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Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): July 13, 2012

JPMORGAN CHASE & CO.

(Exact name of registrant as specified in its charter)

Delaware

1-5805

13-2624428

(State or Other Jurisdiction of

Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)


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

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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

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

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

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

Item 2.02.

Results of Operations and Financial Condition

On July 13, 2012, JPMorgan Chase & Co. (the “Firm”) reported 2012 second quarter net income of $5.0 billion, or $1.21 per share, compared with net income of $5.4 billion, or $1.27 per share, for the second quarter of 2011. A copy of the 2012 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 Exhibits 99.1 and 99.2 shall be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.

This Current Report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase and Co.’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co.’s Annual Report on Form 10-K for the year ended December 31, 2011, which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase’s website (www.jpmorganchase.com) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Item 9.01.

Financial Statements and Exhibits

(d)

Exhibits


Exhibit No.		Description of Exhibit

12.1		JPMorgan Chase & Co. computation of Earnings to Fixed Charges
12.2		JPMorgan Chase & Co. computation of Earnings to Fixed Charges and Preferred Stock Dividend Requirements
99.1		JPMorgan Chase & Co. Earnings Release – Second Quarter 2012 Results
99.2		JPMorgan Chase & Co. Earnings Financial Supplement – Second Quarter 2012

SIGNATURE

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


JPMorgan Chase & Co. (Registrant)

By:		/s/ Douglas Braunstein
		Douglas Braunstein

Executive Vice President and Chief Financial Officer [Chief Financial Officer]

Dated: July 13, 2012

INDEX TO EXHIBITS


Exhibit No.		Description of Exhibit

12.1		JPMorgan Chase & Co. computation of Earnings to Fixed Charges

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

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

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

<![CDATA[JPMORGAN CHASE & CO. COMPUTATION OF EARNINGS TO FIXED CHARGES]]>

EXHIBIT 12.1

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges


Six months ended June 30, (in millions, except ratios)	2012

Excluding interest on deposits
Income before income tax expense	$	13,981


Fixed charges:
Interest expense		4,529
One-third of rents, net of income from subleases (a)		279

Total fixed charges		4,808


Add: Equity in undistributed loss of affiliates		44


Income before income tax expense and fixed charges, excluding capitalized interest	$	18,833


Fixed charges, as above	$	4,808


Ratio of earnings to fixed charges		3.92


Including interest on deposits
Fixed charges, as above	$	4,808

Add: Interest on deposits		1,459


Total fixed charges and interest on deposits	$	6,267


Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	18,833

Add: Interest on deposits		1,459


Total income before income tax expense, fixed charges and interest on deposits	$	20,292


Ratio of earnings to fixed charges		3.24

(a)

The proportion deemed representative of the interest factor.

<![CDATA[JPMORGAN CHASE & CO. COMPUTATION OF EARNINGS TO FIXED CHARGES]]>

EXHIBIT 12.2

JPMORGAN CHASE & CO.

Computation of Ratio of Earnings to Fixed Charges

and Preferred Stock Dividend Requirements


Six months ended June 30, (in millions, except ratios)		2012

Excluding interest on deposits
Income before income tax expense	$	13,981


Fixed charges:
Interest expense		4,529
One-third of rents, net of income from subleases (a)		279

Total fixed charges		4,808



Add: Equity in undistributed loss of affiliates		44


Income before income tax expense and fixed charges, excluding capitalized interest	$	18,833


Fixed charges, as above	$	4,808

Preferred stock dividends (pre-tax)		453


Fixed charges including preferred stock dividends	$	5,261


Ratio of earnings to fixed charges and preferred stock dividend requirements		3.58


Including interest on deposits
Fixed charges including preferred stock dividends, as above	$	5,261

Add: Interest on deposits		1,459


Total fixed charges including preferred stock dividends and interest on deposits	$	6,720


Income before income tax expense and fixed charges, excluding capitalized interest, as above	$	18,833

Add: Interest on deposits		1,459


Total income before income tax expense, fixed charges and interest on deposits	$	20,292


Ratio of earnings to fixed charges and preferred stock dividend requirements		3.02

(a)

The proportion deemed representative of the interest factor.

<![CDATA[JPMORGAN CHASE & CO. EARNINGS RELEASE - SECOND QUARTER 2012 RESULTS]]>

Exhibit 99.1

JPMorgan Chase & Co.

270 Park Avenue, New York, NY 10017-2070

NYSE symbol: JPM

www.jpmorganchase.com

News release: IMMEDIATE RELEASE

JPMORGAN CHASE REPORTS SECOND-QUARTER 2012 NET INCOME OF

$5.0 BILLION, OR $1.21 PER SHARE, ON REVENUE¹ OF $22.9 BILLION

RESULTS INCLUDE CIO TRADING LOSSES

SUPPORTED CONSUMERS, BUSINESSES AND COMMUNITIES

•

Our client-driven businesses all had solid performance this quarter; continued improvement in consumer credit; lower volume in capital markets²

Investment Bank maintained #1 ranking for Global Investment Banking Fees

Consumer & Business Banking average deposits up 8%; Business Banking loan originations up 14%

Mortgage Banking originations up 29%

Credit Card sales volume³ up 12%

Commercial Banking reported eighth consecutive quarter of loan growth, up 16%

Treasury & Securities Services reported assets under custody of $18 trillion, up 4%

Asset Management reported thirteenth consecutive quarter of positive net long-term product flows

•

First-half 2012 net income of $9.9 billion, EPS of $2.41 and revenue of $49.6 billion not impacted by first-quarter 2012 restatement; second-quarter 2012 balance sheet and capital ratios also not impacted⁴

•

Second-quarter results included the following significant items:

$4.4 billion pretax loss ($0.69 per share after-tax reduction in earnings) from CIO trading losses and $1.0 billion pretax benefit ($0.16 per share after-tax increase in earnings) from securities gains in CIO’s investment securities portfolio in Corporate

$2.1 billion pretax benefit ($0.33 per share after-tax increase in earnings) from reduced loan loss reserves, mostly mortgage and credit card

$0.8 billion pretax gain ($0.12 per share after-tax increase in earnings) from debit valuation adjustments (“DVA”) in the Investment Bank

$0.5 billion pretax gain ($0.09 per share after-tax increase in earnings) reflecting expected full recovery on a Bear Stearns-related first-loss note in Corporate⁵


Investor Contact: Sarah Youngwood (212) 270-7325		Media Contact: Joe Evangelisti (212) 270-7438

¹	For notes on non-GAAP measures, including managed basis reporting, see page 14.

²	Comparisons below are versus prior year.

³	For additional notes on financial measures, see pages 14 and 15.

⁴	On July 13, 2012, JPMorgan Chase & Co reported that it will be restating its previously-filed interim financial statements for the first quarter 2012. See note 3 on page 15.

⁵

The Firm holds a $1.15 billion first-loss note issued by Maiden Lane LLC, which was established by the Federal Reserve to purchase certain assets from Bear Stearns in March 2008. The Federal Reserve’s senior note has been completely paid. The Firm received partial repayment in 2Q12 and now expects to recover the full value of its first-loss note.

JPMorgan Chase & Co.

News Release

•

Substantial progress achieved in CIO

Significantly reduced total synthetic credit risk in CIO

Substantially all remaining synthetic credit positions transferred to the Investment Bank

Investment Bank has the expertise, capacity, trading platforms and market franchise to manage these positions

CIO synthetic credit group closed down

Conducting extensive review of CIO trading losses; CIO management completely overhauled; governance standards enhanced; believe events isolated to CIO

•

Fortress balance sheet remains strong

Basel I Tier 1 common¹ of $130 billion, or 10.3%

Estimated Basel III Tier 1 common¹ of 7.9%, after the impact of final Basel 2.5 rules and the Federal Reserve’s recent Notice of Proposed Rulemaking

Strong loan loss reserves of $24 billion; Global Liquidity Reserve of $414 billion

•

JPMorgan Chase supported consumers, businesses and our communities

Provided $130 billion of credit³ to consumers in the first six months of 2012

Issued new credit cards to 3.3 million people

Originated over 425,000 mortgages

Provided nearly $10 billion of credit to U.S. small businesses in the first six months, up 35% compared with prior year

Provided $260 billion of credit³ to corporations in the first six months

Raised over $460 billion of capital for clients in the first six months

Nearly $29 billion of capital raised for and credit³ provided to more than 900 nonprofit and government entities in the first six months, including states, municipalities, hospitals and universities

Hired more than 4,000 U.S. veterans since the beginning of 2011

New York, July 13, 2012 — JPMorgan Chase & Co. (NYSE: JPM) today reported second-quarter 2012 net income of $5.0 billion, compared with net income of $5.4 billion in the second quarter of 2011. Earnings per share were $1.21, compared with $1.27 in the second quarter of 2011. The Firm’s return on tangible common equity¹ for the second quarter of 2012 was 15%, compared with 17% in the prior year.

Jamie Dimon, Chairman and Chief Executive Officer, commented on financial results: “Importantly, all of our client-driven businesses had solid performance. However, there were several significant items that affected the quarter’s results – some positively; some negatively. These included $4.4 billion of losses on CIO’s synthetic credit portfolio, $1.0 billion of securities gains in CIO and a $545 million gain on a Bear Stearns-related first-loss note, for which the Firm now expects full recovery. The Firm’s results also included $755 million of DVA gains, reflecting adjustments for the widening of the Firm’s credit spreads which, as we have consistently said, do not reflect the underlying operations of the Firm. The Firm also reduced loan loss reserves by $2.1 billion, mostly for the mortgage and credit card portfolios. These reductions in reserves are based on the same methodologies we have used in the past – the good news is that these reductions reflected meaningful improvements in delinquencies and estimated losses in these portfolios. We continue to maintain strong reserves.”

JPMorgan Chase & Co.

News Release

Dimon continued: “Since the end of the first quarter, we have significantly reduced the total synthetic credit risk in CIO – whether measured by notional amounts, stress testing or other statistical methods. The reduction in risk has brought the portfolio to a scale that allowed us to transfer substantially all remaining synthetic credit positions to the Investment Bank*. The Investment Bank has the expertise, capacity, trading platforms and market franchise to effectively manage these positions and maximize economic value going forward. As a result of the transfer, the Investment Bank’s Value-at-Risk and Risk Weighted Assets will increase, but we believe they will come down over time. Importantly, we have put most of this problem behind us and we can now focus our full energy on what we do best – serving our clients and communities around the world.”

Commenting further on CIO, Dimon said: “CIO will no longer trade a synthetic credit portfolio and will focus on its core mandate of conservatively investing excess deposits to earn a fair return. CIO’s $323 billion available-for-sale portfolio had $7.9 billion of net unrealized gains at the end of the quarter. This portfolio has an average rating of AA+, has a current yield of approximately 2.6%, and is positioned to help to protect the Firm against rapidly rising interest rates. In addition to CIO, we have $175 billion in cash and deposits, primarily invested at central banks.”

“The Firm has been conducting an extensive review of what happened in CIO and we will be sharing our observations today. We have already completely overhauled CIO management and enhanced the governance standards within CIO. We believe these events to be isolated to CIO, but have taken the opportunity to apply lessons learned across the Firm. The Board of Directors is independently overseeing and guiding the Company’s review, including any additional corrective actions. While our review continues, it is important to note that no client was impacted.”

Commenting on the balance sheet, Dimon said: “Our fortress balance sheet remained strong, ending the second quarter with a strong Basel I Tier 1 common ratio of 10.3%. We estimate that our Basel III Tier 1 common ratio was approximately 7.9% at the end of the second quarter, after the effect of the final Basel 2.5 rules and the Federal Reserve’s recent Notice of Proposed Rulemaking.”

Dimon concluded: “Through the depth of the financial crisis and through recent events, we have never stopped fulfilling our mission: to serve clients – consumers and companies – and communities around the globe. During the first half of 2012, we provided $130 billion of credit to consumers. Over the same period we provided nearly $10 billion of credit to small businesses, the engine of growth for our economy, up 35% compared with the same period last year. For America’s largest companies, we raised or lent over $720 billion of capital in the first six months to help them build and expand around the world. Even in this difficult economy, we have added thousands of new employees across the country – over 62,000 since January 2008. In 2011, we founded the “100,000 Jobs Mission” – a partnership with 54 other companies to hire 100,000 U.S. veterans by the year 2020. We have hired more than 4,000 veterans since the beginning of 2011, in addition to the thousands of veterans who already worked at our Firm. I am proud of JPMorgan Chase and what all of our employees do every day to serve our clients and communities in a first-class way.”

In the discussion below of the business segments and of JPMorgan Chase as a Firm, information is presented on a managed basis. For more information about managed basis, as well as other non-GAAP financial measures used by management to evaluate the performance of each line of business, see page 14. The following discussion compares the second quarters of 2012 and 2011 unless otherwise noted.

For now, CIO will retain a portfolio of approximately $11 billion notional amount of mark-to-market positions as an economic hedge for certain credit exposures of the investment securities portfolio and tail risk for the portfolio. This long protection (i.e., short credit) is simple, transparent and easy to explain and will likely be reduced over time.

JPMorgan Chase & Co.

News Release

INVESTMENT BANK (IB)


Results for IB				1Q12		2Q11
($ millions)	2Q12	1Q12	2Q11	$ O/(U)	O/(U) %	$ O(U)	O/(U) %
Net Revenue	$6,766	$7,321	$7,314	($555)	(8)%	($548)	(7)%
Provision for Credit Losses	21	(5)	(183)	26	NM	204	NM
Noninterest Expense	3,802	4,738	4,332	(936)	(20)	(530)	(12)
Net Income	$1,913	$1,682	$2,057	$231	14%	($144)	(7)%

Discussion of Results:

Net income was $1.9 billion, down 7% from the prior year. These results reflected lower net revenue and a provision for credit losses compared with a benefit in the prior year, largely offset by lower noninterest expense.

Net revenue was $6.8 billion, compared with $7.3 billion in the prior year. Investment banking fees were $1.2 billion (down 35%), which consists of debt underwriting fees of $639 million (down 26%), equity underwriting fees of $250 million (down 45%), and advisory fees of $356 million (down 41%). Combined Fixed Income and Equity Markets revenue was $5.0 billion, down 10% from the prior year. Credit Portfolio reported revenue of $544 million.

Net revenue included a $755 million gain from DVA on certain structured and derivative liabilities resulting from the widening of the Firm’s credit spreads; this gain was composed of $241 million in Fixed Income Markets, $200 million in Equity Markets and $314 million in Credit Portfolio. Excluding the impact of DVA, net revenue was $6.0 billion and net income was $1.4 billion.

Excluding the impact of DVA, Fixed Income and Equity Markets combined revenue was $4.5 billion, down 15% from the prior year, primarily reflecting the impact of weaker market conditions, with solid client revenue. Excluding the impact of DVA, Credit Portfolio net revenue was $230 million, driven by net interest income on retained loans and fees on lending-related commitments.

The provision for credit losses was $21 million, compared with a benefit in the prior year of $183 million. The ratio of the allowance for loan losses to end-of-period loans retained was 1.97%, compared with 2.10% in the prior year. Excluding the impact of consolidation of Firm-administered multi-seller conduits effective on January 1, 2010, the ratio of the allowance for loan losses to end-of-period loans retained was 3.19%¹, compared with 3.34%¹ in the prior year.

Noninterest expense was $3.8 billion, down 12% from the prior year, driven by lower compensation expense. The ratio of compensation to net revenue was 33%, excluding DVA.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted, and all rankings are according to Dealogic)

•

Ranked #1 in Global Investment Banking Fees for the six months ended June 30, 2012.

•

Ranked #1 in Global Debt, Equity and Equity-related; #1 in Global Long-Term Debt; #1 in Global Syndicated Loans; #2 in Global Announced M&A; and #3 in Global Equity and Equity-related, based on year to date volume, for the six months ended June 30, 2012.

•

Return on equity was 19% on $40.0 billion of average allocated capital (15% excluding DVA).

JPMorgan Chase & Co.

News Release

•

End-of-period total loans were $74.4 billion, up 25% from the prior year and 2% from the prior quarter. Nonaccrual loans of $815 million were down 52% from the prior year and 7% from the prior quarter.

RETAIL FINANCIAL SERVICES (RFS)


Results for RFS				1Q12		2Q11
($ millions)	2Q12	1Q12	2Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$7,935	$7,649	$7,142	$286	4%	$ 793	11%
Provision for Credit Losses	(555)	(96)	994	(459)	(478)	(1,549)	NM
Noninterest Expense	4,726	5,009	5,271	(283)	(6)	(545)	(10)
Net Income	$2,267	$1,753	$ 383	$514	29%	$1,884	492%

Discussion of Results:

Net income was $2.3 billion, compared with $383 million in the prior year.

Net revenue was $7.9 billion, an increase of $793 million, or 11%, compared with the prior year. Net interest income was $3.9 billion, down $126 million, or 3%, driven by the impact of lower deposit spreads and lower loan balances due to portfolio runoff, largely offset by higher deposit balances. Noninterest revenue was $4.0 billion, an increase of $919 million, or 30%, driven by higher mortgage fees and related income, partially offset by lower debit card revenue.

The provision for credit losses was a benefit of $555 million compared with a provision expense of $994 million in the prior year and a benefit of $96 million in the prior quarter. The current-quarter provision reflected a $1.4 billion reduction in the allowance for loan losses due to lower estimated losses as mortgage delinquency trends continued to improve, and to a lesser extent, a refinement of our incremental loss estimates with respect to certain borrower assistance programs. The prior-year provision for credit losses reflected higher net charge-offs; the prior-quarter provision reflected a $1.0 billion reduction of the allowance for loan losses.

Noninterest expense was $4.7 billion, a decrease of $545 million, or 10%, from the prior year.

Consumer & Business Banking reported net income of $946 million, a decrease of $152 million, or 14%, compared with the prior year.

Net revenue was $4.3 billion, down 6% from the prior year. Net interest income was $2.7 billion, down 1% compared with the prior year, driven by the impact of lower deposit spreads, predominantly offset by higher deposit balances. Noninterest revenue was $1.6 billion, a decrease of 13%, driven by lower debit card revenue, reflecting the impact of the Durbin Amendment.

The provision for credit losses was a benefit of $2 million, compared with a provision expense of $42 million in the prior year. The current-quarter provision reflected a $100 million reduction in the allowance for loan losses due to lower estimated losses as delinquency trends continued to improve. Net charge-offs were $98 million (2.20% net charge-off rate), compared with $117 million (2.74% net charge-off rate) in the prior year.

Noninterest expense was $2.7 billion, up 1% from the prior year, including the benefit of certain adjustments in the current quarter.

JPMorgan Chase & Co.

News Release

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted and banking portal ranking per compete.com)

•

Average total deposits were $389.5 billion, up 8% from the prior year and 2% from the prior quarter, with growth rates among the best in the industry.

•

Deposit margin was 2.62%, compared with 2.83% in the prior year and 2.68% in the prior quarter.

•

Checking accounts totaled 27.4 million, up 4% from the prior year and 1% from the prior quarter.

•

Number of branches was 5,563, an increase of 223 from the prior year and 22 from the prior quarter. Chase Private Client locations were 738, an increase of 722 from the prior year and 372 from the prior quarter.

•

End-of-period Business Banking loans were $18.2 billion, up 6% from the prior year and 2% from the prior quarter; originations were $1.8 billion, up 14% from the prior year and 16% from the prior quarter; Chase continues to be the #1 SBA lender (in units).

•

Branch sales of credit cards were down 19% from the prior year and up 11% from the prior quarter.

•

Branch sales of investment products were down 3% compared with the prior year and 6% from the prior quarter.

•

Client investment assets, excluding deposits, were $147.6 billion, up 5% from the prior year and relatively flat from the prior quarter.

•

Number of active mobile customers was 9.1 million, an increase of 38% compared with the prior year and 6% compared with the prior quarter; QuickDeposit active customers grew over 2.5 times compared with the prior year and QuickPay active customers tripled compared with the prior year.

•

Number of active online customers was 17.9 million, an increase of 5% compared with the prior year and flat to the prior quarter; Chase.com is the #1 most visited banking portal in the U.S.

Mortgage Production and Servicing reported net income of $604 million, compared with a net loss of $649 million in the prior year.

Mortgage production reported pretax income of $931 million, an increase of $645 million from the prior year. Mortgage production-related revenue, excluding repurchase losses, was $1.6 billion, an increase of $595 million, or 62%, from the prior year, reflecting wider margins, driven by market conditions and mix, and higher volumes, due to a favorable refinancing environment, including the impact of the Home Affordable Refinance Programs (“HARP”). Production expense was $620 million, an increase of $163 million, or 36%, reflecting higher volumes. Repurchase losses were $10 million, compared with $223 million in the prior year and $302 million in the prior quarter. The current quarter reflected a $216 million reduction in the repurchase liability and lower realized repurchase losses when compared to prior quarter.

Mortgage servicing reported pretax income of $65 million, compared with a pretax loss of $1.1 billion in the prior year. Mortgage servicing revenue, including mortgage servicing rights (“MSR”) amortization, was $785 million, an increase of $223 million, or 40%, from the prior year. This increase reflected reduced amortization as a result of a lower MSR asset value. Servicing expense was $953 million, a decrease of $775 million, or 45%, from the prior year. The prior-year servicing expense included approximately $1.0 billion of incremental expense related to foreclosure-related matters. MSR risk management income was $233 million, compared with $25 million in the prior year.

JPMorgan Chase & Co.

News Release

Key Metrics and Business Updates:

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

•

Mortgage loan originations were $43.9 billion, up 29% from the prior year and 14% compared with the prior quarter; Retail channel originations (branch and direct to consumer) were a record of $26.1 billion, up 26% from the prior year and 12% compared with the prior quarter.

•

Mortgage loan application volumes were $66.9 billion, up 37% from the prior year and 12% from the prior quarter, primarily reflecting refinancing activity.

•

Total third-party mortgage loans serviced was $860.0 billion, down 9% from the prior year and 3% from the prior quarter.

Real Estate Portfolios reported net income of $717 million, compared with a net loss of $66 million in the prior year. The increase was driven by a benefit from the provision for credit losses, reflecting continued improvement in credit trends.

Net revenue was $1.0 billion, down by $177 million, or 15%, from the prior year. The decrease was driven by a decline in net interest income, resulting from lower loan balances due to portfolio runoff.

The provision for credit losses reflected a benefit of $554 million, compared with provision expense of $954 million in the prior year. The current-quarter provision benefit reflected lower charge-offs as compared with the prior year and a $1.25 billion reduction in the allowance for loan losses due to lower estimated losses as delinquency trends continued to improve, and to a lesser extent, a refinement of our incremental loss estimates with respect to certain borrower assistance programs. Home equity net charge-offs were $466 million (2.53% net charge-off rate¹), compared with $592 million (2.83% net charge-off rate¹) in the prior year. Subprime mortgage net charge-offs were $112 million (4.94% net charge-off rate¹), compared with $156 million (5.85% net charge-off rate¹). Prime mortgage, including option ARMs, net charge-offs were $114 million (1.08% net charge-off rate¹), compared with $198 million (1.67% net charge-off rate¹).

Nonaccrual loans were $6.7 billion, compared with $6.9 billion in the prior year and $7.0 billion in the prior quarter. Based upon regulatory guidance issued in the first quarter of 2012, the Firm began reporting performing junior liens that are subordinate to nonaccrual senior liens as nonaccrual loans. Prior year has not been restated for this reporting change. Such junior liens were $1.5 billion in the current quarter and $1.6 billion in the prior quarter.

Noninterest expense was $412 million, up by $41 million, or 11%, from the prior year due to an increase in servicing costs.

Key Metrics and Business Updates:

(All comparisons refer to the prior-year quarter except as noted. Average loans include PCI loans)

•

Average home equity loans were $96.1 billion, down by $11.6 billion.

•

Average mortgage loans were $92.9 billion, down by $11.5 billion.

•

Allowance for loan losses was $12.2 billion, compared with $14.7 billion in the prior year.

•

Allowance for loan losses to ending loans retained, excluding PCI loans was 5.20%, compared with 6.90% in the prior year.

JPMorgan Chase & Co.

News Release

CARD SERVICES & AUTO (Card)


Results for Card				1Q12		2Q11
($ millions)	2Q12	1Q12	2Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$4,525	$4,714	$4,761	($189)	(4)%	($236)	(5)%
Provision for Credit Losses	734	738	944	(4)	(1)	(210)	(22)
Noninterest Expense	2,096	2,029	1,988	67	3	108	5
Net Income	$1,030	$1,183	$1,110	($153)	(13)%	($80)	(7)%

Discussion of Results:

Net income was $1.0 billion, a decrease of $80 million, or 7%, compared with the prior year. The decrease was driven by a lower reduction in the allowance for loan losses compared with the prior year.

Net revenue was $4.5 billion, a decrease of $236 million, or 5%, from the prior year. Net interest income was $3.3 billion, down $176 million, or 5%, from the prior year. The decrease was driven by narrower loan spreads, partially offset by lower revenue reversals associated with lower net charge-offs. Noninterest revenue was $1.2 billion, a decrease of $60 million, or 5%, from the prior year. The decrease was driven by higher amortization of direct loan origination costs, partially offset by higher net interchange income.

The provision for credit losses was $734 million, compared with $944 million in the prior year and $738 million in the prior quarter. The current-quarter provision reflected lower net charge-offs and a $751 million reduction in the allowance for loan losses due to lower estimated losses. The prior-year provision included a $1.0 billion reduction in the allowance for loan losses. The Credit Card net charge-off rate¹ was 4.32%, down from 5.81% in the prior year and 4.37% in the prior quarter; and the 30+ day delinquency rate¹ was 2.13%, down from 2.98% in the prior year and 2.55% in the prior quarter. The net charge-off rate for the quarter would have been 4.03%¹ absent a policy change on restructured loans that do not comply with their modified payment terms. These loans will now charge-off when they are 120 days past due rather than 180 days past due. This change resulted in a one-time acceleration of $91 million in net charge-offs in the current quarter only, and a permanent reduction in the 30+ day delinquency rate which is 0.10% for the current quarter. The one-time acceleration of net charge-offs is offset by a reduction in the allowance for loan losses. The Auto net charge-off rate was 0.17%, up from 0.16% in the prior year and down from 0.28% in the prior quarter.

Noninterest expense was $2.1 billion, an increase of $108 million, or 5%, from the prior year, due to additional expense related to a non-core product that is being exited.

Key Metrics and Business Updates:

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

•

Return on equity was 25% on $16.5 billion of average allocated capital.

•

Credit Card average loans were $125.2 billion, flat compared with prior year and down 2% from the prior quarter.

•

#1 credit card issuer in the U.S. based on outstandings²; #1 Global Visa issuer based on consumer and business credit card sales volume².

•

Credit Card sales volume² was $96.0 billion, up 12% compared with the prior year and 10% compared with the prior quarter; Card Services general purpose credit card sales volume growth has outperformed the industry since 1Q08².

