FORM 10–Q

For the Quarterly Period Ended September 30, 2005		Commission file number 1-5805

JPMORGAN CHASE & CO.

 

Delaware		13-2624428
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)
270 Park Avenue, New York, New York		10017
(Address of principal executive offices)		(Zip Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [    ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes [X] No [    ]

Common Stock, $1 Par Value		3,499,064,504

FORM 10–Q
TABLE OF CONTENTS

						Page
Part I — Financial information
Item 1				Consolidated Financial Statements — JPMorgan Chase & Co.:
				Consolidated statements of income (unaudited) for the three and nine months ended September 30, 2005, and September 30, 2004			65
				Consolidated balance sheets (unaudited) at September 30, 2005, and December 31, 2004			66
				Consolidated statements of changes in stockholders’ equity (unaudited) for the nine months ended September 30, 2005, and September 30, 2004			67
				Consolidated statements of cash flows (unaudited) for the nine months ended September 30, 2005, and September 30, 2004			68
				Notes to consolidated financial statements (unaudited)			69
				Consolidated average balance sheet, interest and rates (unaudited) for the three and nine months ended September 30, 2005, and September 30, 2004			89
				Glossary of Terms and Line of Business Metrics			91
Item 2				Management’s Discussion and Analysis of Financial Condition and Results of Operations:
				Consolidated Financial Highlights			3
				Introduction			4
				Executive Overview			6
				Consolidated Results of Operations			8
				Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures			11
				Business Segment Results			15
				Balance Sheet Analysis			42
				Capital Management			43
				Off-Balance Sheet Arrangements and Contractual Cash Obligations			46
				Risk Management			47
				Supervision and Regulation			62
				Critical Accounting Estimates Used by the Firm			63
				Accounting and Reporting Developments			63
Item 3				Quantitative and Qualitative Disclosures About Market Risk			96
Item 4				Controls and Procedures			96
Part II — Other information
Item 1				Legal Proceedings			96
Item 2				Unregistered Sales of Equity Securities and Use of Proceeds			97
Item 3				Defaults Upon Senior Securities			98
Item 4				Submission of Matters to a Vote of Security Holders			98
Item 5				Other Information			98
Item 6				Exhibits			98

JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS

																						Nine months ended
(in millions, except per share, ratio and headcount data)																						September 30,
As of or for the period ended			3Q 2005				2Q 2005				1Q 2005				4Q 2004				3Q 2004				2005				2004	(f)
Selected income statement data
Net interest income		$	4,852			$	5,001			$	5,225			$	5,329			$	5,452			$	15,078			$	11,432
Noninterest revenue			9,613				7,742				8,422				7,621				7,053				25,777				18,715
Total net revenue			14,465				12,743				13,647				12,950				12,505				40,855				30,147
Provision for credit losses(a)			1,245				587				427				1,157				1,169				2,259				1,387
Noninterest expense before Merger costs and Litigation reserve charge			9,243				8,748				8,892				8,863				8,625				26,883				20,431
Merger costs			221				279				145				523				752				645				842
Litigation reserve charge			—				1,872				900				—				—				2,772				3,700
Total noninterest expense			9,464				10,899				9,937				9,386				9,377				30,300				24,973
Income before income tax expense			3,756				1,257				3,283				2,407				1,959				8,296				3,787
Income tax expense			1,229				263				1,019				741				541				2,511				987
Net income		$	2,527			$	994			$	2,264			$	1,666			$	1,418			$	5,785			$	2,800
Per common share
Net income per share:
Basic		$	0.72			$	0.28			$	0.64			$	0.47			$	0.40			$	1.65			$	1.09
Diluted			0.71				0.28				0.63				0.46				0.39				1.62				1.06
Cash dividends declared per share			0.34				0.34				0.34				0.34				0.34				1.02				1.02
Book value per share			30.26				29.95				29.78				29.61				29.42
Common shares outstanding (average)
Basic			3,485				3,493				3,518				3,515				3,514				3,498				2,533
Diluted			3,548				3,548				3,570				3,602				3,592				3,555				2,599
Common shares at period-end			3,503				3,514				3,525				3,556				3,564
Selected ratios
Return on common equity (“ROE”)(b)			9	%			4	%			9	%			6	%			5	%			7	%			6	%
Return on assets (“ROA”)(b)(c)			0.84				0.34				0.79				0.57				0.50				0.66				0.42
Tier 1 capital ratio			8.2				8.2				8.6				8.7				8.6
Total capital ratio			11.3				11.3				11.9				12.2				12.0
Tier 1 leverage ratio			6.2				6.2				6.3				6.2				6.5
Selected balance sheet data (period-end)
Total assets		$	1,203,033			$	1,171,283			$	1,178,305			$	1,157,248			$	1,138,469
Securities			68,697				58,573				75,251				94,512				92,816
Total loans			420,504				416,025				402,669				402,114				393,701
Deposits			535,123				534,640				531,379				521,456				496,454
Long-term debt			101,853				101,182				99,329				95,422				91,754
Common stockholders’ equity			105,996				105,246				105,001				105,314				104,844
Total stockholders’ equity			106,135				105,385				105,340				105,653				105,853
Credit quality metrics
Allowance for credit losses		$	7,615			$	7,233			$	7,423			$	7,812			$	8,034			$	7,615			$	8,034
Nonperforming assets			2,839				2,832				2,949				3,231				3,637				2,839				3,637
Allowance for loan losses to total loans(d)			1.88	%			1.76	%			1.83	%			1.94	%			2.01	%			1.88	%			2.01	%
Net charge-offs		$	870			$	773			$	816			$	1,398			$	865			$	2,459			$	1,701
Net charge-off rate(b)(d)			0.90	%			0.83	%			0.88	%			1.47	%			0.93	%			0.87	%			0.89	%
Wholesale net charge-off (recovery) rate(b)(d)			(0.12	)			(0.17	)			(0.03	)			0.21				(0.08	)			(0.11	)			0.17
Managed Card net charge-off rate(b)			4.70				4.87				4.83				5.24				4.88				4.80				5.29
Headcount			168,955				168,708				164,381				160,968				162,275
Share price(e)
High		$	35.95			$	36.50			$	39.69			$	40.45			$	40.25			$	39.69			$	43.84
Low			33.31				33.35				34.32				36.32				35.50				33.31				34.62
Close			33.93				35.32				34.60				39.01				39.73				33.93				39.73

