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

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))

 

 

Item 2.02 Results of Operations and Financial Condition

On January 15, 2009, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2008 fourth quarter net income of $702 million, or $0.07 per share, compared with net income of $3.0 billion, or $0.86 per share, for the fourth quarter of 2007. A copy of the 2008 fourth quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.

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

This current report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 actual results to differ materially from those described in the forward-looking statements can be found in the Firm’s Quarterly Reports on Form 10-Q for the quarters ended September 30, 2008, June 30, 2008, and March 31, 2008, and its Annual Report on Form 10-K for the year ended December 31, 2007, each of which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase’s website (www.jpmorganchase.com) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit Number		Description of Exhibit
12.1		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges
12.2		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1		JPMorgan Chase & Co. Earnings Release — Fourth Quarter 2008 Results
99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement — Fourth Quarter 2008

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: January 15, 2009

EXHIBIT INDEX

Exhibit Number		Description of Exhibit
12.1		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges
12.2		JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1		JPMorgan Chase & Co. Earnings Release — Fourth Quarter 2008 Results
99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement — Fourth Quarter 2008

Exhibit 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges

Year ended December 31, (in millions, except ratios)		2008
Excluding interest on deposits
Income before income tax expense and extraordinary gain		$	2,773
Fixed charges:
Interest expense			19,693
One-third of rents, net of income from subleases (a)			507
Total fixed charges			20,200
Add: Equity in undistributed loss of affiliates			623
Income before income tax expense and extraordinary gain and fixed charges, excluding capitalized interest		$	23,596
Fixed charges, as above		$	20,200
Ratio of earnings to fixed charges			1.17
Including interest on deposits
Fixed charges, as above		$	20,200
Add: Interest on deposits			14,546
Total fixed charges and interest on deposits		$	34,746
Income before income tax expense and extraordinary gain and fixed charges, excluding capitalized interest, as above		$	23,596
Add: Interest on deposits			14,546
Total income before income tax expense and extraordinary gain, fixed charges and interest on deposits		$	38,142
Ratio of earnings to fixed charges			1.10

Exhibit 12.2

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges
and Preferred Stock Dividend Requirements

Year ended December 31, (in millions, except ratios)		2008
Excluding interest on deposits
Income before income tax expense and extraordinary gain		$	2,773
Fixed charges:
Interest expense			19,693
One-third of rents, net of income from subleases (a)			507
Total fixed charges			20,200
Add: Equity in undistributed loss of affiliates			623
Income before income tax expense and extraordinary gain and fixed charges, excluding capitalized interest		$	23,596
Fixed charges, as above		$	20,200
Preferred stock dividends (pre-tax)			803
Fixed charges including preferred stock dividends		$	21,003
Ratio of earnings to fixed charges and preferred stock dividend requirements			1.12
Including interest on deposits
Fixed charges including preferred stock dividends, as above		$	21,003
Add: Interest on deposits			14,546
Total fixed charges including preferred stock dividends and interest on deposits		$	35,549
Income before income tax expense and extraordinary gain and fixed charges, excluding capitalized interest, as above		$	23,596
Add: Interest on deposits			14,546
Total income before income tax expense and extraordinary gain, fixed charges and interest on deposits		$	38,142
Ratio of earnings to fixed charges and preferred stock dividend requirements			1.07

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 FULL-YEAR 2008 NET INCOME OF $5.6 BILLION,
OR $1.37 PER SHARE, ON REVENUE OF $67.3 BILLION;
FOURTH-QUARTER 2008 NET INCOME OF $702 MILLION, OR $0.07 PER SHARE

•

Reported the following significant items in the fourth quarter:

	-		$4.1 billion (pretax) increase to loan loss reserves, resulting in coverage ratios of 4.24%1 for consumer businesses and 2.64% for wholesale businesses
	-		$2.9 billion (pretax) net markdowns due to leveraged lending exposures and mortgage-related positions in the Investment Bank
	-		$1.1 billion (aftertax) benefit from merger-related items
	-		$854 million (aftertax) benefit from MSR risk management results
	-		$680 million (aftertax) private equity write-downs
	-		$627 million (aftertax) gain due to dissolution of Paymentech joint venture

	•		Maintained strong balance sheet, with Tier 1 capital of $136.2 billion, or 10.8% (estimated), at year-end
	•		Grew the franchise in 2008, as demonstrated by the following accomplishments2:

	-		More than one million new checking accounts opened in Retail Financial Services
	-		Double-digit growth in loans and liability balances in Commercial Banking and in liability balances in Treasury & Securities Services
	-		#1 rankings for Global Investment Banking Fees and Global Debt, Equity & Equity-related volumes for the fourth quarter and full-year 20082

•

Continued to focus on safe and sound lending activities, and launched significant enhancements to mortgage modification programs:

	-		Extended more than $100 billion in new credit during the fourth quarter to consumers, corporations, small businesses, municipalities, and non-profits during the fourth quarter alone (including more than five million card, home equity, mortgage, auto and education loans)
	-		Announced plan to help 400,000 U.S. homeowners avoid foreclosure over the next two years through loan modifications

New York, January 15, 2009 – JPMorgan Chase & Co. (NYSE: JPM) today reported fourth-quarter 2008 net income of $702 million, compared with net income of $3.0 billion in the fourth quarter of 2007. Earnings per share were $0.07, compared with $0.86 in the fourth quarter of 2007. For the full year 2008, net income was $5.6 billion, or $1.37 per share, down 64% from $15.4 billion, or $4.38 per share, in 2007.

Investor Contact: Julia Bates (212) 270-7325		Media Contact: Joe Evangelisti (212) 270-7438

J.P. Morgan Chase & Co.
News Release

Jamie Dimon, Chairman and Chief Executive Officer, commented: “Our fourth-quarter financial results were very disappointing, driven by a loss in Investment Banking largely attributable to continued markdowns on leveraged loans and mortgage trading positions, as well as weak trading results. We also faced higher credit costs associated with continued deterioration across our loan portfolios, including a $4.1 billion addition to loan loss reserves. However, we continued to see underlying growth in many business areas. The integration of our recently-acquired Washington Mutual franchise has progressed well, and we continued to grow in Treasury & Securities Services and Commercial Banking. We also opened millions of new checking and credit card accounts, experienced net inflows in assets under management, and gained Investment Banking market share in all major fee categories.”

