JP Morgan Chase 2009 Annual Report Download - page 249

JPMorgan Chase & Co./2009 Annual Report 247
(table continued from previous page)
Treasury &
Securities Services
Asset
Management Corporate/Private Equity Reconciling items(g)(h)
Total
2009 2008 2007 2009 2008 2007 2009 2008 2007 2009 2008 2007 2009 2008 2007
$ 4,747 $ 5,196 $ 4,681 $ 6,372 $ 6,066 $ 7,475 $ 2,771 $ (278) $ 5,056 $ (67) $ 1,883 $ 2,451 $ 49,282 $ 28,473 $ 44,966
2,597 2,938 2,264 1,593 1,518 1,160 3,863 347 (637) (8,267) (7,524) (6,012) 51,152 38,779 26,406
7,344 8,134 6,945 7,965 7,584 8,635 6,634 69 4,419 (8,334) (5,641) (3,561) 100,434 67,252 71,372
55 82 19 188 85 (18) 80 1,981(e)(f) (11) (6,443) (3,612) (2,380) 32,015 20,979 6,864
(121) (121) (121) — — — — — — 121 121 121 — — —
5,278 5,223 4,580 5,473 5,298 5,515 1,895 (28) 1,757 — — — 52,352 43,500 41,703
1,890 2,708 2,225 2,304 2,201 3,138 4,659 (1,884) 2,673 (1,770) (1,908) (1,060) 16,067 2,773 22,805
664 941 828 874 844 1,172 1,705 (535) 788 (1,770) (1,908) (1,060) 4,415 (926) 7,440
1,226 1,767 1,397 1,430 1,357 1,966 2,954 (1,349) 1,885 — — — 11,652 3,699 15,365
— — — — — — 76 1,906 — — — — 76 1,906 —
$ 1,226 $ 1,767 $ 1,397 $ 1,430 $ 1,357 $ 1,966 $ 3,030 $ 557 $ 1,885 $ — $ — $ — $ 11,728 $ 5,605 $ 15,365
$ 5,000 $ 3,751 $ 3,000 $ 7,000 $ 5,645 $ 3,876 $ 52,903 $ 53,034 $ 54,245 $ — $ — $ — $ 145,903 $ 129,116 $ 118,723
35,963 54,563 53,350 60,249 65,550 51,882 575,529 323,227 231,818 (82,233) (76,904) (66,780) 2,024,201 1,791,617 1,455,044
25% 47% 47% 20% 24% 51% NM NM NM NM NM NM 6% 4%(i) 13 %
72 64 66 69 70 64 NM NM NM NM NM NM 52 65 58
(f) In November 2008, the Firm transferred $5.8 billion of higher quality credit card loans from the legacy Chase portfolio to a securitization trust previously established by
Washington Mutual (“the Trust”). As a result of converting higher credit quality Chase-originated on-book receivables to the Trust’s seller’s interest which has a higher overall
loss rate reflective of the total assets within the Trust, approximately $400 million of incremental provision for credit losses was recorded during the fourth quarter of 2008.
This incremental provision for credit losses was recorded in the Corporate/Private Equity segment as the action related to the acquisition of Washington Mutual’s banking op-
erations. For further discussion of credit card securitizations, see Note 15 on page 208 of this Annual Report.
(g) Managed results for credit card exclude the impact of credit card securitizations on total net revenue, provision for credit losses and average assets, as JPMorgan Chase treats
the sold receivables as if they were still on the balance sheet in evaluating the credit performance of the entire managed credit card portfolio as operations are funded, and
decisions are made about allocating resources such as employees and capital, based on managed information. These adjustments are eliminated in reconciling items to arrive
at the Firm’s reported U.S. GAAP results. The related securitization adjustments were as follows.
Year ended December 31, (in millions) 2009 2008 2007
Noninterest revenue $ (1,494) $ (3,333) $ (3,255
)
Net interest income 7,937 6,945 5,635
Provision for credit losses 6,443 3,612 2,380
Average assets 82,233 76,904 66,780
(h) Segment managed results reflect revenue on a tax-equivalent basis with the corresponding income tax impact recorded within income tax expense/(benefit). The adjust-
ments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results. Tax-equivalent adjustments for the years ended December 31, 2009, 2008 and
2007 were as follows.
Year ended December 31, (in millions) 2009 2008 2007
Noninterest revenue $ 1,440 $ 1,329 $ 683
Net interest income 330 579 377
Income tax expense 1,770 1,908 1,060
(i) Ratio is based on net income.