans		239,987			245,249			248,725			254,685			259,362			(2	)		(7	)
Deposits		413,901			395,797			388,735			378,371			379,605			5			9
Equity		26,500			25,000			25,000			25,000			25,000			6			6

SELECTED BALANCE SHEET DATA (average)
Total assets		271,973			278,497			283,443			287,235			297,938			(2	)		(9	)
Loans:
Loans retained		230,170			233,958			238,273			244,030			250,443			(2	)		(8	)
Loans held-for-sale and loans at fair value (b)		15,621			16,680			16,608			14,613			17,519			(6	)		(11	)

Total loans		245,791			250,638			254,881			258,643			267,962			(2	)		(8	)
Deposits		399,561			389,519			382,202			378,932			371,787			3			7
Equity		26,500			25,000			25,000			25,000			25,000			6			6

Headcount		134,321			133,075			128,992			122,728			118,547			1			13

(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 excludes Consumer & Business Banking’s CDI amortization expense related to prior business combination transactions of $51 million, $58 million, $60 million, $60 million and $60 million for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 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
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	904		$	1,009		$	1,027		$	1,069		$	1,199			(10	)%		(25	)%
Nonaccrual loans:
Nonaccrual loans retained		8,191			7,170			7,579			8,088			8,278			14			(1	)
Nonaccrual loans held-for-sale and loans at fair value		101			103			132			142			150			(2	)		(33	)

Total nonaccrual loans (a)(b)(c)(d)		8,292			7,273			7,711			8,230			8,428			14			(2	)
Nonperforming assets (a)(b)(c)		9,109			8,064			8,576			9,175			9,632			13			(5	)
Allowance for loan losses		14,247			15,247			15,479			15,479			15,554			(7	)		(8	)

Net charge-off rate (e)		1.58	%		1.71	%		1.71	%		1.76	%		1.94	%
Net charge-off rate excluding purchased credit-impaired (“PCI”) loans (e)		2.20			2.39			2.39			2.46			2.72
Allowance for loan losses to ending loans retained		6.26			6.56			6.57			6.42			6.29
Allowance for loan losses to ending loans retained excluding PCI loans (f)		5.22			5.71			6.26			6.12			6.02
Allowance for loan losses to nonaccrual loans retained (a)(f)		104			133			139			130			128
Nonaccrual loans to total loans		3.46			2.97			3.10			3.23			3.25
Nonaccrual loans to total loans excluding PCI loans (a)		4.71			4.05			4.25			4.43			4.47

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

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

(c)

(d)	Includes $1.6 billion of performing junior liens that are subordinate to nonaccrual senior liens; such junior liens are now being reported as nonaccrual loans based upon regulatory guidance issued in the first quarter of 2012. Of the total, $1.4 billion were current at March 31, 2012.

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

(f)	An allowance for loan losses of $5.7 billion at March 31, 2012 and December 31, 2011 and $4.9 billion at September 30, 2011, June 30, 2011 and March 31, 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
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
CONSUMER & BUSINESS BANKING
Noninterest revenue	$	1,585		$	1,603		$	1,952		$	1,889		$	1,757			(1	)%		(10	)%
Net interest income		2,675			2,714			2,730			2,706			2,659			(1	)		1

Total net revenue		4,260			4,317			4,682			4,595			4,416			(1	)		(4	)
Provision for credit losses		96			132			126			42			119			(27	)		(19	)
Noninterest expense		2,866			2,848			2,842			2,713			2,799			1			2

Income before income tax expense		1,298			1,337			1,714			1,840			1,498			(3	)		(13	)

Net income	$	774		$	802		$	1,023		$	1,098		$	893			(3	)		(13	)


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

BUSINESS METRICS
Business banking origination volume	$	1,540		$	1,389		$	1,440		$	1,573		$	1,425			11			8
End-of-period loans		17,822			17,652			17,272			17,141			16,957			1			5
End-of-period deposits:
Checking		159,075			147,779			142,064			136,297			137,463			8			16
Savings		200,662			191,891			186,733			182,127			180,345			5			11
Time and other		35,642			36,743			39,017			41,948			44,001			(3	)		(19	)

Total end-of-period deposits		395,379			376,413			367,814			360,372			361,809			5			9
Average loans		17,667			17,363			17,172			17,057			16,886			2			5
Average deposits:
Checking		147,455			140,672			137,033			136,558			131,954			5			12
Savings		197,199			189,553			184,590			180,892			175,133			4			13
Time and other		36,121			37,708			40,588			43,053			45,035			(4	)		(20	)

Total average deposits		380,775			367,933			362,211			360,503			352,122			3			8
Deposit margin		2.68	%		2.76	%		2.82	%		2.83	%		2.88	%
Average assets	$	30,857		$	30,373		$	30,074		$	29,047		$	29,409			2			5

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs		96			132			126			117			119			(27	)		(19	)
Net charge-off rate		2.19	%		3.02	%		2.91	%		2.74	%		2.86	%
Allowance for loan losses	$	798		$	798		$	800		$	800		$	875			—			(9	)
Nonperforming assets		663			710			773			784			822			(7	)		(19	)

RETAIL BRANCH BUSINESS METRICS
Investment sales volume		6,598			4,696			5,102			6,334			6,584			41			—
Client investment assets		147,083			137,853			132,255			140,285			138,150			7			6
% managed accounts		26	%		24	%		23	%		23	%		22	%

Number of:
Branches		5,541			5,508			5,396			5,340			5,292			1			5
Chase Private Client branch locations		366			262			139			16			16			40			NM
ATMs		17,654			17,235			16,708			16,443			16,265			2			9
Personal bankers		24,198			24,308			24,205			23,330			21,894			—			11
Sales specialists		6,110			6,017			5,639			5,289			5,039			2			21
Client advisors		3,131			3,201			3,177			3,112			3,051			(2	)		3
Active online customers (in thousands)		17,915			17,334			17,326			17,083			17,339			3			3
Active mobile customers (in thousands)		8,570			8,391			7,234			6,580			6,025			2			42
Chase Private Clients		32,857			21,723			11,711			5,807			4,829			51			NM
Checking accounts (in thousands)		27,034			26,626			26,541			26,266			26,622			2			2

(a)	Consumer & Business Banking uses the overhead ratio (excluding the amortization of CDI), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. 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
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
MORTGAGE PRODUCTION AND SERVICING
Mortgage fees and related income	$	2,008		$	723		$	1,380		$	1,100		$	(489	)		178	%		NM	%
Other noninterest revenue		123			124			118			106			104			(1	)		18
Net interest income		177			171			204			124			271			4			(35	)

Total net revenue		2,308			1,018			1,702			1,330			(114	)		127			NM
Provision for credit losses		—			1			2			(2	)		4			NM			NM
Noninterest expense		1,724			1,442			1,360			2,187			1,746			20			(1	)

Income/(loss) before income tax expense/(benefit)		584			(425	)		340			(855	)		(1,864	)		NM			NM

Net income/(loss)	$	461		$	(258	)	$	205		$	(649	)	$	(1,130	)		NM			NM


Overhead ratio		75	%		142	%		80	%		164	%		NM	%

FUNCTIONAL RESULTS
Production
Production revenue	$	1,432		$	859		$	1,090		$	767		$	679			67			111
Production-related net interest & other income		187			210			213			199			218			(11	)		(14	)

Production-related revenue, excl. repurchase losses		1,619			1,069			1,303			966			897			51			80
Production expense		573			518			496			457			424			11			35

Income, excluding repurchase losses		1,046			551			807			509			473			90			121
Repurchase losses		(302	)		(390	)		(314	)		(223	)		(420	)		23			28

Income before income tax expense		744			161			493			286			53			362			NM
Servicing
Loan servicing revenue		1,039			1,032			1,039			1,011			1,052			1			(1	)
Servicing-related net interest & other income		112			90			115			29			156			24			(28	)

Servicing-related revenue		1,151			1,122			1,154			1,040			1,208			3			(5	)
MSR asset modeled amortization		(351	)		(406	)		(457	)		(478	)		(563	)		14			38
Default servicing expense (a)		890			702			585			1,449			1,078			27			(17	)
Core servicing expense (a)		261			223			281			279			248			17			5

Income/(loss), excluding MSR risk management		(351	)		(209	)		(169	)		(1,166	)		(681	)		(68	)		48
MSR risk management, including related net interest income/(expense) (b)		191			(377	)		16			25			(1,236	)		NM			NM

Income/(loss) before income tax expense/(benefit)		(160	)		(586	)		(153	)		(1,141	)		(1,917	)		73			92

Net Income/(loss)	$	461		$	(258	)	$	205		$	(649	)	$	(1,130	)		NM			NM


SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS
Net production revenue:
Production revenue	$	1,432		$	859		$	1,090		$	767		$	679			67			111
Repurchase losses		(302	)		(390	)		(314	)		(223	)		(420	)		23			28

Net production revenue		1,130			469			776			544			259			141			336
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue		1,039			1,032			1,039			1,011			1,052			1			(1	)
Changes in MSR asset fair value due to modeled amortization		(351	)		(406	)		(457	)		(478	)		(563	)		14			38

Total operating revenue		688			626			582			533			489			10			41
Risk management:
Changes in MSR asset fair value due to inputs or assumptions in model		596			(832	)		(4,574	)		(960	)		(751	)		NM			NM
Derivative valuation adjustments and other		(406	)		460			4,596			983			(486	)		NM			16

Total risk management		190	(c)		(372	)		22			23			(1,237	)		NM			NM

Total net mortgage servicing revenue		878			254			604			556			(748	)		246			NM

Mortgage fees and related income	$	2,008		$	723		$	1,380		$	1,100		$	(489	)		178			NM

(a)	Default and core servicing expense include an aggregate of approximately $200 million, $1.0 billion and $650 million of fees and assessments, as well as other costs of foreclosure-related matters for the three months ended March 31, 2012, June 30, 2011 and March 31, 2011, respectively.

(b)	Predominantly includes: (1) changes in the MSR asset fair value due to changes in market interest rates and other modeled inputs and assumptions, and (2) changes in the value of the derivatives used to hedge the MSR asset.

(c)

In the first quarter of 2012, the Firm recognized a gain of $596 million due to an increase in the fair value of the MSR asset, primarily driven by a $644 million gain due to changes in market interest rates. Offsetting this gain was a $406 million loss on the derivatives used to hedge the MSR asset.