As of December 31, 2008, the firm reported a Tier 1 capital ratio of 10.8% (estimated). During the year, the firm increased its total allowance for loan losses to $23.2 billion, resulting in a firmwide coverage ratio of 3.16%⁴. Dimon commented, “While the diversified nature of our franchise and strong capital position have enabled us to weather the recessionary environment so far, we added $13.9 billion to our allowance for loan losses in 2008 to keep this important component of our fortress balance sheet firmly intact.”

Looking ahead to 2009, Dimon continued: “If the economic environment deteriorates further, which is a distinct possibility, it is reasonable to expect additional negative impact on our market-related businesses, continued higher loan losses and increases to our credit reserves.”

“We are doing our part to help stabilize the financial markets and hasten recovery. We assumed risk and expended resources to assimilate Bear Stearns and Washington Mutual. We continued to lend in a safe and sound manner – extending more than $100 billion in new credit in the fourth quarter alone to consumers, businesses, municipalities, and non-profit organizations. We also prevented more than 300,000⁵ foreclosures, and we plan to help more than 300,000 more families keep their homes through mortgage modifications over the next two years. In addition, we currently have billions invested in renewable energy projects, including wind farms and solar facilities, to provide green energy for the current and future generations.”

Dimon added: “JPMorgan Chase’s management team is working diligently to manage through this very difficult business climate, and to position the franchise to benefit when the economy eventually recovers. No matter how difficult the environment may get, we at JPMorgan Chase remain fully committed to delivering for our clients, supporting our franchise, and doing all we can to help restore broad-based economic growth and prosperity.”

In the discussion below of the business segments and of JPMorgan Chase as a firm, 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).

Commencing this quarter: (1) RFS has been resegmented into two reporting segments; and (2) prime mortgage balances originated in RFS but previously reported in Corporate/Private Equity are now being reported in RFS. In addition, end-of-period third quarter balance sheet amounts related to assets acquired and liabilities assumed from Washington Mutual Bank have been reclassified into the

J.P. Morgan Chase & Co.
News Release

appropriate business segment for the 2008 third quarter. For further information, see JPMorgan Chase’s Earning Release Financial Supplement filed by the Firm today.

The following discussion compares the fourth quarter of 2008 with the fourth quarter of 2007 unless otherwise noted.

INVESTMENT BANK (IB)

Results for IB														3Q08								4Q07
($ millions)		4Q08				3Q08				4Q07				$ O/(U)				O/(U) %				$ O/(U)				O/(U) %
Net Revenue		$	(302	)		$	4,035			$	3,172			$	(4,337	)		NM				$	(3,474	)		NM
Provision for Credit Losses			765				234				200				531			227					565			283
Noninterest Expense			2,741				3,816				3,011				(1,075	)			(28	%)			(270	)			(9	%)
Net Income/(Loss)		$	(2,364	)		$	882			$	124			$	(3,246	)		NM				$	(2,488	)		NM

Discussion of Results:

Net loss was $2.4 billion, a decrease of $2.5 billion from the prior year. The weaker results reflected a decrease in net revenue and a higher provision for credit losses, partially offset by lower noninterest expense.

Net revenue was negative $302 million, a decrease of $3.5 billion from the prior year. Investment banking fees were $1.4 billion, down 17% from the prior year. Advisory fees were $579 million, down 10% from the prior year, reflecting decreased levels of activity, partially offset by improved market share. Debt underwriting fees were $464 million, down 1% from the prior year. Equity underwriting fees were $330 million, down 39% from the prior year. Fixed Income Markets revenue was negative $1.7 billion, compared with $615 million in the prior year. The decrease was driven by $1.8 billion of net markdowns on leveraged lending funded and unfunded commitments; $1.1 billion of net markdowns on mortgage-related exposures; weak trading results in credit-related products; and losses of $367 million from the tightening of the firm’s credit spread on certain structured liabilities. These results were largely offset by record performance in rates and currencies and strong performance in commodities and emerging markets. Equity Markets revenue was negative $94 million, down by $672 million from the prior year, reflecting weak trading results and losses of $354 million from the tightening of the firm’s credit spread on certain structured liabilities, partially offset by strong client revenue across products, including prime services. Credit Portfolio revenue was $90 million, down $232 million from the prior year.

The provision for credit losses was $765 million, compared with $200 million in the prior year, predominantly reflecting a higher allowance driven by a weakening credit environment. Net charge-offs were $87 million, compared with net recoveries of $9 million in the prior year. The allowance for loan losses to average loans retained was 4.71% for the current quarter, an increase from 1.93% in the prior year.

Average loans retained were $73.1 billion, an increase of $4.2 billion, or 6%, from the prior year. Average fair-value and held-for-sale loans were $16.4 billion, down $8.6 billion, or 34%, from the prior year.

Noninterest expense was $2.7 billion, down 9% from the prior year, reflecting lower performance-based compensation expense, largely offset by additional expenses relating to the Bear Stearns merger.

J.P. Morgan Chase & Co.
News Release

revenue was $4.5 billion, up to $2.0 billion, or 78%, reflecting the impact of the Washington Mutual transaction, wider deposit spreads, higher deposit-related fees, and higher deposit balances. The provision for credit losses was $268 million, compared with $50 million in the prior year, reflecting an increase in the allowance for loan losses for Business Banking loans due to higher estimated losses on the portfolio. Noninterest expense was $2.5 billion, up $965 million, or 62%, from the prior year, due to the Washington Mutual transaction.