•

Credit Card new accounts of 1.6 million were opened; Credit Card open accounts of 63.7 million.

JPMorgan Chase & Co.

News Release

•

Card Services net revenue as a percentage of average loans was 11.91%, compared with 12.60% in the prior year and 12.22% in the prior quarter.

•

Merchant processing volume was $160.2 billion, up 17% from the prior year and 5% from the prior quarter; total transactions processed were 7.1 billion, up 20% from the prior year and 4% from the prior quarter.

•

Average auto loans were $48.3 billion, up 3% from the prior year and 1% from the prior quarter.

•

Auto originations were $5.8 billion, up 7% from the prior year and flat to the prior quarter.

COMMERCIAL BANKING (CB)


Results for CB								1Q12						2Q11
($ millions)	2Q12			1Q12		2Q11		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue		$1,691			$1,657		$1,627		$34			2	%		$64			4	%
Provision for Credit Losses		(17	)		77		54		(94	)		NM			(71	)		NM
Noninterest Expense		591			598		563		(7	)		(1	)		28			5
Net Income		$ 673			$ 591		$ 607		$82			14	%		$66			11	%

Discussion of Results:

Net income was $673 million, an increase of $66 million, or 11%, from the prior year. The improvement was driven by a benefit from the provision for credit losses and an increase in net revenue, partially offset by higher expense.

Record net revenue was $1.7 billion, an increase of $64 million, or 4%, from the prior year. Net interest income was $1.1 billion, up by $100 million, or 10%, driven by growth in liability and loan balances, partially offset by spread compression on loan and liability products. Noninterest revenue was $562 million, down by $36 million, or 6%, compared with the prior year, driven by lower investment banking revenue and deposit- and lending-related fees.

Revenue from Middle Market Banking was $833 million, an increase of $44 million, or 6%, from the prior year. Revenue from Commercial Term Lending was $291 million, an increase of $5 million, or 2%, compared with the prior year. Revenue from Corporate Client Banking was $343 million, an increase of $4 million, or 1%, from the prior year. Revenue from Real Estate Banking was $114 million, an increase of $5 million, or 5%, from the prior year.

The provision for credit losses was a benefit of $17 million, compared with provision for credit losses of $54 million in the prior year. There were net recoveries of $9 million in the current quarter (0.03% net recovery rate), compared with net charge-offs of $40 million (0.16% net charge-off rate) in the prior year and $12 million (0.04% net charge-off rate) in the prior quarter. The allowance for loan losses to period-end loans retained was 2.20%, down from 2.56% in the prior year and 2.32% in the prior quarter. Nonaccrual loans were $917 million, down by $717 million, or 44%, from the prior year, largely due to commercial real estate repayments and loan sales; and were down $87 million, or 9%, from the prior quarter.

Noninterest expense was $591 million, an increase of $28 million, or 5%, from the prior year, reflecting higher headcount-related² expense and regulatory deposit assessments.

JPMorgan Chase & Co.

News Release

Key Metrics and Business Updates:

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

•

Return on equity was 28% on $9.5 billion of average allocated capital.

•

Overhead ratio was 35%, flat from the prior year.

•

Gross investment banking revenue (which is shared with the Investment Bank) was $384 million, down by $58 million, or 13%.

•

Record average loan balances were $118.4 billion, up by $16.6 billion, or 16%, from the prior year and $4.7 billion, or 4%, from the prior quarter.

•

Record end-of-period loan balances were $120.5 billion, up by $17.8 billion, or 17%, from the prior year and $4.6 billion, or 4%, from the prior quarter.

•

Average liability balances were $193.3 billion, up by $30.5 billion, or 19%, from the prior year and down by $6.9 billion, or 3%, from the prior quarter.

TREASURY & SECURITIES SERVICES (TSS)


Results for TSS				1Q12		2Q11
($ millions)	2Q12	1Q12	2Q11	$O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$2,152	$2,014	$1,932	$138	7%	$220	11%
Provision for Credit Losses	8	2	(2)	6	300	10	NM
Noninterest Expense	1,491	1,473	1,453	18	1	38	3
Net Income	$ 463	$ 351	$ 333	$112	32%	$130	39%

Discussion of Results:

Net income was $463 million, an increase of $130 million, or 39%, from the prior year. Compared with the prior quarter, net income increased by $112 million, or 32%, driven by higher Global Corporate Bank credit allocation benefit and seasonal activity in securities lending and depositary receipts.

Net revenue was $2.2 billion, an increase of $220 million, or 11%, from the prior year. Treasury Services (“TS”) net revenue was $1.1 billion, an increase of $144 million, or 15%. The increase was primarily driven by higher deposit balances, higher trade finance loan volumes, and spreads. Worldwide Securities Services net revenue was $1.1 billion, an increase of $76 million, or 8%, compared with the prior year, driven by higher deposit balances.

TSS generated firmwide net revenue² of $2.8 billion, including $1.7 billion by TS; of that amount, $1.1 billion was recorded in TS, $603 million in Commercial Banking, and $68 million in other lines of business. The remaining $1.1 billion of firmwide net revenue was recorded in Worldwide Securities Services.

Noninterest expense was $1.5 billion, an increase of $38 million, or 3%, from the prior year. The increase was driven by continued expansion into new markets.

Key Metrics and Business Updates:

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

•

Pretax margin² was 34%, compared with 27% in the prior year and prior quarter.

•

Return on equity was 25% on $7.5 billion of average allocated capital.

•

Average liability balances were $348.1 billion, up 15%.

•

Assets under custody were $17.7 trillion, up 4%.

•

End-of-period trade finance loans were $35.3 billion, up 28%.

•

International revenue was $1.2 billion, up 12%, and represented 55% of total revenue.

JPMorgan Chase & Co.

News Release

ASSET MANAGEMENT (AM)


Results for AM							1Q12						2Q11
($ millions)	2Q12		1Q12		2Q11		$ O/(U)			O/(U) %			$ O/(U)			O/(U) %
Net Revenue		$2,364		$2,370		$2,537		($6	)		—			($173	)		(7	)%
Provision for Credit Losses		34		19		12		15			79			22			183
Noninterest Expense		1,701		1,729		1,794		(28	)		(2	)		(93	)		(5	)
Net Income		$391		$386		$439		$5			1	%		($48	)		(11	)%

Discussion of Results:

Net income was $391 million, a decrease of $48 million, or 11%, from the prior year. These results reflected lower net revenue and higher provision for credit losses, partially offset by lower noninterest expense.

Net revenue was $2.4 billion, a decrease of $173 million, or 7%, from the prior year. Noninterest revenue was $1.9 billion, down by $287 million, or 13%, primarily due to lower performance fees, lower valuations of seed capital investments and the effect of lower market levels, partially offset by net product inflows. Net interest income was $512 million, up by $114 million, or 29%, primarily due to higher deposit and loan balances.

Revenue from Private Banking was $1.3 billion, up 4% from the prior year. Revenue from Institutional was $537 million, down 23%. Revenue from Retail was $486 million, down 12%.

Assets under supervision were $2.0 trillion, an increase of $44 billion, or 2%, from the prior year. Assets under management were $1.3 trillion, an increase of $5 billion, as net inflows to long-term products were offset by the effect of lower market levels and net outflows from liquidity products. Custody, brokerage, administration and deposit balances were $621 billion, up by $39 billion, or 7%, due to custody and deposit inflows.

The provision for credit losses was $34 million, compared with $12 million in the prior year.

Noninterest expense was $1.7 billion, a decrease of $93 million, or 5%, from the prior year, due to the absence of non-client-related litigation expense and lower performance-based compensation.

Key Metrics and Business Updates:

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

•

Pretax margin² was 27%, down from 29%.

•

Assets under management reflected net inflows of $31 billion for the 12 months ended June 30, 2012. For the quarter, net outflows were $11 billion reflecting net outflows of $25 billion from liquidity products, largely offset by net inflows of $14 billion to long-term products. Net long-term product flows were positive for the thirteenth consecutive quarter.

•

Assets under management ranked in the top two quartiles for investment performance were 74% over 5 years, 72% over 3 years and 65% over 1 year.

•

Customer assets in 4 and 5 Star–rated funds were 43% of all rated mutual fund assets.

•

Assets under supervision were $2.0 trillion, up 2% from the prior year and down 2% from the prior quarter.

JPMorgan Chase & Co.

News Release

•

Average loans were $67.1 billion, up 37% from the prior year and 13% from the prior quarter.

•

End-of-period loans were $70.5 billion, up 36% from the prior year and 10% from the prior quarter.

•

Average deposits were $128.1 billion, up 31% from the prior year and flat to the prior quarter.

CORPORATE/PRIVATE EQUITY


Results for Corporate/Private Equity				1Q12		2Q11
($ millions)	2Q12	1Q12*	2Q11	$O(U)	O(U)%	$O(U)	O(U)%
Net Revenue	($2,609)	$1,029	$2,065	($3,638)	NM	($4,674)	NM
Provision for Credit Losses	(11)	(9)	(9)	(2)	(22)%	(2)	(22)%
Noninterest Expense	559	2,769	1,441	(2,210)	(80)	(882)	(61)
Net Income/(Loss)	($1,777)	($1,022)	$ 502	($755)	(74)%	($2,279)	NM

(*)	On July 13, 2012, JPMorgan Chase & Co. reported that it will be restating its previously-filed interim financial statements for the first quarter 2012. See note 3 on page 15.

Discussion of Results:

Net loss was $1.8 billion, compared with net income of $502 million in the prior year.

Private Equity reported net income of $197 million, compared with net income of $444 million in the prior year. Net revenue of $410 million was down from $796 million in the prior year, primarily due to lower gains on sales and lower net valuation gains on private investments, partially offset by higher mark-to-market gains on public securities. Noninterest expense was $102 million, unchanged from the prior year.

Treasury and CIO reported a net loss of $2.1 billion, compared with net income of $670 million in the prior year. Net revenue was a loss of $3.4 billion, compared with net revenue of $1.4 billion in the prior year. The current quarter loss reflected $4.4 billion of principal transactions losses from a portfolio held by CIO, partially offset by securities gains of $1.0 billion. Net interest income was negative $30 million, compared with $450 million in the prior year, reflecting lower portfolio yields and the impact of higher deposit balances across the Firm.

Other Corporate reported net income of $104 million, compared with a net loss of $612 million in the prior year. Noninterest revenue was $552 million including a $545 million gain reflecting the expected full recovery on a Bear Stearns-related first-loss note. Noninterest expense of $335 million was down $736 million compared with the prior year. The current quarter included $335 million of additional litigation expense. The prior year included $1.3 billion of additional litigation expense, which was predominantly for mortgage-related matters.

JPMorgan Chase & Co.

News Release

JPMORGAN CHASE (JPM)^(*)


Results for JPM				1Q12		2Q11
($ millions)	2Q12	1Q12**	2Q11	$ O/(U)	O/(U) %	$ O/(U)	O/(U) %
Net Revenue	$22,892	$26,757	$27,410	($3,865)	(14)%	($4,518)	(16)%
Provision for Credit Losses	214	726	1,810	(512)	(71)	(1,596)	(88)
Noninterest Expense	14,966	18,345	16,842	(3,379)	(18)	(1,876)	(11)
Net Income	$4,960	$4,924	$5,431	$36	1%	($471)	(9)%

(*)	Presented on a managed basis. See notes on page 13 for further explanation of managed basis. Net revenue on a U.S. GAAP basis totaled $22,180 million, $26,052 million, and $26,779 million for the second quarter of 2012, first quarter of 2012, and second quarter of 2011, respectively.

(**)	On July 13, 2012, JPMorgan Chase & Co reported that it will be restating its previously-filed interim financial statements for the first quarter 2012. See note 3 on page 15.

Discussion of Results:

Net income was $5.0 billion, down by $471 million, or 9%, from the prior year. The decrease in earnings was driven by lower net revenue, largely offset by lower noninterest expense and a lower provision for credit losses.

Net revenue was $22.9 billion, down by $4.5 billion, or 16%, compared with the prior year. Noninterest revenue was $11.6 billion, down by $3.9 billion, or 25%, from the prior year, due to $4.4 billion of principal transactions losses from a portfolio held by CIO and lower investment banking fees, partially offset by higher mortgage fees and related income. Net interest income was $11.3 billion, down by $616 million, or 5%, compared with the prior year, reflecting the impact of low interest rates, as well as lower trading asset balances, higher financing costs associated with mortgage-backed securities, and the runoff of higher-yielding loans, largely offset by lower other borrowing and deposit costs.

The provision for credit losses was $214 million, down $1.6 billion, or 88%, from the prior year. The total consumer provision for credit losses was $171 million, down $1.8 billion from the prior year. The decrease in the consumer provision reflected a $2.1 billion reduction of the related allowance for loan losses predominantly related to the mortgage and credit card portfolios as delinquency trends improved and estimated losses declined, and to a lesser extent, a refinement of our incremental loss estimates with respect to certain borrower assistance programs. Consumer net charge-offs¹ were $2.3 billion, compared with $3.0 billion in the prior year, resulting in net charge-off rates of 2.51% and 3.25%, respectively. The wholesale provision for credit losses was $43 million compared with a benefit of $117 million. The current quarter provision primarily reflected loan growth and other portfolio activity. Wholesale net charge-offs were $9 million, compared with $80 million in the prior year, resulting in net charge-off rates of 0.01% and 0.14%, respectively. The Firm’s allowance for loan losses to end-of-period loans retained¹ was 2.74%, compared with 3.83% in the prior year. The Firm’s nonperforming assets totaled $11.4 billion at June 30, 2012, down from the prior-year level of $13.4 billion and down from the prior-quarter level of $12.0 billion.

Noninterest expense was $15.0 billion, down $1.9 billion, or 11% from the prior year driven by lower noncompensation expense. The prior year noninterest expense included a total of $2.3 billion for additional litigation expense, predominantly for mortgage-related matters, and expense for the estimated costs of foreclosure-related matters.

Key Metrics and Business Updates:

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

•

Basel I Tier 1 common ratio¹ was 10.3% at June 30, 2012, compared with 10.3%⁴ at March 31, 2012, and 10.1% at June 30, 2011.

•

Headcount was 262,882, an increase of 12,787, or 5%.

JPMorgan Chase & Co.

News Release

1. Notes on non-GAAP financial measures:

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

b. The ratio of the allowance for loan losses to end-of-period loans excludes the following: loans accounted for at fair value and loans held-for-sale; purchased credit-impaired (“PCI”) loans; and the allowance for loan losses related to PCI loans. Additionally, Real Estate Portfolios net charge-off rates exclude the impact of PCI loans. The allowance for loan losses related to the PCI portfolio totaled $5.7 billion, $5.7 billion and $4.9 billion at June 30, 2012, March 31, 2012, and June 30, 2011, respectively. In IB, the ratio for the allowance for loan losses to end-of-period loans is calculated excluding the impact of consolidation of Firm-administered multi-seller conduits effective on January 1, 2010, to provide a more meaningful assessment of the IB’s allowance coverage.

c. Tangible common equity (“TCE”) represents common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. Return on tangible common equity measures the Firm’s earnings as a percentage of TCE. In management’s view, these measures are meaningful to the Firm, as well as analysts and investors, in assessing the Firm’s use of equity, and in facilitating comparisons with peers.

d. The Basel I Tier 1 common ratio is Tier 1 common divided by risk-weighted assets. Tier 1 common is defined as Tier 1 capital less elements of Tier 1 capital not in the form of common equity, such as perpetual preferred stock, noncontrolling interests in subsidiaries, and trust preferred capital debt securities. Tier 1 common, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies. The Firm uses Tier 1 common along with other capital measures to assess and monitor its capital position. On December 16, 2010, the Basel Committee issued the final version of the Basel Capital Accord, commonly referred to as “Basel III.” The Firm’s estimate of its Tier 1 common ratio under Basel III is a non-GAAP financial measure and reflects the Firm’s current understanding of the Basel III rules and the application of such rules to its businesses as currently conducted, and therefore excludes the impact of any changes the Firm may make in the future to its businesses as a result of implementing the Basel III rules. The Firm’s estimates of its Basel III Tier 1 common ratio will evolve over time as the Firm’s businesses change, and as a result of further rule-making on Basel III implementation from U.S. federal banking agencies. Management considers this estimate as a key measure to assess the Firm’s capital position in conjunction with its capital ratios under Basel I requirements, in order to enable management, investors and analysts to compare the Firm’s capital under the Basel III capital standards with similar estimates provided by other financial services companies. The Firm’s understanding of the Basel III rules is based on information currently published by the Basel Committee and U.S. federal banking agencies.

e. In Card Services & Auto, supplemental information is provided for Card Services, to provide more meaningful measures that enable comparability with prior periods. The net charge-off rate and 30+ day delinquency rate presented include loans held-for-sale.

2. Additional notes on financial measures:

a. Headcount-related expense includes salary and benefits (excluding performance-based incentives), and other noncompensation costs related to employees.

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

JPMorgan Chase & Co.

News Release

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

d. Credit card sales volume is presented excluding Commercial Card. Rankings and comparison of general purpose credit card sales volume are based on disclosures by peers and internal estimates. Rankings are as of 1Q12.

e. The amount of credit provided to clients represents new and renewed credit, including loans and commitments. The amount of credit provided to small businesses reflects loans and increased lines of credit provided by Consumer & Business Banking, Card Services & Auto and Commercial Banking. The amount of credit provided to not-for-profit and government entities, including states, municipalities, hospitals and universities, represents that provided by the Investment Bank.

3. Financial restatement:

On July 13, 2012, JPMorgan Chase & Co. reported that it will be restating its previously-filed interim financial statements for first quarter 2012. The restatement will have the effect of reducing the Firm’s reported net income for first quarter 2012 by $459 million. The first quarter amounts in this release reflect the effects of such restatement. For further information, see the Company’s Current Report on Form 8-K dated July 13, 2012, which has been filed with the Securities and Exchange Commission and is available on the Company’s website (http://investor.shareholder.com/jpmorganchase) and on the Securities and Exchange Commission’s website (www.sec.gov).

JPMorgan Chase & Co.

News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.3 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

JPMorgan Chase & Co. will host a conference call today at 7:30 a.m. (Eastern Time) to present second-quarter financial results and an update on CIO. The general public can access the call by dialing (866) 541-2724 or (877) 368-8360 in the U.S. and Canada, or (706) 634-7246 for international participants. Please dial in 10 minutes prior to the start of the call. The live audio webcast and presentation slides will be available at the Firm’s website, www.jpmorganchase.com, under Investor Relations, Investor Presentations.

A replay of the conference call will be available beginning at approximately noon on July 13, 2012 through midnight, July 27, 2012 by telephone at (855) 859-2056 or (800) 585-8367 (U.S. and Canada) or (404) 537-3406 (international); use Conference ID# 87040825. The replay will also be available via webcast on www.jpmorganchase.com under Investor Relations, Investor Presentations. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available at www.jpmorganchase.com.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase & Co.’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co.’s Annual Report on Form 10-K for the year ended December 31, 2011, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, each of which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase & Co.’s website (http://investor.shareholder.com/jpmorganchase) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(in millions, except per share and ratio data)


	QUARTERLY TRENDS															SIX MONTHS ENDED JUNE 30,
										2Q12 Change												2012 Change
	2Q12			1Q12(i)			2Q11			1Q12			2Q11			2012			2011			2011
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue	$	22,180		$	26,052		$	26,779			(15	)%		(17	)%	$	48,232		$	52,000			(7	)%
Total noninterest expense		14,966			18,345			16,842			(18	)		(11	)		33,311			32,837			1
Pre-provision profit		7,214			7,707			9,937			(6	)		(27	)		14,921			19,163			(22	)
Provision for credit losses		214			726			1,810			(71	)		(88	)		940			2,979			(68	)
NET INCOME		4,960			4,924			5,431			1			(9	)		9,884			10,986			(10	)

Managed Basis (a)
Total net revenue		22,892			26,757			27,410			(14	)		(16	)		49,649			53,201			(7	)
Total noninterest expense		14,966			18,345			16,842			(18	)		(11	)		33,311			32,837			1
Pre-provision profit		7,926			8,412			10,568			(6	)		(25	)		16,338			20,364			(20	)
Provision for credit losses		214			726			1,810			(71	)		(88	)		940			2,979			(68	)
NET INCOME		4,960			4,924			5,431			1			(9	)		9,884			10,986			(10	)

PER COMMON SHARE DATA
Basic earnings		1.22			1.20			1.28			2			(5	)		2.41			2.57			(6	)
Diluted earnings		1.21			1.19			1.27			2			(5	)		2.41			2.55			(5	)

Cash dividends declared (b)		0.30			0.30			0.25			—			20			0.60			0.50			20
Book value		48.40			47.48			44.77			2			8			48.40			44.77			8

Closing share price (c)		35.73			45.98			40.94			(22	)		(13	)		35.73			40.94			(13	)
Market capitalization		135,661			175,737			160,083			(23	)		(15	)		135,661			160,083			(15	)

COMMON SHARES OUTSTANDING
Average: Basic		3,808.9			3,818.8			3,958.4			—			(4	)		3,813.9			3,970.0			(4	)
Diluted		3,820.5			3,833.4			3,983.2			—			(4	)		3,827.0			3,998.6			(4	)
Common shares at period-end		3,796.8			3,822.0			3,910.2			(1	)		(3	)		3,796.8			3,910.2			(3	)

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)		11	%		11	%		12	%								11	%		13	%
Return on tangible common equity (“ROTCE”) (e)		15			15			17									15			18
Return on assets (“ROA”)		0.88			0.88			0.99									0.88			1.03
Return on risk-weighted assets (f)		1.59	(h)		1.61			1.82									1.60			1.86

CAPITAL RATIOS
Tier 1 capital ratio		11.7	(h)		12.6			12.4
Total capital ratio		14.5	(h)		15.6			15.7
Tier 1 common capital ratio (g)		10.3	(h)		10.3			10.1

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,290,146		$	2,320,164		$	2,246,764			(1	)		2		$	2,290,146		$	2,246,764			2
Wholesale loans		302,820			290,866			248,823			4			22			302,820			248,823			22
Consumer, excluding credit card loans		300,046			304,770			315,390			(2	)		(5	)		300,046			315,390			(5	)
Credit card loans		124,705			125,331			125,523			—			(1	)		124,705			125,523			(1	)

Total Loans		727,571			720,967			689,736			1			5			727,571			689,736			5
Deposits		1,115,886			1,128,512			1,048,685			(1	)		6			1,115,886			1,048,685			6
Common stockholders’ equity		183,772			181,469			175,079			1			5			183,772			175,079			5
Total stockholders’ equity		191,572			189,269			182,879			1			5			191,572			182,879			5
Deposits-to-loans ratio		153	%		157	%		152	%								153	%		152	%

Headcount		262,882			261,453			250,095			1			5			262,882			250,095			5

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	1,913		$	1,682		$	2,057			14			(7	)	$	3,595		$	4,427			(19	)
Retail Financial Services		2,267			1,753			383			29			492			4,020			(16	)		NM
Card Services & Auto		1,030			1,183			1,110			(13	)		(7	)		2,213			2,644			(16	)
Commercial Banking		673			591			607			14			11			1,264			1,153			10
Treasury & Securities Services		463			351			333			32			39			814			649			25
Asset Management		391			386			439			1			(11	)		777			905			(14	)
Corporate/Private Equity		(1,777	)		(1,022	)		502			(74	)		NM			(2,799	)		1,224			NM

NET INCOME	$	4,960		$	4,924		$	5,431			1			(9	)	$	9,884		$	10,986			(10	)

(a)	For further discussion of managed basis, see note (a) on page 14.

(b)	On March 13, 2012, the Board of Directors increased the Firm’s quarterly common stock dividend from $0.25 to $0.30 per share.

(c)	Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.

(d)	Ratios are based upon annualized amounts.

(e)	ROTCE is a non-GAAP financial ratio, and it measures the Firm’s earnings as a percentage of tangible common equity. For further discussion of this ratio, see page 46.

(f)	Return on Basel I risk-weighted assets is the annualized earnings of the Firm divided by its average risk-weighted assets.

(g)

Basel I Tier 1 common capital ratio (“Tier 1 common ratio”) is Tier 1 common capital (“Tier 1 common”) divided by risk-weighted assets. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. For further discussion of Tier 1 common capital ratio, see page 46.

(h)	Estimated.

(i)	On July 13, 2012, JPMorgan Chase & Co. reported that it will be restating its previously-filed interim financial statements for the first quarter 2012. See note 3 on page 15.

<![CDATA[JPMORGAN CHASE & CO. EARNINGS FINANCIAL SUPPLEMENT - SECOND QUARTER 2012]]>

Exhibit 99.2

LOGO

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2012

On July 13, 2012, JPMorgan Chase & Co. reported that it will be restating its previously-filed interim financial statements for the first quarter 2012. The restatement will have the effect of reducing the Firm’s reported net income for 2012 first quarter by $459 million. The first quarter 2012 amounts in this supplement reflect the effects of such restatement. For further information, see the Company’s Current Report on Form 8-K dated July 13, 2012, which has been filed with the Securities and Exchange Commission and is available on the Company’s website (http://investor.shareholder.com/jpmorganchase) and on the Securities and Exchange Commission’s website (www.sec.gov).

JPMORGAN CHASE & CO.

