Table of Contents

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:		Commission file number
April 16, 2003		1-5805

J.P. MORGAN CHASE & CO.

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

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

 

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	Item 7. Financial Statements and Exhibits
	Item 9. Regulation FD Disclosure
SIGNATURE
EXHIBIT INDEX
PRESS RELEASE
ANALYST PRESENTATION SLIDES

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Item 7. Financial Statements and Exhibits

(c)

Exhibits

Exhibit No.		Description of Exhibit
99.1		Press Release Financial Supplement – First Quarter 2003
99.2		Analyst Presentation Slides – First Quarter 2003 Financial Results

 

Item 9. Regulation FD Disclosure

On April 16, 2003, J.P. Morgan Chase & Co. (“JPMorgan Chase” or the “Firm”) held an investor presentation to review 2003 first quarter earnings.

Exhibit 99.1 is a copy of supplemental financial schedules furnished at, and posted on the Firm’s website in connection with, the presentation. Exhibit 99.2 is a copy of slides furnished at, and posted on the Firm’s website in connection with, the presentation. The financial schedules and slides are being furnished pursuant to Item 9, and the information contained in Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities under that Section. Furthermore, the information in Exhibits 99.1 and 99.2 shall not be deemed to be incorporated by reference into the filings of the Firm under the Securities Act of 1933.

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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.

		J.P. MORGAN CHASE & CO. (Registrant)
		By:		/s/ Joseph L. Sclafani
				Joseph L. Sclafani
		Executive Vice President and Controller [Principal Accounting Officer]

Dated: April 18, 2003

3

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EXHIBIT INDEX

Exhibit No.		Description of Exhibit
99.1		Press Release Financial Supplement – First Quarter 2003
99.2		Analyst Presentation Slides – First Quarter 2003 Financial Results

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Exhibit 99.1

PRESS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2003

 

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JPMorgan Chase Consolidated
	STATEMENT OF INCOME — REPORTED BASIS
	LINES OF BUSINESS FINANCIAL HIGHLIGHTS SUMMARY
	STATEMENT OF INCOME — OPERATING BASIS
	RECONCILIATION FROM REPORTED TO OPERATING BASIS
SEGMENT DETAIL
	INVESTMENT BANK
		BUSINESS-RELATED METRICS
	TREASURY & SECURITIES SERVICES
	INVESTMENT MANAGEMENT & PRIVATE BANKING
	JPMORGAN PARTNERS
		INVESTMENT PORTFOLIO — PRIVATE AND PUBLIC SECURITIES
	CHASE FINANCIAL SERVICES
		BUSINESS-RELATED METRICS
SUPPLEMENTAL DETAIL
	NONINTEREST REVENUE AND NONINTEREST EXPENSE DETAIL
	CONSOLIDATED BALANCE SHEET
	CONDENSED AVERAGE BALANCE SHEET AND ANNUALIZED YIELDS
	CREDIT-RELATED INFORMATION
	CAPITAL
Glossary of Terms
PRESS RELEASE
ANALYST PRESENTATION SLIDES

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J.P. MORGAN CHASE & CO. TABLE OF CONTENTS

		Page
JPMorgan Chase Consolidated
Statement of Income — Reported Basis			3
Lines of Business Financial Highlights Summary			4
Statement of Income — Operating Basis			5
Reconciliation from Reported to Operating Basis			6
Segment Detail
Investment Bank			7
Business-Related Metrics			8
Treasury & Securities Services			9
Investment Management & Private Banking			10
JPMorgan Partners			11
Investment Portfolio — Private and Public Securities			12
Chase Financial Services			13
Business-Related Metrics			14
Supplemental Detail
Noninterest Revenue and Noninterest Expense Detail			15
Consolidated Balance Sheet			16
Condensed Average Balance Sheet and Annualized Yields			17
Credit-Related Information			18-23
Capital			24
Glossary of Terms			25

Note: Prior periods have been adjusted to conform with current methodologies.

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J.P. MORGAN CHASE & CO. STATEMENT OF INCOME — REPORTED BASIS (in millions, except per share, ratio and employee data)

																								1QTR 2003
																								Over (Under)
				1QTR				4QTR				3QTR				2QTR				1QTR
				2003				2002				2002				2002				2002				4Q 2002				1Q 2002
REVENUE
Investment Banking Fees				$	616			$	678			$	545			$	785			$	755				(9	)%			(18	)%
Trading Revenue					1,232				585				(21	)			731				1,299				111				(5	)
Fees and Commissions					2,598				2,282				3,005				2,885				2,584				14				1
Private Equity — Realized Gains (Losses)					(4	)			(45	)			(40	)			(10	)			(10	)			91				60
Private Equity — Unrealized Gains (Losses)					(217	)			(23	)			(275	)			(115	)			(228	)		NM					5
Securities Gains					485				747				578				124				114				(35	)			325
Other Revenue					481				290				419				292				157				66				206
Total Noninterest Revenue					5,191				4,514				4,211				4,692				4,671				15				11
Interest Income					6,263				6,184				6,316				6,498				6,286				1				—
Interest Expense					3,048				3,203				3,580				3,616				3,359				(5	)			(9	)
Net Interest Income					3,215				2,981				2,736				2,882				2,927				8				10
Revenue before Provision for Credit Losses					8,406				7,495				6,947				7,574				7,598				12				11
Provision for Credit Losses					743				921				1,836				821				753				(19	)			(1	)
	TOTAL NET REVENUE				7,663				6,574				5,111				6,753				6,845				17				12
EXPENSE
Compensation Expense					3,174				3,032				2,367				2,761				2,823				5				12
Occupancy Expense (a)					496				425				478				365				338				17				47
Technology and Communications Expense					637				635				625				629				665				—				(4	)
Amortization of Intangibles					74				82				80				92				69				(10	)			7
Other Expense					1,160				1,294				1,168				1,118				1,208				(10	)			(4	)
Surety Settlement and Litigation Reserve (a)					—				1,300				—				—				—			NM				NM
Merger and Restructuring Costs					—				393				333				229				255			NM				NM
		TOTAL NONINTEREST EXPENSE			5,541				7,161				5,051				5,194				5,358				(23	)			3
Income (Loss) before Income Tax Expense					2,122				(587	)			60				1,559				1,487			NM					43
Income Tax Expense (Benefit)					722				(200	)			20				531				505			NM					43
NET INCOME (LOSS)				$	1,400			$	(387	)		$	40			$	1,028			$	982			NM					43
NET INCOME APPLICABLE TO COMMON STOCK				$	1,387			$	(399	)		$	27			$	1,015			$	969			NM					43
NET INCOME (LOSS) PER COMMON SHARE
Basic				$	0.69			$	(0.20	)		$	0.01			$	0.51			$	0.49			NM					41
Diluted					0.69				(0.20	)			0.01				0.50				0.48			NM					44
PERFORMANCE RATIOS (b)
Return on Average Assets					0.73	%		NM					0.02	%			0.56	%			0.55	%		NM				18 bp
Return on Average Common Equity					13.4			NM					0.3				10.0				9.7			NM					370
FULL-TIME EQUIVALENT EMPLOYEES					93,878				94,335				95,637				95,878				96,938				—	%			(3	)%

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(a)		In the fourth quarter of 2002, a $1,300 million (pre-tax) charge was recorded related to the settlement of the Enron surety litigation and the establishment of a reserve for certain material litigation, proceedings and investigations. In the third quarter of 2002, $98 million (pre-tax) in real estate charges were recorded in “Occupancy Expense” on a reported basis.
(b)		Quarterly ratios are based on annualized amounts.

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J.P. MORGAN CHASE & CO. LINES OF BUSINESS FINANCIAL HIGHLIGHTS SUMMARY (in millions, except per share and ratio data)

																									1QTR 2003
																									Over (Under)
					1QTR				4QTR				3QTR				2QTR				1QTR
					2003				2002				2002				2002				2002				4Q 2002				1Q 2002
OPERATING REVENUE
Investment Bank					$	4,012			$	3,311			$	2,427			$	3,109			$	3,607				21	%			11	%
Treasury & Securities Services						966				962				1,057				1,019				968				—				—
Investment Management & Private Banking						652				663				702				738				773				(2	)			(16	)
Chase Financial Services						3,737				3,378				3,710				3,441				3,091				11				21
JPMorgan Partners						(290	)			(95	)			(371	)			(205	)			(321	)		NM					10
Support Units and Corporate						(214	)			(294	)			(224	)			(194	)			(199	)			27				(8	)
		OPERATING REVENUE (a)			$	8,863			$	7,925			$	7,301			$	7,908			$	7,919				12				12
EARNINGS
Investment Bank					$	932			$	361			$	(249	)		$	502			$	764				158				22
Treasury & Securities Services						147				136				211				176				143				8				3
Investment Management & Private Banking						64				43				99				111				129				49				(50	)
Chase Financial Services						704				496				791				674				508				42				39
JPMorgan Partners						(224	)			(101	)			(284	)			(175	)			(252	)		NM					11
Support Units and Corporate						(223	)			(205	)			(243	)			(109	)			(142	)			(9	)			(57	)
		OPERATING EARNINGS (a)				1,400				730				325				1,179				1,150				92				22
Special Items (Net of Taxes):
	Real Estate Charge					—				—				(65	)			—				—			NM				NM
	Surety Settlement and Litigation Reserve					—				(858	)			—				—				—			NM				NM
	Merger and Restructuring Costs					—				(259	)			(220	)			(151	)			(168	)		NM				NM
		NET INCOME (LOSS) (a)			$	1,400			$	(387	)		$	40			$	1,028			$	982			NM					43
EARNINGS PER SHARE — DILUTED
OPERATING EARNINGS (a)					$	0.69			$	0.36			$	0.16			$	0.58			$	0.57				92				21
Special Items (Net of Taxes):
	Real Estate Charge					—				—				(0.03	)			—				—			NM				NM
	Surety Settlement and Litigation Reserve					—				(0.43	)			—				—				—			NM				NM
	Merger and Restructuring Costs					—				(0.13	)			(0.12	)			(0.08	)			(0.09	)		NM				NM
NET INCOME (LOSS) (a)					$	0.69			$	(0.20	)		$	0.01			$	0.50			$	0.48			NM					44
OPERATING RETURN ON COMMON EQUITY
Investment Bank						19.7	%			7.6	%		NM					10.8	%			16.3	%		1,210 bp				340 bp
Treasury & Securities Services						19.5				18.4				28.2	%			23.2				19.6				110				(10	)
Investment Management & Private Banking						4.2				2.7				6.4				7.1				8.5				150				(430	)
Chase Financial Services						27.5				18.9				29.8				25.8				20.2				860				730
OPERATING RETURN ON COMMON EQUITY (a)						13.4				6.8				2.9				11.4				11.4				660				200

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(a)

Represents consolidated JPMorgan Chase.

