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8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (date of earliest event reported): July 18, 2007

JPMORGAN CHASE & CO.

(Exact name of registrant as specified in its charter)


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

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

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


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


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


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


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

TABLE OF CONTENTS


	Item 2.02 Results of Operations and Financial Condition
	Item 9.01 Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EX-12.1: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
EX-99.1: EARNINGS RELEASE
EX-99.2: EARNINGS RELEASE

Item 2.02 Results of Operations and Financial Condition

On July 18, 2007, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2007 second quarter net income of $4.2 billion, or $1.20 per share, compared with net income of $3.5 billion, or $0.99 per share, for the second quarter of 2006. A copy of the 2007 second quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

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

Item 9.01 Financial Statements and Exhibits


Exhibit Number		Description of Exhibit

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

99.1		JPMorgan Chase & Co. Earnings Release — Second Quarter 2007 Results

99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement — Second Quarter 2007

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’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 in the Firm’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 and in the Annual Report on Form 10-K for the year ended December 31, 2006 (as amended), filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

SIGNATURE

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


		JPMORGAN CHASE & CO.
				(Registrant)

		By:		/s/ Louis Rauchenberger

				Louis Rauchenberger

Managing Director and Controller
[Principal Accounting Officer]

Dated: July 18, 2007

EXHIBIT INDEX


Exhibit Number		Description of Exhibit

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

99.1		JPMorgan Chase & Co. Earnings Release — Second Quarter 2007 Results

99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement — Second Quarter 2007

EX-12.1

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges


Six months ended June 30, (in millions, except ratios)	2007

Excluding Interest on Deposits
Income before income taxes	$	13,683

Fixed charges:
Interest expense		11,355
One-third of rents, net of income from subleases (a)		200

Total fixed charges		11,555

Less: Equity in undistributed income of affiliates		(72	)

Income before income taxes and fixed charges, excluding capitalized interest	$	25,166

Fixed charges, as above	$	11,555

Ratio of earnings to fixed charges		2.18


Including Interest on Deposits
Fixed charges, as above	$	11,555
Add: Interest on deposits		10,337

Total fixed charges and interest on deposits	$	21,892

Income before income taxes and fixed charges, excluding capitalized interest, as above	$	25,166
Add: Interest on deposits		10,337

Total income before income taxes, fixed charges and interest on deposits	$	35,503

Ratio of earnings to fixed charges		1.62

(a)

The proportion deemed representative of the interest factor.

EX-99.1

Exhibit 99.1


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

News release: IMMEDIATE RELEASE

JPMORGAN CHASE REPORTS SECOND-QUARTER 2007 NET
INCOME OF $4.2 BILLION; EARNINGS PER SHARE OF $1.20
UP BY 21% FROM THE PRIOR YEAR

	•		Investment Bank generates strong earnings, reflecting record investment banking fees driven by record advisory and equity underwriting fees; posts strong market-related revenue

	•		Asset Management and Treasury & Securities Services produce record earnings on record revenue; Private Equity posts very strong results

New York, July 18, 2007 — JPMorgan Chase & Co. (NYSE: JPM) today reported 2007 second-quarter net income of $4.2 billion compared with net income of $3.5 billion for the second quarter of 2006. Earnings per share of $1.20 were up 21% compared with $0.99 per share in the second quarter of 2006.

Commenting on the quarter, Jamie Dimon, Chairman and Chief Executive Officer, said, “We are pleased with our strong financial results driven by continued investment in all of our businesses and organic growth. Our strong earnings benefited from solid performance in the Investment Bank, record results in Asset Management and Treasury & Securities Services, and very strong results in Private Equity. In addition, during the quarter we strengthened our reserve for the home equity lending portfolio. Although we remain at a relatively benign point of the credit cycle, we continue to focus on being prepared for a less favorable environment. Given the diversity of our business mix, improving operating margins across our businesses and the strength of our balance sheet, the firm is well-positioned for the future.”





Investor Contact: Julia Bates (212) 270-7318		Media Contact: Joe Evangelisti (212) 270-7438

JPMorgan Chase & Co.
News Release

In the discussion below of the business segments and JPMorgan Chase, information is presented on a managed basis. Managed basis starts with GAAP results and includes the following adjustments: for Card Services and the firm as a whole, the impact of credit card securitizations is excluded, and for each line of business and the firm as a whole, net revenue is shown on a tax-equivalent basis. For more information about managed basis, as well as other non-GAAP financial measures used by management to evaluate the performance of each line of business, see Notes 1 and 2 (page 13).

The following discussion compares the second quarter of 2007 with the second quarter of 2006 unless otherwise noted.

INVESTMENT BANK (IB)



Results For IB							1Q07				2Q06
($ millions)	2Q07		1Q07		2Q06		$O/(U)		O/(U) %		$O/(U)		O/(U) %
Net Revenue		$5,798		$6,254		$4,329		($456)		(7)%		$1,469		34%
Provision for Credit Losses		164		63		(62)		101		160		226		NM
Noninterest Expense		3,854		3,831		3,091		23		1		763		25
Net Income		$1,179		$1,540		$839		($361)		(23)%		$340		41%

Discussion of Results:
Net income was $1.2 billion, up by $340 million, or 41%, compared with the prior year. The increase reflected strong revenue growth, primarily offset by an increase in noninterest expense, primarily driven by performance-based compensation, as well as an increase in the provision for credit losses.

Net revenue was $5.8 billion, up by $1.5 billion, or 34%, from the prior year, driven by record investment banking fees and strong markets results. Investment banking fees of $1.9 billion were up 39% from the prior year, driven by record advisory fees, strong debt underwriting fees and record equity underwriting fees. Debt underwriting fees of $831 million were up 27%, driven by record loan syndication fees. Advisory fees of $560 million were up 59%, benefiting from strong performance across all regions. Equity underwriting fees of $509 million were up 40%, reflecting strong performance in Asia and Europe. Fixed Income Markets revenue increased 15% from the prior year, to $2.4 billion, driven by strong results across most products, partially offset by weaker commodities performance versus a strong prior-year quarter. Equity Markets revenue of $1.2 billion more than doubled from the prior year, benefiting from strong global derivatives and cash equities trading performance. Credit Portfolio revenue of $204 million was down 18% due largely to lower gains from loan sales and workouts.

Provision for credit losses was $164 million compared with a benefit of $62 million in the prior year. The increase in the allowance for credit losses reflects portfolio activity. Allowance for loan losses to average loans was 1.76% for the current quarter, which was flat compared with the prior year; nonperforming assets were $119 million, down 77% from the prior year and down 7% from the prior quarter.

JPMorgan Chase & Co.
News Release

Noninterest expense was $3.9 billion, up by $763 million, or 25%, from the prior year. This increase was due primarily to higher performance-based compensation expense.

Highlights Include:

Ranked #1 in Global Equity and Equity-Related; #1 in Global Syndicated Loans; #4 in Global Announced M&A; #2 in Global Debt, Equity and Equity-Related; and #2 in Global Long-Term Debt based upon volume, according to Thomson Financial for year-to-date June 30, 2007.

Total average loans of $73.9 billion were down 6% from the prior year and up 2% from the prior quarter.

Average loans retained of $60.3 billion were up 2% from the prior year and up 1% from the prior quarter.

Average loans held-for-sale of $13.5 billion were down 32% from the prior year, primarily due to the SFAS 159 (“Fair Value Option”) reclassification of loans from loans held-for-sale to trading assets, and up 6% from the prior quarter.

Return on equity was 23% on $21.0 billion of allocated capital.

RETAIL FINANCIAL SERVICES (RFS)



Results for RFS							1Q07				2Q06
($ millions)	2Q07		1Q07		2Q06		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		$4,357		$4,106		$3,779		$251		6%		$578		15%
Provision for Credit Losses		587		292		100		295		101		487		487
Noninterest Expense		2,484		2,407		2,259		77		3		225		10
Net Income		$785		$859		$868		($74)		(9)%		($83)		(10)%

Discussion of Results:
Net income of $785 million was down by $83 million, or 10%, from the prior year, as declines in Regional Banking and Auto Finance were offset partially by improved results in Mortgage Banking.

Net revenue of $4.4 billion was up by $578 million, or 15%, from the prior year. Net interest income of $2.7 billion was up by $107 million, or 4%, due to The Bank of New York transaction and higher deposit balances. These benefits were offset partially by the sale of the insurance business and a continued shift to narrower-spread deposit products. Noninterest revenue of $1.7 billion was up by $471 million, or 39%, benefiting from increased mortgage loan originations; increases in deposit-related fees; increased mortgage loan servicing revenue; and The Bank of New York transaction. Noninterest revenue also benefited from the classification of certain mortgage loan origination costs as expense (loan origination costs previously netted against revenue are currently recorded as expense) due to the adoption of SFAS 159 (“Fair Value Option”) in the first quarter of 2007. These benefits were offset partially by the sale of the insurance business.

The provision for credit losses was $587 million compared with $100 million in the prior year. The increase in provision reflects weak housing prices in select geographic areas and the resulting increase in estimated losses for high loan-to-value home equity loans, especially those originated through the wholesale channel. Home equity underwriting standards were further tightened during the quarter, and pricing actions were implemented to reflect elevated risks in this segment. The current-quarter provision includes an increase in the allowance for loan

JPMorgan Chase & Co.
News Release

losses related to home equity loans of $329 million. Home equity net charge-offs were $98 million (0.44% net charge-off rate) in the current quarter compared with net charge-offs of $30 million (0.16% net charge-off rate) in the prior year.

Noninterest expense of $2.5 billion was up by $225 million, or 10%, due to The Bank of New York transaction, the classification of certain loan origination costs as expense due to the adoption of SFAS 159, an increase in loan originations in Mortgage Banking, and investments in retail distribution. These increases were offset partially by the sale of the insurance business.

Regional Banking net income of $629 million was down by $135 million, or 18%, from the prior year. Net revenue of $3.3 billion was up by $210 million, or 7%, benefiting from The Bank of New York transaction, increases in deposit-related fees and growth in deposits. These benefits were offset partially by the sale of the insurance business and a continued shift to narrower-spread deposit products. The provision for credit losses was $494 million compared with $70 million in the prior year. The increase was largely related to the home equity portfolio, as the allowance for loan losses related to this portfolio was increased by $329 million. Home equity net charge-offs increased to $98 million in the current quarter from $30 million in the prior year (see Retail Financial Services discussion of provision for credit losses for further detail). Noninterest expense of $1.7 billion was flat, as increases due to The Bank of New York transaction and investments in retail distribution were offset by the sale of the insurance business.

Highlights Include:

Checking accounts of 10.4 million were up by 1.3 million, or 14%, from the prior year (including approximately 615,000 accounts acquired from The Bank of New York on October 1, 2006), and up by 198,000, or 2%, from the prior quarter.

Average total deposits increased to $207.3 billion, up by $19.5 billion, or 10%, from the prior year (including approximately $11.5 billion of deposits acquired from The Bank of New York on October 1, 2006), and flat compared with the prior quarter.

Average home equity loans of $89.2 billion were up from $76.2 billion in the prior year.

Business Banking loan originations of $1.8 billion were up 23% from the prior year and 5% from the prior quarter.

Number of branches increased to 3,089, up by 429 from the prior year (including 339 acquired from The Bank of New York), and up by 18 from the prior quarter.

Branch sales of credit cards decreased 7% from the prior-year level.

Branch sales of investment products increased 39% from the prior year and 7% from the prior quarter.

Overhead ratio (excluding amortization of core deposit intangibles) decreased to 50% from 53% in the prior year.

JPMorgan Chase & Co.
News Release

Mortgage Banking net income was $71 million compared with a net loss of $7 million in the prior year. Net revenue of $633 million was up by $315 million from the prior year. Revenue comprises production revenue and net mortgage servicing revenue. Production revenue was $463 million, up by $261 million, reflecting an increase in mortgage loan originations and the classification of certain loan origination costs as expense (loan origination costs previously netted against revenue are currently recorded as expense) due to the adoption of SFAS 159. Net mortgage servicing revenue, which includes loan servicing revenue, MSR risk management results and other changes in fair value, was $170 million compared with $116 million in the prior year. Loan servicing revenue of $615 million increased by $52 million on a 15% increase in third-party loans serviced. MSR risk management revenue of negative $62 million declined by $7 million from the prior year. Other changes in fair value of the MSR asset, representing run-off of the asset against the realization of servicing cash flows, were negative $383 million. Noninterest expense was $516 million, up by $187 million, or 57%, reflecting the classification of certain loan origination costs due to the adoption of SFAS 159, and higher compensation expense, reflecting higher loan originations and a greater number of loan officers.

Highlights Include:

Mortgage loan originations of $44.1 billion were up 41% from the prior year and 22% from the prior quarter.

Total third-party mortgage loans serviced were $572.4 billion, an increase of $75.0 billion, or 15%, from the prior year.

Auto Finance net income of $85 million was down by $26 million, or 23%, compared with the prior year. Net revenue of $450 million was up by $52 million, or 13%, reflecting higher automobile operating lease revenue and wider loan spreads. The provision for credit losses was $92 million, an increase of $62 million, reflecting an increase in estimated losses from low prior-year levels. Noninterest expense of $219 million increased by $35 million, or 19%, driven by increased depreciation expense on owned automobiles subject to operating leases.

Highlights Include:

Auto loan originations of $5.3 billion were up 18% from the prior year and up 2% from the prior quarter.

Average loan receivables of $40.1 billion were flat compared with the prior year and were up 2% from the prior quarter.

The net charge-off ratio increased to 0.61% from 0.43% in the prior year.

JPMorgan Chase & Co.
News Release

CARD SERVICES (CS)



Results for CS							1Q07				2Q06
($ millions)	2Q07		1Q07		2Q06		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		$3,717		$3,680		$3,664		$37		1%		$53		1%
Provision for Credit Losses		1,331		1,229		1,031		102		8		300		29
Noninterest Expense		1,188		1,241		1,249		(53)		(4)		(61)		(5)
Net Income		$759		$765		$875		($6)		(1)%		($116)		(13)%

Discussion of Results:
Net income of $759 million was down by $116 million, or 13%, from the prior year. Prior-year results benefited from significantly lower net charge-offs following the change in bankruptcy legislation in the fourth quarter of 2005.

End-of-period managed loans of $148.0 billion increased by $8.7 billion, or 6%, from the prior year and increased by $1.4 billion, or 1%, from the prior quarter. Average managed loans of $147.4 billion increased by $10.2 billion, or 7%, from the prior year and decreased by $2.0 billion, or 1%, from the prior quarter, reflecting normal seasonal patterning.

Net managed revenue of $3.7 billion was up by $53 million, or 1%, from the prior year. Net interest income of $3.0 billion was flat compared with the prior year. Net interest income was negatively affected by the discontinuation of certain billing practices (including the elimination of certain over-limit fees and the two-cycle billing method for calculating finance charges); higher charge-offs, which resulted in increased revenue reversals; and increased cost of funds on growth in introductory and transactor balances. These decreases in net interest income were offset by increased average loans and higher fees. Compared with the prior quarter, net interest income was down by $34 million, or 1%, primarily due to the discontinuation of certain billing practices and seasonally lower average loan balances. These decreases were offset primarily by lower revenue reversals and higher fees. Noninterest revenue of $762 million was up by $60 million, or 9%, from the prior year. The increase reflects a higher level of fee-based revenue and increased interchange income, benefiting from 4% higher charge volume, primarily offset by higher volume-driven payments to partners and increased rewards expense (both of which are netted against interchange income). Charge volume reflects an approximate 10% growth rate in sales volume offset partially by a lower level of balance transfers, reflecting a more targeted marketing effort.

The managed provision for credit losses was $1.3 billion, up by $300 million, or 29%, from the prior year. The prior year benefited from lower net charge-offs, following the change in bankruptcy legislation in the fourth quarter of 2005, and the release of $90 million of provision related to Hurricane Katrina. Compared with the prior quarter, the managed provision for credit losses was up by $102 million, or 8%, reflecting the absence of a prior-quarter reduction in the allowance for credit losses of $85 million. Credit quality remained stable with a managed net charge-off rate for the quarter of 3.62%, up from 3.28% in the prior year and 3.57% in the prior quarter. The 30-day managed delinquency rate was 3.00%, down from 3.14% in the prior year and 3.07% in the prior quarter.

Noninterest expense of $1.2 billion was down by $61 million, or 5%, compared with the prior year, primarily due to lower marketing expense and lower fraud-related expense, partially offset by higher volume-related expense.

JPMorgan Chase & Co.
News Release

Highlights Include:

Return on equity was 22%, down from 25% in the prior year and flat compared with the prior quarter.

Pretax income to average managed loans (ROO) was 3.26%, down from 4.05% in the prior year and 3.28% in the prior quarter.

Net interest income as a percentage of average managed loans was 8.04%, down from 8.66% in the prior year and 8.11% in the prior quarter.

Net accounts opened during the quarter were 3.7 million.

Charge volume of $88.0 billion increased by $3.6 billion, or 4%, from the prior year.

Merchant processing volume of $179.7 billion increased by $13.4 billion, or 8%, and total transactions of 4.8 billion increased by 335 million, or 7%, from the prior year.

The ShopRite Rite-Rewards MasterCard^®, ShopRite Private Label Credit Card and PriceRite Private Label Credit Card were launched in conjunction with Wakefern Food Corporation. Several partner relationships were renewed including Southwest Airlines and the United States Postal Service Employee Affinity Card Program.

COMMERCIAL BANKING (CB)



Results for CB							1Q07				2Q06
($ millions)	2Q07		1Q07		2Q06		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		$1,007		$1,003		$949		$4		—%		$58		6)
Provision for Credit Losses		45		17		(12)		28		165		57		NM
Noninterest Expense		496		485		496		11		2		—		—
Net Income		$284		$304		$283		($20)		(7)%		$1		—%

Discussion of Results:
Net income of $284 million was flat compared with the prior year, as an increase in net revenue was offset by higher provision for credit losses.

Net revenue was $1.0 billion, up by $58 million, or 6%, from the prior year. Net interest income of $695 million was up by $20 million, or 3%, from the prior year. The increase was driven by double-digit growth in liability balances and loans, which reflected organic growth and The Bank of New York transaction, largely offset by the continued shift to narrower—spread liability products and spread compression in the liability and loan portfolios. Noninterest revenue of $312 million was up by $38 million, or 14%, from the prior year, primarily due to higher investment banking revenue and increased deposit-related fees.

On a segment basis, Middle Market Banking revenue of $653 million increased by $19 million, or 3%, from the prior year, due to The Bank of New York transaction and growth in investment banking revenue. Mid-Corporate Banking revenue of $197 million increased by $36 million, or 22%, reflecting higher lending, investment banking and treasury services revenue. Real Estate Banking revenue of $109 million decreased by $5 million, or 4%.

Provision for credit losses was $45 million compared with a benefit of $12 million in the prior year. The increase in the allowance for credit losses reflects portfolio activity. The allowance for loan losses to average loans was 2.63% in the current quarter compared with 2.68% in both the prior year and the prior quarter; nonperforming loans of $135 million decreased by $90

JPMorgan Chase & Co.
News Release

million, or 40%, from the prior year, and decreased by $6 million, or 4%, from the prior quarter.

Noninterest expense of $496 million was flat compared with the prior year.

Highlights Include:

Overhead ratio was 49%, down from 52% in the prior year.

Gross investment banking revenue (which is shared with the Investment Bank) was $236 million, up by $50 million, or 27%, from the prior year and up by $5 million, or 2%, from the prior quarter.

Average loan balances of $59.8 billion were up by $7.4 billion, or 14%, from the prior year and up by $2.2 billion, or 4%, from the prior quarter.

Average liability balances of $84.2 billion were up by $11.6 billion, or 16%, from the prior year and up by $2.4 billion, or 3%, from the prior quarter.

TREASURY & SECURITIES SERVICES (TSS)



Results for TSS							1Q07				2Q06
($ millions)	2Q07		1Q07		2Q06		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		$1,741		$1,526		$1,588		$215		14%		$153		10%
Provision for Credit Losses		—		6		4		(6)		NM		(4)		NM
Noninterest Expense		1,149		1,075		1,050		74		7		99		9
Net Income		$352		$263		$316		$89		34%		$36		11%

Discussion of Results:
Net income was a record $352 million, up by $36 million, or 11%, from the prior year. The increase was driven by record revenue partially offset by higher compensation expense. Net income was up by $89 million, or 34%, from the prior quarter, primarily due to increased revenue from seasonally strong activity in securities lending and depositary receipts.

Net revenue was a record $1.7 billion, up by $153 million, or 10%, from the prior year. Worldwide Securities Services net revenue of $1.0 billion was up by $135 million, or 15%, driven by increased product usage by new and existing clients, market appreciation, and seasonally strong activity in securities lending and depositary receipts. These benefits were offset partially by lower foreign exchange revenue, as a result of narrower-market spreads. Treasury Services net revenue of $720 million was up by $18 million, or 3%, driven by volume increases in clearing, ACH and commercial cards, partially offset by a continued shift to narrower—spread liability products. TSS firmwide net revenue, which includes Treasury Services net revenue recorded in other lines of business, grew to $2.4 billion, up by $171 million, or 8%. Treasury Services firmwide net revenue grew to $1.4 billion, up by $36 million, or 3%.