TABLE OF CONTENTS


		Page(s)

Consolidated Results
Consolidated Financial Highlights		2-3
Statements of Income		4
Consolidated Balance Sheets		5
Condensed Average Balance Sheets and Annualized Yields		6
Core Net Interest Income		7
Reconciliation from Reported to Managed Summary		8

Business Detail
Line of Business Financial Highlights — Managed Basis		9
Investment Bank		10-13
Retail Financial Services		14-20
Card Services & Auto		21-23
Commercial Banking		24-25
Treasury & Securities Services		26-28
Asset Management		29-33
Corporate/Private Equity		34-35

Credit-Related Information		36-41

Market Risk-Related Information		42

Supplemental Detail
Capital and Other Selected Balance Sheet Items		43
Mortgage Loan Repurchase Liability		44
Per Share-Related Information		45

Non-GAAP Financial Measures		46

Glossary of Terms		47-51

Page 1

JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(in millions, except per share and ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
SELECTED INCOME STATEMENT DATA
Reported Basis
Total net revenue	$	22,180		$	26,052		$	21,471		$	23,763		$	26,779			(15	)%		(17	)%	$	48,232		$	52,000			(7	)%
Total noninterest expense		14,966			18,345			14,540			15,534			16,842			(18	)		(11	)		33,311			32,837			1
Pre-provision profit		7,214			7,707			6,931			8,229			9,937			(6	)		(27	)		14,921			19,163			(22	)
Provision for credit losses		214			726			2,184			2,411			1,810			(71	)		(88	)		940			2,979			(68	)
NET INCOME		4,960			4,924			3,728			4,262			5,431			1			(9	)		9,884			10,986			(10	)

Managed Basis (a)
Total net revenue		22,892			26,757			22,198			24,368			27,410			(14	)		(16	)		49,649			53,201			(7	)
Total noninterest expense		14,966			18,345			14,540			15,534			16,842			(18	)		(11	)		33,311			32,837			1
Pre-provision profit		7,926			8,412			7,658			8,834			10,568			(6	)		(25	)		16,338			20,364			(20	)
Provision for credit losses		214			726			2,184			2,411			1,810			(71	)		(88	)		940			2,979			(68	)
NET INCOME		4,960			4,924			3,728			4,262			5,431			1			(9	)		9,884			10,986			(10	)

PER COMMON SHARE DATA
Basic earnings		1.22			1.20			0.90			1.02			1.28			2			(5	)		2.41			2.57			(6	)
Diluted earnings		1.21			1.19			0.90			1.02			1.27			2			(5	)		2.41			2.55			(5	)

Cash dividends declared (b)		0.30			0.30			0.25			0.25			0.25			—			20			0.60			0.50			20
Book value		48.40			47.48			46.59			45.93			44.77			2			8			48.40			44.77			8

Closing share price (c)		35.73			45.98			33.25			30.12			40.94			(22	)		(13	)		35.73			40.94			(13	)
Market capitalization		135,661			175,737			125,442			114,422			160,083			(23	)		(15	)		135,661			160,083			(15	)

COMMON SHARES OUTSTANDING
Average: Basic		3,808.9			3,818.8			3,801.9			3,859.6			3,958.4			—			(4	)		3,813.9			3,970.0			(4	)
Diluted		3,820.5			3,833.4			3,811.7			3,872.2			3,983.2			—			(4	)		3,827.0			3,998.6			(4	)
Common shares at period-end		3,796.8			3,822.0			3,772.7			3,798.9			3,910.2			(1	)		(3	)		3,796.8			3,910.2			(3	)

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)		11	%		11	%		8	%		9	%		12	%								11	%		13	%
Return on tangible common equity (“ROTCE”) (e)		15			15			11			13			17									15			18
Return on assets (“ROA”)		0.88			0.88			0.65			0.76			0.99									0.88			1.03
Return on risk-weighted assets (f)		1.59	(h)		1.61			1.21			1.40			1.82									1.60			1.86

CAPITAL RATIOS
Tier 1 capital ratio		11.7	(h)		12.6			12.3			12.1			12.4
Total capital ratio		14.5	(h)		15.6			15.4			15.3			15.7
Tier 1 common capital ratio (g)		10.3	(h)		10.3			10.1			9.9			10.1

(a)	For further discussion of managed basis, see Reconciliation from Reported to Managed Summary on page 8.

(b)	On March 13, 2012, the Board of Directors increased the Firm’s quarterly common stock dividend from $0.25 to $0.30 per share.

(c)	Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.

(d)	Ratios are based upon annualized amounts.

(e)	ROTCE is a non-GAAP financial ratio, and it measures the Firm’s earnings as a percentage of tangible common equity. For further discussion of this ratio, see page 46.

(f)	Return on Basel I risk-weighted assets is the annualized earnings of the Firm divided by its average risk-weighted assets.

(g)

(h)	Estimated.

Page 2

JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,290,146		$	2,320,164		$	2,265,792		$	2,289,240		$	2,246,764			(1	)%		2	%	$	2,290,146		$	2,246,764			2	%
Wholesale loans		302,820			290,866			283,016			259,483			248,823			4			22			302,820			248,823			22
Consumer, excluding credit card loans		300,046			304,770			308,427			310,235			315,390			(2	)		(5	)		300,046			315,390			(5	)
Credit card loans		124,705			125,331			132,277			127,135			125,523			—			(1	)		124,705			125,523			(1	)

Total Loans		727,571			720,967			723,720			696,853			689,736			1			5			727,571			689,736			5
Deposits		1,115,886			1,128,512			1,127,806			1,092,708			1,048,685			(1	)		6			1,115,886			1,048,685			6
Common stockholders’ equity		183,772			181,469			175,773			174,487			175,079			1			5			183,772			175,079			5
Total stockholders’ equity		191,572			189,269			183,573			182,287			182,879			1			5			191,572			182,879			5

Deposits-to-loans ratio		153	%		157	%		156	%		157	%		152	%								153	%		152	%

Headcount		262,882			261,453			260,157			256,663			250,095			1			5			262,882			250,095			5

LINE OF BUSINESS NET INCOME/(LOSS)
Investment Bank	$	1,913		$	1,682		$	726		$	1,636		$	2,057			14			(7	)	$	3,595		$	4,427			(19	)
Retail Financial Services		2,267			1,753			533			1,161			383			29			492			4,020			(16	)		NM
Card Services & Auto		1,030			1,183			1,051			849			1,110			(13	)		(7	)		2,213			2,644			(16	)
Commercial Banking		673			591			643			571			607			14			11			1,264			1,153			10
Treasury & Securities Services		463			351			250			305			333			32			39			814			649			25
Asset Management		391			386			302			385			439			1			(11	)		777			905			(14	)
Corporate/Private Equity		(1,777	)		(1,022	)		223			(645	)		502			(74	)		NM			(2,799	)		1,224			NM

NET INCOME	$	4,960		$	4,924		$	3,728		$	4,262		$	5,431			1			(9	)	$	9,884		$	10,986			(10	)

Page 3

JPMORGAN CHASE & CO.

STATEMENTS OF INCOME

(in millions, except per share and ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
REVENUE
Investment banking fees	$	1,257		$	1,381		$	1,133		$	1,052		$	1,933			(9	)%		(35	)%	$	2,638		$	3,726			(29	)%
Principal transactions		(427	)		2,722			750			1,370			3,140			NM			NM			2,295			7,885			(71	)
Lending- and deposit-related fees		1,546			1,517			1,620			1,643			1,649			2			(6	)		3,063			3,195			(4	)
Asset management, administration and commissions		3,461			3,392			3,337			3,448			3,703			2			(7	)		6,853			7,309			(6	)
Securities gains		1,014			536			47			607			837			89			21			1,550			939			65
Mortgage fees and related income		2,265			2,010			725			1,380			1,103			13			105			4,275			616			NM
Credit card income		1,412			1,316			1,359			1,666			1,696			7			(17	)		2,728			3,133			(13	)
Other income		506			1,512	(e)		369			780			882			(67	)		(43	)		2,018			1,456			39

Noninterest revenue		11,034			14,386			9,340			11,946			14,943			(23	)		(26	)		25,420			28,259			(10	)
Interest income		14,099			14,701			15,054			15,160			15,632			(4	)		(10	)		28,800			31,079			(7	)
Interest expense		2,953			3,035			2,923			3,343			3,796			(3	)		(22	)		5,988			7,338			(18	)

Net interest income		11,146			11,666			12,131			11,817			11,836			(4	)		(6	)		22,812			23,741			(4	)

TOTAL NET REVENUE		22,180			26,052			21,471			23,763			26,779			(15	)		(17	)		48,232			52,000			(7	)
Provision for credit losses		214			726			2,184			2,411			1,810			(71	)		(88	)		940			2,979			(68	)
NONINTEREST EXPENSE
Compensation expense		7,427			8,613			6,297			6,908			7,569			(14	)		(2	)		16,040			15,832			1
Occupancy expense		1,080			961			1,047			935			935			12			16			2,041			1,913			7
Technology, communications and equipment expense		1,282			1,271			1,282			1,248			1,217			1			5			2,553			2,417			6
Professional and outside services		1,857			1,795			2,021			1,860			1,866			3			—			3,652			3,601			1
Marketing		642			680			814			926			744			(6	)		(14	)		1,322			1,403			(6	)
Other expense (a)		2,487			4,832			2,872			3,445			4,299			(49	)		(42	)		7,319			7,242			1
Amortization of intangibles		191			193			207			212			212			(1	)		(10	)		384			429			(10	)

TOTAL NONINTEREST EXPENSE		14,966			18,345			14,540			15,534			16,842			(18	)		(11	)		33,311			32,837			1

Income before income tax expense		7,000			6,981			4,747			5,818			8,127			—			(14	)		13,981			16,184			(14	)
Income tax expense		2,040			2,057			1,019			1,556			2,696			(1	)		(24	)		4,097			5,198			(21	)

NET INCOME	$	4,960		$	4,924		$	3,728		$	4,262		$	5,431			1			(9	)	$	9,884		$	10,986			(10	)


PER COMMON SHARE DATA
Basic earnings	$	1.22		$	1.20		$	0.90		$	1.02		$	1.28			2			(5	)	$	2.41		$	2.57			(6	)
Diluted earnings		1.21			1.19			0.90			1.02			1.27			2			(5	)		2.41			2.55			(5	)

FINANCIAL RATIOS
Return on common equity (b)		11	%		11	%		8	%		9	%		12	%								11	%		13	%
Return on tangible common equity (b)(c)		15			15			11			13			17									15			18
Return on assets (b)		0.88			0.88			0.65			0.76			0.99									0.88			1.03
Return on risk-weighted assets (c)		1.59	(d)		1.61			1.21			1.40			1.82									1.60			1.86
Effective income tax rate		29			29			21	(f)		27	(f)		33									29			32
Overhead ratio		67			70			68			65			63									69			63

(a)

Includes litigation expense of $0.3 billion, $2.7 billion, $0.6 billion, $1.3 billion and $1.9 billion for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $3.0 billion and $3.0 billion for the six months ended June 30, 2012 and 2011, respectively.

(b)	Ratios are based upon annualized amounts.

(c)	For further discussion of ROTCE and return on Basel I risk-weighted assets, see pages 2 and 46.

(d)	Estimated.

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

(f)	Reflects lower reported pretax income and changes in the proportion of income subject to U.S. federal and state and local taxes, as well as tax benefits associated with state and local income taxes.

Page 4

JPMORGAN CHASE & CO.

CONSOLIDATED BALANCE SHEETS

(in millions)


																Jun 30, 2012 Change
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2012			Jun 30, 2011
ASSETS
Cash and due from banks	$	44,866		$	55,383		$	59,602		$	56,766		$	30,466			(19	)%		47	%
Deposits with banks		130,383			115,028			85,279			128,877			169,880			13			(23	)
Federal funds sold and securities purchased under resale agreements		255,188			240,484			235,314			248,042			213,362			6			20
Securities borrowed		138,209			135,650			142,462			131,561			121,493			2			14
Trading assets:
Debt and equity instruments		331,781			370,623			351,486			352,678			381,339			(10	)		(13	)
Derivative receivables		85,543			85,010			92,477			108,853			77,383			1			11
Securities		354,595			381,742			364,793			339,349			324,741			(7	)		9
Loans		727,571			720,967			723,720			696,853			689,736			1			5
Less: Allowance for loan losses		23,791			25,871			27,609			28,350			28,520			(8	)		(17	)

Loans, net of allowance for loan losses		703,780			695,096			696,111			668,503			661,216			1			6
Accrued interest and accounts receivable		67,939			64,833			61,478			72,080			80,292			5			(15	)
Premises and equipment		14,206			14,213			14,041			13,812			13,679			—			4
Goodwill		48,131			48,208			48,188			48,180			48,882			—			(2	)
Mortgage servicing rights		7,118			8,039			7,223			7,833			12,243			(11	)		(42	)
Other intangible assets		2,813			3,029			3,207			3,396			3,679			(7	)		(24	)
Other assets		105,594			102,826			104,131			109,310			108,109			3			(2	)

TOTAL ASSETS	$	2,290,146		$	2,320,164		$	2,265,792		$	2,289,240		$	2,246,764			(1	)		2


LIABILITIES
Deposits	$	1,115,886		$	1,128,512		$	1,127,806		$	1,092,708		$	1,048,685			(1	)		6
Federal funds purchased and securities loaned or sold under repurchase agreements		261,657			250,483			213,532			238,585			254,124			4			3
Commercial paper		50,563			50,577			51,631			51,073			51,160			—			(1	)
Other borrowed funds		21,689			27,298			21,908			29,318			30,208			(21	)		(28	)
Trading liabilities:
Debt and equity instruments		70,812			71,529			66,718			76,592			84,865			(1	)		(17	)
Derivative payables		76,249			74,767			74,977			79,249			63,668			2			20
Accounts payable and other liabilities		207,126			204,148			202,895			199,769			184,490			1			12
Beneficial interests issued by consolidated VIEs		55,053			67,750			65,977			65,971			67,457			(19	)		(18	)
Long-term debt		239,539			255,831			256,775			273,688			279,228			(6	)		(14	)

TOTAL LIABILITIES		2,098,574			2,130,895			2,082,219			2,106,953			2,063,885			(2	)		2

STOCKHOLDERS’ EQUITY
Preferred stock		7,800			7,800			7,800			7,800			7,800			—			—
Common stock		4,105			4,105			4,105			4,105			4,105			—			—
Capital surplus		94,201			94,070			95,602			95,078			95,061			—			(1	)
Retained earnings		95,518			91,888			88,315			85,726			82,612			4			16
Accumulated other comprehensive income		2,272			2,645			944			1,964			1,638			(14	)		39
Shares held in RSU Trust, at cost		(38	)		(38	)		(38	)		(53	)		(53	)		—			28
Treasury stock, at cost		(12,286	)		(11,201	)		(13,155	)		(12,333	)		(8,284	)		(10	)		(48	)

TOTAL STOCKHOLDERS’ EQUITY		191,572			189,269			183,573			182,287			182,879			1			5

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,290,146		$	2,320,164		$	2,265,792		$	2,289,240		$	2,246,764			(1	)		2

Page 5

JPMORGAN CHASE & CO.

CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(in millions, except rates)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
AVERAGE BALANCES
ASSETS
Deposits with banks	$	111,441		$	110,817		$	89,145		$	116,062		$	75,801			1	%		47	%	$	111,129		$	56,584			96	%
Federal funds sold and securities purchased under resale agreements		242,184			230,444			230,494			211,884			202,036			5			20			236,314			202,256			17
Securities borrowed		129,390			133,080			143,745			131,615			124,806			(3	)		4			131,235			119,726			10
Trading assets — debt instruments		235,990			228,397			241,645			257,950			285,104			3			(17	)		232,193			280,334			(17	)
Securities		366,130			369,273			358,698			331,330			342,248			(1	)		7			367,702			330,657			11
Loans		725,252			715,553			706,856			692,794			686,111			1			6			720,403			687,117			5
Other assets (a)		33,240			33,949			37,343			42,760			48,716			(2	)		(32	)		33,594			49,299			(32	)

Total interest-earning assets		1,843,627			1,821,513			1,807,926			1,784,395			1,764,822			1			4			1,832,570			1,725,973			6
Trading assets — equity instruments		110,718			126,938			116,720			119,890			137,611			(13	)		(20	)		118,828			139,769			(15	)
Trading assets — derivative receivables		89,345			90,446			94,925			96,612			82,860			(1	)		8			89,896			84,141			7
All other noninterest-earning assets		222,606			219,979			243,578			229,650			207,250			1			7			221,292			198,858			11

TOTAL ASSETS	$	2,266,296		$	2,258,876		$	2,263,149		$	2,230,547		$	2,192,543			—			3		$	2,262,586		$	2,148,741			5


LIABILITIES
Interest-bearing deposits	$	744,103		$	759,084		$	759,422		$	740,901		$	732,766			(2	)		2		$	751,593		$	716,932			5
Federal funds purchased and securities loaned or sold under repurchase agreements		249,186			233,415			230,355			235,438			281,843			7			(12	)		241,301			280,056			(14	)
Commercial paper		48,791			48,359			44,930			47,027			41,682			1			17			48,575			39,273			24
Trading liabilities — debt, short-term and other liabilities (b)		203,348			199,588			204,161			215,064			212,878			2			(4	)		201,467			203,398			(1	)
Beneficial interests issued by consolidated VIEs		60,046			65,360			65,322			66,545			69,399			(8	)		(13	)		62,703			71,156			(12	)
Long-term debt		250,494			255,246			269,542			279,235			273,934			(2	)		(9	)		252,871			271,559			(7	)

Total interest-bearing liabilities		1,555,968			1,561,052			1,573,732			1,584,210			1,612,502			—			(4	)		1,558,510			1,582,374			(2	)
Noninterest-bearing deposits		349,143			339,398			337,618			297,610			247,137			3			41			344,271			238,347			44
Trading liabilities — equity instruments		12,096			14,060			8,188			1,948			3,289			(14	)		268			13,078			5,568			135
Trading liabilities — derivative payables		78,704			76,069			72,965			75,828			66,009			3			19			77,387			68,634			13
All other noninterest-bearing liabilities		81,564			82,786			87,804			88,697			81,729			(1	)		—			82,174			74,259			11

TOTAL LIABILITIES		2,077,475			2,073,365			2,080,307			2,048,293			2,010,666			—			3			2,075,420			1,969,182			5

Preferred stock		7,800			7,800			7,800			7,800			7,800			—			—			7,800			7,800			—
Common stockholders’ equity		181,021			177,711			175,042			174,454			174,077			2			4			179,366			171,759			4

TOTAL STOCKHOLDERS’ EQUITY		188,821			185,511			182,842			182,254			181,877			2			4			187,166			179,559			4

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,266,296		$	2,258,876		$	2,263,149		$	2,230,547		$	2,192,543			—			3		$	2,262,586		$	2,148,741			5


AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks		0.49	%		0.55	%		0.75	%		0.63	%		0.76	%								0.52	%		0.87	%
Federal funds sold and securities purchased under resale agreements		1.07			1.14			1.19			1.28			1.20									1.10			1.14
Securities borrowed		(0.04	)(c)		0.11			0.04			0.05			0.10									0.04			0.13
Trading assets — debt instruments		3.96			4.30			4.22			4.32			4.23									4.13			4.27
Securities		2.42			2.60			2.57			2.66			3.10									2.51			3.00
Loans		4.96			5.14			5.22			5.28			5.36									5.05			5.49
Other assets (a)		0.74			0.83			1.51			1.47			1.30									0.78			1.25
Total interest-earning assets		3.12			3.28			3.34			3.40			3.58									3.20			3.66

INTEREST-BEARING LIABILITIES
Interest-bearing deposits		0.40			0.38			0.43			0.53			0.61									0.39			0.58
Federal funds purchased and securities loaned or sold under repurchase agreements		0.26			0.15			0.18			0.18			0.29									0.21			0.23
Commercial paper		0.18			0.15			0.13			0.16			0.19									0.16			0.20
Trading liabilities — debt, short-term and other liabilities (b)		0.66			0.61			0.67			1.05			1.26									0.63			1.34
Beneficial interests issued by consolidated VIEs		1.10			1.12			1.06			1.05			1.17									1.11			1.18
Long-term debt		2.47			2.71			2.15			2.10			2.31									2.59			2.35
Total interest-bearing liabilities		0.76			0.78			0.74			0.84			0.94									0.77			0.94

INTEREST RATE SPREAD		2.36	%		2.50	%		2.60	%		2.56	%		2.64	%								2.43	%		2.72	%
NET YIELD ON INTEREST-EARNING ASSETS		2.47	%		2.61	%		2.70	%		2.66	%		2.72	%								2.54	%		2.80	%

(a)	Includes margin loans.

(b)	Includes brokerage customer payables.

(c)	The negative yield on Securities borrowed during the second quarter of 2012 is a result of increased client-driven demand for certain securities combined with the impact of low interest rates.

Page 6

JPMORGAN CHASE & CO.

CORE NET INTEREST INCOME

(in millions, except ratios)

In addition to reviewing JPMorgan Chase’s net interest income on a managed basis, management also reviews core net interest income to assess the performance of its core lending, investing (including asset/liability management) and deposit-raising activities, excluding the impact of IB’s market-based activities. The core data presented below are non-GAAP financial measures due to the exclusion of IB’s market-based net interest income and the related assets. For a further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 76-78 of JPMorgan Chase’s 2011 Annual Report.


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
CORE NET INTEREST INCOME DATA (a)
Net interest income — managed basis (b)	$	11,341		$	11,837		$	12,288		$	11,950		$	11,957			(4	)%		(5	)%	$	23,178		$	23,981			(3	)%
Impact of market-based net interest income		1,345			1,569			1,800			1,866			1,829			(14	)		(26	)		2,914			3,663			(20	)

Core net interest income	$	9,996		$	10,268		$	10,488		$	10,084		$	10,128			(3	)		(1	)	$	20,264		$	20,318			—

Average interest-earning assets — managed basis	$	1,843,627		$	1,821,513		$	1,807,926		$	1,784,395		$	1,764,822			1			4		$	1,832,570		$	1,725,973			6
Impact of market-based earning assets		505,282			490,750			502,312			512,215			543,458			3			(7	)		498,016			532,253			(6	)

Core average interest-earning assets	$	1,338,345		$	1,330,763		$	1,305,614		$	1,272,180		$	1,221,364			1			10		$	1,334,554		$	1,193,720			12


Net interest yield on interest-earning assets - managed basis		2.47	%		2.61	%		2.70	%		2.66	%		2.72	%								2.54	%		2.80	%
Net interest yield on market-based activity		1.07			1.29			1.42			1.45			1.35									1.18			1.39
Core net interest yield on interest-earning assets		3.00			3.10			3.19			3.14			3.33									3.05			3.43

(a)	Includes core lending, investing and deposit-raising activities on a managed basis, across Retail Financial Services, Card Services & Auto, Commercial Banking, Treasury & Security Services, Asset Management, and Corporate/Private Equity, as well as Investment Banking credit portfolio loans.

(b)

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

Page 7

JPMORGAN CHASE & CO.

RECONCILIATION FROM REPORTED TO MANAGED SUMMARY

(in millions,except ratios)

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

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


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
OTHER INCOME
Other income — reported	$	506		$	1,512		$	369		$	780		$	882			(67	)%		(43	)%	$	2,018		$	1,456			39	%
Fully taxable-equivalent (“FTE”) adjustments (a)		517			534			570			472			510			(3	)		1			1,051			961			9

Other income — managed	$	1,023		$	2,046		$	939		$	1,252		$	1,392			(50	)		(27	)	$	3,069		$	2,417			27


TOTAL NONINTEREST REVENUE
Total noninterest revenue — reported	$	11,034		$	14,386		$	9,340		$	11,946		$	14,943			(23	)		(26	)	$	25,420		$	28,259			(10	)
Fully taxable-equivalent adjustments (a)		517			534			570			472			510			(3	)		1			1,051			961			9

Total noninterest revenue — managed	$	11,551		$	14,920		$	9,910		$	12,418		$	15,453			(23	)		(25	)	$	26,471		$	29,220			(9	)


NET INTEREST INCOME
Net interest income — reported	$	11,146		$	11,666		$	12,131		$	11,817		$	11,836			(4	)		(6	)	$	22,812		$	23,741			(4	)
Fully taxable-equivalent adjustments (a)		195			171			157			133			121			14			61			366			240			53

Net interest income — managed	$	11,341		$	11,837		$	12,288		$	11,950		$	11,957			(4	)		(5	)	$	23,178		$	23,981			(3	)


TOTAL NET REVENUE
Total net revenue — reported	$	22,180		$	26,052		$	21,471		$	23,763		$	26,779			(15	)		(17	)	$	48,232		$	52,000			(7	)
Fully taxable-equivalent adjustments (a)		712			705			727			605			631			1			13			1,417			1,201			18

Total net revenue — managed	$	22,892		$	26,757		$	22,198		$	24,368		$	27,410			(14	)		(16	)	$	49,649		$	53,201			(7	)


PRE-PROVISION PROFIT
Pre-provision profit — reported	$	7,214		$	7,707		$	6,931		$	8,229		$	9,937			(6	)		(27	)	$	14,921		$	19,163			(22	)
Fully taxable-equivalent adjustments (a)		712			705			727			605			631			1			13			1,417			1,201			18

Pre-provision profit — managed	$	7,926		$	8,412		$	7,658		$	8,834		$	10,568			(6	)		(25	)	$	16,338		$	20,364			(20	)


INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense — reported	$	7,000		$	6,981		$	4,747		$	5,818		$	8,127			—			(14	)	$	13,981		$	16,184			(14	)
Fully taxable-equivalent adjustments (a)		712			705			727			605			631			1			13			1,417			1,201			18

Income before income tax expense — managed	$	7,712		$	7,686		$	5,474		$	6,423		$	8,758			—			(12	)	$	15,398		$	17,385			(11	)


INCOME TAX EXPENSE
Income tax expense — reported	$	2,040		$	2,057		$	1,019		$	1,556		$	2,696			(1	)		(24	)	$	4,097		$	5,198			(21	)
Fully taxable-equivalent adjustments (a)		712			705			727			605			631			1			13			1,417			1,201			18

Income tax expense — managed	$	2,752		$	2,762		$	1,746		$	2,161		$	3,327			—			(17	)	$	5,514		$	6,399			(14	)


OVERHEAD RATIO
Overhead ratio — reported		67	%		70	%		68	%		65	%		63	%								69	%		63	%
Overhead ratio — managed		65			69			66			64			61									67			62

(a)	Predominantly recognized in Investment Bank and Commercial Banking business segments and Corporate/Private Equity.

Page 8

JPMORGAN CHASE & CO.

