EX-99.2

EX-99.2 2 y03956exv99w2.htm EX-99.2 3RD QUARTER 2004 RESULTS & UNAUDITED PRO FORMA FINANCIAL STATEMENT SUPPLEMENT FOR 6 QUARTERS ENDING 6/30/2004 EX-99.2

(JPMORGANCHASE)

2004 THIRD QUARTER RESULTS AND

PRO FORMA COMBINED HISTORICAL

FINANCIAL SUPPLEMENT

FOR THE SIX QUARTERS ENDING JUNE 30, 2004



JPMORGAN CHASE & CO. TABLE OF CONTENTS


	Page

Explanatory Note		1

Overview of Pro Forma Combined Historical Financial Supplement		2

Pro Forma Combined Historical Statement of Income — Reported Basis		8

Reconciliation from Reported to Operating Basis		9

Pro Forma Combined Historical Statement of Income — Operating Basis		10

Pro Forma Combined Line of Business Financial Highlights — Operating Basis		11

Pro Forma Combined Historical Line of Business Summary Information:

Investment Bank		12

Retail Financial Services		14

Card Services		19

Card Reconciliation of Reported and Managed Data		21

Commercial Banking		22

Treasury & Securities Services		23

Asset & Wealth Management		25

Corporate		27

Credit-Related Information		28

Appendix — Pro Forma Combined Historical Detail Information:

Pro Forma Combined Historical Statement of Income — Operating Basis		33

Investment Bank		39

Retail Financial Services		45

Card Services		51

Commercial Banking		57

Treasury & Securities Services		63

Asset & Wealth Management		69

Corporate		75

EXPLANATORY NOTE

The unaudited pro forma combined historical financial information contained in this document is being furnished pursuant to Regulation FD in order to assist investors in understanding (i) how the financial information of JPMorgan Chase & Co. and Bank One Corporation may have appeared on a combined basis had the two companies actually been merged as of the earliest date indicated and (ii) how the financial information of the lines of business of the new combined company may have appeared had the two companies actually been merged as of the earliest date indicated. The information presented is intended to be supplementary financial information only and is not intended to be incorporated by reference into registration statements or reports filed by JPMorgan Chase & Co. under the Securities Act of 1933 or the Securities Exchange Act of 1934, as the case may be.

The unaudited pro forma combined historical financial information has been derived from and should be read in conjunction with the historical financial statements and related notes of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) and Bank One Corporation (“Bank One”), as filed with the Securities and Exchange Commission.

The pro forma historical lines of business information present the seven new business segments of the combined company as if these segments had existed for the combined company as of the earliest date indicated. See the Executive Summary on pages 2-7 for more information on the composition of the new business segments.

In addition to analyzing the Firm’s results on a reported basis, management reviews the line-of-business results on an “operating basis,” which is a non-GAAP financial measure. The definition of operating basis starts with the reported U.S. GAAP results. In the case of IB, operating basis includes in Trading revenue the NII related to trading activities. Trading activities generate revenues which are recorded for U.S. GAAP purposes in two line items on the income statement: Trading revenue, which includes the mark-to-market gains or losses on trading positions; and Net interest income, which includes the interest income or expense related to those positions. Combining, for operating basis purposes, both the trading revenue and related net interest income enables management to evaluate IB’s trading activities by considering all revenue related to these activities, and facilitates operating comparisons to other competitors. In the case of Card Services, operating or managed basis excludes the impact of credit card securitizations on revenue, the provision for credit losses, net charge-offs and receivables. JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance of the underlying credit card loans, both sold and not sold: as the same borrower is continuing to use the credit card for ongoing charges, a borrower’s credit performance will impact both the receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed receivables, JPMorgan Chase treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire managed credit card portfolio. Finally, operating basis excludes the Merger costs and the Litigation reserve charge, as management believes these items are not part of the Firm’s normal daily business operations (and therefore not indicative of trends), and do not provide meaningful comparisons with other periods.

The unaudited pro forma combined historical financial information include (i) purchase price adjustments as of July 1, 2004 to reflect the merger as of such date of Bank One with JPMorgan Chase, (ii) estimated adjustments to record the assets and liabilities of Bank One at their respective fair values as of July 1, 2004, and (iii) adjustments for changes in management accounting policies. For more information about these purchase price and fair value adjustments reference is made to the Current Report on Form 8-K/A1 filed by JPMorgan Chase on July 30, 2004 (as amended by Form 8-K/A2 filed by JPMorgan Chase on August 13, 2004 which includes Bank One’s financial statements as of and for the period ended June 30, 2004), which Current Report contained pro forma financial information reflecting the consummation on July 1, 2004, of the merger of the two companies.

The unaudited pro forma combined historical financial information is presented for illustrative purposes only. This information does not include:

(i)
the impact of the sale of the Bank One corporate trust business to JPMorgan Chase;

(ii)
any future cost savings anticipated from the merger (including without limitation the previously announced $3.0 billion (pre-tax) of cost savings);

(iii)
merger-related costs anticipated to be incurred to combine the operations of JPMorgan Chase and Bank One, post June 30, 2004;

(iv)
the impact of possible future revenue enhancements or share repurchases.

Reclassifications of prior periods included in these pro forma combined historical financial statements reflect the conformity of certain management accounting policies as disclosed in the Executive Summary on pages 2-7; additional conformity of accounting policies and further reclassifications may be made in the future.

For the reasons stated above, the unaudited pro forma combined historical financial information included in this document does not necessarily indicate the combined results of operations or the combined financial position of the company that would have resulted had the merger actually been completed at the beginning of the applicable periods presented nor is it indicative of the results of operations in future periods or the future financial position of the company.

Page 1

Overview Page Executive summary 3 Mapping of old business segments into new lines of business 4 Proforma combined compared to historical press release 5 Management accounting policy changes 6 Purchase accounting adjustments 7 Page 2

Executive Summary - Proforma Combined Historical Financial Statements We are presenting for 6 quarters proforma combined financial information for periods beginning January 1st, 2003 for JPMorgan Chase (JPMC) and Bank One (ONE) Consolidated results are presented both on a proforma reported basis and on an proforma operating basis Operating results exclude merger costs and litigation reserve charge Operating results also include income statement reclassifications that have no bottom line impact Trading net interest income Credit card securitizations ("managed basis") Proforma combined operating numbers are based on historical results and restated for: Organizational changes (i.e. new business alignments) Elimination of ONE's gain on sale of its corporate trust business to JPMC (Q4'2003) Purchase accounting adjustments Intangible amortization Fair value adjustments Reporting reclassifications Minor shifts between revenues, provision, and expenses Impacts firm and segments; no bottom line impact Management accounting policy changes Include the following: Funds transfer pricing Expense allocations Capital allocations Revenue share Impact segments only; no bottom line impact Page 3

JPMC - Mapping of old business segments into new lines of business Page 4 Heritage J.P. Morgan Chase Heritage Bank One New JPMorgan Chase Investment Bank Commercial Banking JPMorgan Partners Support Units & Corporate Investment Management & Private Banking Chase Financial Services Treasury & Securities Services Corporate (Private Equity/ Treasury) Investment Management Group Retail Card Services Investment Bank Commercial Banking Retail Financial Services Asset & Wealth Management Corporate Card Services Treasury & Securities Services Global Treasury IB excluding: Chase Regional Banking Chase Auto Finance Chase Home Finance Chase Middle Market Chase Cardmember Services Middle Market Global Treasury Services Commercial Banking excluding: Insurance Investment Mgmt excluding: Portion of Large Corporate Portion of Large Corporate

Proforma Combined compared to Historical Press Release Differences are due to line item reclassifications and purchase accounting adjustments Expenses have increased by $125m in Q2, which is offset by a revenue increase of $105m and a decrease in provision of $20m due to remapping to conform policies in Card Services and Retail Financial Services In addition, Noninterest Revenue of $341m in Q2 has been remapped to Net Interest Income in Card Services to conform policies Purchase accounting adjustments to revenue, expenses, and taxes reflect minor changes from the July 8K due to changes in line item reclassifications; the impact on operating earnings is unchanged JPMC Press Release ONE Press Release = = Purchase Accounting Combined Line item reclassifi- cations (Net Income Neutral) Proforma Combined Operating/managed basis Will not tie to ONE press release due to rounding Page 5 Q2'2004 Example Second Quarter 2004 - Proforma Combined

Management Accounting Policy Changes Main drivers of the new policy: core deposit rate applied and duration of deposits Impacts primarily deposit based businesses (Retail Financial Services, Treasury & Securities Services, Asset & Wealth Management and Commercial Banking) In general terms, the new policy results in higher net interest income in the lines of business and the offset is in the Corporate sector (corporate treasury) Funds Transfer Pricing Policy changes do not have any impact at the consolidated level but they impact business segment results Policy changes will be refined in the future New "retained expense" policy Certain expenses related to corporate functions and technology & operations are not being allocated to the lines of business and are being reflected in Corporate; As of 2Q04 retained expenses are approximately $350mm (excluding Private Equity and Treasury); adjustments will still be made in 2005 Expenses not charged to the lines of business include Holding company costs reflected now in Corporate functions Executive management Vacant space (real estate amnesty for unused space) Certain technology and operations costs: Start up costs and market price adjustments Corporate initiatives Services priced to be "best in market" to the businesses Expense Allocations New capital allocated to the lines of business ( Disclosed in next earnings release) Allocated capital to each of the lines of business considers several factors: standalone peer comparables, economic risk measures, and regulatory capital requirements Capital Allocations Reflects new agreement to share economics where clients and products cross the business segments T&SS clients shared with IB report T&SS revenues in T&SS T&SS clients shared with Commercial Bank report T&SS revenues in Commercial Bank Other small agreements between the lines of business Revenue Share Page 6

Purchase accounting adjustments Purchase accounting adjustments are composed of fair value adjustments and amortization of intangibles Purchase accounting adjustments provided in the 8K filed on July 30, 2004 reflected 6-month impact (3Q04 and 4Q04) In this filing, purchase accounting adjustments reflect 3Q04 applied to each of the prior six quarters, to come up with proforma combined numbers Adjustments to revenue, expenses, and taxes reflect minor changes from the July 8K due to changes in line item reclassifications; the impact on operating earnings is unchanged Purchase accounting adjustments are also being provided on a line of business basis Page 7



JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME — REPORTED BASIS (in millions)


			PRO FORMA COMBINED
	3QTR		2QTR			1QTR		4QTR		3QTR		2QTR		1QTR		Memo: Pro Forma
	2004		2004			2004		2003		2003		2003		2003		Adjustments (a)
REVENUE
Investment Banking Fees	$	879	$	939		$	744	$	925	$	742	$	899	$	696	$	—
Trading Revenue		408		968			1,777		777		852		1,469		1,303		—
Lending & Deposit Related Fees		943		957			941		953		959		894		861		—
Asset Management, Administration and Commissions		2,141		2,258			2,295		2,092		1,986		1,880		1,850		2
Securities / Private Equity Gains (Losses)		413		403			587		33		375		893		336		—
Mortgage Fees and Related Income		277		360			258		171		63		321		450		(1	)
Credit Card Income		1,782		1,686			1,556		1,762		1,658		1,529		1,475		17
Other Income		210		434			338		344		84		170		164		4

Subtotal		7,053		8,005			8,496		7,057		6,719		8,055		7,135		22
Interest Income		9,493		8,736			8,854		8,906		8,970		9,124		9,552		(45	)
Interest Expense		4,041		3,462			3,543		3,468		3,540		3,772		4,057		(190	)

Net Interest Income		5,452		5,274			5,311		5,438		5,430		5,352		5,495		145



TOTAL NET REVENUE		12,505		13,279			13,807		12,495		12,149		13,407		12,630		167

Provision for Credit Losses		1,169		248			153		808		635		892		1,235		—
NONINTEREST EXPENSE
Compensation Expense		4,050		4,227			4,567		3,691		3,810		4,351		4,270		35
Occupancy Expense		604		596			594		641		552		695		646		(14	)
Technology and Communications Expense		1,046		960			989		933		895		903		794		(2	)
Professional & Outside Services		1,103		1,106			1,197		1,153		1,053		1,061		1,001		—
Marketing		506		521			489		464		432		382		390		—
Other Expense		920		1,037			885		1,031		818		774		749		(9	)
Amortization of Intangibles		396		392			391		391		387		384		385		279

Total Noninterest Expense before Merger Costs and Litigation Reserve Charge		8,625		8,839			9,112		8,304		7,947		8,550		8,235		289
Merger Costs		752		90			—		—		—		—		—		—
Litigation Reserve Charge		—		3,700			—		—		—		100		—		—

TOTAL NONINTEREST EXPENSE		9,377		12,629			9,112		8,304		7,947		8,650		8,235		289

Income before Income Tax Expense		1,959		402			4,542		3,383		3,567		3,865		3,160		(122	)
Income Tax Expense (Benefit)		541		(31	)		1,515		1,055		1,193		1,319		1,078		14

NET INCOME (b)	$	1,418	$	433		$	3,027	$	2,328	$	2,374	$	2,546	$	2,082	$	(136	)

(a)		Reflects purchase accounting adjustments estimated for 3Q04 applied to each quarter prior to the acquisition of Bank One on July 1, 2004.
(b)		Excludes the net gain on the sale of the Bank One corporate trust business to JPMorgan Chase of $597 million (pre-tax) or $380 million (after-tax) in the fourth quarter of 2003.

Page 8



JPMORGAN CHASE & CO. RECONCILIATION FROM REPORTED TO OPERATING BASIS (in millions)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
REPORTED
Revenue
Investment Banking Fees	$	879		$	939		$	744		$	925		$	742		$	899		$	696
Trading Revenue		408			968			1,777			777			852			1,469			1,303
Lending & Deposit Related Fees		943			957			941			953			959			894			861
Asset Management, Administration and Commissions		2,141			2,258			2,295			2,092			1,986			1,880			1,850
Securities / Private Equity Gains (Losses)		413			403			587			33			375			893			336
Mortgage Fees and Related Income		277			360			258			171			63			321			450
Credit Card Income		1,782			1,686			1,556			1,762			1,658			1,529			1,475
Other Income		210			434			338			344			84			170			164

Subtotal		7,053			8,005			8,496			7,057			6,719			8,055			7,135
Interest Income		9,493			8,736			8,854			8,906			8,970			9,124			9,552
Interest Expense		4,041			3,462			3,543			3,468			3,540			3,772			4,057

Net Interest Income		5,452			5,274			5,311			5,438			5,430			5,352			5,495

Total Net Revenue		12,505			13,279			13,807			12,495			12,149			13,407			12,630

Provision for Credit Losses		1,169			248			153			808			635			892			1,235
Noninterest Expense
Merger Costs		752			90			—			—			—			—			—
Litigation Reserve Charge		—			3,700			—			—			—			100			—
All Other Noninterest Expense		8,625			8,839			9,112			8,304			7,947			8,550			8,235

Total Noninterest Expense		9,377			12,629			9,112			8,304			7,947			8,650			8,235

Income (Loss) before Income Tax Expense		1,959			402			4,542			3,383			3,567			3,865			3,160
Income Tax Expense (Benefit)		541			(31	)		1,515			1,055			1,193			1,319			1,078

Net Income (Loss)	$	1,418		$	433		$	3,027		$	2,328		$	2,374		$	2,546		$	2,082

RECONCILING ITEMS (a)
Revenue
Trading-Related Revenue (b)	$	424		$	439		$	576		$	518		$	449		$	479		$	683
Credit Card Income (c)		(848	)		(711	)		(749	)		(798	)		(795	)		(700	)		(730	)
Other Income (c)		115			(45	)		(39	)		(31	)		(14	)		(24	)		(3	)
Net Interest Income:
Trading-Related (b)		(424	)		(439	)		(576	)		(518	)		(449	)		(479	)		(683	)
Credit Card Securitizations (c)		1,779			2,114			2,112			2,136			2,038			1,955			1,982

Total Net Interest Income		1,355			1,675			1,536			1,618			1,589			1,476			1,299

Total Net Revenue		1,046			1,358			1,324			1,307			1,229			1,231			1,249

Securitized Credit Losses (c)		595			1,358			1,324			1,307			1,229			1,231			1,249
Noninterest Expense
Merger Costs (d)		(752	)		(90	)		—			—			—			—			—
Litigation Reserve Charge (d)		—			(3,700	)		—			—			—			—			—
All Other Noninterest Expense		—			—			—			—			—			—			—

Total Noninterest Expense		(752	)		(3,790	)		—			—			—			—			—

Income before Income Tax Expense		1,203			3,790			—			—			—			—			—
Income Tax Expense (Benefit)		462			1,436			—			—			—			—			—

Net Income	$	741		$	2,354		$	—		$	—		$	—		$	—		$	—

(a)		Represents only those line items on the Consolidated Statement of Income impacted by the reclassification of trading-related net interest income and the impact of credit card securitizations, as well as for the second quarter of 2004, the Merger Costs and Litigation Reserve Charge line items on the Consolidated Statement of Income.
(b)		The reclassification of trading-related net interest income from Net Interest Income to Trading Revenue primarily impacts the Investment Bank segment results. See page 12 for further information.
(c)		The impact of credit card securitizations impacts Card Services. See page 21 for further information.
(d)		The impact of the Merger Costs, Litigation Reserve Charge, and Accounting Conformity Adjustments are excluded from Operating Earnings, as management believes these items are not part of the Firm’s normal daily business operations (and therefore not indicative of trends), and also do not provide meaningful comparisons with other periods.