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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
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
MORTGAGE PRODUCTION AND SERVICING (continued)
SELECTED BALANCE SHEET DATA
End-of-period loans:
Prime mortgage, including option ARMs (a)	$	17,268		$	16,891		$	14,800		$	14,260		$	14,147			2	%		22	%
Loans held-for-sale and loans at fair value (b)		12,496			12,694			13,153			13,558			12,234			(2	)		2
Average loans:
Prime mortgage, including option ARMs (a)		17,238			15,733			14,451			14,083			14,037			10			23
Loans held-for-sale and loans at fair value (b)		15,621			16,680			16,608			14,613			17,519			(6	)		(11	)
Average assets		58,862			60,473			59,677			58,072			61,354			(3	)		(4	)
Repurchase reserve (ending)		3,213			3,213			3,213			3,213			3,205			—			—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries):
Prime mortgage, including option ARMs		—			1			2			(2	)		4			NM			NM
Net charge-off/(recovery) rate:
Prime mortgage, including option ARMs		—	%		0.03	%		0.06	%		(0.06	)%		0.12	%
30+ day delinquency rate (c)		3.01			3.15			3.35			3.30			3.21
Nonperforming assets (d)	$	708		$	716		$	691		$	662		$	658			(1	)		8

BUSINESS METRICS (in billions)
Origination volume by channel
Retail		23.4			23.1			22.4			20.7			21.0			1			11
Wholesale (e)		—			0.1			0.1			0.1			0.2			NM			NM
Correspondent (e)		14.2			14.9			13.4			10.3			13.5			(5	)		5
CNT (negotiated transactions)		0.8			0.5			0.9			2.9			1.5			60			(47	)

Total origination volume		38.4			38.6			36.8			34.0			36.2			(1	)		6


Application volume by channel
Retail		40.0			34.6			37.7			33.6			31.3			16			28
Wholesale (e)		0.2			0.2			0.2			0.3			0.3			—			(33	)
Correspondent (e)		19.7			17.8			20.2			14.9			13.6			11			45

Total application volume		59.9			52.6			58.1			48.8			45.2			14			33


Third-party mortgage loans serviced (ending)		884.2			902.2			924.5			940.8			955.0			(2	)		(7	)
Third-party mortgage loans serviced (average)		892.6			913.2			931.4			947.0			958.7			(2	)		(7	)
MSR net carrying value (ending)		8.0			7.2			7.8			12.2			13.1			11			(39	)
Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending)		0.90	%		0.80	%		0.84	%		1.30	%		1.37	%
Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average)		0.47			0.45			0.44			0.43			0.45
MSR revenue multiple (f)		1.91	x		1.78	x		1.91	x		3.02	x		3.04	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 March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, excludes mortgage loans insured by U.S. government agencies of $12.7 billion, $12.6 billion, $10.5 billion, $10.1 billion and $9.5 billion, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(d)

(e)	Includes rural housing loans sourced through brokers and correspondents, which are underwritten and closed in conjunction with the U.S. Department of Agriculture Rural Development, which acts as the guarantor in the transactions.

(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 revenue to third-party mortgage loans serviced (average).

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JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	8		$	(13	)	$	23		$	20		$	8			NM	%		—	%
Net interest income		1,073			1,073			1,128			1,197			1,156			—			(7	)

Total net revenue		1,081			1,060			1,151			1,217			1,164			2			(7	)
Provision for credit losses		(192	)		646			899			954			1,076			NM			NM
Noninterest expense		419			432			363			371			355			(3	)		18

Income/(loss) before income tax expense/(benefit)		854			(18	)		(111	)		(108	)		(267	)		NM			NM

Net income/(loss)	$	518		$	(11	)	$	(67	)	$	(66	)	$	(162	)		NM			NM


Overhead ratio		39	%		41	%		32	%		30	%		30	%

BUSINESS METRICS
LOANS EXCLUDING PCI LOANS
End-of-period loans owned:
Home equity	$	75,207		$	77,800		$	80,278		$	82,751		$	85,253			(3	)		(12	)
Prime mortgage, including option ARMs		43,152			44,284			45,439			46,994			48,552			(3	)		(11	)
Subprime mortgage		9,289			9,664			10,045			10,441			10,841			(4	)		(14	)
Other		692			718			741			767			801			(4	)		(14	)

Total end-of-period loans owned	$	128,340		$	132,466		$	136,503		$	140,953		$	145,447			(3	)		(12	)
Average loans owned:
Home equity	$	76,600		$	79,106		$	81,568		$	84,065		$	86,907			(3	)		(12	)
Prime mortgage, including option ARMs		43,701			44,886			46,165			47,615			49,273			(3	)		(11	)
Subprime mortgage		9,485			9,880			10,268			10,667			11,086			(4	)		(14	)
Other		707			729			753			785			829			(3	)		(15	)

Total average loans owned	$	130,493		$	134,601		$	138,754		$	143,132		$	148,095			(3	)		(12	)
PCI LOANS
End-of-period loans owned:
Home equity	$	22,305		$	22,697		$	23,105		$	23,535		$	23,973			(2	)		(7	)
Prime mortgage		14,781			15,180			15,626			16,200			16,725			(3	)		(12	)
Subprime mortgage		4,870			4,976			5,072			5,187			5,276			(2	)		(8	)
Option ARMs		22,105			22,693			23,325			24,072			24,791			(3	)		(11	)

Total end-of-period loans owned	$	64,061		$	65,546		$	67,128		$	68,994		$	70,765			(2	)		(9	)
Average loans owned:
Home equity	$	22,488		$	22,872		$	23,301		$	23,727		$	24,170			(2	)		(7	)
Prime mortgage		14,975			15,405			15,909			16,456			16,974			(3	)		(12	)
Subprime mortgage		4,914			5,024			5,128			5,231			5,301			(2	)		(7	)
Option ARMs		22,395			23,009			23,666			24,420			25,113			(3	)		(11	)

Total average loans owned	$	64,772		$	66,310		$	68,004		$	69,834		$	71,558			(2	)		(9	)
TOTAL REAL ESTATE PORTFOLIOS
End-of-period loans owned:
Home equity	$	97,512		$	100,497		$	103,383		$	106,286		$	109,226			(3	)		(11	)
Prime mortgage, including option ARMs		80,038			82,157			84,390			87,266			90,068			(3	)		(11	)
Subprime mortgage		14,159			14,640			15,117			15,628			16,117			(3	)		(12	)
Other		692			718			741			767			801			(4	)		(14	)

Total end-of-period loans owned	$	192,401		$	198,012		$	203,631		$	209,947		$	216,212			(3	)		(11	)
Average loans owned:
Home equity	$	99,088		$	101,978		$	104,869		$	107,792		$	111,077			(3	)		(11	)
Prime mortgage, including option ARMs		81,071			83,300			85,740			88,491			91,360			(3	)		(11	)
Subprime mortgage		14,399			14,904			15,396			15,898			16,387			(3	)		(12	)
Other		707			729			753			785			829			(3	)		(15	)

Total average loans owned	$	195,265		$	200,911		$	206,758		$	212,966		$	219,653			(3	)		(11	)
Average assets		182,254			187,651			193,692			200,116			207,175			(3	)		(12	)
Home equity origination volume		312			277			294			307			249			13			25

Page 19

JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
REAL ESTATE PORTFOLIOS (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding PCI loans
Home equity	$	542		$	579		$	581		$	592		$	720			(6	)%		(25	)%
Prime mortgage, including option ARMs		131			151			172			198			161			(13	)		(19	)
Subprime mortgage		130			143			141			156			186			(9	)		(30	)
Other		5			3			5			8			9			67			(44	)

Total net charge-offs	$	808		$	876		$	899		$	954		$	1,076			(8	)		(25	)
Net charge-off rate excluding PCI loans
Home equity		2.85	%		2.90	%		2.82	%		2.83	%		3.36	%
Prime mortgage, including option ARMs		1.21			1.33			1.48			1.67			1.32
Subprime mortgage		5.51			5.74			5.43			5.85			6.80
Other		2.84			1.63			2.83			4.01			4.56
Total net charge-off rate excluding PCI loans		2.49			2.58			2.57			2.67			2.95
Net charge-off rate — reported
Home equity		2.20	%		2.25	%		2.20	%		2.20	%		2.63	%
Prime mortgage, including option ARMs		0.65			0.72			0.80			0.90			0.71
Subprime mortgage		3.63			3.81			3.63			3.94			4.60
Other		2.84			1.63			2.83			4.01			4.56
Total net charge-off rate — reported		1.66			1.73			1.72			1.80			1.99

30+ day delinquency rate excluding PCI loans (a)		5.32	%		5.69	%		5.80	%		5.98	%		6.22	%
Allowance for loan losses	$	13,429		$	14,429		$	14,659		$	14,659		$	14,659			(7	)		(8	)
Nonperforming assets (b)(c)		7,738			6,638			7,112			7,729			8,152			17			(5	)
Allowance for loan losses to ending loans retained		6.98	%		7.29	%		7.20	%		6.98	%		6.78	%
Allowance for loan losses to ending loans retained excluding PCI loans		6.01			6.58			7.12			6.90			6.68

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

(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)	Includes $1.6 billion of performing junior liens that are subordinate to nonaccrual senior liens; such junior liens are now being reported as nonaccrual loans based upon regulatory guidance issued in the first quarter of 2012. Of the total, $1.4 billion were current at March 31, 2012.

Page 20

JPMORGAN CHASE & CO.