(a)		Third quarter 2005 includes a $400 million special provision related to Hurricane Katrina: Retail Financial Services $250 million, Card Services $100 million, Commercial Banking $35 million, Asset & Wealth Management $3 million and Corporate $12 million.
(b)		Based on annualized amounts.
(c)		Represents Net income divided by Total average assets.
(d)		Excluded from this ratio were loans held-for-sale.
(e)		JPMorgan Chase’s common stock is listed and traded on the New York Stock Exchange, the London Stock Exchange Limited and the Tokyo Stock Exchange. The high, low and closing prices of JPMorgan Chase’s common stock are from The New York Stock Exchange Composite Transaction Tape.
(f)		Includes three months of the combined Firm’s results and six months of heritage JPMorgan Chase results.

MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This section of this Form 10–Q provides management’s discussion and analysis (“MD&A”) of the financial condition and results of operations of JPMorgan Chase. See the Glossary of terms on pages 91–92 for a definition of terms used throughout this Form 10–Q. The MD&A included in this Form 10–Q contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’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’s results to differ materially from those described in the forward-looking statements can be found on page 95.

INTRODUCTION

JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”), a financial holding company incorporated under Delaware law in 1968, is a leading global financial services firm and one of the largest banking institutions in the United States, with $1.2 trillion in assets, $106 billion in stockholders’ equity and operations in more than 50 countries. The Firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset and wealth management and private equity. Under the JPMorgan, Chase and Bank One brands, the Firm serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients.

JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank”), a national banking association with branches in 17 states; and Chase Bank USA, National Association, a national bank headquartered in Delaware that is the Firm’s credit card issuing bank. JPMorgan Chase’s principal nonbank subsidiary is J.P. Morgan Securities Inc. (“JPMSI”), its U.S. investment banking firm.

The headquarters for JPMorgan Chase is in New York City. The retail banking business, which includes the consumer banking, small business banking and consumer lending activities (with the exception of credit card), is headquartered in Chicago. Chicago also serves as the headquarters for Commercial Banking.

JPMorgan Chase’s activities are organized, for management reporting purposes, into six business segments, as well as Corporate. The Firm’s wholesale businesses are comprised of the Investment Bank, Commercial Banking, Treasury & Securities Services, and Asset & Wealth Management. The Firm’s consumer businesses are comprised of Retail Financial Services and Card Services. A description of the Firm’s business segments, and the products and services they provide to their respective client bases, follows:

Investment Bank
JPMorgan Chase is one of the world’s leading investment banks, as evidenced by the breadth of its client relationships and product capabilities. The Investment Bank (“IB”) has extensive relationships with corporations, financial institutions, governments and institutional investors worldwide. The Firm provides a full range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital raising in equity and debt markets, sophisticated risk management, and market-making in cash securities and derivative instruments. The IB also commits the Firm’s own capital to proprietary investing and trading activities.

Retail Financial Services
Retail Financial Services (“RFS”) includes Home Finance, Consumer & Small Business Banking, Auto & Education Finance and Insurance. Through this group of businesses, the Firm provides consumers and small businesses with a broad range of financial products and services including deposits, investments, loans and insurance. Home Finance is a leading provider of consumer real estate loan products and is one of the largest originators and servicers of home mortgages. Consumer & Small Business Banking offers one of the largest branch networks in the United States, covering 17 states with 2,549 branches and 7,136 automated teller machines. Auto & Education Finance is the largest bank originator of automobile loans as well as a top provider of loans for college students. Through its Insurance operations, the Firm sells and underwrites an extensive range of financial protection products and investment alternatives, including life insurance, annuities and debt protection products.

Card Services
Card Services (“CS”) is the largest issuer of general purpose credit cards in the United States, with over 98 million cards in circulation, and is the largest merchant acquirer. CS offers a wide variety of products to satisfy the needs of its cardmembers, including cards issued on behalf of many well-known partners, such as major airlines, hotels, universities, retailers and other financial institutions.

Commercial Banking
Commercial Banking (“CB”) serves more than 25,000 clients including corporations, municipalities, financial institutions and not-for-profit entities, with annual revenues generally ranging from $10 million to $2 billion. A local market presence and a strong customer service model, coupled with a focus on risk management, provide a solid infrastructure for CB to provide the Firm’s complete product set – lending, treasury services, investment banking and investment management. CB clients benefit from the Firm’s retail branch network and commercial banking offices, including locations in 10 out of the top 15 major metropolitan areas in the U.S.

Treasury & Securities Services
Treasury & Securities Services (“TSS”) is a global leader in providing transaction, investment and information services to support the needs of corporations, issuers and institutional investors worldwide. TSS is the largest cash management provider in the world and a leading global custodian. The Treasury Services (“TS”) business provides clients with a broad range of capabilities, including U.S. dollar and multi-currency clearing, ACH, trade, and short-term liquidity and working capital tools. The Investor Services (“IS”) business provides a wide range of capabilities, including custody, funds services, securities lending, and performance measurement and execution products. The Institutional Trust Services (“ITS”) business provides trustee, depository and administrative services for debt and equity issuers. Treasury Services partners with the Commercial Banking, Consumer & Small Business Banking and Asset & Wealth Management businesses to serve clients firmwide. As a result, certain Treasury Services revenues are included in other segments’ results. TSS has combined the management of the Investor Services and Institutional Trust Services businesses under the name Worldwide Securities Services to create an integrated franchise which will provide custody and investor services as well as securities clearance and trust services to clients globally.

Asset & Wealth Management
Asset & Wealth Management (“AWM”) provides investment management to retail and institutional investors, financial intermediaries and high-net-worth families and individuals globally. For retail investors, AWM provides investment management products and services, including a global mutual fund franchise, retirement plan administration and brokerage services. AWM delivers investment management to institutional investors across all asset classes. The Private Bank and Private Client Services businesses provide integrated wealth management services to ultra-high-net-worth and high-net-worth clients, respectively.