Noninterest expense was $1.1 billion, up by $99 million, or 9%, from the prior year. The increase was due largely to higher compensation expense related to business and volume growth, as well as investment in new product platforms.

JPMorgan Chase & Co.
News Release

Highlights Include:

TSS pretax margin⁽²⁾ was 32%, which was flat from the prior year and up from 27% in the prior quarter.

Average liability balances were $217.5 billion, an increase of 12%.

Assets under custody increased to $15.2 trillion, up 32%.

U.S. dollar ACH transactions originated increased 15%.

New client relationships included:

Chosen by the U.S. General Services Administration for SmartPay^®2 charge card services, enabling more than 350 federal agencies and organizations to select JPMorgan Chase as their charge card issuer for expenditures;

Partnered with McKesson Corporation to offer an integrated set of healthcare claim and payment processing solutions; and

Announced several new business mandates within the European pension fund market, including National Pensions Reserve Fund and Pension Insurance Corporation.

Significant transactions included:

Completed the acquisition of the U.S. transfer agency services business of Integrated Investment Services (IIS); and

Completed the acquisition of Xign Corporation, a leading provider of business-to-business on-demand financial settlement solutions.

ASSET MANAGEMENT (AM)



RESULTS FOR AM							1Q07				2Q06
($ millions)	2Q07		1Q07		2Q06		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		$2,137		$1,904		$1,620		$233		12%		$517		32%
Provision for Credit Losses		(11)		(9)		(7)		(2)		(22)		(4)		(57)
Noninterest Expense		1,355		1,235		1,081		120		10		274		25
Net Income		$493		$425		$343		$68		16%		$150		44%

Discussion of Results:
Net income was a record $493 million, up by $150 million, or 44%, from the prior year. Results benefited from increased revenue, partially offset by higher compensation expense.

Net revenue was a record $2.1 billion, up by $517 million, or 32%, from the prior year. Noninterest revenue, principally fees and commissions, of $1.8 billion was up by $472 million, or 34%. This increase was due largely to increased assets under management and higher performance and placement fees. Net interest income of $293 million was up by $45 million, or 18%, from the prior year, largely due to higher loan and deposit balances.

Private Bank revenue grew 38%, to $646 million, due to higher asset management and placement fees, and higher loan and deposit balances. Institutional revenue grew 37%, to $617 million, due to net asset inflows and performance fees. Retail revenue grew 35%, to $602 million, primarily due to net asset inflows and market appreciation. Private Client Services revenue grew 6%, to $272 million, due to increased revenue from higher assets under management and higher deposit balances.

Assets under supervision were $1.5 trillion, up 21%, or $259 billion, from the prior year. Assets under management were $1.1 trillion, up 23%, or $211 billion, from the prior year. The

JPMorgan Chase & Co.
News Release

increase was the result of net asset inflows into the Institutional segment, primarily in liquidity and alternative products; the Retail segment, primarily fixed income and alternative products; the Private Bank segment, primarily in liquidity and alternative products; and from market appreciation. Custody, brokerage, administration and deposit balances were $363 billion, up by $48 billion.

Provision for credit losses was a benefit of $11 million compared with a benefit of $7 million in the prior year.

Noninterest expense of $1.4 billion was up by $274 million, or 25%, from the prior year. The increase was due largely to higher compensation, primarily performance-based, and investments in all business segments.

Highlights Include:

Pretax margin⁽²⁾ was 37%, up from 34% in the prior year.

Assets under Supervision were $1.5 trillion, up 21%, or $259 billion, from the prior year.

Assets under Management were $1.1 trillion, up 23%, or $211 billion, from the prior year, including growth of 38%, or $33 billion, in alternative assets.

Assets under Management net inflows were $30 billion for the second quarter of 2007, and $101 billion for the prior twelve-month period.

Assets under Management that were ranked in the top two quartiles for investment performance over the past three years were 77%, up from 76% at the end of the prior quarter.

Customer assets in 4- and 5-Star rated funds were 65%, up from 61% at the end of the prior quarter.

Average loans of $28.7 billion were up by $2.9 billion, or 11%, from the prior year.

Average deposits of $56.0 billion were up by $4.4 billion, or 9%, from the prior year.

CORPORATE



Results for Corporate							1Q07				2Q06
($ millions)	2Q07		1Q07		2Q06		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue		$1,062		$1,268		($65)		($206)		(16)%		$1,127		NM
Provision for Credit Losses		3		3		—		—		—		3		NM
Noninterest Expense		502		354		156		148		42		346		222%
Income (Loss) from Continuing Operations		382		631		(40)		(249)		(39)		422		NM
Income from Discontinued Operations (after-tax) ^(a)		—		—		56		—		NM		(56)		NM
Net Income		$382		$631		$16		($249)		(39)%		$366		NM

(a) Discontinued operations include the income statement activity of selected corporate trust businesses sold to The Bank of New York on October 1, 2006. Prior to the second quarter of 2006, these corporate trust businesses were reported in Treasury & Securities Services.

Discussion of Results:^{(see note (a) above)}
Net income was $382 million compared with $16 million in the prior year. Results benefited from higher private equity gains, lower securities losses and improved net interest income,

JPMorgan Chase & Co.
News Release

partially offset by higher expense. Prior-year results also included net income from discontinued operations of $56 million.

Net revenue was $1.1 billion compared with negative $65 million in the prior year. Private Equity gains were $1.3 billion compared with $549 million in the prior year, benefiting from a higher level of gains and the classification of certain private equity carried interest as compensation expense. Revenue also benefited from a lower amount of securities losses and improved net interest income. Prior-year results also included a gain of $103 million related to the sale of MasterCard shares in its initial public offering.

Noninterest expense was $502 million, up by $346 million from the prior year. The increase was driven by higher net legal costs, reflecting a lower level of recoveries and higher expense. In addition, expense increased due to the classification of certain private equity carried interest as compensation expense. The increase in noninterest expense was offset partially by lower compensation expense and business efficiencies.

Highlights Include:

Private Equity portfolio was $6.5 billion, up from $5.6 billion in the prior year and up from $6.4 billion in the prior quarter. The portfolio represented 8.8% of stockholders’ equity less goodwill, up from 8.3% in the prior year and unchanged from the prior quarter.

JPMORGAN CHASE (JPM)^(a)



Results for JPM							1Q07				2Q06
($ millions)	2Q07		1Q07		2Q06		$ O/(U)		O/(U) %		$ O/(U)		O/(U) %
Net Revenue^(a)		$19,819		$19,741		$15,864		$78		—%		$3,955		25%
Provision for Credit Losses^(a)		2,119		1,601		1,054		518		32		1,065		101
Noninterest Expense		11,028		10,628		9,382		400		4		1,646		18
Income from Continuing Operations		4,234		4,787		3,484		(553)		(12)		750		22
Income from Discontinued Operations (after-tax)^(b)		—		—		56		—		NM		(56)		NM
Net Income		$4,234		$4,787		$3,540		($553)		(12)%		$694		20%

(a) Presented on a managed basis; see Note 1 (Page 13) for further explanation of managed basis. Net revenue on a GAAP basis was $18,908 million, $18,968 million and $15,086 million for the second quarter of 2007, first quarter of 2007 and second quarter of 2006, respectively.

(b) Discontinued operations include the income statement activity of selected corporate trust businesses sold to The Bank of New York on October 1, 2006. Prior to the second quarter of 2006, these corporate trust businesses were reported in Treasury & Securities Services.

Discussion of Results:

Net income was $4.2 billion, up by $694 million, or 20%, from the prior year. The increase in earnings was driven by higher net managed revenue, partially offset by increased noninterest expense and higher managed provision for credit losses.

Net managed revenue was $19.8 billion, up by $4.0 billion, or 25%, from the prior year. Noninterest revenue of $12.0 billion was up by $2.9 billion, or 31%, reflecting the following: very strong private equity gains; increased asset management, administration, and commissions revenue; record investment banking fees; a lower level of securities losses; and higher mortgage-related fees. Net interest income was $7.8 billion, up by $1.1 billion, or 16%, due to

JPMorgan Chase & Co.
News Release

improved trading net interest income; improved net interest income in the Corporate segment; an increase in consumer loans; and the impact of The Bank of New York transaction. This increase was offset partially by a shift to narrower-spread consumer loans.

The managed provision for credit losses was $2.1 billion, up by $1.1 billion, or 101%, from the prior year. The wholesale provision for credit losses was $198 million for the quarter compared with a benefit of $77 million in the prior year, reflecting an increase in the allowance for credit losses related to portfolio activity. Wholesale net recoveries were $29 million in the current quarter compared with net recoveries of $19 million in the prior year, resulting in net recovery rates of 0.07% and 0.05%, respectively. The total consumer managed provision for credit losses was $1.9 billion compared with $1.1 billion in the prior year. The prior year benefited from significantly lower credit card net charge-offs, following the change in bankruptcy legislation in the fourth quarter of 2005 and the release of $90 million of provision related to Hurricane Katrina in Card Services. The increase from the prior year also reflected additions to the allowance for credit losses and higher charge-offs related to the home equity loan portfolio. The firm had total nonperforming assets of $2.6 billion at June 30, 2007, up by $202 million, or 8%, from the prior-year level of $2.4 billion.

Noninterest expense was $11.0 billion, up by $1.6 billion, or 18%, from the prior year. Expense increased due to higher compensation expense, primarily incentive-based, and increased net legal costs, reflecting a lower level of recoveries and higher expense. Expense growth was also driven by acquisitions and investments in all of the businesses. The increase in expense was offset partially by business divestitures and expense efficiencies.

Highlights Include:

Tier 1 capital ratio was 8.4% at June 30, 2007 (estimated), 8.5% at March 31, 2007, and 8.5% at June 30, 2006.

During the quarter, $1.9 billion of common stock was repurchased, reflecting 36.7 million shares purchased at an average price of $51.13 per share.

Headcount of 179,664 increased by 7,241 since June 30, 2006.

JPMorgan Chase & Co.
News Release

Other financial information

•

Merger savings and cost: For the quarter ended June 30, 2007, approximately $730 million of merger savings have been realized, an annualized rate of $2.9 billion, which is in line with management’s target for the year. Management estimates that annualized savings will be approximately $3.0 billion by the end of 2007. Merger costs of $64 million were expensed during the second quarter of 2007, bringing the total amount of merger costs incurred to $3.6 billion (including capitalized costs) since the beginning of 2004. Management currently expects total merger costs (including costs associated with The Bank of New York transaction) will be approximately $3.8 billion. The remaining merger costs are expected to be incurred by the end of 2007.

Notes:

1. In addition to analyzing the firm’s results on a reported basis, management analyzes the firm’s and the lines of business’ results on a managed basis, which is a non-GAAP financial measure. The firm’s definition of managed basis starts with the reported U.S. GAAP results and includes the following adjustments: First, for Card Services and the firm, managed basis excludes the impact of credit card securitizations on total net revenue, the provision for credit losses, net charge-offs and loan receivables. The presentation of Card Services results on a managed basis assumes that credit card loans that have been securitized and sold in accordance with SFAS 140 still remain on the balance sheet and that the earnings on the securitized loans are classified in the same manner as the earnings on retained loans recorded on the balance sheet. JPMorgan Chase uses the concept of managed basis to evaluate the credit performance and overall financial performance of the entire managed credit card portfolio. Operations are funded and decisions are made about allocating resources, such as employees and capital, based upon managed financial information. In addition, the same underwriting standards and ongoing risk monitoring are used for both loans on the balance sheet and securitized loans. Although securitizations result in the sale of credit card receivables to a trust, JPMorgan Chase retains the ongoing customer relationships, as the customers may continue to use their credit cards; accordingly, the customer’s credit performance will affect both the securitized loans and the loans retained on the balance sheet. JPMorgan Chase believes managed basis information is useful to investors, enabling them to understand both the credit risks associated with the loans reported on the balance sheet and the firm’s retained interests in securitized loans. Second, managed 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 is presented in the managed results on a basis comparable to taxable securities and investments. This methodology allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense. See page 6 of JPMorgan Chase’s Earnings Release Financial Supplement (second quarter of 2007) for a reconciliation of JPMorgan Chase’s income statement from a reported to managed basis.

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

JPMorgan Chase & Co.
News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.5 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com.

JPMorgan Chase will host a conference call today at 9:00 a.m. (Eastern Time) to review second-quarter financial results. Investors can call (866) 293-8970 (domestic) / (913) 312-1230 (international), or listen via live audio webcast. The live audio webcast and presentation slides will be available on www.jpmorganchase.com under Investor Relations, Investor Presentations. A replay of the conference call will be available beginning at 1:00 p.m. (Eastern Time) on July 18, 2007, through midnight, Tuesday, July 31, 2007 (Eastern Time), at (888) 203-1112 (domestic) or (719) 457-0820 (international) with the access code 5941800. The replay also will be available on www.jpmorganchase.com. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available on the JPMorgan Chase Internet site www.jpmorganchase.com.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’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 in the firm’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, and in the Annual Report on Form 10-K for the year ended December 31, 2006 (as amended), filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).


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


	QUARTERLY TRENDS															YEAR-TO-DATE
										2Q07 Change												2007 Change
	2Q07			1Q07			2Q06			1Q07			2Q06			2007			2006			2006
SELECTED INCOME STATEMENT DATA
Total Net Revenue	$	18,908		$	18,968		$	15,086			—	%		25	%	$	37,876		$	30,261			25	%
Provision for Credit Losses		1,529			1,008			493			52			210			2,537			1,324			92
Total Noninterest Expense		11,028			10,628			9,382			4			18			21,656			19,162			13
Income from Continuing Operations (after-tax)		4,234			4,787			3,484			(12	)		22			9,021			6,511			39
Income from Discontinued Operations (after-tax) (a)		—			—			56			—		NM				—			110		NM
Net Income		4,234			4,787			3,540			(12	)		20			9,021			6,621			36

PER COMMON SHARE:
Basic Earnings
Income from Continuing Operations	$	1.24		$	1.38		$	1.00			(10	)		24		$	2.63		$	1.87			41
Net Income		1.24			1.38			1.02			(10	)		22			2.63			1.91			38
Diluted Earnings
Income from Continuing Operations	$	1.20		$	1.34		$	0.98			(10	)		22		$	2.55		$	1.82			40
Net Income		1.20			1.34			0.99			(10	)		21			2.55			1.85			38
Cash Dividends Declared		0.38			0.34			0.34			12			12			0.72			0.68			6
Book Value		35.08			34.45			31.89			2			10			35.08			31.89			10
Closing Share Price		48.45			48.38			42.00			—			15			48.45			42.00			15
Market Capitalization		164,659			165,280			145,764			—			13			164,659			145,764			13

COMMON SHARES OUTSTANDING:
Weighted-Average Diluted Shares Outstanding		3,521.6			3,559.5			3,572.2			(1	)		(1	)		3,540.5			3,571.5			(1	)
Common Shares Outstanding at Period-end		3,398.5			3,416.3			3,470.6			(1	)		(2	)		3,398.5			3,470.6			(2	)

FINANCIAL RATIOS: (b)
Income from Continuing Operations:
Return on Common Equity (“ROE”)		14	%		17	%		13	%								16	%		12	%
Return on Equity-Goodwill (“ROE-GW”) (c)		23			27			21									25			20
Return on Assets (“ROA”) (d)		1.19			1.41			1.05									1.29			1.03
Net Income:
ROE		14			17			13									16			12
ROE-GW (c)		23			27			22									25			21
ROA (e)		1.19			1.41			1.06									1.29			1.03

CAPITAL RATIOS:
Tier 1 Capital Ratio		8.4	(g)		8.5			8.5
Total Capital Ratio		12.0	(g)		11.8			12.0

SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,458,042		$	1,408,918		$	1,328,001			3			10		$	1,458,042		$	1,328,001			10
Wholesale Loans		181,968			168,194			178,215			8			2			181,968			178,215			2
Consumer Loans		283,069			281,571			276,889			1			2			283,069			276,889			2
Deposits		651,370			626,428			593,716			4			10			651,370			593,716			10
Common Stockholders’ Equity		119,211			117,704			110,684			1			8			119,211			110,684			8

Headcount		179,664			176,314			172,423			2			4			179,664			172,423			4

LINE OF BUSINESS EARNINGS
Investment Bank	$	1,179		$	1,540		$	839			(23	)		41		$	2,719		$	1,689			61
Retail Financial Services		785			859			868			(9	)		(10	)		1,644			1,749			(6	)
Card Services		759			765			875			(1	)		(13	)		1,524			1,776			(14	)
Commercial Banking		284			304			283			(7	)		—			588			523			12
Treasury & Securities Services		352			263			316			34			11			615			578			6
Asset Management		493			425			343			16			44			918			656			40
Corporate (f)		382			631			16			(39	)	NM				1,013			(350	)	NM

Net Income	$	4,234		$	4,787		$	3,540			(12	)		20		$	9,021		$	6,621			36


(a)		On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses were reported as discontinued operations for each 2006 period.

(b)		Based upon annualized amounts.

(c)		Income from continuing operations and Net income applicable to common stock divided by Total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating performance of the Firm. The Firm also utilizes this measure to facilitate comparisons to competitors.

(d)		Income from continuing operations divided by Total average assets less average Assets of discontinued operations held-for-sale.

(e)		Net income divided by Total average assets.

(f)		Included the after-tax impact of discontinued operations, recoveries related to material litigation actions, tax audit benefits and Merger costs.

(g)		Estimated.

EX-99.2

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2007

JPMORGAN CHASE & CO.
TABLE OF CONTENTS


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

Business Detail
Line of Business Financial Highlights — Managed Basis		7
Investment Bank		8
Retail Financial Services		10
Card Services — Managed Basis		14
Commercial Banking		17
Treasury & Securities Services		19
Asset Management		21
Corporate		24

Credit-Related Information		26

Supplemental Detail
Capital		31

Glossary of Terms		32

Page 1


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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
SELECTED INCOME STATEMENT DATA
Total Net Revenue (a)	$	18,908		$	18,968		$	16,193		$	15,545		$	15,086			—	%		25	%	$	37,876		$	30,261			25	%
Provision for Credit Losses		1,529			1,008			1,134			812			493			52			210			2,537			1,324			92
Total Noninterest Expense		11,028			10,628			9,885			9,796			9,382			4			18			21,656			19,162			13

Income from Continuing Operations (after-tax)		4,234			4,787			3,906			3,232			3,484			(12	)		22			9,021			6,511			39
Income from Discontinued Operations (after-tax) (b)		—			—			620			65			56			—		NM				—			110		NM
Net Income		4,234			4,787			4,526			3,297			3,540			(12	)		20			9,021			6,621			36

PER COMMON SHARE:
Basic Earnings
Income from Continuing Operations	$	1.24		$	1.38		$	1.13		$	0.93		$	1.00			(10	)		24		$	2.63		$	1.87			41
Net Income		1.24			1.38			1.31			0.95			1.02			(10	)		22			2.63			1.91			38

Diluted Earnings
Income from Continuing Operations	$	1.20		$	1.34		$	1.09		$	0.90		$	0.98			(10	)		22		$	2.55		$	1.82			40
Net Income		1.20			1.34			1.26			0.92			0.99			(10	)		21			2.55			1.85			38

Cash Dividends Declared		0.38			0.34			0.34			0.34			0.34			12			12			0.72			0.68			6
Book Value		35.08			34.45			33.45			32.75			31.89			2			10			35.08			31.89			10
Closing Share Price		48.45			48.38			48.30			46.96			42.00			—			15			48.45			42.00			15
Market Capitalization		164,659			165,280			167,199			162,835			145,764			—			13			164,659			145,764			13

COMMON SHARES OUTSTANDING:
Weighted-Average Diluted Shares Outstanding		3,521.6			3,559.5			3,578.6			3,574.0			3,572.2			(1	)		(1	)		3,540.5			3,571.5			(1	)
Common Shares Outstanding at Period-end		3,398.5			3,416.3			3,461.7			3,467.5			3,470.6			(1	)		(2	)		3,398.5			3,470.6			(2	)

FINANCIAL RATIOS: (c)
Income from Continuing Operations:
Return on Common Equity (“ROE”)		14	%		17	%		14	%		11	%		13	%								16	%		12	%
Return on Equity-Goodwill (“ROE-GW”) (d)		23			27			22			19			21									25			20
Return on Assets (“ROA”) (e)		1.19			1.41			1.14			0.98			1.05									1.29			1.03
Net Income:
ROE		14			17			16			12			13									16			12
ROE-GW (d)		23			27			26			19			22									25			21
ROA (f)		1.19			1.41			1.32			1.00			1.06									1.29			1.03

CAPITAL RATIOS:
Tier 1 Capital Ratio		8.4	(h)		8.5			8.7			8.6			8.5
Total Capital Ratio		12.0	(h)		11.8			12.3			12.1			12.0

SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,458,042		$	1,408,918		$	1,351,520		$	1,338,029		$	1,328,001			3			10		$	1,458,042		$	1,328,001			10
Wholesale Loans		181,968			168,194			183,742			179,403			178,215			8			2			181,968			178,215			2
Consumer Loans		283,069			281,571			299,385			284,141			276,889			1			2			283,069			276,889			2
Deposits		651,370			626,428			638,788			582,115			593,716			4			10			651,370			593,716			10
Common Stockholders’ Equity		119,211			117,704			115,790			113,561			110,684			1			8			119,211			110,684			8

Headcount		179,664			176,314			174,360			171,589			172,423			2			4			179,664			172,423			4

LINE OF BUSINESS EARNINGS
Investment Bank	$	1,179		$	1,540		$	1,009		$	976		$	839			(23	)		41		$	2,719		$	1,689			61
Retail Financial Services		785			859			718			746			868			(9	)		(10	)		1,644			1,749			(6	)
Card Services		759			765			719			711			875			(1	)		(13	)		1,524			1,776			(14	)
Commercial Banking		284			304			256			231			283			(7	)		—			588			523			12
Treasury & Securities Services		352			263			256			256			316			34			11			615			578			6
Asset Management		493			425			407			346			343			16			44			918			656			40
Corporate (g)		382			631			1,161			31			16			(39	)	NM				1,013			(350	)	NM

Net Income	$	4,234		$	4,787		$	4,526		$	3,297		$	3,540			(12	)		20		$	9,021		$	6,621			36


(a)		The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see Note 3 of the Firm’s March 31, 2007, Form 10-Q.
(b)		On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses were reported as discontinued operations for each 2006 period.
(c)		Based upon annualized amounts.
(d)		Income from continuing operations and Net income applicable to common stock divided by Total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating performance of the Firm. The Firm also utilizes this measure to facilitate comparisons to competitors.
(e)		Income from continuing operations divided by Total average assets less average Assets of discontinued operations held-for-sale.
(f)		Net income divided by Total average assets.
(g)		Included the after-tax impact of discontinued operations, recoveries related to material litigation actions, tax audit benefits and Merger costs. See Corporate for additional details.
(h)		Estimated.

