EXHIBIT 99.2

J.P. MORGAN CHASE & CO
TABLE OF CONTENTS

	Page
JPMorgan Chase Consolidated
Statement of Income — Reported Basis		3
Lines of Business Financial Highlights Summary		4
Statement of Income — Operating Basis		5
Reconciliation from Reported to Operating Basis		6
Segment Detail
Investment Bank		7
Business-Related Metrics		8
Treasury & Securities Services		9
Investment Management & Private Banking		10
JPMorgan Partners		11
Investment Portfolio — Private and Public Securities		12
Chase Financial Services		13
Business-Related Metrics		14
Supplemental Detail
Noninterest Revenue and Noninterest Expense Detail		15
Consolidated Balance Sheet		16
Condensed Average Balance Sheet and Annualized Yields		17
Credit-Related Information		18-23
Capital		24
Market Risk — Average VAR		25
Glossary of Terms		26

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

Page 2

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

																			2QTR 2003
																			Over (Under)
			2QTR			1QTR			4QTR			3QTR			2QTR
			2003			2003			2002			2002			2002				1Q 2003				2Q 2002
REVENUE
Investment Banking Fees			$	779		$	616		$	678		$	545		$	785				26	%			(1	)%
Trading Revenue				1,477			1,232			585			(21	)		731				20				102
Fees and Commissions				2,479			2,598			2,282			3,005			2,885				(5	)			(14	)
Private Equity Gains (Losses)				(29	)		(221	)		(68	)		(315	)		(125	)			87				77
Securities Gains				768			485			747			578			124				58			NM
Other Revenue				497			481			290			419			292				3				70
Total Noninterest Revenue				5,971			5,191			4,514			4,211			4,692				15				27
Interest Income				5,871			6,263			6,184			6,316			6,498				(6	)			(10	)
Interest Expense				2,808			3,048			3,203			3,580			3,616				(8	)			(22	)
Net Interest Income				3,063			3,215			2,981			2,736			2,882				(5	)			6
Revenue before Provision for Credit Losses				9,034			8,406			7,495			6,947			7,574				7				19
Provision for Credit Losses				435			743			921			1,836			821				(41	)			(47	)
	TOTAL NET REVENUE			8,599			7,663			6,574			5,111			6,753				12				27
EXPENSE
Compensation Expense				3,231			3,174			3,032			2,367			2,761				2				17
Occupancy Expense (a)				543			496			425			478			365				9				49
Technology and Communications Expense				732			637			635			625			629				15				16
Amortization of Intangibles				73			74			82			80			92				(1	)			(21	)
Other Expense				1,153			1,160			1,294			1,168			1,118				(1	)			3
Surety Settlement and Litigation Reserve (a)				100			—			1,300			—			—			NM				NM
Merger and Restructuring Costs				—			—			393			333			229			NM				NM
		TOTAL NONINTEREST EXPENSE		5,832			5,541			7,161			5,051			5,194				5				12
Income (Loss) before Income Tax Expense				2,767			2,122			(587	)		60			1,559				30				77
Income Tax Expense (Benefit)				940			722			(200	)		20			531				30				77
NET INCOME (LOSS)			$	1,827		$	1,400		$	(387	)	$	40		$	1,028				31				78
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK			$	1,815		$	1,387		$	(399	)	$	27		$	1,015				31				79
NET INCOME (LOSS) PER COMMON SHARE
Basic			$	0.90		$	0.69		$	(0.20	)	$	0.01		$	0.51				30				76
Diluted				0.89			0.69			(0.20	)		0.01			0.50				29				78
PERFORMANCE RATIOS (b)
Return on Average Assets				0.96	%		0.73	%	NM				0.02	%		0.56	%	23			bp	40			bp
Return on Average Common Equity				17			13		NM				—			10				400				700
FULL-TIME EQUIVALENT EMPLOYEES				92,256			93,878			94,335			95,637			95,878				(2	)%			(4	)%

[Additional columns below]

[Continued from above table, first column(s) repeated]

										YTD 2003
			YEAR TO DATE							Over (Under)
			2003			2002				2002
REVENUE
Investment Banking Fees			$	1,395		$	1,540				(9	)%
Trading Revenue				2,709			2,030				33
Fees and Commissions				5,077			5,469				(7	)
Private Equity Gains (Losses)				(250	)		(363	)			31
Securities Gains				1,253			238				426
Other Revenue				978			449				118
Total Noninterest Revenue				11,162			9,363				19
Interest Income				12,134			12,784				(5	)
Interest Expense				5,856			6,975				(16	)
Net Interest Income				6,278			5,809				8
Revenue before Provision for Credit Losses				17,440			15,172				15
Provision for Credit Losses				1,178			1,574				(25	)
	TOTAL NET REVENUE			16,262			13,598				20
EXPENSE
Compensation Expense				6,405			5,584				15
Occupancy Expense (a)				1,039			703				48
Technology and Communications Expense				1,369			1,294				6
Amortization of Intangibles				147			161				(9	)
Other Expense				2,313			2,326				(1	)
Surety Settlement and Litigation Reserve (a)				100			—			NM
Merger and Restructuring Costs				—			484			NM
		TOTAL NONINTEREST EXPENSE		11,373			10,552				8
Income (Loss) before Income Tax Expense				4,889			3,046				61
Income Tax Expense (Benefit)				1,662			1,036				60
NET INCOME (LOSS)			$	3,227		$	2,010				61
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK			$	3,202		$	1,984				61
NET INCOME (LOSS) PER COMMON SHARE
Basic			$	1.60		$	1.00				60
Diluted				1.57			0.99				59
PERFORMANCE RATIOS (b)
Return on Average Assets				0.84	%		0.56	%	28			bp
Return on Average Common Equity				15			10				500
FULL-TIME EQUIVALENT EMPLOYEES

(a)

In the second quarter of 2003, a $100 million (pre-tax) charge was recorded for certain Enron-related litigation. In the fourth quarter of 2002, a $1,300 million (pre-tax) charge was recorded for the settlement of the Enron surety litigation and the establishment of a reserve for certain material litigation, proceedings and investigations. In the third quarter of 2002, $98 million (pre-tax) in real estate charges were recorded in “Occupancy Expense” on a reported basis.

(b)

Ratios are based on annualized amounts.

Page 3

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

																			2QTR 2003
																			Over (Under)
			2QTR			1QTR			4QTR			3QTR			2QTR
			2003			2003			2002			2002			2002				1Q 2003				2Q 2002
OPERATING REVENUE
Investment Bank			$	4,257		$	4,068		$	3,355		$	2,481		$	3,154				5	%			35	%
Treasury & Securities Services				984			935			941			1,029			991				5				(1	)
Investment Management & Private Banking				684			643			652			695			729				6				(6	)
JPMorgan Partners				(70	)		(278	)		(83	)		(359	)		(193	)			75				64
Chase Financial Services				3,977			3,696			3,334			3,668			3,400				8				17
Support Units and Corporate				(318	)		(201	)		(274	)		(213	)		(173	)			(58	)			(84	)
		OPERATING REVENUE (a)	$	9,514		$	8,863		$	7,925		$	7,301		$	7,908				7				20
EARNINGS
Investment Bank			$	1,087		$	946		$	363		$	(256	)	$	507				15				114
Treasury & Securities Services				127			131			129			201			165				(3	)			(23	)
Investment Management & Private Banking				69			36			12			68			82				92				(16	)
JPMorgan Partners				(91	)		(217	)		(96	)		(278	)		(168	)			58				46
Chase Financial Services				883			677			467			760			649				30				36
Support Units and Corporate				(248	)		(173	)		(145	)		(170	)		(56	)			(43	)			(343	)
		OPERATING EARNINGS (a)		1,827			1,400			730			325			1,179				31				55
Special Items (Net of Taxes):
	Real Estate Charge			—			—			—			(65	)		—			NM				NM
	Surety Settlement and Litigation Reserve			—			—			(858	)		—			—			NM				NM
	Merger and Restructuring Costs			—			—			(259	)		(220	)		(151	)		NM				NM
		NET INCOME (LOSS) (a)	$	1,827		$	1,400		$	(387	)	$	40		$	1,028				31				78
AVERAGE ECONOMIC CAPITAL
Investment Bank			$	20,101		$	20,825		$	20,317		$	19,443		$	19,638				(3)				2
Treasury & Securities Services				2,768			2,759			2,720			2,603			2,662				—				4
Investment Management & Private Banking				5,481			5,432			5,540			5,607			5,741				1				(5)
JPMorgan Partners				5,916			5,985			6,102			6,183			6,330				(1)				(7)
Chase Financial Services				8,661			8,469			8,516			8,637			8,716				2				(1)
Support Units and Corporate				(168)			(1,612)			(1,225)			(305)			(2,198)				90				92
		TOTAL ECONOMIC CAPITAL (a)	$	42,759		$	41,858		$	41,970		$	42,168		$	40,889				2				5
OPERATING EARNINGS (a)			$	0.89		$	0.69		$	0.36		$	0.16		$	0.58				29				53
Special Items (Net of Taxes):
	Real Estate Charge			—			—			—			(0.03	)		—			NM				NM
	Surety Settlement and Litigation Reserve			—			—			(0.43	)		—			—			NM				NM
	Merger and Restructuring Costs			—			—			(0.13	)		(0.12	)		(0.08	)		NM				NM
NET INCOME (LOSS) (a)			$	0.89		$	0.69		$	(0.20	)	$	0.01		$	0.50				29				78
OPERATING RETURN ON COMMON EQUITY
Investment Bank				22	%		18	%		7	%	NM				10	%	400			bp	1,200			bp
Treasury & Securities Services				18			19			19			31	%		25				(100	)			(700	)
Investment Management & Private Banking				5			3			1			5			6				200				(100	)
Chase Financial Services				41			32			22			35			30				900				1,100
OPERATING RETURN ON COMMON EQUITY (a)				17			13			7			3			11				400				600

[Additional columns below]

[Continued from above table, first column(s) repeated]

										YTD 2003
			YEAR TO DATE							Over (Under)
			2003			2002				2002
OPERATING REVENUE
Investment Bank			$	8,325		$	6,809				22	%
Treasury & Securities Services				1,919			1,933				(1	)
Investment Management & Private Banking				1,327			1,494				(11	)
JPMorgan Partners				(348	)		(501	)			31
Chase Financial Services				7,673			6,455				19
Support Units and Corporate				(519	)		(363	)			(43	)
		OPERATING REVENUE (a)	$	18,377		$	15,827				16
EARNINGS
Investment Bank			$	2,033		$	1,276				59
Treasury & Securities Services				258			301				(14	)
Investment Management & Private Banking				105			182				(42	)
JPMorgan Partners				(308	)		(413	)			25
Chase Financial Services				1,560			1,135				37
Support Units and Corporate				(421	)		(152	)			(177	)
		OPERATING EARNINGS (a)		3,227			2,329				39
Special Items (Net of Taxes):
	Real Estate Charge			—			—			NM
	Surety Settlement and Litigation Reserve			—			—			NM
	Merger and Restructuring Costs			—			(319	)		NM
		NET INCOME (LOSS) (a)	$	3,227		$	2,010				61
AVERAGE ECONOMIC CAPITAL
	Investment Bank		$	20,461		$	19,934				3
	Treasury & Securities Services			2,764			2,727				1
	Investment Management & Private Banking			5,457			5,714				(4	)
	JPMorgan Partners			5,950			6,447				(8	)
	Chase Financial Services			8,565			8,661				(1	)
	Support Units and Corporate			(886	)		(2,828	)			69
		TOTAL ECONOMIC CAPITAL (a)	$	42,311		$	40,655				4
EARNINGS PER SHARE — DILUTED
OPERATING EARNINGS (a)			$	1.57		$	1.15				37
Special Items (Net of Taxes):
	Real Estate Charge			—			—			NM
	Surety Settlement and Litigation Reserve			—			—			NM
	Merger and Restructuring Costs			—			(0.16	)		NM
NET INCOME (LOSS) (a)			$	1.57		$	0.99				59
OPERATING RETURN ON COMMON EQUITY
Investment Bank				20	%		13	%	700			bp
Treasury & Securities Services				19			22				(300	)
Investment Management & Private Banking				4			6				(200	)
Chase Financial Services				37			26				1,100
OPERATING RETURN ON COMMON EQUITY (a)				15			11				400

(a) Represents consolidated JPMorgan Chase.

