EXHIBIT 99.2


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
SELECTED INCOME STATEMENT DATA
Total Net Revenue	$	12,950		$	12,505		$	8,631		$	9,011		$	8,106			4	%		60	%	$	43,097		$	33,384			29	%
Provision for Credit Losses		1,157			1,169			203			15			139			(1	)		NM			2,544			1,540			65
Noninterest Expense		9,386			9,377			9,503			6,093			5,258			—			79			34,359			21,816			57
Net Income (Loss)		1,666			1,418			(548	)		1,930			1,864			17			(11	)		4,466			6,719			(34	)

Per Common Share:
Net Income (Loss) Per Share — Diluted	$	0.46		$	0.39		$	(0.27	)	$	0.92		$	0.89			18			(48	)	$	1.55		$	3.24			(52	)
Cash Dividends Declared Per Share		0.34			0.34			0.34			0.34			0.34			—			—			1.36			1.36			—
Book Value Per Share		29.61			29.42			21.52			22.62			22.10			1			34
Closing Share Price		39.01			39.73			38.77			41.95			36.73			(2	)		6

Common Shares Outstanding:
Average — Diluted		3,602.0			3,592.0			2,042.8			2,092.7			2,079.3			—			73			2,850.6			2,055.1			39
Common Shares at Period-end		3,556.2			3,564.1			2,087.5			2,081.7			2,042.6			—			74

SELECTED RATIOS:
Return on Common Equity (“ROE”) (a)		6	%		5	%		NM			17	%		17	%		100	bp	(1,100)bp				6	%		16	%	(1,100)bp
Return on Equity-Goodwill (“ROE-GW”) (a) (b)		11			9			NM			21			20			200			(900	)		9			19			(1,000	)
Return on Assets (“ROA”) (a) (c)		0.57			0.50			NM			1.01			0.95			7			(38	)		0.46			0.87			(41	)
Tier 1 Capital Ratio		8.7			8.6			8.2	%		8.4			8.5			10			20
Total Capital Ratio		12.3			12.0			11.2			11.4			11.8			30			50

SELECTED BALANCE SHEET DATA (Period-end)
Total Assets	$	1,157,248		$	1,138,469		$	817,763		$	801,078		$	770,912			2	%		50	%
Wholesale Loans		135,067			132,344			77,044			77,068			75,419			2			79
Consumer Loans		267,047			261,357			148,894			140,562			139,347			2			92
Deposits		521,456			496,454			346,539			336,886			326,492			5			60
Common Stockholders’ Equity		105,314			104,844			44,932			47,092			45,145			—			133

Headcount		160,968			162,275			94,615			96,010			96,367			(1	)		67

LINE OF BUSINESS EARNINGS
Investment Bank	$	660		$	627		$	644		$	1,017		$	809			5			(18	)	$	2,948		$	2,805			5	%
Retail Financial Services		775			822			396			206			305			(6	)		154			2,199			1,547			42
Card Services		515			421			176			162			173			22			198			1,274			683			87
Commercial Banking		254			215			65			74			89			18			185			608			307			98
Treasury & Securities Services		145			96			101			98			123			51			18			440			422			4
Asset & Wealth Management		263			197			99			122			106			34			148			681			287			137
Corporate (d)		(296	)		(219	)		325			251			259			(35	)		NM			61			668			(91	)

Total Operating Earnings		2,316			2,159			1,806			1,930			1,864			7			24			8,211			6,719			22
Reconciling Items (After-Tax):
Merger Costs		(324	)		(462	)		(60	)		—			—			(30	)		NM			(846	)		—			NM
Litigation Reserve Charge		—			—			(2,294	)		—			—			NM			NM			(2,294	)		—			NM
Accounting Policy Conformity		(326	)		(279	)		—			—			—			(17	)		NM			(605	)		—			NM

Net Income (Loss)	$	1,666		$	1,418		$	(548	)	$	1,930		$	1,864			17			(11	)	$	4,466		$	6,719			(34	)

Note: Effective July 1, 2004, Bank One Corporation (“Bank One”) merged with and into JPMorgan Chase. Bank One’s results of operations are included in JPMorgan Chase’s results beginning July 1, 2004. In accordance with U.S. GAAP, the results of operations for the third and fourth quarters of 2004 each reflect three months of results of operations for the combined Firm.

The results of operations for the year ended December 31, 2004, reflect six months of operations for the combined Firm. The results of operations for all other quarterly periods presented herein, and for the year ended December 31, 2003, reflect only the results of operations for heritage JPMorgan Chase.

(a)
Based on annualized amounts.

(b)
Net income applicable to common stock / Total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating performance of the Firm. The Firm utilizes this measure to facilitate operating comparisons to other competitors.

(c)
U.S. GAAP earnings / Total average assets

(d)
Includes Global Treasury, Private Equity, Support Units and the net effects remaining at the corporate level after the implementation of management accounting policies.

NM — Not meaningful due to net loss.

Page 3


JPMORGAN CHASE & CO. STATEMENT OF INCOME — REPORTED BASIS (in millions, except per share, ratio and headcount data)



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REVENUE
Investment Banking Fees	$	1,073		$	879		$	893		$	692		$	846			22	%		27	%	$	3,537		$	2,890			22	%
Trading Revenue (a)		611			408			873			1,720			754			50			(19	)		3,612			4,427			(18	)
Lending & Deposit Related Fees		903			943			412			414			451			(4	)		100			2,672			1,727			55
Asset Management, Administration and Commissions		2,285			2,141			1,770			1,771			1,586			7			44			7,967			5,906			35
Securities / Private Equity Gains (Losses)		569			413			460			432			192			38			196			1,874			1,479			27
Mortgage Fees and Related Income		130			277			338			259			149			(53	)		(13	)		1,004			923			9
Credit Card Income		1,822			1,782			631			605			685			2			166			4,840			2,466			96
Other Income		228			210			260			132			261			9			(13	)		830			601			38

Noninterest Revenue		7,621			7,053			5,637			6,025			4,924			8			55			26,336			20,419			29

Interest Income		9,862			9,493			5,614			5,626			5,776			4			71			30,595			24,044			27
Interest Expense		4,533			4,041			2,620			2,640			2,594			12			75			13,834			11,079			25

Net Interest Income		5,329			5,452			2,994			2,986			3,182			(2	)		67			16,761			12,965			29

TOTAL NET REVENUE		12,950			12,505			8,631			9,011			8,106			4			60			43,097			33,384			29


Provision for Credit Losses		1,157			1,169			203			15			139			(1	)		NM			2,544			1,540			65

NONINTEREST EXPENSE
Compensation Expense		4,211			4,050			2,943			3,302			2,508			4			68			14,506			11,387			27
Occupancy Expense		609			604			440			431			482			1			26			2,084			1,912			9
Technology and Communications Expense		1,051			1,046			786			819			756			—			39			3,702			2,844			30
Professional & Outside Services		1,191			1,103			752			816			777			8			53			3,862			2,875			34
Marketing		428			506			202			199			200			(15	)		114			1,335			710			88
Other Expense		981			920			511			447			461			7			113			2,859			1,694			69
Amortization of Intangibles		392			396			79			79			74			(1	)		430			946			294			222

Total Noninterest Expense before Merger Costs and Litigation Reserve Charge		8,863			8,625			5,713			6,093			5,258			3			69			29,294			21,716			35
Merger Costs		523			752			90			—			—			(30	)		NM			1,365			—			NM
Litigation Reserve Charge		—			—			3,700			—			—			NM			NM			3,700			100			NM

TOTAL NONINTEREST EXPENSE		9,386			9,377			9,503			6,093			5,258			—			79			34,359			21,816			57

Income (Loss) before Income Tax Expense		2,407			1,959			(1,075	)		2,903			2,709			23			(11	)		6,194			10,028			(38	)
Income Tax Expense (Benefit)		741			541			(527	)		973			845			37			(12	)		1,728			3,309			(48	)

NET INCOME (LOSS)	$	1,666		$	1,418		$	(548	)	$	1,930		$	1,864			17			(11	)	$	4,466		$	6,719			(34	)

NET INCOME (LOSS) APPLICABLE TO COMMON STOCK	$	1,653		$	1,405		$	(561	)	$	1,917		$	1,851			18			(11	)	$	4,414		$	6,668			(34	)


NET INCOME (LOSS) PER COMMON SHARE
Basic Earnings per Share	$	0.47		$	0.40		$	(0.27	)	$	0.94		$	0.92			18			(49	)	$	1.59		$	3.32			(52	)
Diluted Earnings per Share		0.46			0.39			(0.27	)		0.92			0.89			18			(48	)		1.55			3.24			(52	)

Average Basic Shares		3,514.7			3,513.5			2,042.8			2,032.3			2,016.2			—			74			2,779.9			2,008.6			38
Average Diluted Shares		3,602.0			3,592.0			2,042.8			2,092.7			2,079.3			—			73			2,850.6			2,055.1			39

FINANCIAL RATIOS
ROE		6	%		5	%		NM			17	%		17	%		100	bp	(1,100)bp				6	%		16	%	(1,000)bp
ROE-GW		11			9			NM			21			20			200			(900	)		9			19			(1,000	)
ROA		0.57			0.50			NM			1.01			0.95			7			(38	)		0.46			0.87			(41	)
Effective Income Tax Rate		31			28			49	%		34			31			300			—			28			33			(500	)
Overhead Ratio		72			75			110			68			65			(300	)		700			80			65			1,500

Headcount		160,968			162,275			94,615			96,010			96,367			(1	)%		67	%		160,968			96,367			67	%

(a)
Trading NII is not included in trading revenue. See page 10 for additional details.

Page 4


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



																Dec 31, 2004
							Heritage JPMC Only									Change
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Dec 31
	2004			2004			2004			2004			2003			2004			2003
ASSETS
Cash and Due from Banks	$	35,168		$	30,815		$	23,525		$	19,419		$	20,268			14	%		74	%
Deposits with Banks		21,680			33,082			39,135			35,600			10,175			(34	)		113
Federal Funds Sold and Securities Purchased under Resale Agreements		101,354			96,031			100,851			79,414			76,868			6			32
Securities Borrowed		47,428			50,546			44,947			49,881			41,834			(6	)		13
Trading Assets:
Debt and Equity Instruments		222,832			214,852			187,640			189,549			169,120			4			32
Derivative Receivables (a)		65,982			57,795			49,980			58,434			83,751			14			(21	)
Securities		94,512			92,816			64,915			70,747			60,244			2			57
Interests in Purchased Receivables		31,722			30,479			—			—			4,752			4			NM
Loans (Net of Allowance for Loan Losses)		394,794			386,208			221,971			213,510			210,243			2			88
Private Equity Investments		7,735			8,547			6,663			7,097			7,250			(10	)		7
Accrued Interest and Accounts Receivable		21,409			19,876			15,050			13,250			12,356			8			73
Premises and Equipment		9,145			8,880			6,268			6,418			6,487			3			41
Goodwill		43,203			42,947			8,731			8,730			8,511			1			408
Other Intangible Assets:
Mortgage Servicing Rights		5,080			5,168			5,707			4,189			4,781			(2	)		6
Purchased Credit Card Relationships		3,878			4,055			893			953			1,014			(4	)		282
All Other Intangibles		5,726			5,945			799			813			685			(4	)		NM
Other Assets		45,600			50,427			40,688			43,074			52,573			(10	)		(13	)

TOTAL ASSETS	$	1,157,248		$	1,138,469		$	817,763		$	801,078		$	770,912			2			50


LIABILITIES
Deposits:
U.S. Offices:
Noninterest-Bearing	$	129,257		$	122,054		$	87,972		$	79,560		$	73,154			6			77
Interest-Bearing		261,673			254,611			141,118			142,755			125,855			3			108
Non-U.S. Offices:
Noninterest-Bearing		6,931			7,259			7,320			7,868			6,311			(5	)		10
Interest-Bearing		123,595			112,530			110,129			106,703			121,172			10			2

Total Deposits		521,456			496,454			346,539			336,886			326,492			5			60
Federal Funds Purchased and Securities Sold under Repurchase Agreements		127,787			167,313			152,619			148,526			113,466			(24	)		13
Commercial Paper		12,605			10,307			15,300			14,972			14,284			22			(12	)
Other Borrowed Funds		9,039			9,454			9,435			10,414			8,925			(4	)		1
Trading Liabilities:
Debt and Equity Instruments		87,942			78,767			82,338			80,303			78,222			12			12
Derivative Payables (a)		63,265			52,307			42,838			53,883			71,226			21			(11	)
Accounts Payable, Accrued Expenses and Other Liabilities (including the Allowance for Lending-Related Commitments)		68,443			61,198			55,321			42,463			43,970			12			56
Beneficial Interests Issued by Consolidated VIEs		48,061			45,840			6,562			7,543			12,295			5			291
Long-Term Debt		95,422			91,754			52,981			50,062			48,014			4			99
Junior Subordinated Deferrable Interest Debentures Held by Trusts that Issued Guaranteed Capital Debt Securities		10,296			11,745			6,634			6,732			6,768			(12	)		52
Insurance Policy and Claims Reserves		7,279			7,477			1,255			1,193			1,096			(3	)		NM

TOTAL LIABILITIES		1,051,595			1,032,616			771,822			752,977			724,758			2			45

STOCKHOLDERS’ EQUITY
Preferred Stock		339			1,009			1,009			1,009			1,009			(66	)		(66	)
Common Stock		3,585			3,576			2,095			2,088			2,044			—			75
Capital Surplus		72,801			72,183			14,426			14,193			13,512			1			439
Retained Earnings		30,209			29,779			29,596			30,878			29,681			1			2
Accumulated Other Comprehensive Income (Loss)		(208	)		(242	)		(910	)		177			(30	)		14			NM
Treasury Stock, at Cost		(1,073	)		(452	)		(275	)		(244	)		(62	)		(137	)		NM

TOTAL STOCKHOLDERS’ EQUITY		105,653			105,853			45,941			48,101			46,154			—			129

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,157,248		$	1,138,469		$	817,763		$	801,078		$	770,912			2			50

(a)
Effective January 1, 2004, the Firm elected to net cash paid and received under legally enforceable master netting agreements.

