JP Morgan Chase 2008 Annual Report Download - page 73

JPMorgan Chase & Co./ 2008 Annual Report 71
The provision for credit losses was a benefit of $18 million, com-
pared with a benefit of $28 million in the prior year.
Noninterest expense was $5.5 billion, an increase of $937 million, or
20%, from the prior year. The increase was due primarily to higher
performance-based compensation expense and investments in all
business segments.
Selected metrics
Year ended December 31,
(in millions, except headcount, ranking
data, and where otherwise noted) 2008 2007 2006
Business metrics
Number of:
Client advisors 1,705 1,729 1,506
Retirement planning services
participants
1,531,000 1,501,000 1,362,000
Bear Stearns brokers 324 ——
% of customer assets in 4 & 5 Star
Funds(a) 42% 55% 58%
% of AUM in 1st and 2nd quartiles:(b)
1 year 54% 57% 83%
3 years 65% 75% 77%
5 years 76% 76% 79%
Selected balance sheet data
(period-end)
Equity $ 7,000 $ 4,000 $ 3,500
Selected balance sheet data
(average)
Total assets $ 65,550 $ 51,882 $ 43,635
Loans(c) 38,124 29,496 26,507
Deposits 70,179 58,863 50,607
Equity 5,645 3,876 3,500
Headcount 15,339 14,799 13,298
Credit data and quality
statistics
Net charge-offs (recoveries) $11$ (8) $ (19)
Nonperforming loans 147 12 39
Allowance for loan losses 191 112 121
Allowance for lending-related
commitments 576
Net charge-off (recovery) rate 0.03% (0.03)% (0.07)%
Allowance for loan losses to
average loans 0.50 0.38 0.46
Allowance for loan losses to
nonperforming loans 130 933 310
Nonperforming loans to average loans 0.39 0.04 0.15
(a) Derived from following rating services: Morningstar for the United States; Micropal
for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for
Japan.
(b) Derived from following rating services: Lipper for the United States and Taiwan;
Micropal for the United Kingdom, Luxembourg and Hong Kong; and Nomura for
Japan.
(c) Reflects the transfer in 2007 of held-for-investment prime mortgage loans trans-
ferred from AM to Corporate within the Corporate/Private Equity segment.
AM’s client segments comprise the following:
Institutional brings comprehensive global investment services –
including asset management, pension analytics, asset-liability
management and active risk budgeting strategies – to corporate
and public institutions, endowments, foundations, not-for-profit
organizations and governments worldwide.
Retail provides worldwide investment management services and
retirement planning and administration through third-party and
direct distribution of a full range of investment vehicles.
The Private Bank addresses every facet of wealth management
for ultra-high-net-worth individuals and families worldwide,
including investment management, capital markets and risk man-
agement, tax and estate planning, banking, capital raising and
specialty-wealth advisory services.
Private Wealth Management offers high-net-worth individu-
als, families and business owners in the United States compre-
hensive wealth management solutions, including investment
management, capital markets and risk management, tax and
estate planning, banking and specialty-wealth advisory services.
Bear Stearns Brokerage provides investment advice and
wealth management services to high-net-worth individuals,
money managers, and small corporations.
J.P. Morgan Asset Management has established two
measures of its overall performance.
• Percentage of assets under management in funds rated 4 and
5 stars (3 year). Mutual fund rating services rank funds based
on their risk-adjusted performance over various periods. A 5
star rating is the best and represents the top 10% of industry
wide ranked funds. A 4 star rating represents the next 22% of
industry wide ranked funds. The worst rating is a 1 star rating.
• Percentage of assets under management in first- or second-
quartile funds (one, three and five years). Mutual fund rating
services rank funds according to a peer-based performance
system, which measures returns according to specific time
and fund classification (small, mid, multi and large cap).