Input and Assumptions - JPMorgan Chase & Co. and SunTrust Banks Inc.

($ in Millions Except Per Share Data)

Buyer Name: JPMorgan Chase & Co. Blue indicates hard-coded numbers and inputs.
Buyer Ticker: JPM Black indicates formulas.
Seller Name: SunTrust Banks Inc. Green indicates links from other worksheets.
Seller Ticker: STI

Last Historical Year: 12/31/2009 Assumed Acquisition Close Date: 12/31/2010

Valuation Date: 12/31/2009
Seller - Tax Rate: 35.0%
Days in Year: 360 Buyer - Minimum Tier 1 Common Ratio: 9.0%
Conversion Units: 1000 Seller - Minimum Tier 1 Common Ratio: 6.0%
Combined - Target Tier 1 Common Ratio: 9.0%

Buyer - Stock, Option & RSU Information: Seller - Stock, Option & RSU Information:

Common Shares Outstanding: 3,973.0 Common Shares Outstanding: 499.4

Current Share Price: $ 41.67 Current Share Price: $ 20.29

Exercise Exercise
Type: # Outstanding: Price: Type: # Outstanding: Price: Dilution:
Options 266.568 $ 45.83 Options - A 4.511 $ 14.29 1.334
RSU 221.265 $ 29.32 Options - B 4.992 $ 56.44 -
Options - C 8.159 $ 72.66 -
Warrants - A 11.891 $ 44.15 -
Warrants - B 6.009 $ 33.70 -
RSU 4.770 4.770

Diluted Shares: 4,194.3 Diluted Shares: 505.5

Merger Model - JPMorgan Chase & Co. and SunTrust Banks Inc.

Transaction Structure & Assumptions

($ in Millions Except Per Share Data)

Purchase Price: Acquisition Financing: % Total: Amount: Cost:

Buyer Current Share Price: $ 41.67 Senior Debt: 10.0% $ 1,335 3.00%
Seller Current Share Price: 20.29 Subordinated Debt: 20.0% 2,670 3.50%
Purchase Premium: 30.0% Trust Preferred: 15.0% 2,003 4.00%
Per Share Purchase Price: 26.38 Preferred Stock: 20.0% 2,670 4.50%
Equity Purchase Price: $ 13,352 Common Stock: 35.0% 4,673 N/A
Total: 100.0% $ 13,352 3.85%
Implied Exchange Ratio @ 35.0% Common Stock: 0.2215 x
Exchange Ratio @ 100.0% Common Stock: 0.6330 x Exercise
Type: Number: Price: Shares:
Transaction Fees: %: Amount: Period: Common Shares 499.350 499.350
Advisory Fees: 0.1% 13 N/A Options - A 4.511 $ 14.29 2.067
Legal & Misc. Fees: 10 N/A Options - B 4.992 $ 56.44 -
Options - C 8.159 $ 72.66 -
Cost Synergies: %: Amount: Warrants - A 11.891 $ 44.15 -
Synergies % Seller Core Non-Interest Expense: 10.0% $ 444 Warrants - B 6.009 $ 33.70 -
Realization in 2011: 50.0% 222 RSU 4.770 $ - 4.770
Realization in 2012: 75.0% 328 Transaction Shares: 506.187
Realization in 2013: 100.0% 463
Realization in 2014: 100.0% 468 Deposit Divestiture:
Total Restructuring Charge % Cost Synergies: 150.0% 701 Buyer - Core Deposits: $ 643,107
Cash Portion: 75.0% 526 Seller - Core Deposits: 116,303
Total US Deposits: 6,895,000
Intangible Amortization: National Deposit Limitation: 10.0%
Core Deposit Intangible (CDI) Premium (% Core Deposits): 2.0% Max. Allowed Deposits at Single Bank: 689,500
Amortization Period (Years): 10 Required Divestiture: 69,910
Straight-Line Amortization Deposit Premium Received: 10.0%
Loan / Deposit Ratio: 25.0%
RWA / Deposit Ratio: 80.0%
Return on Assets (ROA): 1.0%
Sources & Uses
($ in Millions)

Sources: Uses:
Senior Debt: $ 1,335 Equity Value of Company: $ 13,352
Subordinated Debt: 2,670 Transaction Fees: 23
Trust Preferred: 2,003 Total Uses: $ 13,375
Preferred Stock: 2,670
Common Stock: 4,673
Cash & Cash-Equivalents: 23
Total Sources: $ 13,375

Purchase Price Allocation & Pro-Forma Balance Sheet Adjustments

($ in Millions)

Goodwill Calculation: Core Deposit Intangible Creation:

Equity Purchase Price: CDI - 2.0% of Seller Core Deposits: 2,326
Less: Seller Book Value:
Plus: Write-Off of Existing Goodwill: Deferred Tax Liability Creation:
Plus: Write-Off of Existing Intangibles: Total Core Deposit Intangible Balance:
Total Allocable Purchase Premium: Buyer - Effective Tax Rate: 30.0%
New Deferred Tax Liability:
Less: New Core Deposit Intangibles:
Plus: New Deferred Tax Liability:
Plus: New Restructuring Reserve:
Total Goodwill Created:
Combined Company - Balance Sheet
($ in Millions) Transaction Adjustments
Pre-Transaction - 2010 Deposit Projected
December 30, Buyer Seller Debit Credit Divestitures 2010 2011 2012 2013 2014
Assets:
Cash and Due from Banks: $ 27,296 $ 5,608
Deposits with Banks: 59,141 22
Federal Funds Sold: 195,404 517
Securities Borrowed: 126,137 -
Trading Assets: 370,015 4,482
Securities: 360,390 28,477
Loans Held for Sale: - 4,670

Loans: 673,297 110,833

Allowance for Loan Losses: (32,854) (3,325)
Net Loans: 640,443 107,508
Accrued Interest and AR: 67,330 -
Premises and Equipment: 11,118 1,552
Goodwill: 48,357 6,319
Mortgage Servicing Rights: 16,273 2,024
Core Deposit Intangibles: 878 71
Other Intangible Assets: 2,830 54
Other Assets: 112,446 9,318
Total Assets: $ 2,038,056 $ 170,621

Liabilities:
Deposits: $ 909,861 $ 112,163
Federal Funds Purchased: 285,059 7,880
Securities Sold Under Repo: - 1,940
Commercial Paper: 43,764 -
Other Borrowed Funds: 53,864 2,217
Trading Liabilities: 118,405 1,793
AP and Other Liabilities: 161,591 4,433
Beneficial Interests: 15,225 -
Deferred Tax Liability: - -
Restructuring Reserve: - -
Senior Debt: - -
Subordinated Debt: - -
Trust Preferred: - -
Long-Term Debt: 269,319 17,733
Jr. Sub Debentures: - -
Total Liabilities: $ 1,857,088 $ 148,159

Shareholders' Equity:
Preferred Stock: $ 8,152 $ 4,917
Common Stock: 4,105 515
Capital Surplus: 105,321 8,521
Retained Earnings: 75,745 8,494
Accumulated OCI: (91) 1,070
Restricted Stock Units: (68) -
Treasury Stock: (12,196) (1,055)
Total Shareholders' Equity: $ 180,968 $ 22,462

Total Liabilities & SE: $ 2,038,056 $ 170,621

Balance Check: OK! OK!

Combined Company - Core Deposit Intangible (CDI) Amortization Schedule
($ in Millions) Transaction Adjustments
Pre-Transaction Deposit Projected
December 30, Buyer Seller Debit Credit Divestitures 2010 2011 2012 2013 2014

Buyer - Existing CDI Balance: $ 878 $ - $ - $ - $ - $ 878 $ 594 $ 354 $ 159 $ 53

Seller - Existing CDI Balance: - 71 - 71 - - - - - -
Transaction CDI Balance: - - 2,326 - - 2,326 2,093 1,861 1,628 1,396
Combined Company - CDI Balance: $ 878 $ 71 $ 3,204 $ 2,687 $ 2,215 $ 1,787 $ 1,449

Buyer - Existing CDI Amortization: 284 240 195 106

Transaction CDI Amortization: 233 233 233 233
After-Tax Transaction CDI Amortization Expense: 163 163 163 163

Seller - Existing Intangibles Amortization: 37 30 22 15

After-Tax Benefit from Removal of Existing Intangibles: 24 20 15 10

Combined Company - Cost Savings Schedule

($ in Millions)
Projected
December 30, 2011 2012 2013 2014

Seller - Core Non-Interest Expenses: 4,444 4,369 4,627 4,676

Cost Savings Rate: 10.0% 10.0% 10.0% 10.0%
Realization Rate: 50.0% 75.0% 100.0% 100.0%
Total Cost Savings: 222 328 463 468

After-Tax Cost Savings: 156 229 324 327

Combined Company - Impact of Deposit Divestitures:

($ in Millions)
Projected
December 30, 2011 2012 2013 2014

Deposits Divested: 69,910 69,910 69,910 69,910

Return on Assets: 1.0% 1.0% 1.0% 1.0%
Combined Company - Funding Cost: 2.00% 2.50% 3.00% 3.50%

Lost Net Income: (699) (699) (699) (699)

After-Tax Divestiture Benefit: 98 122 147 171
Net Deposit Divestiture Impact: $ (601) $ (577) $ (552) $ (528)

Combined Company - Restructuring Funding Schedule

($ in Millions)
Projected
December 30, 2011 2012 2013 2014

Restructuring - Cash Expenditures:

Restructuring - Non-Cash Charges:
Total Restructuring Charges:

After-Tax Restructuring Cash Charges:

After-Tax Restructuring Charge Balance:
Funding Rate for Restructuring Balance:

After-Tax Restructuring Funding Expense:

Combined Company - Federal Funds Sold and Federal Funds Purchased Schedule
($ in Millions)
Projected
December 30, 2011 2012 2013 2014

Federal Funds Calculation:

Total Assets + Prior Year Fed Funds Sold:
Total L&E + Prior Year Fed Funds Purchased:
Increase in Fed Funds Sold:
Increase in Fed Funds Purchased:

Buyer - Federal Funds Sold:

Seller - Federal Funds Sold:
Total Federal Funds Sold:

Federal Funds Sold Differential:

Buyer - Average Interest on IEA:

Buyer - Federal Funds Purchased:

Seller - Federal Funds Purchased:
Total Federal Funds Purchased:

Federal Funds Purchased Differential:

Buyer - Average Interest on IBL:
After-Tax Impact of Federal Funds Differential:
Combined Company - Income Statement
($ in Millions Except Per Share Data)
Projected
December 30, 2011 2012 2013 2014

Buyer - Net Income to Common:

Seller - Net Income to Common:
Combined Net Income to Common - Before Adjustments:

After-Tax Acquisition Benefits / (Expenses):

Benefit from Cost Savings:
Earnings on Cost Savings:
CDI Amortization Expense:
Benefit from Removing Seller's Existing Intangibles:
Net Deposit Divestiture Impact:
Restructuring Funding Expense:
Federal Funds Differential:
Dividend (Funding) / Benefit:
Total After-Tax Adjustments:

After-Tax Funding Adjustments:

Senior Debt:
Subordinated Debt:
Trust Preferred:
Preferred Stock:
Total After-Tax Funding Expense:

Pro Forma GAAP Net Income to Common:

Buyer - Weighted Average Diluted Shares:

Shares Issued in Transaction:
Pro Forma Fully Diluted Shares - Weighted Average:

Buyer - Weighted Average Basic Shares:

Shares Issued in Transaction:
Pro Forma Basic Shares - Weighted Average:

Buyer - Ending Common Shares:

Shares Issued in Transaction:
Pro Forma Common Shares - Ending Balance:

Pro Forma Diluted GAAP EPS:

Accretion / (Dilution) %:

Pro Forma Dividends Per Average Basic Share:

Accretion / (Dilution) %:

Pro Forma Book Value Per Ending Common Share:

Accretion / (Dilution) %:

Pro Forma Tangible Book Value Per Ending Common Share:

Accretion / (Dilution) %:
SunTrust Banks Inc. - Historical and Projected Balance Sheet
($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Assets:
Cash and Due from Banks: $ 4,660 $ 4,236 $ 4,271 $ 5,623 $ 6,456 $ 5,608 $ 5,608 $ 5,184 $ 5,444 $ 4,978
Interest-Bearing Bank Deposits: 332 22 24 24 24 22 22 23 24 25
Federal Funds Sold: 1,313 1,050 1,347 991 517 517 517 2,130 2,645 2,645
Trading Assets: 2,811 2,778 10,518 10,396 4,980 4,482 4,258 4,258 4,471 4,918
Loans Held for Sale: 13,696 11,790 8,852 4,032 4,670 4,670 4,670 4,670 4,670 4,670
Securities: 26,526 25,102 16,264 19,697 28,477 28,477 29,047 29,628 30,813 32,045

Loans: 114,555 121,454 122,319 126,998 113,675 110,833 110,833 116,375 122,193 128,303
Allowance for Loan Losses: (1,028) (1,045) (1,283) (2,351) (3,120) (3,325) (2,771) (2,618) (2,444) (2,245)
Net Loans: 113,527 120,410 121,036 124,647 110,555 107,508 108,062 113,756 119,749 126,058

Premises and Equipment: 1,855 1,977 1,596 1,548 1,552 1,552 1,552 1,552 1,552 1,552
Goodwill: 6,835 6,890 6,921 7,044 6,319 6,319 6,319 6,319 6,319 6,319
Mortgage Servicing Rights: 658 811 1,049 810 1,539 2,024 2,609 3,285 4,053 4,925
Core Deposit Intangibles: 325 242 173 145 104 71 45 25 11 4
Other Intangible Assets: 141 130 141 80 68 54 43 33 24 16
Customers' Acceptance Liab.: 12 16 22 5 6 6 6 6 6 6
Other Real Estate Owned: - - 184 500 620 620 620 620 620 620
Unsettled AFS Sec. Sales: - - - 6,387 - - - - - -
Other Assets: 7,023 6,709 7,174 7,209 8,278 8,692 9,126 9,583 10,062 10,565
Total Assets: $ 179,713 $ 182,162 $ 179,574 $ 189,138 $ 174,165 $ 170,621 $ 172,503 $ 181,070 $ 190,462 $ 199,345