  Key Metrics and Business Updates:
  ^{(All comparisons to the prior-year quarter except as noted)}

	§		Checking accounts totaled 24.5 million, including 12.6 million attributable to the Washington Mutual transaction, an increase of 13.7 million, or 126%.
	§		Average total deposits grew to $339.8 billion, including $126.3 billion attributable to the Washington Mutual transaction, an increase of $131.4 billion, or 63%.
	§		Deposit margin increased to 2.94% from 2.67%.
	§		Average business banking loans were $18.2 billion and originations were $0.8 billion.
	§		Number of branches grew to 5,474, including 2,237 attributable to the Washington Mutual transaction, up 2,322 overall.
	§		Branch sales of credit cards increased by 56%.
	§		Branch sales of investment products decreased by 4%.
	§		Overhead ratio (excluding amortization of core deposit intangibles) decreased to 54% from 57%.

Consumer Lending, which includes the results of all consumer loan origination, servicing, and portfolio management activities, reported a net loss of $416 million, compared with net income of $170 million in the prior year. Net revenue was $4.2 billion, up $1.9 billion, or 85%, driven by higher mortgage fees and related income, the Washington Mutual transaction, wider loan spreads and higher loan balances.

The increase in mortgage fees and related income was driven by higher net mortgage servicing revenue, partially offset by lower mortgage production revenue. Mortgage production revenue of $62 million was down $103 million, reflecting markdowns of the mortgage warehouse and an increase in reserves related to the repurchase of previously-sold loans. Net mortgage servicing revenue (which includes loan servicing revenue, MSR risk management results and other changes in fair value) was $1.9 billion, an increase of $1.2 billion, or 163%, from the prior year. Loan servicing revenue was $1.4 billion, an increase of $741 million on growth of 91% in third-party loans serviced. MSR risk management results were positive $1.4 billion, compared with positive $491 million in the prior year. Other changes in fair value of the MSR asset were negative $843 million, compared with negative $393 million in the prior year.

The provision for credit losses was $3.3 billion, compared with $1.0 billion in the prior year. The provision reflected weakness in the home equity and mortgage portfolios (see Retail Financial Services discussion of the provision for credit losses above for further detail).

Noninterest expense was $1.5 billion, up $540 million, or 55%, from the prior year, reflecting the impact of the Washington Mutual transaction, higher mortgage reinsurance losses and higher servicing expense due to increased delinquencies and defaults.

J.P. Morgan Chase & Co.
News Release

  Key Metrics and Business Updates:
  ^{(All comparisons to the prior-year quarter except as noted)}

	§		Average mortgage loans were $150.0 billion, up $105.5 billion, or 237%, due to the Washington Mutual transaction. Mortgage loan originations were $28.1 billion, down 30% from the prior year and down 25% from the prior quarter.
	§		Total third-party mortgage loans serviced were $1.2 trillion, an increase of $557.9 billion, or 91%, predominantly due to the Washington Mutual transaction.
	§		Average home equity loans were $142.8 billion, up $48.8 billion, or 52%, due to the Washington Mutual transaction. Home equity originations were $1.7 billion, down $8.1 billion, or 83%.
	§		Average auto loans were $42.9 billion, up 3%. Auto loan originations were $2.8 billion, down 50%, reflecting industry-wide weakness in auto sales.

CARD SERVICES (CS)^(a)

Results for CS														3Q08								4Q07
($ millions)		4Q08				3Q08				4Q07				$ O/(U)				O/(U) %				$ O/(U)				O/(U) %
Net Revenue		$	4,908			$	3,887			$	3,971			$	1,021				26	%		$	937				24	%
Provision for Credit Losses			3,966				2,229				1,788				1,737				78				2,178				122
Noninterest Expense			1,489				1,194				1,223				295				25				266				22
Net Income/(Loss)		$	(371	)		$	292			$	609			$	(663	)			(227	)%		$	(980	)			(161	)%

Discussion of Results:

Net loss was $371 million, a decline of $980 million from the prior year. The decrease was driven by a higher provision for credit losses, partially offset by higher net revenue.

End-of-period managed loans were $190.3 billion, an increase of $33.3 billion, or 21%, from the prior year and up $3.8 billion, or 2%, from the prior quarter. Average managed loans were $187.3 billion, an increase of $35.6 billion, or 23%, from the prior year and up $29.7 billion, or 19%, from the prior quarter. The increase from the prior year in both end-of-period and average managed loans was predominantly due to the impact of the Washington Mutual transaction. Excluding Washington Mutual, end-of-period and average managed loans were $162.1 billion and $159.6 billion, respectively.

Managed net revenue was $4.9 billion, an increase of $937 million, or 24%, from the prior year. Net interest income was $4.3 billion, up $1.2 billion, or 38%, from the prior year, driven by the impact of the Washington Mutual transaction, higher average managed loan balances, and wider loan spreads. These benefits were offset partially by the effect of higher revenue reversals associated with higher charge-offs. Noninterest revenue was $590 million, a decrease of $244 million, or 29%, from the prior year, driven by lower securitization income as well as increased rewards expense and higher volume-driven payments to partners, partially offset by the impact of the Washington Mutual transaction.

The managed provision for credit losses was $4.0 billion, an increase of $2.2 billion, or 122%, from the prior year, due to an increase of $1.1 billion in the allowance for loan losses and a higher level of charge-offs. The managed net charge-off rate for the quarter was 5.56%, up from 3.89% in the prior year and 5.00% in the prior quarter. The 30-day managed delinquency rate was 4.97%, up from 3.48% in the prior year and 3.91% in the prior quarter. Excluding Washington Mutual, the managed net charge-off rate for the fourth quarter was 5.29% and the 30-day delinquency rate was 4.36%.

J.P. Morgan Chase & Co.
News Release

Noninterest expense was $1.5 billion, an increase of $266 million, or 22%, from the prior year, due to the impact of the Washington Mutual transaction.

