JP Morgan Chase 2009 Annual Report Download - page 117

JPMorgan Chase & Co./2009 Annual Report 115
The following table presents managed consumer credit–related information (including RFS, CS and residential real estate loans reported in the
Corporate/Private Equity segment) for the dates indicated. For further information about the Firm’s nonaccrual and charge-off accounting policies,
see Note 13 on pages 200–204 of this Annual Report.
Consumer portfolio
As of or for the year ended
December 31, Credit exposure
Nonperforming
loans(i)(j)
90 days or more
past due and
still accruing(j) Net charge-offs
Average annual
net charge-off rate(k)
(in millions, except ratios) 2009 2008 2009
2008
2009 2008 2009 2008 2009 2008
Consumer loans – excluding
purchased credit-impaired
loans and loans held-for-sale
Home equity – senior lien(a) $ 27,376 $ 29,793 $ 477 $
291
$ — $ — $ 234 $ 86 0.80% 0.33%
Home equity – junior lien(b) 74,049 84,542 1,188
1,103
—— 4,448 2,305 5.62 3.12
Prime mortgage 66,892 72,266 4,355
1,895
—— 1,894 526 2.74 1.02
Subprime mortgage 12,526 15,330 3,248
2,690
—— 1,648 933 11.86 6.10
Option ARMs 8,536 9,018 312
10
—— 63 —0.71 —
Auto loans(c) 46,031 42,603 177
148
— — 627 568 1.44 1.30
Credit card – reported(d)(e) 78,786 104,746 3
4
3,481 2,649 9,634 4,556 11.07 5.47
All other loans 31,700 33,715 900
430
542 463 1,285 459 3.88 1.58
Total consumer loans 345,896 392,013 10,660
6,571
4,023 3,112 19,833 9,433 5.45 2.90
Consumer loans – purchased
credit-impaired(f)
Home equity 26,520 28,555 NA
NA
NA NA NA NA NA NA
Prime mortgage 19,693 21,855 NA
NA
NA NA NA NA NA NA
Subprime mortgage 5,993 6,760 NA
NA
NA NA NA NA NA NA
Option ARMs 29,039 31,643 NA
NA
NA NA NA NA NA NA
Total consumer loans – pur-
chased credit-impaired 81,245 88,813 NA
NA
NA NA NA NA NA NA
Total consumer loans –
retained 427,141 480,826 10,660
6,571
4,023 3,112 19,833 9,433 4.41 2.71
Loans held-for-sale 2,142 2,028 —
—
—— ——— —
Total consumer loans –
reported 429,283 482,854 10,660
6,571
4,023 3,112 19,833 9,433 4.41 2.71
Credit card – securitized(g) 84,626 85,571 —
—
2,385 1,802 6,443 3,612 7.55 4.53
Total consumer loans –
managed 513,909 568,425 10,660
6,571
6,408 4,914 26,276 13,045 4.91 3.06
Total consumer loans –
managed – excluding
purchased credit-impaired
loans(f) 432,664 479,612 10,660
6,571
6,408 4,914 26,276 13,045 5.85 3.22
Consumer lending-related
commitments:
Home equity – senior lien(a)(h) 19,246 27,998
Home equity – junior lien(b)(h) 37,231 67,745
Prime mortgage 1,654 5,079
Subprime mortgage ——
Option ARMs ——
Auto loans 5,467 4,726
Credit card(h) 569,113 623,702
All other loans 11,229 12,257
Total lending-related
commitments 643,940 741,507
Total consumer credit
portfolio $1,157,849 $1,309,932
Memo: Credit card – managed $ 163,412 $ 190,317 $ 3 $
4
$ 5,866 $ 4,451 $ 16,077 $ 8,168 9.33% 5.01%
(a) Represents loans where JPMorgan Chase holds the first security interest on the property.
(b) Represents loans where JPMorgan Chase holds a security interest that is subordinate in rank to other liens.
(c) Excludes operating lease-related assets of $2.9 billion and $2.2 billion for December 31, 2009 and 2008, respectively.
(d) Includes $1.0 billion of loans at December 31, 2009, held by the Washington Mutual Master Trust, which were consolidated onto the Firm’s Consolidated Balance Sheets at
fair value during the second quarter of 2009.
(e) Includes billed finance charges and fees net of an allowance for uncollectible amounts.
(f) Charge-offs are not recorded on purchased credit-impaired loans until actual losses exceed estimated losses that were recorded as purchase accounting adjustments at the
time of acquisition. To date, no charge-offs have been recorded for these loans. If charge-offs were reported comparable to the non-credit impaired portfolio, life-to-date
principal charge-offs would have been $16.7 billion.
(g) Represents securitized credit card receivables. For a further discussion of credit card securitizations, see CS on pages 72–74 of this Annual Report.