CARD SERVICES & AUTO

FINANCIAL HIGHLIGHTS

(in millions, except ratio data and headcount)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
INCOME STATEMENT
REVENUE
Credit card income	$	948		$	1,053		$	1,053		$	1,123		$	898			(10	)%		6	%
All other income		303			232			201			183			149			31			103

Noninterest revenue		1,251			1,285			1,254			1,306			1,047			(3	)		19
Net interest income		3,463			3,529			3,521			3,455			3,744			(2	)		(8	)

TOTAL NET REVENUE		4,714			4,814			4,775			4,761			4,791			(2	)		(2	)

Provision for credit losses		738			1,060			1,264			944			353			(30	)		109

NONINTEREST EXPENSE
Compensation expense		486			460			459			448			459			6			6
Noncompensation expense		1,447			1,470			1,560			1,436			1,352			(2	)		7
Amortization of intangibles		96			95			96			104			106			1			(9	)

TOTAL NONINTEREST EXPENSE		2,029			2,025			2,115			1,988			1,917			—			6


Income before income tax expense		1,947			1,729			1,396			1,829			2,521			13			(23	)
Income tax expense		764			678			547			719			987			13			(23	)

NET INCOME	$	1,183		$	1,051		$	849		$	1,110		$	1,534			13			(23	)


FINANCIAL RATIOS
ROE		29	%		26	%		21	%		28	%		39	%
Overhead ratio		43			42			44			42			40

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	199,579		$	208,467		$	199,473		$	197,915		$	201,179			(4	)		(1	)
Loans:
Credit Card		125,331			132,277			127,135			125,523			128,803			(5	)		(3	)
Auto		48,245			47,426			46,659			46,796			47,411			2			2
Student		13,162			13,425			13,751			14,003			14,288			(2	)		(8	)

Total loans		186,738			193,128			187,545			186,322			190,502			(3	)		(2	)
Equity		16,500			16,000			16,000			16,000			16,000			3			3
SELECTED BALANCE SHEET DATA (average)
Total assets	$	199,449		$	202,226		$	199,974		$	198,044		$	204,441			(1	)		(2	)
Loans:
Credit Card		127,616			128,619			126,536			125,038			132,537			(1	)		(4	)
Auto		47,704			46,947			46,549			46,966			47,690			2			—
Student		13,348			13,543			13,865			14,135			14,410			(1	)		(7	)

Total loans		188,668			189,109			186,950			186,139			194,637			—			(3	)
Equity		16,500			16,000			16,000			16,000			16,000			3			3

Headcount		27,862			27,585			27,554			26,874			26,777			1			4

Page 21

JPMORGAN CHASE & CO.

CARD SERVICES & AUTO

FINANCIAL HIGHLIGHTS, CONTINUED

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


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Credit Card	$	1,386		$	1,390		$	1,499		$	1,810		$	2,226			—	%		(38	)%
Auto		33			44			42			19			47			(25	)		(30	)
Student		69			126			93			135			80			(45	)		(14	)

Total net charge-offs		1,488			1,560			1,634			1,964			2,353			(5	)		(37	)
Net charge-off rate:
Credit Card (a)		4.40	%		4.29	%		4.70	%		5.82	%		6.97	%
Auto		0.28			0.37			0.36			0.16			0.40
Student		2.08			3.69			2.66			3.83			2.25
Total net charge-off rate		3.19			3.27			3.47			4.24			4.98

Delinquency rates
30+ day delinquency rate:
Credit Card (b)		2.56			2.81			2.90			2.98			3.57
Auto		0.79			1.13			1.01			0.98			0.97
Student (c)		2.06			1.78			1.93			1.70			2.01
Total 30+ day delinquency rate		2.07			2.32			2.36			2.38			2.79
90+ day delinquency rate — Credit Card (b)		1.37			1.44			1.43			1.55			1.93

Nonperforming assets (d)	$	242		$	228		$	232		$	233		$	275			6			(12	)
Allowance for loan losses:
Credit Card		6,251			6,999			7,528			8,042			9,041			(11	)		(31	)
Auto and Student		1,010			1,010			1,009			879			899			—			12

Total allowance for loan losses		7,261			8,009			8,537			8,921			9,940			(9	)		(27	)
Allowance for loan losses to period-end loans:
Credit Card (b)		5.02	%		5.30	%		5.93	%		6.41	%		7.24	%
Auto and Student		1.64			1.66			1.67			1.45			1.46
Total allowance for loan losses to period-end loans		3.91			4.15			4.55			4.79			5.33

BUSINESS METRICS
Credit Card, excluding Commercial Card
Sales volume (in billions)	$	86.9		$	93.4		$	87.3		$	85.5		$	77.5			(7	)		12
New accounts opened		1.7			2.2			2.0			2.0			2.6			(23	)		(35	)
Open accounts (e)		64.2			65.2			64.3			65.4			91.9			(2	)		(30	)

Merchant Services
Bank card volume (in billions)	$	152.8		$	152.6		$	138.1		$	137.3		$	125.7			—			22
Total transactions (in billions)		6.8			6.8			6.1			5.9			5.6			—			21

Auto and Student
Origination volume (in billions)
Auto	$	5.8		$	4.9		$	5.9		$	5.4		$	4.8			18			21
Student		0.1			0.1			0.1			—			0.1			—			—

(a)

Average loans include loans held-for-sale of $821 million, $97 million, $1 million, $276 million and $3.0 billion for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively. These amounts are excluded when calculating the net charge-off rate.

(b)

Period-end loans include loans held-for-sale of $856 million, $102 million, $94 million and $4.0 billion at March 31, 2012, December 31, 2011, September 30, 2011 and March 31, 2011, respectively. No allowance for loan losses was recorded for these loans. These amounts are excluded when calculating delinquency rates and the allowance for loan losses to period-end loans.

(c)

Excludes student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $1.0 billion, $989 million, $995 million, $968 million and $1.0 billion at March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(d)

Nonperforming assets exclude student loans insured by U.S. government agencies under the FFELP of $586 million, $551 million, $567 million, $558 million and $615 million at March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

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

Page 22

JPMORGAN CHASE & CO.

CARD SERVICES & AUTO

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions)


	QUARTERLY TRENDS
											1Q12 Change
	1Q12		4Q11		3Q11		2Q11		1Q11		4Q11			1Q11
CARD SERVICES SUPPLEMENTAL INFORMATION
Noninterest revenue	$	949	$	985	$	957	$	1,016	$	782		(4	)%		21	%
Net interest income		2,928		2,989		2,984		2,911		3,200		(2	)		(9	)

Total net revenue		3,877		3,974		3,941		3,927		3,982		(2	)		(3	)
Provision for credit losses		636		890		999		810		226		(29	)		181
Noninterest expense		1,636		1,633		1,734		1,622		1,555		—			5

Income before income tax expense		1,605		1,451		1,208		1,495		2,201		11			(27	)

Net income	$	979	$	885	$	737	$	911	$	1,343		11			(27	)

Page 23

JPMORGAN CHASE & CO.

COMMERCIAL BANKING

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	276		$	267		$	269		$	281		$	264			3	%		5	%
Asset management, administration and commissions		36			32			35			34			35			13			3
All other income (a)		245			272			220			283			203			(10	)		21

Noninterest revenue		557			571			524			598			502			(2	)		11
Net interest income		1,100			1,116			1,064			1,029			1,014			(1	)		8

TOTAL NET REVENUE (b)		1,657			1,687			1,588			1,627			1,516			(2	)		9

Provision for credit losses		77			40			67			54			47			93			64

NONINTEREST EXPENSE
Compensation expense		246			215			229			219			223			14			10
Noncompensation expense		345			356			337			336			332			(3	)		4
Amortization of intangibles		7			8			7			8			8			(13	)		(13	)

TOTAL NONINTEREST EXPENSE		598			579			573			563			563			3			6


Income before income tax expense		982			1,068			948			1,010			906			(8	)		8
Income tax expense		391			425			377			403			360			(8	)		9

NET INCOME	$	591		$	643		$	571		$	607		$	546			(8	)		8

Revenue by product:
Lending	$	892		$	881		$	857		$	880		$	837			1			7
Treasury services		602			600			572			556			542			—			11
Investment banking		120			120			116			152			110			—			9
Other		43			86			43			39			27			(50	)		59

Total Commercial Banking revenue	$	1,657		$	1,687		$	1,588		$	1,627		$	1,516			(2	)		9


IB revenue, gross (c)	$	339		$	350		$	320		$	442		$	309			(3	)		10

Revenue by client segment:
Middle Market Banking	$	825		$	810		$	791		$	789		$	755			2			9
Commercial Term Lending		293			299			297			286			286			(2	)		2
Corporate Client Banking		337			326			306			339			290			3			16
Real Estate Banking		105			115			104			109			88			(9	)		19
Other		97			137			90			104			97			(29	)		—

Total Commercial Banking revenue	$	1,657		$	1,687		$	1,588		$	1,627		$	1,516			(2	)		9

FINANCIAL RATIOS
ROE		25	%		32	%		28	%		30	%		28	%
Overhead ratio		36			34			36			35			37

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

(b)

Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income from municipal bond activity of $94 million, $123 million, $90 million, $67 million and $65 million for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

(c)	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
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	161,741		$	158,040		$	151,095		$	148,662		$	140,706			2	%		15	%
Loans:
Loans retained		114,969			111,162			106,834			102,122			99,334			3			16
Loans held-for-sale and loans at fair value		878			840			584			557			835			5			5

Total loans		115,847			112,002			107,418			102,679			100,169			3			16
Equity		9,500			8,000			8,000			8,000			8,000			19			19

Period-end loans by client segment:
Middle Market Banking	$	46,040		$	44,437		$	42,365		$	40,530		$	38,618			4			19
Commercial Term Lending		39,314			38,583			38,539			38,012			37,677			2			4
Corporate Client Banking		17,670			16,747			15,100			13,097			12,705			6			39
Real Estate Banking		8,763			8,211			7,470			7,409			7,535			7			16
Other		4,060			4,024			3,944			3,631			3,634			1			12

Total Commercial Banking loans	$	115,847		$	112,002		$	107,418		$	102,679		$	100,169			3			16


SELECTED BALANCE SHEET DATA (average)
Total assets	$	161,074		$	155,611		$	145,195		$	143,560		$	140,400			4			15
Loans:
Loans retained		112,879			109,328			104,705			100,857			98,829			3			14
Loans held-for-sale and loans at fair value		881			580			632			1,015			756			52			17

Total loans		113,760			109,908			105,337			101,872			99,585			4			14
Liability balances		200,178			199,138			180,275			162,769			156,200			1			28
Equity		9,500			8,000			8,000			8,000			8,000			19			19

Average loans by client segment:
Middle Market Banking	$	45,047		$	43,215		$	41,540		$	40,012		$	38,207			4			18
Commercial Term Lending		38,848			38,679			38,198			37,729			37,810			—			3
Corporate Client Banking		17,514			16,116			14,373			13,062			12,374			9			42
Real Estate Banking		8,341			7,936			7,465			7,467			7,607			5			10
Other		4,010			3,962			3,761			3,602			3,587			1			12

Total Commercial Banking loans	$	113,760		$	109,908		$	105,337		$	101,872		$	99,585			4			14


Headcount		5,612			5,520			5,417			5,140			4,941			2			14

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	12		$	99		$	17		$	40		$	31			(88	)		(61	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)		972			1,036			1,417			1,613			1,925			(6	)		(50	)
Nonaccrual loans held-for-sale and loans at fair value		32			17			26			21			30			88			7

Total nonaccrual loans		1,004			1,053			1,443			1,634			1,955			(5	)		(49	)
Assets acquired in loan satisfactions		60			85			168			197			179			(29	)		(66	)

Total nonperforming assets		1,064			1,138			1,611			1,831			2,134			(7	)		(50	)
Allowance for credit losses:
Allowance for loan losses		2,662			2,603			2,671			2,614			2,577			2			3
Allowance for lending-related commitments		194			189			181			187			206			3			(6	)

Total allowance for credit losses		2,856			2,792			2,852			2,801			2,783			2			3

Net charge-off rate (b)		0.04	%		0.36	%		0.06	%		0.16	%		0.13	%
Allowance for loan losses to period-end loans retained		2.32			2.34			2.50			2.56			2.59
Allowance for loan losses to nonaccrual loans retained (a)		274			251			188			162			134
Nonaccrual loans to total period-end loans		0.87			0.94			1.34			1.59			1.95

(a)	Allowance for loan losses of $163 million, $176 million, $257 million, $289 million and $360 million was held against nonaccrual loans retained at March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

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

Page 25

JPMORGAN CHASE & CO.