Page 9



JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME — OPERATING BASIS (in millions)


			PRO FORMA COMBINED
	3QTR		2QTR		1QTR		4QTR		3QTR		2QTR		1QTR		Memo: Pro Forma
	2004		2004		2004		2003		2003		2003		2003		Adjustments (a)
REVENUE
Investment Banking Fees	$	879	$	939	$	744	$	925	$	742	$	899	$	696	$	—
Trading-Related Revenue (Including Trading NII)		832		1,407		2,353		1,295		1,301		1,948		1,986		—
Lending & Deposit Related Fees		943		957		941		953		959		894		861		—
Asset Management, Administration and Commissions		2,141		2,258		2,295		2,092		1,986		1,880		1,850		2
Securities / Private Equity Gains (Losses)		413		403		587		33		375		893		336		—
Mortgage Fees and Related Income		277		360		258		171		63		321		450		(1	)
Credit Card Income		934		975		807		964		863		829		745		17
Other Income		325		389		299		313		70		146		161		4

Subtotal		6,744		7,688		8,284		6,746		6,359		7,810		7,085		22
Interest Income		11,036		10,561		10,544		10,692		10,717		10,766		11,017		(45	)
Interest Expense		4,229		3,612		3,697		3,636		3,698		3,938		4,223		(190	)

Net Interest Income		6,807		6,949		6,847		7,056		7,019		6,828		6,794		145



TOTAL NET REVENUE		13,551		14,637		15,131		13,802		13,378		14,638		13,879		167

Managed Provision for Credit Losses		1,764		1,606		1,477		2,115		1,864		2,123		2,484		—
NONINTEREST EXPENSE
Compensation Expense		4,050		4,227		4,567		3,691		3,810		4,351		4,270		35
Occupancy Expense		604		596		594		641		552		695		646		(14	)
Technology and Communications Expense		1,046		960		989		933		895		903		794		(2	)
Professional & Outside Services		1,103		1,106		1,197		1,153		1,053		1,061		1,001		—
Marketing		506		521		489		464		432		382		390		—
Other Expense		920		1,037		885		1,031		818		874		749		(9	)
Amortization of Intangibles		396		392		391		391		387		384		385		279

TOTAL NONINTEREST EXPENSE		8,625		8,839		9,112		8,304		7,947		8,650		8,235		289

Operating Earnings before Income Tax Expense		3,162		4,192		4,542		3,383		3,567		3,865		3,160		(122	)
Income Tax Expense (Benefit)		1,003		1,405		1,515		1,055		1,193		1,319		1,078		14

OPERATING EARNINGS (b)	$	2,159	$	2,787	$	3,027	$	2,328	$	2,374	$	2,546	$	2,082	$	(136	)

Note: For additional information, see pages 33-38.

(a)		Reflects purchase accounting adjustments estimated for 3Q04 applied to each quarter prior to the acquisition of Bank One on July 1, 2004.
(b)		Excludes the net gain on the sale of the Bank One corporate trust business to JPMorgan Chase of $597 million (pre-tax) or $380 million (after-tax) in the fourth quarter of 2003.

Page 10



JPMORGAN CHASE & CO. PRO FORMA COMBINED LINE OF BUSINESS FINANCIAL HIGHLIGHTS — OPERATING BASIS (in millions)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
REVENUE
Investment Bank	$	2,701		$	3,397		$	4,207		$	3,316		$	3,202		$	3,931		$	3,805
Retail Financial Services		3,800			3,947			3,784			3,666			3,390			3,938			3,776
Card Services		3,771			3,776			3,624			3,737			3,552			3,401			3,278
Commercial Banking		833			866			833			851			855			855			836
Treasury & Securities Services		1,339			1,368			1,280			1,270			1,199			1,173			1,130
Asset & Wealth Management		1,193			1,185			1,213			1,189			1,096			1,019			971
Corporate		(86	)		98			190			(227	)		84			321			83

TOTAL NET REVENUE	$	13,551		$	14,637		$	15,131		$	13,802		$	13,378		$	14,638		$	13,879

OPERATING EARNINGS
Investment Bank	$	627		$	1,016		$	1,351		$	1,157		$	1,030		$	952		$	790
Retail Financial Services		822			938			744			429			542			880			782
Card Services		421			409			336			396			359			330			283
Commercial Banking		215			234			289			225			191			216			200
Treasury & Securities Services		96			103			93			129			125			94			106
Asset & Wealth Management		197			190			229			199			178			144			108
Corporate		(219	)		(103	)		(15	)		(207	)		(51	)		(70	)		(187	)

TOTAL OPERATING EARNINGS	$	2,159		$	2,787		$	3,027		$	2,328		$	2,374		$	2,546		$	2,082

Page 11



JPMORGAN CHASE & CO. INVESTMENT BANK PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR		Memo: Pro Forma
	2004			2004			2004			2003			2003			2003			2003		Adjustments (a)
REVENUE
Investment Banking Fees:
Advisory	$	273		$	269		$	147		$	161		$	161		$	164		$	160	$	—
Equity Underwriting		170			223			179			255			176			168			108		—
Debt Underwriting		468			445			417			509			402			564			443		—

Total Investment Banking Fees		911			937			743			925			739			896			711		—
Trading-Related Revenue: (b)
Fixed Income and Other		657			1,416			1,994			1,137			1,164			1,766			1,731		—
Equities		185			(88	)		333			93			98			161			206		—

Total Trading-Related Revenue		842			1,328			2,327			1,230			1,262			1,927			1,937		—
Lending & Deposit Related Fees		155			172			155			154			139			126			116		—
Asset Management, Administration and Commissions		313			357			405			333			335			334			315		—
Other Income		91			128			105			166			128			68			58		—

Subtotal		2,312			2,922			3,735			2,808			2,603			3,351			3,137		—
Net Interest Income (b)		389			475			472			508			599			580			668		1

TOTAL NET REVENUE		2,701			3,397			4,207			3,316			3,202			3,931			3,805		1

Provision for Credit Losses		(151	)		(315	)		(303	)		(396	)		(298	)		(45	)		317		—
Credit Reimbursement from T&SS (c)		43			43			43			54			54			54			54		—
NONINTEREST EXPENSE
Compensation Expense		992			1,240			1,492			949			1,061			1,482			1,401		—
Noncompensation Expense		932			935			936			980			859			1,068			915		(5	)
Amortization of Intangibles		—			—			—			—			—			—			—		—

TOTAL NONINTEREST EXPENSE		1,924			2,175			2,428			1,929			1,920			2,550			2,316		(5	)

Operating Earnings before Income Tax Expense		971			1,580			2,125			1,837			1,634			1,480			1,226		6
Income Tax Expense (Benefit)		344			564			774			680			604			528			436		2

OPERATING EARNINGS	$	627		$	1,016		$	1,351		$	1,157		$	1,030		$	952		$	790	$	4

Note: For additional information, see pages 39-44.

(a)		Reflects purchase accounting adjustments estimated for 3Q04 applied to each quarter prior to the acquisition of Bank One on July 1, 2004.
(b)		Trading revenue, on a reported basis, excludes the impact of net interest income related to IB’s trading activities; this income is recorded within Net interest income. However, in assessing the profitability of IB’s trading business, the Firm combines these revenues for segment reporting. The amount reclassified from Net interest income to Trading revenue was $430 million, $427 million, $581 million, $512 million, $447 million, $482 million and $682 million during the quarters ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively.
(c)		Management has charged T&SS a credit reimbursement, which is the pre-tax amount of earnings, less cost of capital, related to certain exposures managed within the IB credit portfolio on behalf of clients shared with T&SS.

Page 12



JPMORGAN CHASE & CO. INVESTMENT BANK BUSINESS-RELATED METRICS PRO FORMA COMBINED HISTORICAL LINE OF BUSINESS INFORMATION (in millions, except ratios)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
REVENUE BY BUSINESS
Investment Banking	$	911		$	937		$	743		$	925		$	739		$	896		$	711
Fixed Income Markets		1,115			1,815			2,330			1,557			1,632			2,389			2,193
Equities Markets		455			194			674			346			347			394			439
Credit Portfolio		220			451			460			488			484			252			462

Total Net Revenue	$	2,701		$	3,397		$	4,207		$	3,316		$	3,202		$	3,931		$	3,805

REVENUE BY REGION
Americas	$	1,591		$	1,936		$	2,376		$	2,109		$	2,037		$	2,246		$	2,316
Europe/Middle East/Africa		741			1,042			1,307			914			921			1,347			1,223
Asia/Pacific		369			419			524			293			244			338			266

Total Net Revenue	$	2,701		$	3,397		$	4,207		$	3,316		$	3,202		$	3,931		$	3,805

SELECTED BALANCE SHEET (Average)
Total Assets	$	496,347		$	503,396		$	496,529		$	482,958		$	478,720		$	461,902		$	482,734
Loans (a)		45,779			48,968			51,855			60,533			66,830			58,919			66,278
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	(16	)	$	3		$	24		$	5		$	263		$	277		$	332
Nonperforming Assets
- Nonperforming Loans		1,075			1,345			1,703			1,991			2,846			3,250			3,667
- Other Nonperforming Assets		246			340			357			370			383			395			395
Net Charge-off Rate (a)		(0.17	)%		0.03	%		0.21	%		0.04	%		1.65	%		2.05	%		2.16	%

(a)

Loans include loans held for sale of $7,281 million, $5,259 million, $5,742 million, $4,279 million, $3,778 million, $4,811 million and $3,935 million as of September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the net charge-off rates.

Page 13



JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


			PRO FORMA COMBINED
	3QTR		2QTR		1QTR		4QTR			3QTR			2QTR			1QTR			Memo: Pro Forma
	2004		2004		2004		2003			2003			2003			2003			Adjustments (a)
REVENUE
Lending & Deposit Related Fees	$	395	$	375	$	358	$	371		$	373		$	351		$	324		$	—
Asset Management, Administration and Commissions		331		338		357		318			295			288			301			2
Securities / Private Equity Gains (Losses)		6		—		—		18			(61	)		324			102			—
Mortgage Fees and Related Income		255		398		261		172			56			317			453			(1	)
Credit Card Income		89		89		75		75			79			90			79			—
Other Income		18		65		4		16			(4	)		(12	)		(19	)		—

Subtotal		1,094		1,265		1,055		970			738			1,358			1,240			1
Net Interest Income		2,706		2,608		2,625		2,696			2,652			2,580			2,536			24

TOTAL NET REVENUE		3,800		3,873		3,680		3,666			3,390			3,938			3,776			25

Provision for Credit Losses		239		175		197		270			375			289			389			—
NONINTEREST EXPENSE
Compensation Expense		855		840		897		802			739			817			789			—
Noncompensation Expense		1,250		1,297		1,349		1,352			1,276			1,212			1,219			(3	)
Amortization of Intangibles		133		133		133		133			133			133			133			132

TOTAL NONINTEREST EXPENSE		2,238		2,270		2,379		2,287			2,148			2,162			2,141			129

Operating Earnings before Income Tax Expense and Non-Core Portfolio Actions		1,323		1,428		1,104		1,109			867			1,487			1,246			(104	)
Income Tax Expense (Benefit)		501		536		413		423			325			554			464			(41	)

Operating Earnings before Non-Core Portfolio Actions		822		892		691		686			542			933			782			(63	)

Non-Core Portfolio Actions: (b)
Impacts to:
Other Income		—		74		104		—			—			—			—			—
Provision for Credit Losses		—		—		18		415			—			85			—			—

Total Non-Core Portfolio Actions		—		74		86		(415	)		—			(85	)		—			—
Income Tax Expense (Benefit)		—		28		33		(158	)		—			(32	)		—			—

Operating Earnings from Non-Core Portfolio Actions		—		46		53		(257	)		—			(53	)		—			—

OPERATING EARNINGS	$	822	$	938	$	744	$	429		$	542		$	880		$	782		$	(63	)

Note: For additional information, see pages 45-50.

(a)		Reflects purchase accounting adjustments estimated for 3Q04 applied to each quarter prior to the acquisition of Bank One on July 1, 2004.
(b)		Includes gains on loan sales, valuation adjustments and loan loss reserve increases on the Bank One brokered home equity portfolio.

Page 14



JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions, except ratios)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
SELECTED BALANCE SHEET (Average)
Total Assets	$	227,716		$	226,193		$	220,424		$	231,045		$	231,797		$	224,044		$	210,219
Loans (a)		198,244			195,912			190,350			196,446			196,621			187,315			178,939
Core Deposits (b)		159,197			161,237			153,275			150,888			155,982			150,274			143,359
Total Deposits		183,921			186,994			180,019			178,558			184,747			180,474			175,119
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (c)	$	219		$	176		$	236		$	969		$	318		$	285		$	303
Nonperforming Loans (d)		1,308			1,282			1,483			1,692			1,851			1,838			1,910
Nonperforming Assets		1,557			1,551			1,796			2,053			2,215			2,273			2,357
Allowance for Loan Losses		1,764			1,907			1,909			1,937			2,223			2,166			2,076
Net Charge-off Rate (a)		0.47	%		0.40	%		0.56	%		2.26	%		0.77	%		0.72	%		0.80	%
Allowance for Loan Losses to Average Loans (a)		0.96			1.08			1.13			1.14			1.35			1.37			1.35
Allowance for Loan Losses to Nonperforming Loans (d)		143			168			153			138			123			120			110
Nonperforming Loans to Total Loans		0.65			0.65			0.78			0.86			0.94			0.98			1.07

(a)		Loans include loans held for sale of $14,479 million, $19,818 million, $21,165 million, $25,998 million, $32,376 million, $28,777 million and $25,438 million at September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the net charge-off rate or the allowance coverage ratios.
(b)		Includes demand and savings deposits.
(c)		Fourth quarter 2003 includes $652 million of net charge-offs related to the non-core Bank One brokered home equity portfolio.
(d)		Nonperforming loans include loans held for sale of $74 million, $144 million, $233 million, $286 million, $40 million, $32 million and $30 million at September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.

Page 15



JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS AND BUSINESS-RELATED METRICS PRO FORMA COMBINED HISTORICAL LINE OF BUSINESS INFORMATION (in millions, except ratios and where otherwise noted)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
RETAIL BUSINESSES
HOME FINANCE (a)
Net Revenue	$	1,159		$	1,276		$	1,109		$	1,173		$	1,002		$	1,611		$	1,442
Provision for Credit Losses		65			78			45			114			187			163			226
Noninterest Expense		560			541			605			603			565			532			508
Operating Earnings		340			418			294			286			163			582			451
Origination Volume by Channel (in billions)
Retail	$	19.7		$	27.2		$	20.0		$	21.2		$	35.8		$	32.1		$	23.4
Wholesale		11.6			15.7			9.5			11.2			23.1			18.7			14.4
Correspondent		5.4			7.9			5.3			9.3			15.5			11.7			8.0
Correspondent Negotiated Transactions		11.3			12.4			7.7			14.0			25.7			22.5			21.1

Total		48.0			63.2			42.5			55.7			100.1			85.0			66.9
Origination Volume by Business (in billions)
Mortgage	$	34.1		$	47.9		$	31.5		$	44.1		$	87.9		$	74.1		$	59.3
Home Equity		13.9			15.3			11.0			11.6			12.2			10.9			7.6

Total		48.0			63.2			42.5			55.7			100.1			85.0			66.9
Business Metrics (in billions)
Loans Serviced (Ending)	$	553.5		$	538.9		$	521.2		$	516.2		$	501.7		$	486.5		$	477.8
MSR Net Carrying Value (Ending)		5.2			5.8			4.3			4.9			4.1			3.0			3.3
Average Loans Owned
Mortgage Loans (Average)		57.7			54.9			50.8			61.0			64.8			57.4			50.7
Home Equity and Other Loans (Average)		63.4			62.4			59.2			57.0			54.9			53.0			52.0

Total Average Loans Owned (b)		121.1			117.3			110.0			118.0			119.7			110.4			102.7
Credit Quality Statistics
30+ Day Delinquency Rate		1.50			1.39	%		1.59	%		2.07	%		2.89	%		3.11	%		3.41	%
Net Charge-offs
Mortgage	$	6		$	5		$	4		$	28		$	7		$	13		$	7
Home Equity and Other Loans		57			62			101			110			147			128			147

Total Net Charge-offs		63			67			105			138			154			141			154
Net Charge-off Rate
Mortgage		0.05	%		0.05	%		0.04	%		0.27	%		0.08	%		0.16	%		0.10	%
Home Equity and Other Loans		0.36			0.41			0.72			0.79			1.06			0.97			1.15
Total Net Charge-off Rate (b)		0.23			0.27			0.45			0.57			0.68			0.67			0.78
Nonperforming Assets	$	997		$	987		$	1,220		$	1,419		$	1,517		$	1,599		$	1,674

(a)		Excludes impacts of noncore portfolio actions disclosed on page 14.
(b)		Loans include loans held for sale of $9.5 billion, $17.2 billion, $16.5 billion, $22.5 billion, $29.5 billion, $25.5 billion and $22.1 billion at September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the net charge-off rates.