  Key Metrics and Business Updates:
  ^{(All comparisons to the prior-year quarter except as noted)}

	§		Return on equity was negative 10%, down from positive 17% in the prior year.
	§		Pretax income to average managed loans (ROO) was negative 1.16%, compared with positive 2.51% in the prior year and positive 1.17% in the prior quarter.
	§		Net interest income as a percentage of average managed loans was 9.17%, up from 8.20% in the prior year and 8.18% in the prior quarter. Excluding Washington Mutual, the ratio was 8.18%.
	§		Net accounts of 4.3 million were opened during the quarter. Excluding Washington Mutual, net accounts opened were 3.8 million.
	§		Charge volume was $96.0 billion, an increase of $0.5 billion, or 1%, from the prior year. Excluding Washington Mutual, charge volume was $88.2 billion.
	§		Merchant processing volume was $135.1 billion and total transactions were 4.9 billion.
	§		The termination of Chase Paymentech Solutions, a global payments and merchant-acquiring joint venture between JPMorgan Chase and First Data Corporation, was completed on November 1, 2008. JPMorgan Chase retained approximately 51% of the business under the Chase Paymentech name.

COMMERCIAL BANKING (CB)

Results for CB														3Q08								4Q07
($ millions)		4Q08				3Q08				4Q07				$ O/(U)				O/(U) %				$ O/(U)				O/(U) %
Net Revenue		$	1,479			$	1,125			$	1,084			$	354				31	%		$	395				36	%
Provision for Credit Losses			190				126				105				64				51				85				81
Noninterest Expense			499				486				504				13				3				(5	)			(1	)
Net Income		$	480			$	312			$	288			$	168				54	%		$	192				67	%

Discussion of Results:

Net income was a record $480 million, an increase of $192 million, or 67%, from the prior year, driven by higher net revenue including the impact of the Washington Mutual transaction, offset partially by higher provision for credit losses.

Net revenue was $1.5 billion, an increase of $395 million, or 36%, from the prior year. Net interest income was $1.1 billion, up $345 million, or 46%, from the prior year, driven by the Washington Mutual transaction, double-digit growth in liability and loan balances, and a shift to higher spread liability products, partially offset by spread compression in the liability and loan portfolios. Noninterest revenue was $376 million, an increase of $50 million, or 15%, from the prior year, reflecting higher deposit and lending-related fees, partially offset by lower other income.

Revenue from Middle Market Banking was $796 million, an increase of $101 million, or 15%, from the prior year. Revenue from Commercial Term Lending, a new client segment encompassing multi-family and commercial mortgage loans, was $243 million. Revenue from Mid-Corporate Banking was $243 million, an increase of $4 million, or 2%. Revenue from Real Estate Banking was $131 million, an increase of $29 million, or 28%, due to the impact of the Washington Mutual transaction.

J.P. Morgan Chase & Co.
News Release

The provision for credit losses was $190 million, an increase of $85 million, or 81%, compared with the prior year. The current-quarter provision reflects a weakening credit environment. The allowance for loan losses to average loans retained was 2.41% for the current quarter, down from 2.66% in the prior year and up from 2.32% in the prior quarter, reflecting the changed mix of the loan portfolio as a result of the Washington Mutual transaction. Nonperforming loans were $1.0 billion, up $880 million from the prior year and up $182 million from the prior quarter, reflecting the impact of the Washington Mutual transaction and the effect across all business segments of a weakening credit environment. Net charge-offs were $118 million (0.40% net charge-off rate), compared with $33 million (0.21% net charge-off rate) in the prior year and $40 million (0.22% net charge-off rate) in the prior quarter.

Noninterest expense was $499 million, a decrease of $5 million, or 1%, from the prior year, due to lower performance-based compensation expense, largely offset by the impact of the Washington Mutual transaction.

  Key Metrics and Business Updates:
  ^{(All comparisons to the prior-year quarter except as noted)}

	§		Overhead ratio was 34%, an improvement from 46%.
	§		Gross investment banking revenue (which is shared with the Investment Bank) was $241 million.
	§		Average loan balances were $117.7 billion, up $52.1 billion, or 80%, from the prior year and up $45.4 billion, or 63%, from the prior quarter.
	§		Average liability balances were $114.1 billion, up $17.4 billion, or 18%, from the prior year and up $14.7 billion, or 15%, from the prior quarter.

TREASURY & SECURITIES SERVICES (TSS)

Results for TSS														3Q08								4Q07
($ millions)		4Q08				3Q08				4Q07				$ O/(U)				O/(U) %				$ O/(U)				O/(U) %
Net Revenue		$	2,249			$	1,953			$	1,930			$	296				15	%		$	319				17	%
Provision for Credit Losses			45				18				4				27				150				41			NM
Noninterest Expense			1,339				1,339				1,222				—				—				117				10
Net Income		$	533			$	406			$	422			$	127				31	%		$	111				26	%

Discussion of Results:

Net income was a record $533 million, an increase of $111 million, or 26%, from the prior year, driven by higher net revenue, partially offset by higher noninterest expense.

Net revenue was a record $2.2 billion, an increase of $319 million, or 17%, from the prior year. Worldwide Securities Services net revenue was a record $1.3 billion, an increase of $150 million, or 14%, from the prior year. The growth was driven by higher liability balances, reflecting increased client deposit activity resulting from recent market conditions, and wider spreads in foreign exchange. These benefits were offset partially by the effects of market depreciation and lower securities lending balances. Treasury Services net revenue was a record $1.0 billion, an increase of $169 million, or 21%, reflecting higher liability balances and higher trade revenue. Liability balance revenue growth reflects increased client deposit activity, resulting from recent market conditions and organic growth, partially offset by spread compression. Trade revenue benefited from higher volumes and wider loan spreads. TSS firmwide net revenue, which includes Treasury Services net revenue recorded in other lines of business, grew to $3.1 billion, an increase of $454 million, or 17%. Treasury Services firmwide net revenue grew to $1.8 billion, an increase of $304 million, or 20%.

J.P. Morgan Chase & Co.
News Release

The provision for credit losses was $45 million, an increase of $41 million from prior year, reflecting a weakening credit environment.

Noninterest expense was $1.3 billion, an increase of $117 million, or 10%, from the prior year, reflecting higher expense related to business and volume growth as well as continued investment in new product platforms.