OTHER BUSINESS EVENTS
Sears Canada credit card business
On August 31, 2005, JPMorgan Chase announced that it had entered into an agreement to purchase the credit card operation, including both the private-label Sears card accounts and the co-branded Sears MasterCard^® accounts, of Sears Canada Inc. The credit card operation includes approximately 10 million accounts and CAD$2.5 billion in outstanding loans. Sears Canada and JPMorgan Chase will enter into an ongoing arrangement under which JPMorgan Chase will offer private-label and co-branded credit cards to both new and existing customers. The transaction is expected to close by year-end 2005.

Neovest Holdings, Inc.
On September 1, 2005, JPMorgan Chase completed its acquisition of Neovest Holdings, Inc., a provider of high-performance trading technology and direct market access. This transaction will enable the Investment Bank to offer a leading, broker-neutral trading platform across asset classes to institutional investors, asset managers and hedge funds.

Sale of BrownCo
On September 29, 2005, JPMorgan Chase announced that it had signed a definitive agreement to sell BrownCo, an on-line deep-discount brokerage business, to E*TRADE Financial for a cash purchase price of $1.6 billion. JPMorgan Chase expects to recognize an after-tax gain of approximately $700 million. The sale is subject to normal regulatory approvals and is expected to close by year-end 2005.

Agreement with First Data Corp. to integrate Chase Merchant Services, Paymentech
On October 5, 2005, JPMorgan Chase and First Data Corp. announced that they have completed an agreement to integrate the companies’ jointly-owned Chase Merchant Services and Paymentech merchant businesses, to be operated under the name of Chase Paymentech Solutions, LLC. The combined business will be the largest financial transaction processor in the U.S. for businesses accepting payments via traditional point of sale, internet, catalog and recurring billing.

EXECUTIVE OVERVIEW

This overview of management’s discussion and analysis highlights selected information and may not contain all of the information that is important to readers of this Form 10–Q. For a more complete understanding of events, trends and uncertainties, as well as the liquidity, capital, credit and market risks, and the critical accounting estimates, affecting the Firm and its various lines of business, this Form 10–Q should be read in its entirety.

CEO transition
The Board of Directors of JPMorgan Chase announced on October 19, 2005, that James Dimon, currently President and Chief Operating Officer, will succeed Chairman and Chief Executive Officer William B. Harrison, Jr. at year-end as Chief Executive Officer. Mr. Harrison will continue as Chairman of the Board.

Business overview
The Firm reported 2005 third-quarter net income of $2.5 billion, or $0.71 per share, compared with net income of $1.4 billion, or $0.39 per share, for the third quarter of 2004. Return on common equity for the quarter was 9%. Results included $137 million of after-tax Merger charges, or $0.04 per share. Excluding these charges, operating earnings were $2.7 billion, or $0.75 per share, and return on common equity was 10%.

Earnings for the third quarter of 2005 also included a special provision for credit losses of $400 million, or $0.07 per share, to cover probable credit losses due to Hurricane Katrina. This provision is related to expected credit losses for businesses and individuals located in the affected areas of the Gulf Coast region. The $400 million was allocated to the lines of business as follows: $250 million in RFS ($140 million in Consumer Real Estate Lending, $90 million in Consumer & Small Business Banking and $20 million in Auto & Education Finance), $100 million in CS, $35 million in CB, $3 million in AWM and $12 million in Corporate.

Net income for the first nine months of 2005 was $5.8 billion, or $1.62 per share, compared with $2.8 billion, or $1.06 per share, in the comparable period last year. The increase was primarily attributable to the Merger. Return on common equity was 7%. The results included after-tax nonoperating litigation reserve charges of $1.7 billion and Merger costs of $400 million. Nonoperating litigation charges consisted of a $1.2 billion after-tax charge taken in the second quarter of 2005 in connection with the Firm’s settlement of the Enron class action lawsuit and for certain of its other material legal proceedings, and a $558 million after-tax charge taken in the first quarter of 2005 for the settlement costs of the WorldCom class action litigation. Excluding these litigation charges and Merger costs, operating earnings were $7.9 billion, or $2.22 per share, and return on common equity was 10%.

The Firm successfully completed two large conversions in the third quarter. The Firm converted 31 million heritage Chase credit card accounts with $69 billion in balances to a new processing system and completed its major systems conversion in Texas, uniting 400 Chase and Bank One branches, and over 800 ATMs under common systems and branding. These conversions continued a successful year of technology and operations upgrades following the Merger.

Global economic and market conditions affect performance in each of the Firm’s businesses. In the third quarter of 2005, both the global and U.S. economies continued to grow steadily, and the market environment was favorable. However, Hurricanes Katrina and Rita contributed to a surge in energy prices, and consumer confidence declined sharply late in the quarter. The volatility in energy markets provided opportunities for the trading businesses within the Investment Bank and contributed to the quarter’s record trading results. While there was no immediate material adverse impact on the Firm’s consumer businesses’ revenue as a result of these events, the Firm did provide for higher probable credit losses associated with Hurricane Katrina. In addition, record bankruptcy filings leading up to new bankruptcy legislation that went into effect on October 17 raised credit costs within Card Services.

The following discussion of the performance in each line of business compares the third quarter of 2005 with the comparable period in the prior year, unless otherwise noted.

Strong Investment Bank earnings were driven by record revenues, resulting from record trading revenues and continued strength in investment banking fees. Trading results were strong across all areas, with particular strength in energy, an area of significant investment. Partially offsetting the improved revenues were higher performance-based incentive compensation and a reduced benefit from the loan loss provision.

Retail Financial Services earnings declined from the prior year and included a special provision for credit losses related to Hurricane Katrina. Performance reflected lower MSR risk management results, a net loss associated with the transfer of auto loans to held-for-sale, and narrower spreads on consumer real estate loans. Earnings benefited from favorable credit trends and lower expenses due to merger-related expense savings and other efficiencies. Production results were strong across most product offerings and included year-over-year increases in checking accounts, average total deposits, mortgage originations, third-party mortgage loans serviced and average home equity balances.