Page 2


JPMORGAN CHASE & CO.
STATEMENTS OF INCOME

(in millions, except per share and ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
REVENUE
Investment Banking Fees	$	1,898		$	1,739		$	1,565		$	1,416		$	1,370			9	%		39	%	$	3,637		$	2,539			43	%
Principal Transactions (a)		3,566			4,471			2,591			2,737			2,741			(20	)		30			8,037			5,450			47
Lending & Deposit Related Fees		951			895			895			867			865			6			10			1,846			1,706			8
Asset Management, Administration and Commissions		3,611			3,186			3,173			2,842			2,966			13			22			6,797			5,840			16
Securities Gains (Losses)		(223	)		2			35			40			(502	)	NM				56			(221	)		(618	)		64
Mortgage Fees and Related Income		523			476			75			62			213			10			146			999			454			120
Credit Card Income		1,714			1,563			1,645			1,567			1,791			10			(4	)		3,277			3,701			(11	)
Other Income		553			518			522			635			464			7			19			1,071			1,018			5

Noninterest Revenue		12,593			12,850			10,501			10,166			9,908			(2	)		27			25,443			20,090			27

Interest Income		17,489			16,636			16,097			15,157			14,617			5			20			34,125			27,853			23
Interest Expense		11,174			10,518			10,405			9,778			9,439			6			18			21,692			17,682			23

Net Interest Income		6,315			6,118			5,692			5,379			5,178			3			22			12,433			10,171			22

TOTAL NET REVENUE		18,908			18,968			16,193			15,545			15,086			—			25			37,876			30,261			25


Provision for Credit Losses		1,529			1,008			1,134			812			493			52			210			2,537			1,324			92

NONINTEREST EXPENSE
Compensation Expense		6,309			6,234			4,985			5,390			5,268			1			20			12,543			10,816			16
Occupancy Expense		652			640			625			563			553			2			18			1,292			1,147			13
Technology, Communications and Equipment Expense		921			922			997			911			876			—			5			1,843			1,745			6
Professional & Outside Services		1,259			1,200			1,246			1,111			1,085			5			16			2,459			2,093			17
Marketing		457			482			614			550			526			(5	)		(13	)		939			1,045			(10	)
Other Expense (b)		1,013			735			948			877			631			38			61			1,748			1,447			21
Amortization of Intangibles		353			353			370			346			357			—			(1	)		706			712			(1	)
Merger Costs		64			62			100			48			86			3			(26	)		126			157			(20	)

TOTAL NONINTEREST EXPENSE		11,028			10,628			9,885			9,796			9,382			4			18			21,656			19,162			13


Income from Continuing Operations before Income Tax Expense		6,351			7,332			5,174			4,937			5,211			(13	)		22			13,683			9,775			40
Income Tax Expense		2,117			2,545			1,268			1,705			1,727			(17	)		23			4,662			3,264			43

Income from Continuing Operations (after-tax)		4,234			4,787			3,906			3,232			3,484			(12	)		22			9,021			6,511			39
Income from Discontinued Operations (after-tax) (c)		—			—			620			65			56		—			NM				—			110		NM

NET INCOME	$	4,234		$	4,787		$	4,526		$	3,297		$	3,540			(12	)		20		$	9,021		$	6,621			36


DILUTED EARNINGS PER SHARE
Income from Continuing Operations (after-tax)	$	1.20		$	1.34		$	1.09		$	0.90		$	0.98			(10	)		22		$	2.55		$	1.82			40
Income from Discontinued Operations (after-tax)(c)		—			—			0.17			0.02			0.01			—		NM				—			0.03		NM

Net Income	$	1.20		$	1.34		$	1.26		$	0.92		$	0.99			(10	)		21		$	2.55		$	1.85			38


FINANCIAL RATIOS
Income from Continuing Operations:
ROE		14	%		17	%		14	%		11	%		13	%								16	%		12	%
ROE-GW		23			27			22			19			21									25			20
ROA		1.19			1.41			1.14			0.98			1.05									1.29			1.03
Net Income:
ROE		14			17			16			12			13									16			12
ROE-GW		23			27			26			19			22									25			21
ROA		1.19			1.41			1.32			1.00			1.06									1.29			1.03
Effective Income Tax Rate (d)		33			35			25			35			33									34			33
Overhead Ratio		58			56			61			63			62									57			63

EXCLUDING IMPACT OF MERGER COSTS(e)
Income from Continuing Operations	$	4,234		$	4,787		$	3,906		$	3,232		$	3,484			(12	)		22		$	9,021		$	6,511			39
Less Merger Costs (after-tax)		40			38			62			30			53			5			(25	)		78			97			(20	)

Income from Continuing Operations Excluding Merger Costs	$	4,274		$	4,825		$	3,968		$	3,262		$	3,537			(11	)		21		$	9,099		$	6,608			38


Diluted Per Share:
Income from Continuing Operations	$	1.20		$	1.34		$	1.09		$	0.90		$	0.98			(10	)		22		$	2.55		$	1.82			40
Less Merger Costs (after-tax)		0.01			0.01			0.02			0.01			0.01			—			—			0.02			0.03			(33	)

Income from Continuing Operations Excluding Merger Costs	$	1.21		$	1.35		$	1.11		$	0.91		$	0.99			(10	)		22		$	2.57		$	1.85			39


(a)		The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see Note 3 of the Firm’s March 31, 2007, Form 10-Q.
(b)		Insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material legal proceedings were $137 million, $17 million and $260 million for the quarters ended December 31, 2006, September 30, 2006, and June 30, 2006, respectively. Year-to-date insurance recoveries were $358 million for 2006.
(c)		On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses were reported as discontinued operations for each 2006 period.
(d)		Based on Income from continuing operations.
(e)		Income from continuing operations excluding Merger costs, a non-GAAP financial measure, is used by the Firm to facilitate comparison of results against the Firm’s ongoing operations and with other companies’ U.S. GAAP financial statements.

Page 3


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


																Jun 30, 2007
																Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2007			2007			2006			2006			2006			2007			2006
ASSETS
Cash and Due from Banks	$	35,449		$	31,836		$	40,412		$	36,279		$	38,390			11	%		(8	)%
Deposits with Banks		41,736			30,973			13,547			17,130			14,437			35			189
Federal Funds Sold and Securities Purchased under Resale Agreements		125,930			144,306			140,524			156,194			157,438			(13	)		(20	)
Securities Borrowed		88,360			84,800			73,688			89,222			87,377			4			1
Trading Assets:
Debt and Equity Instruments		391,508			373,684			310,137			289,891			295,604			5			32
Derivative Receivables		59,038			49,647			55,601			58,265			54,075			19			9
Securities		95,984			97,029			91,975			86,548			78,022			(1	)		23
Loans (Net of Allowance for Loan Losses)		457,404			442,465			475,848			456,488			448,028			3			2
Private Equity Investments		6,898			6,788			6,359			5,905			5,974			2			15
Accrued Interest and Accounts Receivable		26,716			23,663			22,891			21,178			24,418			13			9
Premises and Equipment		9,044			8,728			8,735			8,553			8,910			4			2
Goodwill		45,254			45,063			45,186			43,372			43,498			—			4
Other Intangible Assets:
Mortgage Servicing Rights		9,499			7,937			7,546			7,378			8,247			20			15
Purchased Credit Card Relationships		2,591			2,758			2,935			2,982			3,138			(6	)		(17	)
All Other Intangibles		4,103			4,205			4,371			4,078			4,231			(2	)		(3	)
Other Assets		58,528			55,036			51,765			53,181			54,981			6			6
Assets of Discontinued Operations Held-for-Sale (a)		—			—			—			1,385			1,233			—		NM

TOTAL ASSETS	$	1,458,042		$	1,408,918		$	1,351,520		$	1,338,029		$	1,328,001			3			10


LIABILITIES
Deposits:
U.S. Offices:
Noninterest-Bearing	$	120,470		$	123,942		$	132,781		$	117,197		$	127,311			(3	)		(5	)
Interest-Bearing		342,079			342,368			337,812			310,401			312,517			—			9
Non-U.S. Offices:
Noninterest-Bearing		5,919			8,104			7,662			3,761			6,442			(27	)		(8	)
Interest-Bearing		182,902			152,014			160,533			150,756			147,446			20			24

Total Deposits		651,370			626,428			638,788			582,115			593,716			4			10
Federal Funds Purchased and Securities Sold under Repurchase Agreements		205,961			218,917			162,173			188,395			175,055			(6	)		18
Commercial Paper		25,116			25,354			18,849			18,135			18,554			(1	)		35
Other Borrowed Funds		29,263			19,871			18,053			16,252			10,921			47			168
Trading Liabilities:
Debt and Equity Instruments		93,969			94,309			90,488			106,784			105,445			—			(11	)
Derivative Payables		61,396			50,316			57,469			58,462			52,630			22			17
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		84,785			87,603			88,096			73,585			82,569			(3	)		3
Beneficial Interests Issued by Consolidated VIEs		14,808			13,109			16,184			16,254			15,432			13			(4	)
Long-Term Debt		159,493			143,274			133,421			126,619			125,280			11			27
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		12,670			12,033			12,209			13,309			10,827			5			17
Liabilities of Discontinued Operations Held-for-Sale (a)		—			—			—			24,558			26,888			—		NM

TOTAL LIABILITIES		1,338,831			1,291,214			1,235,730			1,224,468			1,217,317			4			10

STOCKHOLDERS’ EQUITY
Common Stock		3,658			3,658			3,658			3,658			3,658			—			—
Capital Surplus		78,020			77,760			77,807			77,457			77,098			—			1
Retained Earnings (b)		51,011			48,105			43,600			40,283			38,208			6			34
Accumulated Other Comprehensive Income (Loss)		(2,080	)		(1,482	)		(1,557	)		(526	)		(1,218	)		(40	)		(71	)
Treasury Stock, at Cost		(11,398	)		(10,337	)		(7,718	)		(7,311	)		(7,062	)		(10	)		(61	)

TOTAL STOCKHOLDERS’ EQUITY		119,211			117,704			115,790			113,561			110,684			1			8

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,458,042		$	1,408,918		$	1,351,520		$	1,338,029		$	1,328,001			3			10


(a)		On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank of New York. As a result of this transaction, assets and liabilities of this business were reclassified and reported as discontinued operations for the periods ended September 30, 2006 and June 30, 2006.
(b)		The cumulative effect of changes in accounting principles increased Retained earnings as a result of implementing SFAS 157, SFAS 159 and FIN 48 in the first quarter of 2007. For additional information see the Firm’s March 31, 2007, Form 10-Q.

Page 4


JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(in millions, except rates)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	18,153		$	16,224		$	19,736		$	31,291		$	39,193			12	%		(54	)%	$	17,193		$	29,984			(43	)%
Federal Funds Sold and Securities Purchased under Resale Agreements		132,768			135,499			144,744			125,618			128,740			(2	)		3			134,127			129,003			4
Securities Borrowed		90,810			78,768			82,184			82,216			86,742			15			5			84,822			85,488			(1	)
Trading Assets — Debt Instruments		294,931			257,079			218,188			213,164			204,551			15			44			276,109			195,167			41
Securities		96,921			95,326			89,962			78,029			82,845			2			17			96,128			71,593			34
Interests in Purchased Receivables (a)		—			—			—			—			26,221			—		NM				—			28,114		NM
Loans		465,763			467,453			484,140			461,673			442,601			—			5			466,604			435,859			7

Total Interest-Earning Assets		1,099,346			1,050,349			1,038,954			991,991			1,010,893			5			9			1,074,983			975,208			10
Trading Assets — Equity Instruments		85,830			88,791			81,985			75,366			70,045			(3	)		23			87,302			70,402			24
Goodwill		45,181			45,125			45,163			43,386			43,523			—			4			45,153			43,462			4
Other Intangible Assets:
Mortgage Servicing Rights		8,371			7,784			7,295			8,048			7,937			8			5			8,079			7,293			11
All Other Intangible Assets		6,854			7,139			7,478			7,202			7,519			(4	)		(9	)		6,996			7,503			(7	)
All Other Noninterest-Earning Assets		186,404			179,727			181,732			159,482			170,919			4			9			183,084			166,242			10
Assets of Discontinued Operations Held-for-Sale (b)		—			—			—			23,664			23,033			—		NM				—			21,239		NM

TOTAL ASSETS	$	1,431,986		$	1,378,915		$	1,362,607		$	1,309,139		$	1,333,869			4			7		$	1,405,597		$	1,291,349			9


LIABILITIES
Interest-Bearing Deposits	$	513,451		$	498,717		$	487,368		$	451,509		$	449,782			3			14		$	506,125		$	434,925			16
Federal Funds Purchased and Securities Sold under Repurchase Agreements		209,323			199,252			198,166			192,674			184,943			5			13			204,316			171,953			19
Commercial Paper		25,282			22,339			18,787			19,207			17,484			13			45			23,819			16,403			45
Other Borrowings (c)		100,715			95,664			96,499			101,366			103,150			5			(2	)		98,202			105,413			(7	)
Beneficial Interests Issued by Consolidated VIEs		13,641			15,993			15,769			13,630			43,470			(15	)		(69	)		14,811			42,835			(65	)
Long-Term Debt		162,465			148,146			140,515			133,279			125,723			10			29			155,345			122,318			27

Total Interest-Bearing Liabilities		1,024,877			980,111			957,104			911,665			924,552			5			11			1,002,618			893,847			12
Noninterest-Bearing Liabilities		289,058			282,559			290,741			262,843			278,229			2			4			285,826			269,133			6
Liabilities of Discontinued Operations Held-for-Sale (b)		—			—			—			22,825			22,131			—		NM				—			20,234		NM

TOTAL LIABILITIES		1,313,935			1,262,670			1,247,845			1,197,333			1,224,912			4			7			1,288,444			1,183,214			9

Preferred Stock		—			—			—			—			—			—			—			—			68		NM
Common Stockholders’ Equity		118,051			116,245			114,762			111,806			108,957			2			8			117,153			108,067			8

TOTAL STOCKHOLDERS’ EQUITY		118,051			116,245			114,762			111,806			108,957			2			8			117,153			108,135			8

TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$	1,431,986		$	1,378,915		$	1,362,607		$	1,309,139		$	1,333,869			4			7		$	1,405,597		$	1,291,349			9


AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		4.56	%		4.65	%		5.18	%		4.46	%		4.43	%								4.61	%		4.40	%
Federal Funds Sold and Securities Purchased under Resale Agreements		4.99			4.95			4.71			4.55			3.81									4.97			3.78
Securities Borrowed		5.31			5.42			4.56			4.28			3.89									5.36			3.70
Trading Assets — Debt Instruments		5.85			5.99			5.45			5.28			5.33									5.91			5.46
Securities		5.68			5.68			5.57			5.70			5.45									5.68			5.41
Interests in Purchased Receivables	NM			NM			NM			NM				4.92								NM				4.68
Loans		7.65			7.53			7.35			7.37			7.25									7.59			7.16
Total Interest-Earning Assets		6.43			6.45			6.17			6.08			5.82									6.44			5.78

INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		4.17			4.06			3.99			3.93			3.67									4.12			3.56
Federal Funds Purchased and Securities Sold under Repurchase Agreements		5.19			5.09			4.86			4.63			4.30									5.14			4.12
Commercial Paper		4.92			4.89			4.76			4.78			4.31									4.91			4.15
Other Borrowings (c)		4.69			5.07			4.75			5.13			4.93									4.87			5.05
Beneficial Interests Issued by Consolidated VIEs		3.22			3.82			3.96			4.16			4.86									3.54			4.40
Long-Term Debt		3.77			3.85			4.34			4.08			4.34									3.81			4.28
Total Interest-Bearing Liabilities		4.37			4.35			4.31			4.26			4.09									4.36			3.99

INTEREST RATE SPREAD		2.06	%		2.10	%		1.86	%		1.82	%		1.73	%								2.08	%		1.79	%

NET YIELD ON INTEREST-EARNING ASSETS		2.35	%		2.39	%		2.19	%		2.17	%		2.07	%								2.37	%		2.13	%

NET YIELD ON INTEREST-EARNING ASSETS ADJUSTED FOR SECURITIZATIONS		2.68	%		2.73	%		2.54	%		2.54	%		2.50	%								2.71	%		2.58	%


(a)		As a result of restructuring certain multi-seller conduits the Firm administers, during the second quarter of 2006, JPMorgan Chase deconsolidated $29 billion of Interests in Purchased Receivables, $3 billion of Loans and $1 billion of Securities, and recorded $33 billion of Lending-Related Commitments.
(b)		As a result of the transaction with The Bank of New York, for purposes of the consolidated average balance sheet for assets and liabilities transferred to discontinued operations, JPMorgan Chase used Federal funds sold interest income as a reasonable estimate of the earnings on corporate trust deposits for the periods prior to the close of the transaction; therefore, JPMorgan Chase transferred to Assets of discontinued operations held-for-sale average Federal funds sold, along with the related interest income earned, and transferred to Liabilities of discontinued operations held-for-sale average corporate trust deposits.
(c)		Included securities sold but not yet purchased.

Page 5


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

The Firm prepares its Consolidated financial statements using accounting principles generally accepted in the United States of America (“U.S. GAAP”). That presentation, which is referred to as “reported basis,” provides the reader with an understanding of the Firm’s results that can be tracked consistently from year to year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s and the lines’ of business results on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications that assumes credit card loans securitized by Card Services remain on the balance sheet and presents revenue on a fully taxable-equivalent (“FTE”) basis. These adjustments do not have any impact on Net income as reported by the lines of business or by the Firm as a whole. The impact of these adjustments are summarized below. For additional information about managed basis, please refer to the Glossary of Terms on page 32.