Liabilities:
Noninterest-Bearing Deposits: $ 26,328 $ 22,887 $ 21,083 $ 21,522 $ 24,244 $ 23,275 $ 23,275 $ 23,275 $ 24,439 $ 24,378
Interest-Bearing Deposits: 71,245 76,889 80,787 83,754 92,059 83,125 83,125 84,372 88,590 89,812
Brokered Deposits: 15,645 18,150 11,715 7,667 4,232 4,433 4,433 5,237 5,499 6,415
Foreign Deposits: 8,836 6,096 4,258 386 1,329 1,330 1,330 2,327 2,444 3,849
Total Deposits: 122,053 124,022 117,843 113,328 121,864 112,163 112,163 115,211 120,971 124,454

Federal Funds Purchased: 4,258 4,868 3,431 1,120 1,433 7,880 14,045 14,045 14,045 14,848
Securities Sold Under Repo: 6,117 6,950 5,748 3,193 1,871 1,940 2,217 3,491 4,888 6,415
Other Short-Term Borrowings: 1,938 2,063 3,021 5,166 2,062 2,217 2,217 2,037 2,138 2,245
Trading Liabilities: 1,529 1,634 2,160 3,241 2,189 1,793 1,703 1,490 1,565 1,721
AP and Other Liabilities: 6,152 5,819 6,361 4,878 4,727 4,433 4,433 5,237 5,499 6,415
Unsettled Purchases: - - - 8,898 - - - - - -
Long-Term Debt: 20,779 18,993 22,957 26,812 17,490 17,733 17,733 20,947 21,995 23,095
Total Liabilities: $ 162,825 $ 164,348 $ 161,521 $ 166,637 $ 151,634 $ 148,159 $ 154,511 $ 162,459 $ 171,101 $ 179,194

Shareholders' Equity:
Preferred Stock: $ - $ 500 $ 500 $ 5,222 $ 4,917 $ 4,917 $ - $ - $ - $ -
Common Stock: 371 371 371 373 515 515 515 515 515 515
Capital Surplus: 6,762 6,627 6,707 6,905 8,521 8,521 8,521 8,521 8,521 8,521
Retained Earnings: 9,311 10,541 10,647 10,389 8,563 8,494 8,941 9,561 10,310 11,100
Accumulated OCI: 938 926 1,607 981 1,070 1,070 1,070 1,070 1,070 1,070
Treasury Stock: (494) (1,151) (1,779) (1,368) (1,055) (1,055) (1,055) (1,055) (1,055) (1,055)
Total Shareholders' Equity: $ 16,887 $ 17,814 $ 18,053 $ 22,501 $ 22,531 $ 22,462 $ 17,992 $ 18,612 $ 19,360 $ 20,151

Total Liabilities & SE: $ 179,713 $ 182,162 $ 179,574 $ 189,138 $ 174,165 $ 170,621 $ 172,503 $ 181,070 $ 190,462 $ 199,345

Balance Check: OK! OK! OK! OK! OK! OK! OK! OK! OK! OK!

SunTrust Banks Inc. - Regulatory Capital Calculations

($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Tier 1 Capital:
Stockholders' Equity: $ 16,887 $ 17,814 $ 18,053 $ 22,501 $ 22,531 $ 22,462 $ 17,992 $ 18,612 $ 19,360 $ 20,151
Less: Preferred Stock: - (500) (500) (5,222) (4,917) (4,917) - - - -
Common Stockholders' Equity: $ 16,887 $ 17,314 $ 17,553 $ 17,279 $ 17,614 $ 17,545 $ 17,992 $ 18,612 $ 19,360 $ 20,151

Less: Goodwill: (6,835) (6,890) (6,921) (7,044) (6,319) (6,319) (6,319) (6,319) (6,319) (6,319)
Plus: Qualifying DTLs: 1,028 1,601 294 2,156 1,857 1,857 1,857 1,857 1,857 1,857
Less: Qualifying Hybrid Sec.: (1,900) (2,400) (2,133) (2,847) (2,356) (2,356) (2,356) (2,356) (2,356) (2,356)
Less: Allowable NCI: (467) (455) (105) (102) (104) (104) (104) (104) (104) (104)

Tier 1 Common Capital: $ 8,713 $ 9,170 $ 8,687 $ 9,443 $ 10,692 $ 10,623 $ 11,070 $ 11,690 $ 12,438 $ 13,229
Plus: Preferred Stock: - 500 500 5,222 4,917 4,917 - - - -
Plus: Qualifying Hybrid Sec.: 1,900 2,400 2,133 2,847 2,356 2,356 2,356 2,356 2,356 2,356
Plus: Allowable NCI: 467 455 105 102 104 104 104 104 104 104
Total Tier 1 Capital: $ 11,080 $ 12,525 $ 11,425 $ 17,614 $ 18,069 $ 18,000 $ 13,530 $ 14,150 $ 14,898 $ 15,689
% Growth: 13.2% 13.0% (8.8%) 54.2% 2.6% (0.4%) (24.8%) 4.6% 5.3% 5.3%

Risk-Weighted Assets: 158,132 162,237 164,932 162,046 139,380 158,162 152,405 156,598 164,534 172,435
Total Adj. Avg. Assets: 172,778 172,363 176,005 174,272 165,471 164,640 169,865 178,844 187,981

RWA % Average IEA: 107.8% 102.4% 106.3% 106.1% 92.4% 103.0% 103.0% 103.0% 103.0% 103.0%
RWA % Growth: 15.7% 2.6% 1.7% (1.7%) (14.0%) 13.5% (3.6%) 2.8% 5.1% 4.8%

Total Assets: 179,713 182,162 179,574 189,138 174,165 170,621 172,503 181,070 190,462 199,345
Tangible Assets: 171,538 174,018 170,708 181,302 167,243 163,699 165,581 174,148 183,540 192,423
Tangible Common Equity: 8,713 9,170 8,687 9,443 10,692 10,623 11,070 11,690 12,438 13,229
Return on Assets: 1.2% 0.9% 0.4% (0.9%) 0.1% 0.5% 0.6% 0.7% 0.7%

Tier 1 Common Ratio: 5.5% 5.7% 5.3% 5.8% 7.7% 6.7% 7.3% 7.5% 7.6% 7.7%
Tier 1 Capital Ratio: 7.0% 7.7% 6.9% 10.9% 13.0% 11.4% 8.9% 9.0% 9.1% 9.1%
Tier 1 Leverage Ratio: 7.2% 6.6% 10.0% 10.4% 10.9% 8.2% 8.3% 8.3% 8.3%

SunTrust Banks Inc. - Balance Sheet Drivers

($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Assets:
Gross Loans % Growth: 6.02% 0.71% 3.83% (10.49%) (2.50%) 0.00% 5.00% 5.00% 5.00%
Allowance for LLs % Loans: 0.90% 0.86% 1.05% 1.85% 2.74% 3.00% 2.50% 2.25% 2.00% 1.75%

Cash % Deposits: 3.82% 3.42% 3.62% 4.96% 5.30% 5.00% 5.00% 4.50% 4.50% 4.00%
Bank Deposits % Deposits: 0.27% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%
Trading Assets % Growth: (1.20%) 278.68% (1.16%) (52.10%) (10.00%) (5.00%) 0.00% 5.00% 10.00%
Securities % Growth: (5.37%) (35.21%) 21.10% 44.58% 0.00% 2.00% 2.00% 4.00% 4.00%

MSR Originated: 342 504 639 486 682 784 886 983 1,092 1,212
MSR % Growth: 47.44% 26.87% (24.03%) 40.41% 15.00% 13.00% 11.00% 11.00% 11.00%

CDI Amortization: 99 84 69 57 41 33 27 20 14 7
Other Intang. Amortization: 20 19 28 19 15 14 11 10 9 8

Other Assets % Growth: (7.65%) 8.50% (43.48%) (15.02%) 5.00% 5.00% 5.00% 5.00% 5.00%

Liabilities:
Non-IB Deposits % Loans: 22.98% 18.84% 17.24% 16.95% 21.33% 21.00% 21.00% 20.00% 20.00% 19.00%
IB Deposits % Loans: 62.19% 63.31% 66.05% 65.95% 80.98% 75.00% 75.00% 72.50% 72.50% 70.00%
Brokered Deposits % Loans: 13.66% 14.94% 9.58% 6.04% 3.72% 4.00% 4.00% 4.50% 4.50% 5.00%
Foreign Deposits % Loans: 7.71% 5.02% 3.48% 0.30% 1.17% 1.20% 1.20% 2.00% 2.00% 3.00%

Repo Securities % Loans: 5.34% 5.72% 4.70% 2.51% 1.65% 1.75% 2.00% 3.00% 4.00% 5.00%
ST Borrowings % Loans: 1.69% 1.70% 2.47% 4.07% 1.81% 2.00% 2.00% 1.75% 1.75% 1.75%
Trading Liab. % Trading Assets: 54.40% 58.83% 20.54% 31.17% 43.95% 40.00% 40.00% 35.00% 35.00% 35.00%
AP and Other Liab. % Loans: 5.37% 4.79% 5.20% 3.84% 4.16% 4.00% 4.00% 4.50% 4.50% 5.00%
Long-Term Debt % Loans: 18.14% 15.64% 18.77% 21.11% 15.39% 16.00% 16.00% 18.00% 18.00% 18.00%

Federal Funds Calculation:

Total Assets + Prior Year Fed Funds Sold: 170,621 172,503 179,457 189,947 199,345
Total L&E + Prior Year Fed Funds Purchased: 164,173 166,338 181,070 190,462 198,542
Increase in Fed Funds Sold: - - 1,614 515 -
Increase in Fed Funds Purchased: 6,448 6,165 - - 803

SunTrust Banks Inc. - Interest-Earning Assets (IEA) and Interest-Bearing Liabilities (IBL)
($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Assets:
Interest-Bearing Bank Deposits: 332 22 24 24 24 22 22 23 24 25
Federal Funds Sold: 1,313 1,050 1,347 991 517 517 517 2,130 2,645 2,645
Interest-Earning Trading Assets: 1,594 2,063 3,857 7,609 12,000 3,257 3,094 3,094 3,248 3,573
Loans Held for Sale: 13,696 11,790 8,852 4,032 4,670 4,670 4,670 4,670 4,670 4,670
Securities: 26,526 25,102 16,264 19,697 28,477 28,477 29,047 29,628 30,813 32,045
Loans: 114,555 121,454 122,319 126,998 113,675 110,833 110,833 116,375 122,193 128,303
Total Interest-Earning Assets: $ 158,016 $ 161,481 $ 152,664 $ 159,351 $ 159,362 $ 147,775 $ 148,182 $ 155,919 $ 163,593 $ 171,261
Avg. Interest-Earning Assets: $ 146,640 $ 158,429 $ 155,204 $ 152,749 $ 150,908 $ 153,569 $ 147,979 $ 152,050 $ 159,756 $ 167,427

Liabilities:
Interest-Bearing Deposits: $ 71,245 $ 76,889 $ 80,787 $ 83,754 $ 92,059 $ 83,125 $ 83,125 $ 84,372 $ 88,590 $ 89,812
Brokered Deposits: 15,645 18,150 11,715 7,667 4,232 4,433 4,433 5,237 5,499 6,415
Foreign Deposits: 8,836 6,096 4,258 386 1,329 1,330 1,330 2,327 2,444 3,849
Federal Funds Purchased: 4,258 4,868 3,431 1,120 1,433 7,880 14,045 14,045 14,045 14,848
Securities Sold Under Repo: 6,117 6,950 5,748 3,193 1,871 1,940 2,217 3,491 4,888 6,415
Other Short-Term Borrowings: 1,938 2,063 3,021 5,166 2,062 2,217 2,217 2,037 2,138 2,245
Interest-Bearing Trading Liab.: - - 430 786 488 444 422 369 387 426
Long-Term Debt: 20,779 18,993 22,957 26,812 17,490 17,733 17,733 20,947 21,995 23,095
Total Interest-Bearing Liabilities: $ 128,817 $ 134,008 $ 132,347 $ 128,884 $ 120,962 $ 119,101 $ 125,522 $ 132,825 $ 139,986 $ 147,106
Avg. Interest-Bearing Liabilities: $ 120,800 $ 131,988 $ 131,214 $ 129,446 $ 122,460 $ 120,032 $ 122,312 $ 129,174 $ 136,406 $ 143,546

Non-IE Trading Assets: 796 958 1,199 2,642 3,429

Non-IB Trading Liabilities: - - 1,313 1,796 2,060

IE Trading Assets % Total: 66.70% 68.30% 76.29% 74.23% 77.77% 72.66% 72.66% 72.66% 72.66% 72.66%
IB Trading Liab. % Total: N/A N/A 24.68% 30.44% 19.15% 24.75% 24.75% 24.75% 24.75% 24.75%

Average Interest on IEA: 5.32% 6.24% 6.53% 5.53% 4.53% 4.50% 4.50% 4.75% 5.25% 5.50%
Average Interest on IBL: 2.61% 3.89% 4.05% 2.86% 1.83% 1.50% 2.00% 2.50% 3.00% 3.50%
Interest Rate Spread: 2.71% 2.35% 2.48% 2.67% 2.70% 3.00% 2.50% 2.25% 2.25% 2.00%

Net Interest Income Calculation:

Interest Income: $ 7,731 $ 9,792 $ 10,036 $ 8,327 $ 6,710 $ 6,911 $ 6,659 $ 7,222 $ 8,387 $ 9,208
Interest Expense: (3,152) (5,132) (5,316) (3,708) (2,244) (1,800) (2,446) (3,229) (4,092) (5,024)
Net Interest Income: $ 4,579 $ 4,660 $ 4,720 $ 4,620 $ 4,466 $ 5,110 $ 4,213 $ 3,993 $ 4,295 $ 4,184
Net Interest Margin: 3.12% 2.94% 3.04% 3.02% 2.96% 3.33% 2.85% 2.63% 2.69% 2.50%