Card Services earnings growth resulted from higher revenues and lower expenses. The increased revenues reflected higher loan balances and increased interchange income from higher charge volume, partially offset by an increase in loan balances in their introductory rate period, higher volume-driven payments to partners and by rewards expense. Lower expenses were driven by merger savings, including lower compensation and processing costs. Partially offsetting these benefits was a higher provision for credit losses related to increased bankruptcies and to the special provision for credit losses related to Hurricane Katrina.

Commercial Banking produced strong earnings growth, driven by a lower provision for credit losses, increased revenue and a decline in expenses. Results included a special provision for credit losses attributable to Hurricane Katrina. Improved underlying credit quality and management of the portfolio drove the decline in the provision for credit losses. Higher spreads and volume related to liability balances, increased loan balances and growth in investment banking revenue, partially offset by lower loan spreads, resulted in higher revenues. Expenses declined due to lower compensation costs, partially offset by increased unit costs for Treasury Services products.

Treasury & Securities Services earnings increased significantly, benefiting from higher revenues and lower expenses. Revenue growth reflected wider spreads on liability balances, business growth and increased average liability balances, while the reduction in expenses was primarily due to a significant software-impairment charge in the prior year, lower allocations of Corporate segment expenses and increased product unit costs charged to other lines of business.

Record earnings in Asset & Wealth Management resulted from increased revenues, partially offset by higher compensation expense. Revenue growth was driven by the acquisition of a majority interest in Highbridge Capital Management, LLC in the fourth quarter of 2004 and net asset inflows, mainly in equity-related and liquidity products. Also contributing to the increase in revenue were global equity market appreciation and increased brokerage activity. Assets under supervision increased over the prior year, and Assets under management grew to a record level.

The loss in the Corporate segment increased from the prior year as lower revenues more than offset lower expenses. The decline in revenues was driven primarily by the absence of a one-time gain on the sale of an investment and by treasury portfolio losses versus gains in the prior year. This was partially offset by higher private equity gains. Lower compensation, merger-related savings and other efficiencies drove the expense decline.

For the quarter ended September 30, 2005, approximately $500 million (pre-tax) of merger savings have been realized, which is an annualized rate of $2.0 billion. Management continues to estimate that annual merger savings of approximately $3.0 billion (pre-tax) will be achieved by the end of 2007; approximately two-thirds of the savings are anticipated to be realized by the end of 2005. Merger costs of $221 million (pre-tax) were expensed during the third quarter of 2005, bringing the total amount expensed year-to-date to $645 million and $2.0 billion (pre-tax) cumulative since the Merger announcement. Management continues to estimate remaining Merger costs of $1.0 billion to $1.5 billion (pre-tax), which are expected to be expensed over the next two years. These estimated merger-related charges will result from actions taken with respect to both JPMorgan Chase’s and Bank One’s operations, facilities and employees. The charges will be recorded based upon the nature and timing of these integration actions.

The Firm’s balance sheet remained strong, with total stockholders’ equity of $106 billion and a Tier 1 capital ratio of 8.2% at September 30, 2005. The Firm repurchased $500 million, or 14.4 million shares, of common stock during the quarter and $2.4 billion, or 67.2 million shares, of common stock during the first nine months of the year.

Business outlook
Within the Investment Bank, the outlook for Investment banking fees remains favorable, reflecting a strong pipeline at September 30, 2005. Trading results reflect market conditions and are difficult to predict. However, given that trading results in the third quarter were at record levels, trading revenue in the fourth quarter is likely to be lower than the third quarter. In addition, the Firm anticipates that wholesale credit costs will return to more normal levels in 2006.

In Retail Financial Services, a flatter yield curve and rising short term interest rates may contribute to modest compression of net interest margin for Consumer & Small Business Banking. Credit costs for RFS have been at historically low levels; the business anticipates a return to more normal levels in coming quarters, in part due to a seasonal uptick in the fourth quarter. Investment in retail banking distribution and sales is expected to continue.

Card Services also expects modest net interest margin compression to continue, due, not only to the flattening yield curve and rising interest rates, but also to the increased number of balances in their introductory period.

The industry experienced an accelerated level of bankruptcy filings related to the new bankruptcy legislation, which generally became effective on October 17, 2005. The unprecedented number of bankruptcy filings, particularly in the week immediately preceding the effective date of the new legislation, led to a backlog in the processing of such bankruptcy filings and, accordingly, credit card net charge-offs are currently expected to be higher than previously anticipated. It is currently estimated that total managed credit card net charge-offs in the fourth quarter of 2005 will be approximately $2.3 billion, up from $1.6 billion in the prior quarter. The Firm believes that a portion of the expected increase in bankruptcy losses is an acceleration of net charge-offs that would have been experienced in future periods. The Firm will evaluate the impact of the surge in bankruptcy filings on its allowance for credit losses and currently believes that there could be a reduction in the allowance in the fourth quarter, given that the allowance provides for expected losses, which may be lower as a result of the large number of accelerated filings (assuming all other factors affecting the allowance are equal).

Finally, new minimum-payment rules are anticipated to be fully implemented by the end of the first quarter of 2006, resulting in higher required payments from some customers. It is anticipated that this may increase delinquency and net charge-offs and lower revenues in 2006. The magnitude of the impact of the new minimum-payment rules is currently being assessed.

Private Equity gains are generally not stable quarter to quarter and are therefore difficult to predict. Given the large gains realized year-to-date, management currently estimates that gains for the fourth quarter will be in the range of $100 million to $200 million, although results can be volatile.

CONSOLIDATED RESULTS OF OPERATIONS
The following section provides a discussion of JPMorgan Chase’s consolidated results of operations on a reported basis. Factors that are primarily related to a single business segment are discussed in more detail within that business segment. For a discussion of the Critical accounting estimates used by the Firm that affect the Consolidated results of operations, see page 63 of this Form 10–Q, and pages 77–79 of the JPMorgan Chase 2004 Annual Report.