Page 4

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

																			2QTR 2003
																			Over (Under)
			2QTR			1QTR			4QTR			3QTR			2QTR
			2003			2003			2002			2002			2002				1Q 2003				2Q 2002
OPERATING REVENUE
Investment Banking Fees			$	779		$	616		$	678		$	545		$	785				26	%			(1	)%
Trading-Related Revenue (Includes Trading NII)				1,956			1,915			1,253			365			1,136				2				72
Fees and Commissions				2,357			2,429			2,052			2,768			2,745				(3	)			(14	)
Private Equity Gains (Losses)				(29	)		(221	)		(68	)		(315	)		(125	)			87				77
Securities Gains				768			485			747			578			124				58			NM
Other Revenue				473			477			303			409			273				(1	)			73
Net Interest Income (Excludes Trading NII)				3,210			3,162			2,960			2,951			2,970				2				8
		TOTAL OPERATING REVENUE		9,514			8,863			7,925			7,301			7,908				7				20
OPERATING EXPENSE
Compensation Expense (a)				3,231			3,174			3,032			2,367			2,761				2				17
Noncompensation Expense (a) (b)				2,601			2,367			2,436			2,253			2,204				10				18
	TOTAL OPERATING EXPENSE			5,832			5,541			5,468			4,620			4,965				5				17
Credit Costs				915			1,200			1,351			2,190			1,155				(24	)			(21	)
Corporate Credit Allocation				—			—			—			—			—			NM				NM
Operating Income before Income Tax Expense				2,767			2,122			1,106			491			1,788				30				55
Income Tax Expense				940			722			376			166			609				30				54
OPERATING EARNINGS			$	1,827		$	1,400		$	730		$	325		$	1,179				31				55
OPERATING BASIS
Diluted Earnings per Share			$	0.89		$	0.69		$	0.36		$	0.16		$	0.58				29				53
Shareholder Value Added (c)				536			148			(551	)		(964	)		(57	)			262			NM
Return on Average Managed Assets (d)				0.92	%		0.70	%		0.37	%		0.17	%		0.62	%	22			bp	30			bp
Return on Common Equity (d)				17			13			7			3			11				400				600
Common Dividend Payout Ratio				40			50			96			222			59				(1,000	)			(1,900	)
Effective Income Tax Rate				34			34			34			34			34				—				—
Compensation Expense as a % of Operating Revenue				34			36			38			32			35				(200	)			(100	)
Noncompensation Expense as a % of Operating Revenue				27			27			31			31			28				—				(100	)
Overhead Ratio				61			63			69			63			63				(200	)			(200	)
Shareholder Value Added: (c)
Net Income (Loss)			$	1,827		$	1,400		$	(387	)	$	40		$	1,028				31	%			78	%
Special Items (Net of Taxes):
	Real Estate Charge			—			—			—			65			—			NM				NM
	Surety Settlement and Litigation Reserve			—			—			858			—			—			NM				NM
	Merger and Restructuring Costs			—			—			259			220			151			NM				NM
Operating Earnings				1,827			1,400			730			325			1,179				31				55
Less: Preferred Dividends				12			13			12			13			13				(8	)			(8	)
Adjusted Operating Earnings				1,815			1,387			718			312			1,166				31				56
Less: Cost of Capital (e)				1,279			1,239			1,269			1,276			1,223				3				5
Total Shareholder Value Added			$	536		$	148		$	(551	)	$	(964	)	$	(57	)			262			NM
Return on Average Managed Assets: (d)
Operating Earnings			$	1,827		$	1,400		$	730		$	325		$	1,179				31				55
Average Managed Assets
Average Assets			$	764,655		$	778,238		$	755,166		$	724,366		$	734,946				(2	)			4
Average Credit Card Securitizations				31,665			31,834			30,556			28,348			25,289				(1	)			25
Average Managed Assets			$	796,320		$	810,072		$	785,722		$	752,714		$	760,235				(2	)			5

[Additional columns below]

[Continued from above table, first column(s) repeated]

									YTD 2003
			YEAR TO DATE						Over (Under)
			2003			2002			2002
OPERATING REVENUE
Investment Banking Fees			$	1,395		$	1,540			(9	)%
Trading-Related Revenue (Includes Trading NII)				3,871			2,856			36
Fees and Commissions				4,786			5,238			(9	)
Private Equity Gains (Losses)				(250	)		(363	)		31
Securities Gains				1,253			238			426
Other Revenue				950			410			132
Net Interest Income (Excludes Trading NII)				6,372			5,908			8
		TOTAL OPERATING REVENUE		18,377			15,827			16
OPERATING EXPENSE
Compensation Expense (a)				6,405			5,584			15
Noncompensation Expense (a) (b)				4,968			4,484			11
	TOTAL OPERATING EXPENSE			11,373			10,068			13
Credit Costs				2,115			2,229			(5	)
Corporate Credit Allocation				—			—		NM
Operating Income before Income Tax Expense				4,889			3,530			38
Income Tax Expense				1,662			1,201			38
OPERATING EARNINGS			$	3,227		$	2,329			39
OPERATING BASIS
Diluted Earnings per Share			$	1.57		$	1.15			37
Shareholder Value Added (c)				684			(116	)	NM
Return on Average Managed Assets (d)				0.81	%		0.63	%	18bp
Return on Common Equity (d)				15			11			400
Common Dividend Payout Ratio				44			60			(1,600	)
Effective Income Tax Rate				34			34			—
Compensation Expense as a % of Operating Revenue				35			35			—
Noncompensation Expense as a % of Operating Revenue				27			28			(100	)
Overhead Ratio				62			64			(200	)
Shareholder Value Added: (c)
Net Income (Loss)			$	3,227		$	2,010			61	%
Special Items (Net of Taxes):
	Real Estate Charge			—			—		NM
	Surety Settlement and Litigation Reserve			—			—		NM
	Merger and Restructuring Costs			—			319		NM
Operating Earnings				3,227			2,329			39
Less: Preferred Dividends				25			26			(4	)
Adjusted Operating Earnings				3,202			2,303			39
Less: Cost of Capital (e)				2,518			2,419			4
Total Shareholder Value Added			$	684		$	(116	)	NM
Return on Average Managed Assets: (d)
Operating Earnings			$	3,227		$	2,329			39
Average Managed Assets
Average Assets			$	771,409		$	726,841			6
Average Credit Card Securitizations				31,749			23,537			35
Average Managed Assets			$	803,158		$	750,378			7

(a)	Includes severance and other related costs associated with expense containment programs implemented in 2002.
(b)	Includes Occupancy Expense, Technology and Communications Expense, Amortization of Intangibles, Other Expense and Surety Settlement and Litigation Reserve.
(c)	The Firm uses the shareholder value added (“SVA”) framework to measure performance of its business segments. The table above reconciles the Firm’s net income, which is a GAAP financial measure, to SVA, which is a non-GAAP financial measure. To derive SVA, the Firm applies a cost of capital to each business segment. The capital elements and resultant capital charges provide the businesses with the financial framework to evaluate the trade-off between the use of capital by each business unit versus its return to shareholders. Capital charges are an integral part of the SVA measurement for each business.
(d)	Ratios are based on annualized amounts.
(e)	A 12% (after-tax) cost of capital, based on average economic capital, is used for the Firm. To derive shareholder value added for the business segments, a 12% (after-tax) cost of capital is applied for each business segment, except for JPMorgan Partners, which is charged a 15% (after-tax) cost of capital.

Page 5

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

																	2QTR 2003
																	Over (Under)
		2QTR			1QTR			4QTR			3QTR			2QTR
		2003			2003			2002			2002			2002			1Q 2003			2Q 2002
REVENUE
TRADING REVENUE
	Reported	$	1,477		$	1,232		$	585		$	(21	)	$	731			20	%		102	%
	Trading-Related NII		479			683			668			386			405			(30	)		18
	Operating	$	1,956		$	1,915		$	1,253		$	365		$	1,136			2			72
CREDIT CARD REVENUE (a)
	Reported	$	698		$	692		$	807		$	806		$	669			1			4
	Credit Card Securitizations		(122	)		(169	)		(230	)		(237	)		(140	)		28			13
	Operating	$	576		$	523		$	577		$	569		$	529			10			9
OTHER REVENUE
	Reported	$	497		$	481		$	290		$	419		$	292			3			70
	Credit Card Securitizations		(24	)		(4	)		13			(10	)		(19	)	NM				(26	)
	Operating	$	473		$	477		$	303		$	409		$	273			(1	)		73
NET INTEREST INCOME
	Reported	$	3,063		$	3,215		$	2,981		$	2,736		$	2,882			(5	)		6
	Credit Card Securitizations		626			630			647			601			493			(1	)		27
	Trading-Related NII		(479	)		(683	)		(668	)		(386	)		(405	)		30			(18	)
	Operating	$	3,210		$	3,162		$	2,960		$	2,951		$	2,970			2			8
TOTAL REVENUE
	Reported	$	9,034		$	8,406		$	7,495		$	6,947		$	7,574			7			19
	Credit Card Securitizations		480			457			430			354			334			5			44
	Total Operating Revenue	$	9,514		$	8,863		$	7,925		$	7,301		$	7,908			7			20
NONINTEREST EXPENSE
	Reported	$	5,832		$	5,541		$	7,161		$	5,051		$	5,194			5			12
	Real Estate Reserves		—			—			—			(98	)		—		NM			NM
	Surety Settlement and Litigation Reserve		—			—			(1,300	)		—			—		NM			NM
	Merger and Restructuring Costs		—			—			(393	)		(333	)		(229	)	NM			NM
	Total Operating Expense	$	5,832		$	5,541		$	5,468		$	4,620		$	4,965			5			17
CREDIT COSTS
	Provision for Credit Losses — Reported	$	435		$	743		$	921		$	1,836		$	821			(41	)		(47	)
	Credit Card Securitizations		480			457			430			354			334			5			44
	Credit Costs — Operating	$	915		$	1,200		$	1,351		$	2,190		$	1,155			(24	)		(21	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

								YTD 2003
		YEAR TO DATE						Over (Under)
		2003			2002			2002
REVENUE
TRADING REVENUE
	Reported	$	2,709		$	2,030			33	%
	Trading-Related NII		1,162			826			41
	Operating	$	3,871		$	2,856			36
CREDIT CARD REVENUE (a)
	Reported	$	1,390		$	1,256			11
	Credit Card Securitizations		(291	)		(231	)		(26	)
	Operating	$	1,099		$	1,025			7
OTHER REVENUE
	Reported	$	978		$	449			118
	Credit Card Securitizations		(28	)		(39	)		28
	Operating	$	950		$	410			132
NET INTEREST INCOME
	Reported	$	6,278		$	5,809			8
	Credit Card Securitizations		1,256			925			36
	Trading-Related NII		(1,162	)		(826	)		(41	)
	Operating	$	6,372		$	5,908			8
TOTAL REVENUE
	Reported	$	17,440		$	15,172			15
	Credit Card Securitizations		937			655			43
	Total Operating Revenue	$	18,377		$	15,827			16
NONINTEREST EXPENSE
	Reported	$	11,373		$	10,552			8
	Real Estate Reserves		—			—		NM
	Surety Settlement and Litigation Reserve		—			—		NM
	Merger and Restructuring Costs		—			(484	)	NM
	Total Operating Expense	$	11,373		$	10,068			13
CREDIT COSTS
	Provision for Credit Losses — Reported	$	1,178		$	1,574			(25	)
	Credit Card Securitizations		937			655			43
	Credit Costs — Operating	$	2,115		$	2,229			(5	)

(a) Included in Fees and Commissions.