SunTrust Banks Inc. - Income Statement

($ in Millions Except Per Share Data)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Non-Interest Revenue:
Investment Banking Fees: $ 217 $ 231 $ 215 $ 237 $ 272 $ 299 $ 322 $ 346 $ 363 $ 381
Retail Investment Services: 213 234 278 289 218 196 186 186 196 215
Other Charges and Fees: 456 462 479 511 523 471 458 467 487 509
Principal Transactions: 145 113 (362) 38 (41) 118 109 106 109 141
Securities Gains / (Losses): (7) (50) 243 1,073 98 271 271 271 271 271
Lending and Deposit Fees: 773 764 822 904 848 796 774 789 824 861
Asset Management: 674 687 685 592 487 529 558 586 612 633
Mortgage Fees & Income: 187 339 286 (40) 706 300 300 308 323 340
Credit Card Income: 211 248 281 308 324 413 312 320 336 353
Net Gain / (Loss) on Asset Sale: 23 113 151 321 112 144 144 144 144 144
Other Income: 264 329 350 240 164 147 140 140 147 162
Total Non-Interest Revenue: $ 3,155 $ 3,468 $ 3,429 $ 4,473 $ 3,710 $ 3,685 $ 3,575 $ 3,663 $ 3,813 $ 4,010

Interest Income: $ 7,731 $ 9,792 $ 10,036 $ 8,327 $ 6,710 $ 6,911 $ 6,659 $ 7,222 $ 8,387 $ 9,208
Interest Expense: (3,152) (5,132) (5,316) (3,708) (2,244) (1,800) (2,446) (3,229) (4,092) (5,024)
Net Interest Income: $ 4,579 $ 4,660 $ 4,720 $ 4,620 $ 4,466 $ 5,110 $ 4,213 $ 3,993 $ 4,295 $ 4,184

Total Net Revenue: $ 7,734 $ 8,129 $ 8,148 $ 9,093 $ 8,176 $ 8,795 $ 7,788 $ 7,656 $ 8,108 $ 8,194

Provision for Credit Losses: 177 263 665 2,474 4,064 2,975 1,662 1,136 954 877

Non-Interest Expenses:
Compensation Expense: $ 2,117 $ 2,254 $ 2,329 $ 2,327 $ 2,258 $ 2,408 $ 2,132 $ 2,096 $ 2,220 $ 2,243
Employee Benefits: 417 472 441 434 542 493 436 429 454 459
Outside Processing & Software: 357 394 411 493 579 475 421 414 438 443
Occupancy Expense: 312 334 351 347 357 363 321 316 335 338
Regulatory Assessments: - - 22 55 302 80 71 70 74 75
Credit and Collection Services: - - 113 156 259 110 98 96 102 103
Other Real Estate Expense: - - 16 105 244 76 67 66 70 71
Technology & Equipment: 204 197 206 203 172 210 186 183 194 196
Marketing and Customer Dev.: 157 173 195 372 152 220 195 191 203 205
Operating Losses: - - 134 446 100 137 121 119 126 127
Amortization of Intangibles: 119 103 97 76 56 47 37 30 22 15
Goodwill Impairment: - - - 45 751 - - - - -
Merger Costs: 99 - - - - - - - - -
Mortgage Reinsurance: - - 0 180 115 60 53 52 55 55
Loss on Extinguishment of Debt: - 12 10 12 39 - - - - -
Visa Litigation: - - 77 (33) 7 - - - - -
Other Expenses: 909 941 819 661 630 851 753 740 784 792
Total Non-Interest Expenses: $ 4,691 $ 4,880 $ 5,221 $ 5,879 $ 6,562 $ 5,529 $ 4,892 $ 4,802 $ 5,076 $ 5,123

Income Before Taxes & Gains: $ 2,866 $ 2,986 $ 2,262 $ 740 $ (2,450) $ 291 $ 1,233 $ 1,718 $ 2,077 $ 2,194
Income Tax Provision / (Benefit): 879 869 616 (67) (899) 102 432 601 727 768

Net Income: $ 1,987 $ 2,117 $ 1,647 $ 807 $ (1,552) $ 189 $ 802 $ 1,116 $ 1,350 $ 1,426
Preferred Stock Dividends: - (8) (30) (22) (14) - - - - -
US Treasury Preferred Dividends: - - - (27) (266) (269) - - - -
Gain on Repurchase of Preferred: - - - - 94 - - - - -
Dividends and Undistr. Earnings: - - (11) (6) 16 11 11 11 11 11
Net Income to NCI: - - (13) (11) (12) - - - - -
Net Income to Common: $ 1,987 $ 2,110 $ 1,593 $ 741 $ (1,733) $ (69) $ 813 $ 1,127 $ 1,361 $ 1,437

Weighted Avg. Basic Shares: 363.5 362.8 349.3 348.9 435.3 435.3 435.3 435.3 435.3 435.3
Weighted Avg. Diluted Shares: 359.1 359.4 352.7 350.2 435.3 435.3 435.3 435.3 435.3 435.3

Net Income Per Average Common Share:

Basic EPS: $ 5.47 $ 5.82 $ 4.56 $ 2.12 $ (3.98) $ (0.16) $ 1.87 $ 2.59 $ 3.13 $ 3.30
Diluted EPS: $ 5.53 $ 5.87 $ 4.52 $ 2.12 $ (3.98) $ (0.16) $ 1.87 $ 2.59 $ 3.13 $ 3.30

Common Dividends Issued: 795 880 1,027 993 49 - 366 507 613 647
Dividend Payout Ratio: 40.0% 41.7% 64.4% 134.0% (2.8%) 45.0% 45.0% 45.0% 45.0% 45.0%

Potential Dividends: - 366 507 613 647

Maximum Allowable Dividends
to Maintain Min. Tier 1 Common: 1,133 2,291 2,801 3,179 3,530

Dividends Per Common Share: $ 2.19 $ 2.42 $ 2.94 $ 2.84 $ 0.11 $ - $ 0.84 $ 1.17 $ 1.41 $ 1.49

SunTrust Banks Inc. - Income Statement Drivers

($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Provision for Loan Losses as % of

Average Loan Balances: 0.22% 0.55% 1.98% 3.38% 2.65% 1.50% 1.00% 0.80% 0.70%

Investment Banking % Growth: 6.5% (6.8%) 10.1% 15.0% 10.0% 7.5% 7.5% 5.0% 5.0%
Principal Transactions % Avg.
Trading Assets: 4.0% (5.4%) 0.4% (0.5%) 2.5% 2.5% 2.5% 2.5% 3.0%
Lending & Deposit Fees % Avg.
Loans & Deposits: 0.32% 0.34% 0.38% 0.36% 0.35% 0.35% 0.35% 0.35% 0.35%
Other Charges and Fees % Avg.
Loans & Deposits: 0.19% 0.20% 0.21% 0.22% 0.21% 0.21% 0.21% 0.21% 0.21%

Assets Under Advisement: $ 242,500 $ 242,500 $ 250,000 $ 192,000 $ 205,400 $ 217,724 $ 228,610 $ 240,041 $ 249,642 $ 257,132
AUA % Growth: 0.0% 3.1% (23.2%) 7.0% 6.0% 5.0% 5.0% 4.0% 3.0%

Asset Management Fees %

Avg. AUS: 0.28% 0.28% 0.27% 0.24% 0.25% 0.25% 0.25% 0.25% 0.25%

Residential Mortgages & Constr.: 54,560 61,826 61,468 58,384 53,389 53,582 53,582 56,261 59,074 62,028
% Total Gross Loans: 47.6% 50.9% 50.3% 46.0% 47.0% 48.3% 48.3% 48.3% 48.3% 48.3%
Fees % Average Loans: 0.58% 0.46% (0.07%) 1.26% 0.56% 0.56% 0.56% 0.56% 0.56%

Credit Card Loans: 265 351 854 970 1,068 648 648 680 714 750
% Total Gross Loans: 0.2% 0.3% 0.7% 0.8% 0.9% 0.6% 0.6% 0.6% 0.6% 0.6%
CC Income % Average Loans: 80.5% 46.6% 33.8% 31.8% 48.17% 48.17% 48.17% 48.17% 48.17%

Retail Investment Services % Growth: 9.7% 18.8% 4.0% (24.7%) (10.0%) (5.0%) 0.0% 5.0% 10.0%
Other Income % Growth: 24.8% 6.3% (31.5%) (31.7%) (10.0%) (5.0%) 0.0% 5.0% 10.0%
Non-Interest Expenses - % of Net Revenue:
Compensation Expense: 27.4% 27.7% 28.6% 25.6% 27.6% 27.4% 27.4% 27.4% 27.4% 27.4%
Employee Benefits: 5.4% 5.8% 5.4% 4.8% 6.6% 5.6% 5.6% 5.6% 5.6% 5.6%
Outside Processing & Software: 4.6% 4.8% 5.0% 5.4% 7.1% 5.4% 5.4% 5.4% 5.4% 5.4%
Occupancy Expense: 4.0% 4.1% 4.3% 3.8% 4.4% 4.1% 4.1% 4.1% 4.1% 4.1%
Regulatory Assessments: 0.0% 0.0% 0.3% 0.6% 3.7% 0.9% 0.9% 0.9% 0.9% 0.9%
Credit and Collection Services: 0.0% 0.0% 1.4% 1.7% 3.2% 1.3% 1.3% 1.3% 1.3% 1.3%
Other Real Estate Expense: 0.0% 0.0% 0.2% 1.2% 3.0% 0.9% 0.9% 0.9% 0.9% 0.9%
Technology & Equipment: 2.6% 2.4% 2.5% 2.2% 2.1% 2.4% 2.4% 2.4% 2.4% 2.4%
Marketing and Customer Dev.: 2.0% 2.1% 2.4% 4.1% 1.9% 2.5% 2.5% 2.5% 2.5% 2.5%
Operating Losses: 0.0% 0.0% 1.6% 4.9% 1.2% 1.6% 1.6% 1.6% 1.6% 1.6%
Mortgage Reinsurance: 0.0% 0.0% 0.0% 2.0% 1.4% 0.7% 0.7% 0.7% 0.7% 0.7%
Other Expenses: 11.7% 11.6% 10.0% 7.3% 7.7% 9.7% 9.7% 9.7% 9.7% 9.7%

Effective Tax Rate: 30.7% 29.1% 27.2% (9.1%) 36.7% 35.0% 35.0% 35.0% 35.0% 35.0%
JPMorgan Chase & Co. - Summary and Key Ratios
($ in Millions)
Historical
December 30, 2005 2006 2007 2008 2009
Income Statement:
Non-Interest Income: $ 34,193 $ 40,195 $ 44,966 $ 28,473 $ 49,282
Net Interest Income: 19,555 21,242 26,406 38,779 51,152
Total Net Revenue: $ 53,748 $ 61,437 $ 71,372 $ 67,252 $ 100,434

Provision for Credit Losses: 3,483 3,270 6,864 20,979 32,015

Non-Interest Expenses: 38,426 38,281 41,703 43,500 52,352

Normalized Net Income: $ 8,254 $ 13,649 $ 15,365 $ 3,699 $ 11,652

Normalized NI to Common: 8,241 13,645 14,924 2,836 8,698
Diluted EPS: $ 2.32 $ 3.82 $ 4.33 $ 0.81 $ 2.24
Dividends Per Comm. Share: 1.36 1.36 1.48 1.52 0.20
BV Per Common Share: 30.71 33.45 36.59 36.15 39.88
TBV Per Common Share: 15.87 18.29 21.34 21.79 26.44

Financial & Capital Ratios:

Return on Equity: 12.2% 12.9% 2.6% 7.0%
Return on Common Equity: 12.2% 12.5% 2.2% 6.0%
Return on Tangible Common Equity: 21.7% 21.4% 3.7% 9.3%
Return on Assets: 1.07% 1.05% 0.20% 0.55%
Return on Tangible Assets: 1.11% 1.09% 0.20% 0.57%

Tier 1 Common Ratio: 7.0% 7.3% 7.0% 7.0% 8.8%

Tier 1 Capital Ratio: 8.5% 8.7% 8.4% 10.9% 11.1%
Total Capital Ratio: 12.0% 12.3% 12.6% 14.8% 14.8%
Tier 1 Leverage Ratio: 6.3% 6.2% 6.0% 6.9% 6.9%
Overhead Ratio: 71.5% 62.3% 58.4% 64.7% 52.1%

Balance Sheet Data:

Trading Assets: $ 298,377 $ 365,738 $ 491,409 $ 509,983 $ 411,128
Securities: 47,600 91,975 85,450 205,943 360,390
Net Loans: 412,058 475,848 510,140 721,734 601,856
Total Assets: 1,198,942 1,351,520 1,562,147 2,175,052 2,031,989
Deposits: 554,991 638,788 740,728 1,009,277 938,367
Long-Term Debt: 108,357 133,421 183,862 270,683 266,318
Comm. Stockholders' Equity: 107,072 115,790 123,221 134,945 157,213
Total Stockholders' Equity: 107,211 115,790 123,221 166,884 165,365

Risk-Weighted Assets: 850,643 935,909 1,051,879 1,244,659 1,198,006

Total Adjusted Avg. Assets: 1,152,546 1,308,699 1,473,541 1,966,895 1,933,767
 Projected
2010 2011 2012 2013 2014

$ 48,611 $ 50,030 $ 51,891 $ 53,841 $ 58,386

52,780 46,236 44,174 46,978 45,898
$ 101,390 $ 96,266 $ 96,065 $ 100,819 $ 104,284

17,315 10,363 7,276 6,087 5,541

60,898 57,747 57,545 60,269 62,117

$ 16,224 $ 19,710 $ 21,871 $ 24,124 $ 25,638

14,576 17,982 20,143 22,396 23,910
$ 3.51 $ 4.55 $ 5.44 $ 6.23 $ 6.80
0.33 0.58 1.47 2.04 2.61
44.13 49.19 54.31 59.90 65.65
30.83 34.63 39.19 44.52 49.98