The following table presents the components of Total net revenue:

Total net revenue		Three months ended September 30,												Nine months ended September 30,
(in millions)		2005				2004				Change				2005				2004(a)			Change
Investment banking fees		$	989			$	879				13	%		$	2,943			$	2,464				19	%
Trading revenue			2,499				408				NM				4,745				3,001				58
Lending & deposit related fees			865				943				(8	)			2,536				1,769				43
Asset management, administration and commissions			2,628				2,185				20				7,667				5,835				31
Securities/private equity gains (losses)			343				413				(17	)			705				1,305				(46	)
Mortgage fees and related income			201				233				(14	)			899				721				25
Credit card income			1,855				1,782				4				5,352				3,018				77
Other income			233				210				11				930				602				54
Noninterest revenue			9,613				7,053				36				25,777				18,715				38
Net interest income			4,852				5,452				(11	)			15,078				11,432				32
Total net revenue		$	14,465			$	12,505				16	%		$	40,855			$	30,147				36	%

(a)		Includes three months of the combined Firm’s results and six months of heritage JPMorgan Chase results.

Net revenue for the third quarter of 2005 was up $2.0 billion, or 16%, from the prior year. The increase was primarily due to record Trading revenue of $2.5 billion and higher Asset management, administration and commissions revenue. For the first nine months of the year, net revenue was up 36%, primarily as a result of the Merger.

Investment banking fees rose from the third quarter and first nine months of 2004. The improvement from both periods reflected strong advisory fees, with particular strength in Europe, which benefited from the joint venture with Cazenove Group plc (“Cazenove”). In addition, the third quarter 2005 results were driven by higher equity underwriting fees, while the year-to-date results included increased debt underwriting fees. Trading revenue for both periods benefited from strong results across all areas. For a further discussion of Investment banking fees and Trading revenue, which are primarily recorded in the IB, see the IB segment results on pages 16–20 of this Form 10–Q.

Lending & deposit related fees declined in comparison with the 2004 third quarter, primarily driven by lower service charges on wholesale deposits due to rising interest rates. In this environment, customers earn more credit from their deposit balances, and thus compensate the Firm using balances instead of fees. For the first nine months of 2005, the unfavorable effect of the rising rate environment was more than offset by the positive contributions from the Merger. For a further discussion on liability balances (including deposits), see page 43 of this Form 10–Q.

The increases in Asset management, administration and commissions revenue for the third quarter and first nine months of 2005 were driven by incremental fees from several recent investments, including a majority interest in Highbridge Capital Management, LLC, the joint venture with Cazenove and the acquisition of Vastera. Also contributing to the higher level of revenue were an increase in assets under management, reflecting net asset inflows and global equity market appreciation, an increase in assets under custody, reflecting market value appreciation and new business, and higher brokerage commissions. For additional information on these fees and commissions, see the segment discussions for IB on pages 16–20, AWM on pages 36–39 and TSS on pages 33–35 of this Form 10–Q.

The decline in Securities/private equity gains (losses) reflected securities losses recognized in the third quarter and first nine months of 2005 related to repositioning the Treasury portfolio to manage the Firm’s exposure to rising interest rates. In particular, during the first quarter of 2005, the Firm recognized a loss of $822 million on the sale of securities available-for-sale. The securities losses were partly offset by higher private equity gains due to improved market conditions. For a further discussion of Securities/private equity gains (losses), which are primarily recorded in the Firm’s Treasury and Private Equity businesses, see the Corporate segment discussion on pages 39–41 of this Form 10–Q.

Mortgage fees and related income declined in comparison with the third quarter of 2004, primarily due to MSR risk management results, which were a $38 million loss compared with a $153 million gain in the 2004 third quarter. Higher production-related revenue attributable to higher margins and volume provided a favorable offset. For the first nine months, Mortgage fees and related income rose from the prior-year period, reflecting higher production-related revenue. Mortgage fees and related income excludes the impact of NII and AFS securities gains related to home mortgage activities. For a discussion of Mortgage fees and related income, which is primarily recorded in RFS’s Home Finance business, see the Home Finance discussion on pages 22–24 of this Form 10–Q.

Credit card income increased from both the third quarter and first nine months of 2004 as a result of higher interchange income associated with growth in charge volume. This increase was partially offset by higher volume-driven payments to partners and by rewards expense. For a further discussion of Credit card income, see CS’s segment results on pages 28–30 of this Form 10–Q.

Other income was up slightly compared with the third quarter of 2004, reflecting higher gains on securities from loan workouts and revenues from auto operating leases, partly offset by the absence of a one-time gain in the prior year on the sale of an investment and by a current period write-down on auto loans transferred to held-for-sale. On a year-to-date basis, Other income increased significantly due to the Merger, partially offset by write-downs on auto loans transferred to held-for-sale in 2005.

Net interest income declined from the 2004 third quarter, primarily due to narrower spreads on consumer and wholesale loans and reduced Treasury portfolio levels. These declines were partially offset by higher volume of, and wider spreads on, liability balances. On a year-to-date basis, net interest income increased due to the Merger. The Firm’s total average interest-earning assets for the three months ended September 30, 2005, were $922 billion, up 6% from September 30, 2004, as a result of an increase in loans and other liquid interest-earning assets. The net interest yield on these assets, on a fully taxable-equivalent basis, was 2.12%, a decrease of 36 basis points from the prior year. The Firm’s total average interest-earning assets for the nine months ended September 30, 2005, were $911 billion, up 31% from September 30, 2004, primarily as a result of the Merger. The net interest yield on these assets, on a fully taxable-equivalent basis, was 2.24%, an increase of 4 basis points from the prior-year period.

Provision for credit losses
The Provision for credit losses rose from the third quarter of 2004, primarily due to a $400 million special provision for credit losses related to Hurricane Katrina, partially offset by a $333 million charge taken in the third quarter of 2004 to conform accounting policies. The special provision was related to expected credit losses for businesses and individuals who are located in the affected areas of the Gulf Coast region and was established based upon management’s current estimate of probable loss. In developing the estimate of probable credit losses, management considered factors such as the areas most severely affected, level and type of insurance coverage, collateral and lien position, direct communication with customers, financial condition of the borrower, environmental impact and other factors. The provision may need to be increased in the future as the quality of data and access to the affected areas improve. Excluding the impact of the special provision in the current quarter and the impact of conforming accounting policies in the third quarter of last year, the wholesale provision for credit losses would have been a benefit of $149 million for the quarter, compared with a benefit of $137 million in the prior year, reflecting continued strength in credit quality. Total consumer provision for credit losses, excluding the Hurricane Katrina impact, would have been $1.0 billion, up slightly from the third quarter of 2004, which excludes the impact of conforming accounting policies in the third quarter of last year. Lower net charge-offs and positive delinquency trends in Retail Financial Services were offset by a higher provision in Card Services, primarily related to accelerated bankruptcy filings prior to the enactment of new legislation that became effective on October 17, 2005.