Page 6

SEGMENT DETAIL

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

																			2QTR 2003
																			Over (Under)
				2QTR			1QTR			4QTR			3QTR			2QTR
				2003			2003			2002			2002			2002			1Q 2003			2Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Trading Revenue (Includes Trading NII):
		Fixed Income and Other		$	1,870		$	1,730		$	1,298		$	631		$	1,034			8	%		81	%
		Equities			155			199			(33	)		(254	)		96			(22	)		61
					2,025			1,929			1,265			377			1,130			5			79
Investment Banking Fees					765			620			650			529			781			23			(2	)
Net Interest Income					637			735			674			681			681			(13	)		(6	)
Fees and Commissions					403			380			370			432			429			6			(6	)
Securities Gains					445			383			376			465			108			16			312
All Other Revenue					(18	)		21			20			(3	)		25		NM			NM
			TOTAL OPERATING REVENUE		4,257			4,068			3,355			2,481			3,154			5			35
EXPENSE:
Compensation Expense					1,391			1,321			1,065			721			1,057			5			32
Noncompensation Expense					915			836			882			848			820			9			12
	Operating Expense (Excludes Severance and Related Costs)				2,306			2,157			1,947			1,569			1,877			7			23
Severance and Related Costs					150			104			337			79			124			44			21
		TOTAL OPERATING EXPENSE			2,456			2,261			2,284			1,648			2,001			9			23
Operating Margin					1,801			1,807			1,071			833			1,153			—			56
Credit Costs					(4	)		245			489			1,316			306		NM			NM
Corporate Credit Allocation					(11	)		(14	)		(19	)		(25	)		(21	)		21			48
Operating Income (Loss) Before Income Tax Expense					1,794			1,548			563			(508	)		826			16			117
Income Tax Expense (Benefit)					707			602			200			(252	)		319			17			122
OPERATING EARNINGS (LOSS)				$	1,087		$	946		$	363		$	(256	)	$	507			15			114
Average Economic Capital				$	20,101		$	20,825		$	20,317		$	19,443		$	19,638			(3	)		2
Average Assets					494,221			525,613			515,614			494,699			503,339			(6	)		(2	)
Shareholder Value Added					480			324			(258	)		(849	)		(86	)		48		NM
Return on Economic Capital					22	%		18	%		7	%	NM				10	%	400bp			1,200bp
Overhead Ratio					58			56			68			66	%		63			200			(500	)
Overhead Ratio Excl. Severance and Related Costs					54			53			58			63			60			100			(600	)
Compensation Expense as a % of Operating Revenue Excl. Severance and Related Costs					33			32			32			29			34			100			(100	)
FULL-TIME EQUIVALENT EMPLOYEES					14,457			14,605			15,139			16,364			16,688			(1	)%		(13	)%
Shareholder Value Added:
Operating Earnings				$	1,087		$	946		$	363		$	(256	)	$	507			15			114
Less: Preferred Dividends					5			6			5			5			5			(17	)		—
Adjusted Operating Earnings					1,082			940			358			(261	)		502			15			116
Less: Cost of Capital					602			616			616			588			588			(2	)		2
Total Shareholder Value Added				$	480		$	324		$	(258	)	$	(849	)	$	(86	)		48			NM

[Additional columns below]

[Continued from above table, first column(s) repeated]

										YTD 2003
				YEAR TO DATE						Over (Under)
				2003			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
Trading Revenue (Includes Trading NII):
		Fixed Income and Other		$	3,600		$	2,537			42	%
		Equities			354			297			19
					3,954			2,834			40
Investment Banking Fees					1,385			1,517			(9	)
Net Interest Income					1,372			1,438			(5	)
Fees and Commissions					783			817			(4	)
Securities Gains					828			235			252
All Other Revenue					3			(32	)	NM
			TOTAL OPERATING REVENUE		8,325			6,809			22
EXPENSE:
Compensation Expense					2,712			2,187			24
Noncompensation Expense					1,751			1,725			2
	Operating Expense (Excludes Severance and Related Costs)				4,463			3,912			14
Severance and Related Costs					254			171			49
		TOTAL OPERATING EXPENSE			4,717			4,083			16
Operating Margin					3,608			2,726			32
Credit Costs					241			588			(59	)
Corporate Credit Allocation					(25	)		(43	)		42
Operating Income (Loss) Before Income Tax Expense					3,342			2,095			60
Income Tax Expense (Benefit)					1,309			819			60
OPERATING EARNINGS (LOSS)				$	2,033		$	1,276			59
Average Economic Capital				$	20,461		$	19,934			3
Average Assets					509,830			485,576			5
Shareholder Value Added					804			79		NM
Return on Economic Capital					20	%		13	%	700bp
Overhead Ratio					57			60			(300	)
Overhead Ratio Excl. Severance and Related Costs					54			57			(300	)
Compensation Expense as a % of Operating Revenue Excl. Severance and Related Costs					33			32			100
Shareholder Value Added:
Operating Earnings				$	2,033		$	1,276			59	%
Less: Preferred Dividends					11			11			—
Adjusted Operating Earnings					2,022			1,265			60
Less: Cost of Capital					1,218			1,186			3
Total Shareholder Value Added				$	804		$	79			NM

Page 7

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

													2QTR 2003
													Over (Under)
		2QTR		1QTR		4QTR		3QTR			2QTR
		2003		2003		2002		2002			2002		1Q 2003			2Q 2002
BUSINESS REVENUE:
INVESTMENT BANKING FEES
	Advisory	$	162	$	160	$	216	$	139		$	194		1	%		(16	)%
	Underwriting and Other Fees		603		460		434		390			587		31			3
TOTAL			765		620		650		529			781		23			(2	)
CAPITAL MARKETS & LENDING
	Fixed Income		2,176		1,992		1,580		909			1,289		9			69
	Treasury		627		607		578		607			269		3			133
	Credit Portfolio		299		413		356		440			442		(28	)		(32	)
	Equities		390		436		191		(4	)		373		(11	)		5
TOTAL			3,492		3,448		2,705		1,952			2,373		1			47
TOTAL OPERATING REVENUE		$	4,257	$	4,068	$	3,355	$	2,481		$	3,154		5			35
MEMO:
CAPITAL MARKETS & LENDING TOTAL RETURN REVENUE (a)
	Fixed Income	$	2,113	$	1,954	$	1,497	$	943		$	1,362		8			55
	Treasury		438		536		464		364			215		(18	)		104
	Credit Portfolio		299		413		356		440			442		(28	)		(32	)
	Equities		390		436		191		(4	)		373		(11	)		5
TOTAL		$	3,240	$	3,339	$	2,508	$	1,743		$	2,392		(3	)		35
MARKET SHARE / RANKINGS: (b)
Global Syndicated Loans			24% / #1		14% / #1		20% / #1		22% / #1			28% / #1
U.S. Investment-Grade Bonds			17% / #2		15% / #2		14% / #2		15% / #2			19% / #2
Euro-Denominated Corporate International Bonds			5% / #7		4% / #10		7% / #4		5% / #9			5% / #7
Global Equity and Equity-Related			9% / #4		10% / #3		3% / #9		2% / #15			6% / #7
U.S. Equity and Equity-Related			12% / #4		16% / #1		5% / #7		3% / #8			9% / #5
Global Announced M&A			13% / #7		22% / #2		15% / #5		12% / #7			17% / #3

[Additional columns below]

[Continued from above table, first column(s) repeated]

						YTD 2003
		YEAR TO DATE				Over (Under)
		2003		2002		2002
BUSINESS REVENUE:
INVESTMENT BANKING FEES
	Advisory	$	322	$	388		(17	)%
	Underwriting and Other Fees		1,063		1,129		(6	)
TOTAL			1,385		1,517		(9	)
CAPITAL MARKETS & LENDING
	Fixed Income		4,168		3,052		37
	Treasury		1,234		654		89
	Credit Portfolio		712		771		(8	)
	Equities		826		815		1
TOTAL			6,940		5,292		31
TOTAL OPERATING REVENUE		$	8,325	$	6,809		22
MEMO:
CAPITAL MARKETS & LENDING TOTAL RETURN REVENUE (a)
	Fixed Income	$	4,067	$	3,083		32
	Treasury		974		685		42
	Credit Portfolio		712		771		(8	)
	Equities		826		815		1
TOTAL		$	6,579	$	5,354		23
MARKET SHARE / RANKINGS: (b)
Global Syndicated Loans			20% / #1		25% / #1
U.S. Investment-Grade Bonds			15% / #2		17% / #2
Euro-Denominated Corporate International Bonds			5% / #8		6% / #5
Global Equity and Equity-Related			10% / #4		5% / #7
U.S. Equity and Equity-Related			13% / #3		7% / #6
Global Announced M&A			17% / #3		15% / #6

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

Page 8

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

																				2QTR 2003
																				Over (Under)
					2QTR			1QTR			4QTR			3QTR			2QTR
					2003			2003			2002			2002			2002			1Q 2003			2Q 2002
OPERATING INCOME STATEMENT
REVENUE:
	Fees and Commissions				$	632		$	598		$	581		$	605		$	621			6	%		2	%
	Net Interest Income					312			299			314			312			310			4			1
	All Other Revenue					40			38			46			112			60			5			(33	)
				TOTAL OPERATING REVENUE		984			935			941			1,029			991			5			(1	)
EXPENSE:
	Compensation Expense					320			319			285			290			302			—			6
	Noncompensation Expense					478			425			467			450			449			12			6
			TOTAL OPERATING EXPENSE			798			744			752			740			751			7			6
	Operating Margin					186			191			189			289			240			(3	)		(23	)
	Credit Costs					1			1			2			(1	)		(1	)	NM			NM
	Corporate Credit Allocation					11			14			19			25			21			(21	)		(48	)
	Operating Income Before Income Tax Expense					196			204			206			315			262			(4	)		(25	)
	Income Tax Expense					69			73			77			114			97			(5	)		(29	)
OPERATING EARNINGS					$	127		$	131		$	129		$	201		$	165			(3	)		(23	)
Average Economic Capital					$	2,768		$	2,759		$	2,720		$	2,603		$	2,662			—			4
Average Assets						20,165			17,504			19,279			15,943			18,919			15			7
Shareholder Value Added						43			49			46			122			85			(12	)		(49	)
Return on Economic Capital						18	%		19	%		19	%		31	%		25	%	(100)  bp			(700)  bp
Overhead Ratio						81			80			80			72			76			100			500
Assets under Custody (in billions)					$	6,777		$	6,269		$	6,336		$	6,251		$	6,417			8	%		6	%
FULL-TIME EQUIVALENT EMPLOYEES						14,388			14,344			14,435			14,734			14,857			—			(3	)
Shareholder Value Added: Operating Earnings					$	127		$	131		$	129		$	201		$	165			(3	)		(23	)
Less: Preferred Dividends						—			1			—			1			—			NM			NM
Adjusted Operating Earnings						127			130			129			200			165			(2	)		(23	)
Less: Cost of Capital						84			81			83			78			80			4			5
Total Shareholder Value Added					$	43		$	49		$	46		$	122		$	85			(12	)		(49	)
OPERATING REVENUE BY BUSINESS:
		Treasury Services			$	472		$	479		$	470		$	467		$	440			(1	)		7
		Investor Services				359			340			334			384			416			6			(14	)
		Institutional Trust Services				239			205			225			221			222			17			8
		Other				(86	)		(89	)		(88	)		(43	)		(87	)		3			1
		Total Treasury & Securities Services			$	984		$	935		$	941		$	1,029		$	991			5			(1	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

											YTD 2003
					YEAR TO DATE						Over (Under)
					2003			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
	Fees and Commissions				$	1,230		$	1,227			—	%
	Net Interest Income					611			611			—
	All Other Revenue					78			95			(18	)
				TOTAL OPERATING REVENUE		1,919			1,933			(1	)
EXPENSE:
	Compensation Expense					639			606			5
	Noncompensation Expense					903			894			1
			TOTAL OPERATING EXPENSE			1,542			1,500			3
	Operating Margin					377			433			(13	)
	Credit Costs					2			—		NM
	Corporate Credit Allocation					25			43			(42	)
	Operating Income Before Income Tax Expense					400			476			(16	)
	Income Tax Expense					142			175			(19	)
OPERATING EARNINGS					$	258		$	301			(14	)
Average Economic Capital					$	2,764		$	2,727			1
Average Assets						18,842			17,954			5
Shareholder Value Added						92			138			(33	)
Return on Economic Capital						19	%		22	%	(300)  bp
Overhead Ratio						80			78			200
Assets under Custody (in billions)
FULL-TIME EQUIVALENT EMPLOYEES
Shareholder Value Added:
Operating Earnings					$	258		$	301			(14	)%
Less: Preferred Dividends						1			1			—
Adjusted Operating Earnings						257			300			(14	)
Less: Cost of Capital						165			162			2
Total Shareholder Value Added					$	92		$	138			(33	)
OPERATING REVENUE BY BUSINESS:
		Treasury Services			$	951		$	887			7
		Investor Services				699			797			(12	)
		Institutional Trust Services				444			425			4
		Other				(175	)		(176	)		1
		Total Treasury & Securities Services			$	1,919		$	1,933			(1	)

