JP Morgan Chase 2009 Annual Report Download - page 252

Supplementary information
JPMorgan Chase & Co./2009 Annual Report
250
Selected annual financial data (unaudited)
As of or for the year ended December 31,
(in millions, except per-share, headcount and ratio data), 2009 2008(d) 2007 2006 2005
Selected income statement data
Noninterest revenue $ 49,282 $ 28,473 $ 44,966 $ 40,757 $ 34,693
Net interest income 51,152 38,779 26,406 21,242 19,555
Total net revenue 100,434 67,252 71,372 61,999 54,248
Total noninterest expense 52,352 43,500 41,703 38,843 38,926
Pre-provision profit (a) 48,082 23,752 29,669 23,156 15,322
Provision for credit losses 32,015 19,445 6,864 3,270 3,483
Provision for credit losses – accounting conformity (b) — 1,534 — — —
Income from continuing operations before income tax expense/
(benefit) and extraordinary gain 16,067 2,773 22,805 19,886 11,839
Income tax expense/(benefit) 4,415 (926) 7,440 6,237 3,585
Income from continuing operations 11,652 3,699 15,365 13,649 8,254
Income from discontinued operations (c) — — — 795 229
Income before extraordinary gain 11,652 3,699 15,365 14,444 8,483
Extraordinary gain (d) 76 1,906 — — —
Net income $ 11,728 $ 5,605 $ 15,365 $ 14,444 $ 8,483
Per-common-share data
Basic earnings (e)
Income from continuing operations $ 2.25 $ 0.81 $ 4.38 $ 3.83 $ 2.30
Net income 2.27 1.35 4.38 4.05 2.37
Diluted earnings (e)(f)
Income from continuing operations $ 2.24 $ 0.81 $ 4.33 $ 3.78 $ 2.29
Net income 2.26 1.35 4.33 4.00 2.35
Cash dividends declared per share 0.20 1.52 1.48 1.36 1.36
Book value per share 39.88 36.15 36.59 33.45 30.71
Common shares outstanding
Average: Basic (e) 3,862.8 3,501.1 3,403.6 3,470.1 3,491.7
Diluted (e) 3,879.7 3,521.8 3,445.3 3,516.1 3,511.9
Common shares at period-end 3,942.0 3,732.8 3,367.4 3,461.7 3,486.7
Share price
High $ 47.47 $ 50.63 $ 53.25 $ 49.00 $ 40.56
Low 14.96 19.69 40.15 37.88 32.92
Close 41.67 31.53 43.65 48.30 39.69
Market capitalization 164,261 117,695 146,986 167,199 138,387
Financial ratios
Return on common equity: (f)
Income from continuing operations 6% 2% 13% 12% 8
%
Net income 6 4 13 13 8
Return on tangible common equity (f)(g)
Income from continuing operations 10 4 22 24 15
Net income 10 6 22 24 15
Return on assets:
Income from continuing operations 0.58 0.21 1.06 1.04 0.70
Net income 0.58 0.31 1.06 1.10 0.72
Tier 1 capital ratio 11.1 10.9 8.4 8.7 8.5
Total capital ratio 14.8 14.8 12.6 12.3 12.0
Tier 1 leverage ratio 6.9 6.9 6.0 6.2 6.3
Tier 1 common capital ratio (h) 8.8 7.0 7.0 7.3 7.0
Overhead ratio 52 65 58 63 72
Selected balance sheet data (period-end)
Trading assets $ 411,128 $ 509,983 $ 491,409 $ 365,738 $ 298,377
Securities 360,390 205,943 85,450 91,975 47,600
Loans 633,458 744,898 519,374 483,127 419,148
Total assets 2,031,989 2,175,052 1,562,147 1,351,520 1,198,942
Deposits 938,367 1,009,277 740,728 638,788 554,991
Long-term debt 266,318 270,683 199,010 145,630 119,886
Common stockholders’ equity 157,213 134,945 123,221 115,790 107,072
Total stockholders’ equity 165,365 166,884 123,221 115,790 107,211
Headcount 222,316 224,961 180,667 174,360 168,847
Credit quality metrics
Allowance for credit losses $ 32,541 $ 23,823 $ 10,084 $ 7,803 $ 7,490
Allowance for loan losses to total retained loans 5.04% 3.18% 1.88% 1.70% 1.84 %
Allowance for loan losses to retained loans excluding purchased
credit-impaired loans (i) 5.51 3.62 1.88 1.70 1.84
Nonperforming assets 19,741 12,714 3,933 2,341 2,590
Net charge-offs $ 22,965 $ 9,835 $ 4,538 $ 3,042 $ 3,819
Net charge-off rate 3.42% 1.73% 1.00% 0.73% 1.00 %
Wholesale net charge-off/(recovery) rate 1.40 0.18 0.04 (0.01) (0.06
)
Consumer net charge-off rate 4.41 2.71 1.61 1.17 1.56
(a) Pre-provision profit is total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income
in excess of its provision for credit losses.
(b) Results for 2008 included an accounting conformity loan loss reserve provision related to the acquisition of Washington Mutual Bank’s banking operations.
(c) On October 1, 2006, JPMorgan Chase & Co. completed the exchange of selected corporate trust businesses for the consumer, business banking and middle-market banking businesses of The Bank
of New York Company Inc. The results of operations of these corporate trust businesses are reported as discontinued operations for each of the periods presented.
(d) On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual. On May 30, 2008, a wholly-owned subsidiary of JPMorgan Chase merged with and into Bear Stearns and Bear
Stearns became a wholly-owned subsidiary of JPMorgan Chase. The Washington Mutual acquisition resulted in negative goodwill, and accordingly, the Firm recorded an extraordinary gain. For addi-
tional information on these transactions, see Note 2 on pages 151-156 of this Annual Report.
(e) Effective January 1, 2009, the Firm implemented new FASB guidance for participating securities. Accordingly, prior-period amounts have been revised as required. For further discussion of the
guidance, see Note 25 on page 232 of this Annual Report.
(f) The calculation of 2009 earnings per share and net income applicable to common equity include a one-time, noncash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of
TARP preferred capital in the second quarter of 2009. Excluding this reduction, the adjusted ROE and ROTCE were 7% and 11% for 2009. For further discussion, see “Explanation and reconcilia-
tion of the Firm’s use of non-GAAP financial measures” on pages 58–60 of this Annual Report.
(g) For a further discussion of ROTCE, a non-GAAP financial measure, see “Explanation and reconciliation of the Firm’s use of non-GAAP financial measures” on page 58–60 of this Annual Report.
(h) Tier 1 common is calculated as Tier 1 capital less qualifying perpetual preferred stock, qualifying trust preferred securities and qualifying minority interest in subsidiaries. The Firm uses the Tier 1
common capital ratio, a non-GAAP financial measure, to assess and compare the quality and composition of the Firm’s capital with the capital of other financial services companies. For further dis-
cussion, see Regulatory capital on pages 90–92 of this Annual Report.
(i) Excludes the impact of home lending purchased credit-impaired loans and loans held by the Washington Mutual Master Trust. For further discussion, see Allowance for credit losses on pages 123–125
of this Annual Report.