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
CREDIT CARD INCOME
Credit Card Income — Reported	$	1,714		$	1,563		$	1,645		$	1,567		$	1,791			10	%		(4	)%	$	3,277		$	3,701			(11	)%
Impact of:
Credit Card Securitizations		(788	)		(746	)		(726	)		(721	)		(937	)		(6	)		16			(1,534	)		(2,062	)		26

Credit Card Income — Managed	$	926		$	817		$	919		$	846		$	854			13			8		$	1,743		$	1,639			6


OTHER INCOME
Other Income — Reported	$	553		$	518		$	522		$	635		$	464			7			19		$	1,071		$	1,018			5
Impact of:
Tax-Equivalent Adjustments		199			110			195			165			170			81			17			309			316			(2	)

Other Income — Managed	$	752		$	628		$	717		$	800		$	634			20			19		$	1,380		$	1,334			3


TOTAL NONINTEREST REVENUE
Total Noninterest Revenue — Reported	$	12,593		$	12,850		$	10,501		$	10,166		$	9,908			(2	)		27		$	25,443		$	20,090			27
Impact of:
Credit Card Securitizations		(788	)		(746	)		(726	)		(721	)		(937	)		(6	)		16			(1,534	)		(2,062	)		26
Tax-Equivalent Adjustments		199			110			195			165			170			81			17			309			316			(2	)

Total Noninterest Revenue — Managed	$	12,004		$	12,214		$	9,970		$	9,610		$	9,141			(2	)		31		$	24,218		$	18,344			32


NET INTEREST INCOME
Net Interest Income — Reported	$	6,315		$	6,118		$	5,692		$	5,379		$	5,178			3			22		$	12,433		$	10,171			22
Impact of:
Credit Card Securitizations		1,378			1,339			1,319			1,328			1,498			3			(8	)		2,717			3,072			(12	)
Tax-Equivalent Adjustments		122			70			53			57			47			74			160			192			118			63

Net Interest Income — Managed	$	7,815		$	7,527		$	7,064		$	6,764		$	6,723			4			16		$	15,342		$	13,361			15


TOTAL NET REVENUE
Total Net Revenue — Reported	$	18,908		$	18,968		$	16,193		$	15,545		$	15,086			—			25		$	37,876		$	30,261			25
Impact of:
Credit Card Securitizations		590			593			593			607			561			(1	)		5			1,183			1,010			17
Tax-Equivalent Adjustments		321			180			248			222			217			78			48			501			434			15

Total Net Revenue — Managed	$	19,819		$	19,741		$	17,034		$	16,374		$	15,864			—			25		$	39,560		$	31,705			25


PROVISION FOR CREDIT LOSSES
Provision for Credit Losses — Reported	$	1,529		$	1,008		$	1,134		$	812		$	493			52			210		$	2,537		$	1,324			92
Impact of:
Credit Card Securitizations		590			593			593			607			561			(1	)		5			1,183			1,010			17

Provision for Credit Losses — Managed	$	2,119		$	1,601		$	1,727		$	1,419		$	1,054			32			101		$	3,720		$	2,334			59


INCOME TAX EXPENSE
Income Tax Expense — Reported	$	2,117		$	2,545		$	1,268		$	1,705		$	1,727			(17	)		23		$	4,662		$	3,264			43
Impact of:
Tax-Equivalent Adjustments		321			180			248			222			217			78			48			501			434			15

Income Tax Expense — Managed	$	2,438		$	2,725		$	1,516		$	1,927		$	1,944			(11	)		25		$	5,163		$	3,698			40

Page 6


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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
TOTAL NET REVENUE (FTE)
Investment Bank	$	5,798		$	6,254		$	4,860		$	4,816		$	4,329			(7	)%		34	%	$	12,052		$	9,157			32	%
Retail Financial Services		4,357			4,106			3,728			3,555			3,779			6			15			8,463			7,542			12
Card Services		3,717			3,680			3,750			3,646			3,664			1			1			7,397			7,349			1
Commercial Banking		1,007			1,003			1,018			933			949			—			6			2,010			1,849			9
Treasury & Securities Services		1,741			1,526			1,537			1,499			1,588			14			10			3,267			3,073			6
Asset Management		2,137			1,904			1,947			1,636			1,620			12			32			4,041			3,204			26
Corporate		1,062			1,268			194			289			(65	)		(16	)	NM				2,330			(469	)	NM

TOTAL NET REVENUE	$	19,819		$	19,741		$	17,034		$	16,374		$	15,864			—			25		$	39,560		$	31,705			25


NET INCOME (LOSS)
Investment Bank	$	1,179		$	1,540		$	1,009		$	976		$	839			(23	)		41		$	2,719		$	1,689			61
Retail Financial Services		785			859			718			746			868			(9	)		(10	)		1,644			1,749			(6	)
Card Services		759			765			719			711			875			(1	)		(13	)		1,524			1,776			(14	)
Commercial Banking		284			304			256			231			283			(7	)		—			588			523			12
Treasury & Securities Services		352			263			256			256			316			34			11			615			578			6
Asset Management		493			425			407			346			343			16			44			918			656			40
Corporate (a)		382			631			1,161			31			16			(39	)	NM				1,013			(350	)	NM

TOTAL NET INCOME (b)	$	4,234		$	4,787		$	4,526		$	3,297		$	3,540			(12	)		20		$	9,021		$	6,621			36


AVERAGE EQUITY (c)
Investment Bank	$	21,000		$	21,000		$	21,000		$	21,000		$	21,000			—			—		$	21,000		$	20,503			2
Retail Financial Services		16,000			16,000			16,000			14,300			14,300			—			12			16,000			14,099			13
Card Services		14,100			14,100			14,100			14,100			14,100			—			—			14,100			14,100			—
Commercial Banking		6,300			6,300			6,300			5,500			5,500			—			15			6,300			5,500			15
Treasury & Securities Services		3,000			3,000			2,200			2,200			2,200			—			36			3,000			2,372			26
Asset Management		3,750			3,750			3,500			3,500			3,500			—			7			3,750			3,500			7
Corporate		53,901			52,095			51,662			51,206			48,357			3			11			53,003			47,993			10

TOTAL AVERAGE EQUITY	$	118,051		$	116,245		$	114,762		$	111,806		$	108,957			2			8		$	117,153		$	108,067			8

RETURN ON EQUITY (c)
Investment Bank		23	%		30	%		19	%		18	%		16	%								26	%		17	%
Retail Financial Services		20			22			18			21			24									21			25
Card Services		22			22			20			20			25									22			25
Commercial Banking		18			20			16			17			21									19			19
Treasury & Securities Services		47			36			46			46			58									41			49
Asset Management		53			46			46			39			39									49			38


(a)		Included the after-tax impact of discontinued operations, material litigation reserve charges/recoveries, tax audit benefits and Merger costs. See Corporate for additional details.
(b)		Net income included Income from discontinued operations (after-tax) of $620 million, $65 million and $56 million for the quarters ended December 31, 2006, September 30, 2006, and June 30, 2006, respectively, and $110 million for year-to-date 2006. There was no Income from discontinued operations in 2007.
(c)		Each business segment is allocated capital by taking into consideration stand-alone peer comparisons, economic risk measures and regulatory capital requirements. The amount of capital assigned to each business is referred to as equity.

Page 7


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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Investment Banking Fees	$	1,900		$	1,729		$	1,580		$	1,419		$	1,368			10	%		39	%	$	3,629		$	2,538			43	%
Principal Transactions (a)		2,178			3,126			2,327			2,548			2,157			(30	)		1			5,304			4,637			14
Lending & Deposit Related Fees		93			93			119			127			134			—			(31	)		186			271			(31	)
Asset Management, Administration and Commissions		643			641			569			512			583			—			10			1,284			1,159			11
All Other Income		122			42			91			159			3			190		NM				164			278			(41	)

Noninterest Revenue		4,936			5,631			4,686			4,765			4,245			(12	)		16			10,567			8,883			19
Net Interest Income (a)		862			623			174			51			84			38		NM				1,485			274			442

TOTAL NET REVENUE (b)		5,798			6,254			4,860			4,816			4,329			(7	)		34			12,052			9,157			32


Provision for Credit Losses		164			63			63			7			(62	)		160		NM				227			121			88
Credit Reimbursement from TSS (c)		30			30			31			30			30			—			—			60			60			—

NONINTEREST EXPENSE
Compensation Expense		2,589			2,637			1,880			2,093			1,961			(2	)		32			5,226			4,217			24
Noncompensation Expense		1,265			1,194			1,325			1,151			1,130			6			12			2,459			2,194			12

TOTAL NONINTEREST EXPENSE		3,854			3,831			3,205			3,244			3,091			1			25			7,685			6,411			20


Income Before Income Tax Expense		1,810			2,390			1,623			1,595			1,330			(24	)		36			4,200			2,685			56
Income Tax Expense		631			850			614			619			491			(26	)		29			1,481			996			49

NET INCOME	$	1,179		$	1,540		$	1,009		$	976		$	839			(23	)		41		$	2,719		$	1,689			61


FINANCIAL RATIOS
ROE		23	%		30	%		19	%		18	%		16	%								26	%		17	%
ROA		0.68			0.95			0.62			0.62			0.50									0.81			0.52
Overhead Ratio		66			61			66			67			71									64			70
Compensation Expense as a % of Total Net Revenue (d)		45			42			38			42			44									43			43

REVENUE BY BUSINESS
Investment Banking Fees:
Advisory	$	560		$	472		$	482		$	436		$	352			19			59		$	1,032		$	741			39
Equity Underwriting		509			393			327			275			364			30			40			902			576			57
Debt Underwriting		831			864			771			708			652			(4	)		27			1,695			1,221			39

Total Investment Banking Fees		1,900			1,729			1,580			1,419			1,368			10			39			3,629			2,538			43
Fixed Income Markets		2,445			2,592			2,061			2,468			2,131			(6	)		15			5,037			4,207			20
Equity Markets		1,249			1,539			958			658			580			(19	)		115			2,788			1,842			51
Credit Portfolio		204			394			261			271			250			(48	)		(18	)		598			570			5

Total Net Revenue	$	5,798		$	6,254		$	4,860		$	4,816		$	4,329			(7	)		34		$	12,052		$	9,157			32


REVENUE BY REGION
Americas	$	2,655		$	3,366		$	2,535		$	2,803		$	2,110			(21	)		26		$	6,021		$	4,263			41
Europe/Middle East/Africa		2,327			2,251			1,886			1,714			1,796			3			30			4,578			3,821			20
Asia/Pacific		816			637			439			299			423			28			93			1,453			1,073			35

Total Net Revenue	$	5,798		$	6,254		$	4,860		$	4,816		$	4,329			(7	)		34		$	12,052		$	9,157			32


(a)		The Firm adopted SFAS 157 and SFAS 159 in the first quarter of 2007. For additional information related to their impact to the Investment Bank (“IB”), see IB business segment results in the Firm’s March 31, 2007, Form 10-Q.
(b)		Total net revenue included tax-equivalent adjustments, primarily due to tax-exempt income from municipal bond investments and income tax credits related to affordable housing investments, of $290 million, $152 million, $218 million, $197 million and $193 million for the quarters ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively, and $442 million and $387 million for year-to-date 2007 and 2006, respectively.
(c)		Treasury & Securities Services (“TSS”) was charged a credit reimbursement related to certain exposures managed within IB credit portfolio on behalf of clients shared with TSS.
(d)		For the quarters ended December 31, 2006, September 30, 2006, June 30, 2006, and March 31, 2006, the Compensation expense to Total net revenue ratio was adjusted to present this ratio as if SFAS 123R had always been in effect. IB management believes that adjusting the Compensation expense to Total net revenue ratio for the incremental impact of adopting SFAS 123R provides a more meaningful measure of IB’s Compensation expense to Total net revenue ratio for 2006.

Page 8


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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	696,230		$	658,724		$	645,993		$	626,245		$	672,056			6	%		4	%	$	677,581		$	659,209			3	%
Trading Assets — Debt and Equity Instruments (a)		359,387			335,118			295,317			283,915			268,091			7			34			347,320			260,296			33
Trading Assets — Derivative Receivables		58,520			56,398			59,802			53,184			55,692			4			5			57,465			52,557			9
Loans:
Loans Retained (b)		60,330			59,873			60,947			61,623			59,026			1			2			60,102			56,367			7
Loans Held-for-Sale (a)		13,529			12,784			23,743			24,030			19,920			6			(32	)		13,159			19,568			(33	)

Total Loans		73,859			72,657			84,690			85,653			78,946			2			(6	)		73,261			75,935			(4	)
Adjusted Assets (c)		603,839			572,017			548,628			539,278			530,057			6			14			588,016			511,285			15
Equity		21,000			21,000			21,000			21,000			21,000			—			—			21,000			20,503			2
Headcount		25,356			23,892			23,729			23,447			22,914			6			11			25,356			22,914			11

CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(16	)	$	(6	)	$	10		$	(8	)	$	(12	)		(167	)		(33	)	$	(22	)	$	(33	)		33
Nonperforming Assets:
Nonperforming Loans (d)		72			92			231			420			488			(22	)		(85	)		72			488			(85	)
Other Nonperforming Assets		47			36			38			36			37			31			27			47			37			27
Allowance for Credit Losses:
Allowance for Loan Losses		1,037			1,037			1,052			1,010			1,038			—			—			1,037			1,038			—
Allowance for Lending-Related Commitments		487			310			305			292			249			57			96			487			249			96

Total Allowance for Credit Losses		1,524			1,347			1,357			1,302			1,287			13			18			1,524			1,287			18

Net Charge-off (Recovery) Rate (a) (b)		(0.11	)%		(0.04	)%		0.07	%		(0.05	)%		(0.08	)%								(0.08	)%		(0.12	)%
Allowance for Loan Losses to Average Loans (a) (b)		1.76			1.76			1.73			1.64			1.76									1.76			1.84
Allowance for Loan Losses to Nonperforming Loans (d)		2,206			1,178			461			253			248									2,206			248
Nonperforming Loans to Average Loans		0.10			0.13			0.27			0.49			0.62									0.10			0.64

MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR
Trading Activities:
Fixed Income	$	74		$	45		$	51		$	63		$	52			64			42		$	60		$	56			7
Foreign Exchange		20			19			20			24			25			5			(20	)		19			22			(14	)
Equities		51			42			35			32			24			21			113			46			28			64
Commodities and Other		40			34			35			46			52			18			(23	)		37			50			(26	)
Diversification (e)		(73	)		(58	)		(58	)		(82	)		(74	)		(26	)		1			(65	)		(71	)		8

Total Trading VAR		112			82			83			83			79			37			42			97			85			14

Credit Portfolio VAR (f)		12			13			15			14			14			(8	)		(14	)		12			14			(14	)
Diversification (e)		(14	)		(12	)		(11	)		(8	)		(9	)		(17	)		(56	)		(12	)		(10	)		(20	)

Total Trading and Credit Portfolio VAR	$	110		$	83		$	87		$	89		$	84			33			31		$	97		$	89			9


	June 30, 2007 YTD		Full Year 2006
	Market		Market
MARKET SHARES AND RANKINGS (g)	Share	Rankings	Share	Rankings
Global Debt, Equity and Equity-Related	8%	# 2	7%	# 2
Global Syndicated Loans	15%	# 1	14%	# 1
Global Long-Term Debt	7%	# 2	6%	# 3
Global Equity and Equity-Related	9%	# 1	7%	# 6
Global Announced M&A	27%	# 4	22%	# 4
U.S. Debt, Equity and Equity-Related	10%	# 2	9%	# 2
U.S. Syndicated Loans	28%	# 1	26%	# 1
U.S. Long-Term Debt	12%	# 2	12%	# 2
U.S. Equity and Equity-Related (h)	11%	# 3	8%	# 6
U.S. Announced M&A	30%	# 4	27%	# 4


(a)		Loans held-for-sale were excluded when calculating the allowance coverage ratio and Net charge-off rate. As a result of the adoption of SFAS 159 in the first quarter of 2007, Loans held-for-sale of $11.7 billion were reclassified to Trading Assets.
(b)		Loans retained included credit portfolio loans, leveraged leases, bridge loans for underwriting, other accrual loans and certain loans carried at fair value. Average loans carried at fair value were $1.3 billion and $900 million for the quarters ended June 30, 2007, and March 31, 2007, respectively, and $1.1 billion for year-to-date 2007. Loans carried at fair value were excluded when calculating the allowance coverage ratio and Net charge-off rate.
(c)		Adjusted assets, a non-GAAP financial measure, equals Total assets minus (1) Securities purchased under resale agreements and Securities borrowed less securities sold, not yet purchased; (2) assets of variable interest entities (“VIEs”) consolidated under FIN 46R; (3) cash and securities segregated and on deposit for regulatory and other purposes; and (4) goodwill and intangibles. The amount of adjusted assets is presented to assist the reader in comparing the IB’s asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. The IB believed an adjusted asset amount that excluded the assets discussed above, which were considered to have a low risk profile, provided a more meaningful measure of balance sheet leverage in the securities industry.
(d)		Nonperforming loans included Loans held-for-sale of $25 million, $4 million, $3 million, $21 million and $70 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively, which were excluded from the allowance coverage ratios. Nonperforming loans excluded distressed HFS loans purchased as part of IB’s proprietary activities. During the first quarter of 2007, the Firm elected the fair value option of accounting for this portfolio, which was classified as Trading assets for 2007.
(e)		Average VARs were less than the sum of the VARs of their market risk components, which was due to risk offsets resulting from portfolio diversification. The diversification effect reflected the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is usually less than the sum of the risks of the positions themselves.
(f)		Included VAR on derivative credit and debit valuation adjustments, hedges of the credit valuation adjustment and mark-to-market hedges of the retained loan portfolio, which were all reported in Principal Transactions. The VAR did not include the retained loan portfolio.
(g)		Source: Thomson Financial Securities data. Global announced M&A was based on rank value; all other rankings were based upon proceeds, with full credit to each book manager/equal if joint. Because of joint assignments, market share of all participants will add up to more than 100%.
(h)		References U.S. domiciled equity and equity-related transactions, per Thomson Financial.

Page 9


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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	470		$	423		$	430		$	406		$	390			11	%		21	%	$	893		$	761			17	%
Asset Management, Administration and Commissions		344			263			293			326			366			31			(6	)		607			803			(24	)
Securities Gains (Losses)		—			—			(5	)		(7	)		(39	)		—		NM				—			(45	)	NM
Mortgage Fees and Related Income (a)		495			482			111			67			204			3			143			977			440			122
Credit Card Income		163			142			143			136			129			15			26			305			244			25
All Other Income		212			179			176			170			163			18			30			391			211			85

Noninterest Revenue		1,684			1,489			1,148			1,098			1,213			13			39			3,173			2,414			31
Net Interest Income		2,673			2,617			2,580			2,457			2,566			2			4			5,290			5,128			3

TOTAL NET REVENUE		4,357			4,106			3,728			3,555			3,779			6			15			8,463			7,542			12


Provision for Credit Losses		587			292			262			114			100			101			487			879			185			375

NONINTEREST EXPENSE
Compensation Expense (a)		1,104			1,065			950			886			901			4			23			2,169			1,821			19
Noncompensation Expense (a)		1,264			1,224			1,211			1,142			1,246			3			1			2,488			2,453			1
Amortization of Intangibles		116			118			130			111			112			(2	)		4			234			223			5

TOTAL NONINTEREST EXPENSE		2,484			2,407			2,291			2,139			2,259			3			10			4,891			4,497			9


Income Before Income Tax Expense		1,286			1,407			1,175			1,302			1,420			(9	)		(9	)		2,693			2,860			(6	)
Income Tax Expense		501			548			457			556			552			(9	)		(9	)		1,049			1,111			(6	)

NET INCOME	$	785		$	859		$	718		$	746		$	868			(9	)		(10	)	$	1,644		$	1,749			(6	)


FINANCIAL RATIOS
ROE		20	%		22	%		18	%		21	%		24	%								21	%		25	%
Overhead Ratio (a)		57			59			61			60			60									58			60
Overhead Ratio Excluding Core Deposit Intangibles (a) (b)		54			56			58			57			57									55			57

SELECTED BALANCE SHEETS (Ending)
Assets	$	217,421		$	212,997		$	237,887		$	227,056		$	233,748			2			(7	)	$	217,421		$	233,748			(7	)
Loans (c) (d)		190,493			188,468			213,504			205,554			203,928			1			(7	)		190,493			203,928			(7	)
Deposits		217,689			221,840			214,081			198,260			198,273			(2	)		10			217,689			198,273			10

SELECTED BALANCE SHEETS (Average)
Assets	$	216,692		$	217,135		$	235,301		$	225,307		$	234,097			—			(7	)	$	216,912		$	232,849			(7	)
Loans (c) (d)		190,302			190,979			211,654			203,307			201,635			—			(6	)		190,638			200,224			(5	)
Deposits		219,171			216,933			211,915			198,967			199,075			1			10			218,058			196,741			11
Equity		16,000			16,000			16,000			14,300			14,300			—			12			16,000			14,099			13

Headcount		68,254			67,247			65,570			61,915			62,450			1			9			68,254			62,450			9

CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	270		$	185		$	214		$	128		$	113			46			139		$	455		$	234			94
Nonperforming Loans (e)		1,760			1,655			1,677			1,404			1,339			6			31			1,760			1,339			31
Nonperforming Assets		2,099			1,910			1,902			1,595			1,520			10			38			2,099			1,520			38
Allowance for Loan Losses		1,772			1,453			1,392			1,306			1,321			22			34			1,772			1,321			34

Net Charge-off Rate (f)		0.66	%		0.46	%		0.45	%		0.27	%		0.24	%								0.56	%		0.25	%
Allowance for Loan Losses to Ending Loans (f)		1.06			0.89			0.77			0.69			0.69									1.06			0.69
Allowance for Loan Losses to Nonperforming Loans (f)		115			94			89			95			99									115			99
Nonperforming Loans to Total Loans		0.92			0.88			0.79			0.68			0.66									0.92			0.66


(a)		The Firm adopted SFAS 159 in the first quarter of 2007. As a result, certain loan origination costs have been classified as expense (previously netted against revenue) for the current-year quarters and six months ended June 30, 2007.
(b)		Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excluded Regional Banking’s core deposit intangible amortization expense related to the Bank of New York transaction and the Merger of $115 million, $116 million, $130 million, $109 million and $110 million for the quarters ending June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, and $231 million and $219 million for year-to-date 2007 and 2006, respectively.
(c)		Loans included prime mortgage loans originated with the intent to sell, which, effective January 1, 2007, were accounted for at fair value under SFAS 159. These loans, classified as Trading assets on the Consolidated balance sheets, totaled $15.2 billion and $11.6 billion at June 30, 2007 and March 31, 2007, respectively. Average loans included $13.5 billion and $6.5 billion of these loans for the quarters ended June 30, 2007 and March 31, 2007, respectively, and $10.0 billion for the six months ended June 30, 2007.
(d)		End-of-period Loans included Loans held-for-sale of $8.3 billion, $13.4 billion, $32.7 billion, $17.0 billion and $11.8 billion at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. Average Loans included Loans held-for-sale of $11.7 billion, $21.7 billion, $21.2 billion, $14.0 billion and $12.9 billion for the quarters ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively, and $16.7 billion and $14.6 billion for year-to-date 2007 and 2006, respectively.
(e)		Nonperforming loans included Loans held-for-sale and loans accounted for at fair value under SFAS 159 of $217 million (of which $2 million were classified as Trading assets on the Consolidated balance sheet), $112 million, $116 million, $24 million and $9 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively.
(f)		Loans held-for-sale and Loans accounted for at fair value under SFAS 159 were excluded when calculating the allowance coverage ratio and the Net charge-off rate.