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J.P. MORGAN CHASE & CO. STATEMENT OF INCOME — OPERATING BASIS (in millions, except per share and ratio data)

																									1QTR 2003
																									Over (Under)
					1QTR				4QTR				3QTR				2QTR				1QTR
					2003				2002				2002				2002				2002				4Q 2002				1Q 2002
OPERATING REVENUE
Investment Banking Fees					$	616			$	678			$	545			$	785			$	755				(9	)%			(18	)%
Trading-Related Revenue (Includes Trading NII)						1,915				1,253				365				1,136				1,720				53				11
Fees and Commissions						2,429				2,052				2,768				2,745				2,493				18				(3	)
Private Equity — Realized Gains (Losses)						(4	)			(45	)			(40	)			(10	)			(10	)			91				60
Private Equity — Unrealized Gains (Losses)						(217	)			(23	)			(275	)			(115	)			(228	)		NM					5
Securities Gains						485				747				578				124				114				(35	)			325
Other Revenue						477				303				409				273				137				57				248
Net Interest Income (Excludes Trading NII)						3,162				2,960				2,951				2,970				2,938				7				8
		TOTAL OPERATING REVENUE				8,863				7,925				7,301				7,908				7,919				12				12
OPERATING EXPENSE
Compensation Expense (a)						3,174				3,032				2,367				2,761				2,823				5				12
Noncompensation Expense (a) (b)						2,367				2,436				2,253				2,204				2,280				(3	)			4
		TOTAL OPERATING EXPENSE				5,541				5,468				4,620				4,965				5,103				1				9
Credit Costs						1,200				1,351				2,190				1,155				1,074				(11	)			12
Operating Income before Income Tax Expense						2,122				1,106				491				1,788				1,742				92				22
Income Tax Expense						722				376				166				609				592				92				22
OPERATING EARNINGS					$	1,400			$	730			$	325			$	1,179			$	1,150				92				22
OPERATING BASIS
Diluted Earnings per Share					$	0.69			$	0.36			$	0.16			$	0.58			$	0.57				92				21
Shareholder Value Added						148				(551	)			(964	)			(57	)			(59	)		NM				NM
Return on Average Managed Assets (c)						0.70	%			0.37	%			0.17	%			0.62	%			0.63	%		33 bp				7 bp
Return on Common Equity (c)						13.4				6.8				2.9				11.4				11.4				660				200
Common Dividend Payout Ratio						50				96				222				59				60				(4,600	)			(1,000	)
Effective Income Tax Rate						34				34				34				34				34				—				—
Compensation Expense as a % of Operating Revenue						36				38				32				35				36				(200	)			—
Noncompensation Expense as a % of Operating Revenue						27				31				31				28				29				(400	)			(200	)
Overhead Ratio						63				69				63				63				64				(600	)			(100	)

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(a)		Includes severance and other related costs associated with expense containment programs implemented in 2002.
(b)		Includes Occupancy Expense, Technology and Communications Expense, Amortization of Intangibles and Other Expense.
(c)		Quarterly ratios are based on annualized amounts.

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J.P. MORGAN CHASE & CO. RECONCILIATION FROM REPORTED TO OPERATING BASIS (in millions)

																								1QTR 2003
																								Over (Under)
				1QTR				4QTR				3QTR				2QTR				1QTR
				2003				2002				2002				2002				2002				4Q 2002				1Q 2002
REVENUE
TRADING REVENUE
		Reported		$	1,232			$	585			$	(21	)		$	731			$	1,299				111	%			(5	)%
		Trading-Related NII			683				668				386				405				421				2				62
		Operating		$	1,915			$	1,253			$	365			$	1,136			$	1,720				53				11
CREDIT CARD REVENUE (a)
		Reported		$	692			$	807			$	806			$	669			$	587				(14	)			18
		Credit Card Securitizations			(169	)			(230	)			(237	)			(140	)			(91	)			27				(86	)
		Operating		$	523			$	577			$	569			$	529			$	496				(9	)			5
OTHER REVENUE
		Reported		$	481			$	290			$	419			$	292			$	157				66				206
		Credit Card Securitizations			(4	)			13				(10	)			(19	)			(20	)		NM					80
		Operating		$	477			$	303			$	409			$	273			$	137				57				248
NET INTEREST INCOME
		Reported		$	3,215			$	2,981			$	2,736			$	2,882			$	2,927				8				10
		Credit Card Securitizations			630				647				601				493				432				(3	)			46
		Trading-Related NII			(683	)			(668	)			(386	)			(405	)			(421	)			2				62
		Operating		$	3,162			$	2,960			$	2,951			$	2,970			$	2,938				7				8
TOTAL REVENUE
		Reported		$	8,406			$	7,495			$	6,947			$	7,574			$	7,598				12				11
		Credit Card Securitizations			457				430				354				334				321				6				42
		Total Operating Revenue		$	8,863			$	7,925			$	7,301			$	7,908			$	7,919				12				12
NONINTEREST EXPENSE
	Reported			$	5,541			$	7,161			$	5,051			$	5,194			$	5,358				(23	)			3
	Real Estate Reserves				—				—				(98	)			—				—			NM				NM
	Surety Settlement and Litigation Reserve				—				(1,300	)			—				—				—			NM				NM
	Merger and Restructuring Costs				—				(393	)			(333	)			(229	)			(255	)		NM				NM
	Total Operating Expense			$	5,541			$	5,468			$	4,620			$	4,965			$	5,103				1				9
CREDIT COSTS
	Provision for Credit Losses — Reported			$	743			$	921			$	1,836			$	821			$	753				(19	)			(1	)
	Credit Card Securitizations				457				430				354				334				321				6				42
	Credit Costs — Operating			$	1,200			$	1,351			$	2,190			$	1,155			$	1,074				(11	)			12

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(a)

Included in Fees and Commissions.

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SEGMENT DETAIL

 

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J.P. MORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS (in millions, except ratios and employees)

																											1QTR 2003
																											Over (Under)
					1QTR				4QTR				3QTR				2QTR				1QTR
					2003				2002				2002				2002				2002				4Q 2002				1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
	Trading Revenue (Includes Trading NII):
			Fixed Income and Other		$	1,732			$	1,300			$	632			$	1,035			$	1,504				33	%			15	%
			Equities			199				(32	)			(254	)			95				200			NM					(1	)
						1,931				1,268				378				1,130				1,704				52				13
	Investment Banking Fees					621				650				529				781				736				(4	)			(16	)
	Net Interest Income					684				626				630				639				712				9				(4	)
	Fees and Commissions					372				357				422				420				385				4				(3	)
	Securities Gains					383				376				465				108				127				2				202
	All Other Revenue					21				34				3				31				(57	)			(38	)		NM
			TOTAL OPERATING REVENUE			4,012				3,311				2,427				3,109				3,607				21				11
EXPENSE:
	Compensation Expense					1,329				1,070				728				1,063				1,137				24				17
	Noncompensation Expense					823				868				816				816				899				(5	)			(8	)
		Operating Expense (Excludes Severance and Related Costs)				2,152				1,938				1,544				1,879				2,036				11				6
	Severance and Related Costs					104				338				79				124				47				(69	)			121
		TOTAL OPERATING EXPENSE				2,256				2,276				1,623				2,003				2,083				(1	)			8
	Operating Margin					1,756				1,035				804				1,106				1,524				70				15
	Credit Costs					246				489				1,316				306				282				(50	)			(13	)
	Operating Income (Loss) Before Income Tax Expense					1,510				546				(512	)			800				1,242				177				22
	Income Tax Expense (Benefit)					578				185				(263	)			298				478				212				21
OPERATING EARNINGS (LOSS)					$	932			$	361			$	(249	)		$	502			$	764				158				22
	Average Common Equity				$	19,099			$	18,745			$	17,655			$	18,388			$	18,890				2				1
	Average Assets					523,675				515,605				494,810				503,368				467,714				2				12
	Shareholder Value Added					363				(210	)			(788	)			(53	)			200			NM					82
	Return on Common Equity					19.7	%			7.6	%		NM					10.8	%			16.3	%		1,210 bp				340 bp
	Overhead Ratio					56				69				67	%			64				58				(1,300	)			(200	)
	Overhead Ratio Excl. Severance and Related Costs					54				59				64				60				56				(500	)			(200	)
	Compensation Expense as a % of Operating Revenue Excl. Severance and Related Costs					33				32				30				34				32				100				100
FULL-TIME EQUIVALENT EMPLOYEES						14,633				15,158				16,381				16,705				17,674				(3	)%			(17	)%

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J.P. MORGAN CHASE & CO. INVESTMENT BANK BUSINESS-RELATED METRICS (in millions)