Page 5


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
AVERAGE BALANCES
ASSETS
Deposits with Banks	$	31,799		$	34,166		$	26,905		$	21,535		$	11,724			(7	)%		171	%	$	28,625		$	9,742			194	%
Federal Funds Sold and Securities Purchased under Resale Agreements		104,038			102,042			87,080			82,555			94,773			2			10			93,979			87,273			8
Securities Borrowed		47,663			47,087			54,233			48,609			40,371			1			18			49,387			40,305			23
Trading Assets — Debt and Equity Instruments		186,013			170,663			153,547			166,389			156,958			9			19			169,203			148,970			14
Securities		92,294			94,720			64,149			63,992			63,903			(3	)		44			78,869			77,442			2
Interests in Purchased Receivables		30,491			28,917			—			2,537			9,618			5			217			15,564			5,414			187
Loans		400,841			390,753			225,344			214,941			221,177			3			81			308,450			220,692			40

Total Interest-Earning Assets		893,139			868,348			611,258			600,558			598,524			3			49			744,077			589,838			26
Noninterest-Earning Assets		261,749			248,987			191,612			170,760			179,995			5			45			218,479			186,140			17

TOTAL ASSETS	$	1,154,888		$	1,117,335		$	802,870		$	771,318		$	778,519			3			48		$	962,556		$	775,978			24


LIABILITIES
Interest-Bearing Deposits	$	377,368		$	365,104		$	254,034		$	238,206		$	237,636			3			59		$	309,020		$	227,645			36
Federal Funds Purchased and Securities Sold under Repurchase Agreements		158,633			163,206			155,335			145,370			141,089			(3	)		12			155,665			161,020			(3	)
Commercial Paper		10,885			12,497			14,283			13,153			13,293			(13	)		(18	)		12,699			13,387			(5	)
Other Borrowings (a)		89,674			84,387			80,364			80,388			74,551			6			20			83,721			69,703			20
Beneficial Interests Issued by Consolidated VIEs		46,366			43,308			7,433			9,764			17,585			7			164			26,817			9,421			185
Long-Term Debt		104,599			101,060			57,019			53,574			52,408			4			100			79,193			49,095			61

Total Interest-Bearing Liabilities		787,525			769,562			568,468			540,455			536,562			2			47			667,115			530,271			26
Noninterest-Bearing Liabilities		261,487			242,395			186,529			184,036			196,771			8			33			218,793			201,710			8

TOTAL LIABILITIES		1,049,012			1,011,957			754,997			724,491			733,333			4			43			885,908			731,981			21

Preferred Stock		1,002			1,009			1,009			1,009			1,009			(1	)		(1	)		1,007			1,009			—
Common Stockholders’ Equity		104,874			104,369			46,864			45,818			44,177			—			137			75,641			42,988			76

TOTAL STOCKHOLDERS’ EQUITY		105,876			105,378			47,873			46,827			45,186			—			134			76,648			43,997			74

TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY	$	1,154,888		$	1,117,335		$	802,870		$	771,318		$	778,519			3			48		$	962,556		$	775,978			24


AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with Banks		2.60	%		1.53	%		1.68	%		1.62	%		2.88	%		107	bp		(28	)bp		1.88	%		2.20	%		(32	)bp
Federal Funds Sold and Securities Purchased under Resale Agreements		2.03			1.85			1.45			1.49			1.36			18			67			1.73			1.72			1
Securities Borrowed		1.34			1.01			0.66			0.77			0.74			33			60			0.94			0.80			14
Trading Assets — Debt and Equity Instruments		4.44			4.64			4.37			4.35			4.19			(20	)		25			4.45			4.44			1
Securities		4.42			4.40			4.58			4.21			4.49			2			(7	)		4.40			4.61			(21	)
Interests in Purchased Receivables		2.11			1.63			—			1.79			1.35			48			76			1.87			1.18			69
Loans		5.71			5.77			4.85			5.00			5.18			(6	)		53			5.45			5.36			9
Total Interest-Earning Assets		4.42			4.37			3.71			3.78			3.84			5			58			4.13			4.09			4

INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits		2.01			1.64			1.28			1.37			1.33			37			68			1.63			1.58			5
Federal Funds Purchased and Securities Sold under Repurchase Agreements		1.95			1.52			1.16			1.24			1.16			43			79			1.48			1.37			11
Commercial Paper		2.26			1.49			0.98			0.96			0.98			77			128			1.38			1.13			25
Other Borrowings		3.04			4.27			4.44			4.53			4.86			(123	)		(182	)		4.04			5.05			(101	)
Beneficial Interests Issued by Consolidated VIEs		1.97			1.58			2.04			1.60			1.36			39			61			1.78			1.13			65
Long-Term Debt		3.31			3.10			2.85			3.02			2.86			21			45			3.11			3.05			6
Total Interest-Bearing Liabilities		2.29			2.09			1.85			1.96			1.92			20			37			2.07			2.09			(2	)
INTEREST RATE SPREAD		2.13	%		2.28	%		1.86	%		1.82	%		1.92	%		(15	)		21			2.06	%		2.00	%		6

NET INTEREST MARGIN		2.40	%		2.52	%		1.98	%		2.01	%		2.12	%		(12	)		28			2.27	%		2.21	%		6

NET INTEREST MARGIN ADJUSTED FOR SECURITIZATIONS		2.97	%		3.09	%		2.30	%		2.43	%		2.54	%		(12	)		43			2.79	%		2.63	%		16

(a)
Includes securities sold but not yet purchased.

Page 6

(JPMORGANCHASE LOGO)

OPERATING BASIS

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 the IB, operating basis noninterest revenue includes, in Trading Revenue, net interest income 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 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, the Litigation Reserve Charge and Accounting Policy Conformity Adjustments related to the Merger, 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.


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REPORTED
Revenue
Investment Banking Fees	$	1,073		$	879		$	893		$	692		$	846			22	%		27	%	$	3,537		$	2,890			22	%
Trading Revenue		611			408			873			1,720			754			50			(19	)		3,612			4,427			(18	)
Lending & Deposit Related Fees		903			943			412			414			451			(4	)		100			2,672			1,727			55
Asset Management, Administration and Commissions		2,285			2,141			1,770			1,771			1,586			7			44			7,967			5,906			35
Securities / Private Equity Gains (Losses)		569			413			460			432			192			38			196			1,874			1,479			27
Mortgage Fees and Related Income		130			277			338			259			149			(53	)		(13	)		1,004			923			9
Credit Card Income		1,822			1,782			631			605			685			2			166			4,840			2,466			96
Other Income		228			210			260			132			261			9			(13	)		830			601			38

Noninterest Revenue		7,621			7,053			5,637			6,025			4,924			8			55			26,336			20,419			29

Interest Income		9,862			9,493			5,614			5,626			5,776			4			71			30,595			24,044			27
Interest Expense		4,533			4,041			2,620			2,640			2,594			12			75			13,834			11,079			25

Net Interest Income		5,329			5,452			2,994			2,986			3,182			(2	)		67			16,761			12,965			29

Total Net Revenue		12,950			12,505			8,631			9,011			8,106			4			60			43,097			33,384			29

Provision for Credit Losses		1,157			1,169			203			15			139			(1	)	NM				2,544			1,540			65

Noninterest Expense
Merger Costs		523			752			90			—			—			(30	)	NM				1,365			—		NM
Litigation Reserve Charge		—			—			3,700			—			—		NM			NM				3,700			100		NM
All Other Noninterest Expense		8,863			8,625			5,713			6,093			5,258			3			69			29,294			21,716			35

Total Noninterest Expense		9,386			9,377			9,503			6,093			5,258			—			79			34,359			21,816			57


Income (Loss) before Income Tax Expense		2,407			1,959			(1,075	)		2,903			2,709			23			(11	)		6,194			10,028			(38	)
Income Tax Expense (Benefit)		741			541			(527	)		973			845			37			(12	)		1,728			3,309			(48	)

Net Income (Loss)	$	1,666		$	1,418		$	(548	)	$	1,930		$	1,864			17			(11	)	$	4,466		$	6,719			(34	)

RECONCILING ITEMS (a)
Revenue
Trading-Related Revenue (b)	$	511		$	424		$	439		$	576		$	518			21			(1	)	$	1,950		$	2,129			(8	)
Credit Card Income (c)		(786	)		(848	)		(307	)		(326	)		(368	)		7			(114	)		(2,267	)		(1,379	)		(64	)
Other Income
Credit Card Securitizations (c)		1			(3	)		(45	)		(39	)		(29	)	NM			NM				(86	)		(71	)		(21	)
Accounting Policy Conformity (d)		—			118			—			—			—		NM			NM				118			—		NM

Total Other Income		1			115			(45	)		(39	)		(29	)		(99	)	NM				32			(71	)	NM

Net Interest Income:
Trading-Related (b)		(511	)		(424	)		(439	)		(576	)		(518	)		(21	)		1			(1,950	)		(2,129	)		8
Credit Card Securitizations (c)		1,796			1,779			838			838			859			1			109			5,251			3,320			58

Total Net Interest Income		1,285			1,355			399			262			341			(5	)		277			3,301			1,191			177

Total Net Revenue		1,011			1,046			486			473			462			(3	)		119			3,016			1,870			61

Provision for Credit Losses
Credit Card Securitizations (c)		1,011			928			486			473			462			9			119			2,898			1,870			55
Accounting Policy Conformity (d)		(525	)		(333	)		—			—			—			(58	)	NM				(858	)		—		NM

Total Provision for Credit Losses		486			595			486			473			462			(18	)		5			2,040			1,870			9

Noninterest Expense
Merger Costs (d)		(523	)		(752	)		(90	)		—			—			30		NM				(1,365	)		—		NM
Litigation Reserve Charge (d)		—			—			(3,700	)		—			—		NM			NM				(3,700	)		—		NM
All Other Noninterest Expense		—			—			—			—			—		NM			NM				—			—		NM

Total Noninterest Expense		(523	)		(752	)		(3,790	)		—			—			30		NM				(5,065	)		—		NM

Income before Income Tax Expense		1,048			1,203			3,790			—			—			(13	)	NM				6,041			—		NM
Income Tax Expense (Benefit)		398			462			1,436			—			—			(14	)	NM				2,296			—		NM

Net Income (Loss)	$	650		$	741		$	2,354		$	—		$	—			(12	)	NM			$	3,745		$	—		NM

(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 fourth, third and second quarters of 2004, the Merger Costs and Litigation Reserve Charge line items on the Consolidated Statement of Income, and the Accounting Policy Conformity Adjustments.

(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 10 for further information.

(c)
The impact of credit card securitizations impacts Card Services. See page 18 for further information.

(d)
The impact of the Merger Costs, the Litigation Reserve Charge and Accounting Policy Conformity Adjustment 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 do not provide meaningful comparisons with other periods.

Page 7


JPMORGAN CHASE & CO. STATEMENT OF INCOME — OPERATING BASIS (in millions, except per share and ratio data)



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REVENUE
Investment Banking Fees	$	1,073		$	879		$	893		$	692		$	846			22	%		27	%	$	3,537		$	2,890			22	%
Trading-Related Revenue (Including Trading NII)		1,122			832			1,312			2,296			1,272			35			(12	)		5,562			6,556			(15	)
Lending & Deposit Related Fees		903			943			412			414			451			(4	)		100			2,672			1,727			55
Asset Management, Administration and Commissions		2,285			2,141			1,770			1,771			1,586			7			44			7,967			5,906			35
Securities / Private Equity Gains (Losses)		569			413			460			432			192			38			196			1,874			1,479			27
Mortgage Fees and Related Income		130			277			338			259			149			(53	)		(13	)		1,004			923			9
Credit Card Income		1,036			934			324			279			317			11			227			2,573			1,087			137
Other Income		229			325			215			93			232			(30	)		(1	)		862			530			63

Noninterest Revenue		7,347			6,744			5,724			6,236			5,045			9			46			26,051			21,098			23


Interest Income		11,223			11,036			6,013			5,888			6,117			2			83			34,160			25,235			35
Interest Expense		4,609			4,229			2,620			2,640			2,594			9			78			14,098			11,079			27

Net Interest Income		6,614			6,807			3,393			3,248			3,523			(3	)		88			20,062			14,156			42


TOTAL NET REVENUE		13,961			13,551			9,117			9,484			8,568			3			63			46,113			35,254			31


Managed Provision for Credit Losses		1,643			1,764			689			488			601			(7	)		173			4,584			3,410			34

NONINTEREST EXPENSE
Compensation Expense		4,211			4,050			2,943			3,302			2,508			4			68			14,506			11,387			27
Occupancy Expense		609			604			440			431			482			1			26			2,084			1,912			9
Technology and Communications Expense		1,051			1,046			786			819			756			—			39			3,702			2,844			30
Professional & Outside Services		1,191			1,103			752			816			777			8			53			3,862			2,875			34
Marketing		428			506			202			199			200			(15	)		114			1,335			710			88
Other Expense		981			920			511			447			461			7			113			2,859			1,794			59
Amortization of Intangibles		392			396			79			79			74			(1	)		430			946			294			222

TOTAL NONINTEREST EXPENSE		8,863			8,625			5,713			6,093			5,258			3			69			29,294			21,816			34


Operating Earnings before Income Tax Expense		3,455			3,162			2,715			2,903			2,709			9			28			12,235			10,028			22
Income Tax Expense		1,139			1,003			909			973			845			14			35			4,024			3,309			22

OPERATING EARNINGS	$	2,316		$	2,159		$	1,806		$	1,930		$	1,864			7			24		$	8,211		$	6,719			22


Operating Earnings Per Common Share
Diluted EPS	$	0.64		$	0.60		$	0.85		$	0.92		$	0.89			7			(28	)	$	2.86		$	3.24			(12	)

Operating Financial Ratios
ROE		9	%		8	%		15	%		17	%		17	%		100	bp		(800	)bp		11	%		16	%		(500	)bp
ROE-GW		15			14			19			21			20			100			(500	)		16			19			(300	)
ROA		0.75			0.72			0.87			0.96			0.91			3			(16	)		0.81			0.83			(2	)
Overhead Ratio		63			64			63			64			61			(100	)		200			64			62			200

RECONCILIATION OF OPERATING EARNINGS PER SHARE TO NET INCOME (LOSS) PER SHARE — DILUTED
Operating Earnings	$	0.64		$	0.60		$	0.85		$	0.92		$	0.89			7	%		(28	)%	$	2.86		$	3.24			(12	)%
Reconciling Items (Net of Taxes):
Merger Costs		(0.09	)		(0.13	)		(0.03	)		—			—			31		NM				(0.30	)		—		NM
Litigation Reserve Charge		—			—			(1.09	)		—			—		NM			NM				(0.80	)		—		NM
Accounting Policy Conformity		(0.09	)		(0.08	)		—			—			—			(13	)	NM				(0.21	)		—		NM

Net Income (Loss)	$	0.46		$	0.39		$	(0.27	)	$	0.92		$	0.89			18			(48	)	$	1.55		$	3.24			(52	)

Page 8


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REVENUE
Investment Bank	$	3,201		$	2,701		$	2,939		$	3,764		$	2,898			19	%		10	%	$	12,605		$	12,684			(1	)%
Retail Financial Services		3,545			3,800			1,835			1,611			1,722			(7	)		106			10,791			7,428			45
Card Services		3,830			3,771			1,587			1,557			1,615			2			137			10,745			6,144			75
Commercial Banking		885			833			334			322			340			6			160			2,374			1,352			76
Treasury & Securities Services		1,413			1,339			1,093			1,012			980			6			44			4,857			3,608			35
Asset & Wealth Management		1,310			1,193			828			848			845			10			55			4,179			2,970			41
Corporate		(223	)		(86	)		501			370			168			(159	)		NM			562			1,068			(47	)

TOTAL NET REVENUE	$	13,961		$	13,551		$	9,117		$	9,484		$	8,568			3			63		$	46,113		$	35,254			31


OPERATING EARNINGS
Investment Bank	$	660		$	627		$	644		$	1,017		$	809			5			(18	)	$	2,948		$	2,805			5
Retail Financial Services		775			822			396			206			305			(6	)		154			2,199			1,547			42
Card Services		515			421			176			162			173			22			198			1,274			683			87
Commercial Banking		254			215			65			74			89			18			185			608			307			98
Treasury & Securities Services		145			96			101			98			123			51			18			440			422			4
Asset & Wealth Management		263			197			99			122			106			34			148			681			287			137
Corporate		(296	)		(219	)		325			251			259			(35	)		NM			61			668			(91	)

TOTAL OPERATING EARNINGS	$	2,316		$	2,159		$	1,806		$	1,930		$	1,864			7			24		$	8,211		$	6,719			22


AVERAGE EQUITY (a)
Investment Bank	$	20,000		$	20,000		$	14,015		$	15,085		$	16,202			—			23		$	17,290		$	18,350			(6	)
Retail Financial Services		13,050			13,050			5,005			5,177			4,592			—			184			9,092			4,220			115
Card Services		11,800			11,800			3,346			3,392			3,403			—			247			7,608			3,440			121
Commercial Banking		3,400			3,400			747			795			928			—			266			2,093			1,059			98
Treasury & Securities Services		1,900			1,900			3,203			3,189			2,741			—			(31	)		2,544			2,738			(7	)
Asset & Wealth Management		2,400			2,400			5,370			5,471			5,467			—			(56	)		3,902			5,507			(29	)
Corporate (b)		52,324			51,819			15,178			12,709			10,844			1			383			33,112			7,674			331

TOTAL AVERAGE EQUITY	$	104,874		$	104,369		$	46,864		$	45,818		$	44,177			—			137		$	75,641		$	42,988			76


RETURN ON EQUITY (a)
Investment Bank		13	%		12	%		18	%		27	%		20	%		100	bp		(700	)bp		17	%		15	%		200	bp
Retail Financial Services		24			25			32			16			26			(100	)		(200	)		24			37			(1,300	)
Card Services		17			14			21			19			20			300			(300	)		17			20			(300	)
Commercial Banking		30			25			35			37			38			500			(800	)		29			29			—
Treasury & Securities Services		30			20			13			12			18			1,000			1,200			17			15			200
Asset & Wealth Management		44			33			7			9			8			1,100			3,600			17			5			1,200
JPMC ROE		9			8			15			17			17			100			(800	)		11			16			(500	)
JPMC ROE-GW		15			14			19			21			20			100			(500	)		16			19			(300	)

(a)
As a result of the Merger, new capital allocation methodologies were implemented during the third quarter of 2004. The capital allocated to each line of business considers several factors: stand-alone peer comparables, economic risk measures and regulatory capital requirements. In addition, effective with the third quarter of 2004, goodwill, as well as the associated capital, is only allocated to the Corporate line of business. Prior periods have not been revised to reflect these new methodologies and also may not be comparable to the presentation beginning in the third quarter of 2004.