Page 10


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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
REGIONAL BANKING
Noninterest Revenue	$	977		$	793		$	678		$	855		$	851			23	%		15	%	$	1,770		$	1,671			6	%
Net Interest Income		2,296			2,299			2,229			2,107			2,212			—			4			4,595			4,432			4

Total Net Revenue		3,273			3,092			2,907			2,962			3,063			6			7			6,365			6,103			4
Provision for Credit Losses		494			233			165			53			70			112		NM				727			136			435
Noninterest Expense		1,749			1,729			1,730			1,611			1,746			1			—			3,478			3,484			—
Income Before Income Tax Expense		1,030			1,130			1,012			1,298			1,247			(9	)		(17	)		2,160			2,483			(13	)
Net Income		629			690			619			744			764			(9	)		(18	)		1,319			1,521			(13	)

ROE		21	%		24	%		21	%		29	%		30	%								23	%		31	%
Overhead Ratio		53			56			60			54			57									55			57
Overhead Ratio Excluding Core Deposit Intangibles (a)		50			52			55			51			53									51			53

BUSINESS METRICS (in billions)
Home Equity Origination Volume	$	14.6		$	12.7		$	12.9		$	13.3		$	14.0			15			4		$	27.3		$	25.7			6
End of Period Loans Owned:
Home Equity	$	91.0		$	87.7		$	85.7		$	80.4		$	77.8			4			17		$	91.0		$	77.8			17
Mortgage (b)		8.8			9.2			30.1			46.6			48.6			(4	)		(82	)		8.8			48.6			(82	)
Business Banking		14.6			14.3			14.1			13.1			13.0			2			12			14.6			13.0			12
Education		10.2			11.1			10.3			9.4			8.3			(8	)		23			10.2			8.3			23
Other Loans (c)		2.5			2.7			2.7			2.2			2.6			(7	)		(4	)		2.5			2.6			(4	)

Total End of Period Loans		127.1			125.0			142.9			151.7			150.3			2			(15	)		127.1			150.3			(15	)
End of Period Deposits:
Checking	$	67.3		$	69.3		$	68.7		$	59.8		$	62.3			(3	)		8		$	67.3		$	62.3			8
Savings		97.7			100.1			92.4			86.9			89.1			(2	)		10			97.7			89.1			10
Time and Other		41.9			42.2			43.3			41.5			36.5			(1	)		15			41.9			36.5			15

Total End of Period Deposits		206.9			211.6			204.4			188.2			187.9			(2	)		10			206.9			187.9			10
Average Loans Owned:
Home Equity	$	89.2		$	86.3		$	84.2		$	78.8		$	76.2			3			17		$	87.8		$	75.2			17
Mortgage Loans (b)		8.8			8.9			40.8			47.8			47.1			(1	)		(81	)		8.8			45.9			(81	)
Business Banking		14.5			14.3			14.0			13.0			13.0			1			12			14.4			12.8			13
Education		10.5			11.0			9.9			8.9			8.7			(5	)		21			10.8			7.1			52
Other Loans (c)		2.4			3.0			2.7			2.2			2.6			(20	)		(8	)		2.7			2.8			(4	)

Total Average Loans (d)		125.4			123.5			151.6			150.7			147.6			2			(15	)		124.5			143.8			(13	)
Average Deposits:
Checking	$	67.2		$	67.3		$	65.5		$	60.3		$	62.6			—			7		$	67.3		$	62.8			7
Savings		98.4			96.7			92.2			88.1			89.8			2			10			97.6			89.6			9
Time and Other		41.7			42.5			43.0			39.0			35.4			(2	)		18			42.1			33.9			24

Total Average Deposits		207.3			206.5			200.7			187.4			187.8			—			10			207.0			186.3			11
Average Assets		137.7			135.9			162.5			159.1			164.6			1			(16	)		136.8			160.9			(15	)
Average Equity		11.8			11.8			11.9			10.2			10.2			—			16			11.8			10.0			18

Page 11


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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
REGIONAL BANKING (continued)
CREDIT DATA AND QUALITY STATISTICS
30+ Day Delinquency Rate (e) (f)		1.88	%		1.84	%		2.02	%		1.57	%		1.48	%								1.88	%		1.48	%
Net Charge-offs
Home Equity	$	98		$	68		$	51		$	29		$	30			44	%		227	%	$	166		$	63			163	%
Mortgage		26			20			21			14			9			30			189			46			21			119
Business Banking		30			25			38			19			16			20			88			55			34			62
Other Loans		52			13			27			1			13			300			300			65			20			225

Total Net Charge-offs		206			126			137			63			68			63			203			332			138			141
Net Charge-off Rate
Home Equity		0.44	%		0.32	%		0.24	%		0.15	%		0.16	%								0.38	%		0.17	%
Mortgage		1.19			0.91			0.20			0.12			0.08									1.05			0.09
Business Banking		0.83			0.71			1.08			0.58			0.49									0.77			0.54
Other Loans (d)		2.32			0.55			1.15			0.05			0.55									1.39			0.55
Total Net Charge-off Rate (d)		0.68			0.43			0.37			0.17			0.19									0.56			0.20

Nonperforming Assets (g) (h) (i)	$	1,968		$	1,770		$	1,725		$	1,421		$	1,349			11			46		$	1,968		$	1,349			46

RETAIL BRANCH BUSINESS METRICS
Investment Sales Volume	$	5,117		$	4,783		$	4,101		$	3,536		$	3,692			7			39		$	9,900		$	7,245			37

Number of:
Branches		3,089			3,071			3,079			2,677			2,660			18	#		429	#		3,089			2,660			429	#
ATMs		8,649			8,560			8,506			7,825			7,753			89			896			8,649			7,753			896
Personal Bankers (j)		9,025			7,846			7,573			7,484			7,260			1,179			1,765			9,025			7,260			1,765
Sales Specialists (j)		3,915			3,712			3,614			3,471			3,376			203			539			3,915			3,376			539
Active Online Customers (in thousands) (k)		5,448			5,295			4,909			4,717			4,469			153			979			5,448			4,469			979
Checking Accounts (in thousands)		10,356			10,158			9,995			9,270			9,072			198			1,284			10,356			9,072			1,284

MORTGAGE BANKING
Production Revenue (l)	$	463		$	400		$	215		$	197		$	202			16	%		129	%	$	863		$	421			105	%
Net Mortgage Servicing Revenue:
Loan Servicing Revenue		615			601			598			579			563			2			9			1,216			1,123			8
Changes in MSR Asset Fair Value:
Due to Inputs or Assumptions in Model (m)		952			108			38			(1,075	)		491		NM				94			1,060			1,202			(12	)
Other Changes in Fair Value (n)		(383	)		(378	)		(372	)		(327	)		(392	)		(1	)		2			(761	)		(741	)		(3	)

Total Changes in MSR Asset Fair Value		569			(270	)		(334	)		(1,402	)		99		NM				475			299			461			(35	)
Derivative Valuation Adjustments and Other		(1,014	)		(127	)		(69	)		824			(546	)	NM				(86	)		(1,141	)		(1,299	)		12

Total Net Mortgage Servicing Revenue		170			204			195			1			116			(17	)		47			374			285			31

Total Net Revenue		633			604			410			198			318			5			99			1,237			706			75
Noninterest Expense (l)		516			468			354			334			329			10			57			984			653			51
Income (Loss) Before Income Tax Expense		117			136			56			(136	)		(11	)		(14	)	NM				253			53			377
Net Income (Loss)		71			84			34			(83	)		(7	)		(15	)	NM				155			32			384

ROE		14	%		17	%		8	%	NM			NM										16	%		4	%

Business Metrics (in billions)
Third Party Mortgage Loans Serviced (Ending)	$	572.4		$	546.1		$	526.7		$	510.7		$	497.4			5			15		$	572.4		$	497.4			15
MSR Net Carrying Value (Ending)		9.5			7.9			7.5			7.4			8.2			20			16			9.5			8.2			16
Avg Mortgage Loans Held-for-Sale (o)		21.3			23.8			17.9			10.5			9.8			(11	)		117			22.6			11.4			98
Average Assets		35.6			38.0			29.8			22.4			23.9			(6	)		49			36.8			25.5			44
Average Equity		2.0			2.0			1.7			1.7			1.7			—			18			2.0			1.7			18

Mortgage Origination Volume by Channel (in billions)
Retail	$	13.6		$	10.9		$	10.5		$	10.1		$	10.8			25			26		$	24.5		$	19.9			23
Wholesale		12.8			9.9			9.0			7.7			8.7			29			47			22.7			16.1			41
Correspondent		6.4			4.8			3.5			2.7			3.4			33			88			11.2			7.1			58
CNT (Including Negotiated Transactions)		11.3			10.5			9.5			8.5			8.3			8			36			21.8			17.3			26

Total (p)		44.1			36.1			32.5			29.0			31.2			22			41			80.2			60.4			33

AUTO FINANCE
Noninterest Revenue	$	138		$	131		$	124		$	110		$	90			5			53		$	269		$	134			101
Net Interest Income		312			279			287			285			308			12			1			591			599			(1	)

Total Net Revenue		450			410			411			395			398			10			13			860			733			17
Provision for Credit Losses		92			59			97			61			30			56			207			151			49			208
Noninterest Expense		219			210			207			194			184			4			19			429			360			19
Income Before Income Tax Expense		139			141			107			140			184			(1	)		(24	)		280			324			(14	)
Net Income		85			85			65			85			111			—			(23	)		170			196			(13	)

ROE		15	%		16	%		11	%		14	%		19	%								16	%		16	%
ROA		0.79			0.80			0.60			0.77			0.98									0.79			0.85

Page 12


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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
AUTO FINANCE (continued)

Business Metrics (in billions)
Auto Origination Volume	$	5.3		$	5.2		$	5.0		$	5.5		$	4.5			2	%		18	%	$	10.5		$	8.8			19	%
End-of-Period Loans and Lease Related Assets
Loans Outstanding	$	40.4		$	39.7		$	39.3		$	38.1		$	39.4			2			3		$	40.4		$	39.4			3
Lease Financing Receivables		0.8			1.2			1.7			2.2			2.8			(33	)		(71	)		0.8			2.8			(71	)
Operating Lease Assets		1.8			1.7			1.6			1.5			1.3			6			38			1.8			1.3			38

Total End-of-Period Loans and Lease Related Assets		43.0			42.6			42.6			41.8			43.5			1			(1	)		43.0			43.5			(1	)
Average Loans and Lease Related Assets
Loans Outstanding (q)	$	40.1		$	39.4		$	38.7		$	38.9		$	40.3			2			—		$	39.8		$	40.7			(2	)
Lease Financing Receivables		1.0			1.5			1.9			2.5			3.2			(33	)		(69	)		1.2			3.6			(67	)
Operating Lease Assets		1.7			1.6			1.5			1.4			1.2			6			42			1.7			1.1			55

Total Average Loans and Lease Related Assets		42.8			42.5			42.1			42.8			44.7			1			(4	)		42.7			45.4			(6	)
Average Assets		43.4			43.2			43.1			43.8			45.6			—			(5	)		43.3			46.4			(7	)
Average Equity		2.2			2.2			2.4			2.4			2.4			—			(8	)		2.2			2.4			(8	)

Credit Quality Statistics
30+ Day Delinquency Rate		1.43	%		1.33	%		1.72	%		1.61	%		1.37	%								1.43	%		1.37	%
Net Charge-offs
Loans	$	62		$	58		$	76		$	63		$	44			7			41		$	120		$	92			30
Lease Receivables		1			1			1			2			1			—			—			2			4			(50	)

Total Net Charge-offs		63			59			77			65			45			7			40			122			96			27
Net Charge-off Rate
Loans (q)		0.62	%		0.60	%		0.78	%		0.66	%		0.45	%								0.61	%		0.46	%
Lease Receivables		0.40			0.27			0.21			0.32			0.13									0.34			0.22
Total Net Charge-off Rate (q)		0.61			0.59			0.75			0.64			0.43									0.60			0.44
Nonperforming Assets	$	131		$	140		$	177		$	174		$	171			(6	)		(23	)	$	131		$	171			(23	)


(a)		Regional Banking uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this inclusion would result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excluded Regional Banking’s core deposit intangible amortization expense related to The Bank of New York transaction and the Merger of $115 million, $116 million, $130 million, $109 million and $110 million for the quarters ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, and $231 million and $219 million for year-to-date 2007 and 2006, respectively.
(b)		As of January 1, 2007, $19.4 billion of held-for-investment prime mortgage loans were transferred from Retail Financial Services (“RFS”) to Treasury within the Corporate segment for risk management and reporting purposes. Although the loans, together with the responsibility for the investment management of the portfolio, were transferred to Treasury, the transfer had no impact on the financial results of Regional Banking. Balances reported for current-year quarter ends primarily reflected subprime mortgage loans owned.
(c)		Included commercial loans derived from community development activities and, prior to July 1, 2006, insurance policy loans.
(d)		Average loans included Loans held-for-sale of $3.9 billion, $4.4 billion, $3.3 billion, $2.5 billion and $1.9 billion for the quarters ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively, and $4.1 billion and $2.6 billion for year-to-date 2007 and 2006, respectively. These amounts were excluded when calculating the Net charge-off rate.
(e)		Excluded delinquencies related to loans eligible for repurchase as well as loans repurchased from Governmental National Mortgage Association (“GNMA”) pools that are insured by government agencies and government-sponsored enterprises of $879 million, $975 million, $960 million, $880 million and $828 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(f)		Excluded loans that are 30 days past due and still accruing, which are insured by government agencies under the Federal Family Education Loan Program of $523 million, $519 million, $464 million, $462 million and $416 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(g)		Excluded loans that are 90 days past due and still accruing, which are insured by government agencies under the Federal Family Education Loan Program of $200 million, $178 million, $219 million, $189 million and $163 million for the quarters ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(h)		Excluded Nonperforming assets related to loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by government agencies and government-sponsored enterprises of $1.2 billion, $1.3 billion, $1.2 billion, $1.1 billion and $1.1 billion at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. These amounts are excluded as reimbursement is proceeding normally.
(i)		Included Nonperforming Loans held-for-sale related to mortgage banking activities of $215 million, $79 million, $11 million, $3 million and $9 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively.
(j)		Employees acquired as part of The Bank of New York transaction are included beginning with the second quarter of 2007. This transaction was completed on October 1, 2006, however the mapping of the acquired employee base had not been completed and therefore not included in the previous quarters since closing the transaction.
(k)		During the quarter ended June 30, 2007, RFS changed the methodology for determining active online customers to include all individual RFS customers with one or more online accounts that has been active within 90 days of quarter end, including customers who also have online accounts with Card Services. Prior periods have been restated to conform to this new methodology.
(l)		The Firm adopted SFAS 159 in the first quarter of 2007. As a result, certain loan origination costs have been classified as expense (previously netted against revenue) for the current-year quarters and six months ended June 30, 2007.
(m)		Represents MSR asset fair value adjustments due to changes in inputs, such as interest rates and volatility, as well as updates to assumptions used in the valuation model.
(n)		Included changes in the MSR value due to modeled servicing portfolio runoff (or time decay).
(o)		Included $13.5 billion and $6.5 billion of prime mortgage loans accounted for at fair value option for the quarters ended June 30, 2007, and March 31, 2007, respectively, and $10.0 billion for year-to-date 2007. These loans are classified as Trading Assets on the Consolidated balance sheets for quarters ending on or after March 31, 2007.
(p)		During the second quarter of 2007, RFS changed its definition of mortgage originations to include all newly originated mortgage loans sourced through RFS channels, and to exclude all mortgage loan originations sourced through the IB’s channels. Prior periods have been restated to conform to this new definition.
(q)		Average loans included Loans held-for-sale of $943 million, and $1.2 billion for the quarters ended September 30, 2006, and June 30, 2006, respectively. Average Loans held-for-sale for the quarters ended June 30, 2007, March 31, 2007, and December 31, 2006, and year-to-date 2007 were insignificant. The year-to-date average Loans held-for-sale were $589 million for 2006. These amounts are excluded when calculating the Net charge-off rate.

Page 13

CARD SERVICES — MANAGED BASIS


JPMORGAN CHASE & CO. CARD SERVICES — MANAGED BASIS

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


	QUARTERLY TRENDS																					YEAR-TO-DATE
													2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Credit Card Income	$	682		$	599		$	697		$	636		$	653			14	%		4	%	$	1,281		$	1,254			2	%
All Other Income		80			92			111			126			49			(13	)		63			172			120			43

Noninterest Revenue		762			691			808			762			702			10			9			1,453			1,374			6
Net Interest Income		2,955			2,989			2,942			2,884			2,962			(1	)		—			5,944			5,975			(1	)

TOTAL NET REVENUE		3,717			3,680			3,750			3,646			3,664			1			1			7,397			7,349			1


Provision for Credit Losses (a)		1,331			1,229			1,281			1,270			1,031			8			29			2,560			2,047			25

NONINTEREST EXPENSE
Compensation Expense		251			254			242			251			251			(1	)		—			505			510			(1	)
Noncompensation Expense		753			803			915			823			810			(6	)		(7	)		1,556			1,606			(3	)
Amortization of Intangibles		184			184			184			179			188			—			(2	)		368			376			(2	)

TOTAL NONINTEREST EXPENSE		1,188			1,241			1,341			1,253			1,249			(4	)		(5	)		2,429			2,492			(3	)

Income Before Income Tax Expense		1,198			1,210			1,128			1,123			1,384			(1	)		(13	)		2,408			2,810			(14	)
Income Tax Expense		439			445			409			412			509			(1	)		(14	)		884			1,034			(15	)

NET INCOME	$	759		$	765		$	719		$	711		$	875			(1	)		(13	)	$	1,524		$	1,776			(14	)


Memo: Net Securitization Gains (Amortization)	$	16		$	23		$	32		$	48		$	(6	)		(30	)		NM		$	39		$	2			NM


FINANCIAL METRICS
ROE		22	%		22	%		20	%		20	%		25	%								22	%		25	%
Overhead Ratio		32			34			36			34			34									33			34
% of Average Managed Outstandings:
Net Interest Income		8.04			8.11			7.92			8.07			8.66									8.08			8.76
Provision for Credit Losses		3.62			3.34			3.45			3.56			3.01									3.48			3.00
Noninterest Revenue		2.07			1.88			2.17			2.13			2.05									1.97			2.01
Risk Adjusted Margin (b)		6.49			6.65			6.65			6.65			7.70									6.57			7.77
Noninterest Expense		3.23			3.37			3.61			3.51			3.65									3.30			3.65
Pretax Income (ROO)		3.26			3.28			3.04			3.14			4.05									3.27			4.12
Net Income		2.06			2.08			1.94			1.99			2.56									2.07			2.60

BUSINESS METRICS
Charge Volume (in billions)	$	88.0		$	81.3		$	93.4		$	87.5		$	84.4			8			4		$	169.3		$	158.7			7
Net Accounts Opened (in thousands) (c)		3,706			3,439			14,392			4,186			24,573			8			(85	)		7,145			27,291			(74	)
Credit Cards Issued (in thousands)		150,883			152,097			154,424			139,513			136,685			(1	)		10			150,883			136,685			10
Number of Registered Internet Customers (in millions)		24.6			24.3			22.5			20.4			19.1			1			29			24.6			19.1			29

Merchant Acquiring Business (d) Bank Card Volume (in billions)	$	179.7		$	163.6		$	177.9		$	168.7		$	166.3			10			8		$	343.3		$	314.0			9
Total Transactions (in millions)		4,811			4,465			4,968			4,597			4,476			8			7			9,276			8,606			8


(a)		Second quarter of 2006 included a $90 million release of a $100 million special provision, originally recorded in the third quarter of 2005, related to Hurricane Katrina.
(b)		Represents Total Net Revenue less Provision for Credit Losses.
(c)		Fourth quarter of 2006 included approximately 9 million accounts from the acquisition of the BP and Pier 1 Imports, Inc. private label portfolios. Second quarter of 2006 included approximately 21 million accounts from the acquisition of the Kohl’s private label portfolio.
(d)		Represents 100% of the merchant acquiring business.