																										1QTR 2003
																										Over (Under)
						1QTR				4QTR				3QTR				2QTR				1QTR
						2003				2002				2002				2002				2002				4Q 2002				1Q 2002
BUSINESS REVENUE:
INVESTMENT BANKING FEES
				Advisory		$	160			$	216			$	139			$	194			$	194				(26	)%			(18	)%
				Underwriting and Other Fees			461				434				390				587				542				6				(15	)
TOTAL							621				650				529				781				736				(4	)			(16	)
CAPITAL MARKETS & LENDING
				Fixed Income			1,981				1,566				887				1,269				1,746				27				13
				Treasury			608				578				607				269				385				5				58
				Credit Portfolio			366				324				409				414				297				13				23
				Equities			436				193				(5	)			376				443				126				(2	)
TOTAL							3,391				2,661				1,898				2,328				2,871				27				18
TOTAL OPERATING REVENUE						$	4,012			$	3,311			$	2,427			$	3,109			$	3,607				21				11
MEMO:
CAPITAL MARKETS & LENDING TOTAL RETURN REVENUE (a)
		Fixed Income				$	1,945			$	1,482			$	921			$	1,341			$	1,703				31				14
		Treasury					536				465				364				215				470				15				14
		Credit Portfolio					366				324				409				414				297				13				23
		Equities					436				193				(5	)			376				443				126				(2	)
TOTAL						$	3,283			$	2,464			$	1,689			$	2,346			$	2,913				33				13
MARKET SHARE / RANKINGS: (b)
	Global Syndicated Loans						16% / #1				19% / #1				22% / #1				28% / #1				22% / #1
	U.S. Investment Grade Bonds						15% / #2				14% / #2				15% / #2				18% / #2				16% / #2
	Euro-Denominated Corporate International Bonds						4% / #10				7% / #4				5% / #9				5% / #7				6% / #4
	Global Equity and Equity-Related						10% / #3				3% / #9				2% / #14				6% / #6				5% / #6
	U.S. Equity and Equity-Related						15% / #1				5% / #7				3% / #8				9% / #5				5% / #7
	Global Announced M&A						19% / #3				15% / #5				12% / #7				17% / #3				12% / #8

---

(a)		Total return revenue includes operating revenues plus the unrealized gains or losses on third-party or internally transfer priced assets and liabilities in treasury and fixed income activities, which are not accounted for on a mark-to-market basis through earnings.
(b)		Derived from Thomson Financial Securities Data which reflects subsequent updates to prior period information. Global announced M&A is based on rank value; all other rankings are based on proceeds, with full credit to each book manager/equal if joint. U.S. Equity and Equity-Related adjusted to reflect all equity issuances in the U.S. market for both U.S. and non-U.S. issuers.

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J.P. MORGAN CHASE & CO. TREASURY & SECURITIES SERVICES FINANCIAL HIGHLIGHTS (in millions, except ratios and employees)

																										1QTR 2003
																										Over (Under)
						1QTR				4QTR				3QTR				2QTR				1QTR
						2003				2002				2002				2002				2002				4Q 2002				1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions						$	607			$	593			$	615			$	630			$	609				2	%			—	%
Net Interest Income							323				337				336				334				323				(4	)			—
All Other Revenue							36				32				106				55				36				13				—
			TOTAL OPERATING REVENUE				966				962				1,057				1,019				968				—				—
EXPENSE:
Compensation Expense							319				285				291				302				304				12				5
Noncompensation Expense							422				465				443				447				443				(9	)			(5	)
			TOTAL OPERATING EXPENSE				741				750				734				749				747				(1	)			(1	)
Operating Margin							225				212				323				270				221				6				2
Credit Costs							1				2				—				(1	)			1				(50	)			—
Operating Income Before Income Tax Expense							224				210				323				271				220				7				2
Income Tax Expense							77				74				112				95				77				4				—
OPERATING EARNINGS						$	147			$	136			$	211			$	176			$	143				8				3
Average Common Equity						$	3,046			$	2,904			$	2,952			$	3,026			$	2,943				5				3
Average Assets							19,590				19,277				15,940				18,915				16,974				2				15
Shareholder Value Added							56				47				121				84				55				19				2
Return on Common Equity							19.5	%			18.4	%			28.2	%			23.2	%			19.6	%		110 bp				(10) bp
Overhead Ratio							77				78				69				74				77				(100	)			—
Assets under Custody (in billions)						$	6,269			$	6,336			$	6,251			$	6,417			$	6,428				(1	)%			(2	)%
FULL-TIME EQUIVALENT EMPLOYEES							14,357				14,445				14,745				14,867				15,257				(1	)			(6	)
OPERATING REVENUE BY BUSINESS:
		Treasury Services				$	496			$	478			$	482			$	454			$	459				4				8
		Investor Services					346				340				390				423				386				2				(10	)
		Institutional Trust Services					207				228				223				224				205				(9	)			1
		Other					(83	)			(84	)			(38	)			(82	)			(82	)			1				(1	)
		Total Treasury & Securities Services				$	966			$	962			$	1,057			$	1,019			$	968				—				—

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J.P. MORGAN CHASE & CO. INVESTMENT MANAGEMENT & PRIVATE BANKING FINANCIAL HIGHLIGHTS (in millions, except ratios and employees)

																										1QTR 2003
																										Over (Under)
						1QTR				4QTR				3QTR				2QTR				1QTR
						2003				2002				2002				2002				2002				4Q 2002				1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Fees and Commissions						$	511			$	507			$	519			$	560			$	590				1	%			(13	)%
Net Interest Income							125				117				124				122				120				7				4
All Other Revenue							16				39				59				56				63				(59	)			(75	)
			TOTAL OPERATING REVENUE				652				663				702				738				773				(2	)			(16	)
EXPENSE:
Compensation Expense							285				311				267				261				286				(8	)			—
Noncompensation Expense							289				314				293				317				297				(8	)			(3	)
			TOTAL OPERATING EXPENSE				574				625				560				578				583				(8	)			(2	)
Operating Margin							78				38				142				160				190				105				(59	)
Credit Costs							6				13				26				23				23				(54	)			(74	)
Operating Income Before Income Tax Expense							72				25				116				137				167				188				(57	)
Income Tax Expense							8				(18	)			17				26				38			NM					(79	)
OPERATING EARNINGS						$	64			$	43			$	99			$	111			$	129				49				(50	)
Average Common Equity						$	6,044			$	6,148			$	6,044			$	6,180			$	6,108				(2	)			(1	)
Average Assets							33,577				33,522				34,968				36,478				38,007				—				(12	)
Shareholder Value Added							(116	)			(144	)			(86	)			(75	)			(53	)			19			NM
Tangible Shareholder Value Added							9				(15	)			43				53				74			NM					(88	)
Return on Common Equity							4.2	%			2.7	%			6.4	%			7.1	%			8.5	%		150 bp				(430) bp
Return on Tangible Common Equity							13.9				9.0				21.0				22.5				27.1				490				(1,320	)
Overhead Ratio							88				94				80				78				75				(600	)			1,300
Pre-Tax Margin Ratio							11				4				17				19				22				700				(1,100	)
FULL-TIME EQUIVALENT EMPLOYEES							7,511				7,828				8,081				8,103				8,022				(4	)%			(6	)%
ASSETS UNDER SUPERVISION (in billions)
Client Segment:
		Private Banking				$	125	(a)		$	130			$	126			$	138			$	145				(4	)			(14	)
		Institutional					298	(a)			305				298				318				345				(2	)			(14	)
		Retail					72	(a)			80				77				89				96				(10	)			(25	)
			Assets under Management				495	(a)			515				501				545				586				(4	)			(16	)
		Custody / restricted stock / brokerage / administration / deposits					127	(a)			129				131				140				147				(2	)			(14	)
			Assets under Supervision			$	622	(a)		$	644			$	632			$	685			$	733				(3	)			(15	)
Geographic Region:
		Americas				$	350	(a)		$	362			$	352			$	381			$	424				(3	)			(17	)
		Europe and Asia					145	(a)			153				149				164				162				(5	)			(10	)
			Assets under Management				495	(a)			515				501				545				586				(4	)			(16	)
		Custody / restricted stock / brokerage / administration / deposits					127	(a)			129				131				140				147				(2	)			(14	)
			Assets under Supervision			$	622	(a)		$	644			$	632			$	685			$	733				(3	)			(15	)
Product Class:
		Fixed Income				$	144	(a)		$	149			$	150			$	156			$	157				(3	)			(8	)
		Liquidity					144	(a)			144				130				131				148				—				(3	)
		Equities and Other					207	(a)			222				221				258				281				(7	)			(26	)
			Assets under Management				495	(a)			515				501				545				586				(4	)			(16	)
		Custody / restricted stock / brokerage / administration / deposits					127	(a)			129				131				140				147				(2	)			(14	)
			Assets under Supervision			$	622	(a)		$	644			$	632			$	685			$	733				(3	)			(15	)

(a) Estimated

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J.P. MORGAN CHASE & CO. JPMORGAN PARTNERS FINANCIAL HIGHLIGHTS (in millions, except ratios and employees)

																										1QTR 2003
																										Over (Under)
						1QTR				4QTR				3QTR				2QTR				1QTR
						2003				2002				2002				2002				2002				4Q 2002				1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Private Equity:
	Cash Gains					$	62			$	169			$	111			$	111			$	172				(63	)%			(64	)%
	Write-offs						(65	)			(195	)			(152	)			(122	)			(185	)			67				65
		Realized Gains (Losses)					(3	)			(26	)			(41	)			(11	)			(13	)			88				77
	Public Mark-to-Market						(6	)			108				(120	)			(21	)			(177	)		NM					97
	Private Write-downs						(221	)			(135	)			(138	)			(94	)			(65	)			(64	)		NM
		Unrealized Gains (Losses)					(227	)			(27	)			(258	)			(115	)			(242	)		NM					6
Total Private Equity Gains (Losses)							(230	)			(53	)			(299	)			(126	)			(255	)		NM					10
Net Interest Income (Loss)							(74	)			(69	)			(75	)			(87	)			(86	)			(7	)			14
Fees and Other Revenue							14				27				3				8				20				(48	)			(30	)
			TOTAL OPERATING REVENUE				(290	)			(95	)			(371	)			(205	)			(321	)		NM					10
EXPENSE:
Compensation Expense							34				23				33				34				37				48				(8	)
Noncompensation Expense							29				45				44				39				41				(36	)			(29	)
			TOTAL OPERATING EXPENSE				63				68				77				73				78				(7	)			(19	)
Operating Income (Loss) Before Income Tax Expense							(353	)			(163	)			(448	)			(278	)			(399	)		NM					12
Income Tax Expense (Benefit)							(129	)			(62	)			(164	)			(103	)			(147	)		NM					12
OPERATING EARNINGS (LOSS)						$	(224	)		$	(101	)		$	(284	)		$	(175	)		$	(252	)		NM					11
Average Common Equity						$	5,055			$	5,210			$	5,292			$	5,392			$	5,609				(3	)			(10	)
Average Assets							9,428				9,629				9,404				9,611				10,074				(2	)			(6	)
Shareholder Value Added							(413	)			(300	)			(485	)			(378	)			(461	)			(38	)			10
FULL-TIME EQUIVALENT EMPLOYEES							342				357				364				357				338				(4	)			1