Page 16



JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS AND BUSINESS-RELATED METRICS, CONTINUED PRO FORMA COMBINED HISTORICAL LINE OF BUSINESS INFORMATION (in millions, except ratios and where otherwise noted)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
RETAIL BUSINESSES, CONTINUED
CONSUMER & SMALL BUSINESS BANKING
Net Revenue	$	2,076		$	1,969		$	2,007		$	1,896		$	1,877		$	1,852		$	1,865
Provision for Credit Losses		79			37			57			38			58			31			32
Noninterest Expense		1,379			1,432			1,479			1,380			1,358			1,430			1,437
Operating Earnings		377			308			290			292			283			241			244
Business Metrics (in billions)
Small Business Loans (Average)	$	12.4		$	12.4		$	12.2		$	11.9		$	11.9		$	11.7		$	11.6
Consumer and Other Loans (Average)		2.3			2.2			2.6			2.3			2.3			2.4			2.8

Total Loans		14.7			14.6			14.8			14.2			14.2			14.1			14.4
Core Deposits (Average)		148.2			148.2			143.5			139.0			136.2			133.5			129.3
Total Deposits (Average)		172.9			173.8			170.1			166.4			164.7			163.4			160.7
Number of Branches		2,467			2,435			2,409			2,402			2,370			2,363			2,358
Number of ATMs		6,587			6,549			6,496			6,325			6,304			6,029			5,874
Number of Personal Bankers		5,341			5,417			5,421			5,420			4,899			4,579			4,585
Debit Cards Issued (in thousands)		8,282			8,057			7,815			7,597			7,485			7,329			7,181
Number of Personal Checking Accounts (in thousands)		7,222			7,045			6,892			6,757			6,691			6,554			6,463
Number of Business Checking Accounts (in thousands)		891			881			870			860			856			848			842
Retail Brokerage Business Metrics
Investment Sales Volume	$	2,563		$	2,893		$	2,717		$	2,596		$	2,655		$	2,738		$	2,193
Number of Dedicated Investment Sale Representatives		1,393			1,404			1,440			1,322			1,248			1,207			1,181
Credit Quality Statistics
Net Charge-offs
Small Business	$	24		$	29		$	20		$	31		$	30		$	33		$	25
Consumer and Other Loans		36			11			7			18			16			3			1

Total Net Charge-offs		60			40			27			49			46			36			26
Net Charge-off Rate
Small Business		0.77	%		0.94	%		0.66	%		1.03	%		1.00	%		1.13	%		0.87	%
Consumer and Other Loans		6.23			2.01			1.08			3.10			2.76			0.50			0.14
Total Net Charge-off Rate		1.62			1.10			0.73			1.37			1.29			1.02			0.73
Nonperforming Assets	$	313		$	317		$	327		$	336		$	373		$	366		$	351

Page 17



JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS AND BUSINESS-RELATED METRICS, CONTINUED PRO FORMA COMBINED HISTORICAL LINE OF BUSINESS INFORMATION (in millions, except ratios and where otherwise noted)

PRO FORMA COMBINED


	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
RETAIL BUSINESSES, CONTINUED
AUTO FINANCE
Net Revenue	$	397		$	454		$	382		$	421		$	432		$	436		$	435
Provision for Credit Losses		95			60			95			118			130			95			131
Noninterest Expense		163			159			160			160			157			162			159
Operating Earnings		85			144			77			88			89			110			89
Business Metrics (in billions)
Average Loans and Lease Receivables
Loan Outstanding (Average)	$	52.9		$	53.9		$	54.5		$	52.4		$	50.3		$	50.0		$	49.0
Lease Receivables (Average)		9.2			10.1			10.7			11.4			12.1			12.5			12.8

Total Average Loans and Lease Receivables (a)		62.1			64.0			65.2			63.8			62.4			62.5			61.8
Credit Quality Statistics 30+ Day Delinquency Rate		1.38	%		1.30	%		1.26	%		1.71	%		1.68	%		1.64	%		1.56	%
Net Charge-offs
Loans	$	83		$	57		$	85		$	110		$	95		$	87		$	96
Lease Receivables		13			12			19			20			23			21			27

Total Net Charge-offs		96			69			104			130			118			108			123
Net Charge-off Rate
Loans (a)		0.65	%		0.45	%		0.69	%		0.89	%		0.80	%		0.75	%		0.85	%
Lease Receivables		0.56			0.48			0.71			0.70			0.75			0.67			0.86
Total Net Charge-off Rate (a)		0.64			0.45			0.69			0.86			0.79			0.73			0.85
Nonperforming Assets	$	247		$	247		$	249		$	298		$	325		$	308		$	332
INSURANCE
Net Revenue	$	168		$	174		$	182		$	176		$	79		$	39		$	34
Noninterest Expense		136			138			135			144			68			38			37
Operating Earnings		20			22			30			20			7			—			(2	)
Memo:
Consolidated Gross Insurance-Related Revenue (b)		429			424			413			412			306			270			271
Business Metrics (Ending Balances)
Invested Assets	$	7,489		$	7,343		$	7,957		$	7,638		$	7,500		$	1,850		$	1,567
Insurance Policy and Claims Reserves		7,477			7,731			7,976			7,808			7,515			1,116			971
Proprietary Annuity Sales		39			74			76			80			127			143			198
A.M Best Rating		A			A			A			A			A			A			A

(a)		Loans include loans held for sale of $2.2 billion, $2.6 billion, $4.7 billion, $3.5 billion, $2.9 billion, $3.3 billion and $3.3 billion at September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the net charge-off rates.
(b)		Consolidated gross insurance-related revenue includes revenue reported in the results of other lines of business.

Page 18



JPMORGAN CHASE & CO. CARD SERVICES — MANAGED BASIS PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)

PRO FORMA COMBINED


	3QTR			2QTR			1QTR		4QTR			3QTR			2QTR		1QTR		Memo: Pro Forma
	2004			2004			2004		2003			2003			2003		2003		Adjustments (a)
REVENUE
Asset Management, Administration and Commissions	$	26		$	26		$	25	$	27		$	26		$	26	$	33	$	—
Credit Card Income		784			823			678		839			746			702		635		17
Other Income		44			32			66		35			31			72		33		4

Subtotal		854			881			769		901			803			800		701		21
Net Interest Income		2,917			2,895			2,855		2,836			2,749			2,601		2,577		(140	)

TOTAL NET REVENUE		3,771			3,776			3,624		3,737			3,552			3,401		3,278		(119	)

Managed Provision for Credit Losses		1,662			1,757			1,725		1,801			1,705			1,641		1,644		—
NONINTEREST EXPENSE
Compensation Expense		317			315			323		302			306			298		297		—
Noncompensation Expense		926			864			853		805			774			744		697		(6	)
Amortization of Intangibles		194			187			187		195			192			189		189		93

TOTAL NONINTEREST EXPENSE		1,437			1,366			1,363		1,302			1,272			1,231		1,183		87


Operating Earnings Before Income Tax Expense		672			653			536		634			575			529		451		(206	)
Income Tax Expense		251			244			200		238			216			199		168		(75	)

OPERATING EARNINGS	$	421		$	409		$	336	$	396		$	359		$	330	$	283	$	(131	)

Memo: Net Securitization Gains (Amortization)	$	(2	)	$	(2	)	$	2	$	(19	)	$	(9	)	$	22	$	—

Note: For additional information, see pages 51-56.

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each quarter prior to the acquisition of Bank One on July 1, 2004.

Page 19



JPMORGAN CHASE & CO. CARD SERVICES — MANAGED BASIS PRO FORMA COMBINED HISTORICAL LINE OF BUSINESS INFORMATION FINANCIAL HIGHLIGHTS (in millions, except ratios and where otherwise noted)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
FINANCIAL METRICS
% of Average Managed Outstandings:
Net Interest Income		8.90	%		9.17	%		9.10	%		8.96	%		8.71	%		8.43	%		8.41	%
Managed Provision for Credit Losses		5.07			5.57			5.50			5.69			5.40			5.32			5.37
Noninterest Income		2.61			2.79			2.45			2.85			2.55			2.59			2.29
Risk Adjusted Margin		6.44			6.40			6.05			6.11			5.85			5.70			5.33
Noninterest Expense		4.39			4.33			4.34			4.11			4.03			3.99			3.86
Pre-tax Income		2.05			2.07			1.71			2.00			1.82			1.71			1.47
Operating Earnings		1.28			1.30			1.07			1.25			1.14			1.07			0.92
BUSINESS METRICS
Charge Volume (in billions)	$	73.3		$	70.6		$	63.5		$	68.9		$	65.4		$	62.3		$	58.7
Net Accounts Opened (in thousands) (a)		2,755			10,269			2,011			1,908			1,976			2,835			2,036
Credit Cards Issued (in thousands)		95,946			96,343			87,014			85,942			86,150			86,161			84,593
Merchant Acquiring Business
Bank Card Volume (in billions)	$	123.5		$	119.3		$	110.1		$	119.2		$	107.9		$	104.4		$	91.6
Total Transactions (in millions)		3,972			3,926			3,714			3,934			3,615			3,490			3,135
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheet	$	60,241		$	28,981		$	29,187		$	29,543		$	30,873		$	31,437		$	30,669
Securitized Loans		71,256			69,752			68,747			71,956			71,078			69,621			67,682
Seller’s Interest and Accrued Interest Receivable (b)		—			30,177			27,485			27,193			23,285			24,414			25,156

Managed Loans	$	131,497		$	128,910		$	125,419		$	128,692		$	125,236		$	125,472		$	123,507

SELECTED AVERAGE BALANCES
Managed Assets	$	136,753		$	134,141		$	133,797		$	133,077		$	132,479		$	131,686		$	132,113
Loans:
Loans on Balance Sheet	$	59,386		$	29,748		$	29,473		$	30,042		$	33,773		$	32,145		$	31,229
Securitized Loans		70,980			68,008			70,054			71,814			69,556			68,313			66,528
Seller’s Interest and Accrued Interest Receivable (b)		—			29,181			26,652			23,763			21,829			23,281			26,458

Managed Loans	$	130,366		$	126,937		$	126,179		$	125,619		$	125,158		$	123,739		$	124,215

CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,598		$	1,754		$	1,722		$	1,736		$	1,713		$	1,690		$	1,695
Net Charge-off Rate		4.88	%		5.56	%		5.49	%		5.48	%		5.43	%		5.48	%		5.53	%
12 Month Lagged		5.08			5.70			5.58			5.67			5.74			5.91			6.11
Delinquency ratios
30+ days		3.81	%		3.72	%		4.02	%		4.21	%		4.24	%		4.13	%		4.29	%
90+ days		1.75			1.73			1.95			1.99			1.95			1.92			2.00
Allowance for Loan Losses		2,273			1,677			1,674			1,671			1,606			1,616			1,667
Allowance for Loan Losses to Period-end Loans		3.77	%		5.79	%		5.74	%		5.66	%		5.20	%		5.14	%		5.44	%

(a)		Net accounts opened includes originations, purchases and sales.
(b)		Due to the decertification of seller’s interest effective July 1, 2004, seller’s interest will be reported in Loans on the Consolidated balance sheet in future reporting periods.

Page 20



JPMORGAN CHASE & CO. CARD RECONCILIATION OF REPORTED AND MANAGED DATA PRO FORMA COMBINED HISTORICAL LINE OF BUSINESS INFORMATION (in millions)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Data for the period	$	1,632		$	1,534		$	1,427		$	1,637		$	1,541		$	1,402		$	1,365
Securitization Adjustments		(848	)		(711	)		(749	)		(798	)		(795	)		(700	)		(730	)

Managed Credit Card Income	$	784		$	823		$	678		$	839		$	746		$	702		$	635

Other Income
Reported Data for the Period	$	47		$	77		$	105		$	66		$	45		$	96		$	36
Securitization Adjustments		(3	)		(45	)		(39	)		(31	)		(14	)		(24	)		(3	)

Managed Other Income	$	44		$	32		$	66		$	35		$	31		$	72		$	33

Net Interest Income
Reported Data for the Period	$	1,138		$	781		$	743		$	700		$	711		$	646		$	595
Securitization Adjustments		1,779			2,114			2,112			2,136			2,038			1,955			1,982

Managed Net Interest Income	$	2,917		$	2,895		$	2,855		$	2,836		$	2,749		$	2,601		$	2,577

Total Net Revenue (b)
Reported Data for the Period	$	2,843		$	2,418		$	2,300		$	2,430		$	2,323		$	2,170		$	2,029
Securitization Adjustments		928			1,358			1,324			1,307			1,229			1,231			1,249

Managed Total Net Revenue	$	3,771		$	3,776		$	3,624		$	3,737		$	3,552		$	3,401		$	3,278

Provision for Credit Losses
Reported Data for the Period	$	734		$	399		$	401		$	494		$	476		$	410		$	395
Securitization Adjustments		928			1,358			1,324			1,307			1,229			1,231			1,249

Managed Provision for Credit Losses	$	1,662		$	1,757		$	1,725		$	1,801		$	1,705		$	1,641		$	1,644

BALANCE SHEET — AVERAGE BALANCES
Total Average Assets
Reported Data for the Period	$	67,718		$	66,133		$	63,743		$	61,263		$	62,923		$	63,373		$	65,585
Securitization Adjustments		69,035			68,008			70,054			71,814			69,556			68,313			66,528

Managed Average Assets	$	136,753		$	134,141		$	133,797		$	133,077		$	132,479		$	131,686		$	132,113

CREDIT QUALITY STATISTICS
Net Charge-offs
Reported Net Charge-offs Data for the Period	$	670		$	396		$	398		$	429		$	484		$	459		$	446
Securitization Adjustments		928			1,358			1,324			1,307			1,229			1,231			1,249

Managed Net Charge-offs	$	1,598		$	1,754		$	1,722		$	1,736		$	1,713		$	1,690		$	1,695

(a)		JPMorgan Chase uses the concept of “managed receivables” to evaluate the credit performance of the underlying credit card loans, both sold and not sold: as the same borrower is continuing to use the credit card for ongoing charges, a borrower’s credit performance will impact both the receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding managed receivables, JPMorgan Chase treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire managed credit card portfolio. Operating results exclude the impact of credit card securitizations on revenue, the provision for credit losses, net charge-offs and receivables. Securitization does not change reported net income versus operating earnings; however, it does affect the classification of items on the Consolidated statement of income.
(b)		Includes Credit Card Income, Other Income and Net Interest Income.

Page 21



JPMORGAN CHASE & CO. COMMERCIAL BANKING PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions, except ratios)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR			Memo: Pro Forma
	2004			2004			2004			2003			2003			2003			2003			Adjustments (a)
REVENUE
Lending & Deposit Related Fees	$	162		$	168		$	162		$	169		$	188		$	188		$	180		$	—
Asset Management, Administration and Commissions		12			10			11			11			12			12			13			—
Other Income (b)		51			95			77			75			66			62			55			—

Subtotal		225			273			250			255			266			262			248			—
Net Interest Income		608			593			583			596			589			593			588			(12	)

TOTAL NET REVENUE		833			866			833			851			855			855			836			(12	)

Provision for Credit Losses		14			18			(86	)		33			84			42			52			—
NONINTEREST EXPENSE
Compensation Expense		176			167			158			152			162			147			150			—
Noncompensation Expense		286			286			274			281			280			297			291			(1	)
Amortization of Intangibles		18			18			18			18			19			19			19			18

TOTAL NONINTEREST EXPENSE		480			471			450			451			461			463			460			17

Operating Earnings before Income Tax Expense		339			377			469			367			310			350			324			(29	)
Income Tax Expense (Benefit)		124			143			180			142			119			134			124			(11	)

OPERATING EARNINGS	$	215		$	234		$	289		$	225		$	191		$	216		$	200		$	(18	)

SELECTED BALANCE SHEET (Average)
Total Assets	$	55,957		$	55,268		$	54,279		$	54,359		$	56,206		$	57,699		$	59,426
Loans		50,324			49,727			48,858			48,874			50,461			52,097			53,598
Deposits		64,796			67,695			64,324			59,875			58,259			55,034			54,646
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	(13	)	$	30		$	—		$	51		$	83		$	60		$	79
Nonperforming Loans		579			614			780			875			1,084			1,240			1,192
Net Charge-off Rate		(0.10	)%		0.24	%		—	%		0.41	%		0.65	%		0.46	%		0.60	%

Note: For additional information, see pages 57-62.