Page 14


JPMORGAN CHASE & CO. CARD SERVICES — MANAGED BASIS

FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheets	$	80,495		$	78,173		$	85,881		$	78,587		$	72,961			3	%		10	%	$	80,495		$	72,961			10	%
Securitized Loans		67,506			68,403			66,950			65,245			66,349			(1	)		2			67,506			66,349			2

Managed Loans	$	148,001		$	146,576		$	152,831		$	143,832		$	139,310			1			6		$	148,001		$	139,310			6

SELECTED AVERAGE BALANCES
Managed Assets	$	154,406		$	156,271		$	153,973		$	148,272		$	144,284			(1	)		7		$	155,333		$	145,134			7
Loans:
Loans on Balance Sheets	$	79,000		$	81,932		$	81,489		$	76,655		$	68,185			(4	)		16		$	80,458		$	68,319			18
Securitized Loans		68,428			67,485			65,898			65,061			69,005			1			(1	)		67,959			69,287			(2	)

Managed Loans	$	147,428		$	149,417		$	147,387		$	141,716		$	137,190			(1	)		7		$	148,417		$	137,606			8


Equity	$	14,100		$	14,100		$	14,100		$	14,100		$	14,100			—			—		$	14,100		$	14,100			—

Headcount		18,913			18,749			18,639			18,696			18,753			1			1			18,913			18,753			1

MANAGED CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,331		$	1,314		$	1,281		$	1,280		$	1,121			1			19		$	2,645		$	2,137			24
Net Charge-off Rate		3.62	%		3.57	%		3.45	%		3.58	%		3.28	%								3.59	%		3.13	%

Managed delinquency ratios
30+ days		3.00	%		3.07	%		3.13	%		3.17	%		3.14	%								3.00	%		3.14	%
90+ days		1.42			1.52			1.50			1.48			1.52									1.42			1.52

Allowance for Loan Losses	$	3,096		$	3,092		$	3,176		$	3,176		$	3,186			—			(3	)	$	3,096		$	3,186			(3	)
Allowance for Loan Losses to Period-end Loans		3.85	%		3.96	%		3.70	%		4.04	%		4.37	%								3.85	%		4.37	%

Page 15


JPMORGAN CHASE & CO. CARD RECONCILIATION OF REPORTED AND MANAGED DATA

(in millions)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Basis for the Period	$	1,470		$	1,345		$	1,423		$	1,357		$	1,590			9	%		(8	)%	$	2,815		$	3,316			(15	)%
Securitization Adjustments		(788	)		(746	)		(726	)		(721	)		(937	)		(6	)		16			(1,534	)		(2,062	)		26

Managed Credit Card Income	$	682		$	599		$	697		$	636		$	653			14			4		$	1,281		$	1,254			2


Net Interest Income
Reported Basis for the Period	$	1,577		$	1,650		$	1,623		$	1,556		$	1,464			(4	)		8		$	3,227		$	2,903			11
Securitization Adjustments		1,378			1,339			1,319			1,328			1,498			3			(8	)		2,717			3,072			(12	)

Managed Net Interest Income	$	2,955		$	2,989		$	2,942		$	2,884		$	2,962			(1	)		—		$	5,944		$	5,975			(1	)


Total Net Revenue
Reported Basis for the Period	$	3,127		$	3,087		$	3,157		$	3,039		$	3,103			1			1		$	6,214		$	6,339			(2	)
Securitization Adjustments		590			593			593			607			561			(1	)		5			1,183			1,010			17

Managed Total Net Revenue	$	3,717		$	3,680		$	3,750		$	3,646		$	3,664			1			1		$	7,397		$	7,349			1


Provision for Credit Losses
Reported Basis for the Period (b)	$	741		$	636		$	688		$	663		$	470			17			58		$	1,377		$	1,037			33
Securitization Adjustments		590			593			593			607			561			(1	)		5			1,183			1,010			17

Managed Provision for Credit Losses (b)	$	1,331		$	1,229		$	1,281		$	1,270		$	1,031			8			29		$	2,560		$	2,047			25


BALANCE SHEETS — AVERAGE BALANCES (a)
Total Average Assets
Reported Basis for the Period	$	88,486		$	91,157		$	90,283		$	85,301		$	77,371			(3	)		14		$	89,814		$	77,901			15
Securitization Adjustments		65,920			65,114			63,690			62,971			66,913			1			(1	)		65,519			67,233			(3	)

Managed Average Assets	$	154,406		$	156,271		$	153,973		$	148,272		$	144,284			(1	)		7		$	155,333		$	145,134			7


CREDIT QUALITY STATISTICS (a)
Net Charge-offs
Reported Net Charge-offs Data for the Period	$	741		$	721		$	688		$	673		$	560			3			32		$	1,462		$	1,127			30
Securitization Adjustments		590			593			593			607			561			(1	)		5			1,183			1,010			17

Managed Net Charge-offs	$	1,331		$	1,314		$	1,281		$	1,280		$	1,121			1			19		$	2,645		$	2,137			24


(a)		JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance and overall performance of the 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 receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed receivables, JPMorgan Chase treated 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. Managed results excluded the impact of credit card securitizations on Total Net Revenue, the Provision for Credit Losses, Net Charge-Offs and Loan Receivables. Securitization did not change reported Net income versus managed earnings; however, it did affect the classification of items on the Consolidated Statements of Income and Consolidated Balance Sheets.
(b)		Second quarter of 2006 included a $90 million release of a $100 million special provision, originally recorded in the third quarter of 2005, related to Hurricane Katrina.

Page 16

COMMERCIAL BANKING


JPMORGAN CHASE & CO. COMMERCIAL BANKING

FINANCIAL HIGHLIGHTS
(in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	158		$	158		$	155		$	145		$	147			—	%		7	%	$	316		$	289			9	%
Asset Management, Administration and Commissions		21			23			20			16			16			(9	)		31			44			31			42
All Other Income (a)		133			154			135			95			111			(14	)		20			287			187			53

Noninterest Revenue		312			335			310			256			274			(7	)		14			647			507			28
Net Interest Income		695			668			708			677			675			4			3			1,363			1,342			2

TOTAL NET REVENUE		1,007			1,003			1,018			933			949			—			6			2,010			1,849			9


Provision for Credit Losses		45			17			111			54			(12	)		165			NM			62			(5	)		NM

NONINTEREST EXPENSE
Compensation Expense		182			180			174			190			179			1			2			362			376			(4	)
Noncompensation Expense		300			290			296			296			302			3			(1	)		590			587			1
Amortization of Intangibles		14			15			15			14			15			(7	)		(7	)		29			31			(6	)

TOTAL NONINTEREST EXPENSE		496			485			485			500			496			2			—			981			994			(1	)


Income Before Income Tax Expense		466			501			422			379			465			(7	)		—			967			860			12
Income Tax Expense		182			197			166			148			182			(8	)		—			379			337			12

NET INCOME	$	284		$	304		$	256		$	231		$	283			(7	)		—		$	588		$	523			12


MEMO:
Revenue by Product:
Lending	$	348		$	348		$	359		$	335		$	331			—			5		$	696		$	650			7
Treasury Services		569			556			576			551			566			2			1			1,125			1,116			1
Investment Banking		82			76			87			60			66			8			24			158			106			49
Other		8			23			(4	)		(13	)		(14	)		(65	)		NM			31			(23	)		NM

Total Commercial Banking Revenue	$	1,007		$	1,003		$	1,018		$	933		$	949			—			6		$	2,010		$	1,849			9

IB Revenues, Gross (b)	$	236		$	231		$	246		$	170		$	186			2			27		$	467		$	300			56

Revenue by Business:
Middle Market Banking	$	653		$	661		$	661		$	617		$	634			(1	)		3		$	1,314		$	1,257			5
Mid-Corporate Banking		197			212			198			160			161			(7	)		22			409			298			37
Real Estate Banking		109			102			120			119			114			7			(4	)		211			219			(4	)
Other		48			28			39			37			40			71			20			76			75			1

Total Commercial Banking Revenue	$	1,007		$	1,003		$	1,018		$	933		$	949			—			6		$	2,010		$	1,849			9


FINANCIAL RATIOS
ROE		18	%		20	%		16	%		17	%		21	%								19	%		19	%
Overhead Ratio		49			48			48			54			52									49			54


(a)		IB-related and commercial card revenues are included in All Other Income.
(b)		Represents the total revenue related to investment banking products sold to Commercial Banking (“CB”) clients.

Page 17


JPMORGAN CHASE & CO. COMMERCIAL BANKING

FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	84,687		$	82,545		$	62,227		$	57,378		$	56,561			3	%		50	%	$	83,622		$	55,671			50	%
Loans and Leases (a)		59,812			57,660			57,657			53,404			52,413			4			14			58,742			51,629			14
Liability Balances (b)		84,187			81,752			79,050			72,009			72,556			3			16			82,976			71,664			16
Equity		6,300			6,300			6,300			5,500			5,500			—			15			6,300			5,500			15

MEMO:
Loans by Business:
Middle Market Banking	$	37,099		$	36,317		$	35,618		$	32,890		$	32,492			2			14		$	36,710		$	32,178			14
Mid-Corporate Banking		11,692			10,669			9,898			8,756			8,269			10			41			11,183			7,925			41
Real Estate Banking		6,894			7,074			7,745			7,564			7,515			(3	)		(8	)		6,984			7,476			(7	)
Other		4,127			3,600			4,396			4,194			4,137			15			—			3,865			4,050			(5	)

Total Commercial Banking Loans	$	59,812		$	57,660		$	57,657		$	53,404		$	52,413			4			14		$	58,742		$	51,629			14


Headcount		4,295			4,281			4,459			4,447			4,320			—			(1	)		4,295			4,320			(1	)

CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(8	)	$	(1	)	$	16		$	21		$	(3	)		NM			(167	)	$	(9	)	$	(10	)		10
Nonperforming Loans		135			141			121			157			225			(4	)		(40	)		135			225			(40	)
Allowance for Credit Losses:
Allowance for Loan Losses		1,551			1,531			1,519			1,431			1,394			1			11			1,551			1,394			11
Allowance for Lending-Related Commitments		222			187			187			156			157			19			41			222			157			41

Total Allowance for Credit Losses		1,773			1,718			1,706			1,587			1,551			3			14			1,773			1,551			14

Net Charge-off (Recovery) Rate (a)		(0.05)	%		(0.01)	%		0.11	%		0.16	%		(0.02)	%								(0.03)	%		(0.04)	%
Allowance for Loan Losses to Average Loans (a)		2.63			2.68			2.67			2.70			2.68									2.67			2.72
Allowance for Loan Losses to Nonperforming Loans		1,149			1,086			1,255			911			620									1,149			620
Nonperforming Loans to Average Loans		0.23			0.24			0.21			0.29			0.43									0.23			0.44


(a)		Average loans included Loans held-for-sale of $741 million, $475 million, $804 million, $359 million and $334 million for the quarters ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively, and $609 million and $301 million for year-to-date 2007 and 2006, respectively. These amounts are excluded when calculating the Net charge-off (recovery) rate and the allowance coverage ratio.
(b)		Liability balances included deposits and deposits that are swept to on-balance sheet liabilities.

Page 18

TREASURY & SECURITIES SERVICES


JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES

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


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	219		$	213		$	186		$	183		$	184			3	%		19	%	$	432		$	366			18	%
Asset Management, Administration and Commissions		828			686			717			642			683			21			21			1,514			1,333			14
All Other Income		184			125			133			155			178			47			3			309			324			(5	)

Noninterest Revenue		1,231			1,024			1,036			980			1,045			20			18			2,255			2,023			11
Net Interest Income		510			502			501			519			543			2			(6	)		1,012			1,050			(4	)

TOTAL NET REVENUE		1,741			1,526			1,537			1,499			1,588			14			10			3,267			3,073			6


Provision for Credit Losses		—			6			(2	)		1			4			NM			NM			6			—			NM
Credit Reimbursement to IB (a)		(30	)		(30	)		(31	)		(30	)		(30	)		—			—			(60	)		(60	)		—

NONINTEREST EXPENSE
Compensation Expense		609			558			555			557			537			9			13			1,167			1,086			7
Noncompensation Expense		523			502			533			489			493			4			6			1,025			973			5
Amortization of Intangibles		17			15			16			18			20			13			(15	)		32			39			(18	)

TOTAL NONINTEREST EXPENSE		1,149			1,075			1,104			1,064			1,050			7			9			2,224			2,098			6


Income before Income Tax Expense		562			415			404			404			504			35			12			977			915			7
Income Tax Expense		210			152			148			148			188			38			12			362			337			7

NET INCOME	$	352		$	263		$	256		$	256		$	316			34			11		$	615		$	578			6


REVENUE BY BUSINESS
Treasury Services	$	720		$	689			700		$	697		$	702			4			3		$	1,409		$	1,395			1
Worldwide Securities Services		1,021			837			837			802			886			22			15			1,858			1,678			11

TOTAL NET REVENUE	$	1,741		$	1,526		$	1,537		$	1,499		$	1,588			14			10		$	3,267		$	3,073			6


FINANCIAL RATIOS
ROE		47	%		36	%		46	%		46	%		58	%								41	%		49	%
Overhead Ratio		66			70			72			71			66									68			68
Pretax Margin Ratio (b)		32			27			26			27			32									30			30

FIRMWIDE BUSINESS METRICS
Assets under Custody (in billions)	$	15,203		$	14,661		$	13,903		$	12,873		$	11,536			4			32		$	15,203		$	11,536			32

Number of:
US$ ACH transactions originated (in millions)		972			971			931			886			848			—			15			1,943			1,686			15
Total US$ Clearing Volume (in thousands)		27,779			26,840			26,906			26,252			26,506			3			5			54,619			51,688			6
International Electronic Funds Transfer Volume (in thousands) (c)		42,068			42,399			41,007			35,322			35,255			(1	)		19			84,467			68,996			22
Wholesale Check Volume (in millions)		767			771			793			860			904			(1	)		(15	)		1,538			1,756			(12	)
Wholesale Cards Issued (in thousands) (d)		17,535			17,146			17,228			16,662			16,271			2			8			17,535			16,271			8

Page 19


JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
SELECTED BALANCE SHEETS (Average)
Total Assets	$	50,687		$	46,005		$	35,422		$	30,558		$	31,774			10	%		60	%	$	48,359		$	30,509			59	%
Loans		20,195			18,948			19,030			15,231			14,993			7			35			19,575			13,972			40
Liability Balances (e)		217,514			210,639			193,129			192,518			194,181			3			12			214,095			186,201			15
Equity		3,000			3,000			2,200			2,200			2,200			—			36			3,000			2,372			26

Headcount		25,206			24,875			25,423			24,575			24,100			1			5			25,206			24,100			5

TSS FIRMWIDE METRICS
Treasury Services Firmwide Revenue (f)	$	1,354		$	1,305		$	1,333		$	1,300		$	1,318			4			3		$	2,659		$	2,609			2
Treasury & Securities Services Firmwide Revenue (f)		2,375			2,142			2,170			2,102			2,204			11			8			4,517			4,287			5

Treasury Services Firmwide Overhead Ratio (g)		59	%		59	%		56	%		57	%		56	%								59	%		56	%
Treasury & Securities Services Firmwide Overhead Ratio (g)		60			63			63			63			59									61			61

Treasury Services Firmwide Liability Balances (Average) (h)	$	189,214		$	186,631		$	168,321		$	162,326		$	161,866			1			17		$	187,930		$	158,662			18
Treasury & Securities Services Firmwide Liability Balances (Average) (h)		301,701			292,391			272,178			264,527			265,398			3			14			297,072			256,910			16

FOOTNOTES

(a)		TSS was charged a credit reimbursement related to certain exposures managed within the IB credit portfolio on behalf of clients shared with TSS.

(b)		Pretax margin represents Income before income tax expense divided by Total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.

(c)		International electronic funds transfer included non-US$ ACH and clearing volume.

(d)		Wholesale cards issued included domestic commercial card, stored value card, prepaid card, and government electronic benefit card products.

(e)		Liability balances included deposits and deposits swept to on-balance sheet liabilities.

TSS FIRMWIDE METRICS

TSS firmwide metrics included certain TSS product revenues and liability balances reported in other lines of business for customers who are also customers of those lines of business. In order to capture the firmwide impact of Treasury Services (“TS”) and TSS products and revenues, management reviewed firmwide metrics such as liability balances, revenues and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.

(f)

Firmwide revenue included TS revenue recorded in the CB, Regional Banking and Asset Management (“AM”) lines of business (see below) and excluded FX revenues recorded in the IB for TSS-related FX activity.


	QUARTERLY TRENDS																YEAR-TO-DATE
											2Q07 Change										2007 Change
	2Q07		1Q07		4Q06		3Q06		2Q06		1Q07			2Q06			2007		2006		2006
TS Revenue Reported in CB	$	569	$	556	$	576	$	551	$	566		2	%		1	%	$	1,125	$	1,116		1	%
TS Revenue Reported in Other Lines of Business		65		60		57		52		50		8			30			125		98		28

		TSS firmwide FX revenue, which included FX revenue recorded in TSS and FX revenue associated with TSS customers who were FX customers of the IB, was $139 million for the quarter ended June 30, 2007, and $251 million for year-to-date 2007.

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

(h)		Firmwide liability balances included TS’ liability balances recorded in certain other lines of business. Liability balances associated with TS customers who were also customers of the CB line of business were not included in TS liability balances.

Page 20

ASSET MANAGEMENT


JPMORGAN CHASE & CO. ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS
(in millions, except ratio, ranking and headcount data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Asset Management, Administration and Commissions	$	1,671		$	1,489		$	1,509		$	1,285		$	1,279			12	%		31	%	$	3,160		$	2,501			26	%
All Other Income		173			170			192			120			93			2			86			343			209			64

Noninterest Revenue		1,844			1,659			1,701			1,405			1,372			11			34			3,503			2,710			29
Net Interest Income		293			245			246			231			248			20			18			538			494			9

TOTAL NET REVENUE		2,137			1,904			1,947			1,636			1,620			12			32			4,041			3,204			26


Provision for Credit Losses		(11	)		(9	)		14			(28	)		(7	)		(22	)		(57	)		(20	)		(14	)		(43	)

NONINTEREST EXPENSE
Compensation Expense		879			764			750			676			669			15			31			1,643			1,351			22
Noncompensation Expense		456			451			512			417			390			1			17			907			784			16
Amortization of Intangibles		20			20			22			22			22			—			(9	)		40			44			(9	)

TOTAL NONINTEREST EXPENSE		1,355			1,235			1,284			1,115			1,081			10			25			2,590			2,179			19


Income Before Income Tax Expense		793			678			649			549			546			17			45			1,471			1,039			42
Income Tax Expense		300			253			242			203			203			19			48			553			383			44

NET INCOME	$	493		$	425		$	407		$	346		$	343			16			44		$	918		$	656			40


REVENUE BY CLIENT SEGMENT
Private Bank	$	646		$	560		$	528		$	469		$	469			15			38		$	1,206		$	910			33
Institutional		617			551			624			464			449			12			37			1,168			884			32
Retail		602			527			541			456			446			14			35			1,129			888			27
Private Client Services		272			266			254			247			256			2			6			538			522			3

Total Net Revenue	$	2,137		$	1,904		$	1,947		$	1,636		$	1,620			12			32		$	4,041		$	3,204			26


FINANCIAL RATIOS
ROE		53	%		46	%		46	%		39	%		39	%								49	%		38	%
Overhead Ratio		63			65			66			68			67									64			68
Pretax Margin Ratio (a)		37			36			33			34			34									36			32

BUSINESS METRICS
Number of:
Client Advisors		1,582			1,533			1,506			1,489			1,486			3			6			1,582			1,486			6
Retirement Planning Services Participants		1,477,000			1,423,000			1,362,000			1,372,000			1,361,000			4			9			1,477,000			1,361,000			9

% of Customer Assets in 4 & 5 Star Funds (b)		65	%		61	%		58	%		58	%		56	%		7			16			65	%		56	%		16

% of AUM in 1st and 2nd Quartiles: (c)
1 Year		65	%		76	%		83	%		79	%		71	%		(14	)		(8	)		65	%		71	%		(8	)
3 Years		77	%		76	%		77	%		75	%		75	%		1			3			77	%		75	%		3
5 Years		76	%		81	%		79	%		80	%		81	%		(6	)		(6	)		76	%		81	%		(6	)

SELECTED BALANCE SHEETS DATA (Average)
Total Assets	$	51,710		$	45,816		$	46,716		$	43,524		$	43,228			13			20		$	48,779		$	42,126			16
Loans (d)		28,695			25,640			28,917			26,770			25,807			12			11			27,176			25,148			8
Deposits		55,981			54,816			51,341			51,395			51,583			2			9			55,402			49,834			11
Equity		3,750			3,750			3,500			3,500			3,500			—			7			3,750			3,500			7

Headcount		14,108			13,568			13,298			12,761			12,786			4			10			14,108			12,786			10

CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	(5	)	$	—		$	2		$	(24	)	$	(4	)		NM			(25	)	$	(5	)	$	3			NM
Nonperforming Loans		21			34			39			57			76			(38	)		(72	)		21			76			(72	)
Allowance for Loan Losses		105			114			121			112			117			(8	)		(10	)		105			117			(10	)
Allowance for Lending Related Commitments		7			5			6			4			3			40			133			7			3			133

Net Charge-off (Recovery) Rate		(0.07	)%		—	%		0.03	%		(0.36	)%		(0.06	)%								(0.04	)%		0.02	%
Allowance for Loan Losses to Average Loans		0.37			0.44			0.42			0.42			0.45									0.39			0.47
Allowance for Loan Losses to Nonperforming Loans		500			335			310			196			154									500			154
Nonperforming Loans to Average Loans		0.07			0.13			0.13			0.21			0.29									0.08			0.30


(a)		Pretax margin represents Income before income tax expense divided by Total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.
(b)		Derived from Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.
(c)		Quartile rankings sourced from Lipper for the United States and Taiwan; Micropal for the United Kingdom, Luxembourg and Hong Kong; and Nomura for Japan.
(d)		As of January 1, 2007, $5.3 billion of held-for-investment prime mortgage loans were transferred from AM to Treasury within the Corporate segment. Although the loans, together with the responsibility for the investment management of the portfolio, were transferred to Treasury, the transfer had no impact on the financial results of AM.