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J.P. MORGAN CHASE & CO. JPMORGAN PARTNERS INVESTMENT PORTFOLIO — PRIVATE AND PUBLIC SECURITIES (in millions)

																							Mar 31, 2003
																							Over (Under)
			Mar 31				Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Mar 31
			2003				2002				2002				2002				2002				2002				2002
PORTFOLIO INFORMATION
Public Securities (89 companies) (a) (b)
	Carrying Value		$	478			$	520			$	488			$	695			$	705				(8	)%			(32	)%
	Cost			624				663				764				860				809				(6	)			(23	)
Private Direct Securities (945 companies) (b)
	Carrying Value			5,912				5,865				5,694				5,707				6,054				1				(2	)
	Cost			7,439				7,316				7,186				7,066				7,317				2				2
Private Fund Investments (312 funds) (b)
	Carrying Value			1,780				1,843				1,831				1,827				1,794				(3	)			(1	)
	Cost			2,360				2,333				2,216				2,164				2,119				1				11
Total Investment Portfolio — Carrying Value			$	8,170			$	8,228			$	8,013			$	8,229			$	8,553				(1	)			(4	)
Total Investment Portfolio — Cost			$	10,423			$	10,312			$	10,166			$	10,090			$	10,245				1				2

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(a)		Publicly traded positions only.
(b)		Represents the number of companies and funds at March 31, 2003.

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J.P. MORGAN CHASE & CO. CHASE FINANCIAL SERVICES FINANCIAL HIGHLIGHTS (in millions, except ratios and employees)

																									1QTR 2003
																									Over (Under)
					1QTR				4QTR				3QTR				2QTR				1QTR
					2003				2002				2002				2002				2002				4Q 2002				1Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Net Interest Income					$	2,360			$	2,171			$	2,150			$	2,112			$	2,023				9	%			17	%
Fees and Commissions						935				603				1,233				1,134				894				55				5
Securities Gains						102				375				112				19				(13	)			(73	)		NM
All Other Revenue						340				229				215				176				187				48				82
		TOTAL OPERATING REVENUE				3,737				3,378				3,710				3,441				3,091				11				21
EXPENSE:
Compensation Expense						734				633				677				669				645				16				14
Noncompensation Expense						1,014				1,076				973				958				900				(6	)			13
		TOTAL OPERATING EXPENSE				1,748				1,709				1,650				1,627				1,545				2				13
Operating Margin						1,989				1,669				2,060				1,814				1,546				19				29
Credit Costs						878				874				823				736				726				—				21
Operating Income Before Income Tax Expense						1,111				795				1,237				1,078				820				40				35
Income Tax Expense						407				299				446				404				312				36				30
OPERATING EARNINGS					$	704			$	496			$	791			$	674			$	508				42				39
Average Common Equity					$	10,331			$	10,371			$	10,488			$	10,433			$	10,142				—				2
Average Managed Assets (a)						202,358				188,479				178,826				175,556				175,593				7				15
Shareholder Value Added						396				179				470				358				205				121				93
Return on Common Equity						27.5	%			18.9	%			29.8	%			25.8	%			20.2	%		860 bp				730 bp
Overhead Ratio						47				51				44				47				50				(400	)			(300	)
FULL-TIME EQUIVALENT EMPLOYEES						44,393				43,612				42,910				42,642				42,331				2	%			5	%
CHASE FINANCIAL SERVICES’ BUSINESSES
CHASE HOME FINANCE:
Operating Revenue					$	1,143			$	646			$	977			$	776			$	530				77				116
Operating Expense						360				379				310				313				298				(5	)			21
Operating Earnings						435				152				390				265				130				186				235
CHASE CARDMEMBER SERVICES:
Operating Revenue					$	1,475			$	1,579			$	1,563			$	1,493			$	1,359				(7	)			9
Operating Expense						534				606				545				523				482				(12	)			11
Operating Earnings						157				147				237				170				142				7				11
CHASE AUTO FINANCE:
Operating Revenue					$	201			$	190			$	167			$	167			$	172				6				17
Operating Expense						67				65				61				61				61				3				10
Operating Earnings						40				37				26				80				31				8				29
CHASE REGIONAL BANKING:
Operating Revenue					$	630			$	692			$	697			$	709			$	724				(9	)			(13	)
Operating Expense						561				564				546				551				557				(1	)			1
Operating Earnings						35				78				76				88				112				(55	)			(69	)
CHASE MIDDLE MARKET:
Operating Revenue					$	369			$	365			$	384			$	369			$	376				1				(2	)
Operating Expense						210				222				198				208				204				(5	)			3
Operating Earnings						96				63				102				97				89				52				8

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(a)

Includes credit card receivables that have been securitized.

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J.P. MORGAN CHASE & CO. CHASE FINANCIAL SERVICES BUSINESS-RELATED METRICS (in billions, except ratios and where otherwise noted)

																							1QTR 2003
																							Over (Under)
			1QTR				4QTR				3QTR				2QTR				1QTR
			2003				2002				2002				2002				2002				4Q 2002				1Q 2002
Chase Home Finance
Originations:
	Retail, Wholesale and Correspondent		$	41			$	40			$	29			$	22			$	23				3	%			78	%
	Correspondent Negotiated Transactions			21				21				7				5				10				—				110
Loans Serviced				432				426				435				436				426				1				1
End-of-Period Outstandings				67.3				63.6				55.6				53.6				54.4				6				24
Total Average Loans Owned				64.4				59.7				54.2				54.1				56.9				8				13
Number of Customers (in millions)				4.0				4.0				4.0				4.0				4.0				—				—
MSR Carrying Value				3.2				3.2				3.6				5.7				6.9				—				(54	)
Net Charge-Off Ratio				0.20	%			0.27	%			0.21	%			0.30	%			0.21	%		(7) bp				(1) bp
Overhead Ratio				31				59				32				40				56				(2,800	)			(2,500	)
Chase Cardmember Services — Managed Basis
End-of-Period Outstandings			$	50.6			$	51.1			$	51.1			$	49.5			$	48.9				(1	)%			3	%
Average Outstandings				50.9				50.7				50.4				48.9				46.3				—				10
Total Purchases & Cash Advances (a)				20.7				21.2				23.0				20.9				18.9				(2	)			10
Total Accounts (in millions)				29.8				29.2				28.6				28.1				27.7				2				8
Active Accounts (in millions)				16.5				16.5				16.5				16.3				16.5				—				—
Net Charge-Off Ratio				5.87	%			5.75	%			5.59	%			6.41	%			5.82	%		12 bp				5 bp
30+ Day Delinquency Rate				4.59				4.67				4.47				4.17				4.58				(8	)			1
Overhead Ratio				36				38				35				35				35				(200	)			100
Chase Auto Finance
Loan and Lease Receivables			$	41.1			$	37.4			$	33.8			$	29.3			$	29.4				10	%			40	%
Average Loan and Lease Receivables				39.6				35.8				31.5				29.6				29.9				11				32
Auto Origination Volume				7.4				6.8				7.6				5.2				5.8				9				28
Auto Market Share				6.4%	(c)			5.7	%			5.8	%			5.1	%			5.2	%		70 bp				120 bp
Net Charge-Off Ratio				0.48				0.53				0.59				0.38				0.53				(5	)			(5	)
Overhead Ratio				33				34				37				36				35				(100	)			(200	)
Chase Regional Banking
Total Average Deposits			$	72.6			$	70.1			$	70.1			$	69.9			$	69.2				4	%			5	%
Total Average Assets Under Management (b)				103.9	(c)			102.6				102.6				104.3				104.8				1				(1	)
Number of Branches				527				528				533				533				538				—				(2	)
Number of ATMs				1,873	(c)			1,876				1,884				1,878				1,895				—				(1	)
Number of Online Customers (in thousands)				1,259				1,185				1,128				1,066				1,003				6				26
Overhead Ratio				89	%			82	%			78	%			78	%			77	%		700 bp				1,200 bp
Chase Middle Market
Total Average Loans			$	14.3			$	14.1			$	13.7			$	13.5			$	13.6				1	%			5	%
Total Average Deposits				28.0				25.8				24.0				24.0				22.7				9				23
Nonperforming Average Loans as a % of Total Average Loans				1.47	%			1.59	%			1.95	%			1.89	%			2.20	%		(12) bp				(73) bp
Overhead Ratio				57				61				52				57				54				(400	)			300

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(a)		Sum of total customer purchases, cash advances and balance transfers.
(b)		Assets under management includes deposits.
(c)		Estimated

Page 14

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SUPPLEMENTAL DETAIL

 

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Table of Contents

J.P. MORGAN CHASE & CO
NONINTEREST REVENUE AND NONINTEREST EXPENSE DETAIL ON A REPORTED BASIS
(in millions)