LINE OF BUSINESS FINANCIAL HIGHLIGHTS — MANAGED BASIS

(in millions)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
TOTAL NET REVENUE (FTE)
Investment Bank (a)	$	6,766		$	7,321		$	4,358		$	6,369		$	7,314			(8	)%		(7	)%	$	14,087		$	15,547			(9	)%
Retail Financial Services		7,935			7,649			6,395			7,535			7,142			4			11			15,584			12,608			24
Card Services & Auto		4,525			4,714			4,814			4,775			4,761			(4	)		(5	)		9,239			9,552			(3	)
Commercial Banking		1,691			1,657			1,687			1,588			1,627			2			4			3,348			3,143			7
Treasury & Securities Services		2,152			2,014			2,022			1,908			1,932			7			11			4,166			3,772			10
Asset Management		2,364			2,370			2,284			2,316			2,537			—			(7	)		4,734			4,943			(4	)
Corporate/Private Equity (a)		(2,541	)		1,032			638			(123	)		2,097			NM			NM			(1,509	)		3,636			NM

TOTAL NET REVENUE	$	22,892		$	26,757		$	22,198		$	24,368		$	27,410			(14	)		(16	)	$	49,649		$	53,201			(7	)


TOTAL NONINTEREST EXPENSE
Investment Bank	$	3,802		$	4,738		$	2,969		$	3,799		$	4,332			(20	)		(12	)	$	8,540		$	9,348			(9	)
Retail Financial Services		4,726			5,009			4,722			4,565			5,271			(6	)		(10	)		9,735			10,171			(4	)
Card Services & Auto		2,096			2,029			2,025			2,115			1,988			3			5			4,125			3,905			6
Commercial Banking		591			598			579			573			563			(1	)		5			1,189			1,126			6
Treasury & Securities Services		1,491			1,473			1,563			1,470			1,453			1			3			2,964			2,830			5
Asset Management		1,701			1,729			1,752			1,796			1,794			(2	)		(5	)		3,430			3,454			(1	)
Corporate/Private Equity		559			2,769			930			1,216			1,441			(80	)		(61	)		3,328			2,003			66

TOTAL NONINTEREST EXPENSE	$	14,966		$	18,345		$	14,540		$	15,534		$	16,842			(18	)		(11	)	$	33,311		$	32,837			1


PRE-PROVISION PROFIT/(LOSS)
Investment Bank (a)	$	2,964		$	2,583		$	1,389		$	2,570		$	2,982			15			(1	)	$	5,547		$	6,199			(11	)
Retail Financial Services		3,209			2,640			1,673			2,970			1,871			22			72			5,849			2,437			140
Card Services & Auto		2,429			2,685			2,789			2,660			2,773			(10	)		(12	)		5,114			5,647			(9	)
Commercial Banking		1,100			1,059			1,108			1,015			1,064			4			3			2,159			2,017			7
Treasury & Securities Services		661			541			459			438			479			22			38			1,202			942			28
Asset Management		663			641			532			520			743			3			(11	)		1,304			1,489			(12	)
Corporate/Private Equity (a)		(3,100	)		(1,737	)		(292	)		(1,339	)		656			(78	)		NM			(4,837	)		1,633			NM

PRE-PROVISION PROFIT	$	7,926		$	8,412		$	7,658		$	8,834		$	10,568			(6	)		(25	)	$	16,338		$	20,364			(20	)


PROVISION FOR CREDIT LOSSES
Investment Bank	$	21		$	(5	)	$	272		$	54		$	(183	)		NM			NM		$	16		$	(612	)		NM
Retail Financial Services		(555	)		(96	)		779			1,027			994			(478	)		NM			(651	)		2,193			NM
Card Services & Auto		734			738			1,060			1,264			944			(1	)		(22	)		1,472			1,297			13
Commercial Banking		(17	)		77			40			67			54			NM			NM			60			101			(41	)
Treasury & Securities Services		8			2			19			(20	)		(2	)		300			NM			10			2			400
Asset Management		34			19			24			26			12			79			183			53			17			212
Corporate/Private Equity		(11	)		(9	)		(10	)		(7	)		(9	)		(22	)		(22	)		(20	)		(19	)		(5	)

PROVISION FOR CREDIT LOSSES	$	214		$	726		$	2,184		$	2,411		$	1,810			(71	)		(88	)	$	940		$	2,979			(68	)


NET INCOME/(LOSS)
Investment Bank	$	1,913		$	1,682		$	726		$	1,636		$	2,057			14			(7	)	$	3,595		$	4,427			(19	)
Retail Financial Services		2,267			1,753			533			1,161			383			29			492			4,020			(16	)		NM
Card Services & Auto		1,030			1,183			1,051			849			1,110			(13	)		(7	)		2,213			2,644			(16	)
Commercial Banking		673			591			643			571			607			14			11			1,264			1,153			10
Treasury & Securities Services		463			351			250			305			333			32			39			814			649			25
Asset Management		391			386			302			385			439			1			(11	)		777			905			(14	)
Corporate/Private Equity		(1,777	)		(1,022	)		223			(645	)		502			(74	)		NM			(2,799	)		1,224			NM

TOTAL NET INCOME	$	4,960		$	4,924		$	3,728		$	4,262		$	5,431			1			(9	)	$	9,884		$	10,986			(10	)

(a)

Corporate/Private Equity includes an adjustment to offset Investment Bank’s (“IB”) inclusion of a credit allocation income/(expense) to Treasury & Securities Services (“TSS”) in total net revenue; TSS reports the credit allocation as a separate line on its income statement (not within total net revenue).

Page 9

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,245		$	1,375		$	1,119		$	1,039		$	1,922			(9	)%		(35	)%	$	2,620		$	3,701			(29	)%
Principal transactions (a)		3,063			3,210			364			2,253			2,309			(5	)		33			6,273			5,707			10
Asset management, administration and commissions		499			565			477			563			548			(12	)		(9	)		1,064			1,167			(9	)
All other income (b)		235			268			309			438			454			(12	)		(48	)		503			834			(40	)

Noninterest revenue		5,042			5,418			2,269			4,293			5,233			(7	)		(4	)		10,460			11,409			(8	)
Net interest income		1,724			1,903			2,089			2,076			2,081			(9	)		(17	)		3,627			4,138			(12	)

TOTAL NET REVENUE (c)		6,766			7,321			4,358			6,369			7,314			(8	)		(7	)		14,087			15,547			(9	)

Provision for credit losses		21			(5	)		272			54			(183	)		NM			NM			16			(612	)		NM

NONINTEREST EXPENSE
Compensation expense		2,011			2,901			1,172			1,850			2,564			(31	)		(22	)		4,912			5,858			(16	)
Noncompensation expense		1,791			1,837			1,797			1,949			1,768			(3	)		1			3,628			3,490			4

TOTAL NONINTEREST EXPENSE		3,802			4,738			2,969			3,799			4,332			(20	)		(12	)		8,540			9,348			(9	)


Income before income tax expense		2,943			2,588			1,117			2,516			3,165			14			(7	)		5,531			6,811			(19	)
Income tax expense		1,030			906			391			880			1,108			14			(7	)		1,936			2,384			(19	)

NET INCOME	$	1,913		$	1,682		$	726		$	1,636		$	2,057			14			(7	)	$	3,595		$	4,427			(19	)


FINANCIAL RATIOS
ROE		19	%		17	%		7	%		16	%		21	%								18	%		22	%
ROA		0.97			0.86			0.36			0.81			0.98									0.91			1.08
Overhead ratio		56			65			68			60			59									61			60
Compensation expense as a percent of total net revenue (d)		30			40			27			29			35									35			38

REVENUE BY BUSINESS
Investment banking fees:
Advisory	$	356		$	281		$	397		$	365		$	601			27			(41	)	$	637		$	1,030			(38	)
Equity underwriting		250			276			169			178			455			(9	)		(45	)		526			834			(37	)
Debt underwriting		639			818			553			496			866			(22	)		(26	)		1,457			1,837			(21	)

Total investment banking fees		1,245			1,375			1,119			1,039			1,922			(9	)		(35	)		2,620			3,701			(29	)
Fixed income markets (e)		3,734			4,664			2,491			3,328			4,280			(20	)		(13	)		8,398			9,518			(12	)
Equity markets (f)		1,243			1,294			779			1,424			1,223			(4	)		2			2,537			2,629			(3	)
Credit portfolio (b)(g)		544			(12	)		(31	)		578			(111	)		NM			NM			532			(301	)		NM

Total net revenue	$	6,766		$	7,321		$	4,358		$	6,369		$	7,314			(8	)		(7	)	$	14,087		$	15,547			(9	)

(a)

Principal transactions included debit valuation adjustments (“DVA”) related to derivatives and structured liabilities measured at fair value. DVA gains/(losses) were $755 million, ($907) million, ($567) million, $1.9 billion and $165 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $(152) million and $119 million for the six months ended June 30, 2012 and 2011, respectively.

(b)

All other income included lending- and deposit-related fees. In addition, IB manages traditional credit exposures related to Global Corporate Bank (“GCB”) on behalf of IB and TSS, and IB and TSS share the economics related to the Firm’s GCB clients. IB recognizes this sharing agreement also within all other income.

(c)

Total net revenue included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as tax-exempt income from municipal bond investments of $494 million, $509 million, $510 million, $440 million and $493 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $1.0 billion and $931 million for the six months ended June 30, 2012 and 2011, respectively.

(d)

Compensation expense as a percentage of total net revenue excluding DVA was 33%, 35%, 24%, 41% and 36% for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and 34% and 38% for the six months ended June 30, 2012 and 2011, respectively.

(e)

Fixed income markets primarily include revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets. Includes DVA gains/(losses) of $241 million, ($352) million, ($135) million, $529 million and $64 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $(111) million and $159 million for the six months ended June 30, 2012 and 2011, respectively.

(f)

Equity markets primarily include revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and Prime Services. Includes DVA gains/(losses) of $200 million, ($130) million, ($27) million, $377 million and $78 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $70 million and $6 million for the six months ended June 30, 2012 and 2011, respectively.

(g)

Credit portfolio revenue includes net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring, for IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities. Includes DVA gains/(losses) of $314 million, ($425) million, ($405) million, $979 million and $23 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $(111) million and $(46)million for the six months ended June 30, 2012 and 2011, respectively.

Page 10

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except headcount and ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	829,655		$	812,959		$	776,430		$	824,733		$	809,630			2	%		2	%	$	829,655		$	809,630			2	%
Loans:
Loans retained (a)		72,159			67,213			68,208			58,163			56,107			7			29			72,159			56,107			29
Loans held-for-sale and loans at fair value		2,278			5,451			2,915			2,311			3,466			(58	)		(34	)		2,278			3,466			(34	)

Total loans		74,437			72,664			71,123			60,474			59,573			2			25			74,437			59,573			25
Equity		40,000			40,000			40,000			40,000			40,000			—			—			40,000			40,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	792,628		$	789,569		$	790,644		$	803,667		$	841,355			—			(6	)	$	791,099		$	828,662			(5	)
Trading assets — debt and equity instruments		304,203			313,267			313,005			329,984			374,694			(3	)		(19	)		308,735			371,841			(17	)
Trading assets — derivative receivables		74,965			76,225			76,786			79,044			69,346			(2	)		8			75,595			68,409			11
Loans:
Loans retained (a)		70,837			66,710			62,698			57,265			54,590			6			30			68,774			53,983			27
Loans held-for-sale and loans at fair value		3,158			2,767			2,082			2,431			4,154			14			(24	)		2,963			3,995			(26	)

Total loans		73,995			69,477			64,780			59,696			58,744			7			26			71,737			57,978			24
Adjusted assets (b)		560,356			559,566			564,158			597,513			628,475			—			(11	)		559,961			619,805			(10	)
Equity		40,000			40,000			40,000			40,000			40,000			—			—			40,000			40,000			—

Headcount		26,553			25,707			25,999			26,615			27,716			3			(4	)		26,553			27,716			(4	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(10	)	$	(35	)	$	199		$	(168	)	$	7			71			NM		$	(45	)	$	130			NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(c)		657			695			1,035			1,274			1,494			(5	)		(56	)		657			1,494			(56	)
Nonaccrual loans held-for-sale and loans at fair value		158			182			166			150			193			(13	)		(18	)		158			193			(18	)

Total nonaccrual loans		815			877			1,201			1,424			1,687			(7	)		(52	)		815			1,687			(52	)

Derivative receivables (d)		451			317			293			281			213			42			112			451			213			112
Assets acquired in loan satisfactions		68			79			79			77			83			(14	)		(18	)		68			83			(18	)

Total nonperforming assets		1,334			1,273			1,573			1,782			1,983			5			(33	)		1,334			1,983			(33	)
Allowance for credit losses:
Allowance for loan losses		1,419			1,386			1,436			1,337			1,178			2			20			1,419			1,178			20
Allowance for lending-related commitments		533			530			418			444			383			1			39			533			383			39

Total allowance for credit losses		1,952			1,916			1,854			1,781			1,561			2			25			1,952			1,561			25

Net charge-off/(recovery) rate (a)		(0.06	) %		(0.21	) %		1.26	%		(1.16	) %		0.05	%								(0.13	) %		0.49	%
Allow. for loan losses to period-end loans retained (a)		1.97			2.06			2.11			2.30			2.10									1.97			2.10
Allow. for loan losses to nonaccrual loans retained (a)(c)		216			199			139			105			79									216			79
Nonaccrual loans to total period-end loans		1.09			1.21			1.69			2.35			2.83									1.09			2.83

(a)	Loans retained included credit portfolio loans, leveraged leases and other held-for-investment loans.

(b)	Adjusted assets, a non-GAAP financial measure, is presented to assist the reader in comparing IB’s asset and capital levels with those of other investment banks in the securities industry. For further discussion of adjusted assets, see page 46.

(c)	Allowance for loan losses of $201 million, $225 million, $263 million, $320 million and $377 million were held against these nonaccrual loans at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively.

(d)	Effective in the first quarter of 2012, amounts included both defaulted derivatives and derivatives that have been risk-rated as nonperforming; prior periods were revised as previously reported amounts only included defaulted derivatives.

Page 11

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and rankings data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
MARKET RISK—95% CONFIDENCE LEVEL AVERAGE TRADING AND CREDIT PORTFOLIO VAR
Trading activities:
Fixed income	$	66		$	60		$	56		$	48		$	45			10	%		47	%	$	63		$	47			34	%
Foreign exchange		10			11			12			10			9			(9	)		11			11			10			10
Equities		20			17			19			19			25			18			(20	)		19			27			(30	)
Commodities and other		13			21			20			15			16			(38	)		(19	)		17			15			13
Diversification benefit to trading VaR (a)		(44	)		(46	)		(50	)		(39	)		(37	)		4			(19	)		(46	)		(38	)		(21	)

Total trading VaR (b)		65			63			57			53			58			3			12			64			61			5

Credit portfolio VaR (c)		25			32			39			38			27			(22	)		(7	)		29			27			7
Diversification benefit to trading and credit portfolio VaR (a)		(15	)		(14	)		(21	)		(21	)		(8	)		(7	)		(88	)		(15	)		(8	)		(88	)

Total trading and credit portfolio VaR	$	75		$	81		$	75		$	70		$	77			(7	)		(3	)	$	78		$	80			(3	)



	SIX MONTHS ENDED JUNE 30, 2012					FULL YEAR 2011
	Market Share			Rankings		Market Share			Rankings
MARKET SHARES AND RANKINGS (d)
Global investment banking fees (e)		7.6	%		#1		8.0	%		#1
Debt, equity and equity-related
Global		7.1			1		6.7			1
U.S.		11.3			1		11.1			1
Syndicated loans
Global		9.9			1		10.8			1
U.S.		18.2			1		21.2			1
Long-term debt (f)
Global		7.0			1		6.7			1
U.S.		11.2			1		11.2			1
Equity and equity-related
Global (g)		8.2			3		6.8			3
U.S.		11.1			4		12.5			1
Announced M&A (h)
Global		20.0			2		18.2			2
U.S.		20.7			2		26.7			2

(a)	Average portfolio VaR was less than the sum of the VaR of the components described above, due to portfolio diversification. The diversification effect reflects the fact that the risks are not perfectly correlated.

(b)

Trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in IB. It also captures the credit spread sensitivities of certain mortgage products and syndicated lending facilities that the Firm intends to distribute. Notwithstanding, particular risk parameters of certain products are not fully captured, for example, correlation risk. Trading VaR does not include the DVA on derivative and structured liabilities to reflect the credit quality of the Firm.

(c)	Credit portfolio VaR includes the derivative CVA, hedges of the CVA and the fair value of hedges of the retained loan portfolio, which are all reported in principal transactions revenue. However, Credit portfolio VaR does not include the retained loan portfolio, which is not reported at fair value.

(d)

Source: Dealogic. Global Investment Banking fees reflects the ranking of fees and market share. The remaining rankings reflect transaction volume rank and market share. Global announced M&A is based on transaction value at announcement; because of joint M&A assignments, M&A market share of all participants will add up to more than 100%. All other transaction volume-based rankings are based on proceeds, with full credit to each book manager/equal if joint.

(e)	Global investment banking fees rankings exclude money market, short-term debt and shelf deals.

(f)	Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities and mortgage-backed securities; and exclude money market, short-term debt, and U.S. municipal securities.

(g)	Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.

(h)	U.S. announced M&A represents any U.S. involvement ranking.

Page 12

JPMORGAN CHASE & CO.

INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions)


	QUARTERLY TRENDS																SIX MONTHS ENDED JUNE 30,
											2Q12 Change										2012 Change
	2Q12		1Q12		4Q11		3Q11		2Q11		1Q12			2Q11			2012		2011		2011
INTERNATIONAL METRICS
Total net revenue: (a)
Europe/Middle East/Africa	$	2,106	$	2,400	$	1,353	$	1,995	$	2,478		(12	)%		(15	)%	$	4,506	$	5,070		(11	)%
Asia/Pacific		662		758		502		948		762		(13	)		(13	)		1,420		1,884		(25	)
Latin America/Caribbean		304		339		240		175		337		(10	)		(10	)		643		664		(3	)
North America		3,694		3,824		2,263		3,251		3,737		(3	)		(1	)		7,518		7,929		(5	)

Total net revenue	$	6,766	$	7,321	$	4,358	$	6,369	$	7,314		(8	)		(7	)	$	14,087	$	15,547		(9	)

Loans (period-end): (b)
Europe/Middle East/Africa	$	18,804	$	16,358	$	15,905	$	15,361	$	15,370		15			22		$	18,804	$	15,370		22
Asia/Pacific		8,268		7,969		7,889		6,892		6,211		4			33			8,268		6,211		33
Latin America/Caribbean		4,195		3,764		3,148		3,222		2,633		11			59			4,195		2,633		59
North America		40,892		39,122		41,266		32,688		31,893		5			28			40,892		31,893		28

Total loans	$	72,159	$	67,213	$	68,208	$	58,163	$	56,107		7			29		$	72,159	$	56,107		29

(a)	Regional revenue is based primarily on the domicile of the client and/or location of the trading desk.

(b)	Includes retained loans based on the domicile of the client.

Page 13

JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	777		$	748		$	808		$	833		$	813			4	%		(4	)%	$	1,525		$	1,549			(2	)%
Asset management, administration and commissions		522			527			494			513			499			(1	)		5			1,049			984			7
Mortgage fees and related income		2,265			2,008			723			1,380			1,100			13			106			4,273			611			NM
Credit card income		344			315			305			611			572			9			(40	)		659			1,109			(41	)
Other income		126			126			107			136			131			—			(4	)		252			242			4

Noninterest revenue		4,034			3,724			2,437			3,473			3,115			8			30			7,758			4,495			73
Net interest income		3,901			3,925			3,958			4,062			4,027			(1	)		(3	)		7,826			8,113			(4	)

TOTAL NET REVENUE		7,935			7,649			6,395			7,535			7,142			4			11			15,584			12,608			24
Provision for credit losses		(555	)		(96	)		779			1,027			994			(478	)		NM			(651	)		2,193			NM

NONINTEREST EXPENSE
Compensation expense		2,298			2,305			2,130			2,101			1,937			—			19			4,603			3,813			21
Noncompensation expense		2,378			2,653			2,534			2,404			3,274			(10	)		(27	)		5,031			6,238			(19	)
Amortization of intangibles		50			51			58			60			60			(2	)		(17	)		101			120			(16	)

TOTAL NONINTEREST EXPENSE		4,726			5,009			4,722			4,565			5,271			(6	)		(10	)		9,735			10,171			(4	)


Income before income tax expense		3,764			2,736			894			1,943			877			38			329			6,500			244			NM
Income tax expense		1,497			983			361			782			494			52			203			2,480			260			NM

NET INCOME/(LOSS)	$	2,267		$	1,753		$	533		$	1,161		$	383			29			492		$	4,020		$	(16	)		NM


FINANCIAL RATIOS
ROE		34	%		27	%		8	%		18	%		6	%								31	%		—	%
Overhead ratio		60			65			74			61			74									62			81
Overhead ratio excluding core deposit intangibles (a)		59			65			73			60			73									62			80

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	264,320		$	269,442		$	274,795		$	276,799		$	283,753			(2	)		(7	)	$	264,320		$	283,753			(7	)
Loans:
Loans retained		222,773			227,491			232,555			235,572			241,127			(2	)		(8	)		222,773			241,127			(8	)
Loans held-for-sale and loans at fair value (b)		14,254			12,496			12,694			13,153			13,558			14			5			14,254			13,558			5

Total loans		237,027			239,987			245,249			248,725			254,685			(1	)		(7	)		237,027			254,685			(7	)
Deposits		413,571			413,901			395,797			388,735			378,371			—			9			413,571			378,371			9
Equity		26,500			26,500			25,000			25,000			25,000			—			6			26,500			25,000			6

SELECTED BALANCE SHEET DATA (average)
Total assets		268,507			271,973			278,497			283,443			287,235			(1	)		(7	)		270,240			292,557			(8	)
Loans:
Loans retained		225,144			230,170			233,958			238,273			244,030			(2	)		(8	)		227,657			247,218			(8	)
Loans held-for-sale and loans at fair value (b)		17,694			15,621			16,680			16,608			14,613			13			21			16,658			16,058			4

Total loans		242,838			245,791			250,638			254,881			258,643			(1	)		(6	)		244,315			263,276			(7	)
Deposits		409,256			399,561			389,519			382,202			378,932			2			8			404,408			375,379			8
Equity		26,500			26,500			25,000			25,000			25,000			—			6			26,500			25,000			6

Headcount		134,380			134,321			133,075			128,992			122,728			—			9			134,380			122,728			9

(a)

Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles (“CDI”)), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. This non-GAAP ratio excluded Consumer & Business Banking’s CDI amortization expense related to prior business combination transactions of $50 million, $51 million, $58 million, $60 million and $60 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $101 million and $120 million for the six months ended June 30, 2012 and 2011, respectively.

(b)	Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets.

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JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

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


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	795		$	904		$	1,009		$	1,027		$	1,069			(12	)%		(26	)%	$	1,699		$	2,268			(25	)%
Nonaccrual loans:
Nonaccrual loans retained		7,835			8,191			7,170			7,579			8,088			(4	)		(3	)		7,835			8,088			(3	)
Nonaccrual loans held-for-sale and loans at fair value		98			101			103			132			142			(3	)		(31	)		98			142			(31	)

Total nonaccrual loans (a)(b)(c)(d)		7,933			8,292			7,273			7,711			8,230			(4	)		(4	)		7,933			8,230			(4	)
Nonperforming assets (a)(b)(c)(d)		8,645			9,109			8,064			8,576			9,175			(5	)		(6	)		8,645			9,175			(6	)
Allowance for loan losses		12,897			14,247			15,247			15,479			15,479			(9	)		(17	)		12,897			15,479			(17	)

Net charge-off rate (e)		1.42	%		1.58	%		1.71	%		1.71	%		1.76	%								1.50	%		1.85	%
Net charge-off rate excluding purchased credit-impaired (“PCI”) loans (e)		1.98			2.20			2.39			2.39			2.46									2.09			2.59
Allowance for loan losses to ending loans retained		5.79			6.26			6.56			6.57			6.42									5.79			6.42
Allowance for loan losses to ending loans retained excluding PCI loans (f)		4.49			5.22			5.71			6.26			6.12									4.49			6.12
Allowance for loan losses to nonaccrual loans retained (a)(d)(f)		92			104			133			139			130									92			130
Nonaccrual loans to total loans (d)		3.35			3.46			2.97			3.10			3.23									3.35			3.23
Nonaccrual loans to total loans excluding PCI loans (a)(d)		4.55			4.71			4.05			4.25			4.43									4.55			4.43

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

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

(c)

(d)

At June 30, 2012 and March 31, 2012, includes $1.5 billion and $1.6 billion, respectively, of performing junior liens that are subordinate to senior liens that are 90 days or more past due; such junior liens are now being reported as nonaccrual loans based upon regulatory guidance issued in the first quarter of 2012. Of the total, $1.3 billion and $1.4 billion were current at June 30, 2012 and March 31, 2012, respectively.

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

(f)	An allowance for loan losses of $5.7 billion at June 30, 2012, March 31, 2012 and December 31, 2011 and $4.9 billion at September 30, 2011 and June 30, 2011 was recorded for PCI loans; these amounts were also excluded from the applicable ratios.

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JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

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


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
CONSUMER & BUSINESS BANKING
Noninterest revenue	$	1,646		$	1,585		$	1,603		$	1,952		$	1,889			4	%		(13	)%	$	3,231		$	3,646			(11	)%
Net interest income		2,680			2,675			2,714			2,730			2,706			—			(1	)		5,355			5,365			—

Total net revenue		4,326			4,260			4,317			4,682			4,595			2			(6	)		8,586			9,011			(5	)
Provision for credit losses		(2	)		96			132			126			42			NM			NM			94			161			(42	)
Noninterest expense		2,742			2,866			2,848			2,842			2,713			(4	)		1			5,608			5,512			2

Income before income tax expense		1,586			1,298			1,337			1,714			1,840			22			(14	)		2,884			3,338			(14	)

Net income	$	946		$	774		$	802		$	1,023		$	1,098			22			(14	)	$	1,720		$	1,991			(14	)


Overhead ratio		63	%		67	%		66	%		61	%		59	%								65	%		61	%
Overhead ratio excluding core deposit intangibles (a)		62			66			65			59			58									64			60

BUSINESS METRICS
Business banking origination volume	$	1,787		$	1,540		$	1,389		$	1,440		$	1,573			16			14		$	3,327		$	2,998			11
End-of-period loans		18,218			17,822			17,652			17,272			17,141			2			6			18,218			17,141			6
End-of-period deposits:
Checking		156,449			159,075			147,779			142,064			136,297			(2	)		15			156,449			136,297			15
Savings		203,910			200,662			191,891			186,733			182,127			2			12			203,910			182,127			12
Time and other		34,403			35,642			36,743			39,017			41,948			(3	)		(18	)		34,403			41,948			(18	)

Total end-of-period deposits		394,762			395,379			376,413			367,814			360,372			—			10			394,762			360,372			10
Average loans		17,934			17,667			17,363			17,172			17,057			2			5			17,800			16,972			5
Average deposits:
Checking		151,733			147,455			140,672			137,033			136,558			3			11			149,594			134,269			11
Savings		202,685			197,199			189,553			184,590			180,892			3			12			199,942			178,028			12
Time and other		35,096			36,121			37,708			40,588			43,053			(3	)		(18	)		35,608			44,039			(19	)

Total average deposits		389,514			380,775			367,933			362,211			360,503			2			8			385,144			356,336			8
Deposit margin		2.62	%		2.68	%		2.76	%		2.82	%		2.83	%								2.65	%		2.86	%
Average assets	$	30,275		$	30,857		$	30,373		$	30,074		$	29,047			(2	)		4		$	30,566		$	29,227			5

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs		98			96			132			126			117			2			(16	)		194			236			(18	)
Net charge-off rate		2.20	%		2.19	%		3.02	%		2.91	%		2.74	%								2.19	%		2.80	%
Allowance for loan losses	$	698		$	798		$	798		$	800		$	800			(13	)		(13	)	$	698		$	800			(13	)
Nonperforming assets		597			663			710			773			784			(10	)		(24	)		597			784			(24	)

RETAIL BRANCH BUSINESS METRICS
Investment sales volume		6,171			6,598			4,696			5,102			6,334			(6	)		(3	)		12,769			12,918			(1	)
Client investment assets		147,641			147,083			137,853			132,255			140,285			—			5			147,641			140,285			5
% managed accounts		26	%		26	%		24	%		23	%		23	%								26	%		23	%

Number of:
Branches		5,563			5,541			5,508			5,396			5,340			—			4			5,563			5,340			4
Chase Private Client branch locations		738			366			262			139			16			102			NM			738			16			NM
ATMs		18,132			17,654			17,235			16,708			16,443			3			10			18,132			16,443			10
Personal bankers		24,052			24,198			24,308			24,205			23,330			(1	)		3			24,052			23,330			3
Sales specialists		6,179			6,110			6,017			5,639			5,289			1			17			6,179			5,289			17
Client advisors		3,075			3,131			3,201			3,177			3,112			(2	)		(1	)		3,075			3,112			(1	)
Active online customers (in thousands)		17,929			17,915			17,334			17,326			17,083			—			5			17,929			17,083			5
Active mobile customers (in thousands)		9,075			8,570			8,391			7,234			6,580			6			38			9,075			6,580			38
Chase Private Clients		50,649			32,857			21,723			11,711			5,807			54			NM			50,649			5,807			NM
Checking accounts (in thousands)		27,384			27,034			26,626			26,541			26,266			1			4			27,384			26,266			4

(a)	Consumer & Business Banking uses the overhead ratio (excluding the amortization of CDI), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. See footnote (a) on page 14 for further details.