(a)		Reflects purchase accounting adjustments estimated for 3Q04 applied to each quarter prior to the acquisition of Bank One on July 1, 2004.
(b)		IB-related revenues are included in Other Income.

Page 22



JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR			Memo: Pro Forma
	2004			2004			2004			2003			2003			2003			2003			Adjustments (a)
REVENUE
Lending & Deposit Related Fees	$	218		$	243		$	245		$	243		$	238		$	229		$	227		$	—
Asset Management, Administration and Commissions		600			645			601			551			522			509			473			—
Other Income		103			109			85			123			75			73			70			—

Subtotal		921			997			931			917			835			811			770			—
Net Interest Income		418			371			349			353			364			362			360			—

TOTAL NET REVENUE		1,339			1,368			1,280			1,270			1,199			1,173			1,130			—

Provision for Credit Losses		—			3			1			3			2			4			2			—
Credit Reimbursement to IB (b)		(43	)		(43	)		(43	)		(54	)		(54	)		(54	)		(54	)		—
NONINTEREST EXPENSE
Compensation Expense		472			466			470			452			437			431			428			—
Noncompensation Expense		654			678			599			540			499			526			469			—
Amortization of Intangibles		30			31			32			25			22			22			22			16

TOTAL NONINTEREST EXPENSE		1,156			1,175			1,101			1,017			958			979			919			16

Operating Earnings before Income Tax Expense		140			147			135			196			185			136			155			(16	)
Income Tax Expense (Benefit)		44			44			42			67			60			42			49			(6	)

OPERATING EARNINGS	$	96		$	103		$	93		$	129		$	125		$	94		$	106		$	(10	)

REVENUE BY BUSINESS
Treasury Services (c)	$	629		$	584		$	566		$	526		$	517		$	500		$	522
Investor Services		404			470			413			396			383			372			351
Institutional Trust Services		306			314			301			348			299			301			257

TOTAL NET REVENUE	$	1,339		$	1,368		$	1,280		$	1,270		$	1,199		$	1,173		$	1,130

MEMO
Treasury Services Firmwide Revenue (c)	$	1,205		$	1,164		$	1,131		$	1,095		$	1,112		$	1,097		$	1,084

Note: For additional information, see pages 63-68.

(a)		Reflects purchase accounting adjustments estimated for 3Q04 applied to each quarter prior to the acquisition of Bank One on July 1, 2004.
(b)		Management has charged T&SS a credit reimbursement, which is the pre-tax amount of earnings, less cost of capital, related to certain exposures managed within the IB credit portfolio on behalf of clients shared with T&SS.
(c)		T&SS firmwide revenues include T&SS revenues recorded in the other lines of business. Revenues associated with Treasury Services customers who are also customers of the Commercial Bank, Consumer & Small Business and Asset and Wealth Management lines of business are reported in these other lines of business and are excluded from Treasury Services as follows:


	3QTR		2QTR		1QTR		4QTR		3QTR		2QTR		1QTR		Memo: Pro Forma
($'s in millions)	2004		2004		2004		2003		2003		2003		2003		Adjustments (a)
Treasury Services Revenue Reported in Commercial Banking	$	499	$	485	$	476	$	474	$	483	$	468	$	453
Treasury Services Revenue Reported in Other Lines of Business		77		95		89		95		112		129		109

Page 23



JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES PRO FORMA COMBINED HISTORICAL LINE OF BUSINESS INFORMATION (in millions, except ratios and where otherwise noted)


			PRO FORMA COMBINED
	3QTR		2QTR		1QTR		4QTR		3QTR		2QTR		1QTR
	2004		2004		2004		2003		2003		2003		2003
BUSINESS METRICS
Assets under Custody (in billions)	$	8,261	$	7,980	$	8,001	$	7,597	$	6,926	$	6,777	$	6,269
SELECTED BALANCE SHEET (Average)
Total Assets	$	24,831	$	26,745	$	25,141	$	26,610	$	24,853	$	25,719	$	22,578
Loans		8,457		8,272		7,524		7,775		7,865		7,874		5,733
Deposits (a)		138,700		134,822		124,824		115,578		115,701		108,257		104,440

(a)

Includes DDA, money markets and foreign deposits.

Page 24



JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions, except ratios)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR			Memo: Pro Forma
	2004			2004			2004			2003			2003			2003			2003			Adjustments (a)
REVENUE
Lending & Deposit Related Fees	$	10		$	9		$	10		$	11		$	11		$	10		$	12		$	—
Asset Management, Administration and Commissions		859			886			911			844			790			723			715			—
Other Income		55			49			52			89			53			54			17			—

Subtotal		924			944			973			944			854			787			744			—
Net Interest Income		269			241			240			245			242			232			227			(5	)

TOTAL NET REVENUE		1,193			1,185			1,213			1,189			1,096			1,019			971			(5	)

Provision for Credit Losses		1			(5	)		9			37			(3	)		6			8			—
NONINTEREST EXPENSE
Compensation Expense		452			448			428			409			424			400			393			—
Noncompensation Expense		409			423			394			413			374			365			368			—
Amortization of Intangibles		23			23			23			22			22			22			22			20

TOTAL NONINTEREST EXPENSE		884			894			845			844			820			787			783			20

Operating Earnings before Income Tax Expense		308			296			359			308			279			226			180			(25	)
Income Tax Expense (Benefit)		111			106			130			109			101			82			72			(9	)

OPERATING EARNINGS	$	197		$	190		$	229		$	199		$	178		$	144		$	108		$	(16	)

REVENUE BY CLIENT SEGMENT
Institutional	$	287		$	269		$	281		$	264		$	246		$	222		$	236
Private Bank		383			388			394			406			386			369			354
Private Client Services		251			241			254			237			231			228			224
Retail		272			287			284			282			233			200			157

Total Net Revenue	$	1,193		$	1,185		$	1,213		$	1,189		$	1,096		$	1,019		$	971

SELECTED BALANCE SHEET (Average)
Total Assets	$	39,882		$	40,223		$	40,171		$	38,765		$	37,834		$	38,471		$	38,279
Loans		25,408			24,943			24,130			23,618			22,751			23,353			23,617
Deposits		38,520			36,552			34,792			32,722			31,372			30,151			29,246
CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	6		$	6		$	53		$	1		$	2		$	17		$	1
Nonperforming Loans		125			144			159			215			196			221			254
Net Charge-off Rate		0.09	%		0.10	%		0.88	%		0.02	%		0.03	%		0.29	%		0.02	%

Note: For additional information, see pages 69-74.

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each quarter prior to the acquisition of Bank One on July 1, 2004.

Page 25



JPMORGAN CHASE & CO. ASSET & WEALTH MANAGEMENT PRO FORMA COMBINED HISTORICAL LINE OF BUSINESS INFORMATION (in billions)


			PRO FORMA COMBINED
	3QTR			2QTR			1QTR		4QTR			3QTR		2QTR			1QTR
	2004			2004			2004		2003			2003		2003			2003
Asset Class
Liquidity	$	210		$	216		$	228	$	228		$	215	$	215		$	215
Fixed Income		174			180			185		181			183		173			165
Equities, Balanced and Other		351			355			359		335			304		293			277

Assets under Management		735			751			772		744			702		681			657
Custody / Brokerage / Administration / Deposits		434			428			415		397			385		366			301

Total Assets under Supervision	$	1,169		$	1,179		$	1,187	$	1,141		$	1,087	$	1,047		$	958

Client Segment
Institutional
Assets under Management	$	426		$	436		$	449	$	436		$	417	$	383		$	370
Custody / Brokerage / Administration / Deposits		170			170			164		160			156		148			141

Assets under Supervision		596			606			613		596			573		531			511
Private Bank
Assets under Management		136			139			141		138			132		130			125
Custody / Brokerage / Administration / Deposits		143			138			135		128			127		121			109

Assets under Supervision		279			277			276		266			259		251			234
Private Client Services
Assets under Management		51			51			52		52			50		50			48
Custody / Brokerage / Administration / Deposits		40			40			39		38			36		36			34

Assets under Supervision		91			91			91		90			86		86			82
Retail
Assets under Management		122			125			129		117			103		118			114
Custody / Brokerage / Administration / Deposits		81			80			78		72			66		61			17

Assets under Supervision		203			205			207		189			169		179			131

Total Assets under Supervision	$	1,169		$	1,179		$	1,187	$	1,141		$	1,087	$	1,047		$	958

Geographic Region
Americas
Assets under Management	$	531		$	546		$	560	$	548		$	526	$	521		$	512
Custody / Brokerage / Administration / Deposits		404			396			385		362			352		335			273

Assets under Supervision		935			942			945		910			878		856			785
International
Assets under Management		204			205			212		196			176		161			146
Custody / Brokerage / Administration / Deposits		30			32			30		35			33		30			27

Assets under Supervision		234			237			242		231			209		191			173

Total Assets under Supervision	$	1,169		$	1,179		$	1,187	$	1,141		$	1,087	$	1,047		$	958

Assets Under Supervision Rollforward
Beginning Balance	$	1,179		$	1,187		$	1,141	$	1,087		$	1,047	$	958		$	974
Net Assets Flows		(7	)		—			14		(1	)		11		(8	)		(11	)
Market / Other Impact		(3	)		(8	)		32		55			29		97			(5	)

Ending Balance	$	1,169		$	1,179		$	1,187	$	1,141		$	1,087	$	1,047		$	958

Page 26



JPMORGAN CHASE & CO. CORPORATE PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR			Memo: Pro Forma
	2004			2004			2004			2003			2003			2003			2003			Adjustments (a)
REVENUE
Securities / Private Equity Gains (Losses)	$	347		$	343		$	561		$	(9	)	$	405		$	528		$	207		$	—
Other Income		67			(11	)		(94	)		(40	)		(145	)		(87	)		(38	)		—

Subtotal		414			332			467			(49	)		260			441			245			—
Net Interest Income		(500	)		(234	)		(277	)		(178	)		(176	)		(120	)		(162	)		277

TOTAL NET REVENUE		(86	)		98			190			(227	)		84			321			83			277

Provision for Credit Losses		(1	)		(27	)		(84	)		(48	)		(1	)		101			72			—
NONINTEREST EXPENSE
Compensation Expense		786			751			799			625			681			776			812			35
Noncompensation Expense		1,148			1,200			1,201			1,230			1,084			1,127			1,069			(10	)
Net Expenses Allocated to Other Businesses		(1,426	)		(1,463	)		(1,452	)		(1,379	)		(1,396	)		(1,424	)		(1,448	)		—
Amortization of Intangibles		(2	)		—			(2	)		(2	)		(1	)		(1	)		—			—

TOTAL NONINTEREST EXPENSE		506			488			546			474			368			478			433			25

Operating Earnings before Income Tax Expense		(591	)		(363	)		(272	)		(653	)		(283	)		(258	)		(422	)		252
Income Tax Expense (Benefit)		(372	)		(260	)		(257	)		(446	)		(232	)		(188	)		(235	)		154

OPERATING EARNINGS	$	(219	)	$	(103	)	$	(15	)	$	(207	)	$	(51	)	$	(70	)	$	(187	)	$	98

Treasury Securities Gains (Losses) (b)	$	109		$	(54	)	$	226		$	(267	)	$	107		$	477		$	423

Treasury Investment Portfolio		65,508			85,460			89,248			86,097			94,014			99,029			97,926

Private Equity Gains (Losses)
Direct Investments	$	219		$	370		$	310		$	150		$	287		$	155		$	(118	)
Third-Party Fund Investments		16			22			23			72			28			(113	)		(101	)

Total Private Equity Gains (Losses)	$	235		$	392		$	333		$	222		$	315		$	42		$	(219	)

Private Equity Portfolio information
Direct Investments
Public Securities
Carrying Value	$	958		$	936		$	809		$	741		$	774		$	660		$	538
Cost		675			623			578			509			633			604			697
Quoted Public Value		1,415			1,431			1,239			1,109			1,182			967			770
Private Direct Securities
Carrying Value		6,011			6,140			6,424			6,980			6,945			6,704			6,480
Cost		7,551			7,757			7,924			8,429			8,488			8,305			8,045
Third-Party Fund Investments
Carrying Value		1,138			1,559			1,803			1,896			2,142			2,256			2,436
Cost		1,761			2,161			2,447			2,614			2,912			3,016			3,289

Total Private Equity Portfolio — Carrying Value	$	8,107		$	8,635		$	9,036		$	9,617		$	9,861		$	9,620		$	9,454

Total Private Equity Portfolio — Cost	$	9,987		$	10,541		$	10,949		$	11,552		$	12,033		$	11,925		$	12,031

Note: For additional information, see pages 75-80.

(a)		Reflects purchase accounting adjustments estimated for 3Q04 applied to each quarter prior to the acquisition of Bank One on July 1, 2004.
(b)		Excludes gains/losses on securities used to manage the risk associated with mortgage servicing rights.

Page 27



JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL CREDIT-RELATED INFORMATION (in millions)


			PRO FORMA COMBINED
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
	2004		2004		2004		2003		2003		2003		2003
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	99,451	$	102,234	$	101,829	$	106,477	$	113,512	$	112,917	$	113,753
Loans — Non-U.S.		32,893		33,151		34,376		33,832		33,290		38,871		37,204

TOTAL WHOLESALE LOANS — REPORTED		132,344		135,385		136,205		140,309		146,802		151,788		150,957
CONSUMER (b)
Home Finance		123,403		120,100		111,318		110,716		123,385		112,422		104,267
Auto and Education Finance		62,587		62,671		64,784		63,754		63,375		62,007		62,664
Small Business and Other Consumer		15,126		13,835		13,665		13,343		13,476		14,323		13,661
Credit Card Receivables — Reported		60,241		28,981		29,187		29,543		30,873		31,437		30,669

TOTAL CONSUMER LOANS — REPORTED		261,357		225,587		218,954		217,356		231,109		220,189		211,261
TOTAL LOANS — REPORTED		393,701		360,972		355,159		357,665		377,911		371,977		362,218
Credit Card Securitizations		71,256		99,929		96,232		99,149		94,363		94,035		92,838

TOTAL LOANS — MANAGED		464,957		460,901		451,391		456,814		472,274		466,012		455,056
Derivative Receivables		57,795		55,085		63,898		88,959		89,390		98,945		91,206
Other Receivables		—		108		108		108		108		108		108

TOTAL CREDIT-RELATED ASSETS		522,752		516,094		515,397		545,881		561,772		565,065		546,370
Wholesale Lending-Related Commitments		315,946		321,615		333,655		324,030		348,631		364,091		365,080

TOTAL	$	838,698	$	837,709	$	849,052	$	869,911	$	910,403	$	929,156	$	911,450

Memo: Total by Category
Total Wholesale Exposure (c)	$	506,085	$	512,193	$	533,866	$	553,406	$	584,931	$	614,932	$	607,351
Total Consumer Managed Loans (d) (e)		332,613		325,516		315,186		316,505		325,472		314,224		304,099

Total	$	838,698	$	837,709	$	849,052	$	869,911	$	910,403	$	929,156	$	911,450

(a)		Includes Investment Bank, Treasury & Securities Services, Asset & Wealth Management and Commercial Banking.
(b)		Includes Retail Financial Services and Card Services.
(c)		Represents Total Wholesale Loans, Derivative Receivables, Other Receivables and Wholesale Lending-Related Commitments.
(d)		Excludes consumer lending-related commitments.
(e)		Represents Total Consumer Loans plus Credit Card Securitizations.