9.4% 10.9% 11.8% 12.3% 12.3%

8.8% 10.4% 11.4% 11.9% 11.9%
13.0% 14.9% 16.1% 16.4% 16.0%
0.80% 0.96% 1.05% 1.12% 1.14%
0.82% 0.99% 1.07% 1.15% 1.17%

9.6% 9.6% 9.5% 9.6% 9.5%

11.9% 11.8% 11.5% 11.5% 11.2%
15.8% 15.7% 14.9% 14.4% 13.9%
7.4% 7.4% 7.7% 8.1% 8.4%
60.1% 60.0% 59.9% 59.8% 59.6%

$ 370,015 $ 351,514 $ 351,514 $ 369,090 $ 405,999

360,390 342,371 325,252 325,252 341,515
640,443 680,687 725,280 758,238 793,580
2,038,056 2,057,264 2,123,184 2,190,898 2,306,382
909,861 932,161 995,749 1,033,412 1,077,455
269,319 269,208 268,852 263,520 258,589
172,816 173,205 181,571 194,568 207,546
180,968 181,357 189,723 202,720 215,698

1,243,930 1,254,003 1,363,976 1,491,322 1,640,884

1,982,502 1,994,940 2,038,105 2,105,454 2,197,470
JPMorgan Chase & Co. - Tier 1 Capital and Total Capital Calculations
($ in Millions)
Historical
December 30, 2005 2006 2007 2008 2009
Tier 1 Capital:
Stockholders' Equity: $ 107,211 $ 115,790 $ 123,221 $ 166,884 $ 165,365
Less: Preferred Stock: 139 - - 31,939 8,152
Common Stockholders' Equity: $ 107,072 $ 115,790 $ 123,221 $ 134,945 $ 157,213
AOCI Adjustments: 618 1,562 925 5,084 75

Less: Goodwill, Net DTLs: 43,621 45,186 45,270 46,417 46,630

Less: Fair Value DVA: - - 882 2,358 912
Less: Investments in Subsid.: 401 420 782 679 802
Less: Non-Qualifying Intang.: 3,993 3,661 3,471 3,667 3,660
Tier 1 Common Capital: $ 59,675 $ 68,085 $ 73,741 $ 86,908 $ 105,284
Preferred Stock: 139 - - 31,939 8,152
Qualifying Hybrid Securities
& Non-Controlling Interests: 12,660 12,970 15,005 17,257 19,535
Total Tier 1 Capital: $ 72,474 $ 81,055 $ 88,746 $ 136,104 $ 132,971
% Growth: 5.6% 11.8% 9.5% 53.4% (2.3%)

% Non-Qualifying Intang.: 49.3% 50.1% 56.9% 65.7% 79.2%

Tier 2 Capital:
Long-Term Debt & Other: 22,733 26,613 32,817 31,659 28,977
Qualifying Allowance for LL: 7,490 7,803 10,084 17,187 15,296
Adjustments: (260) (206) 595 (230) (171)
Total Tier 2 Capital: $ 29,963 $ 34,210 $ 43,496 $ 48,616 $ 44,102
% Growth: 6.3% 14.2% 27.1% 11.8% (9.3%)

% Qualifying CL Provisions: 105.6% 107.2% 109.2% 74.2% 48.4%

Total Capital: $ 102,437 $ 115,265 $ 132,242 $ 184,720 $ 177,073

% Growth: 5.8% 12.5% 14.7% 39.7% (4.1%)
Risk-Weighted Assets: 850,643 935,909 1,051,879 1,244,659 1,198,006
Total Adj. Avg. Assets: 1,152,546 1,308,699 1,473,541 1,966,895 1,933,767

RWA % Average IEA: 94.6% 94.0% 94.0% 90.6% 72.6%

RWA % Growth: 7.5% 10.0% 12.4% 18.3% (3.7%)

Total Assets: $ 1,198,942 $ 1,351,520 $ 1,562,147 $ 2,175,052 $ 2,031,989

Tangible Assets: 1,150,927 1,302,253 1,511,742 2,121,931 1,979,985
Tangible Common Equity: 59,057 66,523 72,816 81,824 105,209
Tier 1 Common Ratio: 7.0% 7.3% 7.0% 7.0% 8.8%
Tier 1 Capital Ratio: 8.5% 8.7% 8.4% 10.9% 11.1%
Total Capital Ratio: 12.0% 12.3% 12.6% 14.8% 14.8%
Tier 1 Leverage Ratio: 6.3% 6.2% 6.0% 6.9% 6.9%
 Projected
2010 2011 2012 2013 2014

$ 180,968 $ 181,357 $ 189,723 $ 202,720 $ 215,698

8,152 8,152 8,152 8,152 8,152
$ 172,816 $ 173,205 $ 181,571 $ 194,568 $ 207,546
- - - - -

48,357 48,357 48,357 48,357 48,357

912 912 912 912 912
802 802 802 802 802
2,966 2,332 1,764 1,267 931
$ 119,779 $ 120,802 $ 129,736 $ 143,230 $ 156,544
8,152 8,152 8,152 8,152 8,152

19,535 19,535 19,535 19,535 19,535

$ 147,466 $ 148,489 $ 157,423 $ 170,917 $ 184,231
10.9% 0.7% 6.0% 8.6% 7.8%

80.0% 80.0% 80.0% 80.0% 80.0%

28,977 28,977 28,977 28,977 28,977

19,713 19,429 17,225 15,138 14,511
(171) (171) (171) (171) (171)
$ 48,519 $ 48,235 $ 46,031 $ 43,944 $ 43,317
10.0% (0.6%) (4.6%) (4.5%) (1.4%)

60.0% 70.0% 80.0% 90.0% 100.0%

$ 195,984 $ 196,724 $ 203,455 $ 214,861 $ 227,548

10.7% 0.4% 3.4% 5.6% 5.9%
1,243,930 1,254,003 1,363,976 1,491,322 1,640,884
1,982,502 1,994,940 2,038,105 2,105,454 2,197,470

75.0% 75.0% 80.0% 85.0% 90.0%

3.8% 0.8% 8.8% 9.3% 10.0%

$ 2,038,056 $ 2,057,264 $ 2,123,184 $ 2,190,898 $ 2,306,382

1,985,019 2,004,861 2,071,349 2,139,560 2,255,380
119,779 120,802 129,736 143,230 156,544
 9.6% 9.6% 9.5% 9.6% 9.5%
11.9% 11.8% 11.5% 11.5% 11.2%
15.8% 15.7% 14.9% 14.4% 13.9%
7.4% 7.4% 7.7% 8.1% 8.4%
JPMorgan Chase & Co. - Loan Portfolio
($ in Millions)
Historical - Net of Charge-Offs Projected - Prior to Charge-Offs
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
US Wholesale Loans:
Commercial and Industrial: $ 43,578 $ 48,500 $ 70,081 $ 74,153 $ 51,113 $ 56,224 $ 60,441 $ 64,974 $ 68,223 $ 71,634
Real Estate: 16,505 18,047 15,977 61,890 54,970 60,467 65,002 69,877 73,371 77,040
Financial Institutions 13,681 15,632 15,113 20,953 13,557 14,235 14,947 15,694 16,086 16,488
Government Agencies: 3,709 4,148 5,770 5,919 5,634 6,197 6,817 7,328 7,878 8,272
Other: 34,592 32,359 26,312 23,861 23,811 25,002 26,252 27,564 28,253 28,960
Total US Wholesale Loans: 112,065 118,686 133,253 186,776 149,085 162,125 173,459 185,438 193,812 202,394
Non-US Wholesale Loans:
Commercial and Industrial: 18,545 22,378 33,829 35,291 20,188 21,702 23,330 25,079 26,333 27,650
Real Estate: 1,393 2,325 3,632 2,811 2,270 2,440 2,623 2,820 2,961 3,109
Financial Institutions 8,093 19,174 17,245 17,552 11,848 12,440 13,062 13,716 14,058 14,410
Government Agencies: 1,296 2,543 720 602 1,707 2,048 2,356 2,591 2,850 3,135
Other: 8,719 18,636 24,397 19,012 19,077 20,031 21,032 22,084 23,188 24,348
Total Non-US Wholesale Loans: 38,046 65,056 79,823 75,268 55,090 58,662 62,403 66,290 69,391 72,652
Total Wholesale Loans:
Commercial and Industrial: 62,123 70,878 103,910 109,444 71,301 77,926 83,771 90,054 94,556 99,284
Real Estate: 17,898 20,372 19,609 64,701 57,240 62,907 67,625 72,697 76,332 80,149
Financial Institutions 21,774 34,806 32,358 38,505 25,405 26,675 28,009 29,409 30,145 30,898
Government Agencies: 5,005 6,691 6,490 6,521 7,341 8,246 9,173 9,920 10,728 11,407
Other: 43,311 50,995 50,709 42,873 42,888 45,032 47,284 49,648 51,442 53,307
Total Wholesale Loans: 150,111 183,742 213,076 262,044 204,175 220,787 235,862 251,728 263,203 275,046
Total Consumer Loans:
Home Equity: 73,866 85,730 94,832 142,890 127,945 140,740 151,295 162,642 170,774 179,313
Mortgage: 58,959 59,668 56,031 157,078 143,129 157,442 169,250 181,944 191,041 200,593
Auto Loans: 46,081 41,009 42,350 42,603 46,031 50,634 55,698 61,267 65,862 70,802
Credit Card Receivables: 71,738 85,881 84,352 104,746 78,786 84,695 91,047 95,599 100,379 105,398
Other: 18,393 27,097 28,733 35,537 33,392 35,062 36,815 38,655 39,622 40,612
Total Consumer Loans: 269,037 299,385 306,298 482,854 429,283 468,572 504,104 540,108 567,679 596,719
Total Loans: $ 419,148 $ 483,127 $ 519,374 $ 744,898 $ 633,458 $ 689,359 $ 739,966 $ 791,836 $ 830,882 $ 871,764

Loan Growth Rates:

US Wholesale Loans:
Commercial and Industrial: 11.3% 44.5% 5.8% (31.1%) 10.0% 7.5% 7.5% 5.0% 5.0%
Real Estate: 9.3% (11.5%) 287.4% (11.2%) 10.0% 7.5% 7.5% 5.0% 5.0%
Financial Institutions 14.3% (3.3%) 38.6% (35.3%) 5.0% 5.0% 5.0% 2.5% 2.5%
Government Agencies: 11.8% 39.1% 2.6% (4.8%) 10.0% 10.0% 7.5% 7.5% 5.0%
Other: (6.5%) (18.7%) (9.3%) (0.2%) 5.0% 5.0% 5.0% 2.5% 2.5%
Total US Wholesale Loans: 5.9% 12.3% 40.2% (20.2%) 8.7% 7.0% 6.9% 4.5% 4.4%
Non-US Wholesale Loans:
Commercial and Industrial: 20.7% 51.2% 4.3% (42.8%) 7.5% 7.5% 7.5% 5.0% 5.0%
Real Estate: 66.9% 56.2% (22.6%) (19.2%) 7.5% 7.5% 7.5% 5.0% 5.0%
Financial Institutions 136.9% (10.1%) 1.8% (32.5%) 5.0% 5.0% 5.0% 2.5% 2.5%
Government Agencies: 96.2% (71.7%) (16.4%) 183.6% 20.0% 15.0% 10.0% 10.0% 10.0%
Other: 113.7% 30.9% (22.1%) 0.3% 5.0% 5.0% 5.0% 5.0% 5.0%
Total Non-US Wholesale Loans: 71.0% 22.7% (5.7%) (26.8%) 6.5% 6.4% 6.2% 4.7% 4.7%
Total Consumer Loans:
Home Equity: 16.1% 10.6% 50.7% (10.5%) 10.0% 7.5% 7.5% 5.0% 5.0%
Mortgage: 1.2% (6.1%) 180.3% (8.9%) 10.0% 7.5% 7.5% 5.0% 5.0%
Auto Loans: (11.0%) 3.3% 0.6% 8.0% 10.0% 10.0% 10.0% 7.5% 7.5%
Credit Card Receivables: 19.7% (1.8%) 24.2% (24.8%) 7.5% 7.5% 5.0% 5.0% 5.0%
Other: 47.3% 6.0% 23.7% (6.0%) 5.0% 5.0% 5.0% 2.5% 2.5%
Total Consumer Loans: 11.3% 2.3% 57.6% (11.1%) 9.2% 7.6% 7.1% 5.1% 5.1%
Total Loans: 15.3% 7.5% 43.4% (15.0%) 8.8% 7.3% 7.0% 4.9% 4.9%
JPMorgan Chase & Co. - Charge-Offs & Loan Loss Reserves
($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
LL Balance at Beginning of Year: $ 7,320 $ 7,090 $ 7,279 $ 9,234 $ 23,164 $ 31,602 $ 32,854 $ 27,756 $ 21,531 $ 16,820
Additions from M&A: - - - 2,535 - - - - - -
Provision for Loan Losses: 3,575 3,153 6,538 21,237 31,735 17,315 10,363 7,276 6,087 5,541
US Charge-Offs:
Commercial and Industrial: $ 154 $ 80 $ 34 $ 183 $ 1,233 $ 562 $ 604 $ 650 $ 512 $ 358
Real Estate: 2 10 46 217 700 454 325 349 220 77
Financial Institutions 2 1 9 17 671 427 224 78 16 16
Government Agencies: - 2 10 - - - - - - -
Other: 64 36 81 35 151 125 105 83 85 58
Consumer: 4,604 3,635 5,181 10,140 20,638 15,229 15,123 13,503 11,354 8,951
Total US Charge-Offs: 4,826 3,764 5,361 10,592 23,393 16,796 16,382 14,663 12,186 9,460
Non-US Charge-Offs:
Commercial and Industrial: 32 43 2 40 64 $ 33 $ 35 $ 25 $ 26 $ 14
Real Estate: - - - - - - - - - -
Financial Institutions - - - 29 66 62 52 41 28 14
Government Agencies: - - - - - - - - - -
Other: 1 14 3 - 341 300 263 221 174 122
Consumer: 10 63 1 103 154 - - - - -
Total Non-US Charge-Offs: 43 120 6 172 625 395 350 287 228 150
Total Charge-Offs: 4,869 3,884 5,367 10,764 24,018 17,192 16,732 14,950 12,415 9,610
US Recoveries:
Commercial and Industrial: (110) (89) (48) (60) (53) $ (56) $ (60) $ (97) $ (136) $ (143)
Real Estate: (4) (4) (1) (5) (12) (13) (14) (15) (16) (17)
Financial Institutions (6) (4) (3) (2) (3) (3) (3) (3) (4) (4)
Government Agencies: - - - - - - - - - -
Other: (46) (48) (40) (29) (25) (25) (32) (36) (40) (43)
Consumer: (717) (622) (716) (793) (941) (1,031) (1,159) (1,296) (1,419) (1,551)
Total US Recoveries: (883) (767) (808) (889) (1,034) (1,128) (1,269) (1,448) (1,615) (1,759)
Non-US Recoveries:
Commercial and Industrial: (122) (26) (8) (16) (1) $ (1) $ (1) $ (1) $ (1) $ (1)
Real Estate: - - - - - - - - - -
Financial Institutions (7) (11) (1) - - - - - - -
Government Agencies: (15) - - - - - - - - -
Other: (22) (26) (12) (7) - - - - - -
Consumer: (1) (12) - (17) (18) - - - - -
Total Non-US Recoveries: (167) (75) (21) (40) (19) (1) (1) (1) (1) (1)
Total Recoveries: (1,050) (842) (829) (929) (1,053) (1,130) (1,270) (1,450) (1,616) (1,760)
Net Charge-Offs: 3,819 3,042 4,538 9,835 22,965 16,062 15,462 13,501 10,798 7,850
Allowance for Purch. Porfolios: 17 75 - 6 - - - - - -
Change in Accounting Principles: - - (56) - - - - - - -
Other: (3) 3 11 (13) (332) - - - - -
LL Balance at Year-End: $ 7,090 $ 7,279 $ 9,234 $ 23,164 $ 31,602 $ 32,854 $ 27,756 $ 21,531 $ 16,820 $ 14,511