  Key Metrics and Business Updates:
  ^{(All comparisons to the prior-year quarter except as noted)}

	§		TSS pretax margin(2) was 37%, up from 29% in the prior quarter and 35% in the prior year.
	§		Average liability balances were $336.3 billion, up 34%.
	§		Assets under custody were $13.2 trillion, down 17%.
	§		Key new client relationships/services added in the fourth quarter:

	-		Chosen by ICE Clear Europe to provide a comprehensive solution combining multi-currency payments, cash investment and global custody capabilities; ICE Clear Europe provides clearing services for all ICE Futures Europe contracts and all cleared OTC contracts transacted in ICE’s global OTC markets.
	-		Appointed by Roche Holding Ltd as the successor depositary bank for Roche’s ADR program, one of the top-10 ADR programs in Europe and among the most actively traded.
	-		Expanded relationship with the U.S. Postal Service to include cash and check depository processing services.
	-		Selected by Augustus Asset Managers Limited to provide Fund Administration and Middle Office services to the majority of its managed hedge funds.

ASSET MANAGEMENT (AM)

Results for AM														3Q08								4Q07
($ millions)		4Q08				3Q08				4Q07				$ O/(U)				O/(U) %				$ O/(U)				O/(U) %
Net Revenue		$	1,658			$	1,961			$	2,389			$	(303	)			(15	)%			$(731	)			(31	)%
Provision for Credit Losses			32				20				(1	)			12				60				33			NM
Noninterest Expense			1,213				1,362				1,559				(149	)			(11	)			(346	)			(22	)
Net Income		$	255			$	351			$	527			$	(96	)			(27	)%			$(272	)			(52	)%

Discussion of Results:

Net income was $255 million, a decline of $272 million, or 52%, from the prior year, due to lower net revenue offset partially by lower noninterest expense.

Net revenue was $1.7 billion, a decrease of $731 million, or 31%, from the prior year. Noninterest revenue was $1.2 billion, a decline of $868 million, or 42%, due to the effect of lower markets, including the impact of lower market valuations of seed capital investments and lower performance fees; these effects were offset partially by the benefit of the Bear Stearns merger. Net interest income was $466 million, up $137 million, or 42%, from the prior year, predominantly due to wider deposit spreads and higher deposit and loan balances.

Private Bank revenue declined 3% to $630 million, as the effects of lower markets and lower performance fees were predominantly offset by increased deposit and loan balances. Private

J.P. Morgan Chase & Co.
News Release

Wealth Management revenue declined 4% to $330 million due to lower assets under management. Institutional revenue declined 57% to $327 million due to lower performance fees and lower market valuations of principal investments, partially offset by net liquidity inflows. Retail revenue decreased by 59% to $265 million due to the effect of lower markets, including the impact of lower market valuations of seed capital investments and net equity outflows. Bear Stearns Brokerage contributed $106 million to revenue.

Assets under supervision were $1.5 trillion, a decrease of $76 billion, or 5%, from the prior year. Assets under management were $1.1 trillion, down $60 billion, or 5%, from the prior year. The decrease was due to the effect of lower markets and non-liquidity outflows, predominantly offset by liquidity product inflows across all segments and the addition of Bear Stearns assets under management. Custody, brokerage, administration and deposit balances were $363 billion, down $16 billion due to the effect of lower markets on brokerage and custody balances, offset by the addition of Bear Stearns Brokerage.

The provision for credit losses was $32 million, compared with negative $1 million in the prior year, reflecting a weakening credit environment.

Noninterest expense of $1.2 billion decreased $346 million, or 22%, from the prior year due to lower performance-based compensation, partially offset by the effect of the Bear Stearns merger.

  Key Metrics and Business Updates:
  ^{(All comparisons to the prior-year quarter except as noted)}

	§		Pretax margin(2) was 25%, down from 35%.
	§		Assets under management were $1.1 trillion, down $60 billion, or 5%, included:

	—		Growth of $213 billion, or 53%, in liquidity products; and
	—		The addition of $15 billion from the Bear Stearns merger.

	§		Assets under management net inflows were $61 billion for the fourth quarter of 2008. Net inflows were $151 billion for the 12-month period ended December 31, 2008.
	§		Assets under management ranked in the top two quartiles for investment performance were 76% over five years, 65% over three years and 54% over one year.
	§		Customer assets in 4 and 5 Star–rated funds were 42%.
	§		Average loans of $36.9 billion were up $4.2 billion, or 13%.
	§		Average deposits of $76.9 billion were up $12.3 billion, or 19%.

J.P. Morgan Chase & Co.
News Release

CORPORATE/PRIVATE EQUITY

Results for Corporate/Private														3Q08								4Q07
Equity ($ millions)		4Q08				3Q08				4Q07				$ O/(U)				O/(U) %				$ O/(U)				O/(U) %
Net Revenue		$	432				$(1,836	)		$	933			$	2,268			NM					$(501	)			(54	)%
Provision for Credit Losses			(33	)			1,977				2				(2,010	)		NM					(35	)		NM
Noninterest Expense			(72	)			161				660				(233	)		NM					(732	)		NM
Extraordinary Gain			1,325				581				—				744				128				1,325			NM
Net Income/(Loss)		$	1,545				$(1,780	)		$	270			$	3,325			NM				$	1,275			472

Discussion of Results:

Net income for Corporate/Private Equity was $1.5 billion, compared with net income of $270 million in the prior year. This segment includes the results of Private Equity and Corporate business segments, as well as merger-related items.

Net loss for Private Equity was $682 million, compared with net income of $356 million in the prior year. Net revenue was negative $1.1 billion, a decrease of $1.8 billion, reflecting Private Equity write-downs of $1.1 billion, compared with gains of $712 million in the prior year. Noninterest expense was negative $40 million, a decrease of $173 million from the prior year, reflecting lower compensation expense.

Net income for Corporate was $1.2 billion, compared with a net loss of $72 million in the prior year, and included an after-tax gain of $627 million on the dissolution of the Chase Paymentech joint venture.