Page 21


JPMORGAN CHASE & CO. ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)


											Jun 30, 2007
											Change
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
	2007		2007		2006		2006		2006		2007			2006
Assets by Asset Class
Liquidity (a)	$	333	$	318	$	311	$	281	$	247		5	%		35	%
Fixed Income		190		180		175		171		172		6			10
Equities & Balanced		467		446		427		392		393		5			19
Alternatives		119		109		100		91		86		9			38

TOTAL ASSETS UNDER MANAGEMENT		1,109		1,053		1,013		935		898		5			23
Custody / Brokerage / Administration / Deposits		363		342		334		330		315		6			15

TOTAL ASSETS UNDER SUPERVISION	$	1,472	$	1,395	$	1,347	$	1,265	$	1,213		6			21


Assets by Client Segment
Institutional	$	565	$	550	$	538	$	503	$	484		3			17
Private Bank		185		170		159		150		143		9			29
Retail		300		274		259		228		219		9			37
Private Client Services		59		59		57		54		52		—			13

TOTAL ASSETS UNDER MANAGEMENT	$	1,109	$	1,053	$	1,013	$	935	$	898		5			23


Institutional	$	566	$	551	$	539	$	505	$	486		3			16
Private Bank		402		374		357		347		331		7			21
Retail		393		361		343		309		295		9			33
Private Client Services		111		109		108		104		101		2			10

TOTAL ASSETS UNDER SUPERVISION	$	1,472	$	1,395	$	1,347	$	1,265	$	1,213		6			21


Assets by Geographic Region
U.S. / Canada	$	700	$	664	$	630	$	596	$	577		5			21
International		409		389		383		339		321		5			27

TOTAL ASSETS UNDER MANAGEMENT	$	1,109	$	1,053	$	1,013	$	935	$	898		5			23


U.S. / Canada	$	971	$	929	$	889	$	855	$	828		5			17
International		501		466		458		410		385		8			30

TOTAL ASSETS UNDER SUPERVISION	$	1,472	$	1,395	$	1,347	$	1,265	$	1,213		6			21


Mutual Funds Assets by Asset Class
Liquidity	$	268	$	257	$	255	$	221	$	178		4			51
Fixed Income		49		48		46		45		47		2			4
Equity		235		219		206		184		194		7			21

TOTAL MUTUAL FUND ASSETS	$	552	$	524	$	507	$	450	$	419		5			32


(a)		Third quarter 2006 data reflected the reclassification of $19 billion of assets under management into liquidity from other asset classes. Prior period data were not restated.

Page 22


JPMORGAN CHASE & CO. ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)


	QUARTERLY TRENDS											YEAR-TO-DATE
	2Q07		1Q07		4Q06		3Q06		2Q06			2007		2006
ASSETS UNDER SUPERVISION (continued)
Assets Under Management Rollforward
Beginning Balance	$	1,053	$	1,013	$	935	$	898	$	873		$	1,013	$	847
Flows:
Liquidity		12		7		24		15		10			19		5
Fixed Income		6		2		1		4		6			8		6
Equities, Balanced & Alternatives		12		10		5		3		13			22		26
Market / Performance / Other Impacts		26		21		48		15		(4	)		47		14

TOTAL ASSETS UNDER MANAGEMENT	$	1,109	$	1,053	$	1,013	$	935	$	898		$	1,109	$	898


Assets Under Supervision Rollforward
Beginning Balance	$	1,395	$	1,347	$	1,265	$	1,213	$	1,197		$	1,347	$	1,149
Net Asset Flows		38		27		31		26		33			65		45
Market / Performance / Other Impacts		39		21		51		26		(17	)		60		19

TOTAL ASSETS UNDER SUPERVISION	$	1,472	$	1,395	$	1,347	$	1,265	$	1,213		$	1,472	$	1,213

Page 23

CORPORATE


JPMORGAN CHASE & CO. CORPORATE

FINANCIAL HIGHLIGHTS
(in millions, except headcount data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
INCOME STATEMENT
REVENUE
Principal Transactions (a) (b)	$	1,372		$	1,325		$	236		$	195		$	551			4	%		149	%	$	2,697		$	750			260	%
Securities Gains (Losses)		(227	)		(8	)		18			24			(492	)		NM			54			(235	)		(650	)		64
All Other Income (c)		90			68			27			125			231			32			(61	)		158			333			(53	)

Noninterest Revenue		1,235			1,385			281			344			290			(11	)		326			2,620			433			NM
Net Interest Income (Expense)		(173	)		(117	)		(87	)		(55	)		(355	)		(48	)		51			(290	)		(902	)		68

TOTAL NET REVENUE		1,062			1,268			194			289			(65	)		(16	)		NM			2,330			(469	)		NM


Provision for Credit Losses		3			3			(2	)		1			—			—			NM			6			—			NM

NONINTEREST EXPENSE
Compensation Expense (b)		695			776			434			737			770			(10	)		(10	)		1,471			1,455			1
Noncompensation Expense (d)		818			556			678			731			336			47			143			1,374			948			45
Merger Costs		64			62			100			48			86			3			(26	)		126			157			(20	)

Subtotal		1,577			1,394			1,212			1,516			1,192			13			32			2,971			2,560			16
Net Expenses Allocated to Other Businesses		(1,075	)		(1,040	)		(1,037	)		(1,035	)		(1,036	)		(3	)		(4	)		(2,115	)		(2,069	)		(2	)

TOTAL NONINTEREST EXPENSE		502			354			175			481			156			42			222			856			491			74


Income (Loss) from Continuing Operations before Income Tax Expense		557			911			21			(193	)		(221	)		(39	)		NM			1,468			(960	)		NM
Income Tax Expense (Benefit) (e)		175			280			(520	)		(159	)		(181	)		(38	)		NM			455			(500	)		NM

Income (Loss) from Continuing Operations	$	382		$	631		$	541		$	(34	)	$	(40	)		(39	)		NM		$	1,013		$	(460	)		NM
Income from Discontinued Operations (after-tax) (f)		—			—			620			65			56			—			NM			—			110			NM

NET INCOME (LOSS)	$	382		$	631		$	1,161		$	31		$	16			(39	)		NM		$	1,013		$	(350	)		NM


MEMO:
TOTAL NET REVENUE
Private Equity (a) (b)	$	1,293		$	1,253		$	250		$	188		$	500			3			159		$	2,546		$	704			262
Treasury and Other Corporate (c)		(231	)		15			(56	)		101			(565	)		NM			59			(216	)		(1,173	)		82

TOTAL NET REVENUE	$	1,062		$	1,268		$	194		$	289		$	(65	)		(16	)		NM		$	2,330		$	(469	)		NM


NET INCOME (LOSS)
Private Equity (a)	$	702		$	698		$	136		$	95		$	293			1			140		$	1,400		$	396			254
Treasury and Other Corporate (c) (d) (e)		(280	)		(29	)		467			(99	)		(280	)		NM			—			(309	)		(759	)		59
Merger Costs		(40	)		(38	)		(62	)		(30	)		(53	)		(5	)		25			(78	)		(97	)		20

Income (Loss) from Continuing Operations	$	382		$	631		$	541		$	(34	)	$	(40	)		(39	)		NM		$	1,013		$	(460	)		NM
Income from Discontinued Operations (after-tax)		—			—			620			65			56			—			NM			—			110			NM

TOTAL NET INCOME (LOSS)	$	382		$	631		$	1,161		$	31		$	16			(39	)		NM		$	1,013		$	(350	)		NM


Headcount		23,532			23,702			23,242			25,748			27,100			(1	)		(13	)		23,532			27,100			(13	)


(a)		The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see the Firm’s March 31, 2007, Form 10-Q.
(b)		Quarters ending in 2007 included the reclassification of certain private equity carried interest from Net revenue to Compensation expense.
(c)		Included a gain of $103 million in the second quarter of 2006 related to the initial public offering of MasterCard.
(d)		Included insurance recoveries related to settlement of the Enron and WorldCom class action litigations and for certain other material legal proceedings of $137 million, $17 million and $260 million for the quarters ended December 31, 2006, September 30, 2006, and June 30, 2006, respectively. Year-to-date insurance recoveries were $358 million for 2006.
(e)		Included a tax benefit of $359 million related to audit resolutions in the fourth quarter of 2006.
(f)		On October 1, 2006, the Firm completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank of New York. The results of operations of these corporate trust businesses were reported as discontinued operations for 2006. Included $622 million gain on sale in the fourth quarter of 2006.

Page 24


JPMORGAN CHASE & CO. CORPORATE

FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
SUPPLEMENTAL
TREASURY
Securities Gains (Losses) (a)	$	(227	)	$	(8	)	$	7		$	24		$	(492	)		NM	%		54	%	$	(235	)	$	(650	)		64	%
Investment Securities Portfolio (Average)		87,760			86,436			80,616			68,619			63,714			2			38			87,102			51,917			68
Investment Securities Portfolio (Ending)		86,821			88,681			82,091			77,116			61,990			(2	)		40			86,821			61,990			40
Mortgage Loans (Average) (b)		26,830			25,244			—			—			—			6			NM			26,041			—			NM
Mortgage Loans (Ending) (b)		27,299			26,499			—			—			—			3			NM			27,299			—			NM

PRIVATE EQUITY
Private Equity Gains (Losses)
Direct Investments
Realized Gains	$	985		$	723		$	254		$	194		$	568			36			73		$	1,708		$	775			120
Write-ups / (Write-downs) (c)		209			648			12			(21	)		(74	)		(68	)		NM			857			(64	)		NM
Mark-to-Market Gains (Losses)		81			(127	)		(6	)		25			49			NM			65			(46	)		53			NM

Total Direct Investments		1,275			1,244			260			198			543			2			135			2,519			764			230
Third-Party Fund Investments		53			34			27			28			6			56			NM			87			22			295

Total Private Equity Gains (d)	$	1,328		$	1,278		$	287		$	226		$	549			4			142		$	2,606		$	786			232


Private Equity Portfolio Information
Direct Investments
Publicly-Held Securities
Carrying Value	$	465		$	389		$	587		$	696		$	589			20			(21	)
Cost		367			366			451			539			446			—			(18	)
Quoted Public Value		600			493			831			1,022			808			22			(26	)
Privately-Held Direct Securities
Carrying Value		5,247			5,294			4,692			4,241			4,321			(1	)		21
Cost		5,228			5,574			5,795			5,482			5,647			(6	)		(7	)
Third-Party Fund Investments
Carrying Value		812			744			802			682			642			9			26
Cost		1,067			1,026			1,080			1,000			963			4			11


Total Private Equity Portfolio — Carrying Value	$	6,524		$	6,427		$	6,081		$	5,619		$	5,552			2			18


Total Private Equity Portfolio — Cost	$	6,662		$	6,966		$	7,326		$	7,021		$	7,056			(4	)		(6	)


(a)		Losses reflected repositioning of the Treasury investment securities portfolio. Excluded gains/losses on securities used to manage risk associated with MSRs.
(b)		As of January 1, 2007, $19.4 billion and $5.3 billion of held-for-investment residential mortgage loans were transferred from RFS and AM, respectively, to the Corporate segment for risk management and reporting purposes. Although the loans, together with the responsibility for the investment management of the portfolio, were transferred to Treasury, the transfer had no impact on the financial results of Corporate.
(c)		The Firm adopted SFAS 157 in the first quarter of 2007. For additional information, see the Firm’s March 31, 2007, Form 10-Q. Quarters ending in 2007 included the reclassification of certain private equity carried interest from Net revenue to Compensation expense.
(d)		Included in Principal Transactions.

Page 25

CREDIT-RELATED INFORMATION


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION

(in millions)


											Jun 30, 2007
											Change
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
	2007		2007		2006		2006		2006		2007			2006
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	111,082	$	108,627	$	118,686	$	123,791	$	125,870		2	%		(12)	%
Loans — Non-U.S.		70,886		59,567		65,056		55,612		52,345		19			35

TOTAL WHOLESALE LOANS — REPORTED (b)		181,968		168,194		183,742		179,403		178,215		8			2

CONSUMER (c)
Home Equity		90,989		87,741		85,730		80,399		77,826		4			17
Mortgage (includes RFS and Corporate)		43,114		46,574		59,668		60,075		60,014		(7	)		(28	)
Auto Loans and Leases		41,231		40,937		41,009		40,310		42,184		1			(2	)
Credit Card — Reported		80,495		78,173		85,881		78,587		72,961		3			10
Other Loans		27,240		28,146		27,097		24,770		23,904		(3	)		14

TOTAL CONSUMER LOANS — REPORTED (d)		283,069		281,571		299,385		284,141		276,889		1			2

TOTAL LOANS — REPORTED (e)		465,037		449,765		483,127		463,544		455,104		3			2
Credit Card — Securitizations		67,506		68,403		66,950		65,245		66,349		(1	)		2

TOTAL LOANS — MANAGED		532,543		518,168		550,077		528,789		521,453		3			2
Derivative Receivables		59,038		49,647		55,601		58,265		54,075		19			9

TOTAL CREDIT-RELATED ASSETS		591,581		567,815		605,678		587,054		575,528		4			3
Wholesale Lending-Related Commitments		435,718		412,382		391,424		374,417		366,914		6			19

TOTAL	$	1,027,299	$	980,197	$	997,102	$	961,471	$	942,442		5			9


Memo: Total by Category
Total Wholesale Exposure (f)	$	676,724	$	630,223	$	630,767	$	612,085	$	599,204		7			13
Total Consumer Managed Loans (g)		350,575		349,974		366,335		349,386		343,238		—			2

Total	$	1,027,299	$	980,197	$	997,102	$	961,471	$	942,442		5			9


Risk Profile of Wholesale Credit Exposure:

Investment-Grade (h)	$	532,582	$	487,404	$	490,185	$	481,249	$	464,982		9			15

Noninvestment-Grade: (h)
Noncriticized		128,842		122,759		113,049		106,831		105,383		5			22
Criticized Performing		4,996		5,117		4,599		4,169		3,431		(2	)		46
Criticized Nonperforming		252		263		427		674		783		(4	)		(68	)

Total Noninvestment-Grade		134,090		128,139		118,075		111,674		109,597		5			22

Loans Held-for-Sale		10,052		14,680		22,256		18,889		24,323		(32	)		(59	)
Purchased Nonperforming Wholesale Loans (i)		—		—		251		273		302		—			NM

Total Wholesale Exposure	$	676,724	$	630,223	$	630,767	$	612,085	$	599,204		7			13


(a)		Included Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management.
(b)		As a result of the adoption of SFAS 159 in the first quarter of 2007, $11.7 billion of wholesale loans were reclassified to Trading assets and excluded from wholesale loans reported.
(c)		Included Retail Financial Services, Card Services and residential mortgage loans reported in the Corporate segment.
(d)		As a result of the adoption of SFAS 159 in the first quarter of 2007, $11.6 billion of consumer loans were reclassified to Trading Assets and excluded from consumer loans reported.
(e)		Included $1.5 billion and $900 million of wholesale loans carried at fair value at June 30, 2007, and March 31, 2007, respectively.
(f)		Represents Total Wholesale Loans, Derivative Receivables and Wholesale Lending-Related Commitments.
(g)		Represents Total Consumer Loans plus Credit Card Securitizations, excluding consumer lending-related commitments.
(h)		Excluded HFS loans.
(i)		Represents distressed HFS wholesale loans purchased as part of IB’s proprietary activities, which were excluded from nonperforming assets. During the first quarter of 2007, the Firm elected the fair value option of accounting for this portfolio of nonperforming loans. These loans were classified as Trading assets for quarters ending on or after March 31, 2007.


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 and below

Page 26


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


																Jun 30, 2007
																Change
	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
	2007			2007			2006			2006			2006			2007			2006
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS (a)
Loans — U.S.	$	190		$	205		$	309		$	486		$	663			(7)	%		(71)	%
Loans — Non-U.S.		38			62			82			170			148			(39	)		(74	)

TOTAL WHOLESALE LOANS-REPORTED (b)		228			267			391			656			811			(15	)		(72	)

CONSUMER LOANS (c)
Home Equity		483			459			454			400			403			5			20
Mortgage (includes RFS and Corporate)		1,034			960			769			588			503			8			106
Auto Loans and Leases		81			95			132			130			133			(15	)		(39	)
Credit Card — Reported		8			9			9			10			11			(11	)		(27	)
Other Loans		335			326			322			286			300			3			12

TOTAL CONSUMER LOANS-REPORTED (d)		1,941			1,849			1,686			1,414			1,350			5			44

TOTAL LOANS REPORTED (b)		2,169			2,116			2,077			2,070			2,161			3			—
Derivative Receivables		30			36			36			35			36			(17	)		(17	)
Assets Acquired in Loan Satisfactions		387			269			228			195			187			44			107

TOTAL NONPERFORMING ASSETS (b)	$	2,586		$	2,421		$	2,341		$	2,300		$	2,384			7			8


TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.47	%		0.47	%		0.43	%		0.45	%		0.47	%

NONPERFORMING ASSETS BY LOB
Investment Bank	$	119		$	128		$	269		$	456		$	525			(7	)		(77	)
Retail Financial Services		2,097			1,910			1,902			1,595			1,520			10			38
Card Services		8			9			9			10			11			(11	)		(27	)
Commercial Banking		137			142			122			160			230			(4	)		(40	)
Treasury & Securities Services		—			—			—			22			22			—			NM
Asset Management		21			35			39			57			76			(40	)		(72	)
Corporate (e)		204			197			—			—			—			4			NM

TOTAL	$	2,586		$	2,421		$	2,341		$	2,300		$	2,384			7			8


(a)		Included nonperforming HFS loans of $25 million, $4 million, $4 million, $21 million and $70 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively.
(b)		Excluded purchased HFS wholesale loans.
(c)		Included nonperforming HFS loans of $215 million, $112 million, $116 million, $24 million and $9 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively.
(d)		Excluded nonperforming assets related to (1) loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by U.S. government agencies and U.S. government-sponsored enterprises of $1.2 billion, $1.3 billion, $1.2 billion, $1.1 billion and $1.1 billion at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively, and (2) education loans that are 90 days past due and still accruing, which were insured by U.S. government agencies under the Federal Family Education Loan Program of $200 million, $178 million, $219 million, $189 million and $163 million for the quarters ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. These amounts for GNMA and education loans are excluded, as reimbursement is proceeding normally.
(e)		Relates to held-for-investment prime mortgage loans transferred from RFS and AM to the Corporate segment.

Page 27


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
GROSS CHARGE-OFFS
Wholesale Loans	$	13		$	17		$	76		$	48		$	23			(24	)%		(43	)%	$	30		$	62			(52	)%
Consumer (includes RFS and Corporate)		321			241			266			186			172			33			87			562			350			61
Credit Card — Reported		877			847			801			777			653			4			34			1,724			1,318			31

Total Loans — Reported		1,211			1,105			1,143			1,011			848			10			43			2,316			1,730			34
Credit Card — Securitizations		704			702			694			702			656			—			7			1,406			1,183			19

Total Loans — Managed		1,915			1,807			1,837			1,713			1,504			6			27			3,722			2,913			28


RECOVERIES

Wholesale Loans		42			23			48			59			42			83			—			65			101			(36	)
Consumer (includes RFS and Corporate)		48			53			52			58			59			(9	)		(19	)		101			116			(13	)
Credit Card — Reported		136			126			113			104			93			8			46			262			191			37

Total Loans — Reported		226			202			213			221			194			12			16			428			408			5
Credit Card — Securitizations		114			109			101			95			95			5			20			223			173			29

Total Loans — Managed		340			311			314			316			289			9			18			651			581			12


NET CHARGE-OFFS

Wholesale Loans		(29	)		(6	)		28			(11	)		(19	)		(383	)		(53	)		(35	)		(39	)		10
Consumer (includes RFS and Corporate)		273			188			214			128			113			45			142			461			234			97
Credit Card — Reported		741			721			688			673			560			3			32			1,462			1,127			30

Total Loans — Reported		985			903			930			790			654			9			51			1,888			1,322			43
Credit Card — Securitizations		590			593			593			607			561			(1	)		5			1,183			1,010			17

Total Loans — Managed	$	1,575		$	1,496		$	1,523		$	1,397		$	1,215			5			30		$	3,071		$	2,332			32


NET CHARGE-OFF RATES — ANNUALIZED
Wholesale Loans (a)		(0.07	)%		(0.02	)%		0.07	%		(0.03	)%		(0.05	)%								(0.04	)%		(0.05	)%
Consumer (includes RFS and Corporate) (b)		0.57			0.47			0.45			0.27			0.24									0.49			0.25
Credit Card — Reported		3.76			3.57			3.35			3.48			3.29									3.66			3.33
Total Loans — Reported (a) (b)		0.90			0.85			0.84			0.74			0.64									0.88			0.66
Credit Card — Securitizations		3.46			3.56			3.57			3.70			3.26									3.51			2.94
Total Loans — Managed (a) (b)		1.25			1.22			1.20			1.13			1.02									1.23			1.00

Memo: Credit Card — Managed		3.62			3.57			3.45			3.58			3.28									3.59			3.13


(a)		Average wholesale Loans held-for-sale were $14.3 billion, $13.3 billion, $24.5 billion, $24.4 billion and $20.3 billion for the quarters ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively, and $13.8 billion and $19.9 billion for year-to-date 2007 and 2006, respectively. Average wholesale loans carried at fair value were $1.3 billion and $900 million for the quarters ended June 30, 2007, and March 31, 2007, respectively, and $1.1 billion for year-to-date 2007. These amounts were excluded when calculating the net charge-off rates.
(b)		Average consumer (excluding Card) Loans held-for-sale were $11.7 billion, $21.7 billion, $21.2 billion, $14.0 billion and $12.9 billion for the quarters ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively, and $16.7 billion and $14.6 billion for year-to-date 2007 and 2006, respectively. These amounts were not included in the net charge-off rates.

