JP Morgan Chase 2009 Annual Report Download - page 48

Five-year summary of consolidated financial highlights
JPMorgan Chase & Co./2009 Annual Report 46
(unaudited)
(in millions, except per share, headcount and ratio data)
As of or for the year ended December 31, 2009 2008(d)
2007 2006 2005
Selected income statement data
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)
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
Selected ratios
Return on common equity (“ROE”) (f)
Income from continuing operations
6% 2% 13% 12%
8
%
Net income 6 4 13 13
8
Return on tangible common equity (“ROTCE”) (f)(g)
Income from continuing operations
10 4 22 24
15
Net income
10 6 22 24
15
Return on assets (“ROA”):
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
Overhead ratio
52 65 58 63
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
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
(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 being 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 The Bear Stearns Companies Inc. (“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 additional 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 U.S. Troubled Asset Relief Program (“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 reconciliation of the Firm’s use of non-GAAP financial measures” on pages 58–60 of this Annual Report.
(g) For further discussion of ROTCE, a non-GAAP financial measure, see “Explanation and reconciliation of the Firm’s use of non-GAAP financial measures” on pages 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 discussion, see Regulatory capital on pages 90–92 of this Annual Report.