Net after-tax merger-related items included a $1.3 billion extraordinary gain, net costs of $60 million related to the Washington Mutual transaction, and net costs of $201 million related to the Bear Stearns merger.

   Key Metrics and Business Updates:
  ^{(All comparisons to the prior-year quarter except as noted)}

§

The Private Equity portfolio totaled $6.9 billion, compared with $7.2 billion in the prior year and $7.5 billion in the prior quarter. The portfolio represented 5.8% of total stockholders’ equity less goodwill, down from 9.2% in the prior year and 7.5% in the prior quarter.

J.P. Morgan Chase & Co.
News Release

JPMORGAN CHASE (JPM)^(a)

Results for JPM(a)														3Q08								4Q07
($ millions)		4Q08				3Q08				4Q07				$ O/(U)				O/(U) %				$ O/(U)				O/(U) %
Net Revenue		$	19,108			$	16,088			$	18,275			$	3,020				19	%		$	833				5	%
Provision for Credit Losses			8,541				6,660				3,161				1,881				28				5,380				170
Noninterest Expense			11,255				11,137				10,720				118				1				535				5
Extraordinary Gain			1,325				581				—				744				128				1,325			NM
Net Income		$	702			$	527			$	2,971			$	175				33	%		$	(2,269	)			(76	)%

Discussion of Results:

Net income was $702 million, a decrease of $2.3 billion, or 76%, from the prior year. The decline in earnings was driven by a higher provision for credit losses and increased noninterest expense.

Managed net revenue was $19.1 billion, an increase of $833 million, or 5%, from the prior year. Noninterest revenue was $3.2 billion, down $6.2 billion, or 66%, due to lower principal transactions revenue, which reflected net markdowns on leveraged lending funded and unfunded commitments and mortgage-related exposures, and Private Equity write-downs. Partially offsetting these declines were the gain on the dissolution of the Chase Paymentech joint venture and positive MSR risk management results. Net interest income was $15.9 billion, up $7.1 billion, or 80%, due to the impact of the Washington Mutual transaction, higher trading-related net interest income, higher liability and loan balances, and wider loan and deposit spreads.

The managed provision for credit losses was $8.5 billion, up $5.4 billion, or 170%, from the prior year. The total consumer-managed provision for credit losses was $7.4 billion, compared with $2.9 billion in the prior year, reflecting increases in the allowance for credit losses related to home equity, mortgage and credit card loans, as well as higher net charge-offs. Consumer-managed net charge-offs were $4.3 billion, compared with $2.0 billion in the prior year, resulting in managed net charge-off rates of 3.61% and 2.22%, respectively. The wholesale provision for credit losses was $1.1 billion, compared with $308 million in the prior year, due to an increase in the allowance for credit losses reflecting the effect of a weakening credit environment. Wholesale net charge-offs were $217 million, compared with net charge-offs of $25 million, resulting in net charge-off rates of 0.33% and 0.05%, respectively. The firm had total nonperforming assets of $12.7 billion at December 31, 2008, up from the prior-year level of $3.9 billion.

Noninterest expense was $11.3 billion, up $535 million, or 5%, from the prior year. The increase was driven by the impact of the Washington Mutual transaction and additional operating costs relating to the Bear Stearns merger, partially offset by lower compensation expense.

Key Metrics and Business Updates:
  ^{(All comparisons to the prior-year quarter except as noted)}

	§		Tier 1 capital ratio was 10.8% at December 31, 2008 (estimated), 8.9% at September 30, 2008, and 8.4% at December 31, 2007.
	§		Headcount was 224,961 at December 31, 2008, which includes 41,398 from the acquisition of Washington Mutual’s banking operations. The remaining 183,563, which includes headcount from the Bear Stearns merger, reflects an increase of 2,896 from December 31, 2007.

J.P. Morgan Chase & Co.
News Release

Notes:

1. In addition to analyzing the firm’s results on a reported basis, management analyzes the firm’s results and the results of the lines of business on a managed basis, which is a non-GAAP financial measure. The firm’s definition of managed basis starts with the reported U.S. GAAP results and includes 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 8 of JPMorgan Chase’s Earnings Release Financial Supplement (fourth quarter of 2008) for a reconciliation of JPMorgan Chase’s income statement from a reported basis to a 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.

J.P. Morgan Chase & Co.
News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 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 & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan, Chase, and WaMu brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

JPMorgan Chase will host a conference call today at 7:45 a.m. (Eastern Time) to review fourth-quarter financial results. The general public can access the call by dialing (866) 541-2724 or (877) 368-8360 in the U.S. and Canada; (706) 902-3714 for International participants. The live audio webcast and presentation slides will be available at the firm’s website www.jpmorganchase.com under Investor Relations, Investor Presentations.

A replay of the conference call will be available beginning at approximately 11:00 a.m. on Thursday, January 15, through midnight, Friday, January 30, by telephone at (800) 642-1687 (U.S. and Canada) or (706) 634-7246 (International). The replay will also be available via webcast on www.jpmorganchase.com under Investor Relations, Investor Presentations. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available at: www.jpmorganchase.com.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase’s Quarterly Reports on Form 10-Q for the quarters ended September 30, 2008, June 30, 2008 and March 31, 2008, and its Annual Report on Form 10-K for the year ended December 31, 2007, each of which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase’s website (www.jpmorganchase.com), and on the Securities and Exchange Commission’s website. JPMorgan Chase does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