Page 9

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

																				2QTR 2003
																				Over (Under)
					2QTR			1QTR			4QTR			3QTR			2QTR
					2003			2003			2002			2002			2002			1Q 2003			2Q 2002
OPERATING INCOME STATEMENT
REVENUE:
	Fees and Commissions				$	509		$	511		$	507		$	519		$	560			—	%		(9	)%
	Net Interest Income					118			116			107			117			113			2			4
	All Other Revenue					57			16			38			59			56			256			2
				TOTAL OPERATING REVENUE		684			643			652			695			729			6			(6	)
EXPENSE:
	Compensation Expense					290			285			311			267			261			2			11
	Noncompensation Expense					288			289			315			296			315			—			(9	)
			TOTAL OPERATING EXPENSE			578			574			626			563			576			1			—
	Operating Margin					106			69			26			132			153			54			(31	)
	Credit Costs					—			6			12			26			23		NM			NM
	Operating Income Before Income Tax Expense					106			63			14			106			130			68			(18	)
	Income Tax Expense					37			27			2			38			48			37			(23	)
OPERATING EARNINGS					$	69		$	36		$	12		$	68		$	82			92			(16	)
Average Economic Capital					$	5,481		$	5,432		$	5,540		$	5,607		$	5,741			1			(5	)
Average Assets						33,929			32,346			33,522			34,968			36,478			5			(7	)
Shareholder Value Added						(97	)		(126	)		(155	)		(104	)		(92	)		23			(5	)
Tangible Shareholder Value Added						29			(1	)		(28	)		26			37		NM				(22	)
Return on Economic Capital						5	%		3	%		1	%		5	%		6	%	200  bp			(100)  bp
Tangible Return on Economic Capital						21			12			5			19			21			900			—
Overhead Ratio						85			89			96			81			79			(400	)		600
Pre-Tax Margin Ratio						15			10			2			15			18			500			(300	)
FULL-TIME EQUIVALENT EMPLOYEES						7,884			7,510			7,827			8,080			8,103			5	%		(3	)%
Shareholder Value Added:
Operating Earnings					$	69		$	36		$	12		$	68		$	82			92			(16	)
Less: Preferred Dividends						1			2			1			2			1			(50	)		—
Adjusted Operating Earnings						68			34			11			66			81			100			(16	)
Less: Cost of Capital						165			160			166			170			173			3			(5	)
Total Shareholder Value Added					$	(97	)	$	(126	)	$	(155	)	$	(104	)	$	(92	)		23			(5	)
ASSETS UNDER SUPERVISION (in billions)
Client Segment:
		Retail			$	84	(a)	$	72		$	80		$	77		$	89			17			(6	)
		Private Banking				130	(a)		125			130			126			138			4			(6	)
		Institutional				298	(a)		298			305			298			318			—			(6	)
			Assets under Management			512	(a)		495			515			501			545			3			(6	)
		Custody / brokerage / administration / deposits				182	(a)		127			129			131			140			43			30
			Assets under Supervision		$	694	(a)	$	622		$	644		$	632		$	685			12			1
Geographic Region:
		Americas			$	348	(a)	$	350		$	362		$	352		$	381			(1	)		(9	)
		Europe and Asia				164	(a)		145			153			149			164			13			—
			Assets under Management			512	(a)		495			515			501			545			3			(6	)
		Custody / brokerage / administration / deposits				182	(a)		127			129			131			140			43			30
			Assets under Supervision		$	694	(a)	$	622		$	644		$	632		$	685			12			1
Product Class:
		Liquidity			$	140	(a)	$	144		$	144		$	130		$	131			(3	)		7
		Fixed Income				150	(a)		144			149			150			156			4			(4	)
		Equities and Other				222	(a)		207			222			221			258			7			(14	)
			Assets under Management			512	(a)		495			515			501			545			3			(6	)
		Custody / brokerage / administration / deposits				182	(a)		127			129			131			140			43			30
			Assets under Supervision		$	694	(a)	$	622		$	644		$	632		$	685			12			1

[Additional columns below]

[Continued from above table, first column(s) repeated]

										YTD 2003
				YEAR TO DATE						Over (Under)
				2003			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
	Fees and Commissions			$	1,020		$	1,150			(11	)%
	Net Interest Income				234			225			4
	All Other Revenue				73			119			(39	)
			TOTAL OPERATING REVENUE		1,327			1,494			(11	)
EXPENSE:
	Compensation Expense				575			547			5
	Noncompensation Expense				577			610			(5	)
		TOTAL OPERATING EXPENSE			1,152			1,157			—
	Operating Margin				175			337			(48	)
	Credit Costs				6			46			(87	)
	Operating Income Before Income Tax Expense				169			291			(42	)
	Income Tax Expense				64			109			(41	)
OPERATING EARNINGS				$	105		$	182			(42	)
Average Economic Capital				$	5,457		$	5,714			(4	)
Average Assets					33,142			37,238			(11	)
Shareholder Value Added					(223	)		(162	)		(38	)
Tangible Shareholder Value Added					28			96			(71	)
Return on Economic Capital					4	%		6	%	(200)  bp
Tangible Return on Economic Capital					16			24			(800	)
Overhead Ratio					87			77			1,000
Pre-Tax Margin Ratio					13			19			(600	)
Shareholder Value Added:
Operating Earnings				$	105		$	182			(42	)%
Less: Preferred Dividends					3			3			—
Adjusted Operating Earnings					102			179			(43	)
Less: Cost of Capital					325			341			(5	)
Total Shareholder Value Added				$	(223	)	$	(162	)		(38	)

(a) Estimated

Page 10

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

					2QTR			1QTR			4QTR			3QTR			2QTR
					2003			2003			2002			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
	Direct Investments:
		Realized Cash Gains (Net)			$	153		$	46		$	144		$	91		$	91
		Write-downs / Write-offs				(177	)		(176	)		(225	)		(210	)		(206	)
		Mark-to-Market				147			(6	)		108			(120	)		(20	)
				Total Direct Investments		123			(136	)		27			(239	)		(135	)
	Third Party Funds (Net)					(145	)		(94	)		(80	)		(60	)		9
	Total Private Equity Gains (Losses)					(22	)		(230	)		(53	)		(299	)		(126	)
	Net Interest Income (Loss)					(58	)		(62	)		(58	)		(63	)		(74	)
	Fees and Other Revenue					10			14			28			3			7
				TOTAL OPERATING REVENUE		(70	)		(278	)		(83	)		(359	)		(193	)
EXPENSE:
	Compensation Expense					36			34			24			33			34
	Noncompensation Expense					38			29			45			46			39
			TOTAL OPERATING EXPENSE			74			63			69			79			73
	Operating Income (Loss) Before Income Tax Expense					(144	)		(341	)		(152	)		(438	)		(266	)
	Income Tax Expense (Benefit)					(53	)		(124	)		(56	)		(160	)		(98	)
OPERATING EARNINGS (LOSS)					$	(91	)	$	(217	)	$	(96	)	$	(278	)	$	(168	)
Average Economic Capital					$	5,916		$	5,985		$	6,102		$	6,183		$	6,330
Average Assets						9,008			9,428			9,629			9,404			9,611
Shareholder Value Added						(314	)		(440	)		(327	)		(514	)		(407	)
FULL-TIME EQUIVALENT EMPLOYEES						329			342			357			364			357
Shareholder Value Added:
Operating Earnings					$	(91	)	$	(217	)	$	(96	)	$	(278	)	$	(168	)
Less: Preferred Dividends						1			2			2			2			2
Adjusted Operating Earnings						(92	)		(219	)		(98	)		(280	)		(170	)
Less: Cost of Capital						222			221			229			234			237
Total Shareholder Value Added					$	(314	)	$	(440	)	$	(327	)	$	(514	)	$	(407	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

					2QTR 2003												YTD 2003
					Over (Under)						YEAR TO DATE						Over (Under)
					1Q 2003			2Q 2002			2003			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
	Direct Investments:
		Realized Cash Gains (Net)				233	%		68	%	$	199		$	217			(8	)%
		Write-downs / Write-offs				(1	)		14			(353	)		(390	)		9
		Mark-to-Market			NM			NM				141			(198	)	NM
				Total Direct Investments	NM			NM				(13	)		(371	)		96
	Third Party Funds (Net)					(54	)	NM				(239	)		(10	)	NM
	Total Private Equity Gains (Losses)					90			83			(252	)		(381	)		34
	Net Interest Income (Loss)					6			22			(120	)		(147	)		18
	Fees and Other Revenue					(29	)		43			24			27			(11	)
				TOTAL OPERATING REVENUE		75			64			(348	)		(501	)		31
EXPENSE:
	Compensation Expense					6			6			70			71			(1	)
	Noncompensation Expense					31			(3	)		67			80			(16	)
			TOTAL OPERATING EXPENSE			17			1			137			151			(9	)
	Operating Income (Loss) Before Income Tax Expense					58			46			(485	)		(652	)		26
	Income Tax Expense (Benefit)					57			46			(177	)		(239	)		26
OPERATING EARNINGS (LOSS)						58			46		$	(308	)	$	(413	)		25
Average Economic Capital						(1	)		(7	)	$	5,950		$	6,447			(8	)
Average Assets						(4	)		(6	)		9,217			9,841			(6	)
Shareholder Value Added						29			23			(754	)		(897	)		16
FULL-TIME EQUIVALENT EMPLOYEES						(4	)		(8	)
Shareholder Value Added:
Operating Earnings						58			46		$	(308	)	$	(413	)		25
Less: Preferred Dividends						(50	)		(50	)		3			4			(25	)
Adjusted Operating Earnings						58			46			(311	)		(417	)		25
Less: Cost of Capital						—			(6	)		443			480			(8	)
Total Shareholder Value Added						29			23		$	(754	)	$	(897	)		16

Page 11

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

																	Jun 30, 2003
																	Over (Under)
		Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
		2003			2003			2002			2002			2002			2003			2002
PORTFOLIO INFORMATION
Public Securities (79 companies) (a) (b)
	Carrying Value	$	591		$	478		$	520		$	488		$	695			24	%		(15	)%
	Cost		531			624			663			764			860			(15	)		(38	)
Private Direct Securities (913 companies) (b)
	Carrying Value		5,766			5,912			5,865			5,694			5,707			(2	)		1
	Cost		7,351			7,439			7,316			7,186			7,066			(1	)		4
Private Fund Investments (306 funds) (b)
	Carrying Value		1,544			1,780			1,843			1,831			1,827			(13	)		(15	)
	Cost		2,121			2,360			2,333			2,216			2,164			(10	)		(2	)
Total Investment Portfolio — Carrying Value		$	7,901		$	8,170		$	8,228		$	8,013		$	8,229			(3	)		(4	)
Total Investment Portfolio — Cost		$	10,003		$	10,423		$	10,312		$	10,166		$	10,090			(4	)		(1	)
% of Portfolio to the Firm’s Common Equity			18	%		19	%		20	%		19	%		20	%	(100		)bp		(200	)bp

(a)	Publicly traded positions only. Quoted public value was $868 million at June 30, 2003.
(b)	Represents the number of companies and funds at June 30, 2003.

Page 12

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

																		2QTR 2003
																		Over (Under)
			2QTR			1QTR			4QTR			3QTR			2QTR
			2003			2003			2002			2002			2002			1Q 2003			2Q 2002
OPERATING INCOME STATEMENT
REVENUE:
Net Interest Income			$	2,423		$	2,319		$	2,128		$	2,107		$	2,072			4	%		17	%
Fees and Commissions				816			935			603			1,233			1,134			(13	)		(28	)
Securities Gains				324			102			375			112			19			218		NM
All Other Revenue				414			340			228			216			175			22			137
		TOTAL OPERATING REVENUE		3,977			3,696			3,334			3,668			3,400			8			17
EXPENSE:
Compensation Expense				762			733			634			677			668			4			14
Noncompensation Expense				1,002			1,021			1,078			981			958			(2	)		5
	TOTAL OPERATING EXPENSE			1,764			1,754			1,712			1,658			1,626			1			8
Operating Margin				2,213			1,942			1,622			2,010			1,774			14			25
Credit Costs				817			877			875			823			736			(7	)		11
Operating Income Before Income Tax Expense				1,396			1,065			747			1,187			1,038			31			34
Income Tax Expense				513			388			280			427			389			32			32
OPERATING EARNINGS			$	883		$	677		$	467		$	760		$	649			30			36
Average Economic Capital			$	8,661		$	8,469		$	8,516		$	8,637		$	8,716			2			(1	)
Average Managed Assets (a)				217,304			202,341			188,478			178,825			175,555			7			24
Shareholder Value Added				621			424			207			496			386			46			61
Return on Economic Capital				41	%		32	%		22	%		35	%		30	%	900bp			1,100bp
Overhead Ratio				44			47			51			45			48			(300	)		(400	)
FULL-TIME EQUIVALENT EMPLOYEES				45,349			44,393			43,612			42,910			42,642			2	%		6	%
Shareholder value added:
Operating Earnings			$	883		$	677		$	467		$	760		$	649			30			36
Less: Preferred Dividends				2			3			2			3			2			(33	)		—
Adjusted Operating Earnings				881			674			465			757			647			31			36
Less: Cost of Capital				260			250			258			261			261			4			—
Total Shareholder Value Added			$	621		$	424		$	207		$	496		$	386			46			61
CHASE FINANCIAL SERVICES’ BUSINESSES
CHASE HOME FINANCE:
Operating Revenue			$	1,320		$	1,137		$	637		$	971		$	770			16			71
Operating Expense				375			361			380			312			312			4			20
Operating Earnings				568			431			146			385			261			32			118
CHASE CARDMEMBER SERVICES:
Operating Revenue			$	1,520		$	1,469		$	1,571		$	1,557		$	1,486			3			2
Operating Expense				540			535			610			547			523			1			3
Operating Earnings				173			153			140			232			166			13			4
CHASE AUTO FINANCE:
Operating Revenue			$	223		$	199		$	187		$	165		$	165			12			35
Operating Expense				72			67			65			61			61			7			18
Operating Earnings				68			39			36			24			79			74			(14	)
CHASE REGIONAL BANKING:
Operating Revenue			$	658		$	632		$	694		$	699		$	713			4			(8	)
Operating Expense				572			564			565			550			553			1			3
Operating Earnings				42			36			79			76			90			17			(53	)
CHASE MIDDLE MARKET:
Operating Revenue			$	355		$	364		$	358		$	377		$	362			(2	)		(2	)
Operating Expense				218			210			225			201			210			4			4
Operating Earnings				82			91			57			94			90			(10	)		(9	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