For the first nine months of 2005, the higher Provision for credit losses was due primarily to the Merger. The impact of Hurricane Katrina and accelerated bankruptcy filings also contributed to the increase. For further information about the Provision for credit losses, see the table on page 59 of this Form 10–Q.

Noninterest expense
The following table presents the components of Noninterest expense:

		Three months ended September 30,												Nine months ended September 30,
(in millions)		2005				2004				Change				2005				2004(a)				Change
Compensation expense		$	5,001			$	4,050				23	%		$	13,969			$	10,295				36	%
Occupancy expense			549				604				(9	)			1,654				1,475				12
Technology and communications expense			899				1,046				(14	)			2,715				2,651				2
Professional & outside services			1,018				1,103				(8	)			3,222				2,671				21
Marketing			512				506				1				1,532				907				69
Other expense			882				920				(4	)			2,641				1,878				41
Amortization of intangibles			382				396				(4	)			1,150				554				108
Total noninterest expense before merger costs and litigation reserve charge			9,243				8,625				7				26,883				20,431				32
Merger costs			221				752				(71	)			645				842				(23	)
Litigation reserve charge			—				—				NM				2,772				3,700				(25	)
Total noninterest expense		$	9,464			$	9,377				1	%		$	30,300			$	24,973				21	%

(a)		Includes three months of the combined Firm’s results and six months of heritage JPMorgan Chase results.

Noninterest expense for the third quarter of 2005 was essentially flat to the 2004 third quarter, as higher performance-based incentive compensation was offset by significantly lower Merger costs and other declines in noncompensation expense, reflecting merger-related savings, other efficiencies and lower software-impairment charges. For the first nine months of 2005, the increase in noninterest expense due to the Merger was partly offset by lower nonoperating Litigation reserve charges and Merger costs and

lower noninterest expense-resulting from expense-management initiatives. The discussion that follows highlights factors other than the Merger that affected the comparison of results.

The increases in Compensation expense from the third quarter and first nine months of 2004 were primarily the result of higher performance-based incentive accruals; additional headcount due to the insourcing of the Firm’s global technology infrastructure (effective December 31, 2004, JPMorgan Chase terminated its outsourcing agreement with IBM); the impact of several investments, including Highbridge, Cazenove and Vastera; and business growth. These increases were partially offset by merger-related savings throughout the Firm.

Occupancy expense included a net release of excess property-tax accruals, compared with charges for excess real estate of $35 million in the third quarter of 2004.

Technology and communications expense declined from the third quarter of last year, reflecting the insourcing of the Firm’s global technology infrastructure, which resulted in a shift of certain expenses to compensation expense and to professional and outside services expense. On a year-to-date basis, the expense increased slightly, with the decrease from the insourcing offset by the costs of investments in the Firm’s hardware and software.

Professional & outside services were slightly lower compared with the third quarter of 2004, reflecting the benefits of expense management initiatives. These savings were partly offset by the termination of the aforementioned IBM outsourcing agreement. For the first nine months, the addition of the costs from the Merger was partly offset by expense-management initiatives.

Marketing expense, compared with the 2004 third quarter, was flat. On a year-to-date basis marketing expense increased as a result of the Merger and the cost of advertising campaigns to introduce the Chase brand to Bank One markets.

The decline in Other expense from the third quarter of 2004 was due to lower software-impairment charges and a decrease in operating charges for legal matters. These declines were partly offset by incremental expenses related to several recent investments, including Highbridge, Cazenove and Vastera. For the first nine months, the addition from the Merger was the primary driver of the increase in Other expense. In addition, business growth, a $93 million (pre-tax) charge taken in the 2005 second quarter to terminate a client contract in Treasury & Securities Services and a $40 million (pre-tax) charge taken in the first quarter of 2005 related to the dissolution of a student loan joint venture, contributed to the increase. These items were partially offset by merger-related savings and other efficiencies.

For a discussion of Amortization of intangibles and Merger costs, refer to Note 14 and Note 7 on pages 81–82 and 73, respectively, of this Form 10–Q.

There were no nonoperating Litigation charges in the third quarters of 2005 and 2004. In the second quarter of 2005, the Firm recorded a $1.9 billion ($1.2 billion after-tax) nonoperating charge related to the settlement of the Enron class action litigation and for certain of its other material legal proceedings. In the first quarter of 2005, the Firm took a $900 million charge ($558 million after-tax) for the settlement costs of the WorldCom class action litigation. In the second quarter of 2004, the Firm recorded a $3.7 billion ($2.3 billion after-tax) nonoperating litigation charge to increase litigation reserves. For a further discussion of litigation, refer to Note 17 on page 84, and Part II, Item 1, Legal Proceedings, on pages 96–97 of this Form 10–Q.

Income tax expense
The Firm’s Income before income tax expense, Income tax expense and effective tax rate were as follows for each of the periods indicated:

		Three months ended								Nine months ended
		September 30,								September 30,
(in millions, except rate)		2005				2004				2005				2004(a)
Income before income tax expense		$	3,756			$	1,959			$	8,296			$	3,787
Income tax expense			1,229				541				2,511				987
Effective tax rate			32.7	%			27.6	%			30.3	%			26.1	%

(a)		Includes three months of the combined Firm’s results and six months of heritage JPMorgan Chase results.

The increase in the effective tax rate for the third quarter and first nine months of 2005, as compared with prior-year periods, was primarily the result of higher reported pre-tax income combined with changes in the proportion of income subject to federal, state and local taxes. Also contributing to the increase in the effective tax rate were lower 2005 nonoperating charges, reflecting a tax benefit at a 38% marginal tax rate.