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JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
MORTGAGE PRODUCTION AND SERVICING
Mortgage fees and related income	$	2,265		$	2,008		$	723		$	1,380		$	1,100			13	%		106	%	$	4,273		$	611			NM	%
Other noninterest revenue		110			123			124			118			106			(11	)		4			233			210			11
Net interest income		194			177			171			204			124			10			56			371			395			(6	)

Total net revenue		2,569			2,308			1,018			1,702			1,330			11			93			4,877			1,216			301
Provision for credit losses		1			—			1			2			(2	)		NM			NM			1			2			(50	)
Noninterest expense		1,572			1,724			1,442			1,360			2,187			(9	)		(28	)		3,296			3,933			(16	)

Income/(loss) before income tax expense/(benefit)		996			584			(425	)		340			(855	)		71			NM			1,580			(2,719	)		NM

Net income/(loss)	$	604		$	461		$	(258	)	$	205		$	(649	)		31			NM		$	1,065		$	(1,779	)		NM

Overhead ratio		61	%		75	%		142	%		80	%		164	%								68	%		323	%
FUNCTIONAL RESULTS
Production
Production revenue	$	1,362		$	1,432		$	859		$	1,090		$	767			(5	)		78		$	2,794		$	1,446			93
Production-related net interest & other income		199			187			210			213			199			6			—			386			417			(7	)

Production-related revenue, excl. repurchase losses		1,561			1,619			1,069			1,303			966			(4	)		62			3,180			1,863			71
Production expense		620			573			518			496			457			8			36			1,193			881			35

Income, excluding repurchase losses		941			1,046			551			807			509			(10	)		85			1,987			982			102
Repurchase losses		(10	)		(302	)		(390	)		(314	)		(223	)		97			96			(312	)		(643	)		51

Income before income tax expense		931			744			161			493			286			25			226			1,675			339			394
Servicing
Loan servicing revenue		1,004			1,039			1,032			1,039			1,011			(3	)		(1	)		2,043			2,063			(1	)
Servicing-related net interest & other income		108			112			90			115			29			(4	)		272			220			185			19

Servicing-related revenue		1,112			1,151			1,122			1,154			1,040			(3	)		7			2,263			2,248			1
MSR asset modeled amortization		(327	)		(351	)		(406	)		(457	)		(478	)		7			32			(678	)		(1,041	)		35
Default servicing expense (a)		705			890			702			585			1,449			(21	)		(51	)		1,595			2,527			(37	)
Core servicing expense (a)		248			261			223			281			279			(5	)		(11	)		509			527			(3	)

Income/(loss), excluding MSR risk management		(168	)		(351	)		(209	)		(169	)		(1,166	)		52			86			(519	)		(1,847	)		72
MSR risk management, including related net interest income/(expense)		233			191			(377	)		16			25			22			NM			424			(1,211	)		NM

Income/(loss) before income tax expense/(benefit)		65			(160	)		(586	)		(153	)		(1,141	)		NM			NM			(95	)		(3,058	)		97

Net Income/(loss)	$	604		$	461		$	(258	)	$	205		$	(649	)		31			NM		$	1,065		$	(1,779	)		NM

SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS
Net production revenue:
Production revenue	$	1,362		$	1,432		$	859		$	1,090		$	767			(5	)		78		$	2,794		$	1,446			93
Repurchase losses		(10	)		(302	)		(390	)		(314	)		(223	)		97			96			(312	)		(643	)		51

Net production revenue		1,352			1,130			469			776			544			20			149			2,482			803			209
Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue		1,004			1,039			1,032			1,039			1,011			(3	)		(1	)		2,043			2,063			(1	)
Changes in MSR asset fair value due to modeled amortization		(327	)		(351	)		(406	)		(457	)		(478	)		7			32			(678	)		(1,041	)		35

Total operating revenue		677			688			626			582			533			(2	)		27			1,365			1,022			34
Risk management:
Changes in MSR asset fair value due to inputs or assumptions in model		(1,117	)		596			(832	)		(4,574	)		(960	)		NM			(16	)		(521	)		(1,711	)		70
Derivative valuation adjustments and other		1,353			(406	)		460			4,596			983			NM			38			947			497			91

Total risk management		236			190			(372	)		22			23			24			NM			426			(1,214	)		NM

Total net mortgage servicing revenue		913			878			254			604			556			4			64			1,791			(192	)		NM

Mortgage fees and related income	$	2,265		$	2,008		$	723		$	1,380		$	1,100			13			106		$	4,273		$	611			NM

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

Page 17

JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

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


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
MORTGAGE PRODUCTION AND SERVICING (continued)
SELECTED BALANCE SHEET DATA
End-of-period loans:
Prime mortgage, including option ARMs (a)	$	17,454		$	17,268		$	16,891		$	14,800		$	14,260			1	%		22	%	$	17,454		$	14,260			22	%
Loans held-for-sale and loans at fair value (b)		14,254			12,496			12,694			13,153			13,558			14			5			14,254			13,558			5
Average loans:
Prime mortgage, including option ARMs (a)		17,478			17,238			15,733			14,451			14,083			1			24			17,358			14,060			23
Loans held-for-sale and loans at fair value (b)		17,694			15,621			16,680			16,608			14,613			13			21			16,658			16,058			4
Average assets		60,534			58,862			60,473			59,677			58,072			3			4			59,698			59,704			—
Repurchase liability (ending)		2,997			3,213			3,213			3,213			3,213			(7	)		(7	)		2,997			3,213			(7	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries):
Prime mortgage, including option ARMs		1			—			1			2			(2	)		NM			NM			1			2			(50	)
Net charge-off/(recovery) rate:
Prime mortgage, including option ARMs		0.02	%		—	%		0.03	%		0.06	%		(0.06	)%								0.01	%		0.03	%
30+ day delinquency rate (c)		3.00			3.01			3.15			3.35			3.30									3.00			3.30
Nonperforming assets (d)	$	708		$	708		$	716		$	691		$	662			—			7		$	708		$	662			7

BUSINESS METRICS (in billions)
Origination volume by channel
Retail		26.1			23.4			23.1			22.4			20.7			12			26			49.5			41.7			19
Wholesale (e)		0.2			—			0.1			0.1			0.1			NM			100			0.2			0.3			(33	)
Correspondent (e)		16.5			14.2			14.9			13.4			10.3			16			60			30.7			23.8			29
CNT (negotiated transactions)		1.1			0.8			0.5			0.9			2.9			38			(62	)		1.9			4.4			(57	)

Total origination volume		43.9			38.4			38.6			36.8			34.0			14			29			82.3			70.2			17


Application volume by channel
Retail		43.1			40.0			34.6			37.7			33.6			8			28			83.1			64.9			28
Wholesale (e)		0.1			0.2			0.2			0.2			0.3			(50	)		(67	)		0.3			0.6			(50	)
Correspondent (e)		23.7			19.7			17.8			20.2			14.9			20			59			43.4			28.5			52

Total application volume		66.9			59.9			52.6			58.1			48.8			12			37			126.8			94.0			35


Third-party mortgage loans serviced (ending)		860.0			884.2			902.2			924.5			940.8			(3	)		(9	)		860.0			940.8			(9	)
Third-party mortgage loans serviced (average)		866.7			892.6			913.2			931.4			947.0			(3	)		(8	)		879.6			952.9			(8	)
MSR net carrying value (ending)		7.1			8.0			7.2			7.8			12.2			(11	)		(42	)		7.1			12.2			(42	)
Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending)		0.83	%		0.90	%		0.80	%		0.84	%		1.30	%								0.83	%		1.30	%
Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average)		0.47			0.47			0.45			0.44			0.43									0.47			0.44
MSR revenue multiple (f)		1.77	x		1.91	x		1.78	x		1.91	x		3.02	x								1.77	x		2.95	x

(a)	Predominantly represents prime loans repurchased from Government National Mortgage Association (“Ginnie Mae”) pools, which are insured by U.S. government agencies.

(b)	Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets.

(c)

At June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, excluded mortgage loans insured by U.S. government agencies of $13.0 billion, $12.7 billion, $12.6 billion, $10.5 billion and $10.1 billion, respectively, that are 30 or more days past due. These amounts were excluded as reimbursement of insured amounts is proceeding normally.

(d)

(e)	Includes rural housing loans sourced through brokers and correspondents, which are underwritten and closed with pre-funding loan approval from the U.S. Department of Agriculture Rural Development, which acts as the guarantor in the transaction.

(f)	Represents the ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending) divided by the ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average).

Page 18

JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
REAL ESTATE PORTFOLIOS
Noninterest revenue	$	13		$	8		$	(13	)	$	23		$	20			63	%		(35	)%	$	21		$	28			(25	)%
Net interest income		1,027			1,073			1,073			1,128			1,197			(4	)		(14	)		2,100			2,353			(11	)

Total net revenue		1,040			1,081			1,060			1,151			1,217			(4	)		(15	)		2,121			2,381			(11	)
Provision for credit losses		(554	)		(192	)		646			899			954			(189	)		NM			(746	)		2,030			NM
Noninterest expense		412			419			432			363			371			(2	)		11			831			726			14

Income/(loss) before income tax expense/(benefit)		1,182			854			(18	)		(111	)		(108	)		38			NM			2,036			(375	)		NM

Net income/(loss)	$	717		$	518		$	(11	)	$	(67	)	$	(66	)		38			NM		$	1,235		$	(228	)		NM


Overhead ratio		40	%		39	%		41	%		32	%		30	%								39	%		30	%

BUSINESS METRICS
LOANS EXCLUDING PCI LOANS
End-of-period loans owned:
Home equity	$	72,833		$	75,207		$	77,800		$	80,278		$	82,751			(3	)		(12	)	$	72,833		$	82,751			(12	)
Prime mortgage, including option ARMs		42,037			43,152			44,284			45,439			46,994			(3	)		(11	)		42,037			46,994			(11	)
Subprime mortgage		8,945			9,289			9,664			10,045			10,441			(4	)		(14	)		8,945			10,441			(14	)
Other		675			692			718			741			767			(2	)		(12	)		675			767			(12	)

Total end-of-period loans owned	$	124,490		$	128,340		$	132,466		$	136,503		$	140,953			(3	)		(12	)	$	124,490		$	140,953			(12	)
Average loans owned:
Home equity	$	74,069		$	76,600		$	79,106		$	81,568		$	84,065			(3	)		(12	)	$	75,334		$	85,478			(12	)
Prime mortgage, including option ARMs		42,543			43,701			44,886			46,165			47,615			(3	)		(11	)		43,122			48,439			(11	)
Subprime mortgage		9,123			9,485			9,880			10,268			10,667			(4	)		(14	)		9,304			10,875			(14	)
Other		684			707			729			753			785			(3	)		(13	)		696			807			(14	)

Total average loans owned	$	126,419		$	130,493		$	134,601		$	138,754		$	143,132			(3	)		(12	)	$	128,456		$	145,599			(12	)
PCI LOANS
End-of-period loans owned:
Home equity	$	21,867		$	22,305		$	22,697		$	23,105		$	23,535			(2	)		(7	)	$	21,867		$	23,535			(7	)
Prime mortgage		14,395			14,781			15,180			15,626			16,200			(3	)		(11	)		14,395			16,200			(11	)
Subprime mortgage		4,784			4,870			4,976			5,072			5,187			(2	)		(8	)		4,784			5,187			(8	)
Option ARMs		21,565			22,105			22,693			23,325			24,072			(2	)		(10	)		21,565			24,072			(10	)

Total end-of-period loans owned	$	62,611		$	64,061		$	65,546		$	67,128		$	68,994			(2	)		(9	)	$	62,611		$	68,994			(9	)
Average loans owned:
Home equity	$	22,076		$	22,488		$	22,872		$	23,301		$	23,727			(2	)		(7	)	$	22,282		$	23,947			(7	)
Prime mortgage		14,590			14,975			15,405			15,909			16,456			(3	)		(11	)		14,783			16,714			(12	)
Subprime mortgage		4,824			4,914			5,024			5,128			5,231			(2	)		(8	)		4,869			5,266			(8	)
Option ARMs		21,823			22,395			23,009			23,666			24,420			(3	)		(11	)		22,109			24,765			(11	)

Total average loans owned	$	63,313		$	64,772		$	66,310		$	68,004		$	69,834			(2	)		(9	)	$	64,043		$	70,692			(9	)
TOTAL REAL ESTATE PORTFOLIOS
End-of-period loans owned:
Home equity	$	94,700		$	97,512		$	100,497		$	103,383		$	106,286			(3	)		(11	)	$	94,700		$	106,286			(11	)
Prime mortgage, including option ARMs		77,997			80,038			82,157			84,390			87,266			(3	)		(11	)		77,997			87,266			(11	)
Subprime mortgage		13,729			14,159			14,640			15,117			15,628			(3	)		(12	)		13,729			15,628			(12	)
Other		675			692			718			741			767			(2	)		(12	)		675			767			(12	)

Total end-of-period loans owned	$	187,101		$	192,401		$	198,012		$	203,631		$	209,947			(3	)		(11	)	$	187,101		$	209,947			(11	)
Average loans owned:
Home equity	$	96,145		$	99,088		$	101,978		$	104,869		$	107,792			(3	)		(11	)	$	97,616		$	109,425			(11	)
Prime mortgage, including option ARMs		78,956			81,071			83,300			85,740			88,491			(3	)		(11	)		80,014			89,918			(11	)
Subprime mortgage		13,947			14,399			14,904			15,396			15,898			(3	)		(12	)		14,173			16,141			(12	)
Other		684			707			729			753			785			(3	)		(13	)		696			807			(14	)

Total average loans owned	$	189,732		$	195,265		$	200,911		$	206,758		$	212,966			(3	)		(11	)	$	192,499		$	216,291			(11	)
Average assets		177,698			182,254			187,651			193,692			200,116			(2	)		(11	)		179,976			203,626			(12	)
Home equity origination volume		360			312			277			294			307			15			17			672			556			21

Page 19

JPMORGAN CHASE & CO.

RETAIL FINANCIAL SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
REAL ESTATE PORTFOLIOS (continued)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs excluding PCI loans
Home equity	$	466		$	542		$	579		$	581		$	592			(14	) %		(21	) %	$	1,008		$	1,312			(23	) %
Prime mortgage, including option ARMs		114			131			151			172			198			(13	)		(42	)		245			359			(32	)
Subprime mortgage		112			130			143			141			156			(14	)		(28	)		242			342			(29	)
Other		4			5			3			5			8			(20	)		(50	)		9			17			(47	)

Total net charge-offs	$	696		$	808		$	876		$	899		$	954			(14	)		(27	)	$	1,504		$	2,030			(26	)
Net charge-off rate excluding PCI loans
Home equity		2.53	%		2.85	%		2.90	%		2.82	%		2.83	%								2.69	%		3.09	%
Prime mortgage, including option ARMs		1.08			1.21			1.33			1.48			1.67									1.14			1.50
Subprime mortgage		4.94			5.51			5.74			5.43			5.85									5.23			6.33
Other		2.35			2.84			1.63			2.83			4.01									2.60			4.29
Total net charge-off rate excluding PCI loans		2.21			2.49			2.58			2.57			2.67									2.35			2.81
Net charge-off rate — reported
Home equity		1.95	%		2.20	%		2.25	%		2.20	%		2.20	%								2.08	%		2.42	%
Prime mortgage, including option ARMs		0.58			0.65			0.72			0.80			0.90									0.62			0.81
Subprime mortgage		3.23			3.63			3.81			3.63			3.94									3.43			4.26
Other		2.35			2.84			1.63			2.83			4.01									2.60			4.29
Total net charge-off rate — reported		1.48			1.66			1.73			1.72			1.80									1.57			1.89

30+ day delinquency rate excluding PCI loans (a)		5.16	%		5.32	%		5.69	%		5.80	%		5.98	%								5.16			5.98	%
Allowance for loan losses	$	12,179		$	13,429		$	14,429		$	14,659		$	14,659			(9	)		(17	)	$	12,179		$	14,659			(17	)
Nonperforming assets (b)(c)		7,340			7,738			6,638			7,112			7,729			(5	)		(5	)		7,340			7,729			(5	)
Allowance for loan losses to ending loans retained		6.51	%		6.98	%		7.29	%		7.20	%		6.98	%								6.51	%		6.98	%
Allowance for loan losses to ending loans retained excluding PCI loans		5.20			6.01			6.58			7.12			6.90									5.20			6.90

(a)	The delinquency rate for PCI loans was 21.38%, 21.72%, 23.30%, 24.44% and 26.20% at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively.

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

(c)	Based on regulatory guidance issued in the first quarter of 2012, includes performing junior liens that are subordinate to senior liens that are 90 days or more past due. For further information, see footnote (d) on page 15.

Page 20

JPMORGAN CHASE & CO.

CARD SERVICES & AUTO

FINANCIAL HIGHLIGHTS

(in millions, except ratio data and headcount)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Credit card income	$	1,015		$	948		$	1,053		$	1,053		$	1,123			7	%		(10	) %	$	1,963		$	2,021			(3	) %
All other income		231			303			232			201			183			(24	)		26			534			332			61

Noninterest revenue		1,246			1,251			1,285			1,254			1,306			—			(5	)		2,497			2,353			6
Net interest income		3,279			3,463			3,529			3,521			3,455			(5	)		(5	)		6,742			7,199			(6	)

TOTAL NET REVENUE		4,525			4,714			4,814			4,775			4,761			(4	)		(5	)		9,239			9,552			(3	)

Provision for credit losses		734			738			1,060			1,264			944			(1	)		(22	)		1,472			1,297			13

NONINTEREST EXPENSE
Compensation expense		490			486			460			459			448			1			9			976			907			8
Noncompensation expense		1,512			1,447			1,470			1,560			1,436			4			5			2,959			2,788			6
Amortization of intangibles		94			96			95			96			104			(2	)		(10	)		190			210			(10	)

TOTAL NONINTEREST EXPENSE		2,096			2,029			2,025			2,115			1,988			3			5			4,125			3,905			6


Income before income tax expense		1,695			1,947			1,729			1,396			1,829			(13	)		(7	)		3,642			4,350			(16	)
Income tax expense		665			764			678			547			719			(13	)		(8	)		1,429			1,706			(16	)

NET INCOME	$	1,030		$	1,183		$	1,051		$	849		$	1,110			(13	)		(7	)	$	2,213		$	2,644			(16	)


FINANCIAL RATIOS
ROE		25	%		29	%		26	%		21	%		28	%								27	%		33	%
Overhead ratio		46			43			42			44			42									45			41

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	198,805		$	199,579		$	208,467		$	199,473		$	197,915			—			—		$	198,805		$	197,915			—
Loans:
Credit Card		124,705			125,331			132,277			127,135			125,523			—			(1	)		124,705			125,523			(1	)
Auto		48,468			48,245			47,426			46,659			46,796			—			4			48,468			46,796			4
Student		12,232			13,162			13,425			13,751			14,003			(7	)		(13	)		12,232			14,003			(13	)

Total loans		185,405			186,738			193,128			187,545			186,322			(1	)		—			185,405			186,322			—
Equity		16,500			16,500			16,000			16,000			16,000			—			3			16,500			16,000			3

SELECTED BALANCE SHEET DATA (average)
Total assets	$	197,301		$	199,449		$	202,226		$	199,974		$	198,044			(1	)		—		$	198,375		$	201,225			(1	)
Loans:
Credit Card		125,195			127,616			128,619			126,536			125,038			(2	)		—			126,405			128,767			(2	)
Auto		48,273			47,704			46,947			46,549			46,966			1			3			47,989			47,326			1
Student		12,944			13,348			13,543			13,865			14,135			(3	)		(8	)		13,146			14,272			(8	)

Total loans		186,412			188,668			189,109			186,950			186,139			(1	)		—			187,540			190,365			(1	)
Equity		16,500			16,500			16,000			16,000			16,000			—			3			16,500			16,000			3

Headcount		27,563			27,862			27,585			27,554			26,874			(1	)		3			27,563			26,874			3

Page 21

JPMORGAN CHASE & CO.

CARD SERVICES & AUTO

FINANCIAL HIGHLIGHTS, CONTINUED

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


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs:
Credit Card	$	1,345		$	1,386		$	1,390		$	1,499		$	1,810			(3	)%		(26	)%	$	2,731		$	4,036			(32	)%
Auto		21			33			44			42			19			(36	)		11			54			66			(18	)
Student		119			69			126			93			135			72			(12	)		188			215			(13	)

Total net charge-offs		1,485			1,488			1,560			1,634			1,964			—			(24	)		2,973			4,317			(31	)
Net charge-off rate:
Credit Card (a)		4.35	%		4.40	%		4.29	%		4.70	%		5.82	%								4.37	%		6.40	%
Auto		0.17			0.28			0.37			0.36			0.16									0.23			0.28
Student		3.70			2.08			3.69			2.66			3.83									2.88			3.04
Total net charge-off rate		3.22			3.19			3.27			3.47			4.24									3.20			4.61

Delinquency rates
30+ day delinquency rate:
Credit Card (b)		2.14			2.56			2.81			2.90			2.98									2.14			2.98
Auto		0.90			0.79			1.13			1.01			0.98									0.90			0.98
Student (c)		1.95			2.06			1.78			1.93			1.70									1.95			1.70
Total 30+ day delinquency rate		1.80			2.07			2.32			2.36			2.38									1.80			2.38
90+ day delinquency rate — Credit Card (b)		1.04			1.37			1.44			1.43			1.55									1.04			1.55

Nonperforming assets (d)	$	219		$	242		$	228		$	232		$	233			(10	)		(6	)	$	219		$	233			(6	)
Allowance for loan losses:
Credit Card		5,499			6,251			6,999			7,528			8,042			(12	)		(32	)		5,499			8,042			(32	)
Auto and Student		1,009			1,010			1,010			1,009			879			—			15			1,009			879			15

Total allowance for loan losses		6,508			7,261			8,009			8,537			8,921			(10	)		(27	)		6,508			8,921			(27	)
Allowance for loan losses to period-end loans:
Credit Card (b)		4.41	%		5.02	%		5.30	%		5.93	%		6.41	%								4.41	%		6.41	%
Auto and Student		1.66			1.64			1.66			1.67			1.45									1.66			1.45
Total allowance for loan losses to period-end loans		3.51			3.91			4.15			4.55			4.79									3.51			4.79

BUSINESS METRICS
Credit Card, excluding Commercial Card
Sales volume (in billions)	$	96.0		$	86.9		$	93.4		$	87.3		$	85.5			10			12		$	182.9		$	163.0			12
New accounts opened		1.6			1.7			2.2			2.0			2.0			(6	)		(20	)		3.3			4.6			(28	)
Open accounts		63.7			64.2			65.2			64.3			65.4			(1	)		(3	)		63.7			65.4			(3	)

Merchant Services
Bank card volume (in billions)	$	160.2		$	152.8		$	152.6		$	138.1		$	137.3			5			17		$	313.0		$	263.0			19
Total transactions (in billions)		7.1			6.8			6.8			6.1			5.9			4			20			13.9			11.5			21

Auto and Student
Origination volume (in billions)
Auto	$	5.8		$	5.8		$	4.9		$	5.9		$	5.4			—			7		$	11.6		$	10.2			14
Student		—			0.1			0.1			0.1			—			NM			—			0.1			0.1			—

(a)

Average credit card loans include loans held-for-sale of $782 million, $821 million, $97 million, $1 million and $276 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $801 million and $1.6 billion for the six months ended June 30, 2012 and 2011, respectively. These amounts are excluded when calculating the net charge-off rate.

(b)

Period-end credit card loans include loans held-for-sale of $112 million, $856 million, $102 million and $94 million at June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, respectively. No allowance for loan losses was recorded for these loans. These amounts are excluded when calculating delinquency rates and the allowance for loan losses to period-end loans.

(c)

Excludes student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $931 million, $1.0 billion, $989 million, $995 million and $968 million at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

(d)

Nonperforming assets exclude student loans insured by U.S. government agencies under the FFELP of $547 million, $586 million, $551 million, $567 million and $558 million at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.

Page 22

JPMORGAN CHASE & CO.

CARD SERVICES & AUTO

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions)


	QUARTERLY TRENDS																SIX MONTHS ENDED JUNE 30,
											2Q12 Change										2012 Change
	2Q12		1Q12		4Q11		3Q11		2Q11		1Q12			2Q11			2012		2011		2011
CARD SERVICES SUPPLEMENTAL INFORMATION
Noninterest revenue	$	953	$	949	$	985	$	957	$	1,016		—	%		(6	) %	$	1,902	$	1,798		6	%
Net interest income		2,755		2,928		2,989		2,984		2,911		(6	)		(5	)		5,683		6,111		(7	)

Total net revenue		3,708		3,877		3,974		3,941		3,927		(4	)		(6	)		7,585		7,909		(4	)
Provision for credit losses		595		636		890		999		810		(6	)		(27	)		1,231		1,036		19
Noninterest expense		1,703		1,636		1,633		1,734		1,622		4			5			3,339		3,177		5

Income before income tax expense		1,410		1,605		1,451		1,208		1,495		(12	)		(6	)		3,015		3,696		(18	)

Net income	$	860	$	979	$	885	$	737	$	911		(12	)		(6	)	$	1,839	$	2,254		(18	)

Page 23

JPMORGAN CHASE & CO.