(b)
Includes goodwill.

Page 9


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE
Investment Banking Fees:
Advisory	$	250		$	273		$	268		$	147		$	157			(8	)%		59	%	$	938		$	640			47	%
Equity Underwriting		213			170			221			177			255			25			(16	)		781			699			12
Debt Underwriting		617			468			402			366			428			32			44			1,853			1,532			21

Total Investment Banking Fees		1,080			911			891			690			840			19			29			3,572			2,871			24

Trading-Related Revenue: (a)
Fixed Income and Other		1,173			657			1,293			1,885			1,159			79			1			5,008			6,016			(17	)
Equities		(42	)		220			(86	)		335			96			NM			NM			427			556			(23	)
Credit Portfolio		(44	)		(35	)		29			56			(50	)		(26	)		12			6			(186	)		NM

Total Trading-Related Revenue		1,087			842			1,236			2,276			1,205			29			(10	)		5,441			6,386			(15	)

Lending & Deposit Related Fees		176			155			112			96			131			14			34			539			440			23
Asset Management, Administration and Commissions		346			313			348			393			309			11			12			1,400			1,217			15
Other Income		178			91			45			14			65			96			174			328			103			218

Noninterest Revenue		2,867			2,312			2,632			3,469			2,550			24			12			11,280			11,017			2
Net Interest Income (a)		334			389			307			295			348			(14	)		(4	)		1,325			1,667			(21	)

TOTAL NET REVENUE (b)		3,201			2,701			2,939			3,764			2,898			19			10			12,605			12,684			(1	)


Provision for Credit Losses		(173	)		(151	)		(128	)		(188	)		(241	)		(15	)		28			(640	)		(181	)		(254	)
Credit Reimbursement from TSS (c)		43			43			2			2			(5	)		—			NM			90			(36	)		NM

NONINTEREST EXPENSE
Compensation Expense		1,389			992			1,126			1,386			821			40			69			4,893			4,462			10
Noncompensation Expense		1,001			932			930			940			980			7			2			3,803			3,840			(1	)
Amortization of Intangibles		—			—			—			—			—			NM			NM			—			—			NM

TOTAL NONINTEREST EXPENSE		2,390			1,924			2,056			2,326			1,801			24			33			8,696			8,302			5


Operating Earnings Before Income Tax Expense		1,027			971			1,013			1,628			1,333			6			(23	)		4,639			4,527			2
Income Tax Expense (Benefit)		367			344			369			611			524			7			(30	)		1,691			1,722			(2	)

OPERATING EARNINGS	$	660		$	627		$	644		$	1,017		$	809			5			(18	)	$	2,948		$	2,805			5

FINANCIAL RATIOS
ROE		13	%		12	%		18	%		27	%		20	%		100	bp		(700	)bp		17	%		15	%		200	bp
ROA		0.49			0.50			0.59			0.97			0.73			(1	)		(24	)		0.62			0.64			(2	)
Overhead Ratio		75			71			70			62			62			400			1,300			69			65			400
Compensation Expense as a % of Total Net Revenue		43			37			38			37			28			600			1,500			39			35			400


	Full Year 2004			Full Year 2003
MARKET SHARE / RANKINGS (d)
Global Debt, Equity and Equity-Related		7% / #3			8% / #3
Global Syndicated Loans		20% / #1			20% / #1
Global Long-Term Debt		7% / #2			8% / #2
Global Equity and Equity-Related		6% / #6			8% / #4
Global Announced M&A		26% / #2			16% / #4
U.S. Debt, Equity and Equity-Related		8% / #5			9% / #3
U.S. Syndicated Loans		32% / #1			35% / #1
U.S. Long-Term Debt		12% / #2			10% / #3
U.S. Equity and Equity-Related		8% / #6			11% / #4
U.S. Announced M&A		33% / #1			13% / #8

(a)
Trading revenue, on a reported basis, excludes the impact of net interest income related to IB’s trading activities; this income is recorded in Net interest income. However, in this presentation, to assess 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 $511 million, $430 million, $427 million, $581 million and $512 million during the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, and $1.9 billion and $2.1 billion for full year 2004 and 2003, respectively.

(b)
Total net revenue includes tax equivalent adjustments of $167 million, $9 million, $91 million, $80 million, and $57 million as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively. The full year tax equivalent adjustments were $347 million and $230 million for the year ending December 31, 2004 and 2003, respectively.

(c)
Management has charged Treasury & Securities Services (“TSS”) 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 TSS.

(d)
Derived from Thomson Financial Securities Data. 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. Because of joint assignments, market share of all participants will add up to more than 100%. The market share and rankings are presented on a combined basis reflecting the merger of JPMorgan Chase and Bank One, as disclosed by Thomson Financial Securities Data.

Page 10


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
REVENUE BY BUSINESS
Investment Banking	$	1,080		$	911		$	891		$	690		$	840			19	%		29	%	$	3,572		$	2,871			24	%
Fixed Income Markets		1,530			1,115			1,572			2,097			1,379			37			11			6,314			6,987			(10	)
Equities Markets		243			455			161			632			318			(47	)		(24	)		1,491			1,406			6
Credit Portfolio		348			220			315			345			361			58			(4	)		1,228			1,420			(14	)

Total Net Revenue	$	3,201		$	2,701		$	2,939		$	3,764		$	2,898			19			10		$	12,605		$	12,684			(1	)

REVENUE BY REGION
Americas	$	1,829		$	1,591		$	1,497		$	1,953		$	1,718			15			6		$	6,870		$	7,250			(5	)
Europe/Middle East/Africa		1,013			741			1,032			1,296			897			37			13			4,082			4,331			(6	)
Asia/Pacific		359			369			410			515			283			(3	)		27			1,653			1,103			50

Total Net Revenue	$	3,201		$	2,701		$	2,939		$	3,764		$	2,898			19			10		$	12,605		$	12,684			(1	)

SELECTED BALANCE SHEET (Average)
Total Assets	$	533,898		$	496,347		$	439,166		$	422,151		$	441,745			8			21		$	473,121		$	436,488			8
Trading Assets — Debt and Equity Instruments		182,060			166,795			159,965			183,495			168,897			9			8			173,086			156,408			11
Trading Assets — Derivative Receivables		65,417			60,465			51,925			57,042			78,584			8			(17	)		58,735			83,361			(30	)
Loans (a)		47,674			45,779			38,729			38,199			39,764			4			20			42,618			45,037			(5	)
Adjusted Assets (b)		432,085			401,010			373,461			367,525			374,560			8			15			393,646			370,776			6
Equity (c)		20,000			20,000			14,015			15,085			16,202			—			23			17,290			18,350			(6	)

Headcount		17,478			17,420			15,829			14,930			14,691			—			19			17,478			14,691			19

CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	14		$	(16	)	$	15		$	34		$	(15	)		NM			NM		$	47		$	680			(93	)
Nonperforming Assets
- Nonperforming Loans (d)		954			1,075			1,202			1,498			1,708			(11	)		(44	)		954			1,708			(44	)
- Other Nonperforming Assets		242			246			339			357			370			(2	)		(35	)		242			370			(35	)
Allowance for Loan Losses		1,547			1,841			742			855			1,055			(16	)		47			1,547			1,055			47
Allowance for Lending Related Commitments		305			358			183			215			242			(15	)		26			305			242			26

Net Charge-off Rate (a)		0.14	%		(0.17	)%		0.18	%		0.41	%		(0.17	)%		31	bp		31	bp		0.13	%		1.65	%		(152	)bp
Allowance for Loan Losses to Average Loans (a)		3.87			4.78			2.21			2.59			2.93			(91	)		94			4.27			2.56			171
Allowance for Loan Losses to Nonperforming Loans (d)		163			172			62			58			63			(900	)		10,000			163			63			10,000
Nonperforming Loans to Average Loans		2.00			2.35			3.10			3.92			4.30			(35	)		(230	)		2.24			3.79			(155	)

MARKET RISK — AVERAGE TRADING AND CREDIT PORTFOLIO VAR (e) (f)
Trading Activities:
Fixed Income (e)	$	68		$	80		$	77		$	73		$	67			(15	)%		1	%	$	74		$	61			21	%
Foreign Exchange		18			13			16			22			20			38			(10	)		17			17			—
Equities		20			25			29			40			41			(20	)		(51	)		28			18			56
Commodities and Other		9			10			8			8			8			(10	)		13			9			8			13
Diversification		(42	)		(43	)		(42	)		(49	)		(48	)		2			13			(43	)		(39	)		(10	)

Total Trading VAR		73			85			88			94			88			(14	)		(17	)		85			65			31

Credit Portfolio VAR (f)		13			13			15			15			17			—			(24	)		14			18			(22	)
Diversification		(7	)		(9	)		(9	)		(7	)		(10	)		22			30			(9	)		(14	)		36

Total Trading and Credit Portfolio VAR	$	79		$	89		$	94		$	102		$	95			(11	)		(17	)	$	90		$	69			30

(a)
Loans include loans held for sale of $7,684 million, $7,281 million, $5,199 million, $5,245 million, and $3,735 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively. The full year average loans held for sale were $6,352 million and $3,809 million for 2004 and 2003, respectively. These amounts are not included in the allowance coverage ratios and net charge-off rates.

(b)
Adjusted assets equals total assets minus (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased, (2) assets of VIEs consolidated under FIN 46R, (3) cash and securities segregated and on deposit for regulatory and other purposes and (4) goodwill and intangibles. The amount of adjusted assets is presented to assist the reader in comparing the IB’s asset and capital levels to other investment banks in the securities industry. Asset to equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. The IB believes an adjusted asset amount, which excludes certain assets considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.

(c)
Equity includes $15 billion of economic risk capital assigned to the IB for the full year ended December 31, 2004.

(d)
Nonperforming loans include loans held for sale of $2 million, $4 million, $2 million, $30 million, and $30 million, as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.

(e)
Includes all mark-to-market trading activities, plus available-for-sale securities held for IB investing purposes.

(f)
Includes VAR on derivative credit valuation adjustments, credit valuation adjustment hedges and mark-to-market loan hedges, which are reported in Trading Revenue.

This VAR does not include the accrual loan portfolio, which is not marked to market.

Page 11


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	373		$	395		$	124		$	121		$	126			(6	)%		196	%	$	1,013		$	486			108	%
Asset Management, Administration and Commissions		323			331			100			95			95			(2	)		240			849			357			138
Securities / Private Equity Gains (Losses)		(89	)		6			—			—			18			NM			NM			(83	)		381			NM
Mortgage Fees and Related Income		162			255			365			255			140			(36	)		16			1,037			905			15
Credit Card Income		97			89			25			19			24			9			304			230			107			115
Other Income		27			18			10			(24	)		(15	)		50			NM			31			(28	)		NM

Noninterest Revenue		893			1,094			624			466			388			(18	)		130			3,077			2,208			39
Net Interest Income		2,652			2,706			1,211			1,145			1,334			(2	)		99			7,714			5,220			48

TOTAL NET REVENUE		3,545			3,800			1,835			1,611			1,722			(7	)		106			10,791			7,428			45

Provision for Credit Losses		78			239			78			54			72			(67	)		8			449			521			(14	)

NONINTEREST EXPENSE
Compensation Expense		807			855			450			509			443			(6	)		82			2,621			1,695			55
Noncompensation Expense		1,276			1,250			680			731			726			2			76			3,937			2,773			42
Amortization of Intangibles		132			133			1			1			1			(1	)		NM			267			3			NM

TOTAL NONINTEREST EXPENSE		2,215			2,238			1,131			1,241			1,170			(1	)		89			6,825			4,471			53

Operating Earnings Before Income Tax Expense		1,252			1,323			626			316			480			(5	)		161			3,517			2,436			44
Income Tax Expense (Benefit)		477			501			230			110			175			(5	)		173			1,318			889			48

OPERATING EARNINGS	$	775		$	822		$	396		$	206		$	305			(6	)		154		$	2,199		$	1,547			42

FINANCIAL RATIOS
ROE		24	%		25	%		32	%		16	%		26	%		(100	)bp		(200	)bp		24	%		37	%		(1,300	)bp
ROA		1.35			1.44			1.09			0.59			0.80			(9	)		55			1.18			1.05			13
Overhead Ratio		62			59			62			77			68			300			(600	)		63			60			300

SELECTED BALANCE SHEET (Ending)
Total Assets	$	226,560		$	227,952		$	148,682		$	138,747		$	139,316			(1	)%		63	%	$	226,560		$	139,316			63	%
Loans (a)		202,473			201,116			131,712			123,923			121,921			1			66			202,473			121,921			66
Core Deposits (b)		157,256			154,986			80,466			81,392			75,850			1			107			157,256			75,850			107
Total Deposits		182,765			180,727			80,339			91,478			86,162			1			112			182,765			86,162			112

SELECTED BALANCE SHEET (Average)
Total Assets	$	228,647		$	227,716		$	146,693		$	139,727		$	150,431			—			52		$	185,928		$	147,435			26
Loans (c)		202,419			198,244			128,225			121,357			127,830			2			58			162,768			120,750			35
Core Deposits (b)		159,385			159,197			85,263			79,801			79,041			—			102			121,121			80,116			51
Total Deposits		183,498			183,921			93,967			88,788			88,187			—			108			137,796			89,793			53
Equity		13,050			13,050			5,005			5,177			4,592			—			184			9,092			4,220			115

Headcount		59,632			60,691			30,480			31,377			32,278			(2	)		85			59,632			32,278			85

CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (d)	$	606		$	219		$	80		$	85		$	104			177			483		$	990		$	381			160
Nonperforming Loans		1,161			1,308			519			546			569			(11	)		104			1,161			569			104
Nonperforming Assets		1,385			1,557			693			736			775			(11	)		79			1,385			775			79
Allowance for Loan Losses		1,228			1,764			1,061			1,063			1,094			(30	)		12			1,228			1,094			12

Net Charge-off Rate (c)		1.28	%		0.47	%		0.29	%		0.32	%		0.39	%		81	bp		89	bp		0.67	%		0.40	%		27	bp
Allowance for Loan Losses to Ending Loans (a)		0.67			0.94			0.90			0.97			1.04			(27	)		(37	)		0.67			1.04			(37	)
Allowance for Loan Losses to Nonperforming Loans (e)		107			143			223			214			209			(3,600	)		(10,200	)		107			209			(10,200	)
Nonperforming Loans to Total Loans		0.57			0.65			0.39			0.44			0.47			(8	)		10			0.57			0.47			10

(a)
End of period loans include loans held for sale of $18,022 million, $12,816 million, $14,217 million, $14,334 million, and $17,105 million at December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.