TREASURY & SECURITIES SERVICES

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	286		$	313		$	310		$	314		$	303			(9	)%		(6	)%
Asset management, administration and commissions		654			671			656			726			695			(3	)		(6	)
All other income		127			133			141			143			139			(5	)		(9	)

Noninterest revenue		1,067			1,117			1,107			1,183			1,137			(4	)		(6	)
Net interest income		947			905			801			749			703			5			35

TOTAL NET REVENUE		2,014			2,022			1,908			1,932			1,840			—			9

Provision for credit losses		2			19			(20	)		(2	)		4			(89	)		(50	)
Credit allocation income/(expense) (a)		3			(60	)		9			32			27			NM			(89	)

NONINTEREST EXPENSE
Compensation expense		732			672			718			719			715			9			2
Noncompensation expense		728			877			728			719			647			(17	)		13
Amortization of intangibles		13			14			24			15			15			(7	)		(13	)

TOTAL NONINTEREST EXPENSE		1,473			1,563			1,470			1,453			1,377			(6	)		7


Income before income tax expense		542			380			467			513			486			43			12
Income tax expense		191			130			162			180			170			47			12

NET INCOME	$	351		$	250		$	305		$	333		$	316			40			11


FINANCIAL RATIOS
ROE		19	%		14	%		17	%		19	%		18	%
Pretax margin ratio		27			19			24			27			26
Overhead ratio		73			77			77			75			75
Pre-provision profit ratio		27			23			23			25			25

REVENUE BY BUSINESS
Worldwide Securities Services (“WSS”):
Investor Services	$	783		$	752		$	740		$	782		$	745			4			5
Clearance, Collateral Mgmt & Depositary Receipts		179			219			199			220			204			(18	)		(12	)

Total WSS Revenue		962			971			939			1,002			949			(1	)		1
Treasury Services ("TS"):
Transaction Services	$	893		$	874		$	816		$	785		$	765			2			17
Trade Finance		159			177			153			145			126			(10	)		26

Total TS Revenue		1,052			1,051			969			930			891			—			18

(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.

Page 26

JPMORGAN CHASE & CO.

TREASURY & SECURITIES SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

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


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	66,732		$	68,665		$	62,364		$	55,950		$	50,614			(3	)%		32	%
Loans (a)		41,173			42,992			36,389			34,034			31,020			(4	)		33
Equity		7,500			7,000			7,000			7,000			7,000			7			7

SELECTED BALANCE SHEET DATA (average)
Total assets	$	64,559		$	63,686		$	60,141		$	52,688		$	47,873			1			35
Loans (a)		40,538			39,289			35,303			33,069			29,290			3			38
Liability balances		356,964			364,196			341,107			302,858			265,720			(2	)		34
Equity		7,500			7,000			7,000			7,000			7,000			7			7

Headcount		27,765			27,825			28,157			28,230			28,040			—			(1	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	—		$	—		$	—		$	—		$	—			—			—
Nonaccrual loans		5			4			3			3			11			25			(55	)
Allowance for credit losses:
Allowance for loan losses		69			65			49			74			69			6			—
Allowance for lending-related commitments		14			49			46			41			48			(71	)		(71	)

Total allowance for credit losses		83			114			95			115			117			(27	)		(29	)

Net charge-off rate		—	%		—	%		—	%		—	%		—	%
Allowance for loan losses to period-end loans		0.17			0.15			0.14			0.22			0.22
Allowance for loan losses to nonaccrual loans		NM			NM			NM			NM			NM
Nonaccrual loans to period-end loans		0.01			0.01			0.01			0.01			0.04

WSS BUSINESS METRICS
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
Fixed Income	$	11,332		$	10,926		$	10,871		$	10,686		$	10,437			4			9
Equity		5,365			4,878			4,401			5,267			5,238			10			2
Other (b)		1,171			1,066			978			992			944			10			24

Total AUC	$	17,868		$	16,870		$	16,250		$	16,945		$	16,619			6			8

Liability balances (average)		125,088			122,102			107,105			90,204			82,724			2			51

TS BUSINESS METRICS
Liability balances (average)		231,876			242,094			234,002			212,654			182,996			(4	)		27
Trade finance loans (period-end)		35,692			36,696			30,104			27,473			25,499			(3	)		40

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

(b)	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
											1Q12 Change
	1Q12		4Q11		3Q11		2Q11		1Q11		4Q11			1Q11
INTERNATIONAL METRICS
Net revenue by geographic region (a)
Asia/Pacific	$	353	$	339	$	321	$	299	$	276		4	%		28	%
Latin America/Caribbean		82		112		61		80		76		(27	)		8
Europe/Middle East/Africa		668		689		648		691		630		(3	)		6
North America		911		882		878		862		858		3			6

Total net revenue	$	2,014	$	2,022	$	1,908	$	1,932	$	1,840		—			9


Average liability balances (a)
Asia/Pacific	$	50,197	$	49,407	$	42,987	$	42,472	$	39,123		2			28
Latin America/Caribbean		11,852		11,563		12,722		13,506		12,720		2			(7	)
Europe/Middle East/Africa		127,794		130,862		129,608		125,911		108,997		(2	)		17
North America		167,121		172,364		155,790		120,969		104,880		(3	)		59

Total average liability balances	$	356,964	$	364,196	$	341,107	$	302,858	$	265,720		(2	)		34


Trade finance loans (period-end) (a)
Asia/Pacific	$	18,140	$	19,280	$	16,918	$	15,736	$	14,607		(6	)		24
Latin America/Caribbean		6,040		6,254		5,228		4,553		4,014		(3	)		50
Europe/Middle East/Africa		9,972		9,726		6,853		6,184		5,794		3			72
North America		1,540		1,436		1,105		1,000		1,084		7			42

Total trade finance loans	$	35,692	$	36,696	$	30,104	$	27,473	$	25,499		(3	)		40


AUC (period-end) (in billions) (a)
North America	$	9,998	$	9,735	$	9,611	$	9,976	$	9,901		3			1
All other regions		7,870		7,135		6,639		6,969		6,718		10			17

Total AUC	$	17,868	$	16,870	$	16,250	$	16,945	$	16,619		6			8


TSS FIRMWIDE DISCLOSURES (b)
TS revenue - reported	$	1,052	$	1,051	$	969	$	930	$	891		—			18
TS revenue reported in CB		602		600		572		556		542		—			11
TS revenue reported in other lines of business		69		69		68		65		63		—			10

TS firmwide revenue (c)		1,723		1,720		1,609		1,551		1,496		—			15
Worldwide Securities Services revenue		962		971		939		1,002		949		(1	)		1

TSS firmwide revenue (c)	$	2,685	$	2,691	$	2,548	$	2,553	$	2,445		—			10


TSS total foreign exchange (“FX”) revenue (c)		137		154		179		165		160		(11	)		(14	)

TS firmwide liability balances (average) (d)	$	432,299	$	441,572	$	414,485	$	375,432	$	339,240		(2	)		27
TSS firmwide liability balances (average) (d)		557,142		563,334		521,383		465,627		421,920		(1	)		32

Number of:
U.S.$ ACH transactions originated		1,019		983		972		959		992		4			3
Total U.S.$ clearing volume (in thousands)		32,696		33,055		33,117		32,274		30,971		(1	)		6
International electronic funds transfer volume (in thousands) (e)		75,087		63,669		62,718		63,208		60,942		18			23
Wholesale check volume		589		592		601		608		532		(1	)		11
Wholesale cards issued (in thousands) (f)		24,693		25,187		24,288		23,746		23,170		(2	)		7

(a)	Total net revenue, average liability balances, trade finance loans and AUC are based on the domicile of client.

(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 the 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
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,621		$	1,606		$	1,617		$	1,818		$	1,707			1	%		(5	)%
All other income		266			232			281			321			313			15			(15	)

Noninterest revenue		1,887			1,838			1,898			2,139			2,020			3			(7	)
Net interest income		483			446			418			398			386			8			25

TOTAL NET REVENUE		2,370			2,284			2,316			2,537			2,406			4			(1	)

Provision for credit losses		19			24			26			12			5			(21	)		280

NONINTEREST EXPENSE
Compensation expense		1,120			1,046			999			1,068			1,039			7			8
Noncompensation expense		586			674			775			704			599			(13	)		(2	)
Amortization of intangibles		23			32			22			22			22			(28	)		5

TOTAL NONINTEREST EXPENSE		1,729			1,752			1,796			1,794			1,660			(1	)		4


Income before income tax expense		622			508			494			731			741			22			(16	)
Income tax expense		236			206			109			292			275			15			(14	)

NET INCOME	$	386		$	302		$	385		$	439		$	466			28			(17	)


REVENUE BY CLIENT SEGMENT
Private Banking	$	1,279		$	1,212		$	1,298		$	1,289		$	1,317			6			(3	)
Institutional		557			558			478			694			543			—			3
Retail		534			514			540			554			546			4			(2	)

TOTAL NET REVENUE	$	2,370		$	2,284		$	2,316		$	2,537		$	2,406			4			(1	)


FINANCIAL RATIOS
ROE		22	%		18	%		24	%		27	%		29	%
Overhead ratio		73			77			78			71			69
Pretax margin ratio		26			22			21			29			31

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	96,385		$	86,242		$	81,179		$	78,199		$	71,521			12			35
Loans (a)		64,335			57,573			54,178			51,747			46,454			12			38
Equity		7,000			6,500			6,500			6,500			6,500			8			8

SELECTED BALANCE SHEET DATA (average)
Total assets	$	89,582		$	82,594		$	78,669		$	74,206		$	68,918			8			30
Loans		59,311			54,691			52,652			48,837			44,948			8			32
Deposits		127,534			121,493			111,090			97,509			95,250			5			34
Equity		7,000			6,500			6,500			6,500			6,500			8			8

Headcount		17,849			18,036			18,084			17,963			17,203			(1	)		4

(a)	Includes $4.5 billion of prime mortgage loans reported in the Consumer loan portfolio at March 31, 2012.

