JP Morgan Chase 2005 Annual Report Download - page 73

JPMorgan Chase & Co. /2005 Annual Report 71
Consumer credit portfolio
JPMorgan Chase’s consumer portfolio consists primarily of residential mortgages
and home equity loans, credit cards, auto and education financings and loans
to small businesses. The domestic consumer portfolio reflects the
benefit of diversification from both a product and a geographical perspective.
The primary focus is on serving the prime consumer credit market.
The following table presents managed consumer credit–related information for the dates indicated:
Consumer portfolio
Credit Nonperforming Average annual
As of or for the year ended December 31, exposure assets(g) Net charge-offs net charge-off rate(i)
(in millions, except ratios) 2005 2004 2005 2004 2005 2004(f) 2005 2004(f)
Consumer real estate
Home finance – Home equity and other(a) $ 76,727 $ 67,837 $ 422 $ 416 $ 129 $ 554 0.18% 1.18%
Home finance – Mortgage 56,726 56,816 441 257 25 19 0.05 0.05
Total Home finance(a) 133,453 124,653 863(h) 673(h) 154 573 0.13 0.65
Auto & education finance(b) 49,047 62,712 195 193 277 263 0.54 0.52
Consumer & small business and other 14,799 15,107 280 295 141 154 0.98 1.64
Credit card receivables – reported(c) 71,738 64,575 13 83,324 1,923 4.94 4.95
Total consumer loans – reported 269,037 267,047 1,351 1,169 3,896 2,913 1.56 1.56
Credit card securitizations(c)(d) 70,527 70,795 ——3,776 2,898 5.47 5.51
Total consumer loans – managed(c) 339,564 337,842 1,351 1,169 7,672 5,811 2.41 2.43
Assets acquired in loan satisfactions NA NA 180 224 NA NA NA NA
Total consumer related assets – managed 339,564 337,842 1,531 1,393 7,672 5,811 2.41 2.43
Consumer lending–related commitments:
Home finance 65,106 53,223 NA NA NA NA NA NA
Auto & education finance 5,732 5,193 NA NA NA NA NA NA
Consumer & small business and other 5,437 10,312 NA NA NA NA NA NA
Credit card(e) 579,321 532,468 NA NA NA NA NA NA
Total lending-related commitments 655,596 601,196 NA NA NA NA NA NA
Total consumer credit portfolio $ 995,160 $ 939,038 $1,531 $ 1,393 $7,672 $ 5,811 2.41% 2.43%
Total average HFS loans $ 15,675 $ 14,736(f) NA NA NA NA NA NA
Memo: Credit card – managed 142,265 135,370 $13 $8$ 7,100 $4,821 5.21% 5.27%
(a) Includes $406 million of charge-offs related to the manufactured home loan portfolio in the fourth quarter of 2004.
(b) Excludes operating lease-related assets of $858 million for December 31, 2005. Balances at December 31, 2004, were insignificant.
(c) Past-due loans 90 days and over and accruing includes credit card receivables of $1.1 billion and $998 million, and related credit card securitizations of $730 million and $1.3 billion at
December 31, 2005 and 2004, respectively.
(d) Represents securitized credit cards. For a further discussion of credit card securitizations, see Card Services on pages 45–46 of this Annual Report.
(e) The credit card lending-related commitments represent the total available credit to the Firm’s cardholders. The Firm has not experienced, and does not anticipate, that all of its cardholders will
exercise their entire available line of credit at any given point in time. The Firm can reduce or cancel a credit card commitment by providing the cardholder prior notice or without notice as
permitted by law.
(f) Includes six months of the combined Firm’s results and six months of heritage JPMorgan Chase results.
(g) Includes nonperforming HFS loans of $27 million and $13 million at December 31, 2005 and 2004, respectively.
(h) Excludes nonperforming assets related to loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by government agencies of $1.1 billion and $1.5 billion for
December 31, 2005, and December 31, 2004, respectively. These amounts are excluded, as reimbursement is proceeding normally.
(i) Net charge-off rates exclude average loans HFS.