COMMERCIAL BANKING

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	264		$	276		$	267		$	269		$	281			(4	)%		(6	)%	$	540		$	545			(1	)%
Asset management, administration and commissions		34			36			32			35			34			(6	)		—			70			69			1
All other income (a)		264			245			272			220			283			8			(7	)		509			486			5

Noninterest revenue		562			557			571			524			598			1			(6	)		1,119			1,100			2
Net interest income		1,129			1,100			1,116			1,064			1,029			3			10			2,229			2,043			9

TOTAL NET REVENUE (b)		1,691			1,657			1,687			1,588			1,627			2			4			3,348			3,143			7

Provision for credit losses		(17	)		77			40			67			54			NM			NM			60			101			(41	)

NONINTEREST EXPENSE
Compensation expense		235			246			215			229			219			(4	)		7			481			442			9
Noncompensation expense		349			345			356			337			336			1			4			694			668			4
Amortization of intangibles		7			7			8			7			8			—			(13	)		14			16			(13	)

TOTAL NONINTEREST EXPENSE		591			598			579			573			563			(1	)		5			1,189			1,126			6


Income before income tax expense		1,117			982			1,068			948			1,010			14			11			2,099			1,916			10
Income tax expense		444			391			425			377			403			14			10			835			763			9

NET INCOME	$	673		$	591		$	643		$	571		$	607			14			11		$	1,264		$	1,153			10

Revenue by product:
Lending	$	920		$	892		$	881		$	857		$	880			3			5		$	1,812		$	1,717			6
Treasury services		603			602			600			572			556			—			8			1,205			1,098			10
Investment banking		129			120			120			116			152			8			(15	)		249			262			(5	)
Other		39			43			86			43			39			(9	)		—			82			66			24

Total Commercial Banking revenue	$	1,691		$	1,657		$	1,687		$	1,588		$	1,627			2			4		$	3,348		$	3,143			7


IB revenue, gross (c)	$	384		$	339		$	350		$	320		$	442			13			(13	)	$	723		$	751			(4	)

Revenue by client segment:
Middle Market Banking	$	833		$	825		$	810		$	791		$	789			1			6		$	1,658		$	1,544			7
Commercial Term Lending		291			293			299			297			286			(1	)		2			584			572			2
Corporate Client Banking		343			337			326			306			339			2			1			680			629			8
Real Estate Banking		114			105			115			104			109			9			5			219			197			11
Other		110			97			137			90			104			13			6			207			201			3

Total Commercial Banking revenue	$	1,691		$	1,657		$	1,687		$	1,588		$	1,627			2			4		$	3,348		$	3,143			7

FINANCIAL RATIOS
ROE		28	%		25	%		32	%		28	%		30	%								27	%		29	%
Overhead ratio		35			36			34			36			35									36			36

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

(b)

Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income from municipal bond activity of $99 million, $94 million, $123 million, $90 million and $67 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $193 million and $132 million for the six months ended June 30, 2012 and 2011, respectively.

(c)	Represents the total revenue related to investment banking products sold to CB clients.

Page 24

JPMORGAN CHASE & CO.

COMMERCIAL BANKING

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except headcount and ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	163,698		$	161,741		$	158,040		$	151,095		$	148,662			1	%		10	%	$	163,698		$	148,662			10	%
Loans:
Loans retained		119,946			114,969			111,162			106,834			102,122			4			17			119,946			102,122			17
Loans held-for-sale and loans at fair value		547			878			840			584			557			(38	)		(2	)		547			557			(2	)

Total loans		120,493			115,847			112,002			107,418			102,679			4			17			120,493			102,679			17
Equity		9,500			9,500			8,000			8,000			8,000			—			19			9,500			8,000			19

Period-end loans by client segment:
Middle Market Banking	$	47,638		$	46,040		$	44,437		$	42,365		$	40,530			3			18		$	47,638		$	40,530			18
Commercial Term Lending		40,972			39,314			38,583			38,539			38,012			4			8			40,972			38,012			8
Corporate Client Banking		18,839			17,670			16,747			15,100			13,097			7			44			18,839			13,097			44
Real Estate Banking		8,819			8,763			8,211			7,470			7,409			1			19			8,819			7,409			19
Other		4,225			4,060			4,024			3,944			3,631			4			16			4,225			3,631			16

Total Commercial Banking loans	$	120,493		$	115,847		$	112,002		$	107,418		$	102,679			4			17		$	120,493		$	102,679			17


SELECTED BALANCE SHEET DATA (average)
Total assets	$	163,423		$	161,074		$	155,611		$	145,195		$	143,560			1			14		$	162,249		$	141,989			14
Loans:
Loans retained		117,835			112,879			109,328			104,705			100,857			4			17			115,357			99,849			16
Loans held-for-sale and loans at fair value		599			881			580			632			1,015			(32	)		(41	)		740			886			(16	)

Total loans		118,434			113,760			109,908			105,337			101,872			4			16			116,097			100,735			15
Liability balances		193,280			200,178			199,138			180,275			162,769			(3	)		19			196,729			159,503			23
Equity		9,500			9,500			8,000			8,000			8,000			—			19			9,500			8,000			19

Average loans by client segment:
Middle Market Banking	$	46,880		$	45,047		$	43,215		$	41,540		$	40,012			4			17		$	45,964		$	39,114			18
Commercial Term Lending		40,060			38,848			38,679			38,198			37,729			3			6			39,454			37,769			4
Corporate Client Banking		18,588			17,514			16,116			14,373			13,062			6			42			18,051			12,720			42
Real Estate Banking		8,808			8,341			7,936			7,465			7,467			6			18			8,575			7,537			14
Other		4,098			4,010			3,962			3,761			3,602			2			14			4,053			3,595			13

Total Commercial Banking loans	$	118,434		$	113,760		$	109,908		$	105,337		$	101,872			4			16		$	116,097		$	100,735			15


Headcount		5,862			5,612			5,520			5,417			5,140			4			14			5,862			5,140			14

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(9	)	$	12		$	99		$	17		$	40			NM			NM		$	3		$	71			(96	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)		881			972			1,036			1,417			1,613			(9	)		(45	)		881			1,613			(45	)
Nonaccrual loans held-for-sale and loans at fair value		36			32			17			26			21			13			71			36			21			71

Total nonaccrual loans		917			1,004			1,053			1,443			1,634			(9	)		(44	)		917			1,634			(44	)
Assets acquired in loan satisfactions		36			60			85			168			197			(40	)		(82	)		36			197			(82	)

Total nonperforming assets		953			1,064			1,138			1,611			1,831			(10	)		(48	)		953			1,831			(48	)
Allowance for credit losses:
Allowance for loan losses		2,638			2,662			2,603			2,671			2,614			(1	)		1			2,638			2,614			1
Allowance for lending-related commitments		209			194			189			181			187			8			12			209			187			12

Total allowance for credit losses		2,847			2,856			2,792			2,852			2,801			—			2			2,847			2,801			2

Net charge-off/(recovery) rate (b)		(0.03	) %		0.04	%		0.36	%		0.06	%		0.16	%								0.01	%		0.14	%
Allowance for loan losses to period-end loans retained		2.20			2.32			2.34			2.50			2.56									2.20			2.56
Allowance for loan losses to nonaccrual loans retained (a)		299			274			251			188			162									299			162
Nonaccrual loans to total period-end loans		0.76			0.87			0.94			1.34			1.59									0.76			1.59

(a)	Allowance for loan losses of $143 million, $163 million, $176 million, $257 million and $289 million was held against nonaccrual loans retained at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively.

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

Page 25

JPMORGAN CHASE & CO.

TREASURY & SECURITIES SERVICES

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	287		$	286		$	313		$	310		$	314			—	%		(9	)%	$	573		$	617			(7	)%
Asset management, administration and commissions		708			654			671			656			726			8			(2	)		1,362			1,421			(4	)
All other income		156			127			133			141			143			23			9			283			282			—

Noninterest revenue		1,151			1,067			1,117			1,107			1,183			8			(3	)		2,218			2,320			(4	)
Net interest income		1,001			947			905			801			749			6			34			1,948			1,452			34

TOTAL NET REVENUE		2,152			2,014			2,022			1,908			1,932			7			11			4,166			3,772			10

Provision for credit losses		8			2			19			(20	)		(2	)		300			NM			10			2			400
Credit allocation income/(expense) (a)		68			3			(60	)		9			32			NM			113			71			59			20

NONINTEREST EXPENSE
Compensation expense		717			732			672			718			719			(2	)		—			1,449			1,434			1
Noncompensation expense		760			728			877			728			719			4			6			1,488			1,366			9
Amortization of intangibles		14			13			14			24			15			8			(7	)		27			30			(10	)

TOTAL NONINTEREST EXPENSE		1,491			1,473			1,563			1,470			1,453			1			3			2,964			2,830			5


Income before income tax expense		721			542			380			467			513			33			41			1,263			999			26
Income tax expense		258			191			130			162			180			35			43			449			350			28

NET INCOME	$	463		$	351		$	250		$	305		$	333			32			39		$	814		$	649			25


FINANCIAL RATIOS
ROE		25	%		19	%		14	%		17	%		19	%								22	%		19	%
Pretax margin ratio		34			27			19			24			27									30			26
Overhead ratio		69			73			77			77			75									71			75
Pre-provision profit ratio		31			27			23			23			25									29			25

REVENUE BY BUSINESS
Worldwide Securities Services (“WSS”):
Investor Services	$	835		$	783		$	752		$	740		$	782			7			7		$	1,618		$	1,527			6
Clearance, Collateral Mgmt & Depositary Receipts		243			179			219			199			220			36			10			422			424			—

Total WSS Revenue		1,078			962			971			939			1,002			12			8			2,040			1,951			5
Treasury Services (“TS”):
Transaction Services	$	917		$	893		$	874		$	816		$	785			3			17		$	1,810		$	1,550			17
Trade Finance		157			159			177			153			145			(1	)		8			316			271			17

Total TS Revenue		1,074			1,052			1,051			969			930			2			15			2,126			1,821			17

(a)

IB manages traditional credit exposures related to GCB on behalf of IB and TSS, and IB and TSS share the economics related to the Firm’s GCB clients. Included within this allocation are net revenue, provision for credit losses and expenses. IB recognizes this credit allocation as a component of all other income.

Page 26

JPMORGAN CHASE & CO.

TREASURY & SECURITIES SERVICES

FINANCIAL HIGHLIGHTS, CONTINUED

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


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	67,758		$	66,732		$	68,665		$	62,364		$	55,950			2	%		21	%	$	67,758		$	55,950			21	%
Loans (a)		42,558			41,173			42,992			36,389			34,034			3			25			42,558			34,034			25
Equity		7,500			7,500			7,000			7,000			7,000			—			7			7,500			7,000			7

SELECTED BALANCE SHEET DATA (average)
Total assets	$	66,398		$	64,559		$	63,686		$	60,141		$	52,688			3			26		$	65,479		$	50,294			30
Loans (a)		42,213			40,538			39,289			35,303			33,069			4			28			41,376			31,190			33
Liability balances		348,102			356,964			364,196			341,107			302,858			(2	)		15			352,533			284,392			24
Equity		7,500			7,500			7,000			7,000			7,000			—			7			7,500			7,000			7

Headcount		27,462			27,765			27,825			28,157			28,230			(1	)		(3	)		27,462			28,230			(3	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	—		$	—		$	—		$	—		$	—			—			—		$	—		$	—			—
Nonaccrual loans		4			5			4			3			3			(20	)		33			4			3			33
Allowance for credit losses:
Allowance for loan losses		79			69			65			49			74			14			7			79			74			7
Allowance for lending-related commitments		9			14			49			46			41			(36	)		(78	)		9			41			(78	)

Total allowance for credit losses		88			83			114			95			115			6			(23	)		88			115			(23	)

Net charge-off rate		—	%		—	%		—	%		—	%		—	%								—	%		—	%
Allowance for loan losses to period-end loans		0.19			0.17			0.15			0.14			0.22									0.19			0.22
Allowance for loan losses to nonaccrual loans		NM			NM			NM			NM			NM									NM			NM
Nonaccrual loans to period-end loans		0.01			0.01			0.01			0.01			0.01									0.01			0.01

WSS BUSINESS METRICS
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
Fixed Income	$	11,302		$	11,332		$	10,926		$	10,871		$	10,686			—			6		$	11,302		$	10,686			6
Equity		5,025			5,365			4,878			4,401			5,267			(6	)		(5	)		5,025			5,267			(5	)
Other (b)		1,338			1,171			1,066			978			992			14			35			1,338			992			35

Total AUC	$	17,665		$	17,868		$	16,870		$	16,250		$	16,945			(1	)		4		$	17,665		$	16,945			4

Liability balances (average)		121,755			125,088			122,102			107,105			90,204			(3	)		35			123,421			86,485			43

TS BUSINESS METRICS
Liability balances (average)		226,347			231,876			242,094			234,002			212,654			(2	)		6			229,112			197,907			16
Trade finance loans (period-end)		35,291			35,692			36,696			30,104			27,473			(1	)		28			35,291			27,473			28

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

(b)	Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and nonsecurities contracts.

Page 27


JPMORGAN CHASE & CO.
TREASURY & SECURITIES SERVICES
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)


	QUARTERLY TRENDS																SIX MONTHS ENDED JUNE 30,
											2Q12 Change										2012 Change
	2Q12		1Q12		4Q11		3Q11		2Q11		1Q12			2Q11			2012		2011		2011
INTERNATIONAL METRICS
Net revenue (a)
Europe/Middle East/Africa	$	777	$	668	$	689	$	648	$	691		16	%		12	%	$	1,445	$	1,321		9	%
Asia/Pacific		345		353		339		321		299		(2	)		15			698		575		21
Latin America/Caribbean		72		82		112		61		80		(12	)		(10	)		154		156		(1	)
North America		958		911		882		878		862		5			11			1,869		1,720		9

Total net revenue	$	2,152	$	2,014	$	2,022	$	1,908	$	1,932		7			11		$	4,166	$	3,772		10


Average liability balances (a)
Europe/Middle East/Africa	$	127,173	$	127,794	$	130,862	$	129,608	$	125,911		—			1		$	127,484	$	117,501		8
Asia/Pacific		50,331		50,197		49,407		42,987		42,472		—			19			50,264		40,807		23
Latin America/Caribbean		10,453		11,852		11,563		12,722		13,506		(12	)		(23	)		11,153		13,115		(15	)
North America		160,145		167,121		172,364		155,790		120,969		(4	)		32			163,632		112,969		45

Total average liability balances	$	348,102	$	356,964	$	364,196	$	341,107	$	302,858		(2	)		15		$	352,533	$	284,392		24


Trade finance loans (period-end) (a)
Europe/Middle East/Africa	$	9,577	$	9,972	$	9,726	$	6,853	$	6,184		(4	)		55		$	9,577	$	6,184		55
Asia/Pacific		18,209		18,140		19,280		16,918		15,736		—			16			18,209		15,736		16
Latin America/Caribbean		5,754		6,040		6,254		5,228		4,553		(5	)		26			5,754		4,553		26
North America		1,751		1,540		1,436		1,105		1,000		14			75			1,751		1,000		75

Total trade finance loans	$	35,291	$	35,692	$	36,696	$	30,104	$	27,473		(1	)		28		$	35,291	$	27,473		28


AUC (period-end) (in billions) (a)
North America	$	10,048	$	9,998	$	9,735	$	9,611	$	9,976		1			1		$	10,048	$	9,976		1
All other regions		7,617		7,870		7,135		6,639		6,969		(3	)		9			7,617		6,969		9

Total AUC	$	17,665	$	17,868	$	16,870	$	16,250	$	16,945		(1	)		4		$	17,665	$	16,945		4


TSS FIRMWIDE DISCLOSURES (b)
TS revenue - reported	$	1,074	$	1,052	$	1,051	$	969	$	930		2			15		$	2,126	$	1,821		17
TS revenue reported in CB		603		602		600		572		556		—			8			1,205		1,098		10
TS revenue reported in other lines of business		68		69		69		68		65		(1	)		5			137		128		7

TS firmwide revenue (c)		1,745		1,723		1,720		1,609		1,551		1			13			3,468		3,047		14
Worldwide Securities Services revenue		1,078		962		971		939		1,002		12			8			2,040		1,951		5

TSS firmwide revenue (c)	$	2,823	$	2,685	$	2,691	$	2,548	$	2,553		5			11		$	5,508	$	4,998		10


TSS total foreign exchange (“FX”) revenue (c)		147		137		154		179		165		7			(11	)		284		325		(13	)

TS firmwide liability balances (average) (d)	$	419,806	$	432,299	$	441,572	$	414,485	$	375,432		(3	)		12		$	426,053	$	357,436		19
TSS firmwide liability balances (average) (d)		541,382		557,142		563,334		521,383		465,627		(3	)		16			549,262		443,894		24

Number of:
U.S.$ ACH transactions originated		1,020		1,019		983		972		959		—			6			2,039		1,951		5
Total U.S.$ clearing volume (in thousands)		33,980		32,696		33,055		33,117		32,274		4			5			66,676		63,245		5
International electronic funds transfer volume (in thousands) (e)		76,343		75,087		63,669		62,718		63,208		2			21			151,430		124,150		22
Wholesale check volume		602		589		592		601		608		2			(1	)		1,191		1,140		4
Wholesale cards issued (in thousands) (f)		25,346		24,693		25,187		24,288		23,746		3			7			25,346		23,746		7

(a)	Total net revenue, average liability balances, trade finance loans and AUC are based on the domicile of the client. In the second quarter of 2012, the methodology for allocating the data by region was refined. Prior periods were not revised due to immateriality.

(b)

TSS firmwide metrics include revenue recorded in CB, Consumer & Business Banking and Asset Management (“AM”) lines of business and net TSS FX revenue (it excludes TSS FX revenue recorded in the IB). In order to capture the firmwide impact of Treasury Services (“TS”) and TSS products and revenue, management reviews firmwide metrics in assessing financial performance of TSS. Firmwide metrics are necessary in order to understand the aggregate TSS business.

(c)

IB executes FX transactions on behalf of TSS customers under revenue sharing agreements. FX revenue generated by TSS customers is recorded in TSS and IB. TSS total FX revenue reported above is the gross (pre-split) FX revenue generated by TSS customers. However, TSS firmwide revenue includes only the FX revenue booked in TSS, i.e., it does not include the portion of TSS FX revenue recorded in IB.

(d)	Firmwide liability balances include liability balances recorded in CB.

(e)	International electronic funds transfer includes non-U.S. dollar Automated Clearing House (“ACH”) and clearing volume.

(f)	Wholesale cards issued and outstanding include stored value, prepaid and government electronic benefit card products.

Page 28

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	1,701		$	1,621		$	1,606		$	1,617		$	1,818			5	%		(6	)%	$	3,322		$	3,525			(6	)%
All other income		151			266			232			281			321			(43	)		(53	)		417			634			(34	)

Noninterest revenue		1,852			1,887			1,838			1,898			2,139			(2	)		(13	)		3,739			4,159			(10	)
Net interest income		512			483			446			418			398			6			29			995			784			27

TOTAL NET REVENUE		2,364			2,370			2,284			2,316			2,537			—			(7	)		4,734			4,943			(4	)

Provision for credit losses		34			19			24			26			12			79			183			53			17			212

NONINTEREST EXPENSE
Compensation expense		1,024			1,120			1,046			999			1,068			(9	)		(4	)		2,144			2,107			2
Noncompensation expense		655			586			674			775			704			12			(7	)		1,241			1,303			(5	)
Amortization of intangibles		22			23			32			22			22			(4	)		—			45			44			2

TOTAL NONINTEREST EXPENSE		1,701			1,729			1,752			1,796			1,794			(2	)		(5	)		3,430			3,454			(1	)


Income before income tax expense		629			622			508			494			731			1			(14	)		1,251			1,472			(15	)
Income tax expense		238			236			206			109			292			1			(18	)		474			567			(16	)

NET INCOME	$	391		$	386		$	302		$	385		$	439			1			(11	)	$	777		$	905			(14	)


REVENUE BY CLIENT SEGMENT
Private Banking	$	1,341		$	1,279		$	1,212		$	1,298		$	1,289			5			4		$	2,620		$	2,606			1
Institutional		537			557			558			478			694			(4	)		(23	)		1,094			1,237			(12	)
Retail		486			534			514			540			554			(9	)		(12	)		1,020			1,100			(7	)

TOTAL NET REVENUE	$	2,364		$	2,370		$	2,284		$	2,316		$	2,537			—			(7	)	$	4,734		$	4,943			(4	)


FINANCIAL RATIOS
ROE		22	%		22	%		18	%		24	%		27	%								22	%		28	%
Overhead ratio		72			73			77			78			71									72			70
Pretax margin ratio		27			26			22			21			29									26			30

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	98,704		$	96,385		$	86,242		$	81,179		$	78,199			2			26		$	98,704		$	78,199			26
Loans (a)		70,470			64,335			57,573			54,178			51,747			10			36			70,470			51,747			36
Equity		7,000			7,000			6,500			6,500			6,500			—			8			7,000			6,500			8

SELECTED BALANCE SHEET DATA (average)
Total assets	$	96,670		$	89,582		$	82,594		$	78,669		$	74,206			8			30		$	93,126		$	71,577			30
Loans		67,093			59,311			54,691			52,652			48,837			13			37			63,202			46,903			35
Deposits		128,087			127,534			121,493			111,090			97,509			—			31			127,811			96,386			33
Equity		7,000			7,000			6,500			6,500			6,500			—			8			7,000			6,500			8

Headcount		18,042			17,849			18,036			18,084			17,963			1			—			18,042			17,963			—

(a)	Includes $6.7 billion and $4.5 billion of prime mortgage loans reported in the Consumer, excluding credit card loan portfolio at June 30, 2012 and March 31, 2012, respectively.

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JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

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


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
BUSINESS METRICS
Number of:
Client advisors (a)		2,739			2,832			2,883			2,864			2,719			(3	)%		1	%		2,739			2,719			1	%
Retirement Planning Services participants (in thousands)		1,960			1,926			1,798			1,755			1,613			2			22			1,960			1,613			22
% of customer assets in 4 & 5 Star Funds (b)		43	%		42	%		43	%		47	%		50	%								43	%		50	%
% of AUM in 1^stand 2^nd quartiles: (c)
1 year		65			64			48			49			56									65			56
3 years		72			74			72			73			71									72			71
5 years		74			76			78			77			76									74			76

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	28		$	27		$	48		$	—		$	33			4			(15	)	$	55		$	44			25
Nonaccrual loans		256			263			317			311			252			(3	)		2			256			252			2
Allowance for credit losses:
Allowance for loan losses		220			209			209			240			222			5			(1	)		220			222			(1	)
Allowance for lending-related commitments		6			5			10			9			9			20			(33	)		6			9			(33	)

Total allowance for credit losses		226			214			219			249			231			6			(2	)		226			231			(2	)
Net charge-off rate		0.17	%		0.18	%		0.35	%		—	%		0.27	%								0.18	%		0.19	%
Allowance for loan losses to period-end loans		0.31			0.32			0.36			0.44			0.43									0.31			0.43
Allowance for loan losses to nonaccrual loans		86			79			66			77			88									86			88
Nonaccrual loans to period-end loans		0.36			0.41			0.55			0.57			0.49									0.36			0.49

(a)	Effective January 1, 2012, the previously disclosed separate metric for client advisors and JPMorgan Securities brokers were combined into one metric that reflects the number of Private Banking client-facing representatives.

(b)	Derived from Morningstar for the U.S., the U.K., Luxembourg, France, Hong Kong and Taiwan; and Nomura for Japan.

(c)	Quartile ranking sourced from: Lipper for the U.S. and Taiwan; Morningstar for the U.K., Luxembourg, France and Hong Kong; and Nomura for Japan.

Page 30

JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

(in billions)


											Jun 30, 2012 Change
ASSETS UNDER SUPERVISION	Jun 30, 2012		Mar 31, 2012		Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Mar 31, 2012			Jun 30, 2011
Assets by asset class
Liquidity	$	466	$	492	$	515	$	464	$	476		(5	)%		(2	)%
Fixed income		359		355		336		321		319		1			13
Equity and multi-asset		401		417		372		356		430		(4	)		(7	)
Alternatives		121		118		113		113		117		3			3

TOTAL ASSETS UNDER MANAGEMENT		1,347		1,382		1,336		1,254		1,342		(3	)		—
Custody/brokerage/administration/deposits		621		631		585		552		582		(2	)		7

TOTAL ASSETS UNDER SUPERVISION	$	1,968	$	2,013	$	1,921	$	1,806	$	1,924		(2	)		2


Assets by client segment
Private Banking	$	297	$	303	$	291	$	276	$	291		(2	)		2
Institutional		702		732		722		673		708		(4	)		(1	)
Retail		348		347		323		305		343		—			1

TOTAL ASSETS UNDER MANAGEMENT	$	1,347	$	1,382	$	1,336	$	1,254	$	1,342		(3	)		—


Private Banking	$	816	$	830	$	781	$	738	$	776		(2	)		5
Institutional		702		732		723		674		709		(4	)		(1	)
Retail		450		451		417		394		439		—			3

TOTAL ASSETS UNDER SUPERVISION	$	1,968	$	2,013	$	1,921	$	1,806	$	1,924		(2	)		2


Mutual fund assets by asset class
Liquidity	$	408	$	434	$	458	$	409	$	421		(6	)		(3	)
Fixed income		119		116		107		101		105		3			13
Equity and multi-asset		160		167		147		139		176		(4	)		(9	)
Alternatives		7		8		8		8		9		(13	)		(22	)

TOTAL MUTUAL FUND ASSETS	$	694	$	725	$	720	$	657	$	711		(4	)		(2	)

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JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

(in billions)


	QUARTERLY TRENDS															SIX MONTHS ENDED JUNE 30,
	2Q12			1Q12			4Q11			3Q11			2Q11			2012			2011
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance	$	1,382		$	1,336		$	1,254		$	1,342		$	1,330		$	1,336		$	1,298
Net asset flows:
Liquidity		(25	)		(25	)		53			(10	)		(16	)		(50	)		(25	)
Fixed income		5			11			9			3			12			16			28
Equities, multi-asset and alternatives		9			6			(4	)		(1	)		7			15			18
Market/performance/other impacts		(24	)		54			24			(80	)		9			30			23

Ending balance	$	1,347		$	1,382		$	1,336		$	1,254		$	1,342		$	1,347		$	1,342

Assets under supervision rollforward
Beginning balance	$	2,013		$	1,921		$	1,806		$	1,924		$	1,908		$	1,921		$	1,840
Net asset flows		(6	)		8			69			11			12			2			43
Market/performance/other impacts		(39	)		84			46			(129	)		4			45			41

Ending balance	$	1,968		$	2,013		$	1,921		$	1,806		$	1,924		$	1,968		$	1,924

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JPMORGAN CHASE & CO.