Page 29

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

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


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
BUSINESS METRICS
Number of:
Client advisors (a)		2,832			2,883			2,864			2,719			2,719			(2	)%		4	%
Retirement Planning Services participants (in thousands)		1,926			1,798			1,755			1,613			1,604			7			20
% of customer assets in 4 & 5 Star Funds (b)		42	%		43	%		47	%		50	%		46	%
% of AUM in 1^stand 2^nd quartiles: (c)
1 year		64			48			49			56			57
3 years		74			72			73			71			70
5 years		76			78			77			76			77

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	27		$	48		$	—		$	33		$	11			(44	)		145
Nonaccrual loans		263			317			311			252			254			(17	)		4
Allowance for credit losses:
Allowance for loan losses		209			209			240			222			257			—			(19	)
Allowance for lending-related commitments		5			10			9			9			4			(50	)		25

Total allowance for credit losses		214			219			249			231			261			(2	)		(18	)
Net charge-off rate		0.18	%		0.35	%		—	%		0.27	%		0.10	%
Allowance for loan losses to period-end loans		0.32			0.36			0.44			0.43			0.55
Allowance for loan losses to nonaccrual loans		79			66			77			88			101
Nonaccrual loans to period-end loans		0.41			0.55			0.57			0.49			0.55

(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)


											March 31, 2012 Change
ASSETS UNDER SUPERVISION	Mar 31, 2012		Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Mar 31, 2011		Dec 31, 2011			Mar 31, 2011
Assets by asset class
Liquidity	$	492	$	515	$	464	$	476	$	490		(4	)%		—	%
Fixed income		355		336		321		319		305		6			16
Equity and multi-asset		417		372		356		430		421		12			(1	)
Alternatives		118		113		113		117		114		4			4

TOTAL ASSETS UNDER MANAGEMENT		1,382		1,336		1,254		1,342		1,330		3			4
Custody/brokerage/administration/deposits		631		585		552		582		578		8			9

TOTAL ASSETS UNDER SUPERVISION	$	2,013	$	1,921	$	1,806	$	1,924	$	1,908		5			6

Assets by client segment
Private Banking	$	303	$	291	$	276	$	291	$	293		4			3
Institutional		732		722		673		708		711		1			3
Retail		347		323		305		343		326		7			6

TOTAL ASSETS UNDER MANAGEMENT	$	1,382	$	1,336	$	1,254	$	1,342	$	1,330		3			4

Private Banking	$	830	$	781	$	738	$	776	$	773		6			7
Institutional		732		723		674		709		713		1			3
Retail		451		417		394		439		422		8			7

TOTAL ASSETS UNDER SUPERVISION	$	2,013	$	1,921	$	1,806	$	1,924	$	1,908		5			6


Mutual fund assets by asset class
Liquidity	$	434	$	458	$	409	$	421	$	436		(5	)		—
Fixed income		116		107		101		105		99		8			17
Equity and multi-asset		167		147		139		176		173		14			(3	)
Alternatives		8		8		8		9		8		—			—

TOTAL MUTUAL FUND ASSETS	$	725	$	720	$	657	$	711	$	716		1			1

Page 31

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

(in billions)


	QUARTERLY TRENDS
	1Q12			4Q11			3Q11			2Q11			1Q11
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,336		$	1,254		$	1,342		$	1,330		$	1,298
Net asset flows:
Liquidity		(25	)		53			(10	)		(16	)		(9	)
Fixed income		11			9			3			12			16
Equities, multi-asset and alternatives		6			(4	)		(1	)		7			11
Market/performance/other impacts		54			24			(80	)		9			14

Ending balance	$	1,382		$	1,336		$	1,254		$	1,342		$	1,330

Assets under supervision rollforward
Beginning balance	$	1,921		$	1,806		$	1,924		$	1,908		$	1,840
Net asset flows		8			69			11			12			31
Market/performance/other impacts		84			46			(129	)		4			37

Ending balance	$	2,013		$	1,921		$	1,806		$	1,924		$	1,908

Page 32

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

(in billions, except where otherwise noted)


	QUARTERLY TRENDS
											1Q12 Change
	1Q12		4Q11		3Q11		2Q11		1Q11		4Q11			1Q11
INTERNATIONAL METRICS
Total net revenue: (in millions) (a)
Europe/Middle East/Africa	$	405	$	392	$	395	$	478	$	439		3	%		(8	)%
Asia/Pacific		236		220		248		257		246		7			(4	)
Latin America/Caribbean		175		224		168		251		165		(22	)		6
North America		1,554		1,448		1,505		1,551		1,556		7			—

Total net revenue	$	2,370	$	2,284	$	2,316	$	2,537	$	2,406		4			(1	)

Assets under management:
Europe/Middle East/Africa	$	282	$	278	$	255	$	298	$	300		1			(6	)
Asia/Pacific		112		105		104		119		115		7			(3	)
Latin America/Caribbean		41		34		32		37		35		21			17
North America		947		919		863		888		880		3			8

Total assets under management	$	1,382	$	1,336	$	1,254	$	1,342	$	1,330		3			4

Assets under supervision:
Europe/Middle East/Africa	$	339	$	329	$	306	$	353	$	353		3			(4	)
Asia/Pacific		152		139		140		161		155		9			(2	)
Latin America/Caribbean		101		89		87		94		88		13			15
North America		1,421		1,364		1,273		1,316		1,312		4			8

Total assets under supervision	$	2,013	$	1,921	$	1,806	$	1,924	$	1,908		5			6

(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
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
INCOME STATEMENT
REVENUE
Principal transactions	$	113		$	324		$	(933	)	$	745		$	1,298			(65	)%		(91	)%
Securities gains		449			54			607			837			102			NM			340
All other income		1,111	(c)		75			186			265			78			NM			NM

Noninterest revenue		1,673			453			(140	)		1,847			1,478			269			13
Net interest income		16			245			8			218			34			(93	)		(53	)

TOTAL NET REVENUE (a)		1,689			698			(132	)		2,065			1,512			142			12

Provision for credit losses		(9	)		(10	)		(7	)		(9	)		(10	)		10			10

NONINTEREST EXPENSE
Compensation expense		823			602			552			614			657			37			25
Noncompensation expense (b)		3,328			1,649			1,995			2,097			1,143			102			191

Subtotal		4,151			2,251			2,547			2,711			1,800			84			131
Net expense allocated to other businesses		(1,382	)		(1,321	)		(1,331	)		(1,270	)		(1,238	)		(5	)		(12	)

TOTAL NONINTEREST EXPENSE		2,769			930			1,216			1,441			562			198			393


Income/(loss) before income tax expense/(benefit)		(1,071	)		(222	)		(1,341	)		633			960			(382	)		NM
Income tax expense/(benefit)		(508	)		(445	)		(696	)		131			238			(14	)		NM

NET INCOME/(LOSS)	$	(563	)	$	223		$	(645	)	$	502		$	722			NM			NM


MEMO:
TOTAL NET REVENUE
Private equity	$	254		$	(113	)	$	(546	)	$	796		$	699			NM			(64	)
Corporate		1,435			811			414			1,269			813			77			77

TOTAL NET REVENUE	$	1,689		$	698		$	(132	)	$	2,065		$	1,512			142			12


NET INCOME/(LOSS)
Private equity	$	134		$	(89	)	$	(347	)	$	444		$	383			NM			(65	)
Corporate		(697	)		312			(298	)		58			339			NM			NM

TOTAL NET INCOME/(LOSS)	$	(563	)	$	223		$	(645	)	$	502		$	722			NM			NM


TOTAL ASSETS (period-end)	$	713,492		$	693,153		$	693,597		$	672,655		$	591,353			3			21

Headcount		22,337			22,117			21,844			21,444			20,927			1			7

(a)

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

(b)	Includes litigation expense of $2.5 billion, $0.5 billion, $1.0 billion, $1.3 billion and $0.4 billion for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

(c)	Includes 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
														1Q12 Change
	1Q12		4Q11			3Q11			2Q11			1Q11		4Q11			1Q11
SUPPLEMENTAL INFORMATION

TREASURY and CHIEF INVESTMENT OFFICE (“CIO”)
Securities gains (a)	$	453	$	(13	)	$	459		$	837		$	102		NM	%		344	%
Investment securities portfolio (average)		361,601		349,750			324,596			335,543			313,319		3			15
Investment securities portfolio (ending)		374,588		355,605			330,800			318,237			328,013		5			14
Mortgage loans (average)		12,636		14,089			13,748			12,731			11,418		(10	)		11
Mortgage loans (ending)		11,819		13,375			14,226			13,243			12,171		(12	)		(3	)

PRIVATE EQUITY
Private equity gains/(losses)
Direct investments
Realized gains	$	66	$	58		$	394		$	1,219		$	171		14			(61	)
Unrealized gains/(losses) (b)		179		(122	)		(827	)		(726	)		370		NM			(52	)

Total direct investments		245		(64	)		(433	)		493			541		NM			(55	)
Third-party fund investments		83		(85	)		(7	)		323			186		NM			(55	)

Total private equity gains/(losses) (c)	$	328	$	(149	)	$	(440	)	$	816		$	727		NM			(55	)


Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	889	$	805		$	709		$	670		$	731		10			22
Cost		549		573			779			595			649		(4	)		(15	)
Quoted public value		931		896			778			721			785		4			19
Privately-held direct securities
Carrying value		4,944		4,597			4,322			5,680			7,212		8			(31	)
Cost		6,819		6,793			6,556			6,891			7,731		—			(12	)
Third-party fund investments (d)
Carrying value		2,131		2,283			2,399			2,481			2,179		(7	)		(2	)
Cost		2,162		2,452			2,454			2,464			2,461		(12	)		(12	)

Total private equity portfolio
Carrying value	$	7,964	$	7,685		$	7,430		$	8,831		$	10,122		4			(21	)
Cost		9,530		9,818			9,789			9,950			10,841		(3	)		(12	)