									YTD 2003
			YEAR TO DATE						Over (Under)
			2003			2002			2002
OPERATING INCOME STATEMENT
REVENUE:
Net Interest Income			$	4,742		$	4,058			17	%
Fees and Commissions				1,751			2,028			(14	)
Securities Gains				426			6		NM
All Other Revenue				754			363			108
		TOTAL OPERATING REVENUE		7,673			6,455			19
EXPENSE:
Compensation Expense				1,495			1,313			14
Noncompensation Expense				2,023			1,857			9
	TOTAL OPERATING EXPENSE			3,518			3,170			11
Operating Margin				4,155			3,285			26
Credit Costs				1,694			1,462			16
Operating Income Before Income Tax Expense				2,461			1,823			35
Income Tax Expense				901			688			31
OPERATING EARNINGS			$	1,560		$	1,135			37
Average Economic Capital			$	8,565		$	8,661			(1	)
Average Managed Assets (a)				209,864			175,574			20
Shareholder Value Added				1,045			615			70
Return on Economic Capital				37	%		26	%	1,100bp
Overhead Ratio				46			49			(300	)
FULL-TIME EQUIVALENT EMPLOYEES
Shareholder value added:
Operating Earnings			$	1,560		$	1,135			37	%
Less: Preferred Dividends				5			5			—
Adjusted Operating Earnings				1,555			1,130			38
Less: Cost of Capital				510			515			(1	)
Total Shareholder Value Added			$	1,045		$	615			70
CHASE FINANCIAL SERVICES’ BUSINESSES
CHASE HOME FINANCE:
Operating Revenue			$	2,457		$	1,297			89
Operating Expense				736			609			21
Operating Earnings				999			389			157
CHASE CARDMEMBER SERVICES:
Operating Revenue			$	2,989		$	2,838			5
Operating Expense				1,075			1,004			7
Operating Earnings				326			304			7
CHASE AUTO FINANCE:
Operating Revenue			$	422		$	336			26
Operating Expense				139			122			14
Operating Earnings				107			109			(2	)
CHASE REGIONAL BANKING:
Operating Revenue			$	1,290		$	1,440			(10	)
Operating Expense				1,136			1,111			2
Operating Earnings				78			204			(62	)
CHASE MIDDLE MARKET:
Operating Revenue			$	719		$	733			(2	)
Operating Expense				428			416			3
Operating Earnings				173			173			—

(a) Includes credit card receivables that have been securitized.

Page 13

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

																	2QTR 2003
																	Over (Under)
		2QTR			1QTR			4QTR			3QTR			2QTR
		2003			2003			2002			2002			2002			1Q 2003			2Q 2002
Chase Home Finance
Originations:
	Retail, Wholesale and Correspondent	$	55		$	41		$	40		$	29		$	22			34	%		150	%
	Correspondent Negotiated Transactions		23			21			21			7			5			10			360
Loans Serviced			437			432			426			435			436			1			—
End-of-Period Outstandings			74.5			67.3			63.6			55.6			53.6			11			39
Total Average Loans Owned			71.2			64.4			59.7			54.2			54.1			11			32
MSR Carrying Value			3.0			3.2			3.2			3.6			5.7			(6	)		(47	)
Number of Customers (in millions)			3.9			4.0			4.0			4.0			4.0			(3	)		(3	)
Net Charge-Off Ratio			0.18	%		0.20	%		0.27	%		0.21	%		0.30	%	(2)bp			(12)bp
Overhead Ratio			28			32			60			32			41			(400	)		(1,300	)
Chase Cardmember Services — Managed Basis
End-of-Period Outstandings		$	51.0		$	50.6		$	51.1		$	51.1		$	49.5			1	%		3	%
Average Outstandings			50.7			50.9			50.7			50.4			48.9			—			4
Total Purchases & Cash Advances (a)			22.2			20.7			21.2			23.0			20.9			7			6
Total Accounts (in millions)			30.3			29.8			29.2			28.6			28.1			2			8
Active Accounts (in millions)			16.4			16.5			16.5			16.5			16.3			(1	)		1
Net Charge-Off Ratio			6.01	%		5.87	%		5.75	%		5.59	%		6.41	%	14bp			(40)bp
30+ Day Delinquency Rate			4.40			4.59			4.67			4.47			4.17			(19	)		23
Overhead Ratio			36			36			39			35			35			—			100
Chase Auto Finance
Loan and Lease Receivables		$	41.7		$	41.1		$	37.4		$	33.8		$	29.3			1	%		42	%
Average Loan and Lease Receivables			41.7			39.6			35.8			31.5			29.6			5			41
Auto Origination Volume			7.9			7.4			6.8			7.6			5.2			7			52
Auto Market Share			6.8	%(c)		6.7	%		5.7	%		5.8	%		5.1	%	10bp			170bp
Net Charge-Off Ratio			0.37			0.48			0.53			0.59			0.38			(11	)		(1	)
Overhead Ratio			32			34			35			37			37			(200	)		(500	)
Chase Regional Banking
Total Average Deposits		$	74.5		$	72.6		$	70.1		$	70.1		$	69.9			3	%		7	%
Total Average Assets Under Management (b)			108.1	(c)		105.3			102.6			102.6			104.3			3			4
Number of Branches			527			527			528			533			533			—			(1	)
Number of ATMs			1,735	(c)		1,870			1,876			1,884			1,878			(7	)		(8	)
Overhead Ratio			87	%		89	%		82	%		79	%		78	%	(200)bp			900bp
Chase Middle Market
Total Average Loans		$	14.3		$	14.3		$	14.1		$	13.7		$	13.5			—	%		6	%
Total Average Deposits			26.9			28.0			25.8			24.0			24.0			(4	)		12
Nonperforming Average Loans as a % of Total Average Loans			1.24	%		1.42	%		1.59	%		1.95	%		1.89	%	(18)bp			(65)bp
Overhead Ratio			61			58			63			53			58			300			300

[Additional columns below]

[Continued from above table, first column(s) repeated]

								YTD 2003
		YEAR TO DATE						Over (Under)
		2003			2002			2002
Chase Home Finance
Originations:
	Retail, Wholesale and Correspondent	$	96		$	44			118	%
	Correspondent Negotiated Transactions		44			15			193
Loans Serviced			437			436			—
End-of-Period Outstandings			74.5			53.6			39
Total Average Loans Owned			67.1			56.2			19
MSR Carrying Value			3.0			5.7			(47	)
Number of Customers (in millions)			3.9			4.0			(3	)
Net Charge-Off Ratio			0.19	%		0.26	%	(7)bp
Overhead Ratio			30			47			(1,700	)
Chase Cardmember Services — Managed Basis
End-of-Period Outstandings		$	51.0		$	49.5			3	%
Average Outstandings			50.8			47.6			7
Total Purchases & Cash Advances (a)			42.9			39.8			8
Total Accounts (in millions)			30.3			28.1			8
Active Accounts (in millions)			16.4			16.3			1
Net Charge-Off Ratio			5.94	%		6.12	%	(18)bp
30+ Day Delinquency Rate			4.40			4.17			23
Overhead Ratio			36			35			100
Chase Auto Finance
Loan and Lease Receivables		$	41.7		$	29.3			42	%
Average Loan and Lease Receivables			40.7			29.8			37
Auto Origination Volume			15.3			10.9			40
Auto Market Share			6.8	%		5.1	%	170bp
Net Charge-Off Ratio			0.42			0.45			(3	)
Overhead Ratio			33			36			(300	)
Chase Regional Banking
Total Average Deposits		$	73.6		$	69.5			6	%
Total Average Assets Under Management (b)			106.9			104.6			2
Number of Branches			527			533			(1	)
Number of ATMs			1,735			1,878			(8	)
Overhead Ratio			88	%		77	%	1,100bp
Chase Middle Market
Total Average Loans		$	14.3		$	13.5			6	%
Total Average Deposits			27.5			23.4			18
Nonperforming Average Loans as a % of Total Average Loans			1.33	%		2.02	%	(69)bp
Overhead Ratio			60			57			300

(a) Sum of total customer purchases, cash advances and balance transfers.

(b) Assets under management includes deposits.

(c) Estimated

Page 14

SUPPLEMENTAL DETAIL

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

																2QTR 2003
																Over (Under)
			2QTR			1QTR		4QTR			3QTR			2QTR
			2003			2003		2002			2002			2002		1Q 2003			2Q 2002
NONINTEREST REVENUE
Investment Banking Fees:
	Advisory		$	156		$	166	$	233		$	143		$	189		(6	)%		(17	)%
	Underwriting:
		Equity		163			108		84			57			184		51			(11	)
		Debt		460			342		361			345			412		35			12
	Total		$	779		$	616	$	678		$	545		$	785		26			(1	)
Trading-Related Revenue: (a)
	Equities		$	151		$	194	$	(20	)	$	(211	)	$	120		(22	)		26
	Fixed Income and Other			1,805			1,721		1,273			576			1,016		5			78
	Total		$	1,956		$	1,915	$	1,253		$	365		$	1,136		2			72
Fees and Commissions:
	Investment Management, Custody and Processing Services		$	891		$	885	$	863		$	923		$	981		1			(9	)
	Credit Card Revenue			698			692		807			806			669		1			4
	Brokerage and Investment Services			321			277		273			321			333		16			(4	)
	Mortgage Servicing Fees, Net of Amortization, Writedowns and Derivatives Hedging			(94	)		90		(330	)		323			257	NM			NM
	Other Lending-Related Service Fees			127			124		160			128			128		2			(1	)
	Deposit Service Fees			284			285		277			288			273		—			4
	Other Fees			252			245		232			216			244		3			3
	Total		$	2,479		$	2,598	$	2,282		$	3,005		$	2,885		(5	)		(14	)
Other Revenue:
	Residential Mortgage Origination/Sales Activities		$	439		$	378	$	212		$	213		$	146		16			201
	All Other Revenue			58			103		78			206			146		(44	)		(60	)
	Total		$	497		$	481	$	290		$	419		$	292		3			70
NONINTEREST EXPENSE
Other Expense:
Professional Services			$	324		$	325	$	378		$	307		$	311		—			4
Outside Services				310			272		249			256			240		14			29
Marketing				167			164		220			179			144		2			16
Travel and Entertainment				102			89		96			102			112		15			(9	)
All Other				250			310		351			324			311		(19	)		(20	)
Total			$	1,153		$	1,160	$	1,294		$	1,168		$	1,118		(1	)		3

[Additional columns below]

[Continued from above table, first column(s) repeated]

								YTD 2003
			YEAR TO DATE					Over (Under)
			2003			2002		2002
NONINTEREST REVENUE
Investment Banking Fees:
	Advisory		$	322		$	380		(15	)%
	Underwriting:
		Equity		271			323		(16	)
		Debt		802			837		(4	)
	Total		$	1,395		$	1,540		(9	)
Trading-Related Revenue: (a)
	Equities		$	345		$	343		1
	Fixed Income and Other			3,526			2,513		40
	Total		$	3,871		$	2,856		36
Fees and Commissions:
	Investment Management, Custody and Processing Services		$	1,776		$	1,973		(10	)
	Credit Card Revenue			1,390			1,256		11
	Brokerage and Investment Services			598			637		(6	)
	Mortgage Servicing Fees, Net of Amortization, Writedowns and Derivatives Hedging			(4	)		305	NM
	Other Lending-Related Service Fees			251			258		(3	)
	Deposit Service Fees			569			563		1
	Other Fees			497			477		4
	Total		$	5,077		$	5,469		(7	)
Other Revenue:
	Residential Mortgage Origination/Sales Activities		$	817		$	246		232
	All Other Revenue			161			203		(21	)
	Total		$	978		$	449		118
NONINTEREST EXPENSE
Other Expense:
Professional Services			$	649		$	618		5
Outside Services				582			489		19
Marketing				331			290		14
Travel and Entertainment				191			213		(10	)
All Other				560			716		(22	)
Total			$	2,313		$	2,326		(1	)