The Firm prepares its Consolidated financial statements using accounting principles generally accepted in the United States of America (“U.S. GAAP”); these financial statements appear on pages 65–68 of this Form 10–Q. That presentation, which is referred to as “reported basis,” provides the reader with an understanding of the Firm’s results that can be consistently tracked 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 and the lines of business’ results on an “operating basis,” which is a non-GAAP financial measure. The definition of operating basis starts with the reported U.S. GAAP results. In the case of the IB, noninterest revenue on an operating basis includes, in Trading revenue, Net interest income related to trading activities. Trading activities generate revenues, which are recorded for U.S. GAAP purposes in two line items on the income statement: Trading revenue, which includes the mark-to-market gains or losses on trading positions; and Net interest income, which includes the interest income or expense related to those positions. Combining both the Trading revenue and related Net interest income enables management to evaluate IB’s trading activities, by considering all revenue related to these activities, and facilitates operating comparisons to other competitors.

In the case of CS, operating, or managed, basis excludes the impact of credit card securitizations on total net revenue, the Provision for credit losses, net charge-offs and loan receivables. Through securitization the Firm transforms a portion of its credit card receivables into securities, which are sold to investors. The credit card receivables are removed from the Consolidated balance sheets through the transfer of principal credit card receivables to a trust, and the sale of undivided interests in the trusts to investors that entitle the investors to specific cash flows generated from the credit card receivables. The Firm retains the remaining undivided interests in the trust as seller’s interests, which are recorded in Loans on the Consolidated balance sheets. A gain or loss on the sale of credit card receivables to investors is recorded in Other income. Securitization also affects the Firm’s Consolidated statements of income by reclassifying as Credit card income, interest income, certain fee revenue, recoveries in excess of interest paid to the investors, gross credit losses and other trust expenses related to the securitized receivables. For a reconciliation of reported to managed basis of CS results, see page 30 of this Form 10–Q. For information regarding loans and residual interests sold and securitized, see Note 12 on pages 76–79 of this Form 10–Q. JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance and overall financial performance of its underlying credit card loans, both sold and not sold: as the same borrower is continuing to use the credit card for ongoing charges, a borrower’s credit performance will affect both the loan receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed loan receivables, JPMorgan Chase treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire managed credit card portfolio. In addition, CS operations are funded, operating results are evaluated, and decisions about allocating resources such as employees and capital are based on managed financial information.

Operating basis also excludes Merger costs, litigation reserve charges deemed nonoperating and accounting policy conformity adjustments, as management believes these items are not part of the Firm’s normal daily business operations (and, therefore, are not indicative of trends) and do not provide meaningful comparisons with other periods. For additional detail on nonoperating litigation charges, see the Glossary of Terms on page 92 of this Form 10–Q.

Finally, commencing with the first quarter of 2005, Operating revenue (Noninterest Revenue and Net interest income) for each of the segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits are presented in the operating results on a basis comparable to taxable securities and investments. This allows management to assess the comparability of revenues arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within Income tax expense. The Corporate sector’s and the Firm’s operating revenue and income tax expense for the periods prior to the first quarter of 2005 have been restated to be similarly presented on a tax-equivalent basis. Previously, only the segments’ operating results were presented on a tax-equivalent basis, and the impact of the segments’ tax-equivalent adjustments was eliminated in the Corporate sector. This restatement had no impact on the Corporate sector’s or the Firm’s operating earnings.

Management also uses certain non-GAAP financial measures at the segment level. Management believes these non-GAAP financial measures provide information to investors in understanding the underlying operational performance and trends of the particular business segment and facilitate a comparison of the business segment with the performance of competitors.

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

Three months ended September 30,		2005
		Reported				Trading				Credit				Merger				Litigation				Tax-equivalent				Operating
(in millions, except per share and ratio data)		results				reclass(d)				card(e)				costs(f)				charge(f)				adjustments				basis
Revenue
Investment banking fees		$	989			$	—			$	—			$	—			$	—			$	—			$	989
Trading revenue			2,499				(103	)			—				—				—				—				2,396
Lending & deposit related fees			865				—				—				—				—				—				865
Asset management, administration and commissions			2,628				—				—				—				—				—				2,628
Securities/private equity gains (losses)			343				—				—				—				—				—				343
Mortgage fees and related income			201				—				—				—				—				—				201
Credit card income			1,855				—				(733	)			—				—				—				1,122
Other income			233				—				—				—				—				155				388
Noninterest revenue			9,613				(103	)			(733	)			—				—				155				8,932
Net interest income			4,852				103				1,600				—				—				67				6,622
Total net revenue			14,465				—				867				—				—				222				15,554
Provision for credit losses(a)			1,245				—				867				—				—				—				2,112
Noninterest expense Merger costs			221				—				—				(221	)			—				—				—
Litigation reserve charge			—				—				—				—				—				—				—
All other noninterest expense			9,243				—				—				—				—				—				9,243
Total noninterest expense			9,464				—				—				(221	)			—				—				9,243
Income before income tax expense			3,756				—				—				221				—				222				4,199
Income tax expense			1,229				—				—				84				—				222				1,535
Net income		$	2,527			$	—			$	—			$	137			$	—			$	—			$	2,664
Earnings per share — diluted		$	0.71			$	—			$	—			$	0.04			$	—			$	—			$	0.75
Return on common equity			9	%			—	%			—	%			1	%			—	%			—	%			10	%
Return on equity — goodwill(b)			16				—				—				1				—				—				17
Return on assets			0.84				NM				NM				NM				NM				NM				0.84
Overhead ratio			65				NM				NM				NM				NM				NM				59
Effective income tax rate			33				NM				NM				38				NM				100				37