Charge-Offs & Recoveries as % of Loan Balances:

Provision for Loan Losses as % of

Average Loan Balances: 0.87% 0.69% 1.36% 3.61% 4.65% 2.65% 1.50% 1.00% 0.80% 0.70%

Total Consumer Gross Loans: 269,037 299,385 306,298 482,854 429,283 468,572 504,104 540,108 567,679 596,719
Total Consumer Charge-Offs: 4,614 3,698 5,182 10,243 20,792 15,229 15,123 13,503 11,354 8,951
Total Consumer Recoveries: (718) (634) (716) (810) (959) (1,031) (1,159) (1,296) (1,419) (1,551)

US Charge-Offs:
Commercial and Industrial: 0.35% 0.16% 0.05% 0.25% 2.41% 1.00% 1.00% 1.00% 0.75% 0.50%
Real Estate: 0.01% 0.06% 0.29% 0.35% 1.27% 0.75% 0.50% 0.50% 0.30% 0.10%
Financial Institutions 0.01% 0.01% 0.06% 0.08% 4.95% 3.00% 1.50% 0.50% 0.10% 0.10%
Government Agencies: 0.00% 0.05% 0.17% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other: 0.19% 0.11% 0.31% 0.15% 0.63% 0.50% 0.40% 0.30% 0.30% 0.20%
Consumer: 1.72% 1.24% 1.69% 2.12% 4.84% 3.25% 3.00% 2.50% 2.00% 1.50%
Total US Charge-Offs: 1.27% 0.92% 1.22% 1.60% 4.07% 2.66% 2.42% 2.02% 1.60% 1.18%
Non-US Charge-Offs:
Commercial and Industrial: 0.17% 0.19% 0.01% 0.11% 0.32% 0.15% 0.15% 0.10% 0.10% 0.05%
 Real Estate: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Financial Institutions 0.00% 0.00% 0.00% 0.17% 0.56% 0.50% 0.40% 0.30% 0.20% 0.10%
Government Agencies: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other: 0.01% 0.08% 0.01% 0.00% 1.79% 1.50% 1.25% 1.00% 0.75% 0.50%
Consumer: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Non-US Charge-Offs: 0.09% 0.09% 0.01% 0.09% 0.85% 0.67% 0.56% 0.43% 0.33% 0.21%
US Recoveries:
Commercial and Industrial: (0.25%) (0.18%) (0.07%) (0.08%) (0.10%) (0.10%) (0.10%) (0.15%) (0.20%) (0.20%)
Real Estate: (0.02%) (0.02%) (0.01%) (0.01%) (0.02%) (0.02%) (0.02%) (0.02%) (0.02%) (0.02%)
Financial Institutions (0.04%) (0.03%) (0.02%) (0.01%) (0.02%) (0.02%) (0.02%) (0.02%) (0.02%) (0.02%)
Government Agencies: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other: (0.13%) (0.15%) (0.15%) (0.12%) (0.10%) (0.10%) (0.12%) (0.13%) (0.14%) (0.15%)
Consumer: (0.27%) (0.21%) (0.23%) (0.17%) (0.22%) (0.22%) (0.23%) (0.24%) (0.25%) (0.26%)
Total US Recoveries: (0.23%) (0.19%) (0.18%) (0.14%) (0.18%) (0.18%) (0.19%) (0.20%) (0.21%) (0.22%)
Non-US Recoveries:
Commercial and Industrial: (0.66%) (0.12%) (0.02%) (0.05%) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%)
Real Estate: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Financial Institutions (0.09%) (0.06%) (0.01%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Government Agencies: (1.16%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other: (0.25%) (0.14%) (0.05%) (0.04%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Consumer: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Non-US Recoveries: (0.44%) (0.10%) (0.03%) (0.03%) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%)

Total Wholesale Loans: 150,111 183,742 213,076 262,044 204,175 220,787 235,862 251,728 263,203 275,046
Total Consumer Loans: 269,037 299,385 306,298 482,854 429,283 468,572 504,104 540,108 567,679 596,719
Gross Loan Balance: 422,967 486,169 523,912 754,733 656,423 689,359 739,966 791,836 830,882 871,764
Gross Loans Net of NCOs: 419,148 483,127 519,374 744,898 633,458 673,297 708,442 746,812 775,059 808,091
Average Loan Balance: 409,988 454,535 479,679 588,801 682,885 653,378 690,870 727,627 760,935 791,575

Key Metrics & Ratios:

Net Charge-Off Ratio: 0.93% 0.67% 0.95% 1.67% 3.36% 2.46% 2.24% 1.86% 1.42% 0.99%
Net Charge-Offs / Reserves: 53.86% 41.79% 49.14% 42.46% 72.67% 48.89% 55.71% 62.70% 64.20% 54.10%
Reserves / Total Loans: 1.69% 1.51% 1.78% 3.11% 4.99% 4.88% 3.92% 2.88% 2.17% 1.80%
NCO / Prior Year Provision: N/A 85.09% 143.93% 150.43% 108.14% 50.61% 89.30% 130.28% 148.41% 128.96%
JPMorgan Chase & Co. - Historical and Projected Balance Sheet
($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Assets:
Cash and Due from Banks: $ 36,670 $ 40,412 $ 40,144 $ 26,895 $ 26,206 $ 27,296 $ 32,626 $ 39,830 $ 46,504 $ 53,873
Deposits with Banks: 21,661 13,547 11,466 138,139 63,230 59,141 55,930 49,787 41,336 32,324
Federal Funds Sold: 133,981 140,524 170,897 203,115 195,404 195,404 195,404 220,304 220,304 220,304
Securities Borrowed: 74,604 73,688 84,184 124,000 119,630 126,137 136,948 146,363 162,626 187,833
Trading Assets: 298,377 365,738 491,409 509,983 411,128 370,015 351,514 351,514 369,090 405,999
Securities: 47,600 91,975 85,450 205,943 360,390 360,390 342,371 325,252 325,252 341,515

Loans: 419,148 483,127 519,374 744,898 633,458 673,297 708,442 746,812 775,059 808,091
Allowance for Loan Losses: (7,090) (7,279) (9,234) (23,164) (31,602) (32,854) (27,756) (21,531) (16,820) (14,511)
Net Loans: 412,058 475,848 510,140 721,734 601,856 640,443 680,687 725,280 758,238 793,580
Accrued Interest and AR: 22,421 22,891 24,823 60,987 67,427 67,330 63,760 59,745 54,254 48,485
Premises and Equipment: 9,081 8,735 9,319 10,045 11,118 11,118 11,118 11,118 11,118 11,118
Goodwill: 43,621 45,186 45,270 48,027 48,357 48,357 48,357 48,357 48,357 48,357
Mortgage Servicing Rights: 6,452 7,546 8,632 9,403 15,531 16,273 17,567 19,456 22,065 25,152
Core Deposit Intangibles: 2,705 2,623 2,067 1,597 1,207 878 594 354 159 53
Other Intangible Assets: 5,402 4,683 4,032 3,984 3,414 2,830 2,321 1,851 1,425 1,111
Other Assets: 84,309 58,124 74,314 111,200 107,091 112,446 118,068 123,971 130,170 136,678
Total Assets: ### ### ### ### ### ### ### ### ### ###
Liabilities:
Deposits: $ 554,991 $ 638,788 $ 740,728 ### $ 938,367 $ 909,861 $ 932,161 $ 995,749 ### ###
Federal Funds Purchased: 125,925 162,173 154,398 192,546 261,413 285,059 291,843 291,843 318,751 358,831
Commercial Paper: 13,863 18,849 49,596 37,845 41,794 43,764 42,507 41,075 38,753 40,405
Other Borrowed Funds: 10,479 18,053 28,835 132,400 55,740 53,864 49,591 44,809 38,753 32,324
Trading Liabilities: 145,930 147,957 157,867 166,878 125,071 118,405 119,515 126,545 140,254 162,400
AP and Other Liabilities: 78,460 88,096 94,476 187,978 162,696 161,591 155,857 149,362 139,511 145,456
Beneficial Interests: 42,197 16,184 14,016 10,561 15,225 15,225 15,225 15,225 15,225 15,225
Long-Term Debt: 108,357 133,421 183,862 270,683 266,318 269,319 269,208 268,852 263,520 258,589
Jr. Sub Debentures: 11,529 12,209 15,148 - - - - - - -
Total Liabilities: ### ### ### ### ### ### ### ### ### ###

Shareholders' Equity:
Preferred Stock: $ 139 $ - $ - $ 31,939 $ 8,152 $ 8,152 $ 8,152 $ 8,152 $ 8,152 $ 8,152
Common Stock: 3,618 3,658 3,658 3,942 4,105 4,105 4,105 4,105 4,105 4,105
Capital Surplus: 74,994 77,807 78,597 92,143 97,982 105,321 112,486 119,645 126,964 134,401
Retained Earnings: 33,848 43,600 54,715 54,013 62,481 75,745 91,569 106,676 122,354 137,895
Accumulated OCI: (626) (1,557) (917) (5,687) (91) (91) (91) (91) (91) (91)
Restricted Stock Units: - - - (217) (68) (68) (68) (68) (68) (68)
Treasury Stock: (4,762) (7,718) (12,832) (9,249) (7,196) (12,196) (34,796) (48,696) (58,696) (68,696)
Total Shareholders' Equity: $ 107,211 $ 115,790 $ 123,221 $ 166,884 $ 165,365 $ 180,968 $ 181,357 $ 189,723 $ 202,720 $ 215,698

Total Liabilities & SE: ### ### ### ### ### ### ### ### ### ###

Balance Check: OK! OK! OK! OK! OK! OK! OK! OK! OK! OK!

JPMorgan Chase & Co. - Balance Sheet Drivers

($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Assets:
Cash % Deposits: 6.61% 6.33% 5.42% 2.66% 2.79% 3.00% 3.50% 4.00% 4.50% 5.00%
Bank Deposits % Deposits: 3.90% 2.12% 1.55% 13.69% 6.74% 6.50% 6.00% 5.00% 4.00% 3.00%
Sec. Borrowed % Securities: 156.73% 80.12% 98.52% 60.21% 33.19% 35.00% 40.00% 45.00% 50.00% 55.00%
Trading Assets % Growth: 22.58% 34.36% 3.78% (19.38%) (10.00%) (5.00%) 0.00% 5.00% 10.00%
Securities % Growth: 93.22% (7.09%) 141.01% 75.00% 0.00% (5.00%) (5.00%) 0.00% 5.00%
Accr. Interest and AR % Loans 5.35% 4.74% 4.78% 8.19% 10.64% 10.00% 9.00% 8.00% 7.00% 6.00%
MSR Originated: 1,512 2,335 3,061 3,615 4,157 4,698 5,214 5,788 6,425
MSR % Growth: 54.43% 31.09% 18.10% 15.00% 13.00% 11.00% 11.00% 11.00%
CDI Amortization: 623 568 554 469 390 329 284 240 195 106
Non-CDI Intang. Amortization 867 860 840 794 660 584 509 470 426 314
Other Assets % Growth: (31.06%) 27.85% 49.64% (3.70%) 5.00% 5.00% 5.00% 5.00% 5.00%

Liabilities:
Loans % Deposits: 75.52% 75.63% 70.12% 73.81% 67.51% 74.00% 76.00% 75.00% 75.00% 75.00%
Commercial Paper % Loans: 3.31% 3.90% 9.55% 5.08% 6.60% 6.50% 6.00% 5.50% 5.00% 5.00%
Other Borr. Funds % Loans: 2.50% 3.74% 5.55% 17.77% 8.80% 8.00% 7.00% 6.00% 5.00% 4.00%
Trading Liab. % Trading Assets 48.91% 40.45% 32.13% 32.72% 30.42% 32.00% 34.00% 36.00% 38.00% 40.00%
AP & Other Liab. % Loans: 18.72% 18.23% 18.19% 25.24% 25.68% 24.00% 22.00% 20.00% 18.00% 18.00%
Long-Term Debt % Loans: 25.85% 27.62% 35.40% 36.34% 42.04% 40.00% 38.00% 36.00% 34.00% 32.00%

Federal Funds Calculation:

Total Assets + Prior Year Fed Funds Sold: 2,038,056 2,057,264 2,098,284 2,190,898 2,306,382
Total L&E + Prior Year Fed Funds Purchased: 2,014,410 2,050,480 2,123,184 2,163,991 2,266,302
Increase in Fed Funds Sold: 6,543 30,373 32,218 (7,711) - - 24,900 - -
Increase in Fed Funds Purchased: 36,248 (7,775) 38,148 68,867 23,646 6,784 - 26,908 40,080

JPMorgan Chase & Co. - Interest-Earning Assets (IEA) and Interest-Bearing Liabilities (IBL)
($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Assets:
Deposits with Banks: $ 21,661 $ 13,547 $ 11,466 $ 138,139 $ 63,230 $ 59,141 $ 55,930 $ 49,787 $ 41,336 $ 32,324
Federal Funds Sold: 133,981 140,524 170,897 203,115 195,404 195,404 195,404 220,304 220,304 220,304
Securities Borrowed: 74,604 73,688 84,184 124,000 119,630 126,137 136,948 146,363 162,626 187,833
Trading Assets - Debt: 187,615 205,506 292,846 298,266 251,035 222,009 210,909 210,909 221,454 243,600
Securities: 47,600 91,975 85,450 205,943 360,390 360,390 342,371 325,252 325,252 341,515
Loans: 419,148 483,127 519,374 744,898 633,458 673,297 708,442 746,812 775,059 808,091
Other IE Assets: - - - 27,404 29,510 28,111 29,517 30,993 32,542 34,170
Total Interest-Earning Assets: $ 884,609 ### ### ### ### ### ### ### ### ###
Avg. Interest-Earning Assets: $ 899,096 $ 995,506 ### ### ### ### ### ### ### ###

Liabilities:
Interest-Bearing Deposits: $ 383,259 $ 452,323 $ 535,359 $ 645,058 $ 684,016 $ 636,903 $ 652,513 $ 697,024 $ 723,388 $ 754,218
Federal Funds Purchased: 125,925 162,173 154,398 192,546 261,413 285,059 291,843 291,843 318,751 358,831
Commercial Paper: 13,863 18,849 49,596 37,845 41,794 43,764 42,507 41,075 38,753 40,405
Other Borrowings & Liabilities 93,765 102,147 100,181 161,555 201,182 193,910 184,903 174,754 160,437 160,002
Beneficial Interests: 42,197 16,184 14,016 10,561 15,225 15,225 15,225 15,225 15,225 15,225
Long-Term Debt: 108,357 133,421 183,862 270,683 266,318 269,319 269,208 268,852 263,520 258,589
Total Interest-Bearing Liabilities $ 767,366 $ 885,097 ### ### ### ### ### ### ### ###
Avg. Interest-Bearing Liabilities $ 803,337 $ 914,282 ### ### ### ### ### ### ### ###

Debt % Trading Assets: 62.88% 56.19% 59.59% 58.49% 61.06% 60.00% 60.00% 60.00% 60.00% 60.00%
IE Assets % Other Assets: 0.00% 0.00% 0.00% 24.64% 27.56% 25.00% 25.00% 25.00% 25.00% 25.00%
IB Deposits % Deposits: 69.06% 70.81% 72.27% 63.91% 72.89% 70.00% 70.00% 70.00% 70.00% 70.00%
Other Borrowings % Other
Liabilities & Borrowed Funds: 105.43% 96.23% 81.24% 50.43% 92.10% 90.00% 90.00% 90.00% 90.00% 90.00%

Average Interest on IEA: 5.04% 5.96% 6.42% 5.36% 4.04% 4.50% 4.50% 4.75% 5.25% 5.50%
Average Interest on IBL: 3.18% 4.14% 4.29% 2.64% 1.02% 1.50% 2.00% 2.50% 3.00% 3.50%
Interest Rate Spread: 1.86% 1.82% 2.13% 2.72% 3.02% 3.00% 2.50% 2.25% 2.25% 2.00%

Net Interest Income Calculation:

Interest Income: $ 45,075 $ 59,107 $ 71,387 $ 73,018 $ 66,350 $ 74,636 $ 75,240 $ 80,986 $ 92,111 $ 100,276
Interest Expense: (25,520) (37,865) (44,981) (34,239) (15,198) (21,856) (29,004) (36,812) (45,133) (54,379)
Net Interest Income: $ 19,555 $ 21,242 $ 26,406 $ 38,779 $ 51,152 $ 52,780 $ 46,236 $ 44,174 $ 46,978 $ 45,898

JPMorgan Chase & Co. - Income Statement

($ in Millions Except Per Share Data)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Non-Interest Revenue:
Investment Banking Fees: $ 4,088 $ 5,520 $ 6,635 $ 5,526 $ 7,087 $ 7,796 $ 8,380 $ 9,009 $ 9,459 $ 9,932
Principal Transactions: 7,669 10,346 9,015 (10,699) 9,796 9,764 9,019 8,788 9,008 11,626
Securities Gains / (Losses): (1,336) (543) 164 1,560 1,110 - - - - -
Lending and Deposit Fees: 3,389 3,468 3,938 5,088 7,045 6,310 6,286 6,428 6,569 6,649
Asset Management: 9,891 11,725 14,356 13,943 12,540 14,288 15,568 16,651 17,650 18,528
Mortgage Fees & Income: 1,054 591 2,118 3,467 3,678 3,416 3,403 3,326 3,179 3,338
Credit Card Income: 6,754 6,913 6,911 7,419 7,110 6,212 6,590 6,906 7,153 7,408
Other Income: 2,684 2,175 1,829 2,169 916 824 783 783 822 905
Total Non-Interest Revenue: $ 34,193 $ 40,195 $ 44,966 $ 28,473 $ 49,282 $ 48,611 $ 50,030 $ 51,891 $ 53,841 $ 58,386

Interest Income: $ 45,075 $ 59,107 $ 71,387 $ 73,018 $ 66,350 $ 74,636 $ 75,240 $ 80,986 $ 92,111 $ 100,276
Interest Expense: (25,520) (37,865) (44,981) (34,239) (15,198) (21,856) (29,004) (36,812) (45,133) (54,379)
Net Interest Income: $ 19,555 $ 21,242 $ 26,406 $ 38,779 $ 51,152 $ 52,780 $ 46,236 $ 44,174 $ 46,978 $ 45,898

Total Net Revenue: $ 53,748 $ 61,437 $ 71,372 $ 67,252 $ 100,434 $ 101,390 $ 96,266 $ 96,065 $ 100,819 $ 104,284

Provision for Credit Losses: 3,483 3,270 6,864 20,979 32,015 17,315 10,363 7,276 6,087 5,541

Non-Interest Expenses:
Compensation Expense: $ 18,065 $ 21,191 $ 22,689 $ 22,746 $ 26,928 $ 32,552 $ 30,907 $ 30,842 $ 32,368 $ 33,481
Occupancy Expense: 2,269 2,335 2,608 3,038 3,666 4,024 3,821 3,813 4,001 4,139
Technology & Equipment: 3,602 3,653 3,779 4,315 4,624 5,873 5,576 5,565 5,840 6,041
Professional Services: 4,162 3,888 5,140 6,053 6,232 7,397 7,023 7,009 7,356 7,608
Marketing: 1,917 2,209 2,070 1,913 1,777 2,976 2,826 2,820 2,959 3,061
Other Expenses: 6,199 3,272 3,814 3,740 7,594 7,163 6,801 6,787 7,123 7,368
Amortization of Intangibles: 1,490 1,428 1,394 1,263 1,050 913 793 710 621 420
Merger Costs: 722 305 209 432 481 - - - - -
Total Non-Interest Expenses: $ 38,426 $ 38,281 $ 41,703 $ 43,500 $ 52,352 $ 60,898 $ 57,747 $ 57,545 $ 60,269 $ 62,117

Income Before Taxes & Gains: $ 11,839 $ 19,886 $ 22,805 $ 2,773 $ 16,067 $ 23,178 $ 28,157 $ 31,244 $ 34,463 $ 36,626
Income Tax Exp. / (Benefit): 3,585 6,237 7,440 (926) 4,415 6,953 8,447 9,373 10,339 10,988
NI Before Extra. Gains: $ 8,254 $ 13,649 $ 15,365 $ 3,699 $ 11,652 $ 16,224 $ 19,710 $ 21,871 $ 24,124 $ 25,638
Extraordinary Gain: - - - 1,906 76 - - - - -
Discontinued Operations: 229 795 - - - - - - - -
Net Income: $ 8,483 $ 14,444 $ 15,365 $ 5,605 $ 11,728 $ 16,224 $ 19,710 $ 21,871 $ 24,124 $ 25,638
Preferred Stock Dividends: 13 4 - 674 1,327 1,648 1,728 1,728 1,728 1,728
Accel. Amort. From TARP: - - - - 1,112 - - - - -
Undistributed Earnings: - - 441 189 515 - - - - -
Net Income to Common: $ 8,470 $ 14,440 $ 14,924 $ 4,742 $ 8,774 $ 14,576 $ 17,982 $ 20,143 $ 22,396 $ 23,910

Weighted Avg. Basic Shares: 3,492.0 3,470.0 3,404.0 3,501.0 3,862.8 3,929.1 3,718.6 3,432.0 3,295.7 3,204.9
Weighted Avg. Diluted Shares: 3,557.0 3,574.0 3,445.0 3,521.8 3,879.7 4,150.4 3,947.9 3,702.1 3,593.3 3,518.1
Ending Common Shares: 3,486.7 3,461.7 3,367.4 3,732.8 3,942.0 3,916.2 3,521.0 3,343.1 3,248.4 3,161.5

EPS Excluding Extraordinary Gains & Discontinued Operations:

Basic EPS (Excl. Gains): $ 2.36 $ 3.93 $ 4.38 $ 0.81 $ 2.25 $ 3.71 $ 4.84 $ 5.87 $ 6.80 $ 7.46
Diluted EPS (Excl. Gains): $ 2.32 $ 3.82 $ 4.33 $ 0.81 $ 2.24 $ 3.51 $ 4.55 $ 5.44 $ 6.23 $ 6.80

Dividends Per Common Share: $ 1.36 $ 1.36 $ 1.48 $ 1.52 $ 0.20 $ 0.33 $ 0.58 $ 1.47 $ 2.04 $ 2.61

JPMorgan Chase & Co. - Income Statement Drivers

($ in Millions Except Assets Under Supervision in Billions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Non-Interest Revenue:
Investment Banking % Growth: 15.6% 35.0% 20.2% (16.7%) 28.2% 10.0% 7.5% 7.5% 5.0% 5.0%
Principal Transactions % Avg.
Trading Assets: 2.6% 3.1% 2.1% (2.1%) 2.1% 2.5% 2.5% 2.5% 2.5% 3.0%
Lending & Deposit Fees % Avg.
Loans & Deposits: 0.36% 0.33% 0.33% 0.34% 0.42% 0.40% 0.39% 0.38% 0.37% 0.36%

Assets Under Supervision ($ B): $ 1,149 $ 1,347 $ 1,572 $ 1,496 $ 1,701 $ 1,871 $ 2,021 $ 2,142 $ 2,271 $ 2,361
AUS % Growth: 3.9% 17.2% 16.7% (4.8%) 13.7% 10.0% 8.0% 6.0% 6.0% 4.0%

Asset Management Fees %

Avg. AUS: 0.88% 0.94% 0.98% 0.91% 0.78% 0.80% 0.80% 0.80% 0.80% 0.80%

Mortgage & Home Equity Loans: 132,825 145,398 150,863 299,968 271,074 298,181 320,545 344,586 361,815 379,906
Fees % Average Loans: 0.82% 0.42% 1.43% 1.54% 1.29% 1.20% 1.10% 1.00% 0.90% 0.90%

Credit Card Receivables: 71,738 85,881 84,352 104,746 78,786 84,695 91,047 95,599 100,379 105,398
CC Income % Avg. Receiv.: 9.9% 8.8% 8.1% 7.8% 7.7% 7.6% 7.5% 7.4% 7.3% 7.2%

Other Income % Growth: 224.9% (19.0%) (15.9%) 18.6% (57.8%) (10.0%) (5.0%) 0.0% 5.0% 10.0%
Non-Interest Expenses:
% of Net Revenue:
Compensation Expense: 33.6% 34.5% 31.8% 33.8% 26.8% 32.1% 32.1% 32.1% 32.1% 32.1%
Occupancy Expense: 4.2% 3.8% 3.7% 4.5% 3.7% 4.0% 4.0% 4.0% 4.0% 4.0%
Technology & Equipment: 6.7% 5.9% 5.3% 6.4% 4.6% 5.8% 5.8% 5.8% 5.8% 5.8%
Professional Services: 7.7% 6.3% 7.2% 9.0% 6.2% 7.3% 7.3% 7.3% 7.3% 7.3%
Marketing: 3.6% 3.6% 2.9% 2.8% 1.8% 2.9% 2.9% 2.9% 2.9% 2.9%
Other Expenses: 11.5% 5.3% 5.3% 5.6% 7.6% 7.1% 7.1% 7.1% 7.1% 7.1%

Effective Tax Rate: 30.3% 31.4% 32.6% (33.4%) 27.5% 30.0% 30.0% 30.0% 30.0% 30.0%