																								1QTR 2003
																								Over (Under)
				1QTR				4QTR				3QTR				2QTR				1QTR
NONINTEREST REVENUE				2003				2002				2002				2002				2002				4Q 2002				1Q 2002
Investment Banking Fees:
	Advisory			$	166			$	233			$	143			$	189			$	191				(29	)%			(13	)%
	Underwriting:
		Equity			108				84				57				184				139				29				(22	)
		Debt			342				361				345				412				425				(5	)			(20	)
	Total			$	616			$	678			$	545			$	785			$	755				(9	)			(18	)
Trading-Related Revenue:(a)
	Equities			$	194			$	(20	)		$	(211	)		$	120			$	223			NM					(13	)
	Fixed Income and Other				1,721				1,273				576				1,016				1,497				35				15
	Total			$	1,915			$	1,253			$	365			$	1,136			$	1,720				53				11
Fees and Commissions:
	Investment Management, Custody and Processing Services			$	885			$	863			$	923			$	981			$	992				3				(11	)
	Credit Card Revenue				692				807				806				669				587				(14	)			18
	Brokerage and Investment Services				277				273				321				333				304				1				(9	)
	Mortgage Servicing Fees, Net of Amortization, Writedowns and Derivatives Hedging				90				(330	)			323				257				48			NM					88
	Other Lending-Related Service Fees				124				160				128				128				130				(23	)			(5	)
	Deposit Service Fees				285				277				288				273				290				3				(2	)
	Other Fees				245				232				216				244				233				6				5
	Total			$	2,598			$	2,282			$	3,005			$	2,885			$	2,584				14				1
Other Revenue:
	Residential Mortgage Origination/Sales Activities			$	378			$	212			$	213			$	146			$	100				78				278
	All Other Revenue				103				78				206				146				57				32				81
	Total			$	481			$	290			$	419			$	292			$	157				66				206
NONINTEREST EXPENSE
Other Expense:
Professional Services				$	325			$	378			$	307			$	311			$	307				(14	)			6
Outside Services					272				249				256				240				249				9				9
Marketing					164				220				179				144				146				(25	)			12
Travel and Entertainment					89				96				102				112				101				(7	)			(12	)
All Other					310				351				324				311				405				(12	)			(23	)
Total				$	1,160			$	1,294			$	1,168			$	1,118			$	1,208				(10	)			(4	)

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(a)

Includes trading-related net interest income. See reconciliation from reported to operating basis on page 6.

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J.P. MORGAN CHASE & CO
CONSOLIDATED BALANCE SHEET
(in millions)

																								Mar 31, 2003
																								Over (Under)
				Mar 31				Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Mar 31
				2003				2002				2002				2002				2002				2002				2002
ASSETS
Cash and Due from Banks				$	22,229			$	19,218			$	18,159			$	21,878			$	22,637				16	%			(2	)%
Deposits with Banks					6,896				8,942				13,447				10,517				9,691				(23	)			(29	)
Federal Funds Sold and Securities Purchased under Resale Agreements					69,764				65,809				63,748				71,740				76,719				6				(9	)
Securities Borrowed					39,188				34,143				35,283				48,429				40,880				15				(4	)
Trading Assets:
	Debt and Equity Instruments				146,783				165,199				151,264				159,746				144,992				(11	)			1
	Derivative Receivables				86,649				83,102				87,518				69,858				63,224				4				37
Securities					85,178				84,463				79,768				64,526				61,225				1				39
Loans (Net of Allowance for Loan Losses)					212,256				211,014				206,215				207,080				209,541				1				1
Private Equity Investments					8,170				8,228				8,013				8,229				8,553				(1	)			(4	)
Goodwill					8,122				8,096				8,108				8,089				8,055				—				1
Mortgage Servicing Rights					3,235				3,230				3,606				5,689				6,918				—				(53	)
Other Intangibles:
	Purchased Credit Card Relationships				1,205				1,269				1,337				1,426				1,508				(5	)			(20	)
	All Other Intangibles				294				307				311				313				327				(4	)			(10	)
Other Assets					65,187				65,780				64,982				63,026				58,238				(1	)			12
TOTAL ASSETS				$	755,156			$	758,800			$	741,759			$	740,546			$	712,508				—				6
LIABILITIES
Deposits:
	Noninterest-Bearing			$	77,822			$	82,029			$	74,724			$	73,529			$	72,659				(5	)			7
	Interest-Bearing				222,845				222,724				217,447				220,300				209,378				—				6
		Total Deposits			300,667				304,753				292,171				293,829				282,037				(1	)			7
Federal Funds Purchased and Securities Sold under Repurchase Agreements					160,221				169,483				154,745				162,656				152,837				(5	)			5
Commercial Paper					14,039				16,591				13,775				14,561				23,726				(15	)			(41	)
Other Borrowed Funds					12,848				8,946				12,646				17,352				16,968				44				(24	)
Trading Liabilities:
	Debt and Equity Instruments				64,427				66,864				71,607				67,952				71,141				(4	)			(9	)
	Derivative Payables				64,804				66,227				70,593				55,575				44,997				(2	)			44
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)					46,776				38,440				38,233				38,083				36,910				22				27
Long-Term Debt					42,851				39,751				39,113				42,363				37,322				8				15
Guaranteed Preferred Beneficial Interests in the Firm’s Junior Subordinated Deferrable Interest Debentures					5,439				5,439				5,439				5,439				5,439				—				—
TOTAL LIABILITIES					712,072				716,494				698,322				697,810				671,377				(1	)			6
STOCKHOLDERS’ EQUITY
Preferred Stock					1,009				1,009				1,009				1,009				1,009				—				—
Common Stock					2,032				2,024				2,023				2,020				2,016				—				1
Capital Surplus					12,477				13,222				13,113				13,111				12,783				(6	)			(2	)
Retained Earnings					26,538				25,851				26,940				27,605				27,278				3				(3	)
Accumulated Other Comprehensive Income (Loss)					1,113				1,227				1,465				79				(909	)			(9	)		NM
Treasury Stock, at Cost					(85	)			(1,027	)			(1,113	)			(1,088	)			(1,046	)			92				92
TOTAL STOCKHOLDERS’ EQUITY					43,084				42,306				43,437				42,736				41,131				2				5
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY				$	755,156			$	758,800			$	741,759			$	740,546			$	712,508				—				6

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J.P. MORGAN CHASE & CO
CONDENSED AVERAGE BALANCE SHEET AND ANNUALIZED YIELDS
(in millions, except rates)

																						1QTR 2003
																						Over (Under)
		1QTR				4QTR				3QTR				2QTR				1QTR				4Q				1Q
AVERAGE BALANCES		2003				2002				2002				2002				2002				2002				2002
ASSETS
Deposits with Banks		$	9,998			$	13,074			$	13,071			$	9,287			$	12,326				(24	)%			(19	)%
Federal Funds Sold and Securities Purchased under Resale Agreements			87,657				88,974				83,402				83,317				81,004				(1	)			8
Securities and Trading Assets			246,007				229,120				205,232				201,512				180,951				7				36
Securities Borrowed			38,654				40,673				41,881				46,537				41,739				(5	)			(7	)
Loans			215,882				211,489				205,037				211,495				217,847				2				(1	)
Total Interest-Earning Assets			598,198				583,330				548,623				552,148				533,867				3				12
Noninterest-Earning Assets			180,040				171,836				175,743				182,798				184,779				5				(3	)
TOTAL ASSETS		$	778,238			$	755,166			$	724,366			$	734,946			$	718,646				3				8
LIABILITIES
Interest-Bearing Deposits		$	225,389			$	215,061			$	214,932			$	221,687			$	218,049				5				3
Federal Funds Purchased and Securities Sold under Repurchase Agreements			191,163				182,526				170,266				166,919				153,662				5				24
Commercial Paper			14,254				13,469				13,740				18,514				18,901				6				(25	)
Other Borrowings (a)			68,453				65,591				66,014				78,614				67,408				4				2
Long-Term Debt			46,001				44,621				45,525				42,482				43,046				3				7
Total Interest-Bearing Liabilities			545,260				521,268				510,477				528,216				501,066				5				9
Noninterest-Bearing Liabilities			190,111				190,919				170,712				164,832				175,800				—				8
TOTAL LIABILITIES			735,371				712,187				681,189				693,048				676,866				3				9
PREFERRED STOCK OF SUBSIDIARY (b)			—				—				—				—				354			NM				NM
Preferred Stock			1,009				1,009				1,009				1,009				1,009				—				—
Common Stockholders’ Equity			41,858				41,970				42,168				40,889				40,417				—				4
TOTAL STOCKHOLDERS’ EQUITY			42,867				42,979				43,177				41,898				41,426				—				3
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY AND STOCKHOLDERS’ EQUITY		$	778,238			$	755,166			$	724,366			$	734,946			$	718,646				3				8
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks			2.58	%			1.48	%			2.65	%			3.31	%			2.96	%		110 bp				(38) bp
Federal Funds Sold and Securities Purchased under Resale Agreements			2.19				2.33				2.52				2.58				2.45				(14	)			(26	)
Securities and Trading Assets			4.64				4.62				4.98				5.18				5.35				2				(71	)
Securities Borrowed			1.02				1.42				1.70				1.49				1.77				(40	)			(75	)
Loans			5.32				5.29				5.73				5.95				5.87				3				(55	)
Total Interest-Earning Assets			4.26				4.22				4.58				4.74				4.79				4				(53	)
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits			1.92				2.17				2.62				2.38				2.49				(25	)			(57	)
Federal Funds Purchased and Securities Sold under Repurchase Agreements			1.54				1.71				2.06				2.06				2.07				(17	)			(53	)
Commercial Paper			1.30				1.53				1.81				1.84				1.76				(23	)			(46	)
Other Borrowings			4.99				4.69				5.06				5.24				4.81				30				18
Long-Term Debt			3.23				3.68				3.22				3.10				3.35				(45	)			(12	)
Total Interest-Bearing Liabilities			2.27				2.44				2.78				2.75				2.72				(17	)			(45	)
INTEREST RATE SPREAD			1.99	%			1.78	%			1.80	%			1.99	%			2.07	%			21				(8	)
NET INTEREST MARGIN			2.19	%			2.04	%			1.99	%			2.11	%			2.24	%			15				(5	)
NET INTEREST MARGIN ADJUSTED FOR SECURITIZATIONS			2.49	%			2.36	%			2.31	%			2.36	%			2.47	%			13				2

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(a)		Includes securities sold but not yet purchased.
(b)		On February 28, 2002, all outstanding shares were redeemed.