(b)
Includes demand and savings deposits.

(c)
Average loans include loans held for sale of $13,534 million, $14,479 million, $15,638 million, $15,311 million, and $21,633 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale are $14,736 million and $25,293 million for 2004 and 2003, respectively. These amounts are not included in the net charge-off rate.

(d)
Includes $406 million of net charge-offs related to the Manufactured Home Loan portfolio in the fourth quarter of 2004.

(e)
Nonperforming loans include loans held for sale of $13 million, $74 million, $44 million, $50 million, and $45 million at December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.

Page 12


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
RETAIL BUSINESSES
HOME FINANCE
PRIME PRODUCTION AND SERVICING
Production	$	196		$	168		$	186		$	178		$	318			17	%		(38	)%	$	728		$	1,339			(46	)%
Servicing:
Mortgage Servicing Revenue, net of amortization		169			134			193			155			141			26			20			651			453			44
MSR, net of hedging		(187	)		153			86			61			(6	)		NM			NM			113			784			(86	)

Total Net Revenue		178			455			465			394			453			(61	)		(61	)		1,492			2,576			(42	)
Noninterest Expense		266			296			264			289			311			(10	)		(14	)		1,115			1,124			(1	)
Operating Earnings		(56	)		103			128			65			90			NM			NM			240			918			(74	)

CONSUMER REAL ESTATE LENDING
Total Net Revenue	$	725		$	704		$	512		$	435		$	418			3			73		$	2,376		$	1,473			61
Provision for Credit Losses		(20	)		65			38			(9	)		13			NM			NM			74			240			(69	)
Noninterest Expense		283			264			172			203			176			7			61			922			606			52
Operating Earnings		295			237			193			156			148			24			99			881			414			113

TOTAL HOME FINANCE
Total Net Revenue	$	903		$	1,159		$	977		$	829		$	871			(22	)		4		$	3,868		$	4,049			(4	)
Provision for Credit Losses		(20	)		65			38			(9	)		13			NM			NM			74			240			(69	)
Noninterest Expense		549			560			436			492			487			(2	)		13			2,037			1,730			18
Operating Earnings		239			340			321			221			238			(30	)		—			1,121			1,332			(16	)

Origination Volume by Channel (in billions)
Retail	$	18.5		$	19.7		$	20.8		$	15.2		$	16.6			(6	)		11		$	74.2		$	90.8			(18	)
Wholesale		11.7			11.6			15.7			9.5			11.1			1			5			48.5			65.6			(26	)
Correspondent		4.2			5.4			7.9			5.3			9.3			(22	)		(55	)		22.8			44.5			(49	)
Correspondent Negotiated Transactions		10.0			11.3			12.5			7.7			14.0			(12	)		(29	)		41.5			83.3			(50	)

Total		44.4			48.0			56.9			37.7			51.0			(8	)		(13	)		187.0			284.2			(34	)

Origination Volume by Business (in billions)
Mortgage	$	32.4		$	34.1		$	47.1		$	31.0		$	43.7			(5	)		(26	)	$	144.6		$	259.5			(44	)
Home Equity		12.0			13.9			9.8			6.7			7.3			(14	)		64			42.4			24.7			72

Total		44.4			48.0			56.9			37.7			51.0			(8	)		(13	)		187.0			284.2			(34	)
Business Metrics (in billions)
Loans Serviced (Ending)	$	562.0		$	553.5		$	492.5		$	475.0		$	470.0			2			20		$	562.0		$	470.0			20
MSR Net Carrying Value (Ending)		5.1			5.2			5.7			4.2			4.8			(2	)		6			5.1			4.8			6
End of Period Loans Owned
Mortgage Loans Held for Sale		14.2			9.5			13.6			12.8			15.9			49			(11	)		14.2			15.9			(11	)
Mortgage Loans Retained		42.6			46.5			40.5			36.5			34.5			(8	)		23			42.6			34.5			23
Home Equity and Other Loans		67.9			67.3			29.8			26.3			24.1			1			182			67.9			24.1			182

Total End of Period Loans Owned		124.7			123.3			83.9			75.6			74.5			1			67			124.7			74.5			67
Average Loans Owned
Mortgage Loans Held for Sale		10.1			10.9			14.6			12.9			20.0			(7	)		(50	)		12.1			23.5			(49	)
Mortgage Loans Retained		44.6			44.0			38.2			35.8			38.2			1			17			40.7			32.0			27
Home Equity and Other Loans		70.1			66.2			27.0			24.1			21.9			6			220			47.0			19.4			142

Total Average Loans Owned		124.8			121.1			79.8			72.8			80.1			3			56			99.8			74.9			33
Overhead Ratio		61	%		48	%		45	%		59	%		56	%		1,300	bp	500bp				53	%		43	%		1,000	bp

Credit Quality Statistics
30+ Day Delinquency Rate		1.27	%		1.50	%		1.18	%		1.32	%		1.81	%		(23	)		(54	)		1.27	%		1.81	%		(54	)
Net Charge-offs
Mortgage	$	5		$	6		$	5		$	3		$	8			(17	)%		(38	)%	$	19		$	26			(27	)%
Home Equity and Other Loans (a)		449			57			23			25			29			NM			NM			554			109			408

Total Net Charge-offs		454			63			28			28			37			NM			NM			573			135			324
Net Charge-off Rate
Mortgage		0.04	%		0.05	%		0.05	%		0.03	%		0.08	%		(1	)bp		(4	)bp		0.05	%		0.08	%		(3	)bp
Home Equity and Other Loans		2.55			0.34			0.34			0.42			0.53			221			202			1.18			0.56			62
Total Net Charge-off Rate (b)		1.57			0.23			0.17			0.19			0.24			134			133			0.65			0.26			39
Nonperforming Assets	$	844		$	997		$	468		$	516		$	546			(15	)%		55	%	$	844		$	546			55	%

(a)
Fourth quarter and full year 2004 includes $406 million of net charge-offs related to the Manufactured Home Loan portfolio.

(b)
Excludes mortgage loans held for sale.

Page 13


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
RETAIL BUSINESSES, CONTINUED
CONSUMER & SMALL BUSINESS BANKING
Total Net Revenue	$	2,105		$	2,076		$	615		$	589		$	615			1	%		242	%	$	5,385		$	2,422			122	%
Provision for Credit Losses		39			79			20			27			18			(51	)		117			165			76			117
Noninterest Expense		1,362			1,379			593			647			581			(1	)		134			3,981			2,358			69
Operating Earnings		430			377			2			(49	)		12			14			NM			760			(4	)		NM

Business Metrics (in billions)
End of Period Balances
Small Business Loans	$	12.5		$	12.4		$	2.2		$	2.2		$	2.2			1			468		$	12.5		$	2.2			468
Consumer and Other Loans (a)		2.2			2.3			1.9			2.0			2.0			(4	)		10			2.2			2.0			10

Total Loans		14.7			14.7			4.1			4.2			4.2			—			250			14.7			4.2			250
Core Deposits (b)		146.7			144.9			70.1			69.5			66.4			1			121			146.7			66.4			121
Total Deposits		172.2			170.6			79.9			79.6			76.7			1			125			172.2			76.7			125
Average Balances
Small Business Loans		12.4			12.4			2.2			2.2			2.1			—			490			7.3			2.1			248
Consumer and Other Loans (a)		2.2			2.3			1.9			2.0			2.0			(4	)		10			2.1			2.0			5

Total Loans		14.6			14.7			4.1			4.2			4.1			(1	)		256			9.4			4.1			129
Core Deposits (b)		148.1			148.2			72.5			70.3			67.4			—			120			110.0			64.8			70
Total Deposits		172.2			172.9			81.1			79.2			76.5			—			125			126.6			74.4			70

Number of:
Branches		2,508			2,467			569			564			561			41	#		1,947	#		2,508			561			1,947	#
ATMs		6,650			6,587			1,921			1,927			1,931			63			4,719			6,650			1,931			4,719
Personal Bankers		5,324			5,341			1,744			1,807			1,820			(17	)		3,504			5,324			1,820			3,504
Personal Checking Accounts (in thousands)		7,286			7,222			1,982			1,984			1,984			64			5,302			7,286			1,984			5,302
Business Checking Accounts (in thousands)		894			891			352			350			347			3			547			894			347			547
Online Registered Customers (in thousands)		6,587			6,084			NA			NA			NA			503			NM			6,587			NA			NM
Debit Cards Issued (in thousands)		8,392			8,282			2,430			2,368			2,380			110			6,012			8,392			2,380			6,012
Overhead Ratio		65	%		66	%		96	%		110	%		94	%		(100	)bp		(2,900	)bp		74	%		97	%		(2,300	)bp

Retail Brokerage Business Metrics
Investment Sales Volume	$	2,770		$	2,563		$	1,047		$	944		$	924			8	%		200	%	$	7,324		$	3,579			105	%
Number of Dedicated Investment Sales Representatives		1,364			1,393			390			377			349			(2	)		291			1,364			349			291

Credit Quality Statistics
Net Charge-offs
Small Business	$	32		$	24		$	12		$	9		$	8			33			300		$	77		$	35			120
Consumer and Other Loans		24			36			9			8			16			(33	)		50			77			40			93

Total Net Charge-Offs		56			60			21			17			24			(7	)		133			154			75			105
Net Charge-off Rate
Small Business		1.03	%		0.77	%		2.19	%		1.65	%		1.51	%		26	bp		(48	)bp		1.05	%		1.67	%		(62	)bp
Consumer and Other Loans		4.34			6.23			1.91			1.61			3.17			(189	)		117			3.67			2.00			167
Total Net Charge-Off Rate		1.53			1.62			2.06			1.63			2.32			(9	)		(79	)		1.64			1.83			(19	)
Nonperforming Assets	$	299		$	313		$	85		$	80		$	72			(4	)%		315	%	$	299		$	72			315	%

(a)
Primarily community development loans.

(b)
Includes demand and savings deposits.

Page 14


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
RETAIL BUSINESSES
AUTO & EDUCATION FINANCE
Total Net Revenue	$	364		$	397		$	218		$	166		$	207			(8	)%		76	%	$	1,145		$	842			36	%
Provision for Credit Losses		59			95			20			36			41			(38	)		44			210			205			2
Noninterest Expense		166			163			80			81			77			2			116			490			291			68
Operating Earnings		84			85			71			30			53			(1	)		58			270			206			31

Business Metrics (in billions)
End of Period Loans and Lease Receivables
Loans Outstanding:	$	54.6		$	53.7		$	34.9		$	34.9		$	33.7			2			62		$	54.6		$	33.7			62
Lease Receivables		8.0			8.9			8.6			9.1			9.5			(10	)		(16	)		8.0			9.5			(16	)

Total End of Period Loans and Lease Receivables		62.6			62.6			43.5			44.0			43.2			—			45			62.6			43.2			45
Average Loans and Lease Receivables
Loans Outstanding (Average) (a)	$	54.2		$	52.9		$	35.2		$	35.0		$	33.9			2			60		$	44.3		$	32.0			38
Lease Receivables (Average)		8.4			9.2			8.9			9.3			9.6			(9	)		(13	)		9.0			9.7			(7	)

Total Average Loans and Lease Receivables (a)		62.6			62.1			44.1			44.3			43.5			1			44			53.3			41.7			28
Overhead Ratio		46	%		41	%		37	%		49	%		37	%		500	bp		900	bp		43	%		35	%		800	bp

Credit Quality Statistics
30+ Day Delinquency Rate		1.55	%		1.38	%		1.04	%		1.05	%		1.42	%		17			13			1.55	%		1.42	%		13
Net Charge-offs
Loans	$	85		$	83		$	23		$	28		$	33			2	%		158	%	$	219		$	130			68	%
Lease Receivables		11			13			8			12			10			(15	)		10			44			41			7

Total Net Charge-offs		96			96			31			40			43			—			123			263			171			54
Net Charge-off Rate
Loans (a)		0.67	%		0.65	%		0.27	%		0.35	%		0.41	%		2	bp		26	bp		0.52	%		0.43	%		9	bp
Lease Receivables		0.52			0.56			0.36			0.52			0.41			(4	)		11			0.49			0.42			7
Total Net Charge-off Rate (a)		0.65			0.64			0.29			0.38			0.41			1			24			0.52			0.43			9
Nonperforming assets	$	242		$	247		$	140		$	140		$	157			(2	)%		54	%	$	242		$	157			54	%

INSURANCE
Total Net Revenue	$	173		$	168		$	25		$	27		$	29			3			497		$	393		$	115			242
Noninterest Expense		138			136			22			21			25			1			452			317			92			245
Operating Earnings		22			20			2			4			2			10			NM			48			13			269
Memo:
Consolidated Gross Insurance-Related Revenue (b)		421			429			165			176			159			(2	)		165			1,191			611			95

Business Metrics — Ending Balances
Invested Assets	$	7,368		$	7,489		$	1,729		$	1,710		$	1,559			(2	)		373		$	7,368		$	1,559			373
Policy Loans		397			398			—			—			—			—			NM			397			—			NM
Insurance Policy and Claims Reserves		7,279			7,477			1,255			1,193			1,096			(3	)		NM			7,279			1,096			NM
Term Life Premiums — First Year Annualized		13			15			—			—			—			(13	)		NM			28			—			NM
Proprietary Annuity Sales		35			39			58			76			80			(10	)		(56	)		208			548			(62	)
Policies in Force — Direct / Assumed (in thousands)		2,611			2,633			608			622			631			(1	)		314			2,611			631			314
Insurance in Force — Direct / Assumed		277,827			274,390			33,772			33,161			31,992			1			NM			277,827			31,992			NM
Insurance in Force — Retained		80,691			76,727			33,772			33,161			31,992			5			152			80,691			31,992			152
A.M. Best Rating		A			A			A			A			A									A			A

(a)
Average loans include loans held for sale of $3.4 billion, $2.2 billion, $1.1 billion, $2.4 billion, and $1.6 billion for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale were $2.3 billion and $1.8 billion for 2004 and 2003, respectively. These are not included in the net charge-off rate.

(b)
Includes revenue reported in the results of other businesses.