JPMorgan Chase & Co. - Cash Flow Statement

($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Operating Activities:
Net Income: $ 8,483 $ 14,444 $ 15,365 $ 5,605 $ 11,728 $ 16,224 $ 19,710 $ 21,871 $ 24,124 $ 25,638
Reconciling Adjustments:
Provision for Credit Losses: 3,483 3,270 6,864 20,979 32,015 17,315 10,363 7,276 6,087 5,541
Depreciation & Amortization 2,828 2,149 2,427 3,143 2,783 3,975 3,774 3,767 3,953 4,089
Amortization of Intangibles 1,490 1,428 1,394 1,263 1,050 913 793 710 621 420
Deferred Tax Exp. / (Benefit): (1,791) (1,810) 1,307 (2,637) (3,622) - - - - -
Gains on Securities: 1,336 543 (164) (1,560) (1,110) - - - - -
Proceeds on Invest. Sales: (1,199) (1,540) - (1,540) - - - - - -
Stock-Based Compensation: 1,563 2,368 2,025 2,637 3,355 3,419 3,246 3,240 3,400 3,517
Origination & Loan Purchases (108,611) (178,355) (116,471) (34,902) (22,417) - 18,020 17,119 - (16,263)
Proceeds from Sales & Sec.: 102,602 170,874 107,350 38,036 33,902 - - - - -
Net Change In:
Trading Assets: (3,845) (61,664) (121,240) (12,787) 133,488 41,113 18,501 - (17,576) (36,909)
Securities Borrowed: (27,290) 916 (10,496) 15,408 4,452 (6,506) (10,812) (9,415) (16,263) (25,207)
Accrued Interest & AR: (1,934) (1,170) (1,932) 10,221 (6,312) 97 3,570 4,015 5,491 5,769
Other Assets: (9) (7,208) (21,628) (33,629) 32,182 (5,355) (5,622) (5,903) (6,199) (6,508)
Trading Liabilities: (12,578) (4,521) 12,681 24,061 (79,314) (6,666) 1,110 7,030 13,709 22,145
AP & Other: 5,532 7,815 4,284 1,012 (26,450) (1,105) (5,734) (6,495) (9,852) 5,946
Other Operating Adjustments: (296) 2,882 7,674 (12,212) 6,167 (742) (1,295) (1,889) (2,609) (3,087)
Net Cash Flow from Operations (30,236) (49,579) (110,560) 23,098 121,897 62,683 55,624 41,325 4,888 (14,910)

Investing Activities:
Net Change In:
Deposits with Banks: 104 8,168 2,081 (118,929) 74,829 4,089 3,211 6,142 8,451 9,013
Fed Funds Sold: (32,469) (6,939) (29,814) (44,597) 7,082 - - (24,900) - -
Held-to-Maturity Securities:
Proceeds: 33 19 14 10 9 - - - - -
Available-for-Sale Securities:
Proceeds from Maturities: 31,053 24,909 31,143 44,414 87,712 - - - - -
Proceeds from Sales: 82,902 123,750 98,450 96,806 114,041 - - - - -
Purchases: (81,749) (201,530) (122,507) (248,599) (346,372) (55,901) (50,607) (51,870) (39,046) (40,883)
Proceeds from Sale & Sec.: 23,861 20,809 34,925 27,531 30,434 - - - - -
Other Net Changes in Loans: (40,436) (70,837) (83,437) (59,123) 51,251 - - - - -
Acquisitions: (1,039) 185 (70) 2,128 (97) - - - - -
Proceeds from Asset Sales: 4,796 1,839 - 28,850 - - - - - -
Commercial Paper Maturities: - - - (11,228) 11,228 - - - - -
Other Investing Activ., Net: - - (4,973) (934) (762) (3,975) (3,774) (3,767) (3,953) (4,089)
Net Cash Flow from Investing: (12,944) (99,627) (74,188) (283,671) 29,355 (55,788) (51,170) (74,394) (34,548) (35,959)

Financing Activities:
Net Change In:
Deposits: 31,415 82,105 113,512 177,331 (107,700) $ (28,506) $ 22,300 $ 63,588 $ 37,663 $ 44,043
Fed Funds Purchased: (1,862) 36,248 (7,833) 15,250 67,785 23,646 6,784 - 26,908 40,080
Comm. Paper & Borr. Funds 2,618 12,657 41,412 9,186 (76,727) 94 (5,531) (6,214) (8,377) (4,778)
Beneficial Interests: - - 1,070 (2,675) (7,275) - - - - -
Long-Term Debt Issuances: 43,721 56,721 95,141 72,407 51,324 3,001 (111) (356) (5,332) (4,931)
Long-Term Debt Repayment: (26,883) (34,267) (49,410) (62,691) (55,713) - - - - -
Common Stock Issuances: 682 1,659 - 11,500 5,756 3,919 3,919 3,919 3,919 3,919
Excess Tax Benefits: - 302 365 148 17 - - - - -
TARP Preferred Stock: - - - 25,000 - - - - - -
Preferred Stock: - - - 7,746 - - - - - -
Preferred Redemption: (200) (139) - - (25,000) - - - - -
Stock Repurchased: (3,412) (3,938) (8,178) - - (5,000) (22,600) (13,900) (10,000) (10,000)
Dividends Paid: (4,878) (4,846) (5,051) (5,911) (3,422) (2,960) (3,886) (6,764) (8,447) (10,096)
Other Financing, Net: 3,868 6,247 3,028 540 (1,224) - - - - -
Net Cash Flow from Financing: 45,069 152,749 184,056 247,831 (152,179) (5,805) 876 40,274 36,333 58,238

Exchange Rate Effect: (387) 199 424 (507) 238 - - - - -

Net Incr. / (Decr.) in Cash: $ 1,502 $ 3,742 $ (268) $ (13,249) $ (689) $ 1,090 $ 5,330 $ 7,204 $ 6,674 $ 7,369

Ending Cash on Balance Sheet: 36,670 40,412 40,144 26,895 26,206 27,296 32,626 39,830 46,504 53,873
Beginning Cash Balance: 35,168 36,670 40,412 40,144 26,895 26,206 27,296 32,626 39,830 46,504
Ending Cash Balance: $ 36,670 $ 40,412 $ 40,144 $ 26,895 $ 26,206 $ 27,296 $ 32,626 $ 39,830 $ 46,504 $ 53,873
JPMorgan Chase & Co. - Cash Flow Statement Drivers
($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

D&A % Revenue: 5.3% 3.5% 3.4% 4.7% 2.8% 3.9% 3.9% 3.9% 3.9% 3.9%
CapEx % Revenue: N/A N/A N/A N/A N/A 3.9% 3.9% 3.9% 3.9% 3.9%
SBC % Revenue: 2.9% 3.9% 2.8% 3.9% 3.3% 3.4% 3.4% 3.4% 3.4% 3.4%
Stock Issuances: 682 1,659 - 11,500 5,756 3,919 3,919 3,919 3,919 3,919

JPMorgan Chase & Co. - Dividends and Stock Repurchases / Issuances

($ in Millions)
Historical Projected
December 30, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pre-Dividend and Stock Repurchase Tier 1 Common: $ 126,090 $ 145,560 $ 148,672 $ 159,949 $ 174,912
Risk-Weighted Assets: 1,243,930 1,254,003 1,363,976 1,491,322 1,640,884
Minimum Tier 1 Common Required: 111,954 112,860 122,758 134,219 147,680
Capital Available for Dividends & Stock Repurchases: 14,137 32,700 25,914 25,730 27,232

Basic EPS: $ 2.36 $ 3.93 $ 4.38 $ 0.81 $ 2.25 $ 3.71 $ 4.84 $ 5.87 $ 6.80 $ 7.46
Dividends Per Share: $ 1.36 $ 1.36 $ 1.48 $ 1.52 $ 0.20 $ 0.33 $ 0.58 $ 1.47 $ 2.04 $ 2.61
Dividend Payout Ratio: 57.6% 34.6% 33.8% 187.6% 8.9% 9.0% 12.0% 25.0% 30.0% 35.0%
Common Dividends: 4,865 4,842 4,610 5,048 468 1,312 2,158 5,036 6,719 8,368
Allowed Dividends: 1,312 2,158 5,036 6,719 8,368

Capital Available for Stock Repurchases: 12,825 30,542 20,879 19,011 18,864
Stock Repurchases / Planned: 3,412 3,938 8,178 - - 5,000 22,600 13,900 10,000 10,000
Allowed Stock Repurchases: 5,000 22,600 13,900 10,000 10,000

Stock Repurchases & Issuances:

Ending Basic Shares: 3,942 3,916 3,521 3,343 3,248 3,161
Average Basic Shares: 3,492 3,470 3,404 3,501 3,863 3,929 3,719 3,432 3,296 3,205
Diluted EPS: $ 2.32 $ 3.82 $ 4.33 $ 0.81 $ 2.24 $ 3.51 $ 4.55 $ 5.44 $ 6.23 $ 6.80
Trailing P/E Multiple: 17.1 x 12.7 x 10.1 x 39.2 x 18.6 x 12.0 x 11.5 x 11.0 x 11.0 x 10.5 x
Actual or Implied Stock Price: $ 39.69 $ 48.30 $ 43.65 $ 31.53 $ 41.67 $ 42.14 $ 52.38 $ 59.85 $ 68.56 $ 71.36

Stock Repurchases: (3,412) (3,938) (8,178) - - (5,000) (22,600) (13,900) (10,000) (10,000)
Stock Issuances: 682 1,659 - 11,500 5,756 3,919 3,919 3,919 3,919 3,919

# Shares Repurchased: (119.3) (478.2) (247.7) (155.8) (142.9)

# Shares Issued: 93.5 82.9 69.8 61.0 56.0
Net Change in Basic Shares: (25.8) (395.3) (177.9) (94.7) (86.9)

Diluted Shares:
Dilution from Options: - 8.1 48.9 76.3 91.9
RSU Outstanding: 221.3 221.3 221.3 221.3 221.3
Avg. Diluted Shares Outstanding: 4,150 3,948 3,702 3,593 3,518
 Public Company Comparables

2009 P / E:

2010E P / E:

2011E P / E:

2009 P / TBV:

2010E P / TBV:

2011E P / TBV:
Residual Income Analysis

8-12% Discount Rate, 8-12% ROE

Dividend Discount Analysis

8-12% Discount Rate, 1.1x-1.9x P / TBV Multiple:

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00

Min. 25th Median 75th

8-12% Discount Rate, 1.1x-1.9x P / TBV Multiple: $ 44.44 $ 44.44 $ 44.44 $ 44.44

8-12% Discount Rate, 8-12% ROE $ 38.69 $ 38.69 $ 38.69 $ 38.69

2011E P / TBV: $ 24.13 $ 29.38 $ 34.63 $ 41.33

2010E P / TBV: $ 24.01 $ 28.98 $ 33.94 $ 43.11
2009 P / TBV: $ 21.09 $ 27.80 $ 34.51 $ 41.23
2011E P / E: $ 32.87 $ 34.82 $ 36.77 $ 37.13
2010E P / E: $ 29.81 $ 35.73 $ 41.65 $ 42.27
2009 P / E: $ 32.58 $ 33.58 $ 34.58 $ 35.58

Tangible Book Values Per Share:

2009 2010 2011
$ 26.44 $ 30.83 $ 34.63

EPS:
2009 2010 2011
$ 2.24 $ 3.51 $ 4.55
 Min to 25th
25th to Median
Median to 75th
75th to Max

$40.00 $50.00 $60.00

Max Min Point 25 Point Med Point 75 Point Max Point

$ 44.44 $ 44.44 $ - $ - $ - $ -

$ 38.69 $ 38.69 $ - $ - $ - $ -

$ 48.03 $ 24.13 $ 5.25 $ 5.25 $ 6.70 $ 6.70

$ 52.27 $ 24.01 $ 4.97 $ 4.97 $ 9.16 $ 9.16
$ 47.96 $ 21.09 $ 6.71 $ 6.71 $ 6.73 $ 6.73
$ 37.48 $ 32.87 $ 1.95 $ 1.95 $ 0.36 $ 0.36
$ 42.89 $ 29.81 $ 5.92 $ 5.92 $ 0.62 $ 0.62
$ 36.58 $ 32.58 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Comparable Companies - US-Based Diversified Commercial Banks with Over $1 Trillion in Assets
($ in Millions Except Per Share Amounts)

Operating Statistics Capitalization & Assets Earnings Per Share (EPS)(3)

Share Equity Tangible Total Actual
Company Name Price(1) Value Book Value(2) Assets 2009
Citigroup Inc. $ 3.31 $ 94,258 $ 118,282 $ 1,856,646 $ (0.76)
Bank of America Corporation 15.06 151,082 95,896 2,223,299 (0.40)
Wells Fargo & Company 26.99 139,828 78,489 1,243,646 1.75

Maximum $ 26.99 $ 151,082 $ 118,282 $ 2,223,299 $ 1.75

75th Percentile 21.03 145,455 107,089 2,039,973 0.68
Median $ 15.06 $ 139,828 $ 95,896 $ 1,856,646 $ (0.40)
25th Percentile 9.19 117,043 87,193 1,550,146 (0.58)
Minimum 3.31 94,258 78,489 1,243,646 (0.76)

JPMorgan Chase & Co. $ 41.67 $ 174,775 $ 104,235 $ 2,031,989 $ 2.24

Valuation Statistics Capitalization & Assets Price / EPS(3)

Share Equity Tangible Total Actual
Company Name Price(1)
Value Book Value (2)
Assets 2009
Citigroup Inc. $ 3.31 $ 94,258 $ 118,282 $ 1,856,646 NM
Bank of America Corporation 15.06 151,082 95,896 2,223,299 NM
Wells Fargo & Company 26.99 139,828 78,489 1,243,646 15.4 x

Maximum $ 26.99 $ 151,082 $ 118,282 $ 2,223,299 15.4 x

75th Percentile 21.03 145,455 107,089 2,039,973 15.4 x
Median $ 15.06 $ 139,828 $ 95,896 $ 1,856,646 15.4 x
25th Percentile 9.19 117,043 87,193 1,550,146 15.4 x
Minimum 3.31 94,258 78,489 1,243,646 15.4 x

JPMorgan Chase & Co. $ 41.67 $ 174,775 $ 104,235 $ 2,031,989 18.6 x

(1) Share Prices as of December 31, 2009.