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

		QUARTERLY TRENDS																				FULL YEAR
														4Q08 Change																2008 Change
		4Q08				3Q08				4Q07				3Q08				4Q07				2008				2007				2007
SELECTED INCOME STATEMENT DATA
Total net revenue		$	17,226			$	14,737			$	17,384				17	%			(1)	%		$	67,252			$	71,372				(6)	%
Provision for credit losses (a)			7,313				5,787				2,542				26				188				20,979				6,864				206
Total noninterest expense			11,255				11,137				10,720				1				5				43,500				41,703				4
Income (loss) before extraordinary gain			(623	)			(54	)			2,971				NM				NM				3,699				15,365				(76	)
Extraordinary gain (b)			1,325				581				—				128				NM				1,906				—				NM
Net income			702				527				2,971				33				(76	)			5,605				15,365				(64	)
PER COMMON SHARE:
Basic Earnings
Income (loss) before extraordinary gain			(0.28	)			(0.06	)			0.88				(367	)			NM				0.86				4.51				(81	)
Net income			0.07				0.11				0.88				(36	)			(92	)			1.41				4.51				(69	)
Diluted Earnings
Income (loss) before extraordinary gain			(0.28	)			(0.06	)			0.86				(367	)			NM				0.84				4.38				(81	)
Net income			0.07				0.11				0.86				(36	)			(92	)			1.37				4.38				(69	)
Cash dividends declared			0.38				0.38				0.38				—				—				1.52				1.48				3
Book value			36.15				36.95				36.59				(2	)			(1	)			36.15				36.59				(1	)
Closing share price			31.53				46.70				43.65				(32	)			(28	)			31.53				43.65				(28	)
Market capitalization			117,695				174,048				146,986				(32	)			(20	)			117,695				146,986				(20	)
COMMON SHARES OUTSTANDING:
Weighted-average diluted shares outstanding			3,737.5	(h)			3,444.6	(h)			3,471.8				9				8				3,604.9				3,507.6				3
Common shares outstanding at period-end (c)			3,732.8				3,726.9				3,367.4				—				11				3,732.8				3,367.4				11
FINANCIAL RATIOS: (d)
Income (loss) before extraordinary gain:
Return on common equity (“ROE”)			(3)	%			(1)	%			10	%											2	%			13	%
Return on equity-goodwill (“ROE-GW”) (e)			(5	)			(1	)			15												4				21
Return on assets (“ROA”)			(0.11	)			(0.01	)			0.77												0.21				1.06
Net income:
ROE			1				1				10												4				13
ROE-GW (e)			1				2				15												6				21
ROA			0.13				0.12				0.77												0.31				1.06
CAPITAL RATIOS:
Tier 1 capital ratio			10.8	(i)			8.9				8.4
Total capital ratio			14.7	(i)			12.6				12.6
SELECTED BALANCE SHEET DATA (Period-end)
Total assets		$	2,175,052			$	2,251,469			$	1,562,147				(3	)			39			$	2,175,052			$	1,562,147				39
Wholesale loans			262,044				288,445				213,076				(9	)			23				262,044				213,076				23
Consumer loans			482,854				472,936				306,298				2				58				482,854				306,298				58
Deposits			1,009,277				969,783				740,728				4				36				1,009,277				740,728				36
Common stockholders’ equity			134,945				137,691				123,221				(2	)			10				134,945				123,221				10
Headcount (f)			224,961				228,452				180,667				(2	)			25				224,961				180,667				25
LINE OF BUSINESS NET INCOME (LOSS)
Investment Bank		$	(2,364	)		$	882			$	124				NM				NM			$	(1,175	)		$	3,139				NM
Retail Financial Services			624				64				731				NM				(15	)			880				2,925				(70	)
Card Services			(371	)			292				609				NM				NM				780				2,919				(73	)
Commercial Banking			480				312				288				54				67				1,439				1,134				27
Treasury & Securities Services			533				406				422				31				26				1,767				1,397				26
Asset Management			255				351				527				(27	)			(52	)			1,357				1,966				(31	)
Corporate/Private Equity (g)			1,545				(1,780	)			270				NM				472				557				1,885				(70	)
Net income		$	702			$	527			$	2,971				33				(76	)		$	5,605			$	15,365				(64	)

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2008

JPMORGAN CHASE & CO.
TABLE OF CONTENTS

		Page
Summary of Revisions			2
Consolidated Results
Consolidated Financial Highlights			4
Statements of Income			5
Consolidated Balance Sheets			6
Condensed Average Balance Sheets and Annualized Yields			7
Reconciliation from Reported to Managed Summary			8
Business Detail
Line of Business Financial Highlights — Managed Basis			9
Investment Bank			10
Retail Financial Services			13
Card Services — Managed Basis			19
Commercial Banking			22
Treasury & Securities Services			24
Asset Management			26
Corporate/Private Equity			29
Credit-Related Information			31
Market Risk-Related Information			36
Supplemental Detail
Capital, Intangible Assets and Deposits			37
Glossary of Terms			38

Revised Financial Disclosure

Commencing October 1, 2008, JPMorgan Chase &Co. (“JPMC” or the “Firm”) revised certain of its financial disclosures to reflect more closely the manner in which its business segments are now being managed. The revisions are reflected in the Firms’ financial reports and disclosures commencing with its report of financial results for the fourth quarter of 2008.

In summary, the changes that have been made in financial reporting disclosure are as follows:

1.

Retail Financial Services (“RFS”) — RFS has been reorganized, commencing October 1, 2008, into the following two business segments: Retail Banking and Consumer Lending. The chart on the following page provides a mapping of the previous segment reporting to the new RFS segments.

•

All prior periods have been reclassified to conform to current period presentation.

2.

Corporate/Private Equity & RFS — Prime mortgage balances that were originated in RFS and, prior to October 1, 2008, had been held in the Corporate/Private Equity segment have been transferred, effective October 1, 2008, to RFS and are included, for financial reporting and risk management purposes, in the Consumer Lending segment of RFS.

•

All prior periods have been reclassified to conform to current period presentation.

3.