Page 28



JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratios)


				PRO FORMA COMBINED
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
	2004			2004			2004			2003			2003			2003			2003
NONPERFORMING ASSETS AND RATIOS
WHOLESALE
Loans — U.S.	$	1,405		$	1,382		$	1,786		$	2,108		$	2,804		$	3,488		$	3,755
Loans — Non-U.S.		378			726			856			973			1,322			1,223			1,358

TOTAL WHOLESALE LOANS REPORTED (Excluding Purchased HFS Wholesale Loans)		1,783			2,108			2,642			3,081			4,126			4,711			5,113
CONSUMER
Home Finance		789			750			944			1,103			1,197			1,207			1,271
Auto Finance		211			221			220			264			292			280			304
Small Business and Other Consumer		308			311			319			325			362			351			335
Credit Card Receivables — Reported		9			9			10			11			12			13			14

TOTAL CONSUMER LOANS REPORTED		1,317			1,291			1,493			1,703			1,863			1,851			1,924
TOTAL LOANS REPORTED (Excluding Purchased HFS Wholesale Loans)		3,100			3,399			4,135			4,784			5,989			6,562			7,037
Derivative Receivables		238			223			240			253			260			276			277
Other Receivables		—			108			108			108			108			108			108
Assets Acquired in Loan Satisfactions		299			320			369			422			430			474			480

TOTAL NONPERFORMING ASSETS (Excluding Purchased HFS Wholesale Loans)	$	3,637		$	4,050		$	4,852		$	5,567		$	6,787		$	7,420		$	7,902

PURCHASED HELD FOR SALE WHOLESALE LOANS (a)	$	355		$	374		$	331		$	22		$	21		$	1		$	—
TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.79	%		0.94	%		1.16	%		1.34	%		1.58	%		1.76	%		1.94	%

(a)

Represents distressed wholesale loans purchased as part of the IB’s proprietary investing activities.

Page 29



JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratios)


				PRO FORMA COMBINED
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
	2004			2004			2004			2003			2003			2003			2003
NET CHARGE-OFFS
Wholesale Loans	$	(24	)	$	41		$	78		$	57		$	348		$	354		$	412
Consumer (Excluding Card)		219			176			236			969			318			285			303
Credit Card Receivables — Reported		670			396			398			429			484			459			446

Total Loans — Reported		865			613			712			1,455			1,150			1,098			1,161
Credit Card Securitizations		928			1,358			1,324			1,307			1,229			1,231			1,249

Total Loans — Managed	$	1,793		$	1,971		$	2,036		$	2,762		$	2,379		$	2,329		$	2,410

NET CHARGE-OFF RATES - ANNUALIZED
Wholesale Loans (a)		(0.08	)%		0.13	%		0.25	%		0.17	%		0.96	%		1.03	%		1.15	%
Consumer (Excluding Card) (b)		0.47			0.40			0.56			2.26			0.77			0.72			0.80
Credit Card Receivables — Reported		4.49			5.35			5.43			5.67			5.69			5.73			5.79
Total Loans — Reported (a) (b)		0.93			0.74			0.88			1.71			1.33			1.34			1.43
Credit Card Securitizations		5.20			5.62			5.51			5.43			5.34			5.39			5.45
Total Loans — Managed (a) (b)		1.62			1.85			1.94			2.53			2.18			2.23			2.31
Memo: Credit Card — Managed		4.88			5.56			5.49			5.48			5.43			5.48			5.53

(a)		Loans held for sale were $7,281 million, $5,259 million, $5,742 million, $4,279 million, $3,778 million, $4,811 million and $3,935 million as of September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the net charge-off rates.
(b)		Loans held for sale were $14,479 million, $19,818 million, $21,165 million, $25,998 million, $32,376 million, $28,777 million and $25,438 million as of September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the net charge-off rates.

Page 30



JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratios)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
CHANGE IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	7,090		$	7,443		$	7,995		$	8,660		$	9,049		$	9,141		$	9,273
Net Charge-Offs		(865	)		(613	)		(712	)		(1,455	)		(1,150	)		(1,098	)		(1,161	)
Provision for Loan Losses		1,395			285			162			790			758			1,008			1,165
Other (a)		(127	)		(25	)		(2	)		—			3			(2	)		(136	)

Ending Balance (b)	$	7,493		$	7,090		$	7,443		$	7,995		$	8,660		$	9,049		$	9,141

CHANGE IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	768		$	805		$	814		$	796		$	920		$	1,036		$	965
Provision for Lending-Related Commitments		(226	)		(37	)		(9	)		18			(123	)		(116	)		70
Other		(1	)		—			—			—			(1	)		—			1

Ending Balance (b)	$	541		$	768		$	805		$	814		$	796		$	920		$	1,036

ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Total Wholesale	$	3,456		$	3,506		$	3,860		$	4,387		$	4,831		$	5,267		$	5,398
Total Consumer		4,037			3,584			3,583			3,608			3,829			3,782			3,743

Total Allowance for Loan Losses		7,493			7,090			7,443			7,995			8,660			9,049			9,141
ALLOWANCE FOR LENDING-RELATED COMMITMENTS		541			768			805			814			796			920			1,036

Total Allowance for Credit Losses	$	8,034		$	7,858		$	8,248		$	8,809		$	9,456		$	9,969		$	10,177

Wholesale Allowance for Loan Losses to Total Wholesale Loans (c)		2.76	%		2.69	%		2.96	%		3.23	%		3.38	%		3.58	%		3.67	%
Consumer Allowance for Loan Losses to Total Consumer Loans (d)		1.62			1.74			1.81			1.89			1.93			1.98			2.01
Allowance for Loan Losses to Total Loans (c) (d)		2.01			2.11			2.27			2.44			2.53			2.67			2.75
Allowance for Loan Losses to Total Nonperforming Loans (e)		248			219			192			179			149			139			131

(a)		First quarter 2003 includes $138 million related to the transfer of the allowance for accrued interest and fees on securitized credit card loans.
(b)		Not restated for the adoption of the combined Firm methodology for estimating the allowance for credit losses.
(c)		Loans held for sale were $7,281 million, $5,259 million, $5,742 million, $4,279 million, $3,778 million, $4,811 million and $3,935 million as of September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(d)		Loans held for sale were $12,816 million, $19,818 million, $21,165 million, $25,998 million, $32,376 million, $28,777 million and $25,438 million as of September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(e)		Nonperforming loans include loans held for sale of $78 million, $155 million, $263 million, $319 million, $181 million, $55 million and $79 million as of September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.

Page 31



JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratios)


				PRO FORMA COMBINED
	3QTR			2QTR			1QTR			4QTR			3QTR			2QTR			1QTR
	2004			2004			2004			2003			2003			2003			2003
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	(148	)	$	(283	)	$	(297	)	$	(389	)	$	(175	)	$	12		$	277
Commercial Banking		10			22			(78	)		10			83			101			30
Treasury & Securities Services		—			3			1			3			2			3			2
Asset & Wealth Management		1			(4	)		8			37			(3	)		7			8
Corporate		(1	)		(27	)		(83	)		(48	)		(1	)		101			64

Total Wholesale		(138	)		(289	)		(449	)		(387	)		(94	)		224			381
Retail Financial Services		239			175			210			683			376			374			389
Card Services		734			399			401			494			476			410			395

Total Consumer		973			574			611			1,177			852			784			784
Accounting Policy Conformity		560			—			—			—			—			—			—


Total Provision for Loan Losses		1,395			285			162			790			758			1,008			1,165

LENDING-RELATED COMMITMENTS
Investment Bank	$	(3	)		(32	)		(6	)		(7	)		(123	)		(57	)		40
Commercial Banking		4			(4	)		(8	)		23			1			(59	)		22
Treasury & Securities Services		—			—			—			—			—			1			—
Asset & Wealth Management		—			(1	)		1			—			—			(1	)		—
Corporate		—			—			(1	)		—			—			—			8

Total Wholesale		1			(37	)		(14	)		16			(122	)		(116	)		70
Retail Financial Services		—			—			5			2			(1	)		—			—
Card Services		—			—			—			—			—			—			—

Total Consumer		—			—			5			2			(1	)		—			—
Accounting Policy Conformity		(227	)		—			—			—			—			—			—


Total Provision for Lending-Related Commitments		(226	)		(37	)		(9	)		18			(123	)		(116	)		70

PROVISION FOR CREDIT LOSSES
Investment Bank		(151	)		(315	)		(303	)		(396	)		(298	)		(45	)		317
Commercial Banking		14			18			(86	)		33			84			42			52
Treasury & Securities Services		—			3			1			3			2			4			2
Asset & Wealth Management		1			(5	)		9			37			(3	)		6			8
Corporate		(1	)		(27	)		(84	)		(48	)		(1	)		101			72

Total Wholesale		(137	)		(326	)		(463	)		(371	)		(216	)		108			451
Retail Financial Services		239			175			215			685			375			374			389
Card Services		734			399			401			494			476			410			395

Total Consumer		973			574			616			1,179			851			784			784
Accounting Policy Conformity		333			—			—			—			—			—			—


Total Provision for Credit Losses		1,169			248			153			808			635			892			1,235

Securitized Credit Losses		928			1,358			1,324			1,307			1,229			1,231			1,249
Accounting Policy Conformity		(333	)		—			—			—			—			—			—

Managed Provision for Credit Losses	$	1,764		$	1,606		$	1,477		$	2,115		$	1,864		$	2,123		$	2,484

Page 32

(JPMORGANCHASE LOGO)

APPENDIX


JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME — OPERATING BASIS (in millions)


	Second Quarter 2004
	Historical		Historical			Total Historical		Pro Forma			Pro Forma
	JPMC		Bank One			Combined		Adjustments (a)			Combined
REVENUE
Investment Banking Fees	$	893	$	46		$	939	$	—		$	939
Trading Revenue		1,312		95			1,407		—			1,407
Lending & Deposit Related Fees		412		545			957		—			957
Asset Management, Administration and Commissions		1,770		486			2,256		2			2,258
Securities / Private Equity Gains (Losses)		460		(57	)		403		—			403
Mortgage Fees and Related Income		338		23			361		(1	)		360
Credit Card Income		324		634			958		17			975
Other Income		215		170			385		4			389

Subtotal		5,724		1,942			7,666		22			7,688

Interest Income		6,013		4,593			10,606		(45	)		10,561
Interest Expense		2,620		1,182			3,802		(190	)		3,612

Net Interest Income		3,393		3,411			6,804		145			6,949



TOTAL NET REVENUE		9,117		5,353			14,470		167			14,637


Managed Provision for Credit Losses		689		917			1,606		—			1,606

NONINTEREST EXPENSE
Compensation Expense		2,943		1,249			4,192		35			4,227
Occupancy Expense		440		170			610		(14	)		596
Technology and Communications Expense		786		176			962		(2	)		960
Professional & Outside Services		752		354			1,106		—			1,106
Marketing		202		319			521		—			521
Other Expense		511		535			1,046		(9	)		1,037
Amortization of Intangibles		79		34			113		279			392

TOTAL NONINTEREST EXPENSE		5,713		2,837			8,550		289			8,839


Operating Earnings before Income Tax Expense		2,715		1,599			4,314		(122	)		4,192
Income Tax Expense (Benefit)		909		482			1,391		14			1,405

OPERATING EARNINGS	$	1,806	$	1,117		$	2,923	$	(136	)	$	2,787

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 33


JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME — OPERATING BASIS (in millions)


	First Quarter 2004
	Historical		Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Bank One		Combined		Adjustments (a)			Combined
REVENUE
Investment Banking Fees	$	692	$	52	$	744	$	—		$	744
Trading Revenue		2,296		57		2,353		—			2,353
Lending & Deposit Related Fees		414		527		941		—			941
Asset Management, Administration and Commissions		1,771		522		2,293		2			2,295
Securities / Private Equity Gains (Losses)		432		155		587		—			587
Mortgage Fees and Related Income		259		—		259		(1	)		258
Credit Card Income		279		511		790		17			807
Other Income		93		202		295		4			299

Subtotal		6,236		2,026		8,262		22			8,284

Interest Income		5,888		4,701		10,589		(45	)		10,544
Interest Expense		2,640		1,247		3,887		(190	)		3,697

Net Interest Income		3,248		3,454		6,702		145			6,847



TOTAL NET REVENUE		9,484		5,480		14,964		167			15,131


Managed Provision for Credit Losses		488		989		1,477		—			1,477

NONINTEREST EXPENSE
Compensation Expense		3,302		1,230		4,532		35			4,567
Occupancy Expense		431		177		608		(14	)		594
Technology and Communications Expense		819		172		991		(2	)		989
Professional & Outside Services		816		381		1,197		—			1,197
Marketing		199		290		489		—			489
Other Expense		447		447		894		(9	)		885
Amortization of Intangibles		79		33		112		279			391

TOTAL NONINTEREST EXPENSE		6,093		2,730		8,823		289			9,112


Operating Earnings before Income Tax Expense		2,903		1,761		4,664		(122	)		4,542
Income Tax Expense (Benefit)		973		528		1,501		14			1,515

OPERATING EARNINGS	$	1,930	$	1,233	$	3,163	$	(136	)	$	3,027

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 34


JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME — OPERATING BASIS (in millions)


	Fourth Quarter 2003
	Historical		Historical			Total Historical		Pro Forma			Pro Forma
	JPMC		Bank One			Combined		Adjustments (a)			Combined
REVENUE
Investment Banking Fees	$	846	$	79		$	925	$	—		$	925
Trading Revenue		1,272		23			1,295		—			1,295
Lending & Deposit Related Fees		451		502			953		—			953
Asset Management, Administration and Commissions		1,586		504			2,090		2			2,092
Securities / Private Equity Gains (Losses)		192		(159	)		33		—			33
Mortgage Fees and Related Income		149		23			172		(1	)		171
Credit Card Income		317		630			947		17			964
Other Income		232		77			309		4			313

Subtotal		5,045		1,679			6,724		22			6,746

Interest Income		6,117		4,620			10,737		(45	)		10,692
Interest Expense		2,594		1,232			3,826		(190	)		3,636

Net Interest Income		3,523		3,388			6,911		145			7,056



TOTAL NET REVENUE		8,568		5,067			13,635		167			13,802


Managed Provision for Credit Losses		601		1,514			2,115		—			2,115

NONINTEREST EXPENSE
Compensation Expense		2,508		1,148			3,656		35			3,691
Occupancy Expense		482		173			655		(14	)		641
Technology and Communications Expense		756		179			935		(2	)		933
Professional & Outside Services		777		376			1,153		—			1,153
Marketing		200		264			464		—			464
Other Expense		461		579			1,040		(9	)		1,031
Amortization of Intangibles		74		38			112		279			391

TOTAL NONINTEREST EXPENSE		5,258		2,757			8,015		289			8,304


Operating Earnings before Income Tax Expense		2,709		796			3,505		(122	)		3,383
Income Tax Expense (Benefit)		845		196			1,041		14			1,055

OPERATING EARNINGS (b)	$	1,864	$	600		$	2,464	$	(136	)	$	2,328

(a)		Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.
(b)		Excludes the net gain on the sale of the Bank One corporate trust business to JPMorgan Chase of $597 million (pre-tax) or $380 million (after-tax).