Page 15


JPMORGAN CHASE & CO. CARD SERVICES — MANAGED BASIS FINANCIAL HIGHLIGHTS (in millions, except ratio data and where otherwise noted)



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE
Asset Management, Administration and Commissions	$	—		$	26		$	25		$	24		$	26			NM			NM		$	75		$	108			(31	)%
Credit Card Income		886			784			271			238			271			13	%		227	%		2,179			930			134
Other Income		31			44			20			22			23			(30	)		35			117			54			117

Noninterest Revenue		917			854			316			284			320			7			187			2,371			1,092			117
Net Interest Income		2,913			2,917			1,271			1,273			1,295			—			125			8,374			5,052			66

TOTAL NET REVENUE		3,830			3,771			1,587			1,557			1,615			2			137			10,745			6,144			75

Managed Provision for Credit Losses		1,735			1,662			748			706			792			4			119			4,851			2,904			67

NONINTEREST EXPENSE
Compensation Expense		270			317			150			156			144			(15	)		88			893			582			53
Noncompensation Expense		825			926			353			381			345			(11	)		139			2,485			1,336			86
Amortization of Intangibles		187			194			62			62			65			(4	)		188			505			260			94

TOTAL NONINTEREST EXPENSE		1,282			1,437			565			599			554			(11	)		131			3,883			2,178			78

Operating Earnings Before Income Tax Expense		813			672			274			252			269			21			202			2,011			1,062			89
Income Tax Expense		298			251			98			90			96			19			210			737			379			94

OPERATING EARNINGS	$	515		$	421		$	176		$	162		$	173			22			198		$	1,274		$	683			87

Memo: Net Securitization Gains (Amortization)	$	—		$	(2	)	$	(4	)	$	(2	)	$	4			NM			NM		$	(8	)	$	1			NM

FINANCIAL METRICS
ROE		17	%		14	%		21	%		19	%		20	%		300	bp		(300	)bp		17	%		20	%		(300	)bp
Overhead Ratio		33			38			36			38			34			(500	)		(100	)		36			35			100
% of Average Managed Outstandings:
Net Interest Income		8.79			8.90			9.98			9.95			10.08			(11	)		(129	)		9.16			9.95			(79	)
Managed Provision for Credit Losses		5.24			5.07			5.88			5.52			6.17			17			(93	)		5.31			5.72			(41	)
Noninterest Revenue		2.77			2.61			2.48			2.22			2.49			16			28			2.59			2.15			44
Risk Adjusted Margin		6.32			6.44			6.59			6.65			6.41			(12	)		(9	)		6.45			6.38			7
Noninterest Expense		3.87			4.39			4.44			4.68			4.31			(52	)		(44	)		4.25			4.29			(4	)
Pre-tax Income		2.45			2.05			2.15			1.97			2.09			40			36			2.20			2.09			11
Operating Earnings		1.55			1.28			1.38			1.27			1.35			27			20			1.39			1.35			4

BUSINESS METRICS
Charge Volume (in billions)	$	75.3		$	73.3		$	23.5		$	21.5		$	23.5			3	%		220	%	$	193.6		$	88.2			120	%
Net Accounts Opened (in thousands) (a)		2,729			2,755			1,013			1,026			1,024			(1	)		167			7,523			4,177			80
Credit Cards Issued (in thousands)		94,285			95,946			35,529			35,239			35,103			(2	)		169			94,285			35,103			169
Number of Registered Internet Customers (in millions)		13.6			12.4			4.5			4.1			3.7			10			268			13.6			3.7			268

Merchant Acquiring Business
Bank Card Volume (in billions)	$	135.9		$	123.5		$	71.8		$	65.0		$	73.1			10			86		$	396.2		$	261.2			52
Total Transactions (in millions)		4,462			3,972			1,875			1,757			1,967			12			127			12,066			7,154			69

(a)
Net accounts opened includes originations, purchases and sales.

Page 16


JPMORGAN CHASE & CO. CARD SERVICES — MANAGED BASIS FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data)



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
SELECTED ENDING BALANCES
Loans:
Loans on Balance Sheet	$	64,575		$	60,241		$	17,182		$	16,639		$	17,426			7	%		271	%	$	64,575		$	17,426			271	%
Securitized Loans		70,795			71,256			34,138			34,478			34,856			(1	)		103			70,795			34,856			103

Managed Loans	$	135,370		$	131,497		$	51,320		$	51,117		$	52,282			3			159		$	135,370		$	52,282			159

SELECTED AVERAGE BALANCES
Managed Assets	$	138,013		$	136,753		$	51,510		$	51,749		$	51,482			1			168		$	94,741		$	51,406			84
Loans:
Loans on Balance Sheet	$	61,317		$	59,386		$	17,155		$	17,037		$	16,442			3			273		$	38,842		$	17,604			121
Securitized Loans		70,505			70,980			34,052			34,425			34,504			(1	)		104			52,590			33,169			59

Managed Loans	$	131,822		$	130,366		$	51,207		$	51,462		$	50,946			1			159		$	91,432		$	50,773			80

Equity		11,800			11,800			3,346			3,392			3,403			—			247			7,608			3,440			121

Headcount		19,598			20,473			9,975			10,838			10,612			(4	)%		85	%		19,598			10,612			85

CREDIT QUALITY STATISTICS
Net Charge-offs	$	1,735		$	1,598		$	745		$	743		$	741			9			134		$	4,821		$	2,996			61
Net Charge-off Rate		5.24	%		4.88	%		5.85	%		5.81	%		5.77	%		36	bp		(53	)bp		5.27	%		5.90	%		(63	)bp

Delinquency ratios
30+ days		3.70	%		3.81	%		4.26	%		4.41	%		4.68	%		(11	)		(98	)		3.70	%		4.68	%		(98	)
90+ days		1.72			1.75			1.94			2.15			2.19			(3	)		(47	)		1.72			2.19			(47	)
Allowance for Loan Losses	$	2,994		$	2,273		$	1,191		$	1,188		$	1,225			32	%		144	%	$	2,994		$	1,225			144	%
Allowance for Loan Losses to Period-end Loans (a)		4.64	%		3.77	%		6.93	%		7.14	%		7.03	%		87	bp		(239	)bp		4.64	%		7.03	%		(239	)bp

(a)
The heritage Bank One seller’s interest was decertificated effective July 1, 2004, and is reported in Loans on the Consolidated balance sheet. As a result, the Allowance for Loan Losses to Period-end Loans ratio beginning September 30, 2004, declined as the remaining portion of the decertificated seller’s interest was recorded at fair value without a corresponding allowance for loan loss.

Page 17


JPMORGAN CHASE & CO. CARD RECONCILIATION OF REPORTED AND MANAGED DATA (in millions)



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT DATA (a)
Credit Card Income
Reported Data for the period	$	1,672		$	1,632		$	578		$	564		$	639			2	%		162	%	$	4,446		$	2,309			93	%
Securitization Adjustments		(786	)		(848	)		(307	)		(326	)		(368	)		7			(114	)		(2,267	)		(1,379	)		(64	)

Managed Credit Card Income	$	886		$	784		$	271		$	238		$	271			13			227		$	2,179		$	930			134


Other Income Reported Data for the Period	$	30		$	47		$	65		$	61		$	52			(36	)		(42	)	$	203		$	125			62
Securitization Adjustments		1			(3	)		(45	)		(39	)		(29	)	NM			NM				(86	)		(71	)		(21	)

Managed Other Income	$	31		$	44		$	20		$	22		$	23			(30	)		35		$	117		$	54			117


Net Interest Income Reported Data for the Period	$	1,117		$	1,138		$	433		$	435		$	436			(2	)		156		$	3,123		$	1,732			80
Securitization Adjustments		1,796			1,779			838			838			859			1			109			5,251			3,320			58

Managed Net Interest Income	$	2,913		$	2,917		$	1,271		$	1,273		$	1,295			—			125		$	8,374		$	5,052			66


Total Net Revenue (b) Reported Data for the Period	$	2,819		$	2,843		$	1,101		$	1,084		$	1,153			(1	)		144		$	7,847		$	4,274			84
Securitization Adjustments		1,011			928			486			473			462			9			119			2,898			1,870			55

Managed Total Net Revenue	$	3,830		$	3,771		$	1,587		$	1,557		$	1,615			2			137		$	10,745		$	6,144			75


Provision for Credit Losses Reported Data for the Period	$	724		$	734		$	262		$	233		$	330			(1	)		119		$	1,953		$	1,034			89
Securitization Adjustments		1,011			928			486			473			462			9			119			2,898			1,870			55

Managed Provision for Credit Losses	$	1,735		$	1,662		$	748		$	706		$	792			4			119		$	4,851		$	2,904			67


BALANCE SHEET — AVERAGE BALANCES
Total Average Assets Reported Data for the Period	$	69,485		$	67,718		$	18,484		$	18,392		$	18,037			3			285		$	43,657		$	19,041			129
Securitization Adjustments		68,528			69,035			33,026			33,357			33,445			(1	)		105			51,084			32,365			58

Managed Average Assets	$	138,013		$	136,753		$	51,510		$	51,749		$	51,482			1			168		$	94,741		$	51,406			84


CREDIT QUALITY STATISTICS
Net Charge-offs Reported Net Charge-offs Data for the period	$	724		$	670		$	259		$	270		$	279			8			159		$	1,923		$	1,126			71
Securitization Adjustments		1,011			928			486			473			462			9			119			2,898			1,870			55

Managed Net Charge-offs	$	1,735		$	1,598		$	745		$	743		$	741			9			134		$	4,821		$	2,996			61

(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 18


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	147		$	162		$	67		$	65		$	69			(9	)%		113	%	$	441		$	301			47	%
Asset Management, Administration and Commissions		12			12			4			4			4			—			200			32			19			68
Other Income		103			51			29			26			27			102			281			209			73			186

Noninterest Revenue		262			225			100			95			100			16			162			682			393			74
Net Interest Income		623			608			234			227			240			2			160			1,692			959			76

TOTAL NET REVENUE		885			833			334			322			340			6			160			2,374			1,352			76


Provision for Credit Losses		21			14			19			(13	)		(10	)		50		NM				41			6		NM

NONINTEREST EXPENSE

Compensation Expense		153			176			65			71			66			(13	)		132			465			285			63
Noncompensation Expense		281			286			138			138			131			(2	)		115			843			534			58
Amortization of Intangibles		17			18			—			—			—			(6	)	NM				35			3		NM

TOTAL NONINTEREST EXPENSE		451			480			203			209			197			(6	)		129			1,343			822			63


Operating Earnings Before Income Tax Expense		413			339			112			126			153			22			170			990			524			89
Income Tax Expense		159			124			47			52			64			28			148			382			217			76

OPERATING EARNINGS	$	254		$	215		$	65		$	74		$	89			18			185		$	608		$	307			98


MEMO:
Revenue by:
Lending	$	280		$	314		$	86		$	84		$	95			(11	)		195		$	764		$	396			93
Treasury & Securities Services		528			499			221			219			220			6			140			1,467			896			64
Investment Banking		61			24			20			15			28			154			118			120			66			82
Other		16			(4	)		7			4			(3	)	NM			NM				23			(6	)	NM

Total Commercial Banking Revenue	$	885		$	833		$	334		$	322		$	340			6			160		$	2,374		$	1,352			76


FINANCIAL RATIOS
ROE		30	%		25	%		35	%		37	%		38	%	500		bp	(800		)bp		29	%		29	%	—		bp
ROA		1.81			1.53			1.51			1.83			2.22			28			(41	)		1.67			1.87			(20	)
Overhead Ratio		51			58			61			65			58			(700	)		(700	)		57			61			(400	)

SELECTED BALANCE SHEET (Average)
Total Assets	$	55,837		$	55,957		$	17,281		$	16,239		$	15,875			—	%		252	%	$	36,435		$	16,460			121	%
Loans and Leases (a)		50,469			50,324			14,717			13,764			13,400			—			277			32,417			14,049			131
Deposits		66,719			64,796			38,058			36,596			34,005			3			96			51,620			32,880			57
Equity		3,400			3,400			747			795			928			—			266			2,093			1,059			98

Headcount		4,555			4,595			1,690			1,701			1,730			(1	)		163			4,555			1,730			163

CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs (Recoveries)	$	45		$	(13	)	$	30		$	(1	)	$	5		NM			NM			$	61		$	76			(20	)
Nonperforming Loans		527			579			132			165			123			(9	)		328			527			123			328
Allowance for Loan Losses		1,322			1,350			107			111			122			(2	)	NM				1,322			122		NM
Allowance for Lending Related Commitments		169			164			24			28			26			3		NM				169			26		NM

Net Charge-off Rate		0.35	%		(0.10	)%		0.82	%		(0.03	)%		0.15	%	45		bp	20		bp		0.19	%		0.54	%	(35		)bp
Allowance for Loan Losses to Average Loans		2.62			2.68			0.73			0.81			0.91			(6	)		171			4.08			0.87			321
Allowance for Loan Losses to Nonperforming Loans		251			233			81			67			99			1,800			15,200			251			99			15,200
Nonperforming Loans to Average Loans		1.04			1.15			0.90			1.20			0.92			(11	)		12			1.63			0.88			75

(a)
Includes a $411 million reclass from investment securities in the fourth quarter of 2004.

Page 19


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



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE

Lending & Deposit Related Fees	$	200		$	218		$	111		$	118		$	115			(8	)%		74	%	$	647		$	470			38	%
Asset Management, Administration and Commissions		630			600			633			582			518			5			22			2,445			1,903			28
Other Income		112			103			98			69			111			9			1			382			288			33

Noninterest Revenue		942			921			842			769			744			2			27			3,474			2,661			31
Net Interest Income		471			418			251			243			236			13			100			1,383			947			46

TOTAL NET REVENUE		1,413			1,339			1,093			1,012			980			6			44			4,857			3,608			35


Provision for Credit Losses		3			—			3			1			—		NM			NM				7			1		NM
Credit Reimbursement to IB (a)		(43	)		(43	)		(2	)		(2	)		5			—		NM				(90	)		36		NM

NONINTEREST EXPENSE
Compensation Expense		471			472			347			339			330			—			43			1,629			1,257			30
Noncompensation Expense		643			654			582			512			463			(2	)		39			2,391			1,745			37
Amortization of Intangibles		32			30			15			16			8			7			300			93			26			258

TOTAL NONINTEREST EXPENSE		1,146			1,156			944			867			801			(1	)		43			4,113			3,028			36


Operating Earnings before Income Tax Expense		221			140			144			142			184			58			20			647			615			5
Income Tax Expense (Benefit)		76			44			43			44			61			73			25			207			193			7

OPERATING EARNINGS	$	145		$	96		$	101		$	98		$	123			51			18		$	440		$	422			4


REVENUE BY BUSINESS
Treasury Services (b)	$	642		$	629		$	366		$	357		$	311			2			106		$	1,994		$	1,200			66
Investor Services		454			404			453			398			380			12			19			1,709			1,448			18
Institutional Trust Services		317			306			274			257			289			4			10			1,154			960			20

TOTAL NET REVENUE	$	1,413		$	1,339		$	1,093		$	1,012		$	980			6			44		$	4,857		$	3,608			35


MEMO
Treasury Services Firmwide Revenue (b)	$	1,238		$	1,205		$	617		$	605		$	561			3			121		$	3,665		$	2,214			66
Treasury & Securities Services Firmwide Revenue (b)		2,009			1,915			1,344			1,260			1,230			5			63			6,528			4,622			41

FINANCIAL RATIOS
ROE		30	%		20	%		13	%		12	%		18	%	1,000		bp	1,200		bp		17	%		15	%	200		bp
Overhead Ratio		81			86			86			86			82			(500	)		(100	)		85			84			100

MEMO
Treasury Services Firmwide Overhead Ratio (c)		61			59			65			69			66			200			(500	)		62			62			—
Treasury & Securities Services Firmwide Overhead Ratio (c)		69			72			79			78			75			(300	)		(600	)		74			76			(200	)

BUSINESS METRICS
Assets under Custody (in billions)	$	9,137		$	8,261		$	7,980		$	8,001		$	7,597			11	%		20	%	$	9,137		$	7,597			20	%
Corporate Trust Securities under Administration (in billions) (d)		6,593			6,569			6,241			6,373			6,127			—			8			6,593			6,127			8

SELECTED BALANCE SHEET (Average)
Total Assets	$	28,538		$	24,831		$	21,040		$	19,241		$	20,015			15			43		$	23,430		$	18,379			27
Loans		9,988			8,457			6,783			6,137			6,246			18			60			7,849			6,009			31
Deposits U.S. Deposits		101,351			90,466			73,795			65,813			60,249			12			68			82,928			54,116			53
Non-U.S. Deposits		48,726			48,234			43,118			39,932			35,575			1			37			45,022			34,518			30

Total Deposits		150,077			138,700			116,913			105,745			95,824			8			57			127,950			88,634			44
Equity		1,900			1,900			3,203			3,189			2,741			—			(31	)		2,544			2,738			(7	)

MEMO
Treasury Services Firmwide Deposits (e)		125,345			121,123			77,262			74,098			67,959			3			84			99,587			66,843			49
Treasury & Securities Services Firmwide Deposits (e)		211,988			198,860			150,463			139,336			127,346			7			66			175,327			120,894			45

Headcount		22,612			22,246			15,023			15,341			15,145			2			49			22,612			15,145			49

(a)
Management has charged TSS a credit reimbursement, which is the pre-tax amount of earnings, less cost of capital, related to certain exposures managed within the Investment Bank (“IB”) credit portfolio on behalf of clients shared with TSS.