Washington Mutual — As previously disclosed, the acquisition of the banking operations of Washington Mutual Bank (“WaMu”) from the Federal Deposit Insurance Corporation on September 25, 2008 did not have a material impact on the results of operations of the Firm for the quarter ended September 30, 2008, except with respect to the charge to conform WaMu’s loan loss reserves and the extraordinary gain related to the transaction, both of which were reflected in the Corporate/Private Equity segment. Commencing October 1, 2008, the assets acquired and liabilities assumed from WaMu were assigned to the appropriate lines of business, primarily RFS, Card Services and Commercial Banking, as well as to the Corporate/Private Equity segment. The results of operations resulting from such assets and liabilities have been reflected in each respective line of business starting in the fourth quarter of 2008. Disclosures related to these assets and liabilities have been enhanced as follows:

	•		WaMu balance sheet items at September 30, 2008 have been reclassified to the appropriate business segments and are reflected in end of period third quarter balance sheet amounts.
	•		In addition:
			RFS — the Consumer Lending loan balance and other balance-related credit data has been enhanced to provide detail on credit-impaired versus non-credit impaired balances.
			Card Services — Managed loan balances and selected key statistics for WaMu and heritage JPMorgan Chase — only are provided as supplemental information.
			Commercial Banking — Commercial Term Lending has been added as a client segment and includes WaMu’s multi-family and commercial mortgage business. All other WaMu-related commercial bank activities are reported in the Real Estate Banking or Other segments of Commercial Banking.

4.

Additional line item disclosures have been provided in this financial supplement as follows:

	•		RFS — Retail Banking deposit margin
	•		Commercial Banking — Nonperforming assets

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

		QUARTERLY TRENDS																												FULL YEAR
																						4Q08 Change																2008 Change
		4Q08				3Q08				2Q08				1Q08				4Q07				3Q08				4Q07				2008				2007				2007
SELECTED INCOME STATEMENT DATA
Total net revenue		$	17,226			$	14,737			$	18,399			$	16,890			$	17,384				17	%			(1	)%		$	67,252			$	71,372				(6)	%
Provision for credit losses (a)			7,313				5,787				3,455				4,424				2,542				26				188				20,979				6,864				206
Total noninterest expense			11,255				11,137				12,177				8,931				10,720				1				5				43,500				41,703				4
Income (loss) before extraordinary gain			(623	)			(54	)			2,003				2,373				2,971			NM				NM					3,699				15,365				(76	)
Extraordinary gain (b)			1,325				581				—				—				—				128			NM					1,906				—			NM
Net income			702				527				2,003				2,373				2,971				33				(76	)			5,605				15,365				(64	)
PER COMMON SHARE:
Basic Earnings
Income (loss) before extraordinary gain			(0.28	)			(0.06	)			0.56				0.70				0.88				(367	)		NM					0.86				4.51				(81	)
Net income			0.07				0.11				0.56				0.70				0.88				(36	)			(92	)			1.41				4.51				(69	)
Diluted Earnings
Income (loss) before extraordinary gain			(0.28	)			(0.06	)			0.54				0.68				0.86				(367	)		NM					0.84				4.38				(81	)
Net income			0.07				0.11				0.54				0.68				0.86				(36	)			(92	)			1.37				4.38				(69	)
Cash dividends declared			0.38				0.38				0.38				0.38				0.38				—				—				1.52				1.48				3
Book value			36.15				36.95				37.02				36.94				36.59				(2	)			(1	)			36.15				36.59				(1	)
Closing share price			31.53				46.70				34.31				42.95				43.65				(32	)			(28	)			31.53				43.65				(28	)
Market capitalization			117,695				174,048				117,881				146,066				146,986				(32	)			(20	)			117,695				146,986				(20	)
COMMON SHARES OUTSTANDING:
Weighted-average diluted shares outstanding			3,737.5	(h)			3,444.6	(h)			3,531.0				3,494.7				3,471.8				9				8				3,604.9				3,507.6				3
Common shares outstanding at period-end (c)			3,732.8				3,726.9				3,435.7				3,400.8				3,367.4				—				11				3,732.8				3,367.4				11
FINANCIAL RATIOS: (d)
Income (loss) before extraordinary gain:
Return on common equity (“ROE”)			(3)	%			(1)	%			6	%			8	%			10	%											2	%			13	%
Return on equity-goodwill (“ROE-GW”) (e)			(5	)			(1	)			10				12				15												4				21
Return on assets (“ROA”)			(0.11	)			(0.01	)			0.48				0.61				0.77												0.21				1.06
Net income:
ROE			1				1				6				8				10												4				13
ROE-GW (e)			1				2				10				12				15												6				21
ROA			0.13				0.12				0.48				0.61				0.77												0.31				1.06
CAPITAL RATIOS:
Tier 1 capital ratio			10.8	(i)			8.9				9.2				8.3				8.4
Total capital ratio			14.7	(i)			12.6				13.4				12.5				12.6
SELECTED BALANCE SHEET DATA (Period-end)
Total assets		$	2,175,052			$	2,251,469			$	1,775,670			$	1,642,862			$	1,562,147				(3	)			39			$	2,175,052			$	1,562,147				39
Wholesale loans			262,044				288,445				229,359				231,297				213,076				(9	)			23				262,044				213,076				23
Consumer loans			525,457				472,936				308,670				305,759				306,298				11				72				525,457				306,298				72
Deposits			1,009,277				969,783				722,905				761,626				740,728				4				36				1,009,277				740,728				36
Common stockholders’ equity			134,945				137,691				127,176				125,627				123,221				(2	)			10				134,945				123,221				10
Headcount (f)			224,961				228,452				195,594				182,166				180,667				(2	)			25				224,961				180,667				25
LINE OF BUSINESS NET INCOME (LOSS)
Investment Bank		$	(2,364	)		$	882			$	394			$	(87	)		$	124			NM				NM				$	(1,175	)		$	3,139			NM
Retail Financial Services			624				64				503				(311	)			731			NM					(15	)			880				2,925				(70	)
Card Services			(371	)			292				250				609				609			NM				NM					780				2,919				(73	)
Commercial Banking			480				312				355				292				288				54				67				1,439				1,134				27
Treasury & Securities Services			533				406				425				403				422				31				26				1,767				1,397				26
Asset Management			255				351				395				356				527				(27	)			(52	)			1,357				1,966				(31	)
Corporate/Private Equity (g)			1,545				(1,780	)			(319	)			1,111				270			NM					472				557				1,885				(70	)
Net income		$	702			$	527			$	2,003			$	2,373			$	2,971				33				(76	)		$	5,605			$	15,365				(64	)