JP Morgan Chase 2008 Annual Report Download - page 230

Supplementary information
228 JPMorgan Chase & Co./ 2008 Annual Report
Selected quarterly financial data (unaudited)
(in millions, except per share, ratio and headcount data) 2008(i) 2007
As of or for the period ended 4th 3rd 2nd 1st 4th 3rd 2nd 1st
Selected income statement data
Noninterest revenue(a) $ 3,394 $ 5,743 $ 10,105 $ 9,231 $ 10,161 $ 9,199 $ 12,740 $ 12,866
Net interest income 13,832 8,994 8,294 7,659 7,223 6,913 6,168 6,102
Total net revenue 17,226 14,737 18,399 16,890 17,384 16,112 18,908 18,968
Provision for credit losses 7,755 3,811 3,455 4,424 2,542 1,785 1,529 1,008
Provision for credit losses – accounting conformity(b) (442) 1,976 — — —— — —
Total noninterest expense 11,255 11,137 12,177 8,931 10,720 9,327 11,028 10,628
Income (loss) before income tax expense
(benefit) and extraordinary gain (1,342) (2,187) 2,767 3,535 4,122 5,000 6,351 7,332
Income tax expense (benefit) (719) (2,133) 764 1,162 1,151 1,627 2,117 2,545
Income (loss) before extraordinary gain (623) (54) 2,003 2,373 2,971 3,373 4,234 4,787
Extraordinary gain(c) 1,325 581 — — —— — —
Net income $ 702 $ 527 $ 2,003 $ 2,373 $ 2,971 $ 3,373 $ 4,234 $ 4,787
Per common share
Basic earnings
Income (loss) before extraordinary gain $ (0.28) $ (0.06) $ 0.56 $ 0.70 $ 0.88 $ 1.00 $ 1.24 $ 1.38
Net income 0.07 0.11 0.56 0.70 0.88 1.00 1.24 1.38
Diluted earnings
Income (loss) before extraordinary gain $ (0.28) $ (0.06) $ 0.54 $ 0.68 $ 0.86 $ 0.97 $ 1.20 $ 1.34
Net income 0.07 0.11 0.54 0.68 0.86 0.97 1.20 1.34
Cash dividends declared per share 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.34
Book value per share 36.15 36.95 37.02 36.94 36.59 35.72 35.08 34.45
Common shares outstanding
Average: Basic 3,738 3,445 3,426 3,396 3,367 3,376 3,415 3,456
Diluted 3,738(h) 3,445(h) 3,531 3,495 3,472 3,478 3,522 3,560
Common shares at period end 3,733 3,727 3,436 3,401 3,367 3,359 3,399 3,416
Share price(d)
High $ 50.63 $ 49.00 $ 49.95 $ 49.29 $ 48.02 $ 50.48 $ 53.25 $ 51.95
Low 19.69 29.24 33.96 36.01 40.15 42.16 47.70 45.91
Close 31.53 46.70 34.31 42.95 43.65 45.82 48.45 48.38
Market capitalization 117,695 174,048 117,881 146,066 146,986 153,901 164,659 165,280
Financial ratios
Return on common equity:
Income (loss) before extraordinary gain (3)% (1)% 6% 8% 10% 11% 14% 17%
Net income 116810 11 14 17
Return on assets:
Income (loss) before extraordinary gain (0.11) (0.01) 0.48 0.61 0.77 0.91 1.19 1.41
Net income 0.13 0.12 0.48 0.61 0.77 0.91 1.19 1.41
Tier 1 capital ratio 10.9 8.9 9.2 8.3 8.4 8.4 8.4 8.5
Total capital ratio 14.8 12.6 13.4 12.5 12.6 12.5 12.0 11.8
Tier 1 leverage ratio 6.9 7.2 6.4 5.9 6.0 6.0 6.2 6.2
Overhead ratio 65 76 66 53 62 58 58 56
Selected balance sheet data (period-end)
Trading assets $ 509,983 $ 520,257 $ 531,997 $ 485,280 $ 491,409 $ 453,711 $ 450,546 $ 423,331
Securities 205,943 150,779 119,173 101,647 85,450 97,706 95,984 97,029
Loans 744,898 761,381 538,029 537,056 519,374 486,320 465,037 449,765
Total assets 2,175,052 2,251,469 1,775,670 1,642,862 1,562,147 1,479,575 1,458,042 1,408,918
Deposits 1,009,277 969,783 722,905 761,626 740,728 678,091 651,370 626,428
Long-term debt 252,094 238,034 260,192 189,995 183,862 173,696 159,493 143,274
Common stockholders’ equity 134,945 137,691 127,176 125,627 123,221 119,978 119,211 117,704
Total stockholders’ equity 166,884 145,843 133,176 125,627 123,221 119,978 119,211 117,704
Headcount 224,961 228,452 195,594 182,166 180,667 179,847 179,664 176,314
Credit quality metrics
Allowance for credit losses $ 23,823 $ 19,765 $ 13,932 $ 12,601 $ 10,084 $ 8,971 $ 8,399 $ 7,853
Nonperforming assets(e)(f) 12,714 9,520 6,233 5,143 3,933 3,009 2,423 2,212
Allowance for loan losses to total loans(g) 3.18% 2.56% 2.57% 2.29% 1.88% 1.76% 1.71% 1.74%
Net charge-offs $ 3,315 $ 2,484 $ 2,130 $ 1,906 $ 1,429 $ 1,221 $ 985 $ 903
Net charge-off rate(g) 1.80% 1.91% 1.67% 1.53% 1.19% 1.07% 0.90% 0.85%
Wholesale net charge-off (recovery) rate(g) 0.33 0.10 0.08 0.18 0.05 0.19 (0.07) (0.02)
Consumer net charge-off rate(g) 2.59 3.13 2.77 2.43 1.93 1.62 1.50 1.37
Managed card net charge-off rate 5.56 5.00 4.98 4.37 3.89 3.64 3.62 3.57
(a) The Firm adopted SFAS 157 in the first quarter of 2007. See Note 4 on pages 141–155 of this Annual Report for additional information.
(b) For a discussion of accounting conformity, see provision for credit losses on page 47 and consumer credit portfolio discussion on page 103.
(c) For a discussion of the extraordinary gain, see Note 2 on pages 135–140.
(d) JPMorgan Chase’s common stock is listed and traded on the New York Stock Exchange, the London Stock Exchange and the Tokyo Stock Exchange. The high, low and closing prices of JPMorgan Chase’s common
stock are from The New York Stock Exchange Composite Transaction Tape.
(e) Excludes purchased wholesale loans held-for-sale.
(f) During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform to all other home lending products.Amounts for 2007 have been
revised to reflect this change.
(g) End-of-period and average loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage ratios and net charge-off rates, respectively.
(h) Common equivalent shares have been excluded from the computation of diluted earnings per share for the third quarter of 2008, as the effect on income (loss) before extraordinary gain would be antidilutive.
(i) On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank. On May 30, 2008, the Bear Stearns merger was consummated. Each of these transactions was accounted for
as a purchase and their respective results of operations are included in the Firm’s results from each respective transaction date. For additional information on these transactions, see Note 2 on pages 135–140 of this
Annual Report.