JP Morgan Chase 2009 Annual Report Download - page 64

Management’s discussion and analysis
JPMorgan Chase & Co./2009 Annual Report 62
actual cost or the lower of actual cost or market, as well as upon
usage of the services provided. In contrast, certain other expense
related to certain corporate functions, or to certain technology and
operations, are not allocated to the business segments and are
retained in Corporate. Retained expense includes: parent company
costs that would not be incurred if the segments were stand-alone
businesses; adjustments to align certain corporate staff, technology
and operations allocations with market prices; and other one-time
items not aligned with the business segments.
Segment results – Managed basis(a)
The following table summarizes the business segment results for the periods indicated.
Year ended December 31, Total net revenue Noninterest expense
(in millions) 2009 2008 2007 2009 2008
2007
Investment Bank(b) $ 28,109 $ 12,335 $ 18,291 $ 15,401 $ 13,844 $
13,074
Retail Financial Services 32,692 23,520 17,305 16,748 12,077
9,905
Card Services 20,304 16,474 15,235 5,381 5,140
4,914
Commercial Banking 5,720 4,777 4,103 2,176 1,946
1,958
Treasury & Securities Services 7,344 8,134 6,945 5,278 5,223
4,580
Asset Management 7,965 7,584 8,635 5,473 5,298
5,515
Corporate/Private Equity(b) 6,513 (52) 4,298 1,895 (28)
1,757
Total $ 108,647 $ 72,772 $ 74,812 $ 52,352 $ 43,500 $
41,703
Year ended December 31, Net income/(loss) Return on equity
(in millions) 2009 2008 2007 2009 2008 2007
Investment Bank(b) $ 6,899 $ (1,175) $ 3,139 21% (5)% 15 %
Retail Financial Services 97 880 2,925 — 5 18
Card Services (2,225)
780 2,919 (15) 5 21
Commercial Banking 1,271 1,439 1,134 16 20 17
Treasury & Securities Services 1,226
1,767 1,397 25 47 47
Asset Management 1,430
1,357 1,966 20 24 51
Corporate/Private Equity(b)(c) 3,030
557 1,885 NM NM NM
Total $ 11,728
$ 5,605 $ 15,365 6% 4% 13 %
(a) Represents reported results on a tax-equivalent basis and excludes the impact of credit card securitizations.
(b) In the second quarter of 2009, IB began reporting its credit reimbursement from TSS as a component of its total net revenue, whereas TSS continues to report its credit
reimbursement to IB as a separate line item on its income statement (not part of total net revenue). Corporate/Private Equity includes an adjustment to offset IB's
inclusion of the credit reimbursement in total net revenue. Prior periods have been revised for IB and Corporate/Private Equity to reflect this presentation.
(c) Net income included an extraordinary gain of $76 million and $1.9 billion related to the Washington Mutual transaction for 2009 and 2008, respectively.