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

Page 15

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

																		Jun 30, 2003
																		Over (Under)
			Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
			2003			2003			2002			2002			2002			2003			2002
ASSETS
Cash and Due from Banks			$	23,398		$	22,229		$	19,218		$	18,159		$	21,878			5	%		7	%
Deposits with Banks				10,393			6,896			8,942			13,447			10,517			51			(1	)
Federal Funds Sold and Securities Purchased under Resale Agreements				69,748			69,764			65,809			63,748			71,740			—			(3	)
Securities Borrowed				41,067			39,188			34,143			35,283			48,429			5			(15	)
Trading Assets:
	Debt and Equity Instruments			139,275			146,783			165,199			151,264			159,746			(5	)		(13	)
	Derivative Receivables			93,602			86,649			83,102			87,518			69,858			8			34
Securities				82,549			85,178			84,463			79,768			64,526			(3	)		28
Loans (Net of Allowance for Loan Losses)				222,307			212,256			211,014			206,215			207,080			5			7
Private Equity Investments				7,901			8,170			8,228			8,013			8,229			(3	)		(4	)
Goodwill				8,132			8,122			8,096			8,108			8,089			—			1
Mortgage Servicing Rights				2,967			3,235			3,230			3,606			5,689			(8	)		(48	)
Other Intangibles:
	Purchased Credit Card Relationships			1,141			1,205			1,269			1,337			1,426			(5	)		(20	)
	All Other Intangibles			320			294			307			311			313			9			2
Other Assets				99,803			65,187			65,780			64,982			63,026			53			58
TOTAL ASSETS			$	802,603		$	755,156		$	758,800		$	741,759		$	740,546			6			8
LIABILITIES
Deposits:
	Noninterest-Bearing		$	88,096		$	77,822		$	82,029		$	74,724		$	73,529			13			20
	Interest-Bearing			230,152			222,845			222,724			217,447			220,300			3			4
		Total Deposits		318,248			300,667			304,753			292,171			293,829			6			8
Federal Funds Purchased and Securities Sold under Repurchase Agreements				155,330			160,221			169,483			154,745			162,656			(3	)		(5	)
Commercial Paper				12,382			14,039			16,591			13,775			14,561			(12	)		(15	)
Other Borrowed Funds				12,176			12,848			8,946			12,646			17,352			(5	)		(30	)
Trading Liabilities:
	Debt and Equity Instruments			72,825			64,427			66,864			71,607			67,952			13			7
	Derivative Payables			72,831			64,804			66,227			70,593			55,575			12			31
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)				64,072			46,776			38,440			38,233			38,083			37			68
Long-Term Debt				44,479			42,851			39,751			39,113			42,363			4			5
Guaranteed Preferred Beneficial Interests in the Firm’s Junior Subordinated Deferrable Interest Debentures				5,439			5,439			5,439			5,439			5,439			—			—
TOTAL LIABILITIES				757,782			712,072			716,494			698,322			697,810			6			9
STOCKHOLDERS’ EQUITY
Preferred Stock				1,009			1,009			1,009			1,009			1,009			—			—
Common Stock				2,036			2,032			2,024			2,023			2,020			—			1
Capital Surplus				12,898			12,477			13,222			13,113			13,111			3			(2	)
Retained Earnings				27,633			26,538			25,851			26,940			27,605			4			—
Accumulated Other Comprehensive Income				1,293			1,113			1,227			1,465			79			16		NM
Treasury Stock, at Cost				(48	)		(85	)		(1,027	)		(1,113	)		(1,088	)		44			96
TOTAL STOCKHOLDERS’ EQUITY				44,821			43,084			42,306			43,437			42,736			4			5
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			$	802,603		$	755,156		$	758,800		$	741,759		$	740,546			6			8

Page 16

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

																2QTR 2003
																Over (Under)
	2QTR			1QTR			4QTR			3QTR			2QTR
	2003			2003			2002			2002			2002			1Q 2003			2Q 2002
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	7,061		$	9,998		$	13,074		$	13,071		$	9,287			(29	)%		(24	)%
Federal Funds Sold and Securities Purchased under Resale Agreements		76,690			87,657			88,974			83,402			83,317			(13	)		(8	)
Securities and Trading Assets		225,333			246,007			229,120			205,232			201,512			(8	)		12
Securities Borrowed		42,160			38,654			40,673			41,881			46,537			9			(9	)
Loans		219,950			215,882			211,489			205,037			211,495			2			4
Total Interest-Earning Assets		571,194			598,198			583,330			548,623			552,148			(5	)		3
Noninterest-Earning Assets		193,461			180,040			171,836			175,743			182,798			7			6
TOTAL ASSETS	$	764,655		$	778,238		$	755,166		$	724,366		$	734,946			(2	)		4
LIABILITIES
Interest-Bearing Deposits	$	225,950		$	225,389		$	215,061		$	214,932		$	221,687			—			2
Federal Funds Purchased and Securities Sold under Repurchase Agreements		164,386			191,163			182,526			170,266			166,919			(14	)		(2	)
Commercial Paper		12,929			14,254			13,469			13,740			18,514			(9	)		(30	)
Other Borrowings (a)		63,524			68,453			65,591			66,014			78,614			(7	)		(19	)
Long-Term Debt		49,219			46,001			44,621			45,525			42,482			7			16
Total Interest-Bearing Liabilities		516,008			545,260			521,268			510,477			528,216			(5	)		(2	)
Noninterest-Bearing Liabilities		204,879			190,111			190,919			170,712			164,832			8			24
TOTAL LIABILITIES		720,887			735,371			712,187			681,189			693,048			(2	)		4
PREFERRED STOCK OF SUBSIDIARY (b)		—			—			—			—			—		NM			NM
Preferred Stock		1,009			1,009			1,009			1,009			1,009			—			—
Common Stockholders’ Equity		42,759			41,858			41,970			42,168			40,889			2			5
TOTAL STOCKHOLDERS’ EQUITY		43,768			42,867			42,979			43,177			41,898			2			4
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY AND STOCKHOLDERS’ EQUITY	$	764,655		$	778,238		$	755,166		$	724,366		$	734,946			(2	)		4
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		2.39	%		2.58	%		1.48	%		2.65	%		3.31	%	(19)bp			(92)bp
Federal Funds Sold and Securities Purchased under Resale Agreements		1.85			2.19			2.33			2.52			2.58			(34	)		(73	)
Securities and Trading Assets		4.64			4.64			4.62			4.98			5.18			—			(54	)
Securities Borrowed		0.75			1.02			1.42			1.70			1.49			(27	)		(74	)
Loans		5.12			5.32			5.29			5.73			5.95			(20	)		(83	)
Total Interest-Earning Assets		4.13			4.26			4.22			4.58			4.74			(13	)		(61	)
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		1.69			1.92			2.17			2.62			2.38			(23	)		(69	)
Federal Funds Purchased and Securities Sold under Repurchase Agreements		1.41			1.54			1.71			2.06			2.06			(13	)		(65	)
Commercial Paper		1.22			1.30			1.53			1.81			1.84			(8	)		(62	)
Other Borrowings		5.39			4.99			4.69			5.06			5.24			40			15
Long-Term Debt		3.14			3.23			3.68			3.22			3.10			(9	)		4
Total Interest-Bearing Liabilities		2.18			2.27			2.44			2.78			2.75			(9	)		(57	)
INTEREST RATE SPREAD		1.95	%		1.99	%		1.78	%		1.80	%		1.99	%		(4	)		(4	)
NET INTEREST MARGIN		2.16	%		2.19	%		2.04	%		1.99	%		2.11	%		(3	)		5
NET INTEREST MARGIN ADJUSTED FOR SECURITIZATIONS		2.47	%		2.49	%		2.36	%		2.31	%		2.36	%		(2	)		11

[Additional columns below]

[Continued from above table, first column(s) repeated]

							YTD 2003
	YEAR TO DATE						Over (Under)
	2003			2002			2002
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	8,521		$	10,798			(21	)%
Federal Funds Sold and Securities Purchased under Resale Agreements		82,143			82,166			—
Securities and Trading Assets		235,613			191,288			23
Securities Borrowed		40,417			44,152			(8	)
Loans		217,927			214,654			2
Total Interest-Earning Assets		584,621			543,058			8
Noninterest-Earning Assets		186,788			183,783			2
TOTAL ASSETS	$	771,409		$	726,841			6
LIABILITIES
Interest-Bearing Deposits	$	225,671		$	219,879			3
Federal Funds Purchased and Securities Sold under Repurchase Agreements		177,701			160,327			11
Commercial Paper		13,588			18,706			(27	)
Other Borrowings (a)		65,974			73,042			(10	)
Long-Term Debt		47,619			42,762			11
Total Interest-Bearing Liabilities		530,553			514,716			3
Noninterest-Bearing Liabilities		197,536			170,285			16
TOTAL LIABILITIES		728,089			685,001			6
PREFERRED STOCK OF SUBSIDIARY (b)		—			176		NM
Preferred Stock		1,009			1,009			—
Common Stockholders’ Equity		42,311			40,655			4
TOTAL STOCKHOLDERS’ EQUITY		43,320			41,664			4
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY AND STOCKHOLDERS’ EQUITY	$	771,409		$	726,841			6
AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		2.50	%		3.11	%		(61	)bp
Federal Funds Sold and Securities Purchased under Resale Agreements		2.03			2.52			(49	)
Securities and Trading Assets		4.64			5.26			(62	)
Securities Borrowed		0.88			1.63			(75	)
Loans		5.22			5.91			(69	)
Total Interest-Earning Assets		4.20			4.76			(56	)
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		1.80			2.44			(64	)
Federal Funds Purchased and Securities Sold under Repurchase Agreements		1.48			2.07			(59	)
Commercial Paper		1.26			1.80			(54	)
Other Borrowings		5.18			5.04			14
Long-Term Debt		3.18			3.22			(4	)
Total Interest-Bearing Liabilities		2.23			2.73			(50	)
INTEREST RATE SPREAD		1.97	%		2.03	%		(6	)
NET INTEREST MARGIN		2.18	%		2.17	%		1
NET INTEREST MARGIN ADJUSTED FOR SECURITIZATIONS		2.48	%		2.41	%		7

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

Page 17

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

												June 30, 2003
												Over (Under)
		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31			Jun 30
		2003		2003		2002		2002		2002		2003			2002
CREDIT EXPOSURE
COMMERCIAL
Loans — U.S		$	55,693	$	54,156	$	56,667	$	62,901	$	67,124		3	%		(17	)%
Loans — Non-U.S			35,363		34,290		34,881		34,585		37,577		3			(6	)
Total Commercial Loans			91,056		88,446		91,548		97,486		104,701		3			(13	)
Derivative Receivables			93,602		86,649		83,102		87,518		69,858		8			34
Other Receivables (a)			108		108		108		1,130		1,130		—			(90	)
TOTAL COMMERCIAL CREDIT-RELATED ASSETS			184,766		175,203		174,758		186,134		175,689		5			5
Lending-Related Commitments			229,119		230,698		238,120		238,150		239,240		(1	)		(4	)
TOTAL COMMERCIAL CREDIT EXPOSURE (b)			413,885		405,901		412,878		424,284		414,929		2			—
CONSUMER
1-4 Family Residential Mortgages — First Liens			57,593		51,711		49,357		41,934		39,602		11			45
Home Equity			17,327		15,363		14,643		13,741		13,067		13			33
	1-4 Family Residential Mortgages		74,920		67,074		64,000		55,675		52,669		12			42
Credit Card — Reported (c)			16,578		17,509		19,677		20,508		21,036		(5	)		(21	)
Credit Card Securitizations (c)			33,789		32,377		30,722		29,843		27,499		4			23
	Credit Card — Managed		50,367		49,886		50,399		50,351		48,535		1			4
Auto Financings			38,151		36,865		33,615		30,612		26,666		3			43
Other Consumer (d)			6,689		7,577		7,524		7,197		7,014		(12	)		(5	)
TOTAL MANAGED CONSUMER LOANS			170,127		161,402		155,538		143,835		134,884		5			26
TOTAL CREDIT PORTFOLIO		$	584,012	$	567,303	$	568,416	$	568,119	$	549,813		3			6

(a)	Represents at June 30, 2003 the Enron-related letter of credit, which continues to be the subject of litigation and was classified in Other Assets.
(b)	Credit exposure excludes risk participations and does not reflect the benefit of credit derivative hedges or liquid collateral held against derivatives contracts.
(c)	At June 30, 2003 and March 31, 2003, credit card securitizations includes $1,019 million and $978 million, respectively, of accrued interest and fees on securitized credit card loans that were classified in Other Assets, consistent with the FASB Staff Position, Accounting for Accrued Interest Receivable Related to Securitized and Sold Receivables under SFAS 140. Prior to March 31, 2003, these balances were classified in Credit Card Loans.
(d)	Consists of manufactured housing loans, installment loans (direct and indirect types of consumer finance), student loans, unsecured revolving lines of credit and non-U.S. consumer loans.

