JP Morgan Chase 2008 Annual Report Download - page 99

Wholesale credit exposure – selected industry concentration
Collateral
held against
December 31, 2008 Credit Investment Noninvestment-grade Net charge-offs/ Credit derivative
(in millions, except ratios) exposure(d) grade Noncriticized Criticized (recoveries) derivative hedges(e) receivables(f)
Exposure by industry(a)
Real estate $ 83,799 68% $ 19,346 $ 7,737 $ 212 $ (2,677) $ (48)
Banks and finance companies 75,577 79 12,953 2,849 28 (5,016) (9,457)
Asset managers 49,256 85 6,418 819 15 (115) (5,303)
Healthcare 38,032 83 6,092 436 2 (5,338) (199)
State and municipal governments 35,954 94 1,278 847 — (677) (134)
Utilities 34,246 83 5,844 114 3 (9,007) (65)
Retail and consumer services 32,714 67 9,546 1,311 (6) (6,120) (1,214)
Consumer products 29,766 65 9,504 792 32 (8,114) (54)
Securities firms and exchanges 25,590 81 4,744 138 — (151) (898)
Oil and gas 24,746 75 5,940 231 15 (6,627) (7)
Insurance 17,744 78 3,138 712 — (5,016) (846)
Technology 17,555 68 5,420 230 — (4,209) (3)
Media 17,254 56 5,994 1,674 26 (4,238) (7)
Central government 15,259 98 276 — — (4,548) (35)
Metals/mining 14,980 61 5,579 262 (7) (3,149) (3)
All other(b) 278,114 77 57,307 7,845 82 (26,449) (1,543)
Subtotal $ 790,586 77% $ 159,379 $25,997 $ 402 $ (91,451) $ (19,816)
Loans held-for-sale and
loans at fair value(c) 13,955
Receivables from customers 16,141
Total $ 820,682
Collateral
held against
December 31, 2007 Credit Investment Noninvestment-grade Net charge-offs/ Credit derivative
(in millions, except ratios) exposure(d) grade Noncriticized Criticized (recoveries) derivative hedges(e) receivables(f)
Exposure by industry(a)
Real estate $ 38,295 54% $ 16,626 $ 1,070 $ 36 $ (2,906) $ (73)
Banks and finance companies 65,288 83 10,385 498 5 (6,368) (1,793)
Asset managers 38,554 90 3,518 212 — (293) (2,148)
Healthcare 30,746 84 4,741 246 — (4,241) (10)
State and municipal governments 31,425 98 591 12 10 (193) (3)
Utilities 28,679 89 3,021 212 1 (6,371) (43)
Retail and consumer services 23,969 68 7,149 550 3 (3,866) (55)
Consumer products 29,941 74 7,492 239 5 (4,710) (13)
Securities firms and exchanges 23,274 87 3,083 1 — (467) (1,321)
Oil and gas 26,082 72 7,166 125 — (4,007) —
Insurance 16,782 93 1,104 17 — (4,277) (1,000)
Technology 18,335 70 5,418 77 1 (3,636) (1)
Media 16,253 58 6,561 303 3 (2,707) (31)
Central government 9,075 99 112 — — (2,536) (7)
Metals/mining 17,714 70 5,119 111 — (2,486) —
All other(b) 298,803 80 52,897 3,165 8 (18,935) (3,326)
Subtotal $ 713,215 80% $ 134,983 $ 6,838 $ 72 $ (67,999) $ (9,824)
Loans held-for-sale and
loans at fair value(c) 23,649
Receivables from customers —
Total $ 736,864
JPMorgan Chase & Co./ 2008 Annual Report 97
Wholesale credit exposure – selected industry concentration
The Firm focuses on the management and diversification of its indus-
try concentrations, with particular attention paid to industries with
actual or potential credit concerns. At December 31, 2008, the top
15 industries to which the Firm is exposed remained largely
unchanged from December 31, 2007. The Firm’s real estate industry
exposure increased from the prior year due to the Washington
Mutual transaction. Customer receivables of $16.1 billion in the
table below represents primarily margin loans to prime and retail
brokerage clients acquired in the Bear Stearns merger. These margin
loans are generally fully collateralized by cash or highly liquid securi-
ties to satisfy daily minimum collateral requirements. For additional
information on industry concentrations, see Note 34 on pages
222–223 of this Annual Report.