JP Morgan Chase 2003 Annual Report Download - page 65

J.P. Morgan Chase & Co. / 2003 Annual Report 63
Commercial and consumer nonperforming exposure and net charge-offs
The follow ing table presents a summary of credit-related nonperforming, past due and net charge-off information for the dates indicated:
As of or for the year ended Nonperforming Nonperforming assets Past due 90 days and Average annual
December 31,
assets(i) as a % of total over and accruing Net charge-offs net charge-off rate
(in millions, except ratios) 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002
COM M ERCIAL
Loans(a) $2,009 $3,672 2.42% 4.01% $46 $57 $816 $1,881 0.91% 1.93%
Derivative receivables 253 289 0.30 0.35 ——NA NA NA NA
Other receivables 108 108 100 100 NA NA NA NA NA NA
Total commercial
credit-related assets 2,370 4,069 1.42 2.33 46 57 816 1,881 0.91 1.93
Lending-related commitments NA NA NA NA NA NA —212 —0.09
Total commercial credit
exposure $ 2,370 $4,069 0.62% 0.99% $46 $57 $816 $2,093 0.26% 0.62%
CONSUM ER
U.S. consumer:
1–4 family residential
mortgages - first liens $249 $259 0.46% 0.52% $— $— $23 $49 0.04% 0.11%
Home equity 55 53 0.29 0.36 ——10 70.06 0.05
1–4 family residential
mortgages 304 312 0.41 0.49 ——33 56 0.04 0.10
Credit card – reported(b)(c) 11 15 0.07 0.08 248 451 1,072 1,389 6.32 6.42
Credit card securitizations(b)(d) ————879 630 1,870 1,439 5.64 5.43
Credit card – managed 11 15 0.02 0.03 1,127 1,081 2,942 2,828 5.87 5.87
Automobile financings 119 118 0.31 0.35 ——171 161 0.45 0.57
Other consumer (e) 66 76 0.91 1.01 21 22 180 189 2.45 2.41
Total managed consumer loans 500 521 0.29 0.33 1,148 1,103 3,326 3,234 1.96 2.30
Lending-related commitments NA NA NA NA NA NA NA NA NA NA
Total consumer credit
exposure $ 500 $521 0.14% 0.17% $1,148 $1,103 $3,326 $3,234 1.00% 1.15%
TOTAL CREDIT PORTFOLIO
Managed loans $2,509 $4,193 0.99% 1.70% $1,194 $1,160 $4,142 $5,115 1.60% 2.15%
Derivative receivables 253 289 0.30 0.35 ——NA NA NA NA
Other receivables 108 108 100 100 NA NA NA NA NA NA
Total managed credit-related
assets 2,870 4,590 0.85 1.39 1,194 1,160 4,142 5,115 1.60 2.15
Total lending-related commitments NA NA NA NA NA NA —212 —0.06
Assets acquired in loan satisfactions(f) 216 190 NA NA NA NA NA NA NA NA
Total credit port folio(g) $3,086 $4,780 0.42% 0.66% $1,194 $1,160 $4,142 $5,327 0.64% 0.86%
Credit derivat ives hedges
not ional(h) $(123) $(66) NA NA NA NA NA NA NA NA
(a) Average annual net charge-off rate would have been 0.97% for the year ended December 31, 2003, excluding the impact of the adoption of FIN 46.
(b) At December 31, 2003, credit card securitizations included $166 million of accrued interest and fees on securitized credit card loans past due 90 days and over and accruing that were classified in
Other assets, consistent w ith the FASB Staff Position, Accounting for Accrued Interest Receivable Related to Securitized and Sold Receivables under SFAS 140. Prior to March 31, 2003, this balance
was classified in credit card loans. At December 31, 2003, none was nonperforming.
(c) In connection with charge-offs, during 2003 and 2002, $372 million and $387 million, respectively, of accrued credit card interest and fees were reversed and recorded as a reduction of interest
income and fee revenue.
(d) Represents securitized credit cards. For a further discussion of credit card securitizations, see page 41 of this Annual Report.
(e) Consists of installment loans (direct and indirect types of consumer finance), student loans, unsecured revolving lines of credit and non-U.S. consumer loans.
(f) Includes $9 million and $14 million of commercial assets acquired in loan satisfactions, and $207 million and $176 million of consumer assets acquired in loan satisfactions at December 31, 2003
and 2002, respectively.
(g) At December 31, 2003 and 2002, excludes $2.3 billion and $3.1 billion, respectively, of residential mortgage receivables in foreclosure status that are insured by government agencies. These amounts
are excluded as reimbursement is proceeding normally, and are recorded in Other assets.
(h) Represents single name credit derivative hedges of commercial credit exposure that do not qualify for hedge accounting under SFAS 133.
(i) Nonperforming assets exclude nonaccrual HFS loans of $97 million and $43 million at December 31, 2003 and 2002, respectively. Nonaccrual commercial HFS loans were
$52 million and $18 million, and nonaccrual consumer HFS loans were $45 million and $25 million at December 31, 2003 and 2002, respectively.