Page 35


JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME — OPERATING BASIS (in millions)


	Third Quarter 2003
	Historical		Historical			Total Historical		Pro Forma			Pro Forma
	JPMC		Bank One			Combined		Adjustments (a)			Combined
REVENUE
Investment Banking Fees	$	649	$	93		$	742	$	—		$	742
Trading Revenue		1,278		23			1,301		—			1,301
Lending & Deposit Related Fees		456		503			959		—			959
Asset Management, Administration and Commissions		1,518		466			1,984		2			1,986
Securities / Private Equity Gains (Losses)		284		91			375		—			375
Mortgage Fees and Related Income		15		49			64		(1	)		63
Credit Card Income		272		574			846		17			863
Other Income		182		(116	)		66		4			70

Subtotal		4,654		1,683			6,337		22			6,359

Interest Income		6,238		4,524			10,762		(45	)		10,717
Interest Expense		2,641		1,247			3,888		(190	)		3,698

Net Interest Income		3,597		3,277			6,874		145			7,019



TOTAL NET REVENUE		8,251		4,960			13,211		167			13,378


Managed Provision for Credit Losses		694		1,170			1,864		—			1,864

NONINTEREST EXPENSE
Compensation Expense		2,631		1,144			3,775		35			3,810
Occupancy Expense		391		175			566		(14	)		552
Technology and Communications Expense		719		178			897		(2	)		895
Professional & Outside Services		703		350			1,053		—			1,053
Marketing		179		253			432		—			432
Other Expense		431		396			827		(9	)		818
Amortization of Intangibles		73		35			108		279			387

TOTAL NONINTEREST EXPENSE		5,127		2,531			7,658		289			7,947


Operating Earnings before Income Tax Expense		2,430		1,259			3,689		(122	)		3,567
Income Tax Expense (Benefit)		802		377			1,179		14			1,193

OPERATING EARNINGS	$	1,628	$	882		$	2,510	$	(136	)	$	2,374

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 36


JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME- OPERATING BASIS (in millions)


	Second Quarter 2003
	Historical		Historical			Total Historical		Pro Forma			Pro Forma
	JPMC		Bank One			Combined		Adjustments (a)			Combined
REVENUE
Investment Banking Fees	$	779	$	120		$	899	$	—		$	899
Trading Revenue		2,025		(77	)		1,948		—			1,948
Lending & Deposit Related Fees		411		483			894		—			894
Asset Management, Administration and Commissions		1,427		451			1,878		2			1,880
Securities / Private Equity Gains (Losses)		739		154			893		—			893
Mortgage Fees and Related Income		317		5			322		(1	)		321
Credit Card Income		273		539			812		17			829
Other Income		29		113			142		4			146

Subtotal		6,000		1,788			7,788		22			7,810

Interest Income		6,349		4,462			10,811		(45	)		10,766
Interest Expense		2,801		1,327			4,128		(190	)		3,938

Net Interest Income		3,548		3,135			6,683		145			6,828



TOTAL NET REVENUE		9,548		4,923			14,471		167			14,638


Managed Provision for Credit Losses		915		1,208			2,123		—			2,123

NONINTEREST EXPENSE
Compensation Expense		3,151		1,165			4,316		35			4,351
Occupancy Expense		543		166			709		(14	)		695
Technology and Communications Expense		732		173			905		(2	)		903
Professional & Outside Services		718		343			1,061		—			1,061
Marketing		167		215			382		—			382
Other Expense		482		401			883		(9	)		874
Amortization of Intangibles		73		32			105		279			384

TOTAL NONINTEREST EXPENSE		5,866		2,495			8,361		289			8,650


Operating Earnings before Income Tax Expense		2,767		1,220			3,987		(122	)		3,865
Income Tax Expense (Benefit)		940		365			1,305		14			1,319

OPERATING EARNINGS	$	1,827	$	855		$	2,682	$	(136	)	$	2,546

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 37


JPMORGAN CHASE & CO. PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME — OPERATING BASIS (in millions)


	First Quarter 2003
	Historical		Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Bank One		Combined		Adjustments (a)			Combined
REVENUE
Investment Banking Fees	$	616	$	80	$	696	$	—		$	696
Trading Revenue		1,981		5		1,986		—			1,986
Lending & Deposit Related Fees		409		452		861		—			861
Asset Management, Administration and Commissions		1,375		473		1,848		2			1,850
Securities / Private Equity Gains (Losses)		264		72		336		—			336
Mortgage Fees and Related Income		442		9		451		(1	)		450
Credit Card Income		225		503		728		17			745
Other Income		87		70		157		4			161

Subtotal		5,399		1,664		7,063		22			7,085

Interest Income		6,531		4,531		11,062		(45	)		11,017
Interest Expense		3,043		1,370		4,413		(190	)		4,223

Net Interest Income		3,488		3,161		6,649		145			6,794



TOTAL NET REVENUE		8,887		4,825		13,712		167			13,879


Managed Provision for Credit Losses		1,200		1,284		2,484		—			2,484

NONINTEREST EXPENSE
Compensation Expense		3,097		1,138		4,235		35			4,270
Occupancy Expense		496		164		660		(14	)		646
Technology and Communications Expense		637		159		796		(2	)		794
Professional & Outside Services		677		324		1,001		—			1,001
Marketing		164		226		390		—			390
Other Expense		420		338		758		(9	)		749
Amortization of Intangibles		74		32		106		279			385

TOTAL NONINTEREST EXPENSE		5,565		2,381		7,946		289			8,235


Operating Earnings before Income Tax Expense		2,122		1,160		3,282		(122	)		3,160
Income Tax Expense (Benefit)		722		342		1,064		14			1,078

OPERATING EARNINGS	$	1,400	$	818	$	2,218	$	(136	)	$	2,082

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 38

(JP MORGAN CHASE LOGO)

INVESTMENT BANK


JPMORGAN CHASE & CO. INVESTMENT BANK PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2004
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Investment Banking Fees:
Advisory	$	268		$	269		$	—		$	269
Equity Underwriting		221			223			—			223
Debt Underwriting		402			445			—			445

Total Investment Banking Fees		891			937			—			937

Trading-Related Revenue:
Fixed Income and Other		1,293			1,416			—			1,416
Equities		(57	)		(88	)		—			(88	)

Total Trading-Related Revenue		1,236			1,328			—			1,328

Lending & Deposit Related Fees		112			172			—			172
Asset Management, Administration and Commissions		348			357			—			357
Other Income		45			128			—			128

Subtotal		2,632			2,922			—			2,922
Net Interest Income		307			474			1			475

TOTAL NET REVENUE		2,939			3,396			1			3,397


Provision for Credit Losses		(128	)		(315	)		—			(315	)
Credit Reimbursement from T&SS		2			43			—			43

NONINTEREST EXPENSE
Compensation Expense		1,126			1,240			—			1,240
Noncompensation Expense		930			940			(5	)		935
Amortization of Intangibles		—			—			—			—

TOTAL NONINTEREST EXPENSE		2,056			2,180			(5	)		2,175


Operating Earnings before Income Tax Expense		1,013			1,574			6			1,580
Income Tax Expense (Benefit)		369			562			2			564

OPERATING EARNINGS	$	644		$	1,012		$	4		$	1,016

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 39


JPMORGAN CHASE & CO. INVESTMENT BANK PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2004
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Investment Banking Fees:
Advisory	$	147		$	147		$	—		$	147
Equity Underwriting		177			179			—			179
Debt Underwriting		366			417			—			417

Total Investment Banking Fees		690			743			—			743

Trading-Related Revenue:
Fixed Income and Other		1,885			1,994			—			1,994
Equities		391			333			—			333

Total Trading-Related Revenue		2,276			2,327			—			2,327

Lending & Deposit Related Fees		96			155			—			155
Asset Management, Administration and Commissions		393			405			—			405
Other Income		14			105			—			105

Subtotal		3,469			3,735			—			3,735
Net Interest Income		295			471			1			472

TOTAL NET REVENUE		3,764			4,206			1			4,207

Provision for Credit Losses		(188	)		(303	)		—			(303	)
Credit Reimbursement from T&SS		2			43			—			43

NONINTEREST EXPENSE
Compensation Expense		1,386			1,492			—			1,492
Noncompensation Expense		940			941			(5	)		936
Amortization of Intangibles		—			—			—			—

TOTAL NONINTEREST EXPENSE		2,326			2,433			(5	)		2,428


Operating Earnings before Income Tax Expense		1,628			2,119			6			2,125
Income Tax Expense (Benefit)		611			772			2			774

OPERATING EARNINGS	$	1,017		$	1,347		$	4		$	1,351

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 40


JPMORGAN CHASE & CO. INVESTMENT BANK PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Fourth Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Investment Banking Fees:
Advisory	$	157		$	161		$	—		$	161
Equity Underwriting		255			255			—			255
Debt Underwriting		428			509			—			509

Total Investment Banking Fees		840			925			—			925

Trading-Related Revenue:
Fixed Income and Other		1,159			1,137			—			1,137
Equities		46			93			—			93

Total Trading-Related Revenue		1,205			1,230			—			1,230

Lending & Deposit Related Fees		131			154			—			154
Asset Management, Administration and Commissions		309			333			—			333
Other Income		65			166			—			166

Subtotal		2,550			2,808			—			2,808
Net Interest Income		348			507			1			508

TOTAL NET REVENUE		2,898			3,315			1			3,316


Provision for Credit Losses		(241	)		(396	)		—			(396	)
Credit Reimbursement from T&SS		(5	)		54			—			54

NONINTEREST EXPENSE
Compensation Expense		821			949			—			949
Noncompensation Expense		980			985			(5	)		980
Amortization of Intangibles		—			—			—			—

TOTAL NONINTEREST EXPENSE		1,801			1,934			(5	)		1,929


Operating Earnings before Income Tax Expense		1,333			1,831			6			1,837
Income Tax Expense (Benefit)		524			678			2			680

OPERATING EARNINGS	$	809		$	1,153		$	4		$	1,157

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 41


JPMORGAN CHASE & CO. INVESTMENT BANK PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Third Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Investment Banking Fees:
Advisory	$	161		$	161		$	—		$	161
Equity Underwriting		173			176			—			176
Debt Underwriting		305			402			—			402

Total Investment Banking Fees		639			739			—			739

Trading-Related Revenue:
Fixed Income and Other		1,163			1,164			—			1,164
Equities		80			98			—			98

Total Trading-Related Revenue		1,243			1,262			—			1,262

Lending & Deposit Related Fees		115			139			—			139
Asset Management, Administration and Commissions		314			335			—			335
Other Income		50			128			—			128

Subtotal		2,361			2,603			—			2,603
Net Interest Income		431			598			1			599

TOTAL NET REVENUE		2,792			3,201			1			3,202


Provision for Credit Losses		(181	)		(298	)		—			(298	)
Credit Reimbursement from T&SS		(10	)		54			—			54

NONINTEREST EXPENSE
Compensation Expense		956			1,061			—			1,061
Noncompensation Expense		865			864			(5	)		859
Amortization of Intangibles		—			—			—			—

TOTAL NONINTEREST EXPENSE		1,821			1,925			(5	)		1,920


Operating Earnings before Income Tax Expense		1,142			1,628			6			1,634
Income Tax Expense (Benefit)		449			602			2			604

OPERATING EARNINGS	$	693		$	1,026		$	4		$	1,030

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 42


JPMORGAN CHASE & CO. INVESTMENT BANK PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Investment Banking Fees:
Advisory	$	162		$	164		$	—		$	164
Equity Underwriting		163			168			—			168
Debt Underwriting		444			564			—			564

Total Investment Banking Fees		769			896			—			896

Trading-Related Revenue:
Fixed Income and Other		1,951			1,766			—			1,766
Equities		56			161			—			161

Total Trading-Related Revenue		2,007			1,927			—			1,927

Lending & Deposit Related Fees		101			126			—			126
Asset Management, Administration and Commissions		305			334			—			334
Other Income		—			68			—			68

Subtotal		3,182			3,351			—			3,351
Net Interest Income		402			579			1			580

TOTAL NET REVENUE		3,584			3,930			1			3,931

Provision for Credit Losses		(4	)		(45	)		—			(45	)
Credit Reimbursement from T&SS		(9	)		54			—			54

NONINTEREST EXPENSE
Compensation Expense		1,372			1,482			—			1,482
Noncompensation Expense		1,070			1,073			(5	)		1,068
Amortization of Intangibles		—			—			—			—

TOTAL NONINTEREST EXPENSE		2,442			2,555			(5	)		2,550


Operating Earnings before Income Tax Expense		1,137			1,474			6			1,480
Income Tax Expense (Benefit)		421			526			2			528

OPERATING EARNINGS	$	716		$	948		$	4		$	952

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 43


JPMORGAN CHASE & CO. INVESTMENT BANK PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2003
	Historical			Total Historical		Pro Forma			Pro Forma
	JPMC			Combined		Adjustments (a)			Combined
REVENUE
Investment Banking Fees:
Advisory	$	160		$	160	$	—		$	160
Equity Underwriting		108			108		—			108
Debt Underwriting		355			443		—			443

Total Investment Banking Fees		623			711		—			711

Trading-Related Revenue:
Fixed Income and Other		1,743			1,731		—			1,731
Equities		188			206		—			206

Total Trading-Related Revenue		1,931			1,937		—			1,937
Lending & Deposit Related Fees		93			116		—			116
Asset Management, Administration and Commissions		289			315		—			315
Other Income		(12	)		58		—			58

Subtotal		2,924			3,137		—			3,137
Net Interest Income		486			667		1			668

TOTAL NET REVENUE		3,410			3,804		1			3,805


Provision for Credit Losses		245			317		—			317
Credit Reimbursement from T&SS		(12	)		54		—			54

NONINTEREST EXPENSE
Compensation Expense		1,313			1,401		—			1,401
Noncompensation Expense		925			920		(5	)		915
Amortization of Intangibles		—			—		—			—

TOTAL NONINTEREST EXPENSE		2,238			2,321		(5	)		2,316


Operating Earnings before Income Tax Expense		915			1,220		6			1,226
Income Tax Expense (Benefit)		328			434		2			436

OPERATING EARNINGS	$	587		$	786	$	4		$	790

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 44

(JP MORGAN CHASE LOGO)

RETAIL FINANCIAL SERVICES


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2004
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	124	$	375	$	—		$	375
Asset Management, Administration and Commissions		100		336		2			338
Securities / Private Equity Gains (Losses)		—		—		—			—
Mortgage Fees and Related Income		365		399		(1	)		398
Credit Card Income		25		89		—			89
Other Income		10		65		—			65

Subtotal		624		1,264		1			1,265
Net Interest Income		1,211		2,584		24			2,608

TOTAL NET REVENUE		1,835		3,848		25			3,873

Provision for Credit Losses		78		175		—			175

NONINTEREST EXPENSE
Compensation Expense		450		840		—			840
Noncompensation Expense		680		1,300		(3	)		1,297
Amortization of Intangibles		1		1		132			133

TOTAL NONINTEREST EXPENSE		1,131		2,141		129			2,270


Operating Earnings before Income Tax Expense and Non-Core Portfolio Actions		626		1,532		(104	)		1,428
Income Tax Expense (Benefit)		230		577		(41	)		536

Operating Earnings before Non-Core Portfolio Actions		396		955		(63	)		892


Non-Core Portfolio Actions:
Impacts to:
Other Income		—		74		—			74
Provision for Credit Losses		—		—		—			—

Total Non-Core Portfolio Actions		—		74		—			74
Income Tax Expense (Benefit)		—		28		—			28

Operating Earnings from Non-Core Portfolio Actions		—		46		—			46

OPERATING EARNINGS	$	396	$	1,001	$	(63	)	$	938

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 45


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2004
	Historical			Total Historical		Pro Forma			Pro Forma
	JPMC			Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	121		$	358	$	—		$	358
Asset Management, Administration and Commissions		95			355		2			357
Securities / Private Equity Gains (Losses)		—			—		—			—
Mortgage Fees and Related Income		255			262		(1	)		261
Credit Card Income		19			75		—			75
Other Income		(24	)		4		—			4

Subtotal		466			1,054		1			1,055
Net Interest Income		1,145			2,601		24			2,625

TOTAL NET REVENUE		1,611			3,655		25			3,680


Provision for Credit Losses		54			197		—			197

NONINTEREST EXPENSE
Compensation Expense		509			897		—			897
Noncompensation Expense		731			1,352		(3	)		1,349
Amortization of Intangibles		1			1		132			133

TOTAL NONINTEREST EXPENSE		1,241			2,250		129			2,379


Operating Earnings before Income Tax Expense and Non-Core Portfolio Actions		316			1,208		(104	)		1,104
Income Tax Expense (Benefit)		110			454		(41	)		413

Operating Earnings before Non-Core Portfolio Actions		206			754		(63	)		691


Non-Core Portfolio Actions:
Impacts to:
Other Income		—			104		—			104
Provision for Credit Losses		—			18		—			18

Total Non-Core Portfolio Actions		—			86		—			86
Income Tax Expense (Benefit)		—			33		—			33

Operating Earnings from Non-Core Portfolio Actions		—			53		—			53

OPERATING EARNINGS	$	206		$	807	$	(63	)	$	744

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 46


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Fourth Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	126		$	371		$	—		$	371
Asset Management, Administration and Commissions		95			316			2			318
Securities / Private Equity Gains (Losses)		18			18			—			18
Mortgage Fees and Related Income		140			173			(1	)		172
Credit Card Income		24			75			—			75
Other Income		(15	)		16			—			16

Subtotal		388			969			1			970
Net Interest Income		1,334			2,672			24			2,696

TOTAL NET REVENUE		1,722			3,641			25			3,666


Provision for Credit Losses		72			270			—			270

NONINTEREST EXPENSE
Compensation Expense		443			802			—			802
Noncompensation Expense		726			1,355			(3	)		1,352
Amortization of Intangibles		1			1			132			133

TOTAL NONINTEREST EXPENSE		1,170			2,158			129			2,287


Operating Earnings before Income Tax Expense and Non-Core Portfolio Actions		480			1,213			(104	)		1,109
Income Tax Expense (Benefit)		175			464			(41	)		423

Operating Earnings before Non-Core Portfolio Actions		305			749			(63	)		686


Non-Core Portfolio Actions:
Impacts to:
Other Income		—			—			—			—
Provision for Credit Losses		—			415			—			415

Total Non-Core Portfolio Actions		—			(415	)		—			(415	)
Income Tax Expense (Benefit)		—			(158	)		—			(158	)

Operating Earnings from Non-Core Portfolio Actions		—			(257	)		—			(257	)