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J.P. MORGAN CHASE & CO
CREDIT-RELATED INFORMATION
(in millions, except ratios)

																							March 31, 2003
																							Over (Under)
			Mar 31				Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Mar 31
CREDIT EXPOSURE			2003				2002				2002				2002				2002				2002				2002
COMMERCIAL
Loans			$	88,446			$	91,548			$	97,486			$	104,701			$	101,752				(3	)%			(13	)%
Derivative Receivables (a)				86,649				83,102				87,518				69,858				63,224				4				37
Other Receivables (b)				108				108				1,130				1,130				—				—			NM
TOTAL COMMERCIAL CREDIT-RELATED ASSETS				175,203				174,758				186,134				175,689				164,976				—				6
Lending-Related Commitments				230,698				238,120				238,150				239,240				242,827				(3	)			(5	)
TOTAL COMMERCIAL CREDIT EXPOSURE (c)				405,901				412,878				424,284				414,929				407,803				(2	)			—
CONSUMER
1-4 Family Residential Mortgages — First Liens				51,711				49,357				41,934				39,602				42,429				5				22
Home Equity				15,363				14,643				13,741				13,067				12,031				5				28
	1-4 Family Residential Mortgages			67,074				64,000				55,675				52,669				54,460				5				23
Credit Card — Reported (d)				17,509				19,677				20,508				21,036				24,746				(11	)			(29	)
Credit Card Securitizations				31,399				30,722				29,843				27,499				23,225				2				35
Credit Card — Managed (d)				48,908				50,399				50,351				48,535				47,971				(3	)			2
Auto Financings				36,865				33,615				30,612				26,666				26,002				10				42
Other Consumer (e)				7,577				7,524				7,197				7,014				7,586				1				—
TOTAL MANAGED CONSUMER LOANS				160,424				155,538				143,835				134,884				136,019				3				18
TOTAL CREDIT PORTFOLIO			$	566,325			$	568,416			$	568,119			$	549,813			$	543,822				—				4

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(a)		Includes $141 million of Enron-related surety receivables at March 31, 2003 that were the subject of settled litigation.
(b)		Represents at March 31, 2003 the Enron-related letter of credit, which continues to be the subject of litigation and was classified in Other Assets.
(c)		Credit exposure excludes risk participations and does not reflect the benefit of credit derivative hedges or liquid collateral held against derivatives contracts.
(d)		At March 31, 2003, excludes $978 million of accrued interest and fees on securitized credit card loans that was classified in Other Assets.
(e)		Consists of installment loans (direct and indirect types of consumer finance), student loans, unsecured revolving lines of credit and non-U.S. consumer loans.

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J.P. MORGAN CHASE & CO. CREDIT-RELATED INFORMATION (CONT.)
(in millions, except ratios)

																							March 31, 2003
																							Over (Under)
			Mar 31				Dec 31				Sep 30				Jun 30				Mar 31				Dec 31				Mar 31
			2003				2002				2002				2002				2002				2002				2002
NONPERFORMING ASSETS AND RATIOS
COMMERCIAL
Loans			$	3,286			$	3,672			$	3,596			$	2,512			$	2,359				(11	)%			39	%
Derivative Receivables (a)				277				289				169				144				1,285				(4	)			(78	)
Other Receivables (b)				108				108				1,130				1,130				—				—			NM
TOTAL COMMERCIAL CREDIT EXPOSURE				3,671				4,069				4,895				3,786				3,644				(10	)			1
CONSUMER
1-4 Family Residential Mortgages — First Liens				249				259				265				226				297				(4	)			(16	)
Home Equity				54				53				49				49				54				2				—
	1-4 Family Residential Mortgages			303				312				314				275				351				(3	)			(14	)
Credit Card — Reported				14				15				17				18				19				(7	)			(26	)
Credit Card Securitizations				—				—				—				—				—			NM				NM
Credit Card — Managed				14				15				17				18				19				(7	)			(26	)
Auto Financings				112				118				108				103				98				(5	)			14
Other Consumer (c)				66				76				68				54				66				(13	)			—
TOTAL MANAGED CONSUMER LOANS				495				521				507				450				534				(5	)			(7	)
Assets Acquired in Loan Satisfactions				225				190				140				142				130				18				73
TOTAL CREDIT PORTFOLIO (d)			$	4,391			$	4,780			$	5,542			$	4,378			$	4,308				(8	)			2
TOTAL NONPERFORMING ASSETS TO TOTAL ASSETS				0.58	%			0.63	%			0.75	%			0.59	%			0.60	%		(5)bp				(2)bp
PAST DUE 90 DAYS AND OVER AND ACCRUING
COMMERCIAL
Loans			$	39			$	57			$	33			$	31			$	52				(32	)%			(25	)%
Derivative Receivables				—				—				—				—				—			NM				NM
TOTAL COMMERCIAL CREDIT EXPOSURE				39				57				33				31				52				(32	)			(25	)
CONSUMER
1-4 Family Residential Mortgages — First Liens				—				—				1				—				—			NM				NM
Home Equity				—				—				—				—				—			NM				NM
	1-4 Family Residential Mortgages			—				—				1				—				—			NM				NM
Credit Card — Reported (e)				269				451				447				505				619				(40	)			(57	)
Credit Card Securitizations				664				630				526				457				478				5				39
Credit Card — Managed (e)				933				1,081				973				962				1,097				(14	)			(15	)
Auto Financings				—				—				—				—				—			NM				NM
Other Consumer (c)				22				22				26				37				45				—				(51	)
TOTAL MANAGED CONSUMER LOANS				955				1,103				1,000				999				1,142				(13	)			(16	)
TOTAL CREDIT PORTFOLIO			$	994			$	1,160			$	1,033			$	1,030			$	1,194				(14	)			(17	)

(a)		Includes $141 million of Enron-related surety receivables at March 31, 2003 that were the subject of settled litigation.
(b)		Represents at March 31, 2003 the Enron-related letter of credit, which continues to be the subject of litigation and was classified in Other Assets.
(c)		Consists of installment loans (direct and indirect types of consumer finance), student loans, unsecured revolving lines of credit and non-U.S. consumer loans.
(d)		Nonperforming assets at March 31, 2003 have not been reduced for credit protection (single name credit default swaps and collateralized loan obligations) relating to nonperforming counterparties in amounts aggregating $50 million at March 31, 2003. Nonperforming assets exclude nonaccrual loans held for sale (“HFS”) of $58 million at March 31, 2003. HFS loans are carried at the lower of cost or market, and declines in value are recorded in Other Revenue.
(e)		At March 31, 2003, excludes $144 million of accrued interest and fees on securitized credit card loans past due 90 days and over and accruing that was classified in Other Assets.

Page 19

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J.P. MORGAN CHASE & CO. CREDIT-RELATED INFORMATION (CONT.)
(in millions, except ratios)

																							1QTR 2003
			1QTR				4QTR				3QTR				2QTR				1QTR				Over (Under)
			2003				2002				2002				2002				2002				4Q 2002				1Q 2002
NET CHARGE-OFFS
COMMERCIAL
Loans			$	292			$	434			$	834			$	293			$	320				(33	)%			(9	)%
Lending-Related Commitments				—				212				—				—				—			NM				NM
TOTAL COMMERCIAL CREDIT EXPOSURE				292				646				834				293				320				(55	)			(9	)
CONSUMER
1-4 Family Residential Mortgages — First Liens				5				11				6				21				11				(55	)			(55	)
Home Equity				2				4				1				—				2				(50	)			—
	1-4 Family Residential Mortgages			7				15				7				21				13				(53	)			(46	)
Credit Card — Reported				275				286				333				433				337				(4	)			(18	)
Credit Card Securitizations				457				430				354				334				321				6				42
Credit Card — Managed				732				716				687				767				658				2				11
Auto Financings				46				47				47				29				38				(2	)			21
Other Consumer (a)				50				54				45				45				45				(7	)			11
TOTAL MANAGED CONSUMER LOANS				835				832				786				862				754				—				11
TOTAL CREDIT PORTFOLIO			$	1,127			$	1,478			$	1,620			$	1,155			$	1,074				(24	)			5
NET CHARGE-OFF RATES — ANNUALIZED COMMERCIAL
Loans				1.32	%			1.88	%			3.53	%			1.17	%			1.27	%		(56)bp				5bp
Lending-Related Commitments				—				0.35				—				—				—				(35	)			—
TOTAL COMMERCIAL CREDIT EXPOSURE				0.37				0.78				1.00				0.34				0.37				(41	)			—
CONSUMER
1-4 Family Residential Mortgages — First Liens				0.04				0.09				0.06				0.20				0.10				(5	)			(6	)
Home Equity				0.05				0.11				0.03				—				0.07				(6	)			(2	)
	1-4 Family Residential Mortgages			0.04				0.10				0.05				0.16				0.09				(6	)			(5	)
Credit Card — Reported				6.17				5.90				6.27				7.67				5.78				27				39
Credit Card Securitizations				5.82				5.58				4.95				5.30				5.98				24				(16	)
Credit Card — Managed				5.95				5.70				5.51				6.42				5.87				25				8
Auto Financings				0.53				0.58				0.64				0.43				0.58				(5	)			(5	)
Other Consumer (a)				2.54				2.77				2.53				2.35				2.16				(23	)			38
TOTAL MANAGED CONSUMER LOANS				2.14				2.20				2.23				2.53				2.22				(6	)			(8	)
TOTAL CREDIT PORTFOLIO				0.95				1.22				1.36				0.97				0.90				(27	)			5

(a)

Consists of installment loans (direct and indirect types of consumer finance), student loans, unsecured revolving lines of credit and non-U.S. consumer loans.