(b)
TSS and Treasury Services (“TS”) firmwide revenues include TS revenues recorded in certain other lines of business. Revenue associated with Treasury Services’ customers who are also customers of the Commercial Banking, Consumer & Small Business Banking and Asset & Wealth Management lines of business are reported in these other lines of business and are excluded from Treasury Services as follows:



											4QTR 2004										2004
	4QTR		3QTR		2QTR		1QTR		4QTR		Change						Full Year				Change
	2004		2004		2004		2004		2003		3Q 2004			4Q 2003			2004		2003		2003
Treasury Services Revenue Reported in Commercial Banking	$	528	$	499	$	221	$	219	$	220		6	%		140	%	$	1,467	$	896		64	%
Treasury Services Revenue Reported in Other Lines of Business		68		77		30		29		30		(12	)		127			204		118		73

Note:
Foreign Exchange revenues are apportioned between TSS and the Investment Bank and only TSS’s share is included in TSS Firmwide revenue.

(c)
TSS and TS Firmwide Overhead Ratios have been calculated based on the Firmwide Revenues described in footnote (b) and TSS or TS expenses, respectively, including those allocated to certain other lines of business.

(d)
Corporate Trust Securities under Administration include debt held in trust on behalf of third parties and debt serviced as agent.

(e)
TSS and TS Firmwide Deposits include TS’ deposits recorded in certain other lines of business. Deposits associated with Treasury Services’ customers who are also customers of the Commercial Banking line of business are reported in that line of business and are excluded from Treasury Services.

Page 20


JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data, and where otherwise noted)



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
REVENUE
Lending & Deposit Related Fees	$	10		$	10		$	4		$	4		$	5			—	%		100	%	$	28		$	19			47	%
Asset Management, Administration and Commissions		952			859			657			672			629			11			51			3,140			2,258			39
Other Income		60			55			50			50			87			9			(31	)		215			205			5

Noninterest Revenue		1,022			924			711			726			721			11			42			3,383			2,482			36
Net Interest Income		288			269			117			122			124			7			132			796			488			63

TOTAL NET REVENUE		1,310			1,193			828			848			845			10			55			4,179			2,970			41


Provision for Credit Losses		(21	)		1			(4	)		10			36		NM			NM				(14	)		35		NM

NONINTEREST EXPENSE
Compensation Expense		459			452			343			325			309			2			49			1,579			1,213			30
Noncompensation Expense		436			409			335			322			337			7			29			1,502			1,265			19
Amortization of Intangibles		24			23			3			2			2			4		NM				52			8		NM

TOTAL NONINTEREST EXPENSE		919			884			681			649			648			4			42			3,133			2,486			26


Operating Earnings before Income Tax Expense		412			308			151			189			161			34			156			1,060			449			136

Income Tax Expense (Benefit)		149			111			52			67			55			34			171			379			162			134

OPERATING EARNINGS	$	263		$	197		$	99		$	122		$	106			34			148		$	681		$	287			137


FINANCIAL RATIOS
ROE		44	%		33	%		7	%		9	%		8	%	1,100		bp	3,600		bp		17	%		5	%	1,200		bp
Overhead Ratio		70			74			82			77			77			(400	)		(700	)		75			84			(900	)
Pre-tax Margin Ratio (a)		31			26			18			22			19			500			1,200			25			15			1,000

BUSINESS METRICS
Number of:
Client Advisors		1,226			1,230			577			599			615			—	%		99	%		1,226			615			99	%
Brown Co Average Daily Trades		30,521			23,969			28,702			36,470			31,369			27			(3	)		29,901			27,150			10
Retirement Planning Services Participants		918,000			874,000			844,000			816,000			756,000			5			21			918,000			756,000			21
Star Rankings: (b)
% of Customer Assets in Funds Ranked 4 or Better		48	%		56	%		48	%		49	%		48	%		(14	)		—			48	%		48	%		—
% of Customer Assets in Funds Ranked 3 or Better		81	%		80	%		78	%		74	%		69	%		1			17			81	%		69	%		17

REVENUE BY CLIENT SEGMENT
Institutional	$	296		$	287		$	200		$	211		$	200			3			48		$	994		$	723			37
Private Bank		427			383			368			376			384			11			11			1,554			1,437			8
Private Client Services		260			251			19			20			19			4		NM				550			78		NM
Retail		327			272			241			241			242			20			35			1,081			732			48

Total Net Revenue	$	1,310		$	1,193		$	828		$	848		$	845			10			55		$	4,179		$	2,970			41


SELECTED BALANCE SHEET (Average)
Total Assets	$	40,689		$	39,882		$	35,083		$	35,295		$	34,141			2			19		$	37,751		$	33,780			12
Loans		25,966			25,408			17,620			17,097			16,816			2			54			21,545			16,678			29
Deposits		43,022			38,520			23,667			22,756			21,310			12			102			32,039			20,249			58
Equity		2,400			2,400			5,370			5,471			5,467			—			(56	)		3,902			5,507			(29	)

Headcount		12,287			12,368			8,690			8,554			8,520			(1	)		44			12,287			8,520			44

CREDIT DATA AND QUALITY STATISTICS
Net Charge-offs	$	5		$	6		$	6		$	55		$	1			(17	)		400		$	72		$	9		NM
Nonperforming Loans		79			125			102			115			173			(37	)		(54	)		79			173			(54	)
Allowance for Loan Losses		216			241			76			86			130			(10	)		66			216			130			66
Allowance for Lending Related Commitments		5			5			2			3			4			—			25			5			4			25

Net Charge-off Rate		0.08	%		0.09	%		0.14	%		1.29	%		0.02	%	(1		)bp	6		bp		0.33	%		0.05	%	28		bp
Allowance for Loan Losses to Average Loans		0.83			0.95			0.43			0.50			0.77			(12	)		6			1.00			0.78			22
Allowance for Loan Losses to Nonperforming Loans		273			193			75			75			75			8,000			19,800			273			75			19,800
Nonperforming Loans to Average Loans		0.30			0.49			0.58			0.67			1.03			(19	)		(73	)		0.37			1.04			(67	)

(a)
Pre-tax margin represents Operating Earnings before Income Taxes / Total Net Revenue, which is a comprehensive measure of pre-tax performance and is another basis by which AWM management evaluates its performance and that of its competitors. Pre-tax margin is an effective measure of AWM’s earnings after all costs are taken into consideration.

(b)
Derived from Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.

Page 21


JPMORGAN CHASE & CO. ASSET & WEALTH MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions, except ranking data)



						Heritage JPMC Only								4QTR 2004								H-JPMC Only			2004
	4QTR		3QTR			2QTR			1QTR		4QTR			Change						Full Year					Change
	2004		2004			2004			2004		2003			3Q 2004			4Q 2003			2004		2003			2003
Asset Class
Liquidity	$	232	$	210		$	152		$	159	$	156			10	%		49	%	$	232	$	156			49	%
Fixed Income		171		174			117			120		118			(2	)		45			171		118			45
Equities, Balanced and Other		388		351			306			310		287			11			35			388		287			35

Assets under Management		791		735			575			589		561			8			41			791		561			41
Custody / Brokerage / Administration / Deposits		478		434			221			216		203			10			135			478		203			135

Total Assets under Supervision	$	1,269	$	1,169		$	796		$	805	$	764			9			66		$	1,269	$	764			66


Client Segment
Institutional
Assets under Management	$	466	$	426		$	328		$	335	$	322			9			45		$	466	$	322			45
Custody / Brokerage / Administration / Deposits		184		170			—			—		—			8			NM			184		—			NM

Assets under Supervision		650		596			328			335		322			9			102			650		322			102
Private Bank
Assets under Management		139		136			139			141		138			2			1			139		138			1
Custody / Brokerage / Administration / Deposits		165		143			138			135		128			15			29			165		128			29

Assets under Supervision		304		279			277			276		266			9			14			304		266			14
Private Client Services
Assets under Management		53		51			7			7		8			4			NM			53		8			NM
Custody / Brokerage / Administration / Deposits		41		40			3			3		4			2			NM			41		4			NM

Assets under Supervision		94		91			10			10		12			3			NM			94		12			NM
Retail
Assets under Management		133		122			101			106		93			9			43			133		93			43
Custody / Brokerage / Administration / Deposits		88		81			80			78		71			9			24			88		71			24

Assets under Supervision		221		203			181			184		164			9			35			221		164			35

Total Assets under Supervision	$	1,269	$	1,169		$	796		$	805	$	764			9			66		$	1,269	$	764			66


Geographic Region
Americas
Assets under Management	$	562	$	531		$	370		$	377	$	365			6			54		$	562	$	365			54
Custody / Brokerage / Administration / Deposits		444		404			189			186		168			10			164			444		168			164

Assets under Supervision		1,006		935			559			563		533			8			89			1,006		533			89
International
Assets under Management		229		204			205			212		196			12			17			229		196			17
Custody / Brokerage / Administration / Deposits		34		30			32			30		35			13			(3	)		34		35			(3	)

Assets under Supervision		263		234			237			242		231			12			14			263		231			14

Total Assets under Supervision	$	1,269	$	1,169		$	796		$	805	$	764			9			66		$	1,269	$	764			66


Memo:
Mutual Funds Assets:
Liquidity	$	183	$	163		$	104		$	107	$	103			12			78		$	183	$	103			78
Fixed Income		41		48			27			28		27			(15	)		52			41		27			52
Equities, Balanced and Other		104		97			90			102		83			7			25			104		83			25

Total Mutual Funds Assets	$	328	$	308		$	221		$	237	$	213			6			54		$	328	$	213			54


Assets Under Supervision Rollforward
Beginning Balance	$	1,169	$	796		$	805		$	764	$	728			47	%		61	%	$	764	$	642			19	%
Net Asset Flows		18		(7	)		(1	)		15		(2	)		NM			NM			25		(16	)		NM
Market / Other Impact (a)		82		380			(8	)		26		38			(78	)		116			480		138			248

Ending Balance	$	1,269	$	1,169		$	796		$	805	$	764			9			66		$	1,269	$	764			66

(a)
Other reflects the Merger with Bank One ($376 billion) in the third quarter of 2004, and the acquisition of a majority interest in Highbridge Capital Management ($7 billion) in the fourth quarter of 2004 and the acquisition of RPS ($41 billion) in the second quarter of 2003.

Page 22


JPMORGAN CHASE & CO. CORPORATE FINANCIAL HIGHLIGHTS (in millions, except headcount data)



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
INCOME STATEMENT
Revenue
Securities / Private Equity Gains (Losses)	$	584		$	347		$	436		$	419		$	168			68	%		248	%	$	1,786		$	1,031			73	%
Other Income		(140	)		67			63			8			54			NM			NM			(2	)		214			NM

Noninterest Revenue		444			414			499			427			222			7			100			1,784			1,245			43
Net Interest Income		(667	)		(500	)		2			(57	)		(54	)		(33	)		NM			(1,222	)		(177	)		NM

TOTAL NET REVENUE		(223	)		(86	)		501			370			168			(159	)		NM			562			1,068			(47	)

Provision for Credit Losses		—			(1	)		(27	)		(82	)		(48	)		NM			NM			(110	)		124			NM

Noninterest Expense
Compensation Expense		662			786			462			516			395			(16	)		68			2,426			1,893			28
Noncompensation Expense		1,215			1,146			857			870			811			6			50			4,088			3,216			27
Net Expenses Allocated to Other Businesses		(1,417	)		(1,426	)		(1,186	)		(1,184	)		(1,119	)		1			(27	)		(5,213	)		(4,580	)		(14	)

TOTAL NONINTEREST EXPENSE		460			506			133			202			87			(9	)		429			1,301			529			146

Operating Earnings before Income Tax Expense		(683	)		(591	)		395			250			129			(16	)		NM			(629	)		415			NM
Income Tax Expense (Benefit)		(387	)		(372	)		70			(1	)		(130	)		(4	)		(198	)		(690	)		(253	)		(173	)

OPERATING EARNINGS	$	(296	)	$	(219	)	$	325		$	251		$	259			(35	)		NM		$	61		$	668			(91	)

SELECTED AVERAGE BALANCE SHEET
Short-term Investments (a)	$	19,252		$	26,432		$	9,903		$	2,592		$	4,614			(27	)		317		$	14,590		$	4,076			258
Investment Portfolio (b)		69,604			71,050			56,342			56,755			53,270			(2	)		31			63,475			63,506			—
Goodwill (c)		42,980			42,958			342			346			355			—			NM			21,773			293			NM
Total Assets		197,794			204,884			125,122			120,273			98,274			(3	)		101			162,233			104,394			55

Headcount		24,806			24,482			12,928			13,269			13,391			1			85			24,806			13,391			85

TREASURY
Securities Gains (Losses) (d)	$	77		$	109		$	41		$	120		$	6			(29	)		NM		$	347		$	999			(65	)

Investment Portfolio (Average)	$	63,362		$	65,508		$	51,509		$	50,580		$	47,077			(3	)		35		$	57,776		$	56,299			3

(a)
Represents federal funds sold, securities borrowed, trading assets — debt and equity instruments and trading assets — derivative receivables.

(b)
Represents investment securities and private equity investments.

(c)
Effective with the third quarter of 2004, all goodwill is allocated to the Corporate line of business. Prior to the third quarter of 2004, goodwill was allocated to the various lines of business.

(d)
Excludes gains/losses on securities used to manage risk associated with mortgage servicing rights.