Page 18

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

																	Jun 30, 2003
																	Over (Under)
		Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31			Jun 30
		2003			2003			2002			2002			2002			2003			2002
NONPERFORMING ASSETS AND RATIOS
COMMERCIAL
Loans — U.S		$	1,810		$	2,029		$	2,059		$	1,865		$	1,402			(11	)%		29	%
Loans — Non-U.S			1,153			1,257			1,613			1,731			1,110			(8	)		4
Total Commercial Loans			2,963			3,286			3,672			3,596			2,512			(10	)		18
Derivative Receivables			276			277			289			169			144			—			92
Other Receivables (a)			108			108			108			1,130			1,130			—			(90	)
TOTAL COMMERCIAL CREDIT EXPOSURE			3,347			3,671			4,069			4,895			3,786			(9	)		(12	)
CONSUMER
1-4 Family Residential Mortgages — First Liens			251			249			259			265			226			1			11
Home Equity			52			54			53			49			49			(4	)		6
	1-4 Family Residential Mortgages		303			303			312			314			275			—			10
Credit Card — Reported			13			14			15			17			18			(7	)		(28	)
Credit Card Securitizations			—			—			—			—			—		NM			NM
	Credit Card — Managed		13			14			15			17			18			(7	)		(28	)
Auto Financings			111			112			118			108			103			(1	)		8
Other Consumer (b)			66			66			76			68			54			—			22
TOTAL MANAGED CONSUMER LOANS			493			495			521			507			450			—			10
Assets Acquired in Loan Satisfactions			227			225			190			140			142			1			60
TOTAL CREDIT PORTFOLIO (c)		$	4,067		$	4,391		$	4,780		$	5,542		$	4,378			(7	)		(7	)
TOTAL NONPERFORMING ASSETS TO TOTAL ASSETS			0.51	%		0.58	%		0.63	%		0.75	%		0.59	%	(7)bp			(8)bp
PAST DUE 90 DAYS AND OVER AND ACCRUING
COMMERCIAL
Loans — U.S		$	35		$	37		$	57		$	32		$	29			(5	)%		21	%
Loans — Non-U.S			—			2			—			1			2		NM			NM
Derivative Receivables			—			—			—			—			—		NM			NM
TOTAL COMMERCIAL CREDIT EXPOSURE			35			39			57			33			31			(10	)		13
CONSUMER
1-4 Family Residential Mortgages — First Liens			—			—			—			1			—		NM			NM
Home Equity			—			—			—			—			—		NM			NM
	1-4 Family Residential Mortgages		—			—			—			1			—		NM			NM
Credit Card — Reported (d)			229			269			451			447			505			(15	)		(55	)
Credit Card Securitizations (d)			792			808			630			526			457			(2	)		73
	Credit Card — Managed		1,021			1,077			1,081			973			962			(5	)		6
Auto Financings			—			—			—			—			—		NM			NM
Other Consumer (b)			21			22			22			26			37			(5	)		(43	)
TOTAL MANAGED CONSUMER LOANS			1,042			1,099			1,103			1,000			999			(5	)		4
TOTAL CREDIT PORTFOLIO		$	1,077		$	1,138		$	1,160		$	1,033		$	1,030			(5	)		5

(a)	Represents at June, 2003 the Enron-related letter of credit, which continues to be the subject of litigation and was classified in Other Assets.
(b)	Consists of manufactured housing loans, installment loans (direct and indirect types of consumer finance), student loans, unsecured revolving lines of credit and non-U.S. consumer loans.
(c)	Nonperforming assets at June 30, 2003 have not been reduced for credit protection (single name credit default swaps and collateralized loan obligations) relating to nonperforming counterparties in amounts aggregating $97 million at June 30, 2003. Nonperforming assets exclude nonaccrual loans held for sale (“HFS”) of $45 million at June 30, 2003. HFS loans are carried at the lower of cost or market, and declines in value are recorded in Other Revenue.
(d)	At June 30, 2003 and March 31, 2003, credit card securitizations includes $141 million and $144 million, respectively, of accrued interest and fees on securitized credit card loans past due 90 days and over and accruing that were classified in Other Assets, consistent with the FASB Staff Position, Accounting for Accrued Interest Receivable Related to Securitized and Sold Receivables under SFAS 140. Prior to March 31, 2003, these balances were classified in Credit Card Loans.

Page 19

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

																		2QTR 2003
																		Over (Under)
			2QTR			1QTR			4QTR			3QTR			2QTR
			2003			2003			2002			2002			2002			1Q 2003			2Q 2002
NET CHARGE-OFFS
COMMERCIAL
Loans — U.S			$	185		$	118		$	226		$	307		$	181			57	%		2	%
Loans — Non-U.S				72			174			208			527			112			(59	)		(36	)
Total Commercial Loans				257			292			434			834			293			(12	)		(12	)
Lending-Related Commitments				—			—			212			—			—		NM			NM
TOTAL COMMERCIAL CREDIT EXPOSURE				257			292			646			834			293			(12	)		(12	)
CONSUMER
1-4 Family Residential Mortgages — First Liens				5			5			11			6			21			—			(76	)
Home Equity				6			2			4			1			—			200		NM
	1-4 Family Residential Mortgages			11			7			15			7			21			57			(48	)
Credit Card — Reported				268			275			286			333			433			(3	)		(38	)
Credit Card Securitizations				480			457			430			354			334			5			44
		Credit Card — Managed		748			732			716			687			767			2			(2	)
Auto Financings				39			46			47			47			29			(15	)		34
Other Consumer (a)				39			50			54			45			45			(22	)		(13	)
TOTAL MANAGED CONSUMER LOANS				837			835			832			786			862			—			(3	)
TOTAL CREDIT PORTFOLIO			$	1,094		$	1,127		$	1,478		$	1,620		$	1,155			(3	)		(5	)
NET CHARGE-OFF RATES — ANNUALIZED
COMMERCIAL
Loans — U.S				1.40	%		0.86	%		1.61	%		1.95	%		1.13	%	54bp			27bp
Loans — Non-U.S				0.88			2.07			2.30			6.66			1.24			(119	)		(36	)
Total Commercial Loans				1.20			1.32			1.88			3.53			1.17			(12	)		3
Lending-Related Commitments				—			—			0.35			—			—			—			—
TOTAL COMMERCIAL CREDIT EXPOSURE				0.33			0.37			0.78			1.00			0.34			(4	)		(1	)
CONSUMER
1-4 Family Residential Mortgages — First Liens				0.04			0.04			0.09			0.06			0.20			—			(16	)
Home Equity				0.15			0.05			0.11			0.03			—			10			15
	1-4 Family Residential Mortgages			0.06			0.04			0.10			0.05			0.16			2			(10	)
Credit Card — Reported				6.22			6.17			5.90			6.27			7.67			5			(145	)
Credit Card Securitizations				5.90			5.82			5.58			4.95			5.30			8			60
		Credit Card — Managed		6.01			5.95			5.70			5.51			6.42			6			(41	)
Auto Financings				0.41			0.53			0.58			0.64			0.43			(12	)		(2	)
Other Consumer (a)				2.15			2.54			2.77			2.53			2.35			(39	)		(20	)
TOTAL MANAGED CONSUMER LOANS				2.01			2.14			2.20			2.23			2.53			(13	)		(52	)
TOTAL MANAGED LOANS				1.74			1.85			2.08			2.75			1.96			(11	)		(22	)
TOTAL CREDIT PORTFOLIO				0.91			0.95			1.22			1.36			0.97			(4	)		(6	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

									YTD 2003
			YEAR TO DATE						Over (Under)
			2003			2002			2002
NET CHARGE-OFFS
COMMERCIAL
Loans — U.S			$	303		$	388			(22	)%
Loans — Non-U.S				246			225			9
Total Commercial Loans				549			613			(10	)
Lending-Related Commitments				—			—		NM
TOTAL COMMERCIAL CREDIT EXPOSURE				549			613			(10	)
CONSUMER
1-4 Family Residential Mortgages — First Liens				10			32			(69	)
Home Equity				8			2			300
	1-4 Family Residential Mortgages			18			34			(47	)
Credit Card — Reported				543			770			(29	)
Credit Card Securitizations				937			655			43
		Credit Card — Managed		1,480			1,425			4
Auto Financings				85			67			27
Other Consumer (a)				89			90			(1	)
TOTAL MANAGED CONSUMER LOANS				1,672			1,616			3
TOTAL CREDIT PORTFOLIO			$	2,221		$	2,229			—
NET CHARGE-OFF RATES — ANNUALIZED
COMMERCIAL
Loans — U.S				1.13	%		1.18	%	(5)bp
Loans — Non-U.S				1.48			1.29			19
Total Commercial Loans				1.26			1.22			4
Lending-Related Commitments				—			—			—
TOTAL COMMERCIAL CREDIT EXPOSURE				0.35			0.36			(1	)
CONSUMER
1-4 Family Residential Mortgages — First Liens				0.04			0.15			(11	)
Home Equity				0.10			0.03			7
	1-4 Family Residential Mortgages			0.05			0.12			(7	)
Credit Card — Reported				6.19			6.71			(52	)
Credit Card Securitizations				5.85			5.61			24
		Credit Card — Managed		5.97			6.15			(18	)
Auto Financings				0.47			0.50			(3	)
Other Consumer (a)				2.35			2.25			10
TOTAL MANAGED CONSUMER LOANS				2.07			2.38			(31	)
TOTAL MANAGED LOANS				1.79			1.89			(10	)
TOTAL CREDIT PORTFOLIO				0.93			0.93			—

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

Page 20

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

																	2QTR 2003
																	Over (Under)
		2QTR			1QTR			4QTR			3QTR			2QTR
		2003			2003			2002			2002			2002			1Q 2003			2Q 2002
SUMMARY OF CHANGES IN THE ALLOWANCE
LOANS:
Beginning Balance		$	5,215		$	5,350		$	5,263		$	5,006		$	5,005			(3	)%		4	%
	Net Charge-Offs		(614	)		(670	)		(836	)		(1,266	)		(821	)		8			25
	Provision for Loan Losses		487			670			921			1,544			821			(27	)		(41	)
	Other		(1	)		(135	)		2			(21	)		1			99		NM
Ending Balance		$	5,087		$	5,215		$	5,350		$	5,263		$	5,006			(2	)		2
LENDING-RELATED COMMITMENTS:
Beginning Balance		$	436		$	363		$	573		$	281		$	281			20			55
	Net Charge-Offs		—			—			(212	)		—			—		NM			NM
	Provision for Lending-Related Commitments		(52	)		73			—			292			—		NM			NM
	Other		—			—			2			—			—		NM			NM
Ending Balance		$	384		$	436		$	363		$	573		$	281			(12	)		37
ALLOWANCE COMPONENTS AND RATIOS
LOANS:
Commercial — Specific		$	1,371		$	1,528		$	1,603		$	1,525		$	1,212			(10	)%		13	%
Commercial — Expected			548			590			613			554			594			(7	)		(8	)
	Total Commercial		1,919			2,118			2,216			2,079			1,806			(9	)		6
Consumer Expected			2,226			2,255			2,360			2,365			2,387			(1	)		(7	)
	Total Specific and Expected		4,145			4,373			4,576			4,444			4,193			(5	)		(1	)
Residual Component			942			842			774			819			813			12			16
	Total Allowance for Loans Losses	$	5,087		$	5,215		$	5,350		$	5,263		$	5,006			(2	)		2
LENDING-RELATED COMMITMENTS:
Commercial — Specific		$	252		$	305		$	237		$	426		$	165			(17	)		53
Commercial — Expected			85			84			87			83			78			1			9
	Total Specific and Expected		337			389			324			509			243			(13	)		39
Residual Component			47			47			39			64			38			—			24
Total Allowance for Lending-Related Commitments		$	384		$	436		$	363		$	573		$	281			(12	)		37
Allowance for Loan Losses to Total Loans			2.24	%		2.40	%		2.47	%		2.49	%		2.36	%	(16)bp			(12)bp
Allowance for Loan Losses to Total Nonperforming Loans			147			138			128			128			169			900			(2,200	)
Allowance for Loan Losses to Total Nonperforming Assets			125			119			112			95			114			600			1,100
CREDIT COSTS
Loans:
	Commercial	$	58		$	194		$	526		$	1,107		$	344			(70	)%		(83	)%
	Consumer		329			411			395			438			391			(20	)		(16	)
Total Specific and Expected			387			605			921			1,545			735			(36	)		(47	)
	Residual Component		100			65			—			(1	)		86			54			16
Total Provision for Loan Losses			487			670			921			1,544			821			(27	)		(41	)
Lending-Related Commitments:
	Commercial		(52	)		65			25			266			(1	)	NM			NM
	Residual Component		—			8			(25	)		26			1		NM			NM
Total Provision for Lending-Related Commitments			(52	)		73			—			292			—		NM			NM
Securitized Credit Losses			480			457			430			354			334			5			44
Total Managed Credit Costs		$	915		$	1,200		$	1,351		$	2,190		$	1,155			(24	)		(21	)