Three months ended September 30,		2004
																						Accounting
		Reported				Trading				Credit				Merger				Litigation				policy				Tax-equivalent				Operating
(in millions, except per share and ratio data)		results				reclass(d)				card(e)				costs(f)				charge(f)				conformity				adjustments				basis
Revenue
Investment banking fees		$	879			$	—			$	—			$	—			$	—			$	—			$	—			$	879
Trading revenue			408				424				—				—				—				—				—				832
Lending & deposit related fees			943				—				—				—				—				—				—				943
Asset management, administration and commissions			2,185				—				—				—				—				—				—				2,185
Securities/private equity gains (losses)			413				—				—				—				—				—				—				413
Mortgage fees and related income			233				—				—				—				—				—				—				233
Credit card income			1,782				—				(848	)			—				—				—				—				934
Other income			210				—				(3	)			—				—				118				64				389
Noninterest revenue			7,053				424				(851	)			—				—				118				64				6,808
Net interest income			5,452				(424	)			1,779				—				—				—				(36	)			6,771
Total net revenue			12,505				—				928				—				—				118				28				13,579
Provision for credit losses			1,169				—				928				—				—				(333	)			—				1,764
Noninterest expense
Merger costs			752				—				—				(752	)			—				—				—				—
Litigation reserve charge			—				—				—				—				—				—				—				—
All other noninterest expense			8,625				—				—				—				—				—				—				8,625
Total noninterest expense			9,377				—				—				(752	)			—				—				—				8,625
Income before income tax expense			1,959				—				—				752				—				451				28				3,190
Income tax expense			541				—				—				290				—				172				28				1,031
Net income		$	1,418			$	—			$	—			$	462			$	—			$	279			$	—			$	2,159

Earnings per share — diluted		$	0.39			$	—			$	—			$	0.13			$	—			$	0.08			$	—			$	0.60
Return on common equity			5	%			—				—				2	%			—				1	%			—				8	%
Return on equity — goodwill(b)			9				—				—				3				—				2				—				14
Return on assets			0.50				NM				NM				NM				NM				NM				NM				0.72
Overhead ratio			75				NM				NM				NM				NM				NM				NM				64
Effective income tax rate			28				NM				NM				39				NM				38				100	%			32

Nine months ended September 30,		2005
		Reported				Trading				Credit				Merger				Litigation				Tax-equivalent				Operating
(in millions, except per share and ratio data)		results				reclass(d)				card(e)				costs(f)				charge(f)				adjustments				basis
Revenue
Investment banking fees		$	2,943			$	—			$	—			$	—			$	—			$	—			$	2,943
Trading revenue			4,745				423				—				—				—				—				5,168
Lending & deposit related fees			2,536				—				—				—				—				—				2,536
Asset management, administration and commissions			7,667				—				—				—				—				—				7,667
Securities/private equity gains (losses)			705				—				—				—				—				—				705
Mortgage fees and related income			899				—				—				—				—				—				899
Credit card income			5,352				—				(2,276	)			—				—				—				3,076
Other income			930				—				—				—				—				413				1,343
Noninterest revenue			25,777				423				(2,276	)			—				—				413				24,337
Net interest income			15,078				(423	)			4,990				—				—				212				19,857
Total net revenue			40,855				—				2,714				—				—				625				44,194
Provision for credit losses(a)			2,259				—				2,714				—				—				—				4,973
Noninterest expense Merger costs			645				—				—				(645	)			—				—				—
Litigation reserve charge			2,772				—				—				—				(2,772	)			—				—
All other noninterest expense			26,883				—				—				—				—				—				26,883
Total noninterest expense			30,300				—				—				(645	)			(2,772	)			—				26,883
Income before income tax expense			8,296				—				—				645				2,772				625				12,338
Income tax expense			2,511				—				—				245				1,053				625				4,434
Net income		$	5,785			$	—			$	—			$	400			$	1,719			$	—			$	7,904
Earnings per share — diluted		$	1.62			$	—			$	—			$	0.12			$	0.48			$	—			$	2.22
Return on common equity			7	%			—	%			—	%			1	%			2	%			—	%			10	%
Return on equity — goodwill(b)			12				—				—				1				4				—				17
Return on assets			0.66				NM				NM				NM				NM				NM				0.85
Overhead ratio			74				NM				NM				NM				NM				NM				61
Effective income tax rate			30				NM				NM				38				38				100				36

Nine months ended September 30,(c)		2004
																						Accounting
(in millions, except per share and		Reported				Trading				Credit				Merger				Litigation				policy				Tax-equivalent				Operating
ratio data)		results				reclass(d)				card(e)				costs(f)				charge(f)				conformity				adjustments				basis
Revenue
Investment banking fees		$	2,464			$	—			$	—			$	—			$	—			$	—			$	—			$	2,464
Trading revenue			3,001				1,439				—				—				—				—				—				4,440
Lending & deposit related fees			1,769				—				—				—				—				—				—				1,769
Asset management, administration and commissions			5,835				—				—				—				—				—				—				5,835
Securities/private equity gains (losses)			1,305				—				—				—				—				—				—				1,305
Mortgage fees and related income			721				—				—				—				—				—				—				721
Credit card income			3,018				—				(1,481	)			—				—				—				—				1,537
Other income			602				—				(87	)			—				—				118				139				772
Noninterest revenue			18,715				1,439				(1,568	)			—				—				118				139				18,843
Net interest income			11,432				(1,439	)			3,455				—				—				—				(4	)			13,444
Total net revenue			30,147				—				1,887				—				—				118				135				32,287
Provision for credit losses			1,387				—				1,887				—				—				(333	)			—				2,941
Noninterest expense
Merger costs			842				—				—				(842	)			—				—				—				—
Litigation reserve charge			3,700				—				—				—				(3,700	)			—				—				—
All other noninterest expense			20,431				—				—				—				—				—				—				20,431
Total noninterest expense			24,973				—				—				(842	)			(3,700	)			—				—				20,431
Income before income tax expense			3,787				—				—				842				3,700				451				135				8,915
Income tax expense			987				—				—				320				1,406				172				135				3,020
Net income		$	2,800			$	—			$	—			$	522			$	2,294			$	279			$	—			$	5,895
Earnings per share — diluted		$	1.06			$	—			$	—			$	0.20			$	0.88			$	0.11			$	—			$	2.25
Return on common equity			6	%			—	%			—	%			1	%			5	%			—	%			—	%			12	%
Return on equity — goodwill(b)			8				—				—				2				6				1				—				17
Return on assets			0.42				NM				NM				NM				NM				NM				NM				0.83
Overhead ratio			83				NM				NM				NM				NM				NM				NM				63
Effective income tax rate			26				NM				NM				38				38				38				100				34