OPERATING EARNINGS	$	305		$	492		$	(63	)	$	429

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 47


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Third Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	125		$	373		$	—		$	373
Asset Management, Administration and Commissions		86			293			2			295
Securities / Private Equity Gains (Losses)		(62	)		(61	)		—			(61	)
Mortgage Fees and Related Income		12			57			(1	)		56
Credit Card Income		27			79			—			79
Other Income		(4	)		(4	)		—			(4	)

Subtotal		184			737			1			738
Net Interest Income		1,345			2,628			24			2,652

TOTAL NET REVENUE		1,529			3,365			25			3,390


Provision for Credit Losses		158			375			—			375

NONINTEREST EXPENSE
Compensation Expense		381			739			—			739
Noncompensation Expense		704			1,279			(3	)		1,276
Amortization of Intangibles		1			1			132			133

TOTAL NONINTEREST EXPENSE		1,086			2,019			129			2,148


Operating Earnings before Income Tax Expense and Non-Core Portfolio Actions		285			971			(104	)		867
Income Tax Expense (Benefit)		104			366			(41	)		325

Operating Earnings before Non-Core Portfolio Actions		181			605			(63	)		542


Non-Core Portfolio Actions:
Impacts to:
Other Income		—			—			—			—
Provision for Credit Losses		—			—			—			—

Total Non-Core Portfolio Actions		—			—			—			—
Income Tax Expense (Benefit)		—			—			—			—

Operating Earnings from Non-Core Portfolio Actions		—			—			—			—

OPERATING EARNINGS	$	181		$	605		$	(63	)	$	542

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 48


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2003
	Historical		Total Historical			Pro Forma			Pro Forma
	JPMC		Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	121	$	351		$	—		$	351
Asset Management, Administration and Commissions		91		286			2			288
Securities / Private Equity Gains (Losses)		323		324			—			324
Mortgage Fees and Related Income		314		318			(1	)		317
Credit Card Income		30		90			—			90
Other Income		5		(12	)		—			(12	)

Subtotal		884		1,357			1			1,358
Net Interest Income		1,321		2,556			24			2,580

TOTAL NET REVENUE		2,205		3,913			25			3,938


Provision for Credit Losses		108		289			—			289

NONINTEREST EXPENSE
Compensation Expense		446		817			—			817
Noncompensation Expense		669		1,215			(3	)		1,212
Amortization of Intangibles		1		1			132			133

TOTAL NONINTEREST EXPENSE		1,116		2,033			129			2,162


Operating Earnings before Income Tax Expense and Non-Core Portfolio Actions		981		1,591			(104	)		1,487
Income Tax Expense (Benefit)		359		595			(41	)		554

Operating Earnings before Non-Core Portfolio Actions		622		996			(63	)		933


Non-Core Portfolio Actions:
Impacts to:
Other Income		—		—			—			—
Provision for Credit Losses		—		85			—			85

Total Non-Core Portfolio Actions		—		(85	)		—			(85	)
Income Tax Expense (Benefit)		—		(32	)		—			(32	)

Operating Earnings from Non-Core Portfolio Actions		—		(53	)		—			(53	)

OPERATING EARNINGS	$	622	$	943		$	(63	)	$	880

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 49


JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	114		$	324		$	—		$	324
Asset Management, Administration and Commissions		85			299			2			301
Securities / Private Equity Gains (Losses)		102			102			—			102
Mortgage Fees and Related Income		439			454			(1	)		453
Credit Card Income		26			79			—			79
Other Income		(14	)		(19	)		—			(19	)

Subtotal		752			1,239			1			1,240
Net Interest Income		1,220			2,512			24			2,536

TOTAL NET REVENUE		1,972			3,751			25			3,776


Provision for Credit Losses		183			389			—			389

NONINTEREST EXPENSE
Compensation Expense		425			789			—			789
Noncompensation Expense		673			1,222			(3	)		1,219
Amortization of Intangibles		1			1			132			133

TOTAL NONINTEREST EXPENSE		1,099			2,012			129			2,141


Operating Earnings before Income Tax Expense and Non-Core Portfolio Actions		690			1,350			(104	)		1,246
Income Tax Expense (Benefit)		251			505			(41	)		464

Operating Earnings before Non-Core Portfolio Actions		439			845			(63	)		782


Non-Core Portfolio Actions:
Impacts to:
Other Income		—			—			—			—
Provision for Credit Losses		—			—			—			—

Total Non-Core Portfolio Actions		—			—			—			—
Income Tax Expense (Benefit)		—			—			—			—

Operating Earnings from Non-Core Portfolio Actions		—			—			—			—

OPERATING EARNINGS	$	439		$	845		$	(63	)	$	782

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 50

(JP MORGAN CHASE LOGO)

CARD SERVICES


JPMORGAN CHASE & CO. CARD SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2004
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Asset Management, Administration and Commissions	$	25	$	26	$	—		$	26
Credit Card Income		271		806		17			823
Other Income		20		28		4			32

Subtotal		316		860		21			881
Net Interest Income		1,271		3,035		(140	)		2,895

TOTAL NET REVENUE		1,587		3,895		(119	)		3,776


Managed Provision for Credit Losses		748		1,757		—			1,757

NONINTEREST EXPENSE
Compensation Expense		150		315		—			315
Noncompensation Expense		353		870		(6	)		864
Amortization of Intangibles		62		94		93			187

TOTAL NONINTEREST EXPENSE		565		1,279		87			1,366


Operating Earnings before Income Tax Expense		274		859		(206	)		653
Income Tax Expense (Benefit)		98		319		(75	)		244

OPERATING EARNINGS	$	176	$	540	$	(131	)	$	409

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 51


JPMORGAN CHASE & CO. CARD SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2004
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Asset Management, Administration and Commissions	$	24	$	25	$	—		$	25
Credit Card Income		238		661		17			678
Other Income		22		62		4			66

Subtotal		284		748		21			769
Net Interest Income		1,273		2,995		(140	)		2,855

TOTAL NET REVENUE		1,557		3,743		(119	)		3,624


Managed Provision for Credit Losses		706		1,725		—			1,725

NONINTEREST EXPENSE
Compensation Expense		156		323		—			323
Noncompensation Expense		381		859		(6	)		853
Amortization of Intangibles		62		94		93			187

TOTAL NONINTEREST EXPENSE		599		1,276		87			1,363


Operating Earnings before Income Tax Expense		252		742		(206	)		536
Income Tax Expense (Benefit)		90		275		(75	)		200

OPERATING EARNINGS	$	162	$	467	$	(131	)	$	336

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 52


JPMORGAN CHASE & CO. CARD SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Fourth Quarter 2003
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Asset Management, Administration and Commissions	$	26	$	27	$	—		$	27
Credit Card Income		271		822		17			839
Other Income		23		31		4			35

Subtotal		320		880		21			901
Net Interest Income		1,295		2,976		(140	)		2,836

TOTAL NET REVENUE		1,615		3,856		(119	)		3,737


Managed Provision for Credit Losses		792		1,801		—			1,801

NONINTEREST EXPENSE
Compensation Expense		144		302		—			302
Noncompensation Expense		345		811		(6	)		805
Amortization of Intangibles		65		102		93			195

TOTAL NONINTEREST EXPENSE		554		1,215		87			1,302


Operating Earnings before Income Tax Expense		269		840		(206	)		634
Income Tax Expense (Benefit)		96		313		(75	)		238

OPERATING EARNINGS	$	173	$	527	$	(131	)	$	396

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 53


JPMORGAN CHASE & CO. CARD SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Third Quarter 2003
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Asset Management, Administration and Commissions	$	25	$	26	$	—		$	26
Credit Card Income		236		729		17			746
Other Income		13		27		4			31

Subtotal		274		782		21			803
Net Interest Income		1,291		2,889		(140	)		2,749

TOTAL NET REVENUE		1,565		3,671		(119	)		3,552


Managed Provision for Credit Losses		705		1,705		—			1,705

NONINTEREST EXPENSE
Compensation Expense		149		306		—			306
Noncompensation Expense		337		780		(6	)		774
Amortization of Intangibles		65		99		93			192

TOTAL NONINTEREST EXPENSE		551		1,185		87			1,272


Operating Earnings before Income Tax Expense		309		781		(206	)		575
Income Tax Expense (Benefit)		110		291		(75	)		216

OPERATING EARNINGS	$	199	$	490	$	(131	)	$	359

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 54


JPMORGAN CHASE & CO. CARD SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2003
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Asset Management, Administration and Commissions	$	25	$	26	$	—		$	26
Credit Card Income		231		685		17			702
Other Income		7		68		4			72

Subtotal		263		779		21			800
Net Interest Income		1,244		2,741		(140	)		2,601

TOTAL NET REVENUE		1,507		3,520		(119	)		3,401


Managed Provision for Credit Losses		712		1,641		—			1,641

NONINTEREST EXPENSE
Compensation Expense		144		298		—			298
Noncompensation Expense		329		750		(6	)		744
Amortization of Intangibles		65		96		93			189

TOTAL NONINTEREST EXPENSE		538		1,144		87			1,231


Operating Earnings before Income Tax Expense		257		735		(206	)		529
Income Tax Expense (Benefit)		92		274		(75	)		199

OPERATING EARNINGS	$	165	$	461	$	(131	)	$	330

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 55


JPMORGAN CHASE & CO. CARD SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2003
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Asset Management, Administration and Commissions	$	32	$	33	$	—		$	33
Credit Card Income		192		618		17			635
Other Income		11		29		4			33

Subtotal		235		680		21			701
Net Interest Income		1,222		2,717		(140	)		2,577

TOTAL NET REVENUE		1,457		3,397		(119	)		3,278


Managed Provision for Credit Losses		695		1,644		—			1,644

NONINTEREST EXPENSE
Compensation Expense		145		297		—			297
Noncompensation Expense		325		703		(6	)		697
Amortization of Intangibles		65		96		93			189

TOTAL NONINTEREST EXPENSE		535		1,096		87			1,183


Operating Earnings before Income Tax Expense		227		657		(206	)		451
Income Tax Expense (Benefit)		81		243		(75	)		168

OPERATING EARNINGS	$	146	$	414	$	(131	)	$	283

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 56

(JP MORGAN CHASE LOGO)

COMMERCIAL BANKING


JPMORGAN CHASE & CO. COMMERCIAL BANKING PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2004
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	67	$	168	$	—		$	168
Asset Management, Administration and Commissions		4		10		—			10
Other Income		29		95		—			95

Subtotal		100		273		—			273
Net Interest Income		234		605		(12	)		593

TOTAL NET REVENUE		334		878		(12	)		866


Provision for Credit Losses		19		18		—			18

NONINTEREST EXPENSE
Compensation Expense		65		167		—			167
Noncompensation Expense		138		287		(1	)		286
Amortization of Intangibles		—		—		18			18

TOTAL NONINTEREST EXPENSE		203		454		17			471


Operating Earnings before Income Tax Expense		112		406		(29	)		377
Income Tax Expense (Benefit)		47		154		(11	)		143

OPERATING EARNINGS	$	65	$	252	$	(18	)	$	234

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 57


JPMORGAN CHASE & CO. COMMERCIAL BANKING PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2004
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	65		$	162		$	—		$	162
Asset Management, Administration and Commissions		4			11			—			11
Other Income		26			77			—			77

Subtotal		95			250			—			250
Net Interest Income		227			595			(12	)		583

TOTAL NET REVENUE		322			845			(12	)		833


Provision for Credit Losses		(13	)		(86	)		—			(86	)

NONINTEREST EXPENSE
Compensation Expense		71			158			—			158
Noncompensation Expense		138			275			(1	)		274
Amortization of Intangibles		—			—			18			18

TOTAL NONINTEREST EXPENSE		209			433			17			450


Operating Earnings before Income Tax Expense		126			498			(29	)		469
Income Tax Expense (Benefit)		52			191			(11	)		180

OPERATING EARNINGS	$	74		$	307		$	(18	)	$	289

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 58


JPMORGAN CHASE & CO. COMMERCIAL BANKING PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Fourth Quarter 2003
	Historical			Total Historical		Pro Forma			Pro Forma
	JPMC			Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	69		$	169	$	—		$	169
Asset Management, Administration and Commissions		4			11		—			11
Other Income		27			75		—			75

Subtotal		100			255		—			255
Net Interest Income		240			608		(12	)		596

TOTAL NET REVENUE		340			863		(12	)		851


Provision for Credit Losses		(10	)		33		—			33

NONINTEREST EXPENSE
Compensation Expense		66			152		—			152
Noncompensation Expense		131			282		(1	)		281
Amortization of Intangibles		—			—		18			18

TOTAL NONINTEREST EXPENSE		197			434		17			451


Operating Earnings before Income Tax Expense		153			396		(29	)		367
Income Tax Expense (Benefit)		64			153		(11	)		142

OPERATING EARNINGS	$	89		$	243	$	(18	)	$	225

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 59


JPMORGAN CHASE & CO. COMMERCIAL BANKING PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Third Quarter 2003
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	82	$	188	$	—		$	188
Asset Management, Administration and Commissions		5		12		—			12
Other Income		14		66		—			66

Subtotal		101		266		—			266
Net Interest Income		240		601		(12	)		589

TOTAL NET REVENUE		341		867		(12	)		855


Provision for Credit Losses		21		84		—			84

NONINTEREST EXPENSE
Compensation Expense		82		162		—			162
Noncompensation Expense		130		281		(1	)		280
Amortization of Intangibles		1		1		18			19

TOTAL NONINTEREST EXPENSE		213		444		17			461


Operating Earnings before Income Tax Expense		107		339		(29	)		310
Income Tax Expense (Benefit)		44		130		(11	)		119

OPERATING EARNINGS	$	63	$	209	$	(18	)	$	191

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 60


JPMORGAN CHASE & CO. COMMERCIAL BANKING PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2003
	Historical			Total Historical		Pro Forma			Pro Forma
	JPMC			Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	76		$	188	$	—		$	188
Asset Management, Administration and Commissions		5			12		—			12
Other Income		16			62		—			62

Subtotal		97			262		—			262
Net Interest Income		235			605		(12	)		593

TOTAL NET REVENUE		332			867		(12	)		855


Provision for Credit Losses		(3	)		42		—			42

NONINTEREST EXPENSE
Compensation Expense		68			147		—			147
Noncompensation Expense		139			298		(1	)		297
Amortization of Intangibles		1			1		18			19

TOTAL NONINTEREST EXPENSE		208			446		17			463


Operating Earnings before Income Tax Expense		127			379		(29	)		350
Income Tax Expense (Benefit)		52			145		(11	)		134

OPERATING EARNINGS	$	75		$	234	$	(18	)	$	216

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 61


JPMORGAN CHASE & CO. COMMERCIAL BANKING PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2003
	Historical			Total Historical		Pro Forma			Pro Forma
	JPMC			Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	74		$	180	$	—		$	180
Asset Management, Administration and Commissions		5			13		—			13
Other Income		16			55		—			55

Subtotal		95			248		—			248
Net Interest Income		244			600		(12	)		588

TOTAL NET REVENUE		339			848		(12	)		836


Provision for Credit Losses		(2	)		52		—			52

NONINTEREST EXPENSE
Compensation Expense		69			150		—			150
Noncompensation Expense		134			292		(1	)		291
Amortization of Intangibles		1			1		18			19

TOTAL NONINTEREST EXPENSE		204			443		17			460


Operating Earnings before Income Tax Expense		137			353		(29	)		324
Income Tax Expense (Benefit)		57			135		(11	)		124

OPERATING EARNINGS	$	80		$	218	$	(18	)	$	200

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 62

(JP MORGAN CHASE LOGO)

TREASURY & SECURITIES SERVICES


JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2004
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	111		$	243		$	—		$	243
Asset Management, Administration and Commissions		633			645			—			645
Other Income		98			109			—			109

Subtotal		842			997			—			997
Net Interest Income		251			371			—			371

TOTAL NET REVENUE		1,093			1,368			—			1,368


Provision for Credit Losses		3			3			—			3
Credit Reimbursement to IB		(2	)		(43	)		—			(43	)

NONINTEREST EXPENSE
Compensation Expense		347			466			—			466
Noncompensation Expense		582			678			—			678
Amortization of Intangibles		15			15			16			31

TOTAL NONINTEREST EXPENSE		944			1,159			16			1,175


Operating Earnings before Income Tax Expense		144			163			(16	)		147
Income Tax Expense (Benefit)		43			50			(6	)		44

OPERATING EARNINGS	$	101		$	113		$	(10	)	$	103

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 63


JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2004
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	118		$	245		$	—		$	245
Asset Management, Administration and Commissions		582			601			—			601
Other Income		69			85			—			85