ASSET MANAGEMENT

FINANCIAL HIGHLIGHTS, CONTINUED

(in billions, except where otherwise noted)


	QUARTERLY TRENDS																SIX MONTHS ENDED JUNE 30,
											2Q12 Change										2012 Change
INTERNATIONAL METRICS	2Q12		1Q12		4Q11		3Q11		2Q11		1Q12			2Q11			2012		2011		2011
Total net revenue: (in millions) (a)
Europe/Middle East/Africa	$	379	$	405	$	392	$	395	$	478		(6	)%		(21	)%	$	784	$	917		(15	)%
Asia/Pacific		230		236		220		248		257		(3	)		(11	)		466		503		(7	)
Latin America/Caribbean		166		175		224		168		251		(5	)		(34	)		341		416		(18	)
North America		1,589		1,554		1,448		1,505		1,551		2			2			3,143		3,107		1

Total net revenue	$	2,364	$	2,370	$	2,284	$	2,316	$	2,537		—			(7	)	$	4,734	$	4,943		(4	)

Assets under management:
Europe/Middle East/Africa	$	261	$	282	$	278	$	255	$	298		(7	)		(12	)	$	261	$	298		(12	)
Asia/Pacific		103		112		105		104		119		(8	)		(13	)		103		119		(13	)
Latin America/Caribbean		41		41		34		32		37		—			11			41		37		11
North America		942		947		919		863		888		(1	)		6			942		888		6

Total assets under management	$	1,347	$	1,382	$	1,336	$	1,254	$	1,342		(3	)		—		$	1,347	$	1,342		—

Assets under supervision:
Europe/Middle East/Africa	$	315	$	339	$	329	$	306	$	353		(7	)		(11	)	$	315	$	353		(11	)
Asia/Pacific		144		152		139		140		161		(5	)		(11	)		144		161		(11	)
Latin America/Caribbean		101		101		89		87		94		—			7			101		94		7
North America		1,408		1,421		1,364		1,273		1,316		(1	)		7			1,408		1,316		7

Total assets under supervision	$	1,968	$	2,013	$	1,921	$	1,806	$	1,924		(2	)		2		$	1,968	$	1,924		2

(a)	Regional revenue is based on the domicile of the client.

Page 33

JPMORGAN CHASE & CO.

CORPORATE/PRIVATE EQUITY

FINANCIAL HIGHLIGHTS

(in millions, except headcount data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
INCOME STATEMENT
REVENUE
Principal transactions	$	(3,576	)	$	(547	)	$	324		$	(933	)	$	745			NM	%		NM	%	$	(4,123	)	$	2,043			NM	%
Securities gains		1,013			449			54			607			837			126			21			1,462			939			56
All other income		159			1,111	(c)		75			186			265			(86	)		(40	)		1,270			343			270

Noninterest revenue		(2,404	)		1,013			453			(140	)		1,847			NM			NM			(1,391	)		3,325			NM
Net interest income		(205	)		16			245			8			218			NM			NM			(189	)		252			NM

TOTAL NET REVENUE (a)		(2,609	)		1,029			698			(132	)		2,065			NM			NM			(1,580	)		3,577			NM

Provision for credit losses		(11	)		(9	)		(10	)		(7	)		(9	)		(22	)		(22	)		(20	)		(19	)		(5	)

NONINTEREST EXPENSE
Compensation expense		652			823			602			552			614			(21	)		6			1,475			1,271			16
Noncompensation expense (b)		1,317			3,328			1,649			1,995			2,097			(60	)		(37	)		4,645			3,240			43

Subtotal		1,969			4,151			2,251			2,547			2,711			(53	)		(27	)		6,120			4,511			36
Net expense allocated to other businesses		(1,410	)		(1,382	)		(1,321	)		(1,331	)		(1,270	)		(2	)		(11	)		(2,792	)		(2,508	)		(11	)

TOTAL NONINTEREST EXPENSE		559			2,769			930			1,216			1,441			(80	)		(61	)		3,328			2,003			66


Income/(loss) before income tax expense/(benefit)		(3,157	)		(1,731	)		(222	)		(1,341	)		633			(82	)		NM			(4,888	)		1,593			NM
Income tax expense/(benefit)		(1,380	)		(709	)		(445	)		(696	)		131			(95	)		NM			(2,089	)		369			NM

NET INCOME/(LOSS)	$	(1,777	)	$	(1,022	)	$	223		$	(645	)	$	502			(74	)		NM		$	(2,799	)	$	1,224			NM


MEMO:
REVENUE
Private Equity	$	410		$	254		$	(113	)	$	(546	)	$	796			61			(48	)	$	664		$	1,495			(56	)
Treasury and Chief Investment Office (“CIO”)		(3,434	)		(233	)		845			102			1,426			NM			NM			(3,667	)		2,249			NM
Other Corporate		415			1,008			(34	)		312			(157	)		(59	)		NM			1,423			(167	)		NM

TOTAL NET REVENUE	$	(2,609	)	$	1,029		$	698		$	(132	)	$	2,065			NM			NM		$	(1,580	)	$	3,577			NM


NET INCOME/(LOSS)
Private Equity	$	197		$	134		$	(89	)	$	(347	)	$	444			47			(56	)	$	331		$	827			(60	)
Treasury and CIO		(2,078	)		(227	)		417			(94	)		670			NM			NM			(2,305	)		1,026			NM
Other Corporate		104			(929	)		(105	)		(204	)		(612	)		NM			NM			(825	)		(629	)		(31	)

TOTAL NET INCOME/(LOSS)	$	(1,777	)	$	(1,022	)	$	223		$	(645	)	$	502			(74	)		NM		$	(2,799	)	$	1,224			NM

TOTAL ASSETS (period-end)	$	667,206		$	713,326		$	693,153		$	693,597		$	672,655			(6	)		(1	)	$	667,206		$	672,655			(1	)

Headcount		23,020			22,337			22,117			21,844			21,444			3			7			23,020			21,444			7

(a)

Total net revenue included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $118 million, $99 million, $92 million, $73 million and $69 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $217 million and $133 million for the six months ended June 30, 2012 and 2011, respectively.

(b)

Includes litigation expense of $0.3 billion, $2.5 billion, $0.5 billion, $1.0 billion and $1.3 billion for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $2.8 billion and $1.6 billion for the six months ended June 30, 2012 and 2011, respectively.

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

Page 34

JPMORGAN CHASE & CO.

CORPORATE/PRIVATE EQUITY

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions)


	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
															2Q12 Change												2012 Change
	2Q12			1Q12		4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
SUPPLEMENTAL INFORMATION

TREASURY and CHIEF INVESTMENT OFFICE (“CIO”)
Securities gains (a)	$	1,013		$	453	$	(13	)	$	459		$	837			124	%		21	%	$	1,466		$	939			56	%
Investment securities portfolio (average)		359,130			361,601		349,750			324,596			335,543			(1	)		7			360,366			324,492			11
Investment securities portfolio (ending)		348,610			374,588		355,605			330,800			318,237			(7	)		10			348,610			318,237			10
Mortgage loans (average)		11,012			12,636		14,089			13,748			12,731			(13	)		(14	)		11,824			12,078			(2	)
Mortgage loans (ending)		10,332			11,819		13,375			14,226			13,243			(13	)		(22	)		10,332			13,243			(22	)

PRIVATE EQUITY
Private equity gains/(losses)
Direct investments
Realized gains/(losses)	$	(116	)	$	66	$	58		$	394		$	1,219			NM			NM		$	(50	)	$	1,390			NM
Unrealized gains/(losses) (b)		589			179		(122	)		(827	)		(726	)		229			NM			768			(356	)		NM

Total direct investments		473			245		(64	)		(433	)		493			93			(4	)		718			1,034			(31	)
Third-party fund investments		(9	)		83		(85	)		(7	)		323			NM			NM			74			509			(85	)

Total private equity gains/(losses) (c)	$	464		$	328	$	(149	)	$	(440	)	$	816			41			(43	)	$	792		$	1,543			(49	)


Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value	$	863		$	889	$	805		$	709		$	670			(3	)		29
Cost		436			549		573			779			595			(21	)		(27	)
Quoted public value		909			931		896			778			721			(2	)		26
Privately-held direct securities
Carrying value		4,931			4,944		4,597			4,322			5,680			—			(13	)
Cost		6,362			6,819		6,793			6,556			6,891			(7	)		(8	)
Third-party fund investments (d)
Carrying value		2,113			2,131		2,283			2,399			2,481			(1	)		(15	)
Cost		1,952			2,162		2,452			2,454			2,464			(10	)		(21	)

Total private equity portfolio
Carrying value	$	7,907		$	7,964	$	7,685		$	7,430		$	8,831			(1	)		(10	)
Cost		8,750			9,530		9,818			9,789			9,950			(8	)		(12	)

(a)	Reflects repositioning of the Corporate investment securities portfolio.

(b)	Unrealized gains/(losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.

(c)	Included in principal transactions revenue in the Consolidated Statements of Income.

(d)	Unfunded commitments to third-party private equity funds were $524 million, $571 million, $789 million, $853 million and $876 million at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively.

Page 35

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION

(in millions)


											Jun 30, 2012 Change
	Jun 30, 2012		Mar 31, 2012		Dec 31, 2011		Sep 30, 2011		Jun 30, 2011		Mar 31, 2012			Jun 30, 2011
CREDIT EXPOSURE
Wholesale (a)
Loans retained	$	298,888	$	283,653	$	278,395	$	255,799	$	244,224		5	%		22	%
Loans held-for-sale and loans at fair value		3,932		7,213		4,621		3,684		4,599		(45	)		(15	)

Total wholesale loans		302,820		290,866		283,016		259,483		248,823		4			22

Consumer, excluding credit card (b)
Loans retained, excluding PCI loans
Home equity		72,833		75,207		77,800		80,278		82,751		(3	)		(12	)
Prime mortgage, including option ARMs		76,064		76,292		76,196		74,230		74,276		—			2
Subprime mortgage		8,945		9,289		9,664		10,045		10,441		(4	)		(14	)
Auto		48,468		48,245		47,426		46,659		46,796		—			4
Business banking		18,218		17,822		17,652		17,272		17,141		2			6
Student and other		12,907		13,854		14,143		14,492		14,770		(7	)		(13	)

Total loans retained, excluding PCI loans		237,435		240,709		242,881		242,976		246,175		(1	)		(4	)
Loans — PCI
Home equity		21,867		22,305		22,697		23,105		23,535		(2	)		(7	)
Prime mortgage		14,395		14,781		15,180		15,626		16,200		(3	)		(11	)
Subprime mortgage		4,784		4,870		4,976		5,072		5,187		(2	)		(8	)
Option ARMs		21,565		22,105		22,693		23,325		24,072		(2	)		(10	)

Total loans — PCI		62,611		64,061		65,546		67,128		68,994		(2	)		(9	)
Total loans retained		300,046		304,770		308,427		310,104		315,169		(2	)		(5	)
Loans held-for-sale (c)		—		—		—		131		221		—			NM

Total consumer, excluding credit card loans		300,046		304,770		308,427		310,235		315,390		(2	)		(5	)


Credit card
Loans retained (d)		124,593		124,475		132,175		127,041		125,523		—			(1	)
Loans held-for-sale		112		856		102		94		—		(87	)		NM

Total credit card		124,705		125,331		132,277		127,135		125,523		—			(1	)

Total consumer loans		424,751		430,101		440,704		437,370		440,913		(1	)		(4	)

Total loans		727,571		720,967		723,720		696,853		689,736		1			5

Derivative receivables		85,543		85,010		92,477		108,853		77,383		1			11
Receivables from customers and other (e)		20,131		21,235		17,561		25,719		32,678		(5	)		(38	)


Total credit-related assets		105,674		106,245		110,038		134,572		110,061		(1	)		(4	)
Lending-related commitments
Wholesale		419,641		401,064		382,739		379,682		365,689		5			15
Consumer, excluding credit card		62,438		63,121		62,307		64,581		64,649		(1	)		(3	)
Credit card		534,267		533,318		530,616		528,830		535,625		—			—

Total lending-related commitments		1,016,346		997,503		975,662		973,093		965,963		2			5


Total credit exposure	$	1,849,591	$	1,824,715	$	1,809,420	$	1,804,518	$	1,765,760		1			5


Memo: Total by category
Wholesale exposure (f)	$	828,028	$	798,071	$	775,693	$	773,633	$	724,573		4			14
Consumer exposures (g)		1,021,563		1,026,644		1,033,727		1,030,885		1,041,187		—			(2	)

Total credit exposure	$	1,849,591	$	1,824,715	$	1,809,420	$	1,804,518	$	1,765,760		1			5

(a)	Includes IB, CB, TSS and AM business segments and Corporate/Private Equity.

(b)	Includes loans reported in RFS, auto and student loans reported in Card, and residential real estate loans reported in the AM business segment and in Corporate/Private Equity.

(c)	Represents prime mortgages for all periods presented.

(d)	Includes billed finance charges and fees net of an allowance for uncollectible amounts.

(e)	Predominantly includes receivables from customers, which represent margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated Balance Sheets.

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

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

Page 36

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


																Jun 30, 2012 Change
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2012			Jun 30, 2011
NONPERFORMING ASSETS AND RATIOS
Wholesale
Loans retained	$	1,804		$	1,941		$	2,398		$	3,011		$	3,362			(7	)%		(46	)%
Loans held-for-sale and loans at fair value		194			214			183			176			214			(9	)		(9	)

Total wholesale loans		1,998			2,155			2,581			3,187			3,576			(7	)		(44	)


Consumer, excluding credit card
Home equity (a)		2,615			2,766			1,287			1,290			1,308			(5	)		100
Prime mortgage, including option ARMs		3,139			3,258			3,462			3,656			4,024			(4	)		(22	)
Subprime mortgage		1,544			1,569			1,781			1,932			2,058			(2	)		(25	)
Auto		101			102			118			114			111			(1	)		(9	)
Business banking		587			649			694			756			770			(10	)		(24	)
Student and other		83			105			69			68			79			(21	)		5

Total consumer, excluding credit card		8,069			8,449			7,411			7,816			8,350			(4	)		(3	)

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


Total consumer nonaccrual loans (b)		8,070			8,450			7,412			7,818			8,352			(4	)		(3	)

Total nonaccrual loans		10,068			10,605			9,993			11,005			11,928			(5	)		(16	)


Derivative receivables (c)		451			317			297			285			217			42			108
Assets acquired in loan satisfactions		878			1,031			1,025			1,178			1,290			(15	)		(32	)

Total nonperforming assets (d)		11,397			11,953			11,315			12,468			13,435			(5	)		(15	)
Wholesale lending-related commitments (e)		565			756			865			705			793			(25	)		(29	)

Total (d)	$	11,962		$	12,709		$	12,180		$	13,173		$	14,228			(6	)		(16	)


Total nonaccrual loans to total loans		1.38	%		1.47	%		1.38	%		1.58	%		1.73	%
Total wholesale nonaccrual loans to total wholesale loans		0.66			0.74			0.91			1.23			1.44
Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans		2.69			2.77			2.40			2.52			2.65

NONPERFORMING ASSETS BY LOB
Investment Bank (c)	$	1,334		$	1,273		$	1,573		$	1,782		$	1,983			5			(33	)
Retail Financial Services (a)(b)		8,547			9,008			7,961			8,444			9,033			(5	)		(5	)
Card Services & Auto		219			242			228			232			233			(10	)		(6	)
Commercial Banking		953			1,064			1,138			1,611			1,831			(10	)		(48	)
Treasury & Securities Services		4			5			4			3			3			(20	)		33
Asset Management (c)		271			286			336			322			264			(5	)		3
Corporate/Private Equity (f)		69			75			75			74			88			(8	)		(22	)

TOTAL	$	11,397		$	11,953		$	11,315		$	12,468		$	13,435			(5	)		(15	)

(a)	Based on regulatory guidance issued in the first quarter of 2012, includes performing junior liens that are subordinate to senior liens that are 90 days or more past due. For further information, see footnote (d) on page 15.

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

(c)	Effective in the first quarter of 2012, amounts included both defaulted derivatives and derivatives that have been risk-rated as nonperforming; prior periods were revised as previously reported amounts only included defaulted derivatives.

(d)

At June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $11.9 billion, $11.8 billion, $11.5 billion, $9.5 billion and $9.1 billion, respectively, that are 90 or more days past due; and (2) real estate owned insured by U.S. government agencies of $1.3 billion, $1.2 billion, $954 million, $2.4 billion and $2.4 billion, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $547 million, $586 million, $551 million, $567 million and $558 million, respectively, that are 90 or more days past due. These amounts were excluded from nonaccrual loans as reimbursement of insured amounts is proceeding normally. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

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

(f)	Predominantly relates to retained prime mortgage loans.

Page 37

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
GROSS CHARGE-OFFS
Wholesale loans	$	73		$	92		$	431		$	98		$	134			(21	)%		(46	)%	$	165		$	387			(57	)%
Consumer loans, excluding credit card		1,054			1,134			1,310			1,292			1,357			(7	)		(22	)		2,188			2,817			(22	)
Credit card loans		1,583			1,627			1,641			1,765			2,131			(3	)		(26	)		3,210			4,762			(33	)

Total consumer loans		2,637			2,761			2,951			3,057			3,488			(4	)		(24	)		5,398			7,579			(29	)

Total loans	$	2,710		$	2,853		$	3,382		$	3,155		$	3,622			(5	)		(25	)	$	5,563		$	7,966			(30	)


GROSS RECOVERIES
Wholesale loans	$	64		$	87		$	85		$	249		$	54			(26	)		19		$	151		$	142			6
Consumer loans, excluding credit card		130			138			139			133			144			(6	)		(10	)		268			275			(3	)
Credit card loans		238			241			251			266			321			(1	)		(26	)		479			726			(34	)

Total consumer loans		368			379			390			399			465			(3	)		(21	)		747			1,001			(25	)

Total loans	$	432		$	466		$	475		$	648		$	519			(7	)		(17	)	$	898		$	1,143			(21	)


NET CHARGE-OFFS/(RECOVERIES)
Wholesale loans	$	9		$	5		$	346		$	(151	)	$	80			80			(89	)	$	14		$	245			(94	)
Consumer loans, excluding credit card		924			996			1,171			1,159			1,213			(7	)		(24	)		1,920			2,542			(24	)
Credit card loans		1,345			1,386			1,390			1,499			1,810			(3	)		(26	)		2,731			4,036			(32	)

Total consumer loans		2,269			2,382			2,561			2,658			3,023			(5	)		(25	)		4,651			6,578			(29	)

Total loans	$	2,278		$	2,387		$	2,907		$	2,507		$	3,103			(5	)		(27	)	$	4,665		$	6,823			(32	)


NET CHARGE-OFF/(RECOVERY) RATES
Wholesale retained loans		0.01	%		0.01	%		0.52	%		(0.24	)%		0.14	%								0.01	%		0.21	%
Consumer retained loans, excluding credit card (a)		1.23			1.31			1.50			1.47			1.53									1.27			1.60
Credit card retained loans		4.35			4.40			4.29			4.70			5.82									4.37			6.40
Total retained loans		1.27			1.35			1.64			1.44			1.83									1.31			2.02
Consumer retained loans, excluding credit card and PCI loans		1.55			1.66			1.91			1.88			1.96									1.61			2.05
Consumer retained loans, excluding PCI loans		2.51			2.60			2.74			2.84			3.25									2.55			3.52
Total retained loans, excluding PCI loans		1.40			1.49			1.81			1.60			2.04									1.44			2.26

Memo: Average retained loans
Wholesale loans	$	292,942		$	276,764		$	265,758		$	250,145		$	237,511			6			23		$	284,853		$	232,058			23

Consumer retained loans, excluding credit card		302,523			306,657			308,980			312,341			317,862			(1	)		(5	)		304,590			320,894			(5	)
Credit card retained loans		124,413			126,795			128,522			126,535			124,762			(2	)		—			125,604			127,136			(1	)

Total average retained consumer loans		426,936			433,452			437,502			438,876			442,624			(2	)		(4	)		430,194			448,030			(4	)

Total average retained loans	$	719,878		$	710,216		$	703,260		$	689,021		$	680,135			1			6		$	715,047		$	680,088			5

Consumer retained loans, excluding credit card and PCI loans	$	239,210		$	241,885		$	242,670		$	244,337		$	248,028			(1	)		(4	)	$	240,548		$	250,203			(4	)
Consumer retained loans, excluding PCI loans		363,623			368,679			371,192			370,872			372,790			(1	)		(2	)		366,151			377,339			(3	)
Total retained loans, excluding PCI loans		656,547			645,423			636,923			620,974			610,246			2			8			650,985			609,344			7

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

Page 38

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	25,871		$	27,609		$	28,350		$	28,520		$	29,750			(6	)%		(13	)%	$	27,609		$	32,266			(14	)%
Net charge-offs		2,278			2,387			2,907			2,507			3,103			(5	)		(27	)		4,665			6,823			(32	)
Provision for loan losses		200			646			2,193			2,351			1,872			(69	)		(89	)		846			3,068			(72	)
Other		(2	)		3			(27	)		(14	)		1			NM			NM			1			9			(89	)

Ending balance	$	23,791		$	25,871		$	27,609		$	28,350		$	28,520			(8	)		(17	)	$	23,791		$	28,520			(17	)


ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	750		$	673		$	686		$	626		$	688			11			9		$	673		$	717			(6	)
Provision for lending-related commitments		14			80			(9	)		60			(62	)		(83	)		NM			94			(89	)		NM
Other		—			(3	)		(4	)		—			—			NM			—			(3	)		(2	)		(50	)

Ending balance	$	764		$	750		$	673		$	686		$	626			2			22		$	764		$	626			22


ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,419		$	1,386		$	1,436		$	1,337		$	1,178			2			20
Retail Financial Services		12,897			14,247			15,247			15,479			15,479			(9	)		(17	)
Card Services & Auto		6,508			7,261			8,009			8,537			8,921			(10	)		(27	)
Commercial Banking		2,638			2,662			2,603			2,671			2,614			(1	)		1
Treasury & Securities Services		79			69			65			49			74			14			7
Asset Management		220			209			209			240			222			5			(1	)
Corporate/Private Equity		30			37			40			37			32			(19	)		(6	)

Total	$	23,791		$	25,871		$	27,609		$	28,350		$	28,520			(8	)		(17	)

Page 39

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


																Jun 30, 2012 Change
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2012			Jun 30, 2011
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset-specific	$	407		$	448		$	516		$	670		$	749			(9	)%		(46	)%
Formula-based		3,942			3,875			3,800			3,632			3,342			2			18

Total wholesale		4,349			4,323			4,316			4,302			4,091			1			6

Consumer, excluding credit card
Asset-specific		1,004			760			828			1,016			1,049			32			(4	)
Formula-based		7,228			8,826			9,755			10,563			10,397			(18	)		(30	)
PCI		5,711			5,711			5,711			4,941			4,941			—			16

Total consumer, excluding credit card		13,943			15,297			16,294			16,520			16,387			(9	)		(15	)

Credit card
Asset-specific		1,977			2,402			2,727			3,052			3,451			(18	)		(43	)
Formula-based		3,522			3,849			4,272			4,476			4,591			(8	)		(23	)

Total credit card		5,499			6,251			6,999			7,528			8,042			(12	)		(32	)

Total consumer		19,442			21,548			23,293			24,048			24,429			(10	)		(20	)

Total allowance for loan losses		23,791			25,871			27,609			28,350			28,520			(8	)		(17	)
Allowance for lending-related commitments		764			750			673			686			626			2			22

Total allowance for credit losses	$	24,555		$	26,621		$	28,282		$	29,036		$	29,146			(8	)		(16	)


CREDIT RATIOS
Wholesale allowance to total wholesale retained loans		1.46	%		1.52	%		1.55	%		1.68	%		1.68	%
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		4.65			5.02			5.28			5.33			5.20
Credit card allowance to total credit card retained loans		4.41			5.02			5.30			5.93			6.41
Total allowance to total retained loans		3.29			3.63			3.84			4.09			4.16
Wholesale allowance to wholesale retained nonaccrual loans		241			223			180			143			122
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (a)		173			181			220			211			196
Allowance, excluding credit card allowance, to retained nonaccrual loans, excluding credit card nonaccrual loans (a)		185			189			210			192			175
Total allowance to total retained nonaccrual loans		241			249			281			262			243

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total consumer, excluding credit card retained loans		3.47			3.98			4.36			4.77			4.65
Total allowance to total retained loans		2.74			3.11			3.35			3.74			3.83
Consumer, excluding credit card allowance, to consumer, excluding credit card retained nonaccrual loans (a)		102			113			143			148			137
Allowance, excluding credit card allowance, to retained nonaccrual loans, excluding credit card nonaccrual loans (a)		127			134			152			147			133
Total allowance to total retained nonaccrual loans		183			194			223			216			201

(a)

The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Under guidance issued by the FFIEC, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.

Page 40

JPMORGAN CHASE & CO.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
PROVISION FOR CREDIT LOSSES BY LINE OF BUSINESS
Provision for loan losses
Investment Bank	$	21		$	(85	)	$	298		$	(7	)	$	(142	)		NM	%		NM	%	$	(64	)	$	(551	)		88	%
Retail Financial Services		(555	)		(96	)		777			1,027			994			(478	)		NM			(651	)		2,193			NM
Card Services & Auto		734			738			1,061			1,264			944			(1	)		(22	)		1,472			1,297			13
Commercial Banking		(31	)		72			29			73			73			NM			NM			41			124			(67	)
Treasury & Securities Services		10			4			16			(25	)		5			150			100			14			12			17
Asset Management		33			21			23			26			7			57			371			54			12			350
Corporate/Private Equity		(12	)		(8	)		(11	)		(7	)		(9	)		(50	)		(33	)		(20	)		(19	)		(5	)

Total provision for loan losses	$	200		$	646		$	2,193		$	2,351		$	1,872			(69	)		(89	)	$	846		$	3,068			(72	)


Provision for lending-related commitments
Investment Bank	$	—		$	80		$	(26	)	$	61		$	(41	)		NM			NM		$	80		$	(61	)		NM
Retail Financial Services		—			—			2			—			—			—			—			—			—			—
Card Services & Auto		—			—			(1	)		—			—			—			—			—			—			—
Commercial Banking		14			5			11			(6	)		(19	)		180			NM			19			(23	)		NM
Treasury & Securities Services		(2	)		(2	)		3			5			(7	)		—			71			(4	)		(10	)		60
Asset Management		1			(2	)		1			—			5			NM			(80	)		(1	)		5			NM
Corporate/Private Equity		1			(1	)		1			—			—			NM			NM			—			—			—

Total provision for lending-related commitments	$	14		$	80		$	(9	)	$	60		$	(62	)		(83	)		NM		$	94		$	(89	)		NM


Provision for credit losses
Investment Bank	$	21		$	(5	)	$	272		$	54		$	(183	)		NM			NM		$	16		$	(612	)		NM
Retail Financial Services		(555	)		(96	)		779			1,027			994			(478	)		NM			(651	)		2,193			NM
Card Services & Auto		734			738			1,060			1,264			944			(1	)		(22	)		1,472			1,297			13
Commercial Banking		(17	)		77			40			67			54			NM			NM			60			101			(41	)
Treasury & Securities Services		8			2			19			(20	)		(2	)		300			NM			10			2			400
Asset Management		34			19			24			26			12			79			183			53			17			212
Corporate/Private Equity		(11	)		(9	)		(10	)		(7	)		(9	)		(22	)		(22	)		(20	)		(19	)		(5	)

Total provision for credit losses	$	214		$	726		$	2,184		$	2,411		$	1,810			(71	)		(88	)	$	940		$	2,979			(68	)




PROVISION FOR CREDIT LOSSES BY PORTFOLIO SEGMENT
Provision for loan losses
Wholesale	$	30		$	8		$	364		$	67		$	(55	)		275			NM		$	38		$	(414	)		NM
Consumer, excluding credit card		(425	)		2			939			1,285			1,117			NM			NM			(423	)		2,446			NM
Credit card		595			636			890			999			810			(6	)		(27	)		1,231			1,036			19

Total consumer		170			638			1,829			2,284			1,927			(73	)		(91	)		808			3,482			(77	)

Total provision for loan losses	$	200		$	646		$	2,193		$	2,351		$	1,872			(69	)		(89	)	$	846		$	3,068			(72	)


Provision for lending-related commitments
Wholesale	$	13		$	81		$	(11	)	$	60		$	(62	)		(84	)		NM		$	94		$	(89	)		NM
Consumer, excluding credit card		1			(1	)		2			—			—			NM			NM			—			—			—
Credit card		—			—			—			—			—			—			—			—			—			—

Total consumer		1			(1	)		2			—			—			NM			NM			—			—			—

Total provision for lending-related commitments	$	14		$	80		$	(9	)	$	60		$	(62	)		(83	)		NM		$	94		$	(89	)		NM


Provision for credit losses
Wholesale	$	43		$	89		$	353		$	127		$	(117	)		(52	)		NM		$	132		$	(503	)		NM
Consumer, excluding credit card		(424	)		1			941			1,285			1,117			NM			NM			(423	)		2,446			NM
Credit card		595			636			890			999			810			(6	)		(27	)		1,231			1,036			19

Total consumer		171			637			1,831			2,284			1,927			(73	)		(91	)		808			3,482			(77	)

Total provision for credit losses	$	214		$	726		$	2,184		$	2,411		$	1,810			(71	)		(88	)	$	940		$	2,979			(68	)

Page 41

JPMORGAN CHASE & CO.