(2) Tangible Book Value excludes Preferred Stock, Non-Controlling Interests, Goodwill, and non-MSR Intangible Assets.
(3) EPS excludes discontinued operations and other one-time charges.
(4) Tangible Equity excludes Preferred Stock, Non-Controlling Interests, Goodwill, and non-MSR Intangible Assets.
 Earnings Per Share (EPS)(3) Tangible BV Per Share(2) Return on Tangible Equity(4)
Projected Actual Projected Actual Projected
2010 2011 2009 2010 2011 2009 2010 2011
$ 0.39 $ 0.41 $ 4.15 $ 4.25 $ 4.75 (15.3%) 9.3% 9.1%
1.27 1.83 11.54 13.68 15.06 (3.5%) 10.7% 14.4%
2.21 3.74 14.88 15.92 19.46 11.8% 13.9% 19.2%

$ 2.21 $ 3.74 $ 14.88 $ 15.92 $ 19.46 11.8% 13.9% 19.2%

1.74 2.79 13.21 14.80 17.26 4.2% 12.3% 16.8%
$ 1.27 $ 1.83 $ 11.54 $ 13.68 $ 15.06 (3.5%) 10.7% 14.4%
0.83 1.12 7.85 8.97 9.91 (9.4%) 10.0% 11.8%
0.39 0.41 4.15 4.25 4.75 (15.3%) 9.3% 9.1%

$ 3.51 $ 4.55 $ 26.44 $ 30.83 $ 34.63 9.3% 13.0% 14.9%

Price / EPS(3) Price / Tangible BV Per Share(2)

Projected Actual Projected
2010 2011 2009 2010 2011
8.5 x 8.1 x 0.8 x 0.8 x 0.7 x
11.9 x 8.2 x 1.3 x 1.1 x 1.0 x
12.2 x 7.2 x 1.8 x 1.7 x 1.4 x

12.2 x 8.2 x 1.8 x 1.7 x 1.4 x

12.0 x 8.2 x 1.6 x 1.4 x 1.2 x
11.9 x 8.1 x 1.3 x 1.1 x 1.0 x
10.2 x 7.6 x 1.1 x 0.9 x 0.8 x
8.5 x 7.2 x 0.8 x 0.8 x 0.7 x

11.9 x 9.1 x 1.6 x 1.4 x 1.2 x

and non-MSR Intangible Assets.

non-MSR Intangible Assets.

Diversified Commercial Bank Transactions Worth Over $1 Billion Equity Value with US-Based Sellers Since 1/1/2008
($ in Millions, Except Per Share Amounts)

JPMorgan Chase & Co. - Comparable M&A Transactions

Purchase
Equity
Acquirer Name Target Name Date Value
Bank of America Corporation Merrill Lynch & Co Inc. 9/15/2008 $ 48,766
Wells Fargo & Company Wachovia Corporation 10/3/2008 15,112
PNC Financial Services Group, Inc. National City Corporation 10/24/2008 5,618
Bank of America Corporation Countrywide Financial Corporation 1/11/2008 4,144
JPMorgan Chase & Co. The Bear Stearns Companies, Inc. 3/16/2008 1,181

Maximum $ 48,766
75th Percentile 15,112
Median $ 5,618
25th Percentile 4,144
Minimum 1,181

(1) Tangible Book Value excludes Preferred Stock, Non-Controlling Interests, Goodwill, and non-MSR Intangible Assets.
(2) EPS excludes discontinued operations and other one-time charges.
ed Sellers Since 1/1/2008

Operating Metrics Valuation Multiples

Tangible
Total Book Trailing Trailing Trailing Trailing
Assets Value (1)
EPS (2)
TBVPS (1)
P/E (2)
P / TBV(1)
$ 966,210 $ 16,054 $ (22.57) $ 16.83 NM 3.0 x
812,443 26,367 (3.67) 13.20 NM 0.6 x
153,673 13,642 (3.44) 20.94 NM 0.4 x
209,236 15,252 (0.23) 26.20 NM 0.3 x
395,362 10,489 1.52 71.63 5.3 x 0.1 x

$ 966,210 $ 26,367 $ 1.52 $ 71.63 5.3 x 3.0 x

812,443 16,054 (0.23) 26.20 5.3 x 0.6 x
$ 395,362 $ 15,252 $ (3.44) $ 20.94 5.3 x 0.4 x
209,236 13,642 (3.67) 16.83 5.3 x 0.3 x
153,673 10,489 (22.57) 13.20 5.3 x 0.1 x

on-MSR Intangible Assets.

JPMorgan Chase & Co. - Dividend Discount Model
($ in Millions Except Per Share Data)
Historical Projected
December 30, 2009 2010 2011 2012
Normalized Net Income to Common: $ 8,698 $ 16,630 $ 18,166 $ 19,619
% Growth: 206.7% 91.2% 9.2% 8.0%
Common Dividends: 468 6,698 11,650 12,285
% Growth: (90.7%) 1331.1% 73.9% 5.4%
Payout Ratio: 5.4% 40.3% 64.1% 62.6%

Beginning Common Equity: $ 134,945 $ 157,213 $ 169,484 $ 178,165

Plus: Net Income to Common: 16,630 18,166 19,619
Plus: Stock Issuances: 3,919 3,919 3,919
Plus: Stock-Based Comp.: 3,419 3,246 3,240
Plus: Exchange Rate Effect: - - -
Less: Stock Repurchases: (5,000) (5,000) (5,000)
Less: Common Dividends: (6,698) (11,650) (12,285)
Ending Common Equity: $ 157,213 $ 169,484 $ 178,165 $ 187,658

Avg. Risk-Weighted Assets: 1,198,006 1,293,846 1,397,354 1,509,143

% Growth: (3.7%) 8.0% 8.0% 8.0%

Tier 1 Common Ratio: 8.8% 9.0% 9.0% 9.0%

Return on Tangible Common Equity: 9.3% 15.0% 15.0% 15.0%

Tangible Common Equity / Tier 1 Common Capital Calculation:

Ending Common Equity: $ 157,213 $ 169,484 $ 178,165 $ 187,658
Less: Disallowed Intangibles: (52,004) (53,037) (52,403) (51,835)
Plus: Other Adjustments: 75 - - -
Total Tier 1 Common Capital: $ 105,284 $ 116,446 $ 125,762 $ 135,823

Discount Period: 0.0 1.0 2.0 3.0

Mid-Year Discount Period: 0.5 1.5 2.5
PV of Dividends: $ 6,383 $ 10,083 $ 9,656

JPMorgan Chase & Co. - Net Present Value Sensitivity - Terminal Growth Rates
Cost of Equity
$ 44.44 8.0% 9.0% 10.0% 11.0% 12.0%
7.0% $ 44.44 $ 44.44 $ 44.44 $ 44.44 $ 44.44
Terminal Earnings

6.0% 44.44 44.44 44.44 44.44 44.44

Growth Rate

5.0% 44.44 44.44 44.44 44.44 44.44

4.0% 44.44 44.44 44.44 44.44 44.44
3.0% 44.44 44.44 44.44 44.44 44.44
2.0% 44.44 44.44 44.44 44.44 44.44
 Growth R
Terminal Ea
1.0% 44.44 44.44 44.44 44.44 44.44

JPMorgan Chase & Co. - Net Present Value Sensitivity - Terminal P / TBV Multiples
Cost of Equity
$ 44.44 8.0% 9.0% 10.0% 11.0% 12.0%
2.1 x $ 44.44 $ 44.44 $ 44.44 $ 44.44 $ 44.44
Terminal P / TBV

1.9 x 44.44 44.44 44.44 44.44 44.44

1.7 x 44.44 44.44 44.44 44.44 44.44
Multiple

1.5 x 44.44 44.44 44.44 44.44 44.44

1.3 x 44.44 44.44 44.44 44.44 44.44
1.1 x 44.44 44.44 44.44 44.44 44.44
0.9 x 44.44 44.44 44.44 44.44 44.44
 DDM Assumptions

Projected Use Multiples Method? Yes

2013 2014 Mid-Year Convention: 0.50
$ 18,275 $ 19,554 Maturity Year Begins: 2013
(6.9%) 7.0%
11,583 12,153 Minimum Tier 1 Common Ratio: 9.0%
(5.7%) 4.9% Terminal Earnings Growth Rate: 4.9%
63.4% 62.2% Annual Stock Repurchases: $ 5,000

$ 187,658 $ 196,669 Return on Tangible Common Equity:

18,275 19,554 Development: 15.0%
3,919 3,919 Maturity: 13.0%
3,400 3,517
- - Risk-Weighted Assets Growth:
(5,000) (5,000) Development: 8.0%
(11,583) (12,153) Maturity: 7.0%
$ 196,669 $ 206,506
Cost of Equity: 10.11%
1,614,783 1,727,817
7.0% 7.0% Terminal Value:
Sum of PV of Dividends: $ 42,270
9.0% 9.0%
13.0% 13.0% Terminal P / TBV: 1.50 x
Terminal Value (Growth): 245,703
Terminal Value (Multiple): 233,255
$ 196,669 $ 206,506 PV of Terminal Value: 144,111
(51,338) (51,002)
- - Present Value of Equity: $ 186,381
$ 145,330 $ 155,504
Diluted Shares: 4,194.3
4.0 5.0 Implied Share Price: $ 44.44
3.5 4.5
$ 8,269 $ 7,879 Options: 266.6 $ 45.83 -

13.0% 14.0%
$ 44.44 $ 44.44
44.44 44.44
44.44 44.44
44.44 44.44
44.44 44.44
44.44 44.44
 44.44 44.44

13.0% 14.0%
$ 44.44 $ 44.44
44.44 44.44
44.44 44.44
44.44 44.44
44.44 44.44
44.44 44.44
44.44 44.44
Discount Rate Calculation - Assumptions
10-Year US Treasury (Risk-Free Rate): 4.41%
Equity Risk Premium: 5.00%

Comparable Companies - Levered Beta Calculation

Equity Levered
Name Value Beta
Citigroup Inc. $ 94,258 2.64
Bank of America Corporation 151,082 2.27
Wells Fargo & Company 139,828 1.35

Median $ 139,828 2.27

JPMorgan Chase & Co. $ 174,775 1.14

Cost of Equity Based on Comparables: 15.76%

Cost of Equity Based on Historical Beta: 10.11%
JPMorgan Chase & Co. - Residual Income Model
($ in Millions Except Per Share Data)
Historical Projected
December 30, 2009 2010 2011 2012
Normalized Net Income to Common: $ 8,698 $ 17,968 $ 19,121 $ 20,120
% Growth: 206.7% 106.6% 6.4% 5.2%
Common Dividends: 468 8,036 12,605 12,786
% Growth: (90.7%) 1617.1% 56.9% 1.4%
Payout Ratio: 5.4% 44.7% 65.9% 63.5%

Beginning Common Equity: $ 134,945 $ 157,213 $ 169,484 $ 178,165

Plus: Net Income to Common: 17,968 19,121 20,120
Plus: Stock Issuances: 3,919 3,919 3,919
Plus: Stock-Based Comp.: 3,419 3,246 3,240
Plus: Exchange Rate Effect: - - -
Less: Stock Repurchases: (5,000) (5,000) (5,000)
Less: Common Dividends: (8,036) (12,605) (12,786)
Ending Common Equity: $ 157,213 $ 169,484 $ 178,165 $ 187,658

Avg. Risk-Weighted Assets: 1,198,006 1,293,846 1,397,354 1,509,143

% Growth: (3.7%) 8.0% 8.0% 8.0%

Tier 1 Common Ratio: 8.8% 9.0% 9.0% 9.0%

Return on Common Equity: 9.3% 11.0% 11.0% 11.0%

Tier 1 Common Capital Calculation:

Ending Common Equity: $ 157,213 $ 169,484 $ 178,165 $ 187,658
Less: Disallowed Intangibles: (52,004) (53,037) (52,403) (51,835)
Plus: Other Adjustments: 75 - - -
Total Tier 1 Common Capital: $ 105,284 $ 116,446 $ 125,762 $ 135,823

Residual Income / Excess Returns: $ 1,454 $ 1,547 $ 1,628

Discount Period: 0.0 1.0 2.0 3.0

Mid-Year Discount Period: 0.5 1.5 2.5
PV of Residual Income: $ 1,385 $ 1,339 $ 1,280

JPMorgan Chase & Co. - Net Present Value Sensitivity - Long-Term Return on Common Equity
Cost of Equity
$ 38.69 7.0% 8.0% 9.0% 10.0% 11.0%
13.0% $ 38.69 $ 38.69 $ 38.69 $ 38.69 $ 38.69
Long-Term Return on

12.0% 38.69 38.69 38.69 38.69 38.69

Common Equity

11.0% 38.69 38.69 38.69 38.69 38.69

10.0% 38.69 38.69 38.69 38.69 38.69
Long-Term Return o
Common Equity
9.0% 38.69 38.69 38.69 38.69 38.69
8.0% 38.69 38.69 38.69 38.69 38.69
7.0% 38.69 38.69 38.69 38.69 38.69
 Residual Income Assumptions

Projected
2013 2014 Mid-Year Convention: 0.50
$ 20,177 $ 21,167 Maturity Year Begins: 2013
0.3% 4.9%
13,486 13,766 Minimum Tier 1 Common Ratio: 9.0%
5.5% 2.1% Annual Stock Repurchases: $ 5,000
66.8% 65.0%
Return on Common Equity:
$ 187,658 $ 196,669 Development: 11.0%
20,177 21,167 Maturity: 10.5%
3,919 3,919 Long-Term: 10.1%
3,400 3,517
- - Risk-Weighted Assets Growth:
(5,000) (5,000) Development: 8.0%
(13,486) (13,766) Maturity: 7.0%
$ 196,669 $ 206,506
Cost of Equity: 10.11%
1,614,783 1,727,817
7.0% 7.0% Present Value of Equity Calculations:
Current Value of Common Equity: $ 157,213
9.0% 9.0% Sum of PV of Residual Income: 5,049
10.5% 10.5%
Terminal NI Growth Rate: 3.0%
Estimated Year 6 NI to Common: 20,878
$ 196,669 $ 206,506 Residual Income Terminal Value: -
(51,338) (51,002) PV of Res. Inc. Terminal Value: -
- -
$ 145,330 $ 155,504 Present Value of Equity: $ 162,262

$ 749 $ 786
Diluted Shares: 4,194.3
4.0 5.0 Implied Share Price: $ 38.69
3.5 4.5
$ 535 $ 510 Options: 266.6 $ 45.83 -

12.0% 13.0%
$ 38.69 $ 38.69
38.69 38.69
38.69 38.69
38.69 38.69
38.69 38.69
38.69 38.69
38.69 38.69