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J.P. MORGAN CHASE & CO. CREDIT-RELATED INFORMATION (CONT.)
(in millions, except ratios)

																							1QTR 2003
			1QTR				4QTR				3QTR				2QTR				1QTR				Over (Under)
			2003				2002				2002				2002				2002				4Q 2002				1Q 2002
SUMMARY OF CHANGES IN THE ALLOWANCE
LOANS:
Beginning Balance			$	5,350			$	5,263			$	5,006			$	5,005			$	4,524				2	%			18	%
	Net Charge-Offs			(670	)			(836	)			(1,266	)			(821	)			(753	)			(20	)			(11	)
	Provision for Loan Losses			670				921				1,544				821				753				(27	)			(11	)
	Other			(135	)			2				(21	)			1				481			NM				NM
Ending Balance			$	5,215			$	5,350			$	5,263			$	5,006			$	5,005				(3	)			4
LENDING-RELATED COMMITMENTS:
Beginning Balance			$	363			$	573			$	281			$	281			$	282				(37	)			29
	Net Charge-Offs			—				(212	)			—				—				—			NM				NM
	Provision for Lending-Related Commitments			73				—				292				—				—			NM				NM
	Other			—				2				—				—				(1	)		NM				NM
Ending Balance			$	436			$	363			$	573			$	281			$	281				20				55
ALLOWANCE COMPONENTS AND RATIOS
LOANS:
Commercial — Specific			$	1,528			$	1,603			$	1,525			$	1,212			$	1,163				(5	)%			31	%
Commercial — Expected				590				613				554				594				635				(4	)			(7	)
	Total Commercial			2,118				2,216				2,079				1,806				1,798				(4	)			18
Consumer Expected				2,255				2,360				2,365				2,387				2,518				(4	)			(10	)
	Total Specific and Expected			4,373				4,576				4,444				4,193				4,316				(4	)			1
Residual Component				842				774				819				813				689				9				22
	Total Allowance for Loans Losses		$	5,215			$	5,350			$	5,263			$	5,006			$	5,005				(3	)			4
LENDING-RELATED COMMITMENTS:
Commercial — Specific			$	305			$	237			$	426			$	165			$	165				29				85
Commercial — Expected				84				87				83				78				79				(3	)			6
	Total Specific and Expected			389				324				509				243				244				20				59
Residual Component				47				39				64				38				37				21				27
Total Allowance for Lending-Related Commitments			$	436			$	363			$	573			$	281			$	281				20				55
Allowance for Loan Losses to Total Loans				2.40	%			2.47	%			2.49	%			2.36	%			2.33	%		(7)bp				7bp
Allowance for Loan Losses to Total Nonperforming Loans				138				128				128				169				173				1,000				(3,500	)
Allowance for Loan Losses to Total Nonperforming Assets				119				112				95				114				116				700				300
CREDIT COSTS
Loans:
	Commercial		$	194			$	526			$	1,107			$	344			$	394				(63	)%			(51	)%
	Consumer			411				395				438				391				365				4				13
Total Specific and Expected				605				921				1,545				735				759				(34	)			(20	)
	Residual Component			65				—				(1	)			86				(6	)		NM				NM
Total Provision for Loan Losses				670				921				1,544				821				753				(27	)			(11	)
Lending-Related Commitments:
	Commercial			65				25				266				(1	)			19				160				242
	Residual Component			8				(25	)			26				1				(19	)		NM				NM
Total Provision for Lending-Related Commitments				73				—				292				—				—			NM				NM
Securitized Credit Losses				457				430				354				334				321				6				42
Total Managed Credit Costs			$	1,200			$	1,351			$	2,190			$	1,155			$	1,074				(11	)			12

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J.P. MORGAN CHASE & CO. CREDIT-RELATED INFORMATION (CONT.)

(a)

To normalize trend, these amounts exclude Enron-related exposure representing surety receivables and a letter of credit claim of $1,130 million at March 31, 2002, June 30, 2002 and September 30, 2002, and continuing settlement and litigation claims of $233 million at December 31, 2002, and $249 million at March 31, 2003.

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J.P. MORGAN CHASE & CO. CREDIT-RELATED INFORMATION (CONT.)
(in millions, except ratios)

			Mar 31								Dec 31								Sep 30								Jun 30								Mar 31								Mar 31, 2003
			2003								2002								2002								2002								2002								Over (Under)
			$				%				$				%				$				%				$				%				$				%				Dec 31 2002					Mar 31 2002
TELECOM AND RELATED INDUSTRIES (a)
Credit Exposure (b)			$	16,739				100	%		$	16,770				100	%		$	18,208				100	%		$	19,973				100	%		$	19,888				100	%			—	%			(16	)%
Risk Profile of Credit Exposure:
Investment-Grade				11,061				66	%			9,376				56	%			10,107				56	%			11,677				58	%			11,233				57	%			18				(2	)
Noninvestment-Grade:
	Noncriticized			3,381				20	%			5,076				30	%			4,928				27	%			5,865				29	%			5,965				30	%			(33	)			(43	)
	Criticized Performing			1,756				11	%			1,487				9	%			2,421				13	%			2,116				11	%			2,439				12	%			18				(28	)
	Criticized Nonperforming (c)			541				3	%			831				5	%			752				4	%			315				2	%			251				1	%			(35	)			116
CABLE INDUSTRY
Credit Exposure (b)			$	5,312				100	%		$	5,982				100	%		$	5,427				100	%		$	4,556				100	%		$	4,590				100	%			(11	)			16
Risk Profile of Credit Exposure:
Investment-Grade				2,112				40	%			2,681				45	%			1,913				35	%			1,371				30	%			1,519				33	%			(21	)			39
Noninvestment-Grade:
	Noncriticized			977				18	%			1,096				18	%			1,385				26	%			1,878				41	%			2,777				61	%			(11	)			(65	)
	Criticized Performing			1,717				32	%			1,673				28	%			1,735				32	%			1,209				27	%			259				5	%			3			NM
	Criticized Nonperforming (c)			506				10	%			532				9	%			394				7	%			98				2	%			35				1	%			(5	)		NM
MERCHANT ENERGY AND RELATED INDUSTRIES (d)
Credit Exposure (b)			$	6,170				100	%		$	6,230				100	%		$	6,241				100	%		$	6,201				100	%		$	6,945				100	%			(1	)			(11	)
Risk Profile of Credit Exposure:
Investment-Grade				3,744				61	%			3,580				57	%			3,470				56	%			3,682				59	%			5,203				75	%			5				(28	)
Noninvestment-Grade:
	Noncriticized			1,066				17	%			423				7	%			1,196				19	%			2,141				35	%			1,649				24	%			152				(35	)
	Criticized Performing			1,156				19	%			1,849				30	%			1,405				22	%			358				6	%			72				1	%			(37	)		NM
	Criticized Nonperforming (c)			204				3	%			378				6	%			170				3	%			20				0	%			21				0	%			(46	)		NM

Note:		The risk profile is based on JPMorgan Chase’s internal risk ratings, which generally correspond to the following ratings as defined by Standard & Poor’s / Moody’s: Investment Grade: AAA / Aaa to BBB- / Baa3 Noninvestment Grade: BB+ / Ba1 to B- / B3 Criticized: CCC+ / Caa1 & below
(a)		Telecom and Related Industries includes other companies with an interdependence upon the telecommunications sector.
(b)		Credit exposure excludes risk participations and does not reflect the benefit of credit derivative hedges or liquid collateral held against derivatives contracts.
(c)		Nonperforming assets exclude nonaccrual HFS loans, which are carried at the lower of cost or market and declines in value are recorded in Other Revenue.
(d)		These amounts exclude Enron-related exposure.

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J.P. MORGAN CHASE & CO. CAPITAL

																											1QTR 2003
																											Over (Under)
			1QTR								4QTR				3QTR				2QTR				1QTR
			2003								2002				2002				2002				2002				4Q 2002				1Q 2002
SOURCES AND USES OF TIER 1 CAPITAL
(in billions)
Sources of Free Cash Flow
	Operating Earnings Less Dividends		$	0.7				(a	)		$	—			$	(0.4	)		$	0.5			$	0.5			NM					40	%
	Preferred Stock and Equivalents/Other Items			—				(a	)			(1.2	)			(0.1	)			(0.5	)			0.2			NM				NM
	Capital for Internal Asset Growth			(0.3	)			(a	)			(1.3	)			(0.1	)			0.6				0.5				77	%		NM
Total Sources of Free Cash Flow			$	0.4							$	(2.5	)		$	(0.6	)		$	0.6			$	1.2			NM					(67	)
Uses of Free Cash Flow
	Increases (Decreases) in Capital Ratios		$	0.6				(a	)		$	(2.3	)		$	(0.6	)		$	0.9			$	1.4			NM					(57	)
	Acquisitions			—				(a	)			—				—				—				—			NM				NM
	Repurchases Net of Stock Issuances			(0.2	)			(a	)			(0.2	)			—				(0.3	)			(0.2	)			—				—
Total Uses of Free Cash Flow			$	0.4							$	(2.5	)		$	(0.6	)		$	0.6			$	1.2			NM					(67	)
COMMON SHARES OUTSTANDING
(in millions)
	Basic Weighted-Average Shares Outstanding			1,999.8								1,990.0				1,986.0				1,982.6				1,978.2				—				1
	Diluted Weighted-Average Shares Outstanding			2,021.9								2,008.5				2,005.8				2,016.0				2,005.8				1				1
	Common Shares Outstanding — at Period End			2,030.0								1,998.7				1,995.9				1,993.4				1,990.2				2				2
	CASH DIVIDENDS DECLARED PER SHARE		$	0.34							$	0.34			$	0.34			$	0.34			$	0.34				—				—
	BOOK VALUE PER SHARE			20.73								20.66				21.26				20.93				20.16				—				3
SHARE PRICE
	High		$	28.29							$	26.14			$	33.68			$	38.75			$	39.68				8				(29	)
	Low			20.13								15.26				17.86				30.15				26.70				32				(25	)
	Close			23.71								24.00				18.99				33.92				35.65				(1	)			(33	)
CAPITAL RATIOS
Tier I Capital Ratio				8.4	%			(a	)			8.2	%			8.7	%			8.8	%			8.6	%		20bp				(20)bp
Total Capital Ratio				12.1				(a	)			12.0				12.4				12.7				12.5				10				(40	)
Tier I Leverage Ratio				5.0				(a	)			5.1				5.4				5.4				5.4				(10	)			(40	)

(a)

Estimated

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J.P. MORGAN CHASE & CO. Glossary of Terms

Assets Under Management: Represent assets actively managed by Investment Management & Private Banking on behalf of institutional and Private Banking clients. Excludes assets managed at American Century Companies Inc., in which the Firm has a 45% ownership interest.