(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 $571 million, $789 million, $853 million, $876 million and $943 million at March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

Page 35

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION

(in millions)


											March 31, 2012 Change
	Mar 31, 2012		Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Mar 31, 2011		Dec 31, 2011			Mar 31, 2011
CREDIT EXPOSURE
Wholesale (a)
Loans retained	$	283,653	$	278,395	$	255,799	$	244,224	$	229,648		2	%		24	%
Loans held-for-sale and loans at fair value		7,213		4,621		3,684		4,599		6,359		56			13

Total wholesale loans		290,866		283,016		259,483		248,823		236,007		3			23

Consumer, excluding credit card (b)
Loans retained, excluding PCI loans
Home equity		75,207		77,800		80,278		82,751		85,253		(3	)		(12	)
Prime mortgage, including option ARMs		76,292		76,196		74,230		74,276		74,682		—			2
Subprime mortgage		9,289		9,664		10,045		10,441		10,841		(4	)		(14	)
Auto		48,245		47,426		46,659		46,796		47,411		2			2
Business banking		17,822		17,652		17,272		17,141		16,957		1			5
Student and other		13,854		14,143		14,492		14,770		15,089		(2	)		(8	)

Total loans retained, excluding PCI loans		240,709		242,881		242,976		246,175		250,233		(1	)		(4	)
Loans — PCI
Home equity		22,305		22,697		23,105		23,535		23,973		(2	)		(7	)
Prime mortgage		14,781		15,180		15,626		16,200		16,725		(3	)		(12	)
Subprime mortgage		4,870		4,976		5,072		5,187		5,276		(2	)		(8	)
Option ARMs		22,105		22,693		23,325		24,072		24,791		(3	)		(11	)

Total loans — PCI		64,061		65,546		67,128		68,994		70,765		(2	)		(9	)
Total loans retained		304,770		308,427		310,104		315,169		320,998		(1	)		(5	)
Loans held-for-sale (c)		—		—		131		221		188		—			NM

Total consumer, excluding credit card loans		304,770		308,427		310,235		315,390		321,186		(1	)		(5	)


Credit card
Loans retained (d)		124,475		132,175		127,041		125,523		124,791		(6	)		—
Loans held-for-sale		856		102		94		—		4,012		NM			(79	)

Total credit card		125,331		132,277		127,135		125,523		128,803		(5	)		(3	)

Total consumer loans		430,101		440,704		437,370		440,913		449,989		(2	)		(4	)

Total loans		720,967		723,720		696,853		689,736		685,996		—			5

Derivative receivables		85,377		92,477		108,853		77,383		78,744		(8	)		8
Receivables from customers and other (e)		21,235		17,561		25,719		32,678		38,230		21			(44	)

Total credit-related assets		106,612		110,038		134,572		110,061		116,974		(3	)		(9	)

Lending-related commitments
Wholesale		401,064		382,739		379,682		365,689		355,561		5			13
Consumer, excluding credit card		63,121		62,307		64,581		64,649		64,560		1			(2	)
Credit card		533,318		530,616		528,830		535,625		565,813		1			(6	)

Total lending-related commitments		997,503		975,662		973,093		965,963		985,934		2			1


Total credit exposure	$	1,825,082	$	1,809,420	$	1,804,518	$	1,765,760	$	1,788,904		1			2


Memo: Total by category
Wholesale exposure (f)	$	798,438	$	775,693	$	773,633	$	724,573	$	708,542		3			13
Consumer exposures (g)		1,026,644		1,033,727		1,030,885		1,041,187		1,080,362		(1	)		(5	)

Total credit exposure	$	1,825,082	$	1,809,420	$	1,804,518	$	1,765,760	$	1,788,904		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 for all periods presented.

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

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

Page 36

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


																March 31, 2012 Change
	Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Dec 31, 2011			Mar 31, 2011
NONPERFORMING ASSETS AND RATIOS
Wholesale
Loans retained	$	1,941		$	2,398		$	3,011		$	3,362		$	4,578			(19	)%		(58	%
Loans held-for-sale and loans at fair value		214			183			176			214			289			17			(26	)

Total wholesale loans		2,155			2,581			3,187			3,576			4,867			(17	)		(56	)


Consumer, excluding credit card
Home equity (a)		2,766			1,287			1,290			1,308			1,263			115			119
Prime mortgage, including option ARMs		3,258			3,462			3,656			4,024			4,166			(6	)		(22	)
Subprime mortgage		1,569			1,781			1,932			2,058			2,106			(12	)		(25	)
Auto		102			118			114			111			120			(14	)		(15	)
Business banking		649			694			756			770			810			(6	)		(20	)
Student and other		105			69			68			79			107			52			(2	)

Total consumer, excluding credit card		8,449			7,411			7,816			8,350			8,572			14			(1	)

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


Total consumer nonaccrual loans (b)		8,450			7,412			7,818			8,352			8,574			14			(1	)

Total nonaccrual loans		10,605			9,993			11,005			11,928			13,441			6			(21	)


Derivative receivables		32			18			11			22			21			78			52
Assets acquired in loan satisfactions		1,031			1,025			1,178			1,290			1,524			1			(32	)

Total nonperforming assets (c)		11,668			11,036			12,194			13,240			14,986			6			(22	)
Wholesale lending-related commitments (d)		756			865			705			793			895			(13	)		(16	)

Total (c)	$	12,424		$	11,901		$	12,899		$	14,033		$	15,881			4			(22	)


Total nonaccrual loans to total loans		1.47	%		1.38	%		1.58	%		1.73	%		1.96	%
Total wholesale nonaccrual loans to total wholesale loans		0.74			0.91			1.23			1.44			2.06
Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans		2.77			2.40			2.52			2.65			2.67

NONPERFORMING ASSETS BY LOB
Investment Bank	$	988		$	1,294		$	1,508		$	1,788		$	2,741			(24	)		(64	)
Retail Financial Services (a)(b)		9,008			7,961			8,444			9,033			9,482			13			(5	)
Card Services & Auto		242			228			232			233			275			6			(12	)
Commercial Banking		1,064			1,138			1,611			1,831			2,134			(7	)		(50	)
Treasury & Securities Services		5			4			3			3			11			25			(55	)
Asset Management		286			336			322			264			263			(15	)		9
Corporate/Private Equity (e)		75			75			74			88			80			—			(6	)

TOTAL	$	11,668		$	11,036		$	12,194		$	13,240		$	14,986			6			(22	)

(a)	Includes $1.6 billion of performing junior liens that are subordinate to nonaccrual senior liens; such junior liens are now being reported as nonaccrual loans based upon regulatory guidance issued in the first quarter of 2012. Of the total, $1.4 billion were current at March 31, 2012.

(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)

At March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $11.8 billion, $11.5 billion, $9.5 billion, $9.1 billion and $8.8 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $1.2 billion, $954 million, $2.4 billion, $2.4 billion and $2.3 billion, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $586 million, $551 million, $567 million, $558 million and $615 million, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

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

(e)	Predominantly relates to retained prime mortgage loans.

Page 37

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
GROSS CHARGE-OFFS
Wholesale loans	$	92		$	431		$	98		$	134		$	253			(79	)%		(64	)%
Consumer loans, excluding credit card		1,134			1,310			1,292			1,357			1,460			(13	)		(22	)
Credit card loans		1,627			1,641			1,765			2,131			2,631			(1	)		(38	)

Total consumer loans		2,761			2,951			3,057			3,488			4,091			(6	)		(33	)

Total loans	$	2,853		$	3,382		$	3,155		$	3,622		$	4,344			(16	)		(34	)


GROSS RECOVERIES
Wholesale loans	$	87		$	85		$	249		$	54		$	88			2			(1	)
Consumer loans, excluding credit card		138			139			133			144			131			(1	)		5
Credit card loans		241			251			266			321			405			(4	)		(40	)

Total consumer loans		379			390			399			465			536			(3	)		(29	)

Total loans	$	466		$	475		$	648		$	519		$	624			(2	)		(25	)


NET CHARGE-OFFS/(RECOVERIES)
Wholesale loans	$	5		$	346		$	(151	)	$	80		$	165			(99	)		(97	)
Consumer loans, excluding credit card		996			1,171			1,159			1,213			1,329			(15	)		(25	)
Credit card loans		1,386			1,390			1,499			1,810			2,226			—			(38	)

Total consumer loans		2,382			2,561			2,658			3,023			3,555			(7	)		(33	)

Total loans	$	2,387		$	2,907		$	2,507		$	3,103		$	3,720			(18	)		(36	)


NET CHARGE-OFF/(RECOVERY) RATES
Wholesale retained loans		0.01	%		0.52	%		(0.24	)%		0.14	%		0.30	%
Consumer retained loans, excluding credit card (a)		1.31			1.50			1.47			1.53			1.66
Credit card retained loans		4.40			4.29			4.70			5.82			6.97
Total retained loans		1.35			1.64			1.44			1.83			2.22
Consumer retained loans, excluding credit card and PCI loans		1.66			1.91			1.88			1.96			2.14
Consumer retained loans, excluding PCI loans		2.60			2.74			2.84			3.25			3.77
Total retained loans, excluding PCI loans		1.49			1.81			1.60			2.04			2.48

Memo: Average retained loans
Wholesale loans	$	276,764		$	265,758		$	250,145		$	237,511		$	226,544			4			22
Consumer retained loans, excluding credit card		306,657			308,980			312,341			317,862			323,961			(1	)		(5	)
Credit card retained loans		126,795			128,522			126,535			124,762			129,535			(1	)		(2	)

Total average retained consumer loans		433,452			437,502			438,876			442,624			453,496			(1	)		(4	)

Total average retained loans	$	710,216		$	703,260		$	689,021		$	680,135		$	680,040			1			4


Consumer retained loans, excluding credit card and PCI loans	$	241,885		$	242,670		$	244,337		$	248,028		$	252,403			—			(4	)
Consumer retained loans, excluding PCI loans		368,679			371,192			370,872			372,790			381,938			(1	)		(3	)
Total retained loans, excluding PCI loans		645,423			636,923			620,974			610,246			608,432			1			6

(a)	To date, no charge-offs have been recorded for PCI loans.