MARKET RISK-RELATED INFORMATION

(in millions)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
95% CONFIDENCE LEVEL- AVERAGE IB TRADING VAR, CREDIT PORTFOLIO VAR AND OTHER VAR
IB VaR by risk type:
Fixed income	$	66		$	60		$	56		$	48		$	45			10	%		47	%	$	63		$	47			34	%
Foreign exchange		10			11			12			10			9			(9	)		11			11			10			10
Equities		20			17			19			19			25			18			(20	)		19			27			(30	)
Commodities and other		13			21			20			15			16			(38	)		(19	)		17			15			13
Diversification benefit to IB trading VaR (a)		(44	)		(46	)		(50	)		(39	)		(37	)		4			(19	)		(46	)		(38	)		(21	)

IB trading VaR (b)		65			63			57			53			58			3			12			64			61			5

Credit portfolio VaR (c)		25			32			39			38			27			(22	)		(7	)		29			27			7
Diversification benefit to IB trading and credit portfolio VaR (a)		(15	)		(14	)		(21	)		(21	)		(8	)		(7	)		(88	)		(15	)		(8	)		(88	)

Total IB trading and credit portfolio VaR		75			81			75			70			77			(7	)		(3	)		78			80			(3	)


Other VaR:
Mortgage Production and Servicing VaR (d)		15			11			44			40			20			36			(25	)		13			18			(28	)
Chief Investment Office VaR (e)		177			129	(g)		69			48			51			37			247			153			56			173
Diversification benefit to other VaR (a)		(10	)		(4	)		(30	)		(15	)		(10	)		(150	)		—			(7	)		(12	)		42

Total other VaR		182			136			83			73			61			34			198			159			62			156


Diversification benefit to total IB and other VaR (a)		(56	)		(47	)		(45	)		(35	)		(44	)		(19	)		(27	)		(51	)		(51	)		—

Total IB and other VaR (f)	$	201		$	170		$	113		$	108		$	94			18			114		$	186		$	91			104

(a)	Average portfolio VaR was less than the sum of the VaR of the components described above, due to portfolio diversification. The diversification effect reflects the fact that the risks are not perfectly correlated.

(b)	For further information on IB trading VaR, see footnote (b) on page 12.

(c)	For further information on Credit portfolio VaR see footnote (c) on page 12.

(d)	Mortgage Production and Servicing VaR includes the Firm’s mortgage pipeline and warehouse loans, MSRs and all related hedges.

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

(f)

Total IB, Credit portfolio and other VaR does not include the retained Credit portfolio, which is not reported at fair value; however, it does include hedges of those positions. It also does not include DVA on derivative and structured liabilities to reflect the credit quality of the Firm, principal investments (mezzanine financing, tax-oriented investments, etc.), certain securities and investments held by Corporate/Private Equity, capital management positions and longer-term investments managed by CIO.

(g)

Reference is made to the Form 8-K dated July 13, 2012 regarding the Firm’s announcement regarding the restatement of its 2012 first quarter financial statements. VaR numbers herein are the same as those contained in the Firm’s quarterly Report on Form 10-Q for the 2012 first quarter. The Firm believes that if CIO’s VaR were recalculated for the first quarter of 2012, the re-computed CIO VaR numbers would not be materially different from those reported in the Firm’s Quarterly Report on Form 10-Q for the 2012 first quarter.

Page 42

JPMORGAN CHASE & CO.

CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS

(in millions, except ratio data)


																Jun 30, 2012 Change						SIX MONTHS ENDED JUNE 30,
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2012			Jun 30, 2011							2012 Change
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2012			Jun 30, 2011			2012		2011		2011
CAPITAL (based on Basel I)
Tier 1 capital	$	148,399	(e)(f)	$	155,352		$	150,384		$	147,823		$	148,880			(4	)%		—	%
Total capital		184,499	(e)(f)		192,680			188,088			186,510			187,899			(4	)		(2	)
Tier 1 common capital (a)		130,095	(f)		127,642			122,916			120,234			121,209			2			7
Risk-weighted assets		1,268,990	(f)		1,235,110			1,221,198			1,217,548			1,198,711			3			6
Adjusted average assets (b)		2,202,489	(f)		2,195,625			2,202,087			2,168,678			2,129,510			—			3
Tier 1 capital ratio		11.7	%(f)		12.6	%		12.3	%		12.1	%		12.4	%
Total capital ratio		14.5	(f)		15.6			15.4			15.3			15.7
Tier 1 leverage ratio		6.7	(f)		7.1			6.8			6.8			7.0
Tier 1 common capital ratio (a)		10.3	(f)		10.3			10.1			9.9			10.1

TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity	$	183,772		$	181,469		$	175,773		$	174,487		$	175,079			1			5
Less: Goodwill		48,131			48,208			48,188			48,180			48,882			—			(2	)
Less: Other intangible assets		2,813			3,029			3,207			3,396			3,679			(7	)		(24	)
Add: Deferred tax liabilities (d)		2,749			2,719			2,729			2,645			2,632			1			4

Total tangible common equity	$	135,577		$	132,951		$	127,107		$	125,556		$	125,150			2			8


TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity	$	181,021		$	177,711		$	175,042		$	174,454		$	174,077			2			4		$	179,366	$	171,759		4	%
Less: Goodwill		48,157			48,218			48,225			48,631			48,834			—			(1	)		48,188		48,840		(1	)
Less: Other intangible assets		2,923			3,137			3,326			3,545			3,738			(7	)		(22	)		3,029		3,833		(21	)
Add: Deferred tax liabilities (d)		2,734			2,724			2,687			2,639			2,618			—			4			2,729		2,607		5

Total tangible common equity	$	132,675		$	129,080		$	126,178		$	124,917		$	124,123			3			7		$	130,878	$	121,693		8


INTANGIBLE ASSETS (period-end)
Goodwill	$	48,131		$	48,208		$	48,188		$	48,180		$	48,882			—			(2	)
Mortgage servicing rights		7,118			8,039			7,223			7,833			12,243			(11	)		(42	)
Purchased credit card relationships		466			535			602			668			744			(13	)		(37	)
All other intangibles		2,347			2,494			2,605			2,728			2,935			(6	)		(20	)

Total intangibles	$	58,062		$	59,276		$	58,618		$	59,409		$	64,804			(2	)		(10	)


DEPOSITS (period-end)
U.S. offices:
Noninterest-bearing	$	348,510		$	343,299		$	346,670		$	323,058		$	287,654			2			21
Interest-bearing		506,656			521,323			504,864			484,640			469,618			(3	)		8
Non-U.S. offices:
Noninterest-bearing		17,123			16,276			18,790			14,724			13,422			5			28
Interest-bearing		243,597			247,614			257,482			270,286			277,991			(2	)		(12	)

Total deposits	$	1,115,886		$	1,128,512		$	1,127,806		$	1,092,708		$	1,048,685			(1	)		6

(a)

The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. The Tier 1 common capital ratio, a non-GAAP financial measure, is Tier 1 common capital divided by risk-weighted assets. For further discussion of the Tier 1 common capital ratio, see page 46.

(b)

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

(c)	For further discussion of TCE, see page 46.

(d)	Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.

(e)	Tier 1 capital and Total capital as of June 30, 2012 no longer include approximately $9.0 billion of outstanding trust preferred securities, which will be redeemed as previously announced on June 11, 2012.

(f)	Estimated.

Page 43

JPMORGAN CHASE & CO.

MORTGAGE REPURCHASE LIABILITY

(in millions)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
MORTGAGE REPURCHASE LIABILITY (a)(b)
Summary of changes in mortgage repurchase liability:
Repurchase liability at beginning of period	$	3,516		$	3,557		$	3,616		$	3,631		$	3,474			(1	)%		1	%	$	3,557		$	3,285			8	%
Realized losses (c)		(259	)		(364	)		(462	)		(329	)		(241	)		29			(7	)		(623	)		(472	)		(32	)
Provision (d)		36			323			403			314			398			(89	)		(91	)		359			818			(56	)

Repurchase liability at end of period	$	3,293	(h)	$	3,516		$	3,557		$	3,616		$	3,631			(6	)		(9	)	$	3,293		$	3,631			(9	)


Outstanding repurchase demands and unresolved mortgage insurance rescission notices by counterparty type: (e)
GSEs	$	1,646		$	1,868		$	1,682		$	1,666		$	1,500			(12	)		10
Mortgage insurers		1,004			1,000			1,034			1,112			1,093			—			(8	)
Other (f)		981			756			663			467			326			30			201
Overlapping population (g)		(125	)		(116	)		(113	)		(155	)		(145	)		(8	)		14

Total	$	3,506		$	3,508		$	3,266		$	3,090		$	2,774			—			26


Quarterly mortgage repurchase demands received by loan origination vintage: (e)
Pre-2005	$	28		$	41		$	39		$	34		$	32			(32	)		(13	)	$	69		$	47			47
2005		65			95			55			200			57			(32	)		14			160			102			57
2006		506			375			315			232			363			35			39			881			521			69
2007		420			645			804			602			510			(35	)		(18	)		1,065			891			20
2008		311			361			291			323			301			(14	)		3			672			550			22
Post-2008		191			124			81			153			89			54			115			315			183			72

Total	$	1,521		$	1,641		$	1,585		$	1,544		$	1,352			(7	)		13		$	3,162		$	2,294			38

(a)

For further details regarding the Firm’s mortgage repurchase liability, see Mortgage repurchase liability on pages 115-118 and Note 29, on pages 283-289, of JPMorgan Chase’s 2011 Annual Report and Mortgage repurchase liability on pages 38-41 and Note 21, on pages 150-154, of JPMorgan Chase’s first quarter 2012 Form 10-Q.

(b)	Mortgage repurchase demands associated with private label securitizations are separately evaluated by the Firm in establishing its litigation reserves.

(c)

Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expense. Make-whole settlements were $107 million, $186 million, $237 million, $162 million and $126 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $293 million and $241 million for the six months ended June 30, 2012 and 2011, respectively.

(d)

Includes $28 million, $27 million, $17 million, $12 million and $10 million of provision related to new loan sales for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and $55 million and $23 million for the six months ended June 30, 2012 and 2011, respectively.

(e)	Excludes amounts related to Washington Mutual.

(f)

Represents repurchase demands received from parties other than the GSEs that have been presented to the Firm by trustees who assert authority to present such claims under the terms of the underlying sale or securitization agreement, and excludes repurchase demands asserted in or in connection with litigation.

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

(h)	Includes $17 million at June 30, 2012 related to future repurchase demands on loans sold by Washington Mutual to the GSEs.

Page 44

JPMORGAN CHASE & CO.

PER SHARE-RELATED INFORMATION

(in millions, except per share and ratio data)



	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																2Q12 Change												2012 Change
	2Q12			1Q12			4Q11			3Q11			2Q11			1Q12			2Q11			2012			2011			2011
EARNINGS PER SHARE DATA
Basic earnings per share:
Net income	$	4,960		$	4,924		$	3,728		$	4,262		$	5,431			1	%		(9	)%	$	9,884		$	10,986			(10	)%
Less: Preferred stock dividends		158			157			157			157			158			1			—			315			315			—

Net income applicable to common equity		4,802			4,767			3,571			4,105			5,273			1			(9	)		9,569			10,671			(10	)
Less: Dividends and undistributed earnings allocated to participating securities		168			190			146			169			206			(12	)		(18	)		359			468			(23	)

Net income applicable to common stockholders	$	4,634		$	4,577		$	3,425		$	3,936		$	5,067			1			(9	)	$	9,210		$	10,203			(10	)


Total weighted-average basic shares outstanding		3,808.9			3,818.8			3,801.9			3,859.6			3,958.4			—			(4	)		3,813.9			3,970.0			(4	)

Net income per share	$	1.22		$	1.20		$	0.90		$	1.02		$	1.28			2			(5	)	$	2.41		$	2.57			(6	)

Diluted earnings per share:
Net income applicable to common stockholders	$	4,634		$	4,577		$	3,425		$	3,936		$	5,067			1			(9	)	$	9,210		$	10,203			(10	)

Total weighted-average basic shares outstanding		3,808.9			3,818.8			3,801.9			3,859.6			3,958.4			—			(4	)		3,813.9			3,970.0			(4	)
Add: Employee stock options, SARs and warrants (a)		11.6			14.6			9.8			12.6			24.8			(21	)		(53	)		13.1			28.6			(54	)

Total weighted – average diluted shares outstanding (b)		3,820.5			3,833.4			3,811.7			3,872.2			3,983.2			—			(4	)		3,827.0			3,998.6			(4	)
Net income per share	$	1.21		$	1.19		$	0.90		$	1.02		$	1.27			2			(5	)	$	2.41		$	2.55			(5	)

COMMON SHARES OUTSTANDING
Common shares - at period end		3,796.8			3,822.0			3,772.7			3,798.9			3,910.2			(1	)		(3	)		3,796.8			3,910.2			(3	)
Cash dividends declared per share (c)	$	0.30		$	0.30		$	0.25		$	0.25		$	0.25			—			20		$	0.60		$	0.50			20
Book value per share		48.40			47.48			46.59			45.93			44.77			2			8			48.40			44.77			8
Dividend payout ratio		24	%		25	%		27	%		24	%		19	%								25	%		19	%

SHARE PRICE (c)
High	$	46.35		$	46.49		$	37.54		$	42.55		$	47.80			—			(3	)	$	46.49		$	48.36			(4	)
Low		30.83			34.01			27.85			28.53			39.24			(9	)		(21	)		30.83			39.24			(21	)
Close		35.73			45.98			33.25			30.12			40.94			(22	)		(13	)		35.73			40.94			(13	)
Market capitalization		135,661			175,737			125,442			114,422			160,083			(23	)		(15	)		135,661			160,083			(15	)

COMMON EQUITY REPURCHASE PROGRAM (d)
Aggregate common equity repurchased	$	1,437.4	(e,f)	$	216.1	(e,g)	$	863.8		$	4,424.9	(h)	$	3,479.8			NM			(59	)	$	1,653.5	(f,g)	$	3,574.8			(54	)
Common equity repurchased		46.5	(e,f)		5.5	(e,g)		27.2			127.4	(h)		80.3			NM			(42	)		52.0	(f,g)		82.4			(37	)
Average purchase price	$	30.88	(e,f)	$	39.49	(e,g)	$	31.75		$	34.72	(h)	$	43.33			(22	)		(29	)	$	31.79	(f,g)	$	43.39			(27	)

(a)

Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock. The aggregate number of shares issuable upon the exercise of such options and warrants was 159 million,169 million, 197 million, 197 million and 53 million for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively, and 164 million and 69 million for the six months ended June 30, 2012 and 2011, respectively.

(b)	Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.

(c)	For additional information on the dividends, listing and trading of JPMorgan Chase’s common stock, see page 2.

(d)

On March 13, 2012, the Board of Directors authorized a new $15.0 billion common equity (i.e., common stock and warrants) repurchase program, of which up to $12.0 billion is approved for repurchase in 2012 and up to an additional $3.0 billion is approved through the end of the first quarter of 2013. The new program supersedes a $15.0 billion repurchase program approved on March 18, 2011. The Firm did not make any repurchases after May 17, 2012.

(e)	The second quarter of 2012 includes $59.9 million of repurchases in March 2012, which settled in early April 2012; similarly, the first quarter of 2012 excluded these repurchases.

(f)	Includes impact of aggregate repurchases of 18.5 million warrants during the three months ended June 30, 2012.

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

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

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JPMORGAN CHASE & CO.

NON-GAAP FINANCIAL MEASURES

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

(a)

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

(b)

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

(c)

Tangible common equity (“TCE”), ROTCE, and Tier 1 common under Basel I and III rules are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s earnings as a percentage of TCE. Tier 1 common under Basel I and III rules are used by management, along with other capital measures, to assess and monitor the Firm’s capital position. TCE and ROTCE are meaningful to the Firm, as well as analysts and investors, in assessing the Firm’s use of equity. For additional information on Tier 1 common under Basel I and III, see Regulatory capital on pages 119-123 of JPMorgan Chase’s 2011 Annual Report and pages 42-44 of JPMorgan Chase’s first quarter 2012 Form 10-Q. In addition, all of the aforementioned measures are useful to the Firm, as well as analysts and investors, in facilitating comparisons with competitors.

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

(e)

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

(f)

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

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JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

ACH: Automated Clearing House.

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

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

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

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

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

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

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

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

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

NM: Not meaningful.

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

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

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

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JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

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

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

Purchased credit-impaired (“PCI”) loans: Represents loans that were acquired in the Washington Mutual transaction and deemed to be credit-impaired on the acquisition date in accordance with FASB guidance. The guidance allows purchasers to aggregate credit-impaired loans acquired in the same fiscal quarter into one or more pools, provided that the loans have common risk characteristics (e.g., product type, LTV ratios, FICO scores, past-due status, geographic location). A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows.

Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing.

Charge-offs are not recorded on PCI loans until actual losses exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. PCI loans as well as the related charge-offs and allowance for loan losses are excluded in the calculation of certain net charge-off rates and allowance coverage ratios. To date, no charge-offs have been recorded for these loans.

Receivables from customers: Primarily represents margin loans to prime and retail brokerage customers which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets for the wholesale lines of business.

Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments.

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

Risk-weighted assets (“RWA”): Risk-weighted assets consist of on- and off-balance sheet assets that are assigned to one of several broad risk categories and weighted by factors representing their risk and potential for default. On-balance sheet assets are risk-weighted based on the perceived credit risk associated with the obligor or counterparty, the nature of any collateral, and the guarantor, if any. Off-balance sheet assets such as lending-related commitments, guarantees, derivatives and other applicable off-balance sheet positions are risk-weighted by multiplying the contractual amount by the appropriate credit conversion factor to determine the on-balance sheet credit equivalent amount, which is then risk-weighted based on the same factors used for on-balance sheet assets. Risk-weighted assets also incorporate a measure for market risk related to applicable trading assets-debt and equity instruments, and foreign exchange and commodity derivatives. The resulting risk-weighted values for each of the risk categories are then aggregated to determine total risk-weighted assets.

Fully taxable-equivalent (“FTE”) basis: Total net revenue for each of the business segments and the Firm is presented on a fully taxable-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to fully taxable securities and investments. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense.

Troubled debt restructuring (“TDR”): Occurs when the Firm modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty.

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

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

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

Page 48

JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

INVESTMENT BANK (“IB”)

IB’s revenue comprises the following:

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

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

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

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

RETAIL FINANCIAL SERVICES (“RFS”)

Description of selected business metrics within Consumer & Business Banking:

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

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

Client advisors – Investment product specialists, including Private Client Advisors, Financial Advisors, Financial Advisor Associates, Senior Financial Advisors, Independent Financial Advisors and Financial Advisor Associate trainees, who advise clients on investment options, including annuities, mutual funds, stock trading services, etc., sold by the Firm or by third-party vendors through retail branches, Chase Private Client branches and other channels.

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

Sales specialists – Retail branch office and field personnel, including Business Bankers, Relationship Managers and Loan Officers, who specialize in marketing and sales of various business banking products (i.e., business loans, letters of credit, deposit accounts, Chase paymentec, etc.) and mortgage products to existing and new clients.

Deposit margin: Represents net interest income expressed as a percentage of average deposits.

RFS (continued)

Mortgage Production and Servicing revenue comprises the following:

Net production revenue includes net gains or losses on originations and sales of prime and subprime mortgage loans, other production-related fees and losses related to the repurchase of previously-sold loans.

Net mortgage servicing revenue includes the following components:

Operating revenue comprises:

•

All gross income earned from servicing third-party mortgage loans including stated service fees, excess service fees and other ancillary fees; and

•

Modeled MSR asset amortization (or time decay).

Risk management comprises:

•

Changes in MSR asset fair value due to market-based inputs such as interest rates, as well as updates to assumptions used in the MSR valuation model; and

•

Derivative valuation adjustments and other, which represents changes in the fair value of derivative instruments used to offset the impact of changes in interest rates to the MSR valuation model.

Mortgage origination channels comprise the following:

Retail – Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.

Wholesale – Third-party mortgage brokers refer loan application packages to the Firm. The Firm then underwrites and funds the loan. Brokers are independent loan originators that specialize in counseling applicants on available home financing options, but do not provide funding for loans. Chase materially eliminated broker-originated loans in 2008, with the exception of a small number of loans guaranteed by the U.S. Department of Agriculture under its Section 502 Guaranteed Loan program that serves low-and-moderate income families in small rural communities.

Correspondent – Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.

Correspondent negotiated transactions (“CNTs”) – Mid- to large-sized mortgage lenders, banks and bank-owned mortgage companies sell servicing to the Firm on an as-originated basis (excluding sales of bulk servicing transactions). These transactions supplement traditional production channels and provide growth opportunities in the servicing portfolio in periods of stable and rising interest rates.

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JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

CARD SERVICES & AUTO (“Card”)

Description of selected business metrics within Card:

Sales volume – Dollar amount of cardmember purchases, net of returns.

Open accounts – Cardmember accounts with charging privileges.

Merchant Services business – A business that processes bank card transactions for merchants.

Bank card volume – Dollar amount of transactions processed for merchants.

Total transactions – Number of transactions and authorizations processed for merchants.

Auto origination volume – Dollar amount of loans and leases originated.

Commercial Card provides a wide range of payment services to corporate and public sector clients worldwide through the commercial card products. Services include procurement, corporate travel and entertainment, expense management services, and business-to-business payment solutions.

COMMERCIAL BANKING (“CB”)

CB Client Segments:

1.	Middle Market Banking covers corporate, municipal, financial institution and not-for-profit clients, with annual revenue generally ranging between $10 million and $500 million.

2.	Corporate Client Banking covers clients with annual revenue generally ranging between $500 million and $2 billion and focuses on clients that have broader investment banking needs.

3.	Commercial Term Lending primarily provides term financing to real estate investors/owners for multi-family properties as well as financing office, retail and industrial properties.

4.	Real Estate Banking provides full-service banking to investors and developers of institutional-grade real estate properties.

5.	Other primarily includes lending and investment activity within the Community Development Banking and Chase Capital businesses.

CB (continued)

Revenue:

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

2.	Treasury services includes revenue from a broad range of products and services (as defined by Transaction Services and Trade Finance descriptions within TSS line of business metrics) that enable CB clients to manage payments and receipts, as well as invest and manage funds.

Investment banking includes revenue from a range of products providing CB clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through advisory, equity underwriting, and loan syndications. Revenue from Fixed income and Equity market products (as defined by Investment Banking line of business metrics) available to CB clients is also included.

4.	Other product revenue primarily includes tax-equivalent adjustments generated from Community Development Banking activity and certain income derived from principal transactions.

Description of selected business metrics within CB:

1.	Liability balances include deposits, as well as deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, federal funds purchased, time deposits and securities loaned or sold under repurchase agreements) as part of customer cash management programs.

2.	IB revenue, gross represents total revenue related to investment banking products sold to CB clients.

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JPMORGAN CHASE & CO.

GLOSSARY OF TERMS

TREASURY & SECURITIES SERVICES (“TSS”)

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

Description of a business metric within TSS:

1.	Liability balances include deposits, as well as deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, federal funds purchased, time deposits and securities loaned or sold under repurchase agreements) as part of customer cash management programs.

Description of selected products and services within TSS:

1.	Investor Services includes primarily custody, fund accounting and administration, and securities lending products sold principally to asset managers, insurance companies and public and private investment funds.

2.	Clearance, Collateral Management & Depositary Receipts primarily includes broker-dealer clearing and custody services, including tri-party repo transactions, collateral management products, and depositary bank services for American and global depositary receipt programs.

Transaction Services includes a broad range of products and services that enable clients to manage payments and receipts, as well as invest and manage funds. Products include U.S. dollar and multi-currency clearing, ACH, lockbox, disbursement and reconciliation services, check deposits, and currency related services.

4.	Trade Finance enables the management of cross-border trade for bank and corporate clients. Products include loans directly tied to goods crossing borders, export/import loans, commercial letters of credit, standby letters of credit, and supply chain finance.

Pre-provision profit ratio represents total net revenue less total noninterest expense divided by total net revenue. This reflects the operating performance before the impact of credit, and is another measure of performance for TSS against the performance of competitors.

ASSET MANAGEMENT (“AM”)

Assets under management – Represent assets actively managed by AM on behalf of Private Banking, Institutional, and Retail clients. Includes “committed capital not called,” on which AM earns fees. Excludes assets managed by American Century Companies, Inc. in which the Firm sold its minority ownership interest on August 31, 2011.

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

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

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

AM’s client segments comprise the following:

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

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

Private Banking includes investment advice and wealth management services to high- and ultra-high-net-worth individuals, families, money managers, business owners and small corporations worldwide, including investment management, capital markets and risk management, tax and estate planning, banking, capital raising and specialty-wealth advisory services.

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