Page 23


JPMORGAN CHASE & CO. CORPORATE FINANCIAL HIGHLIGHTS, CONTINUED (in millions)



							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
PRIVATE EQUITY
Private Equity Gains (Losses)
Direct Investments
Realized Gains	$	442		$	277		$	402		$	302		$	202			60	%		119	%	$	1,423		$	535			166	%
Write-ups / (Write-downs)		(111	)		(31	)		(27	)		(23	)		(52	)		(258	)		(113	)		(192	)		(404	)		52
Mark-to-Market Gains (Losses)		167			(27	)		(1	)		25			48			NM			248			164			215			(24	)

Total Direct Investments		498			219			374			304			198			127			152			1,395			346			303
Third-Party Fund Investments		8			16			18			(8	)		(39	)		(50	)		NM			34			(319	)		NM

Total Private Equity Gains (Losses)		506			235			392			296			159			115			218			1,429			27			NM
Other Income		16			14			11			12			11			14			45			53			47			13
Net Interest Income		(70	)		(89	)		(53	)		(59	)		(64	)		21			(9	)		(271	)		(264	)		(3	)

Total Net Revenue		452			160			350			249			106			183			326			1,211			(190	)		NM
Total Noninterest Expense		79			73			67			69			71			8			11			288			268			7

Operating Earnings before Income Tax Expense		373			87			283			180			35			329			NM			923			(458	)		NM
Income Tax Expense (Benefit)		134			27			96			64			12			396			NM			321			(168	)		NM

OPERATING EARNINGS	$	239		$	60		$	187		$	116		$	23			298			NM		$	602		$	(290	)		NM


Private Equity Portfolio Information
Direct Investments
Public Securities
Carrying Value	$	1,170		$	958		$	811		$	697		$	643			22			82
Cost		744			675			566			520			451			10			65
Quoted Public Value		1,758			1,415			1,306			1,107			994			24			77
Private Direct Securities
Carrying Value		5,686			6,011			4,821			5,177			5,508			(5	)		3
Cost		7,178			7,551			6,307			6,562			6,960			(5	)		3
Third-Party Fund Investments
Carrying Value		641			1,138			751			961			1,099			(44	)		(42	)
Cost		1,042			1,761			1,208			1,512			1,736			(41	)		(40	)


Total Private Equity Portfolio — Carrying Value	$	7,497		$	8,107		$	6,383		$	6,835		$	7,250			(8	)		3


Total Private Equity Portfolio — Cost	$	8,964		$	9,987		$	8,081		$	8,594		$	9,147			(10	)		(2	)

Page 24


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION (in millions)


											Dec 31, 2004
					Heritage JPMC Only						Change
	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30			Dec 31
	2004		2004		2004		2004		2003		2004			2003
CREDIT EXPOSURE
WHOLESALE (a)
Loans — U.S.	$	99,868	$	99,451	$	45,532	$	45,111	$	44,325		—	%		125	%
Loans — Non-U.S.		35,199		32,893		31,512		31,957		31,094		7			13

TOTAL WHOLESALE LOANS — REPORTED		135,067		132,344		77,044		77,068		75,419		2			79

CONSUMER (b)
Consumer Real Estate
Home Finance — Home Equity & Other		67,837		67,368		29,969		26,445		24,179		1			181
Home Finance — Mortgage		56,816		56,035		54,060		49,312		50,381		1			13
Auto & Education Finance		62,712		62,587		43,543		44,004		43,157		—			45
Small Business & Other Consumer		15,107		15,126		4,140		4,162		4,204		—			259
Credit Card Receivables — Reported		64,575		60,241		17,182		16,639		17,426		7			271

TOTAL CONSUMER LOANS — REPORTED		267,047		261,357		148,894		140,562		139,347		2			92

TOTAL LOANS — REPORTED		402,114		393,701		225,938		217,630		214,766		2			87
Credit Card Securitizations		70,795		71,256		34,138		34,478		34,856		(1	)		103

TOTAL LOANS — MANAGED		472,909		464,957		260,076		252,108		249,622		2			89
Derivative Receivables (c)		65,982		57,795		49,980		58,434		83,751		14			(21	)
Interests in Purchased Receivables (d)		31,722		30,479		—		—		4,752		4			NM
Other Receivables		—		—		108		108		108		NM			NM

TOTAL CREDIT-RELATED ASSETS		570,613		553,231		310,164		310,650		338,233		3			69
Wholesale Lending-Related Commitments		309,399		315,946		213,671		216,242		211,483		(2	)		46

TOTAL	$	880,012	$	869,177	$	523,835	$	526,892	$	549,716		1			60


Memo: Total by Category
Total Wholesale Exposure (e)	$	542,170	$	536,564	$	340,803	$	351,852	$	375,513		1			44
Total Consumer Managed Loans (f)		337,842		332,613		183,032		175,040		174,203		2			94

Total	$	880,012	$	869,177	$	523,835	$	526,892	$	549,716		1			60


WHOLESALE CREDIT EXPOSURE
Credit Exposure	$	542,170	$	536,564	$	340,803	$	351,852	$	375,513		1			44

Risk Profile of Credit Exposure:
Investment-Grade		441,930		429,198		282,127		290,150		309,783		3			43
Noninvestment-Grade:
Performing		98,074		104,990		56,530		59,245		63,343		(7	)		55
Nonperforming		1,815		2,021		1,772		2,126		2,365		(10	)		(23	)
Purchased Held for Sale Commercial Loans (g)		351		355		374		331		22		(1	)		NM


(a)		Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset & Wealth Management.
(b)		Includes Retail Financial Services and Card Services.
(c)		These amounts include the effect of legally enforceable master netting agreements. Effective January 1, 2004, the Firm elected to net cash paid and received under legally enforceable master netting agreements. Prior periods were not restated.
(d)		These represent undivided interests in pools of receivables and similar types of assets.
(e)		Represents Total Wholesale Loans, Derivative Receivables, Interests in Purchased Receivables, Other Receivables and Wholesale Lending-Related Commitments.
(f)		Represents Total Consumer Loans plus Credit Card Securitizations, excluding consumer lending-related commitments.
(g)		Represents distressed wholesale loans purchased as part of the IB’s proprietary investing activities.

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

Page 25


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data)


																Dec 31, 2004
							Heritage JPMC Only									Change
	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31			Sep 30			Dec 31
	2004			2004			2004			2004			2003			2004			2003
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS
Loans — U.S.	$	1,228		$	1,405		$	726		$	939		$	1,057			(13	)%		16	%
Loans — Non-U.S.		346			378			715			839			947			(8	)		(63	)

TOTAL WHOLESALE LOANS-REPORTED (a)		1,574			1,783			1,441			1,778			2,004			(12	)		(21	)

CONSUMER LOANS
Consumer Real Estate		673			789			320			355			374			(15	)		80
Auto & Education Finance		193			211			114			111			123			(9	)		57
Small Business & Other Consumer		295			308			85			80			72			(4	)		310
Credit Card Receivables — Reported		8			9			9			10			11			(11	)		(27	)

TOTAL CONSUMER LOANS-REPORTED		1,169			1,317			528			556			580			(11	)		102

TOTAL LOANS REPORTED (a)		2,743			3,100			1,969			2,334			2,584			(12	)		6
Derivative Receivables		241			238			223			240			253			1			(5	)
Other Receivables		—			—			108			108			108			NM			NM
Assets Acquired in Loan Satisfactions		247			299			182			200			216			(17	)		14

TOTAL NONPERFORMING ASSETS (a)	$	3,231		$	3,637		$	2,482		$	2,882		$	3,161			(11	)		2


PURCHASED HELD FOR SALE WHOLESALE LOANS (b)	$	351		$	355		$	374		$	331		$	22			(1	)		NM


TOTAL NONPERFORMING LOANS TO TOTAL LOANS		0.68	%		0.79	%		0.87	%		1.07	%		1.20	%		(11	)bp		(52	)bp

NONPERFORMING ASSETS BY LOB
Investment Bank	$	1,196		$	1,321		$	1,541		$	1,855		$	2,078			(9	)%		(42	)%
Retail Financial Services		1,385			1,557			693			736			775			(11	)		79
Card Services		8			9			9			10			11			(11	)		(27	)
Commercial Banking		547			606			132			166			124			(10	)		341
Treasury & Securities Services		14			4			5			—			—			250			NM
Asset and Wealth Management		81			140			102			115			173			(42	)		(53	)

Total	$	3,231		$	3,637		$	2,482		$	2,882		$	3,161			(11	)		2


(a)		Excludes purchased held-for-sale (“HFS”) wholesale loans.
(b)		Represents distressed wholesale loans purchased as part of the IB’s proprietary investing activities.

Page 26


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data)


							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
GROSS CHARGE-OFFS

Wholesale Loans	$	123		$	80		$	172		$	168		$	142			54	%		(13	)%	$	543		$	1,113			(51	)%
Consumer (Excluding Card)		658			269			104			112			128			145			414			1,143			475			141
Credit Card Receivables — Reported		784			760			281			294			302			3			160			2,119			1,230			72

Total Loans — Reported		1,565			1,109			557			574			572			41			174			3,805			2,818			35
Credit Card Securitizations		1,126			1,039			540			527			515			8			119			3,232			2,087			55

Total Loans — Managed		2,691			2,148			1,097			1,101			1,087			25			148			7,037			4,905			43


RECOVERIES

Wholesale Loans		55			104			119			79			151			(47	)		(64	)		357			348			3
Consumer (Excluding Card)		52			50			24			27			24			4			117			153			94			63
Credit Card Receivables — Reported		60			90			22			24			23			(33	)		161			196			104			88

Total Loans — Reported		167			244			165			130			198			(32	)		(16	)		706			546			29
Credit Card Securitizations		115			111			54			54			53			4			117			334			217			54

Total Loans — Managed		282			355			219			184			251			(21	)		12			1,040			763			36


NET CHARGE-OFFS

Wholesale Loans		68			(24	)		53			89			(9	)		NM			NM			186			765			(76	)
Consumer (Excluding Card)		606			219			80			85			104			177			483			990			381			160
Credit Card Receivables — Reported		724			670			259			270			279			8			159			1,923			1,126			71

Total Loans — Reported		1,398			865			392			444			374			62			274			3,099			2,272			36
Credit Card Securitizations		1,011			928			486			473			462			9			119			2,898			1,870			55

Total Loans — Managed	$	2,409		$	1,793		$	878		$	917		$	836			34			188		$	5,997		$	4,142			45


NET CHARGE-OFF RATES - ANNUALIZED

Wholesale Loans (a)		0.21	%		(0.08	)%		0.29	%		0.50	%		(0.05	)%		29	bp		26	bp		0.19	%		0.97	%		(78	)bp
Consumer (Excluding Card) (b)		1.28			0.47			0.29			0.32			0.39			81			89			0.67			0.40			27
Credit Card Receivables — Reported		4.70			4.49			6.07			6.37			6.73			21			(203	)		4.95			4.81			14
Total Loans — Reported (a) (b)		1.47			0.93			0.77			0.92			0.76			54			71			1.08			0.99			9
Credit Card Securitizations		5.70			5.20			5.74			5.53			5.31			50			39			5.51			4.24			127
Total Loans — Managed (a) (b)		2.13			1.62			1.48			1.61			1.44			51			69			1.76			1.47			29

Memo: Credit Card — Managed		5.24			4.88			5.85			5.81			5.77			36			(53	)		5.27			5.90			(63	)


(a)		Wholesale loans held for sale were $7,684 million, $7,281 million, $5,199 million, $5,245 million, and $3,735 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale were $6,352 million and $3,809 million for 2004 and 2003, respectively. These amounts are not included in the net charge-off rates.
(b)		Average consumer loans (excluding Card) held for sale were $13,534 million, $14,479 million, $15,638 million, $15,311 million, and $21,633 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale were $14,736 million and $25,293 million for 2004 and 2003, respectively. These amounts are not included in the net charge-off rates.

Page 27


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data)


							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
SUMMARY OF CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	7,493		$	3,967		$	4,120		$	4,523		$	4,753			89	%		58	%	$	4,523		$	5,350			(15	)%
Addition Resulting from the Bank One Merger, July 1, 2004		—			3,123			—			—			—			NM			NM			3,123			—			NM
Net Charge-Offs		(1,398	)		(865	)		(392	)		(444	)		(374	)		(62	)		(274	)		(3,099	)		(2,272	)		(36	)
Provision for Loan Losses (a)		1,206			1,395			240			42			144			(14	)		NM			2,883			1,579			83
Other		19			(127	)(b)		(1	)		(1	)		—			NM			NM			(110	)		(134	)		18

Ending Balance	$	7,320		$	7,493		$	3,967		$	4,120		$	4,523			(2	)		62		$	7,320		$	4,523			62


SUMMARY OF CHANGES IN THE ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning Balance	$	541		$	260		$	297		$	324		$	329			108			64		$	324		$	363			(11	)
Addition Resulting from the Bank One Merger, July 1, 2004		—			508			—			—			—			NM			NM			508			—			NM
Provision for Lending-Related Commitments (c)		(49	)		(226	)		(37	)		(27	)		(5	)		78			NM			(339	)		(39	)		NM
Other		—			(1	)		—			—			—			NM			NM			(1	)		—			NM

Ending Balance	$	492		$	541		$	260		$	297		$	324			(9	)		52		$	492		$	324			52


ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Wholesale
Asset Specific	$	469		$	498		NA			NA			NA				(6	)		NM
Expected Loss		1,639			1,832		NA			NA			NA				(11	)		NM
Stress		990			1,126		NA			NA			NA				(12	)		NM

Total Wholesale		3,098			3,456			1,715			1,869			2,204			(10	)		41


Consumer
Expected Loss		3,169			3,159		NA			NA			NA				—			NM
Stress		1,053			878		NA			NA			NA				20			NM

Total Consumer		4,222			4,037			2,252			2,251			2,319			5			82


Total Allowance for Loan Losses		7,320			7,493			3,967			4,120			4,523			(2	)		62
Allowance for Lending-Related Commitments		492			541			260			297			324			(9	)		52

Total Allowance for Credit Losses	$	7,812		$	8,034		$	4,227		$	4,417		$	4,847			(3	)		61


Wholesale Allowance for Loan Losses to Total Wholesale Loans (d)		2.43	%		2.76	%		2.39	%		2.60	%		3.07	%		(33	)bp		(64	)bp
Consumer Allowance for Loan Losses to Total Consumer Loans (e)		1.70			1.62			1.67			1.78			1.90			8			(20	)
Allowance for Loan Losses to Total Loans (d) (e)		1.94			2.01			1.92			2.08			2.33			(7	)		(39	)
Allowance for Loan Losses to Total Nonperforming Loans (f)		268			248			206			183			180			2,000			8,800

ALLOWANCE FOR LOAN LOSSES BY LOB
Investment Bank	$	1,547		$	1,841		$	742		$	855		$	1,055			(16	)%		47	%
Retail Financial Services		1,228			1,764			1,061			1,063			1,094			(30	)		12
Card Services		2,994			2,273			1,191			1,188			1,225			32			144
Commercial Banking		1,322			1,350			107			111			122			(2	)		NM
Treasury & Securities Services		9			9			2			2			2			—			350
Asset and Wealth Management		216			241			76			86			130			(10	)		66
Corporate		4			15			788			815			895			(73	)		(100	)

Total	$	7,320		$	7,493		$	3,967		$	4,120		$	4,523			(2	)		62


(a)		Includes $525 million, $560 million and $1,085 million related to accounting policy conformity in the fourth quarter, third quarter and full year 2004.
(b)		Related to the transfer of the allowance for accrued interest and fees on reported and securitized credit card loans.
(c)		Includes $(227) million related to accounting policy conformity in the third quarter 2004.
(d)		Loans held for sale were $7,684 million, $7,281 million, $5,199 million, $5,245 million, and $3,735 million, as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(e)		Loans held for sale were $18,022 million, $12,816 million, $14,217 million, $14,334 million, and $17,105 million, as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(f)		Nonperforming loans held for sale were $15 million, $78 million, $46 million, $80 million, and $75 million, as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003 respectively. These amounts are not included in the allowance coverage ratios.

