JP Morgan Chase 2008 Annual Report Download - page 67

JPMorgan Chase & Co./ 2008 Annual Report 65
Selected metrics
Year ended December 31,
(in millions, except headcount, ratios
and where otherwise noted) 2008 2007 2006
Financial metrics
% of average managed outstandings:
Net interest income 8.45% 8.16% 8.36%
Provision for credit losses 6.18 3.82 3.26
Noninterest revenue 1.67 2.04 2.09
Risk adjusted margin(a) 3.94 6.38 7.19
Noninterest expense 3.16 3.29 3.60
Pretax income (ROO)(b) 0.78 3.09 3.59
Net income 0.48 1.95 2.27
Business metrics
Charge volume (in billions) $ 368.9 $ 354.6 $ 339.6
Net accounts opened (in millions)(c) 27.9 16.4 45.9
Credit cards issued (in millions) 168.7 155.0 154.4
Number of registered Internet
customers (in millions) 35.6 28.3 22.5
Merchant acquiring business(d)
Bank card volume (in billions) $ 713.9 $ 719.1 $ 660.6
Total transactions (in billions) 21.4 19.7 18.2
Selected balance sheet data
(period-end)
Loans:
Loans on balance sheets $ 104,746 $ 84,352 $ 85,881
Securitized loans 85,571 72,701 66,950
Managed loans $ 190,317 $ 157,053 $152,831
Equity $ 15,000 $ 14,100 $ 14,100
Selected balance sheet data
(average)
Managed assets $ 173,711 $ 155,957 $148,153
Loans:
Loans on balance sheets $ 83,293 $ 79,980 $ 73,740
Securitized loans 79,566 69,338 67,367
Managed average loans $ 162,859 $ 149,318 $141,107
Equity $ 14,326 $ 14,100 $ 14,100
Headcount 24,025 18,554 18,639
Managed credit quality
statistics
Net charge-offs $ 8,159 $ 5,496 $ 4,698
Net charge-off rate(e) 5.01% 3.68% 3.33%
Managed delinquency ratios
30+ day(e) 4.97% 3.48% 3.13%
90+ day(e) 2.34 1.65 1.50
Allowance for loan losses(f)(i) $ 7,692 $ 3,407 $ 3,176
Allowance for loan losses to
period-end loans(f) 7.34% 4.04% 3.70%
Key stats – Washington Mutual only(g)
Managed loans $ 28,250
Managed average loans 6,964
Net interest income(h) 14.87%
Risk adjusted margin(a)(h) 4.18
Net charge-off rate(e) 7.11
30+ day delinquency rate(e) 8.50
90+ day delinquency rate(e) 3.75
Year ended December 31,
(in millions, except headcount, ratios
and where otherwise noted) 2008 2007 2006
Key stats – excluding Washington Mutual
Managed loans $162,067 $ 157,053 $152,831
Managed average loans 155,895 149,318 141,107
Net interest income(h) 8.16% 8.16% 8.36%
Risk adjusted margin(a)(h) 3.93 6.38 7.19
Net charge-off rate 4.92 3.68 3.33
30+ day delinquency rate 4.36 3.48 3.13
90+ day delinquency rate 2.09 1.65 1.50
(a) Represents total net revenue less provision for credit losses.
(b) Pretax return on average managed outstandings.
(c) Results for 2008 included approximately 13 million credit card accounts acquired in
the Washington Mutual transaction. Results for 2006 included approximately 30
million accounts from loan portfolio acquisitions.
(d) The Chase Paymentech Solutions joint venture was dissolved effective November 1,
2008. For the period January 1, 2008 through October 31, 2008, the data present-
ed represent activity for the Chase Paymentech Solutions joint venture and for the
period November 1, 2008 through December 31, 2008, the data presented repre-
sent activity for Chase Paymentech Solutions.
(e) Results for 2008 reflect the impact of purchase accounting adjustments related to
the Washington Mutual transaction.
(f) Based on loans on a reported basis.
(g) Statistics are only presented for periods after September 25, 2008, the date of the
Washington Mutual transaction.
(h) As a percentage of average managed outstandings.
(i) The 2008 allowance for loan losses included an amount related to loans acquired in
the Washington Mutual transaction.
The financial information presented below reconciles reported basis
and managed basis to disclose the effect of securitizations.
Year ended December 31,
(in millions) 2008 2007 2006
Income statement data(a)
Credit card income
Reported $ 6,082 $ 5,940 $ 6,096
Securitization adjustments (3,314) (3,255) (3,509)
Managed credit card income $ 2,768 $ 2,685 $ 2,587
Net interest income
Reported $ 6,838 $ 6,554 $ 6,082
Securitization adjustments 6,917 5,635 5,719
Managed net interest income $ 13,755 $ 12,189 $ 11,801
Total net revenue
Reported $ 12,871 $ 12,855 $ 12,535
Securitization adjustments 3,603 2,380 2,210
Managed total net revenue $ 16,474 $ 15,235 $ 14,745
Provision for credit losses
Reported $ 6,456 $ 3,331 $ 2,388
Securitization adjustments 3,603 2,380 2,210
Managed provision for
credit losses $ 10,059 $ 5,711 $ 4,598
Balance sheet – average
balances(a)
Total average assets
Reported $ 96,807 $ 89,177 $ 82,887
Securitization adjustments 76,904 66,780 65,266
Managed average assets $173,711 $155,957 $148,153
Credit quality statistics(a)
Net charge-offs
Reported $ 4,556 $ 3,116 $ 2,488
Securitization adjustments 3,603 2,380 2,210
Managed net charge-offs $ 8,159 $ 5,496 $ 4,698
(a) For a discussion of managed basis, see the non-GAAP financial measures discussion
on pages 50–51 of this Annual Report.