Page 38

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	27,609		$	28,350		$	28,520		$	29,750		$	32,266			(3	)%		(14	)%
Net charge-offs		2,387			2,907			2,507			3,103			3,720			(18	)		(36	)
Provision for loan losses		646			2,193			2,351			1,872			1,196			(71	)		(46	)
Other		3			(27	)		(14	)		1			8			NM			(63	)

Ending balance	$	25,871		$	27,609		$	28,350		$	28,520		$	29,750			(6	)		(13	)


ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	673		$	686		$	626		$	688		$	717			(2	)		(6	)
Provision for lending-related commitments		80			(9	)		60			(62	)		(27	)		NM			NM
Other		(3	)		(4	)		—			—			(2	)		25			(50	)

Ending balance	$	750		$	673		$	686		$	626		$	688			11			9


ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,386		$	1,436		$	1,337		$	1,178		$	1,330			(3	)		4
Retail Financial Services		14,247			15,247			15,479			15,479			15,554			(7	)		(8	)
Card Services & Auto		7,261			8,009			8,537			8,921			9,940			(9	)		(27	)
Commercial Banking		2,662			2,603			2,671			2,614			2,577			2			3
Treasury & Securities Services		69			65			49			74			69			6			—
Asset Management		209			209			240			222			257			—			(19	)
Corporate/Private Equity		37			40			37			32			23			(8	)		61

Total	$	25,871		$	27,609		$	28,350		$	28,520		$	29,750			(6	)		(13	)

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JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


																March 31, 2012 Change
	Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Dec 31, 2011			Mar 31, 2011
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset-specific	$	448		$	516		$	670		$	749		$	1,030			(13	)%		(57	)%
Formula-based		3,875			3,800			3,632			3,342			3,204			2			21

Total wholesale		4,323			4,316			4,302			4,091			4,234			—			2

Consumer, excluding credit card
Asset-specific		760			828			1,016			1,049			1,067			(8	)		(29	)
Formula-based		8,826			9,755			10,563			10,397			10,467			(10	)		(16	)
PCI		5,711			5,711			4,941			4,941			4,941			—			16

Total consumer, excluding credit card		15,297			16,294			16,520			16,387			16,475			(6	)		(7	)

Credit card
Asset-specific		2,402			2,727			3,052			3,451			3,819			(12	)		(37	)
Formula-based		3,849			4,272			4,476			4,591			5,222			(10	)		(26	)

Total credit card		6,251			6,999			7,528			8,042			9,041			(11	)		(31	)

Total consumer		21,548			23,293			24,048			24,429			25,516			(7	)		(16	)

Total allowance for loan losses		25,871			27,609			28,350			28,520			29,750			(6	)		(13	)
Allowance for lending-related commitments		750			673			686			626			688			11			9

Total allowance for credit losses	$	26,621		$	28,282		$	29,036		$	29,146		$	30,438			(6	)		(13	)


CREDIT RATIOS
Wholesale allowance to total wholesale retained loans		1.52	%		1.55	%		1.68	%		1.68	%		1.84	%
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		5.02			5.28			5.33			5.20			5.13
Credit card allowance to total credit card retained loans		5.02			5.30			5.93			6.41			7.24
Total allowance to total retained loans		3.63			3.84			4.09			4.16			4.40
Wholesale allowance to wholesale retained nonaccrual loans		223			180			143			122			92
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (a)		181			220			211			196			192
Allowance, excluding credit card allowance, to retained non-accrual loans, excluding credit card nonaccrual loans (a)		189			210			192			175			157
Total allowance to total retained nonaccrual loans		249			281			262			243			226

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		3.98			4.36			4.77			4.65			4.61
Total allowance to total retained loans		3.11			3.35			3.74			3.83			4.10
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (a)		113			143			148			137			135
Allowance, excluding credit card allowance, to retained non-accrual loans, excluding credit card nonaccrual loans (a)		134			152			147			133			120
Total allowance to total retained nonaccrual loans		194			223			216			201			189

(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.

Page 40

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
PROVISION FOR CREDIT LOSSES BY LINE OF BUSINESS
Provision for loan losses
Investment Bank	$	(85	)	$	298		$	(7	)	$	(142	)	$	(409	)		NM	%		79	%
Retail Financial Services		(96	)		777			1,027			994			1,199			NM			NM
Card Services & Auto		738			1,061			1,264			944			353			(30	)		109
Commercial Banking		72			29			73			73			51			148			41
Treasury & Securities Services		4			16			(25	)		5			7			(75	)		(43	)
Asset Management		21			23			26			7			5			(9	)		320
Corporate/Private Equity		(8	)		(11	)		(7	)		(9	)		(10	)		27			20

Total provision for loan losses	$	646		$	2,193		$	2,351		$	1,872		$	1,196			(71	)		(46	)


Provision for lending-related commitments
Investment Bank	$	80		$	(26	)	$	61		$	(41	)	$	(20	)		NM			NM
Retail Financial Services		—			2			—			—			—			NM			—
Card Services & Auto		—			(1	)		—			—			—			NM			—
Commercial Banking		5			11			(6	)		(19	)		(4	)		(55	)		NM
Treasury & Securities Services		(2	)		3			5			(7	)		(3	)		NM			33
Asset Management		(2	)		1			—			5			—			NM			NM
Corporate/Private Equity		(1	)		1			—			—			—			NM			NM

Total provision for lending-related commitments	$	80		$	(9	)	$	60		$	(62	)	$	(27	)		NM			NM


Provision for credit losses
Investment Bank	$	(5	)	$	272		$	54		$	(183	)	$	(429	)		NM			99
Retail Financial Services		(96	)		779			1,027			994			1,199			NM			NM
Card Services & Auto		738			1,060			1,264			944			353			(30	)		109
Commercial Banking		77			40			67			54			47			93			64
Treasury & Securities Services		2			19			(20	)		(2	)		4			(89	)		(50	)
Asset Management		19			24			26			12			5			(21	)		280
Corporate/Private Equity		(9	)		(10	)		(7	)		(9	)		(10	)		10			10

Total provision for credit losses	$	726		$	2,184		$	2,411		$	1,810		$	1,169			(67	)		(38	)




PROVISION FOR CREDIT LOSSES BY PORTFOLIO SEGMENT
Provision for loan losses
Wholesale	$	8		$	364		$	67		$	(55	)	$	(359	)		(98	)		NM
Consumer, excluding credit card		2			939			1,285			1,117			1,329			(100	)		(100	)
Credit card		636			890			999			810			226			(29	)		181

Total consumer		638			1,829			2,284			1,927			1,555			(65	)		(59	)

Total provision for loan losses	$	646		$	2,193		$	2,351		$	1,872		$	1,196			(71	)		(46	)


Provision for lending-related commitments
Wholesale	$	81		$	(11	)	$	60		$	(62	)	$	(27	)		NM			NM
Consumer, excluding credit card		(1	)		2			—			—			—			NM			NM
Credit card		—			—			—			—			—			—			—

Total consumer		(1	)		2			—			—			—			NM			NM

Total provision for lending-related commitments	$	80		$	(9	)	$	60		$	(62	)	$	(27	)		NM			NM


Provision for credit losses
Wholesale	$	89		$	353		$	127		$	(117	)	$	(386	)		(75	)		NM
Consumer, excluding credit card		1			941			1,285			1,117			1,329			(100	)		(100	)
Credit card		636			890			999			810			226			(29	)		181

Total consumer		637			1,831			2,284			1,927			1,555			(65	)		(59	)

Total provision for credit losses	$	726		$	2,184		$	2,411		$	1,810		$	1,169			(67	)		(38	)

Page 41

JPMORGAN CHASE & CO.

MARKET RISK-RELATED INFORMATION

(in millions)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
95% CONFIDENCE LEVEL- AVERAGE IB TRADING VAR, CREDIT PORTFOLIO VAR AND OTHER VAR
IB VaR by risk type:
Fixed income	$	60		$	56		$	48		$	45		$	49			7	%		22	%
Foreign exchange		11			12			10			9			11			(8	)		—
Equities		17			19			19			25			29			(11	)		(41	)
Commodities and other		21			20			15			16			13			5			62
Diversification benefit to IB trading VaR (a)		(46	)		(50	)		(39	)		(37	)		(38	)		8			(21	)

IB trading VaR (b)		63			57			53			58			64			11			(2	)

Credit portfolio VaR (c)		32			39			38			27			26			(18	)		23
Diversification benefit to IB trading and credit portfolio VaR (a)		(14	)		(21	)		(21	)		(8	)		(7	)		33			(100	)

Total IB trading and credit portfolio VaR		81			75			70			77			83			8			(2	)


Other VaR:
Mortgage Production and Servicing VaR (d)		11			44			40			20			16			(75	)		(31	)
Chief Investment Office VaR (e)		67			69			48			51			60			(3	)		12
Diversification benefit to other VaR (a)		(6	)		(30	)		(15	)		(10	)		(14	)		80			57

Total other VaR		72			83			73			61			62			(13	)		16


Diversification benefit to total IB and other VaR (a)		(37	)		(45	)		(35	)		(44	)		(57	)		18			35

Total IB and other VaR (f)	$	116		$	113		$	108		$	94		$	88			3			32

(a)

Average 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. The risk of a portfolio of positions is therefore usually less than the sum of the risks of the positions themselves.

(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, MSR, and all related hedges.

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

(f)

Total IB, 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.); and certain securities and investments held by Corporate/Private Equity, including private equity investments, capital management positions and longer-term investments managed by CIO.

Page 42

JPMORGAN CHASE & CO.

CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS

(in millions, except ratio data)


																March 31, 2012 Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Mar 31,
	2012			2011			2011			2011			2011			2011			2011
CAPITAL (based on Basel I)
Tier 1 capital	$	155,811	(e)	$	150,384		$	147,823		$	148,880		$	147,234			4	%		6	%
Total capital		193,150	(e)		188,088			186,510			187,899			186,417			3			4
Tier 1 common capital (a)		128,101	(e)		122,916			120,234			121,209			119,598			4			7
Risk-weighted assets		1,235,803	(e)		1,221,198			1,217,548			1,198,711			1,192,536			1			4
Adjusted average assets (b)		2,195,625	(e)		2,202,087			2,168,678			2,129,510			2,041,153			—			8
Tier 1 capital ratio		12.6	(e)%		12.3	%		12.1	%		12.4	%		12.3	%
Total capital ratio		15.6	(e)		15.4			15.3			15.7			15.6
Tier 1 leverage ratio		7.1	(e)		6.8			6.8			7.0			7.2
Tier 1 common capital ratio (a)		10.4	(e)		10.1			9.9			10.1			10.0

TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity	$	181,928		$	175,773		$	174,487		$	175,079		$	172,798			4			5
Less: Goodwill		48,208			48,188			48,180			48,882			48,856			—			(1	)
Less: Other intangible assets		3,029			3,207			3,396			3,679			3,857			(6	)		(21	)
Add: Deferred tax liabilities (d)		2,719			2,729			2,645			2,632			2,603			—			4

Total tangible common equity	$	133,410		$	127,107		$	125,556		$	125,150		$	122,688			5			9


TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity	$	177,711		$	175,042		$	174,454		$	174,077		$	169,415			2			5
Less: Goodwill		48,218			48,225			48,631			48,834			48,846			—			(1	)
Less: Other intangible assets		3,137			3,326			3,545			3,738			3,928			(6	)		(20	)
Add: Deferred tax liabilities (d)		2,724			2,687			2,639			2,618			2,595			1			5

Total tangible common equity	$	129,080		$	126,178		$	124,917		$	124,123		$	119,236			2			8


INTANGIBLE ASSETS (period-end)
Goodwill	$	48,208		$	48,188		$	48,180		$	48,882		$	48,856			—			(1	)
Mortgage servicing rights		8,039			7,223			7,833			12,243			13,093			11			(39	)
Purchased credit card relationships		535			602			668			744			820			(11	)		(35	)
All other intangibles		2,494			2,605			2,728			2,935			3,037			(4	)		(18	)

Total intangibles	$	59,276		$	58,618		$	59,409		$	64,804		$	65,806			1			(10	)


DEPOSITS (period-end)
U.S. offices:
Noninterest-bearing	$	343,299		$	346,670		$	323,058		$	287,654		$	244,136			(1	)		41
Interest-bearing		521,323			504,864			484,640			469,618			468,654			3			11
Non-U.S. offices:
Noninterest-bearing		16,276			18,790			14,724			13,422			11,644			(13	)		40
Interest-bearing		247,614			257,482			270,286			277,991			271,395			(4	)		(9	)

Total deposits	$	1,128,512		$	1,127,806		$	1,092,708		$	1,048,685		$	995,829			—			13

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

(c)	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.

Page 43

JPMORGAN CHASE & CO.

MORTGAGE LOAN REPURCHASE LIABILITY

(in millions)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
MORTGAGE LOAN REPURCHASE LIABILITY (a)(b)
Summary of changes in mortgage repurchase liability:
Repurchase liability at beginning of period	$	3,557		$	3,616		$	3,631		$	3,474		$	3,285			(2	)%		8	%
Realized losses (c)		(364	)		(462	)		(329	)		(241	)		(231	)		21			(58	)
Provision for repurchase losses		323			403			314			398			420			(20	)		(23	)

Repurchase liability at end of period	$	3,516		$	3,557		$	3,616		$	3,631		$	3,474			(1	)		1


Outstanding repurchase demands and unresolved mortgage insurance rescission notices by counterparty type: (d)
GSEs and other (b)(e)	$	2,624		$	2,345		$	2,133		$	1,826		$	1,321			12			99
Mortgage insurers		1,000			1,034			1,112			1,093			1,240			(3	)		(19	)
Overlapping population (f)		(116	)		(113	)		(155	)		(145	)		(127	)		(3	)		9

Total	$	3,508		$	3,266		$	3,090		$	2,774		$	2,434			7			44


Quarterly mortgage repurchase demands received by loan origination vintage: (d)
Pre-2005	$	41		$	39		$	34		$	32		$	15			5			173
2005		95			55			200			57			45			73			111
2006		375			315			232			363			158			19			137
2007		645			804			602			510			381			(20	)		69
2008		361			291			323			301			249			24			45
Post-2008		124			81			153			89			94			53			32

Total	$	1,641		$	1,585		$	1,544		$	1,352		$	942			4			74

(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.

(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 $186 million, $237 million, $162 million, $126 million and $115 million for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.

(d)	Excludes amounts related to Washington Mutual.

(e)

The Firm’s outstanding repurchase demands are largely from the GSEs. Other 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 litigation.

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

Page 44

JPMORGAN CHASE & CO.

PER SHARE-RELATED INFORMATION

(in millions, except per share and ratio data)


	QUARTERLY TRENDS
																1Q12 Change
	1Q12			4Q11			3Q11			2Q11			1Q11			4Q11			1Q11
EARNINGS PER SHARE DATA
Basic earnings per share:
Net income	$	5,383		$	3,728		$	4,262		$	5,431		$	5,555			44	%		(3	) %
Less: Preferred stock dividends		157			157			157			158			157			—			—

Net income applicable to common equity		5,226			3,571			4,105			5,273			5,398			46			(3	)
Less: Dividends and undistributed earnings allocated to participating securities		209			146			169			206			262			43			(20	)

Net income applicable to common stockholders	$	5,017		$	3,425		$	3,936		$	5,067		$	5,136			46			(2	)


Total weighted-average basic shares outstanding		3,818.8			3,801.9			3,859.6			3,958.4			3,981.6			—			(4	)

Net income per share	$	1.31		$	0.90		$	1.02		$	1.28		$	1.29			46			2

Diluted earnings per share:
Net income applicable to common stockholders	$	5,017		$	3,425		$	3,936		$	5,067		$	5,136			46			(2	)

Total weighted-average basic shares outstanding		3,818.8			3,801.9			3,859.6			3,958.4			3,981.6			—			(4	)
Add: Employee stock options, SARs and warrants (a)		14.6			9.8			12.6			24.8			32.5			49			(55	)

Total weighted-average diluted shares outstanding (b)		3,833.4			3,811.7			3,872.2			3,983.2			4,014.1			1			(5	)
Net income per share	$	1.31		$	0.90		$	1.02		$	1.27		$	1.28			46			2

COMMON SHARES OUTSTANDING
Common shares — at period end		3,822.0			3,772.7			3,798.9			3,910.2			3,986.6			1			(4	)
Cash dividends declared per share (c)	$	0.30		$	0.25		$	0.25		$	0.25		$	0.25			20			20
Book value per share		47.60			46.59			45.93			44.77			43.34			2			10
Dividend payout ratio		23	%		27	%		24	%		19	%		20	%

SHARE PRICE (c)
High	$	46.49		$	37.54		$	42.55		$	47.80		$	48.36			24			(4	)
Low		34.01			27.85			28.53			39.24			42.65			22			(20	)
Close		45.98			33.25			30.12			40.94			46.10			38			—
Market capitalization		175,737			125,442			114,422			160,083			183,783			40			(4	)

COMMON EQUITY REPURCHASE PROGRAM (d)
Aggregate common equity repurchased	$	216.1	(e)	$	863.8		$	4,424.9	(f)	$	3,479.8		$	95.0			(75	)		127
Common equity repurchased		5.5	(e)		27.2			127.4	(f)		80.3			2.1			(80	)		162
Average purchase price	$	39.49	(e)	$	31.75		$	34.72	(f)	$	43.33		$	45.66			24			(14	)

(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 169 million, 197 million, 197 million, 53 million and 85 million for the three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 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 $15.0 billion common equity (i.e., common stock and warrants) repurchase program, of which up to $12.0 billion is approved for 2012 and up to an additional $3.0 billion is approved through the end of the first quarter of 2013. The new program supersedes a $15.0 billion repurchase program approved in 2011, of which $8.95 billion was utilized in 2011.

(e)	Includes $86.2 million of repurchases under the prior common equity repurchase program in December 2011, which settled in early January 2012.

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

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JPMORGAN CHASE & CO.

NON-GAAP FINANCIAL MEASURES

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

(a)

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

(b)

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

(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. ROTCE measures the Firm’s earnings as a percentage of TCE. In management’s view, these measures are meaningful to the Firm, as well as analysts and investors, in assessing the Firm’s use of equity, and in facilitating comparisons with competitors.

(d)

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

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

(f)

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

(g)

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

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JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

ACH: Automated Clearing House.

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

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

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

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

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

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

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

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

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

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

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

NM: Not meaningful.

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

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

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

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JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

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

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

Purchased credit-impaired (“PCI”) loans: 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, which excludes the impact of taxable-equivalent adjustments.

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

Risk-weighted assets (“RWA”): Risk-weighted assets consist of on- and off-balance sheet assets that are assigned to one of several broad risk categories and weighted by factors representing their risk and potential for default. On-balance sheet assets are risk-weighted based on the perceived credit risk associated with the obligor or counterparty, the nature of any collateral, and the guarantor, if any. Off-balance sheet assets such as lending-related commitments, guarantees, derivatives and other applicable off-balance sheet positions are risk-weighted by multiplying the contractual amount by the appropriate credit conversion factor to determine the on-balance sheet credit equivalent amount, which is then risk-weighted based on the same factors used for on-balance sheet assets. Risk-weighted assets also incorporate a measure for 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 measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.

Washington Mutual transaction: On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank (“Washington Mutual”) from the FDIC. For additional information, see Glossary of Terms on page 311 of JPMorgan Chase’s 2011 Annual Report.

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JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

INVESTMENT BANK (“IB”)

IB’s revenue comprises the following:

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

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

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

Credit portfolio revenue includes net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring, for IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

RETAIL FINANCIAL SERVICES (“RFS”)

Description of selected business metrics within Consumer & Business Banking:

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

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

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: 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)

CB Revenue:

Lending includes a variety of financing alternatives, which are primarily provided on a basis secured by receivables, inventory, equipment, real estate or other assets. Products include term loans, revolving lines of credit, bridge financing, asset-based structures, leases, commercial card products and standby letters of credit.

Treasury services includes a broad range of products and services enabling clients to transfer, invest and manage the receipt and disbursement of funds, while providing the related information reporting. These products and services include U.S. dollar and multi-currency clearing, ACH, lockbox, disbursement and reconciliation services, check deposits, other check and currency-related services, trade finance and logistics solutions, deposit products, sweeps and money market mutual funds.

Investment banking products provide clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through loan syndications, investment-grade debt, asset-backed securities, private placements, high-yield bonds, equity underwriting, advisory, interest rate derivatives, foreign exchange hedges and securities sales.

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, time deposits 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, time deposits and securities loaned or sold under repurchase agreements) as part of customer cash management programs.

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 reflects the operating performance before the impact of credit, and is another measure of performance for TSS against the performance of 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. Excludes assets managed by American Century Companies, Inc. in which the Firm sold its minority ownership interest on August 31, 2011.

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

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

Alternative assets – The following types of assets constitute alternative investments – hedge funds, currency, real estate and private equity.

AM’s client segments comprise the following:

Institutional 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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