Page 28


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	7,300		$	7,279		$	7,056		$	7,076		$	7,275			—	%		—	%	$	7,279		$	7,090			3	%
Net Charge-Offs		(985	)		(903	)		(930	)		(790	)		(654	)		(9	)		(51	)		(1,888	)		(1,322	)		(43	)
Provision for Loan Losses		1,316			979			1,085			768			453			34			191			2,295			1,300			77
Other (a) (b)		2			(55	)		68			2			2			NM			—			(53	)		8			NM

Ending Balance	$	7,633		$	7,300		$	7,279		$	7,056		$	7,076			5			8		$	7,633		$	7,076			8


SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	553		$	524		$	468		$	424		$	384			6			44		$	524		$	400			31
Provision for Lending-Related Commitments		213			29			49			44			40			NM			433			242			24			NM
Other (b)		—			—			7			—			—			—			—			—			—			—

Ending Balance	$	766		$	553		$	524		$	468		$	424			39			81		$	766		$	424			81


ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset Specific	$	52		$	54		$	51		$	101		$	160			(4	)		(68	)
Formula — Based		2,650			2,639			2,660			2,473			2,409			—			10

Total Wholesale		2,702			2,693			2,711			2,574			2,569			—			5

Consumer (c)

Formula — Based		4,931			4,607			4,568			4,482			4,507			7			9

Total Allowance for Loan Losses		7,633			7,300			7,279			7,056			7,076			5			8
Allowance for Lending-Related Commitments		766			553			524			468			424			39			81

Total Allowance for Credit Losses	$	8,399		$	7,853		$	7,803		$	7,524		$	7,500			7			12


Wholesale Allowance for Loan Losses to Total Wholesale Loans (d)		1.59	%		1.76	%		1.68	%		1.61	%		1.67	%
Consumer Allowance for Loan Losses to Total Consumer Loans (e)		1.79			1.72			1.71			1.68			1.70
Allowance for Loan Losses to Total Loans (d) (e)		1.71			1.74			1.70			1.65			1.69
Allowance for Loan Losses to Total Nonperforming Loans (f)		396			365			372			348			340

ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,037		$	1,037		$	1,052		$	1,010		$	1,038			—			—
Retail Financial Services		1,772			1,453			1,392			1,306			1,321			22			34
Card Services		3,096			3,092			3,176			3,176			3,186			—			(3	)
Commercial Banking		1,551			1,531			1,519			1,431			1,394			1			11
Treasury & Securities Services		9			11			7			9			9			(18	)		—
Asset Management		105			114			121			112			117			(8	)		(10	)
Corporate (g)		63			62			12			12			11			2			473

Total	$	7,633		$	7,300		$	7,279		$	7,056		$	7,076			5			8


(a)		First quarter of 2007 primarily related to the Firm’s adoption of SFAS 159 effective January 1, 2007.
(b)		Fourth quarter of 2006 reflected The Bank of New York transaction.
(c)		Included RFS, Card Services and Corporate.
(d)		Wholesale Loans held-for-sale were $10.1 billion, $14.7 billion, $22.5 billion, $19.2 billion and $24.6 billion at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. Wholesale loans carried at fair value were $1.5 billion and $900 million for the quarters ended June 30, 2007, and March 31, 2007, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(e)		Consumer Loans held-for-sale were $8.3 billion, $13.4 billion, $32.7 billion, $17.0 billion and $11.8 billion at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(f)		Nonperforming Loans held-for-sale were $240 million, $116 million, $120 million, $45 million and $79 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006, respectively. These amounts were excluded when calculating the allowance coverage ratios.
(g)		March 31, 2007 included $50 million associated with mortgages originated by RFS and AM and transferred to Corporate to be risk managed by the Chief Investment Office and $12 million related to Hurricane Katrina.

Page 29


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																					YEAR-TO-DATE
																2Q07 Change												2007 Change
	2Q07			1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	(13	)	$	35		$	50		$	(36	)	$	(91	)		NM	%		86	%	$	22		$	98			(78	)%
Commercial Banking		10			17			86			55			(24	)		(41	)		NM			27			(8	)		NM
Treasury & Securities Services		(1	)		4			(2	)		1			4			NM			NM			3			—			NM
Asset Management		(13	)		(8	)		12			(29	)		(7	)		(63	)		(86	)		(21	)		(13	)		(62	)
Corporate		—			—			(2	)		1			—			—			—			—			—			—

Total Wholesale		(17	)		48			144			(8	)		(118	)		NM			86			31			77			(60	)

Retail Financial Services		589			292			253			113			101			102			483			881			186			374
Card Services (a)		741			636			688			663			470			17			58			1,377			1,037			33
Corporate (b)		3			3			—			—			—			—			NM			6			—			NM

Total Consumer		1,333			931			941			776			571			43			133			2,264			1,223			85

Total Provision for Loan Losses		1,316			979			1,085			768			453			34			191			2,295			1,300			77


LENDING-RELATED COMMITMENTS
Investment Bank	$	177		$	28			13		$	43		$	29			NM			NM		$	205		$	23			NM
Commercial Banking		35			—			25			(1	)		12			NM			192			35			3			NM
Treasury & Securities Services		1			2			—			—			—			(50	)		NM			3			—			NM
Asset Management		2			(1	)		2			1			—			NM			NM			1			(1	)		NM

Total Wholesale		215			29			40			43			41			NM			424			244			25			NM

Retail Financial Services		(2	)		—			9			1			(1	)		NM			(100	)		(2	)		(1	)		(100	)
Card Services		—			—			—			—			—			—			—			—			—			—

Total Consumer		(2	)		—			9			1			(1	)		NM			(100	)		(2	)		(1	)		(100	)

Total Provision for Lending-Related Commitments		213			29			49			44			40			NM			433			242			24			NM


TOTAL PROVISION FOR CREDIT LOSSES
Investment Bank	$	164		$	63		$	63		$	7		$	(62	)		160			NM		$	227		$	121			88
Commercial Banking		45			17			111			54			(12	)		165			NM			62			(5	)		NM
Treasury & Securities Services		—			6			(2	)		1			4			NM			NM			6			—			NM
Asset Management		(11	)		(9	)		14			(28	)		(7	)		(22	)		(57	)		(20	)		(14	)		(43	)
Corporate		—			—			(2	)		1			—			—			—			—			—			—

Total Wholesale		198			77			184			35			(77	)		157			NM			275			102			170

Retail Financial Services		587			292			262			114			100			101			487			879			185			375
Card Services (a)		741			636			688			663			470			17			58			1,377			1,037			33
Corporate (b)		3			3			—			—			—			—			NM			6			—			NM

Total Consumer		1,331			931			950			777			570			43			134			2,262			1,222			85

Total Provision for Credit Losses		1,529			1,008			1,134			812			493			52			210			2,537			1,324			92

Securitized Credit Losses		590			593			593			607			561			(1	)		5			1,183			1,010			17

Managed Provision for Credit Losses	$	2,119		$	1,601		$	1,727		$	1,419		$	1,054			32			101		$	3,720		$	2,334			59


(a)		Second quarter of 2006 included a $90 million release of a $100 million special provision, originally recorded in the third quarter of 2005, related to Hurricane Katrina.
(b)		Included amounts related to held-for-investment prime mortgages transferred from RFS and AM to the Corporate segment.

Page 30

CAPITAL


JPMORGAN CHASE & CO. CAPITAL

(in millions, except per share and ratio data)


	QUARTERLY TRENDS																							YEAR-TO-DATE
																		2Q07 Change												2007 Change
	2Q07					1Q07			4Q06			3Q06			2Q06			1Q07			2Q06			2007			2006			2006
COMMON SHARES OUTSTANDING
Weighted-Average Basic Shares Outstanding		3,415.1					3,456.4			3,465.3			3,468.6			3,473.8			(1	)%		(2	)%		3,435.7			3,473.3			(1	)%
Weighted-Average Diluted Shares Outstanding		3,521.6					3,559.5			3,578.6			3,574.0			3,572.2			(1	)		(1	)		3,540.5			3,571.5			(1	)
Common Shares Outstanding — at Period End		3,398.5					3,416.3			3,461.7			3,467.5			3,470.6			(1	)		(2	)		3,398.5			3,470.6			(2	)

Cash Dividends Declared per Share	$	0.38				$	0.34		$	0.34		$	0.34		$	0.34			12			12		$	0.72		$	0.68			6
Book Value per Share		35.08					34.45			33.45			32.75			31.89			2			10			35.08			31.89			10
Dividend Payout (a)		31	%				25	%		27	%		37	%		35	%								28	%		37	%

NET INCOME	$	4,234				$	4,787		$	4,526		$	3,297		$	3,540			(12	)		20		$	9,021		$	6,621			36
Preferred Dividends		—					—			—			—			—			—			—			—			4			NM

Net Income Applicable to Common Stock	$	4,234				$	4,787		$	4,526		$	3,297		$	3,540			(12	)		20		$	9,021		$	6,617			36


INCOME PER SHARE
Basic Earnings per Share
Income from continuing operations	$	1.24				$	1.38		$	1.13		$	0.93		$	1.00			(10	)		24		$	2.63		$	1.87			41
Net Income		1.24					1.38			1.31			0.95			1.02			(10	)		22			2.63			1.91			38

Diluted Earnings per Share
Income from continuing operations	$	1.20				$	1.34		$	1.09		$	0.90		$	0.98			(10	)		22		$	2.55		$	1.82			40
Net Income		1.20					1.34			1.26			0.92			0.99			(10	)		21			2.55			1.85			38

SHARE PRICE
High	$	53.25				$	51.95		$	49.00		$	47.49		$	46.80			3			14		$	53.25		$	46.80			14
Low		47.70					45.91			45.51			40.40			39.33			4			21			45.91			37.88			21
Close		48.45					48.38			48.30			46.96			42.00			—			15			48.45			42.00			15
Market Capitalization		164,659					165,280			167,199			162,835			145,764			—			13			164,659			145,764			13

STOCK REPURCHASE PROGRAM (b)
Aggregate Repurchases	$	1,875.3				$	4,000.9		$	1,000.3		$	900.0		$	745.5			(53	)		152		$	5,876.2		$	2,035.8			189
Common Shares Repurchased		36.7					80.9			21.1			20.0			17.7			(55	)		107			117.6			49.5			138
Average Purchase Price	$	51.13				$	49.45		$	47.33		$	44.88		$	42.24			3			21		$	49.97		$	41.14			21

CAPITAL RATIOS
Tier 1 Capital	$	85,096		(c	)	$	82,538		$	81,055		$	79,830		$	74,983			3			13
Total Capital		122,276		(c	)		115,142			115,265			111,670			106,283			6			15
Risk-Weighted Assets		1,016,347		(c	)		972,813			935,909			926,455			884,228			4			15
Adjusted Average Assets		1,376,727		(c	)		1,324,145			1,308,699			1,257,364			1,282,233			4			7
Tier 1 Capital Ratio		8.4	%	(c	)		8.5	%		8.7	%		8.6	%		8.5	%
Total Capital Ratio		12.0		(c	)		11.8			12.3			12.1			12.0
Tier 1 Leverage Ratio		6.2		(c	)		6.2			6.2			6.3			5.8

INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	45,254				$	45,063		$	45,186		$	43,372		$	43,498			—			4
Mortgage Servicing Rights		9,499					7,937			7,546			7,378			8,247			20			15
Purchased Credit Card Relationships		2,591					2,758			2,935			2,982			3,138			(6	)		(17	)
All Other Intangibles		4,103					4,205			4,371			4,078			4,231			(2	)		(3	)

Total Intangibles	$	61,447				$	59,963		$	60,038		$	57,810		$	59,114			2			4


(a)		Based on Net income amounts.
(b)		Excluded commission costs.
(c)		Estimated.

Page 31


JPMORGAN CHASE & CO. Glossary of Terms

ACH: Automated Clearing House

Average Managed Assets: Refers to total assets on the Firm’s balance sheet plus credit card receivables that have been securitized.

Beneficial interest issued by consolidated VIEs: Represents the interest of third-party holders of debt/equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates under FIN 46R. The underlying obligations of the VIEs consist of short-term borrowings, commercial paper and long-term debt. The related assets consist of trading assets, available-for-sale securities, loans and other assets.

Contractual Credit Card Charge-off: In accordance with the Federal Financial Institutions Examination Council policy, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification of the filing of bankruptcy, whichever is earlier.

Corporate: Includes Private Equity, Treasury and Corporate Other, which includes other centrally managed expenses and discontinued operations.

Credit Card Securitizations: Card Services’ managed results 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 the receivables to a trust, and the sale of undivided interests to investors that entitle the investors to specific cash flows generated from the credit card receivables. The Firm retains the remaining undivided interests 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 as the aggregate amount of interest income, certain fee revenue and recoveries that is in excess of the aggregate amount of interest paid to the investors, gross credit losses and other trust expenses related to the securitized receivables are reclassified into credit card income.

Discontinued operations: A component of an entity that is classified as held-for-sale or that has been disposed of from ongoing operations in its entirety or piecemeal, and for which the entity will not have any significant, continuing involvement. A discontinued operation may be a separate major business segment, a component of a major business segment or a geographical area of operations of the entity that can be separately distinguished operationally and for financial reporting purposes.

FIN 46(R): FASB Interpretation No. 46 (revised December 2003), “Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin No. 51.”

FIN 48: FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109.”

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

Investment-grade: An indication of credit quality based upon JPMorgan Chase’s internal risk assessment system. “Investment-grade” generally represents a risk profile similar to a rating of a BBB-/Baa3 or better, as defined by independent rating agencies.

Managed Basis: A non-GAAP presentation of financial results that includes reclassifications related to credit card securitizations and taxable equivalents. Management uses this non-GAAP financial measure at the segment level because it believes this provides information to investors in understanding the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.

Managed Credit Card Receivables: Refers to credit card receivables on the Firm’s balance sheet plus credit card receivables that have been securitized.

Mark-to-market exposure: A measure, at a point in time, of the value of a derivative or foreign exchange contract in the open market. When the mark-to-market value is positive, it indicates the counterparty owes JPMorgan Chase and, therefore, creates a repayment risk for the Firm. When the mark-to-market value is negative, JPMorgan Chase owes the counterparty. In this situation, the Firm does not have repayment risk.

Merger: The July 1, 2004, merger with Bank One Corporation.

MSR Risk Management Revenue: Includes changes in MSR asset fair value due to inputs or assumptions in model and derivative valuation adjustments and other.

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

NM: Not meaningful.

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

Principal Transactions: Realized and unrealized gains and losses from trading activities (including physical commodities inventories that are accounted for at the lower of cost or fair value) and changes in fair value associated with instruments held by the Investment Bank for which the SFAS 159 fair value option was elected. Principal transactions also include private equity gains and losses.

Reported Basis: Financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reported basis includes the impact of credit card securitizations, but excludes the impact of taxable equivalent adjustments.

SFAS: Statement of Financial Accounting Standards.

SFAS 123R: “Share-Based Payment.”

SFAS 140: “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities — a replacement of FASB Statement No. 125.”

SFAS 157: “Fair Value Measurements.”

SFAS 159: “The Fair Value Option for Financial Assets and Financial Liabilities — Including an Amendment of FASB Statement No. 115.”

Tax-Equivalent Basis: Total net revenue for each of the business segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from tax exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to taxable securities and investments. This non-GAAP financial measure 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 with income tax expense.

Unaudited: The financial statements and information included throughout this document are unaudited and have not been subjected to auditing procedures sufficient to permit an independent certified public accountant to express an opinion.

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

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

Page 32


JPMORGAN CHASE & CO. Line of Business Metrics

Investment Banking

IB’S REVENUES COMPRISE THE FOLLOWING:

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

2. Fixed income markets includes client and portfolio management revenue related to both market-making and proprietary risk-taking across global fixed income markets, including government and corporate debt, foreign exchange, interest rate and commodities markets.

3. Equities markets includes client and portfolio management revenue related to market-making and proprietary risk-taking across global equity products, including cash instruments, derivatives and convertibles.

4. Credit portfolio revenue includes Net interest income, fees and loan sale activity for IB’s credit portfolio. Credit portfolio revenue also includes gains or losses on securities received as part of a loan restructuring, and changes in the credit valuation adjustment (“CVA”), which is the component of the fair value of a derivative that reflects the credit quality of the counterparty. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities.

Retail Financial Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN REGIONAL BANKING:

1. Personal bankers — Retail branch office personnel who acquire, retain and expand new and existing customer relationships by assessing customer needs and recommending and selling appropriate banking products and services.

2. Sales specialists — Retail branch office personnel who specialize in the marketing of a single product, including mortgages, investments and business banking, by partnering with the personal bankers.

MORTGAGE BANKING REVENUES COMPRISE THE FOLLOWING:

1. Production revenue includes Mortgage Servicing Rights created from the sales of loans, net gains or losses on the sales of loans, and other production-related fees. Also includes revenue associated with originations of subprime mortgage loans.

2. Net mortgage servicing revenue

a) Servicing revenue represents all gross income earned from servicing third-party mortgage loans including stated service fees, excess service fees, late fees, and other ancillary fees.

b) Changes in MSR asset fair value due to:

— market-based inputs such as interest rates and volatility, as well as updates to valuation assumptions used in the MSR valuation model.

— servicing portfolio runoff (or time decay)

c) Derivative valuation adjustments and other, which represents changes in the fair value of derivative instruments used to offset the impact of changes in the market-based inputs to the MSR valuation model.

3. MSR risk management results include changes in the MSR asset fair value due to inputs or assumptions and derivative valuation adjustments and other.

Retail Financial Services (continued)

MORTGAGE BANKING’S ORIGINATION CHANNELS COMPRISE THE FOLLOWING:

1. Retail — Borrowers who are buying or refinancing a home are directly contacted by a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by real estate brokers, home builders or other third parties.

2. Wholesale — A third-party mortgage broker refers loan applications to a mortgage banker at the Firm. Brokers are independent loan originators that specialize in finding and counseling borrowers but do not provide funding for loans.

3. Correspondent (including negotiated transactions) — Correspondents are banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm. Correspondent negotiated transactions exclude purchased bulk servicing transactions and occur when mid- to large-sized mortgage lenders, banks and bank-owned mortgage companies sell servicing to the Firm on an as-originated basis. These transactions supplement traditional production channels and provide growth opportunities in the servicing portfolio in stable and rising-rate periods.

Card Services

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN CARD SERVICES:

1. Charge volume — Represents the dollar amount of cardmember purchases, balance transfers and cash advance activity.

2. Net accounts opened — Includes originations, purchases and sales.

3. Merchant acquiring business — Represents an entity that processes payments for merchants. JPMorgan Chase is a partner in Chase Paymentech Solutions, LLC.

4. Bank card volume — Represents the dollar amount of transactions processed for the merchants.

5. Total transactions — Represents the number of transactions and authorizations processed for the merchants.

Page 33


JPMORGAN CHASE & CO. Line of Business Metrics (continued)

Commercial Banking

COMMERCIAL BANKING REVENUES COMPRISE THE FOLLOWING:

1. Lending includes a variety of financing alternatives, which are often provided on a basis secured by receivables, inventory, equipment, real estate or other assets. Products include term loans, revolving lines of credit, bridge financing, asset-backed structures, and leases.

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

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

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN COMMERCIAL BANKING:

1. Liability balances include deposits and deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, Fed funds purchased, and repurchase agreements).

2. IB revenues, gross — Represents total revenue related to investment banking products sold to CB clients.

Treasury & Securities Services

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

DESCRIPTION OF SELECTED BUSINESS METRICS WITHIN TREASURY & SECURITIES SERVICES:

Liability balances include deposits and deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, Fed funds purchased, and repurchase agreements).

Asset Management

Assets Under Management: Represent assets actively managed by Asset Management on behalf of institutional, private banking, private client services and retail clients. Excludes assets managed by American Century Companies, Inc., in which the Firm has a 44% ownership interest.

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

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

AM’s CLIENT SEGMENTS COMPRISE THE FOLLOWING:

1. Institutional brings comprehensive global investment services — including asset management, pension analytics, asset-liability management and active risk budgeting strategies — to corporate and public institutions, endowments, foundations, not-for-profit organizations and governments worldwide.

2. Retail provides worldwide investment management services and retirement planning and administration through third-party and direct distribution of a full range of investment vehicles.

3. The Private Bank addresses every facet of wealth management for ultra-high-net-worth individuals and families worldwide, including investment management, capital markets and risk management, tax and estate planning, banking, capital raising and specialty-wealth advisory services.

4. Private Client Services offers high-net-worth individuals, families and business owners in the United States comprehensive wealth management solutions, including investment management, capital markets and risk management, tax and estate planning, banking, and specialty-wealth advisory services.

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