Page 28


JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED (in millions)


							Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR			3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004			2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
PROVISION FOR CREDIT LOSSES
LOANS
Investment Bank	$	(120	)	$	(148	)	$	(96	)	$	(161	)	$	(236	)		19	%		49	%	$	(525	)	$	(135	)		(289	)%
Commercial Banking		17			10			23			(15	)		(8	)		70			NM			35			8			338
Treasury & Securities Services		3			—			3			1			—			NM			NM			7			—			NM
Asset & Wealth Management		(21	)		1			(3	)		11			36			NM			NM			(12	)		36			NM
Corporate		—			(1	)		(27	)		(82	)		(48	)		NM			NM			(110	)		116			NM

Total Wholesale		(121	)		(138	)		(100	)		(246	)		(256	)		12			53			(605	)		25			NM

Retail Financial Services		78			239			78			55			70			(67	)		11			450			520			(13	)
Card Services		724			734			262			233			330			(1	)		119			1,953			1,034			89

Total Consumer		802			973			340			288			400			(18	)		101			2,403			1,554			55
Accounting Policy Conformity (a)		525			560			—			—			—			(6	)		NM			1,085			—			NM


Total Provision for Loan Losses		1,206			1,395			240			42			144			(14	)		NM			2,883			1,579			83


LENDING-RELATED COMMITMENTS
Investment Bank	$	(53	)	$	(3	)	$	(32	)	$	(27	)	$	(5	)		NM			NM		$	(115	)	$	(46	)		(150	)
Commercial Banking		4			4			(4	)		2			(2	)		—			NM			6			(2	)		NM
Treasury & Securities Services		—			—			—			—			—			NM			NM			—			1			NM
Asset & Wealth Management		—			—			(1	)		(1	)		—			NM			NM			(2	)		(1	)		(100	)
Corporate		—			—			—			—			—			NM			NM			—			8			NM

Total Wholesale		(49	)		1			(37	)		(26	)		(7	)		NM			NM			(111	)		(40	)		(178	)

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

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

Accounting Policy Conformity		—			(227	)		—			—			—			NM			NM			(227	)		—			NM

Total Provision for Lending-Related Commitments		(49	)		(226	)		(37	)		(27	)		(5	)		78			NM			(339	)		(39	)		NM


TOTAL PROVISION FOR CREDIT LOSSES Investment Bank	$	(173	)	$	(151	)	$	(128	)	$	(188	)	$	(241	)		(15	)		28		$	(640	)	$	(181	)		(254	)
Commercial Banking		21			14			19			(13	)		(10	)		50			NM			41			6			NM
Treasury & Securities Services		3			—			3			1			—			NM			NM			7			1			NM
Asset & Wealth Management		(21	)		1			(4	)		10			36			NM			NM			(14	)		35			NM
Corporate		—			(1	)		(27	)		(82	)		(48	)		NM			NM			(110	)		124			NM

Total Wholesale		(170	)		(137	)		(137	)		(272	)		(263	)		(24	)		35			(716	)		(15	)		NM

Retail Financial Services		78			239			78			54			72			(67	)		8			449			521			(14	)
Card Services		724			734			262			233			330			(1	)		119			1,953			1,034			89

Total Consumer		802			973			340			287			402			(18	)		100			2,402			1,555			54

Accounting Policy Conformity		525			333			—			—			—			58			NM			858			—			NM


Total Provision for Credit Losses		1,157			1,169			203			15			139			(1	)		NM			2,544			1,540			65


Securitized Credit Losses		1,011			928			486			473			462			9			119			2,898			1,870			55
Accounting Policy Conformity		(525	)		(333	)		—			—			—			(58	)		NM			(858	)		—			NM

Managed Provision for Credit Losses	$	1,643		$	1,764		$	689		$	488		$	601			(7	)		173		$	4,584		$	3,410			34


(a)		Reflects an increase of $721 million for both the fourth quarter and third quarter of 2004 and $1.4 billion for full year 2004, as a result of the decertification of heritage Bank One seller’s interest in credit card securitizations, partially offset by a $196 million, $161 million and $357 million decrease in the allowance to conform methodologies for the fourth quarter of 2004, third quarter of 2004 and full year 2004, respectively.

Page 29


JPMORGAN CHASE & CO. CAPITAL (in millions, except ratio and per share data)


									Heritage JPMC Only									4QTR 2004									H-JPMC Only			2004
	4QTR					3QTR			2QTR			1QTR			4QTR			Change						Full Year						Change
	2004					2004			2004			2004			2003			3Q 2004			4Q 2003			2004			2003			2003
COMMON SHARES OUTSTANDING
Basic Weighted-Average Shares Outstanding		3,514.7					3,513.5			2,042.8			2,032.3			2,016.2			—	%		74	%		2,779.9			2,008.6			38	%
Diluted Weighted-Average Shares Outstanding		3,602.0					3,592.0			2,042.8			2,092.7			2,079.3			—			73			2,850.6			2,055.1			39
Common Shares Outstanding — at Period End		3,556.2					3,564.1			2,087.5			2,081.7			2,042.6			—			74
Cash Dividends Declared per Share	$	0.34				$	0.34		$	0.34		$	0.34		$	0.34			—			—		$	1.36		$	1.36			—
Book Value per Share		29.61					29.42			21.52			22.62			22.10			1			34
Dividend Payout		74	%				87	%		NM			38	%		38	%		(1,300	)bp		3,600	bp		88	%		43	%		4,500	bp

SHARE PRICE
High	$	40.45				$	40.25		$	42.57		$	43.84		$	36.99			—	%		9	%	$	43.84		$	38.26			15	%
Low		36.32					35.50			34.62			36.30			34.45			2			5			34.62			20.13			72
Close		39.01					39.73			38.77			41.95			36.73			(2	)		6

STOCK REPURCHASE PROGRAM (b)
Aggregate Repurchases	$	599.8				$	137.9			NM			NM			NM								$	737.7			NM
Common Shares Repurchased		15.8					3.5			NM			NM			NM									19.3			NM
Average Purchase Price	$	38.01				$	39.42			NM			NM			NM								$	38.27			NM

CAPITAL RATIOS
Tier 1 Capital	$	68,621		(a	)	$	69,309		$	43,537		$	44,686		$	43,167			(1	)		59
Total Capital		96,807		(a	)		96,666			59,357			60,898			59,816			—			62
Risk-Weighted Assets		786,887		(a	)		803,464			530,270			534,971			507,456			(2	)		55
Adjusted Average Assets		1,102,519		(a	)		1,065,244			790,390			758,260			765,910			3			44
Tier 1 Capital Ratio		8.7	%	(a	)		8.6	%		8.2	%		8.4	%		8.5	%		10	bp		20	bp
Total Capital Ratio		12.3		(a	)		12.0			11.2			11.4			11.8			30			50
Tier 1 Leverage Ratio		6.2		(a	)		6.5			5.5			5.9			5.6			(30	)		60

INTANGIBLE ASSETS
Goodwill	$	43,203				$	42,947		$	8,731		$	8,730		$	8,511			1	%		408	%
Mortgage Servicing Rights		5,080					5,168			5,707			4,189			4,781			(2	)		6
Purchased Credit Card Relationships		3,878					4,055			893			953			1,014			(4	)		282
All Other Intangibles		5,726					5,945			799			813			685			(4	)		NM

Total Intangibles	$	57,887				$	58,115		$	16,130		$	14,685		$	14,991			—			286


(a)		Estimated
(b)		Excludes commission costs.

Page 30


JPMORGAN CHASE & CO. Glossary of Terms

Assets Under Management: Represent assets actively managed by Asset & Wealth Management on behalf of institutional, private banking, private client services and retail clients. Excludes assets managed at American Century Companies, Inc., in which the Firm has a 43% ownership interest.

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

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

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

Contractual Credit Card Charge-off: In accordance with the Federal Financial Institutions Examination Council Policy, credit card loans are charged-off at the earlier of 180 days past due or within 60 days from receiving notification of the filing of a bankruptcy.

Corporate: Includes Global Treasury, Private Equity, Support Units and the net effects remaining at the Corporate level after the implementation of management accounting policies.

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

NA: Data is not available for the period presented.

NM: Not meaningful

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

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

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 merger costs, other special items and credit card securitizations.

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.

Special Items: Includes merger costs, litigation reserve charge, accounting policy conformity adjustments and other special items.

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

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

Page 31


	Page
Consolidated Results
Financial Highlights		3
Statement of Income — Reported Basis		4
Consolidated Balance Sheet		5
Condensed Average Balance Sheet and Annualized Yields		6

Business Detail
Reconciliation from Reported to Operating Basis		7
Statement of Income — Operating Basis		8
Line of Business Financial Highlights — Operating Basis		9
Investment Bank		10
Retail Financial Services		12
Card Services		16
Commercial Banking		19
Treasury & Securities Services		20
Asset & Wealth Management		21
Corporate		23

Consolidated Credit-Related Information		25

Supplemental Detail
Capital		30

Glossary of Terms		31

(a)		Based on annualized amounts.
(b)		Net income applicable to common stock / Total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating performance of the Firm. The Firm utilizes this measure to facilitate operating comparisons to other competitors.
(c)		U.S. GAAP earnings / Total average assets
(d)		Includes Global Treasury, Private Equity, Support Units and the net effects remaining at the corporate level after the implementation of management accounting policies.

(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 fourth, third and second quarters of 2004, the Merger Costs and Litigation Reserve Charge line items on the Consolidated Statement of Income, and the Accounting Policy Conformity Adjustments.

(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 10 for further information.

(c)		The impact of credit card securitizations impacts Card Services. See page 18 for further information.

(d)		The impact of the Merger Costs, the Litigation Reserve Charge and Accounting Policy Conformity Adjustment 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 do not provide meaningful comparisons with other periods.

(a)		As a result of the Merger, new capital allocation methodologies were implemented during the third quarter of 2004. The capital allocated to each line of business considers several factors: stand-alone peer comparables, economic risk measures and regulatory capital requirements. In addition, effective with the third quarter of 2004, goodwill, as well as the associated capital, is only allocated to the Corporate line of business. Prior periods have not been revised to reflect these new methodologies and also may not be comparable to the presentation beginning in the third quarter of 2004.
(b)		Includes goodwill.

(a)		Trading revenue, on a reported basis, excludes the impact of net interest income related to IB’s trading activities; this income is recorded in Net interest income. However, in this presentation, to assess 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 $511 million, $430 million, $427 million, $581 million and $512 million during the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003, and $1.9 billion and $2.1 billion for full year 2004 and 2003, respectively.
(b)		Total net revenue includes tax equivalent adjustments of $167 million, $9 million, $91 million, $80 million, and $57 million as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively. The full year tax equivalent adjustments were $347 million and $230 million for the year ending December 31, 2004 and 2003, respectively.
(c)		Management has charged Treasury & Securities Services (“TSS”) 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 TSS.
(d)		Derived from Thomson Financial Securities Data. 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. Because of joint assignments, market share of all participants will add up to more than 100%. The market share and rankings are presented on a combined basis reflecting the merger of JPMorgan Chase and Bank One, as disclosed by Thomson Financial Securities Data.

(a)		Loans include loans held for sale of $7,684 million, $7,281 million, $5,199 million, $5,245 million, and $3,735 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively. The full year average loans held for sale were $6,352 million and $3,809 million for 2004 and 2003, respectively. These amounts are not included in the allowance coverage ratios and net charge-off rates.
(b)		Adjusted assets equals total assets minus (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased, (2) assets of VIEs consolidated under FIN 46R, (3) cash and securities segregated and on deposit for regulatory and other purposes and (4) goodwill and intangibles. The amount of adjusted assets is presented to assist the reader in comparing the IB’s asset and capital levels to other investment banks in the securities industry. Asset to equity leverage ratios are commonly used as one measure to assess a company’s capital adequacy. The IB believes an adjusted asset amount, which excludes certain assets considered to have a low risk profile, provides a more meaningful measure of balance sheet leverage in the securities industry.
(c)		Equity includes $15 billion of economic risk capital assigned to the IB for the full year ended December 31, 2004.
(d)		Nonperforming loans include loans held for sale of $2 million, $4 million, $2 million, $30 million, and $30 million, as of December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(e)		Includes all mark-to-market trading activities, plus available-for-sale securities held for IB investing purposes.
(f)		Includes VAR on derivative credit valuation adjustments, credit valuation adjustment hedges and mark-to-market loan hedges, which are reported in Trading Revenue.
		This VAR does not include the accrual loan portfolio, which is not marked to market.

(a)		End of period loans include loans held for sale of $18,022 million, $12,816 million, $14,217 million, $14,334 million, and $17,105 million at December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.
(b)		Includes demand and savings deposits.
(c)		Average loans include loans held for sale of $13,534 million, $14,479 million, $15,638 million, $15,311 million, and $21,633 million for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale are $14,736 million and $25,293 million for 2004 and 2003, respectively. These amounts are not included in the net charge-off rate.
(d)		Includes $406 million of net charge-offs related to the Manufactured Home Loan portfolio in the fourth quarter of 2004.
(e)		Nonperforming loans include loans held for sale of $13 million, $74 million, $44 million, $50 million, and $45 million at December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. These amounts are not included in the allowance coverage ratios.

(a)		Fourth quarter and full year 2004 includes $406 million of net charge-offs related to the Manufactured Home Loan portfolio.
(b)		Excludes mortgage loans held for sale.

(a)		Primarily community development loans.
(b)		Includes demand and savings deposits.

(a)		Average loans include loans held for sale of $3.4 billion, $2.2 billion, $1.1 billion, $2.4 billion, and $1.6 billion for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004, and December 31, 2003, respectively. The full year average loans held for sale were $2.3 billion and $1.8 billion for 2004 and 2003, respectively. These are not included in the net charge-off rate.
(b)		Includes revenue reported in the results of other businesses.

(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.

(a)		Management has charged TSS a credit reimbursement, which is the pre-tax amount of earnings, less cost of capital, related to certain exposures managed within the Investment Bank (“IB”) credit portfolio on behalf of clients shared with TSS.
(b)		TSS and Treasury Services (“TS”) firmwide revenues include TS revenues recorded in certain other lines of business. Revenue associated with Treasury Services’ customers who are also customers of the Commercial Banking, Consumer & Small Business Banking and Asset & Wealth Management lines of business are reported in these other lines of business and are excluded from Treasury Services as follows:

(c)		TSS and TS Firmwide Overhead Ratios have been calculated based on the Firmwide Revenues described in footnote (b) and TSS or TS expenses, respectively, including those allocated to certain other lines of business.
(d)		Corporate Trust Securities under Administration include debt held in trust on behalf of third parties and debt serviced as agent.
(e)		TSS and TS Firmwide Deposits include TS’ deposits recorded in certain other lines of business. Deposits associated with Treasury Services’ customers who are also customers of the Commercial Banking line of business are reported in that line of business and are excluded from Treasury Services.

(a)		Pre-tax margin represents Operating Earnings before Income Taxes / Total Net Revenue, which is a comprehensive measure of pre-tax performance and is another basis by which AWM management evaluates its performance and that of its competitors. Pre-tax margin is an effective measure of AWM’s earnings after all costs are taken into consideration.
(b)		Derived from Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.

(a)		Represents federal funds sold, securities borrowed, trading assets — debt and equity instruments and trading assets — derivative receivables.
(b)		Represents investment securities and private equity investments.
(c)		Effective with the third quarter of 2004, all goodwill is allocated to the Corporate line of business. Prior to the third quarter of 2004, goodwill was allocated to the various lines of business.
(d)		Excludes gains/losses on securities used to manage risk associated with mortgage servicing rights.