Assets Under Supervision: Represent assets under management as well as custody, restricted stock, brokerage, administration and deposit accounts.

Average Managed Assets: Excludes the impact of credit card securitizations.

bp: Denotes basis points; 100 bp equals 1%.

Corporate: Includes Support Units and the effect remaining at the corporate level after the implementation of management accounting policies.

JPMorgan Partners (“JPMP”): JPMorgan Chase’s private equity business. The fair value of public investments held by JPMP are marked-to-market at the quoted public value. To determine the carrying values of these investments, JPMP incorporates the use of liquidity discounts to take into account the fact that it cannot immediately realize or hedge the quoted public values as a result of regulatory, corporate and/or contractual sales restrictions imposed on these holdings. Private investments are initially valued based on cost. The carrying values of private investments are adjusted from cost to reflect both positive and negative changes evidenced by financing events with third-party capital providers. In addition, these investments are subject to ongoing impairment reviews by JPMP’s senior investment professionals. A variety of factors are reviewed and monitored to assess impairment including, but not limited to, operating performance and future expectations, comparable industry valuations of public companies, changes in market outlook and changes in the third-party financing environment.

Managed Credit Card Receivables or Managed Basis: Refer to the credit card receivables on JPMorgan Chase’s balance sheet plus securitized credit card receivables.

NM: Not meaningful

Operating Basis or Operating Earnings: Represents reported results excluding the impact of merger and restructuring costs, special items and credit card securitizations.

Other Consumer Loans: Consists of installment loans (direct and indirect types of consumer finance), student loans, unsecured lines of credit and non-U.S. consumer.

Overhead Ratio: Operating expense (excluding merger and restructuring costs and special items) as a percentage of the operating revenues.

Reported Basis: Financial statements prepared under generally accepted accounting principles. The reported basis includes the impact of credit card securitizations, merger and restructuring costs and special items.

Return on Tangible Common Equity: Excludes the impact of goodwill on operating earnings and average common equity.

Segment Results — All periods are on a comparable basis, although restatements may occur in future periods to reflect further alignment of management accounting policies or changes in organizational structures between businesses.

Shareholder Value Added (“SVA”): Represents operating earnings less preferred dividends and an explicit charge for capital.

Special Items: Includes merger and restructuring costs and special items.

Tangible Common Equity: Excludes the impact of goodwill.

Tangible Shareholder Value Added: Excludes the impact of goodwill on operating earnings and capital charges.

Trading-Related Revenue: Includes net interest income (“NII”) attributable to trading activities.

Unaudited: The financial statements and information included throughout this document are unaudited.

Page 25

 

Exhibit 99.2

First Quarter 2003 Financial Results April 16, 2003

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Highlights: 1Q03 Rebound of Investment Bank with positive operating leverage Strong trading Improving credit Market share gains in Equities and M&A Continued exceptional strength in mortgage Record applications, wide spreads, low rates Loss at JPMP Cautious outlook

---

 

Earnings Per Share 1Q03 Operating $0.36 $0.57 Reported (0.20) 0.48 $0.69 4Q02 1Q02 O/(U) Operating 92% 21% Reported NM 44% 4Q02 1Q02

---

 

1Q Operating Results ($ in millions) Earnings Revenue 12% 12% Expenses 1% 9% Credit Costs (11%) 12% Drivers 4Q02 1Q02 O/(U) Earnings 1Q02 4Q02 1Q03 Operating Earnings 1150 730 1400 Earnings EPS $0.57 $0.36 $0.69 ROE 11% 7% 13%

---

 

1Q Operating Revenue 1Q03 4Q02 1Q02 Investment Bank $4,012 $701 $405 Investment Mgmt & Private Bkg 652 (11) (121) Chase Financial Services 3,737 359 646 Treasury & Securities Svcs 966 4 (2) JPMP (290) (195) 31 Other (214) 80 (15) Total Firm $8,863 $938 $944 O/(U) ($ in millions)

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1Q Operating Expense Variance ($ in millions) Compensation $3,098 20% 14% Non-compensation 2,272 (4%) --- Severance & related costs 171* (66%) 61% Total Expenses $5,541 1% 9% 1Q03 4Q02 1Q02 O/(U) Compensation mostly revenue driven increase in incentives; also impacted by accounting for stock-based compensation and pension costs Non-Compensation down at the IB and up at CFS; occupancy cost increases vs.first half of 2002 High level of severance and related charges * Severance and Related costs includes $76mm of Compensation expense and $95mm of Noncompensation Expense.

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Investment Grade Non-Investment Grade 12/31/2001 326 98 12/31/2002 331 82 3/31/2003 333 73 Investment Grade All Other Telecom Cable Merchant Energy Emerging Markets 12/31/2001 9.8 2.142 0.141 0.093 0 12/31/2002 8.4 2.3 2.2 2.2 1.2 3/31/2003 7.5 2.3 2.2 1.4 0.9 Risk Migration Trends - Commercial Exposure ($ in billions) Total Criticized Exposure* Credit Exposure *Criticized: JPMorgan Chase's internal risk assessment which generally represents a risk profile similar to that of a rating CCC+/Caa1 or lower, as defined by independent rating agencies, such as Standard & Poor's or Moody's. Excludes exposure related to continuing Enron related settlement & litigation claims Non-Invest Grade Telecom Merchant Energy Cable Emerging Mkts All Other $12.1 $16.3 $14.3 $424 $413 $406

---

 

Nonperforming Assets $4.4 $(0.4) $0.1 Commercial & Residual $0.3 $(0.2) $(0.1) Consumer 0.9 --- 0.2 Total Credit Costs $1.2 $(0.2) $0.1 Nonperforming Assets and Credit Costs ($ in billions) Stabilization of commercial credit costs Consumer credit costs driven by higher loan volumes 1Q03 4Q02 1Q02 O/(U)

---

 

Tier 1 Ratio 3/31/2002 0.086 12/31/2002 0.082 3/31/2003 0.084 Assets $713 $759 $755 RWA $449 $456 $460 Capital ($ in billions) *estimated Tier 1 Capital Ratio Dividend payout of 50% Tight control of balance sheet Potential VIE consolidation in 3Q Changes in internal capital allocation

---

 

Investment Bank ($ in millions, operating basis) Revenue rebounds with operating leverage Positive commercial credit trend 1Q03 4Q02 1Q02 O/(U) Revenue $4,012 21% 11% Expense 2,256 (1%) 8% Credit Costs 246 (50%) (13%) Earnings 932 158% 22% ROE 20% 8% 16% Overhead 56% 69% 58% Fixed Income Capital Mkts 0.494 Equity Capital Mkts 0.109 IB Fees 0.155 Credit Portfolio 0.091 Treasury 0.152 Fixed Income Capital Mkts Treasury Credit Portfolio Equity Cap Mkts Revenue of $4,012 (?21% vs. 4Q) IB Fees 27% growth 126% growth 4% decline 13% growth 5% growth

---

 

Rank U.S. Equity and Equity Related 1 15% Global Syndicated Loans 1 16% U.S. Investment Grade Bonds 2 15% Global Announced M&A 3 19% Investment Bank League Table Summary %Share Source: Thomson Financial First Quarter 2003

---

 

Chase Financial Services ($ in millions, operating basis) Very strong quarter driven by Home Finance 1Q03 4Q02 1Q02 O/(U) Revenue $3,737 11% 21% Expense 1,748 2% 13% Credit Costs 878 --- 21% Earnings 704 42% 39% ROE 28% 19% 20% Overhead 47% 51% 50% Revenue of $3,737 (?21% vs. 1Q) CFS 0.306 CCS 0.395 CAF 0.054 CRB 0.169 CMM 0.099 Home Finance Cardmember Services Auto Middle Mkt Regional Banking 116% growth 9% growth 17% growth 13% decline 2% decline

---

 

JPMP Private Equity Losses 1Q03 4Q02 1Q02 Direct: Realized Cash Gains (Net) $ 46 $144 $126 Writedowns/Write-offs (176) (225) (185) MTM (6) 108 (177) Total Direct (136) 27 (236) Funds (Net) (94) (80) (19) Total Private Equity Losses ($230) ($53) ($255) ($ in millions) Limited/delayed exit opportunities Continuing writedowns/write-offs

---

 

1Q Operating Earnings by Business 1Q02 4Q02 1Q03 Investment Bank 764 361 932 ROE 16% 8% 20% ($ in millions) 1Q02 4Q02 1Q03 Investment Bank 508 496 704 ROE 20% 19% 28% 1Q02 4Q02 1Q03 TSS 143 136 147 ROE 20% 18% 19% 1Q02 4Q02 1Q03 TSS 129 43 65 ROE 8% 3% 4% ROTE* 27% 9% 14% * Return on Tangible Equity

---

 

Summary Low client activity in investment banking Improving commercial credit, but remains at cyclical highs Delayed gain realization at JPMP Consumer lending profits at peak - - will eventually decline Rebound of the Investment Bank, continued exceptional strength in mortgage, loss at JPMP 1Q03 Results Cautious Outlook Operating leverage from cyclical rebound in revenues & improving credit High potential upside

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This presentation 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. These risks and uncertainties could cause our results to differ materially from those set forth in such forward looking statements. Such risks and uncertainties are described in our 2002 Annual Report on Form 10-K, filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission's internet site (http://www.sec.gov), to which reference is hereby made.