Page 21

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

Page 22

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

		Jun 30					Mar 31					Dec 31					Sep 30
		2003					2003					2002					2002
		$		%			$		%			$		%			$		%
TELECOM AND RELATED INDUSTRIES (a)
Credit Exposure (b)		$	16,059		100	%	$	16,739		100	%	$	16,770		100	%	$	18,208		100	%
Risk Profile of Credit Exposure:
Investment-Grade			10,715		67	%		11,061		66	%		9,376		56	%		10,107		56	%
Noninvestment-Grade:
	Noncriticized		3,201		20	%		3,381		20	%		5,076		30	%		4,928		27	%
	Criticized Performing		1,738		11	%		1,756		11	%		1,487		9	%		2,421		13	%
	Criticized Nonperforming (c)		405		2	%		541		3	%		831		5	%		752		4	%
CABLE INDUSTRY
Credit Exposure (b)		$	5,143		100	%	$	5,312		100	%	$	5,982		100	%	$	5,427		100	%
Risk Profile of Credit Exposure:
Investment-Grade			1,909		37	%		2,112		40	%		2,681		45	%		1,913		35	%
Noninvestment-Grade:
	Noncriticized		908		18	%		977		18	%		1,096		18	%		1,385		26	%
	Criticized Performing		1,833		36	%		1,717		32	%		1,673		28	%		1,735		32	%
	Criticized Nonperforming (c)		493		9	%		506		10	%		532		9	%		394		7	%
MERCHANT ENERGY AND RELATED INDUSTRIES (d)
Credit Exposure (b)		$	5,915		100	%	$	6,170		100	%	$	6,230		100	%	$	6,241		100	%
Risk Profile of Credit Exposure:
Investment-Grade			3,996		68	%		3,744		61	%		3,580		57	%		3,470		56	%
Noninvestment-Grade:
	Noncriticized		1,214		20	%		1,066		17	%		423		7	%		1,196		19	%
	Criticized Performing		463		8	%		1,156		19	%		1,849		30	%		1,405		22	%
	Criticized Nonperforming (c)		242		4	%		204		3	%		378		6	%		170		3	%

[Additional columns below]

[Continued from above table, first column(s) repeated]

							Jun 30, 2003
							Over (Under)
		Jun 30					Mar 31			Jun 30
		2002					2003			2002
		$		%
TELECOM AND RELATED INDUSTRIES (a)
Credit Exposure (b)		$	19,973		100	%		(4	)%		(20	)%
Risk Profile of Credit Exposure:
Investment-Grade			11,677		58	%		(3	)		(8	)
Noninvestment-Grade:
	Noncriticized		5,865		29	%		(5	)		(45	)
	Criticized Performing		2,116		11	%		(1	)		(18	)
	Criticized Nonperforming (c)		315		2	%		(25	)		29
CABLE INDUSTRY
Credit Exposure (b)		$	4,556		100	%		(3	)		13
Risk Profile of Credit Exposure:
Investment-Grade			1,371		30	%		(10	)		39
Noninvestment-Grade:
	Noncriticized		1,878		41	%		(7	)		(52	)
	Criticized Performing		1,209		27	%		7			52
	Criticized Nonperforming (c)		98		2	%		(3	)		403
MERCHANT ENERGY AND RELATED INDUSTRIES (d)
Credit Exposure (b)		$	6,201		100	%		(4	)		(5	)
Risk Profile of Credit Exposure:
Investment-Grade			3,682		59	%		7			9
Noninvestment-Grade:
	Noncriticized		2,141		35	%		14			(43	)
	Criticized Performing		358		6	%		(60	)		29
	Criticized Nonperforming (c)		20		0	%		19		NM

Note: The risk profile is based on JPMorgan Chase’s internal risk ratings, which generally correspond to the following ratings as defined by Standard & Poor’s / Moody’s:
Investment Grade: AAA / Aaa to BBB- / Baa3
Noninvestment Grade: BB+ / Ba1 to B- / B3
Criticized: CCC+ / Caa1 & below

(a)	Telecom and Related Industries includes other companies with an interdependence upon the telecommunications sector.
(b)	Credit exposure excludes risk participations and does not reflect the benefit of credit derivative hedges or liquid collateral held against derivatives contracts.
(c)	Nonperforming assets exclude nonaccrual HFS loans, which are carried at the lower of cost or market and declines in value are recorded in Other Revenue.
(d)	These amounts exclude Enron-related exposure.

Page 23

J.P. MORGAN CHASE & CO.
CAPITAL

																		2QTR 2003
																		Over (Under)
			2QTR			1QTR			4QTR			3QTR			2QTR
			2003			2003			2002			2002			2002			1Q 2003			2Q 2002
AVAILABLE VERSUS REQUIRED ECONOMIC CAPITAL
(in billions)
Common Stockholders’ Equity			$	42.8	(a)	$	41.9		$	42.0		$	42.2		$	40.9			2	%		5	%
Required Economic Capital
	Credit Risk			14.4	(a)		15.1			14.7			13.5			13.5			(5	)		7
	Market Risk			4.3	(a)		4.2			4.1			4.8			4.9			2			(12	)
	Operational Risk			3.5	(a)		3.5			3.5			3.5			3.5			—			—
	Business Risk			1.7	(a)		1.7			1.8			1.8			1.8			—			(6	)
	Private Equity Risk			5.4	(a)		5.4			5.5			5.7			5.9			—			(8	)
		Economic Risk Capital		29.3	(a)		29.9			29.6			29.3			29.6			(2	)		(1	)
	Goodwill/Intangibles			8.9	(a)		8.9			8.9			8.9			8.9			—			—
	Asset Capital Tax			3.9	(a)		4.0			3.9			3.8			3.9			(3	)		—
		Capital Against Nonrisk Factors		12.8	(a)		12.9			12.8			12.7			12.8			(1	)		—
Diversification Effect				(5.0	)(a)		(5.0	)		(4.9	)		(5.3	)		(5.4	)		—			7
Total Required Economic Capital				37.1	(a)		37.8			37.5			36.7			37.0			(2	)		—
Capital In Excess of Required Economic Capital			$	5.7	(a)	$	4.1		$	4.5		$	5.5		$	3.9			39			46
COMMON SHARES OUTSTANDING
(in millions)
Basic Weighted-Average Shares Outstanding				2,005.6			1,999.8			1,990.0			1,986.0			1,982.6			—			1
Diluted Weighted-Average Shares Outstanding				2,050.6			2,021.9			2,008.5			2,005.8			2,016.0			1			2
Common Shares Outstanding — at Period End				2,035.1			2,030.0			1,998.7			1,995.9			1,993.4			—			2
CASH DIVIDENDS DECLARED PER SHARE			$	0.34		$	0.34		$	0.34		$	0.34		$	0.34			—			—
BOOK VALUE PER SHARE				21.53			20.73			20.66			21.26			20.93			4			3
SHARE PRICE
	High		$	36.52		$	28.29		$	26.14		$	33.68		$	38.75			29			(6	)
	Low			23.75			20.13			15.26			17.86			30.15			18			(21	)
	Close			34.18			23.71			24.00			18.99			33.92			44			1
CAPITAL RATIOS
(in millions, except ratios)
Tier 1 Capital			$	41,000	(a)	$	38,442		$	37,570		$	38,459		$	38,949			7			5
Total Capital				59,000	(a)		55,702			54,495			55,024			55,893			6			6
Risk-Weighted Assets				483,000	(a)		455,549			455,948			442,586			441,623			6			9
Adjusted Average Assets				751,000	(a)		764,677			741,862			711,703			723,566			(2	)		4
Tier 1 Capital Ratio				8.5	%(a)		8.4	%		8.2	%		8.7	%		8.8	%	10bp			(30)bp
Total Capital Ratio				12.2	(a)		12.2			12.0			12.4			12.7			—			(50	)
Tier 1 Leverage Ratio				5.5	(a)		5.0			5.1			5.4			5.4			50			10

[Additional columns below]

[Continued from above table, first column(s) repeated]

									YTD 2003
			YEAR TO DATE						Over (Under)
			2003			2002			2002
AVAILABLE VERSUS REQUIRED ECONOMIC CAPITAL
(in billions)
Common Stockholders’ Equity			$	42.3	(a)	$	40.7			4	%
Required Economic Capital
	Credit Risk			14.7	(a)		13.9			6
	Market Risk			4.3	(a)		5.1			(16	)
	Operational Risk			3.5	(a)		3.5			—
	Business Risk			1.7	(a)		1.8			(6	)
	Private Equity Risk			5.4	(a)		5.9			(8	)
		Economic Risk Capital		29.6	(a)		30.2			(2	)
	Goodwill/Intangibles			8.9	(a)		8.8			1
	Asset Capital Tax			4.0	(a)		3.8			5
		Capital Against Nonrisk Factors		12.9	(a)		12.6			2
	Diversification Effect			(5.1	)(a)		(5.5	)		7
	Total Required Economic Capital			37.4	(a)		37.3			—
	Capital In Excess of Required Economic Capital		$	4.9	(a)	$	3.4			44
COMMON SHARES OUTSTANDING
(in millions)
Basic Weighted-Average Shares Outstanding				2,002.8			1,980.4			1
Diluted Weighted-Average Shares Outstanding				2,036.3			2,011.0			1
Common Shares Outstanding — at Period End				2,035.1			1,993.4			2
CASH DIVIDENDS DECLARED PER SHARE			$	0.68		$	0.68			—
BOOK VALUE PER SHARE
SHARE PRICE
	High		$	36.52		$	39.68			(8	)
	Low			20.13			26.70			(25	)

(a) Estimated

Page 24

J.P. MORGAN CHASE & CO.
MARKET RISK – AVERAGE VAR

																	2QTR 2003
																	Over (Under)
		2QTR			1QTR			4QTR			3QTR			2QTR
(in millions)		2003			2003			2002			2002			2002			1Q 2003			2Q 2002
Trading Portfolio:
	Interest Rate	$	62.4		$	54.2		$	66.5		$	69.2		$	71.6			15	%		(13	)%
	Foreign Exchange		15.1			17.3			14.0			11.6			11.3			(13	)		34
	Equities		9.1			11.0			8.5			18.3			18.4			(17	)		(51	)
	Commodities		3.0			2.2			2.1			2.8			4.2			36			(29	)
	Hedge Fund Investment		4.5			3.5			3.4			3.4			2.9			29			55
Less: Portfolio Diversification			(35.3	)		(34.5	)		(27.5	)		(32.7	)		(30.6	)		(2	)		(15	)
Total Trading VAR		$	58.8		$	53.7		$	67.0		$	72.6		$	77.8			9			(24	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

								YTD 2003
		YEAR TO DATE						Over (Under)
(in millions)		2003			2002			2002
Trading Portfolio:
	Interest Rate	$	58.4		$	67.6			(14	)%
	Foreign Exchange		16.1			10.3			56
	Equities		10.1			15.4			(34	)
	Commodities		2.6			4.7			(45	)
	Hedge Fund Investment		4.0			3.0			33
Less: Portfolio Diversification			(34.8	)		(27.5	)		(27	)
Total Trading VAR		$	56.4		$	73.5			(23	)

Page 25

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

Assets Under Management: Represent assets actively managed by Investment Management & Private Banking on behalf of institutional and Private Banking clients. Excludes assets managed at American Century Companies Inc., in which the Firm has a 44% ownership interest.

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

Average Economic Capital: Represents the portion of average common stockholders’ equity allocated to the business segments. The total average economic capital of all business segments equals the total average common stockholders’ equity of the Firm.

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

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

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

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

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

NM: Not meaningful

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

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

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

Reported Basis: Financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reported basis includes the impact of credit card securitizations, merger and restructuring costs and special items.

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

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

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

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

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

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

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

Value-at-Risk (“VAR”): A measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment. VAR is calculated using a one-day time horizon and a 99% confidence level.

Page 26