Subtotal		769			931			—			931
Net Interest Income		243			349			—			349

TOTAL NET REVENUE		1,012			1,280			—			1,280


Provision for Credit Losses		1			1			—			1
Credit Reimbursement to IB		(2	)		(43	)		—			(43	)

NONINTEREST EXPENSE
Compensation Expense		339			470			—			470
Noncompensation Expense		512			599			—			599
Amortization of Intangibles		16			16			16			32

TOTAL NONINTEREST EXPENSE		867			1,085			16			1,101


Operating Earnings before Income Tax Expense		142			151			(16	)		135
Income Tax Expense (Benefit)		44			48			(6	)		42

OPERATING EARNINGS	$	98		$	103		$	(10	)	$	93

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 64


JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Fourth Quarter 2003
	Historical		Total Historical			Pro Forma			Pro Forma
	JPMC		Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	115	$	243		$	—		$	243
Asset Management, Administration and Commissions		518		551			—			551
Other Income		111		123			—			123

Subtotal		744		917			—			917
Net Interest Income		236		353			—			353

TOTAL NET REVENUE		980		1,270			—			1,270


Provision for Credit Losses		—		3			—			3
Credit Reimbursement to IB		5		(54	)		—			(54	)

NONINTEREST EXPENSE
Compensation Expense		330		452			—			452
Noncompensation Expense		463		540			—			540
Amortization of Intangibles		8		9			16			25

TOTAL NONINTEREST EXPENSE		801		1,001			16			1,017


Operating Earnings before Income Tax Expense		184		212			(16	)		196
Income Tax Expense (Benefit)		61		73			(6	)		67

OPERATING EARNINGS	$	123	$	139		$	(10	)	$	129

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 65


JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Third Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	120		$	238		$	—		$	238
Asset Management, Administration and Commissions		484			522			—			522
Other Income		61			75			—			75

Subtotal		665			835			—			835
Net Interest Income		241			364			—			364

TOTAL NET REVENUE		906			1,199			—			1,199


Provision for Credit Losses		(1	)		2			—			2
Credit Reimbursement to IB		10			(54	)		—			(54	)

NONINTEREST EXPENSE
Compensation Expense		310			437			—			437
Noncompensation Expense		433			499			—			499
Amortization of Intangibles		6			6			16			22

TOTAL NONINTEREST EXPENSE		749			942			16			958


Operating Earnings before Income Tax Expense		168			201			(16	)		185
Income Tax Expense (Benefit)		53			66			(6	)		60

OPERATING EARNINGS	$	115		$	135		$	(10	)	$	125

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 66


JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2003
	Historical		Total Historical			Pro Forma			Pro Forma
	JPMC		Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	116	$	229		$	—		$	229
Asset Management, Administration and Commissions		469		509			—			509
Other Income		60		73			—			73

Subtotal		645		811			—			811
Net Interest Income		243		362			—			362

TOTAL NET REVENUE		888		1,173			—			1,173


Provision for Credit Losses		1		4			—			4
Credit Reimbursement to IB		9		(54	)		—			(54	)

NONINTEREST EXPENSE
Compensation Expense		309		431			—			431
Noncompensation Expense		452		526			—			526
Amortization of Intangibles		6		6			16			22

TOTAL NONINTEREST EXPENSE		767		963			16			979


Operating Earnings before Income Tax Expense		129		152			(16	)		136
Income Tax Expense (Benefit)		39		48			(6	)		42

OPERATING EARNINGS	$	90	$	104		$	(10	)	$	94

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 67


JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2003
	Historical		Total Historical			Pro Forma			Pro Forma
	JPMC		Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	119	$	227		$	—		$	227
Asset Management, Administration and Commissions		432		473			—			473
Other Income		56		70			—			70

Subtotal		607		770			—			770
Net Interest Income		227		360			—			360

TOTAL NET REVENUE		834		1,130			—			1,130


Provision for Credit Losses		1		2			—			2
Credit Reimbursement to IB		12		(54	)		—			(54	)

NONINTEREST EXPENSE
Compensation Expense		308		428			—			428
Noncompensation Expense		397		469			—			469
Amortization of Intangibles		6		6			16			22

TOTAL NONINTEREST EXPENSE		711		903			16			919


Operating Earnings before Income Tax Expense		134		171			(16	)		155
Income Tax Expense (Benefit)		40		55			(6	)		49

OPERATING EARNINGS	$	94	$	116		$	(10	)	$	106

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 68

(JP MORGAN CHASE LOGO)

ASSET & WEALTH MANAGEMENT


JPMORGAN CHASE & CO. ASSET & WEALTH MANAGEMENT PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2004
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	4		$	9		$	—		$	9
Asset Management, Administration and Commissions		657			886			—			886
Other Income		50			49			—			49

Subtotal		711			944			—			944
Net Interest Income		117			246			(5	)		241

TOTAL NET REVENUE		828			1,190			(5	)		1,185


Provision for Credit Losses		(4	)		(5	)		—			(5	)

NONINTEREST EXPENSE
Compensation Expense		343			448			—			448
Noncompensation Expense		335			423			—			423
Amortization of Intangibles		3			3			20			23

TOTAL NONINTEREST EXPENSE		681			874			20			894


Operating Earnings before Income Tax Expense		151			321			(25	)		296
Income Tax Expense (Benefit)		52			115			(9	)		106

OPERATING EARNINGS	$	99		$	206		$	(16	)	$	190

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 69


JPMORGAN CHASE & CO. ASSET & WEALTH MANAGEMENT PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2004
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	4	$	10	$	—		$	10
Asset Management, Administration and Commissions		672		911		—			911
Other Income		50		52		—			52

Subtotal		726		973		—			973
Net Interest Income		122		245		(5	)		240

TOTAL NET REVENUE		848		1,218		(5	)		1,213


Provision for Credit Losses		10		9		—			9

NONINTEREST EXPENSE
Compensation Expense		325		428		—			428
Noncompensation Expense		322		394		—			394
Amortization of Intangibles		2		3		20			23

TOTAL NONINTEREST EXPENSE		649		825		20			845


Operating Earnings before Income Tax Expense		189		384		(25	)		359
Income Tax Expense (Benefit)		67		139		(9	)		130

OPERATING EARNINGS	$	122	$	245	$	(16	)	$	229

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 70


JPMORGAN CHASE & CO. ASSET & WEALTH MANAGEMENT PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Fourth Quarter 2003
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	5	$	11	$	—		$	11
Asset Management, Administration and Commissions		629		844		—			844
Other Income		87		89		—			89

Subtotal		721		944		—			944
Net Interest Income		124		250		(5	)		245

TOTAL NET REVENUE		845		1,194		(5	)		1,189


Provision for Credit Losses		36		37		—			37

NONINTEREST EXPENSE
Compensation Expense		309		409		—			409
Noncompensation Expense		337		413		—			413
Amortization of Intangibles		2		2		20			22

TOTAL NONINTEREST EXPENSE		648		824		20			844


Operating Earnings before Income Tax Expense		161		333		(25	)		308
Income Tax Expense (Benefit)		55		118		(9	)		109

OPERATING EARNINGS	$	106	$	215	$	(16	)	$	199

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 71


JPMORGAN CHASE & CO. ASSET & WEALTH MANAGEMENT PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Third Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	5		$	11		$	—		$	11
Asset Management, Administration and Commissions		585			790			—			790
Other Income		49			53			—			53

Subtotal		639			854			—			854
Net Interest Income		121			247			(5	)		242

TOTAL NET REVENUE		760			1,101			(5	)		1,096


Provision for Credit Losses		(7	)		(3	)		—			(3	)

NONINTEREST EXPENSE
Compensation Expense		320			424			—			424
Noncompensation Expense		313			374			—			374
Amortization of Intangibles		2			2			20			22

TOTAL NONINTEREST EXPENSE		635			800			20			820


Operating Earnings before Income Tax Expense		132			304			(25	)		279
Income Tax Expense (Benefit)		47			110			(9	)		101

OPERATING EARNINGS	$	85		$	194		$	(16	)	$	178

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 72


JPMORGAN CHASE & CO. ASSET & WEALTH MANAGEMENT PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2003
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	4	$	10	$	—		$	10
Asset Management, Administration and Commissions		522		723		—			723
Other Income		53		54		—			54

Subtotal		579		787		—			787
Net Interest Income		122		237		(5	)		232

TOTAL NET REVENUE		701		1,024		(5	)		1,019


Provision for Credit Losses		—		6		—			6

NONINTEREST EXPENSE
Compensation Expense		294		400		—			400
Noncompensation Expense		307		365		—			365
Amortization of Intangibles		2		2		20			22

TOTAL NONINTEREST EXPENSE		603		767		20			787


Operating Earnings before Income Tax Expense		98		251		(25	)		226
Income Tax Expense (Benefit)		34		91		(9	)		82

OPERATING EARNINGS	$	64	$	160	$	(16	)	$	144

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 73


JPMORGAN CHASE & CO. ASSET & WEALTH MANAGEMENT PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2003
	Historical		Total Historical		Pro Forma			Pro Forma
	JPMC		Combined		Adjustments (a)			Combined
REVENUE
Lending & Deposit Related Fees	$	5	$	12	$	—		$	12
Asset Management, Administration and Commissions		522		715		—			715
Other Income		16		17		—			17

Subtotal		543		744		—			744
Net Interest Income		121		232		(5	)		227

TOTAL NET REVENUE		664		976		(5	)		971


Provision for Credit Losses		6		8		—			8

NONINTEREST EXPENSE
Compensation Expense		290		393		—			393
Noncompensation Expense		308		368		—			368
Amortization of Intangibles		2		2		20			22

TOTAL NONINTEREST EXPENSE		600		763		20			783


Operating Earnings before Income Tax Expense		58		205		(25	)		180
Income Tax Expense (Benefit)		26		81		(9	)		72

OPERATING EARNINGS	$	32	$	124	$	(16	)	$	108

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 74

(JP MORGAN CHASE LOGO)

CORPORATE


JPMORGAN CHASE & CO. CORPORATE PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2004
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Securities / Private Equity Gains (Losses)	$	436		$	343		$	—		$	343
Other Income		63			(11	)		—			(11	)

Subtotal		499			332			—			332
Net Interest Income		2			(511	)		277			(234	)

TOTAL NET REVENUE		501			(179	)		277			98


Provision for Credit Losses		(27	)		(27	)		—			(27	)

NONINTEREST EXPENSE
Compensation Expense		462			716			35			751
Noncompensation Expense		859			1,210			(10	)		1,200
Expenses Allocated to Other Businesses		(1,186	)		(1,463	)		—			(1,463	)
Amortization of Intangibles		(2	)		—			—			—

TOTAL NONINTEREST EXPENSE		133			463			25			488


Operating Earnings before Income Tax Expense		395			(615	)		252			(363	)
Income Tax Expense (Benefit)		70			(414	)		154			(260	)

OPERATING EARNINGS	$	325		$	(201	)	$	98		$	(103	)

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 75


JPMORGAN CHASE & CO. CORPORATE PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2004
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Securities / Private Equity Gains (Losses)	$	419		$	561		$	—		$	561
Other Income		8			(94	)		—			(94	)

Subtotal		427			467			—			467
Net Interest Income		(57	)		(554	)		277			(277	)

TOTAL NET REVENUE		370			(87	)		277			190


Provision for Credit Losses		(82	)		(84	)		—			(84	)

NONINTEREST EXPENSE
Compensation Expense		516			764			35			799
Noncompensation Expense		872			1,211			(10	)		1,201
Expenses Allocated to Other Businesses		(1,184	)		(1,452	)		—			(1,452	)
Amortization of Intangibles		(2	)		(2	)		—			(2	)

TOTAL NONINTEREST EXPENSE		202			521			25			546


Operating Earnings before Income Tax Expense		250			(524	)		252			(272	)
Income Tax Expense (Benefit)		(1	)		(411	)		154			(257	)

OPERATING EARNINGS	$	251		$	(113	)	$	98		$	(15	)

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 76


JPMORGAN CHASE & CO. CORPORATE PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Fourth Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Securities / Private Equity Gains (Losses)	$	168		$	(9	)	$	—		$	(9	)
Other Income		54			(40	)		—			(40	)

Subtotal		222			(49	)		—			(49	)
Net Interest Income		(54	)		(455	)		277			(178	)

TOTAL NET REVENUE		168			(504	)		277			(227	)


Provision for Credit Losses		(48	)		(48	)		—			(48	)

NONINTEREST EXPENSE
Compensation Expense		395			590			35			625
Noncompensation Expense		813			1,240			(10	)		1,230
Expenses Allocated to Other Businesses		(1,119	)		(1,379	)		—			(1,379	)
Amortization of Intangibles		(2	)		(2	)		—			(2	)

TOTAL NONINTEREST EXPENSE		87			449			25			474


Operating Earnings before Income Tax Expense		129			(905	)		252			(653	)
Income Tax Expense (Benefit)		(130	)		(600	)		154			(446	)

OPERATING EARNINGS	$	259		$	(305	)	$	98		$	(207	)

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 77


JPMORGAN CHASE & CO. CORPORATE PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Third Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Securities / Private Equity Gains (Losses)	$	349		$	405		$	—		$	405
Other Income		81			(145	)		—			(145	)

Subtotal		430			260			—			260
Net Interest Income		(72	)		(453	)		277			(176	)

TOTAL NET REVENUE		358			(193	)		277			84


Provision for Credit Losses		(1	)		(1	)		—			(1	)

NONINTEREST EXPENSE
Compensation Expense		433			646			35			681
Noncompensation Expense		773			1,094			(10	)		1,084
Expenses Allocated to Other Businesses		(1,132	)		(1,396	)		—			(1,396	)
Amortization of Intangibles		(2	)		(1	)		—			(1	)

TOTAL NONINTEREST EXPENSE		72			343			25			368


Operating Earnings before Income Tax Expense		287			(535	)		252			(283	)
Income Tax Expense (Benefit)		(5	)		(386	)		154			(232	)

OPERATING EARNINGS	$	292		$	(149	)	$	98		$	(51	)

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 78


JPMORGAN CHASE & CO. CORPORATE PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	Second Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Securities / Private Equity Gains (Losses)	$	373		$	528		$	—		$	528
Other Income		(23	)		(87	)		—			(87	)

Subtotal		350			441			—			441
Net Interest Income		(19	)		(397	)		277			(120	)

TOTAL NET REVENUE		331			44			277			321


Provision for Credit Losses		101			101			—			101

NONINTEREST EXPENSE
Compensation Expense		518			741			35			776
Noncompensation Expense		831			1,137			(10	)		1,127
Expenses Allocated to Other Businesses		(1,155	)		(1,424	)		—			(1,424	)
Amortization of Intangibles		(2	)		(1	)		—			(1	)

TOTAL NONINTEREST EXPENSE		192			453			25			478

Operating Earnings before Income Tax Expense		38			(510	)		252			(258	)
Income Tax Expense (Benefit)		(57	)		(342	)		154			(188	)

OPERATING EARNINGS	$	95		$	(168	)	$	98		$	(70	)

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 79


JPMORGAN CHASE & CO. CORPORATE PRO FORMA COMBINED HISTORICAL STATEMENT OF INCOME (in millions)


	First Quarter 2003
	Historical			Total Historical			Pro Forma			Pro Forma
	JPMC			Combined			Adjustments (a)			Combined
REVENUE
Securities / Private Equity Gains (Losses)	$	141		$	207			—		$	207
Other Income		102			38			—			38

Subtotal		243			245			—			245
Net Interest Income		(32	)		(439	)		277			(162	)

TOTAL NET REVENUE		211			(194	)		277			83


Provision for Credit Losses		72			72			—			72

NONINTEREST EXPENSE
Compensation Expense		547			777			35			812
Noncompensation Expense		806			1,079			(10	)		1,069
Expenses Allocated to Other Businesses		(1,174	)		(1,448	)		—			(1,448	)
Amortization of Intangibles		(1	)		—			—			—

TOTAL NONINTEREST EXPENSE		178			408			25			433


Operating Earnings before Income Tax Expense		(39	)		(674	)		252			(422	)
Income Tax Expense (Benefit)		(61	)		(389	)		154			(235	)

OPERATING EARNINGS	$	22		$	(285	)	$	98		$	(187	)

(a)

Reflects purchase accounting adjustments estimated for 3Q04 applied to each of the prior six quarters.

Page 80

	(i)		the impact of the sale of the Bank One corporate trust business to JPMorgan Chase;

	(ii)		any future cost savings anticipated from the merger (including without limitation the previously announced $3.0 billion (pre-tax) of cost savings);

	(iii)		merger-related costs anticipated to be incurred to combine the operations of JPMorgan Chase and Bank One, post June 30, 2004;

	(iv)		the impact of possible future revenue enhancements or share repurchases.