JP Morgan Chase 2008 Annual Report Download - page 231

Supplementary information
JPMorgan Chase & Co./ 2008 Annual Report 229
Selected annual financial data (unaudited)
(in millions, except per share, headcount and ratio data)
As of or for the year ended December 31, 2008(i) 2007 2006 2005 2004(j)
Selected income statement data
Noninterest revenue(a) $ 28,473 $ 44,966 $ 40,757 $ 34,693 $ 26,209
Net interest income 38,779 26,406 21,242 19,555 16,527
Total net revenue 67,252 71,372 61,999 54,248 42,736
Provision for credit losses 19,445 6,864 3,270 3,483 1,686
Provision for credit losses – accounting conformity(b) 1,534 — — — 858
Total noninterest expense 43,500 41,703 38,843 38,926 34,336
Income from continuing operations before income tax expense (benefit) 2,773 22,805 19,886 11,839 5,856
Income tax expense (benefit) (926) 7,440 6,237 3,585 1,596
Income from continuing operations 3,699 15,365 13,649 8,254 4,260
Income from discontinued operations(c) —— 795 229 206
Income before extraordinary gain 3,699 15,365 14,444 8,483 4,466
Extraordinary gain(d) 1,906 ————
Net income $ 5,605 $ 15,365 $ 14,444 $ 8,483 $ 4,466
Per common share
Basic earnings per share
Income from continuing operations $ 0.86 $ 4.51 $ 3.93 $ 2.36 $ 1.51
Net income 1.41 4.51 4.16 2.43 1.59
Diluted earnings per share
Income from continuing operations $ 0.84 $ 4.38 $ 3.82 $ 2.32 $ 1.48
Net income 1.37 4.38 4.04 2.38 1.55
Cash dividends declared per share 1.52 1.48 1.36 1.36 1.36
Book value per share 36.15 36.59 33.45 30.71 29.61
Common shares outstanding
Average: Basic 3,501 3,404 3,470 3,492 2,780
Diluted 3,605 3,508 3,574 3,557 2,851
Common shares at period end 3,733 3,367 3,462 3,487 3,556
Share price(e)
High $ 50.63 $ 53.25 $ 49.00 $ 40.56 $ 43.84
Low 19.69 40.15 37.88 32.92 34.62
Close 31.53 43.65 48.30 39.69 39.01
Market capitalization 117,695 146,986 167,199 138,387 138,727
Financial ratios
Return on common equity:
Income from continuing operations 2% 13% 12% 8% 6%
Net income 413 13 8 6
Return on assets:
Income from continuing operations 0.21 1.06 1.04 0.70 0.44
Net income 0.31 1.06 1.10 0.72 0.46
Tier 1 capital ratio 10.9 8.4 8.7 8.5 8.7
Total capital ratio 14.8 12.6 12.3 12.0 12.2
Tier 1 leverage ratio 6.9 6.0 6.2 6.3 6.2
Overhead ratio 65 58 63 72 80
Selected balance sheet data (period-end)
Trading assets $ 509,983 $ 491,409 $ 365,738 $ 298,377 $ 288,814
Securities 205,943 85,450 91,975 47,600 94,512
Loans 744,898 519,374 483,127 419,148 402,114
Total assets 2,175,052 1,562,147 1,351,520 1,198,942 1,157,248
Deposits 1,009,277 740,728 638,788 554,991 521,456
Long-term debt 252,094 183,862 133,421 108,357 95,422
Common stockholders’ equity 134,945 123,221 115,790 107,072 105,314
Total stockholders’ equity 166,884 123,221 115,790 107,211 105,653
Headcount 224,961 180,667 174,360 168,847 160,968
Credit quality metrics
Allowance for credit losses $ 23,823 $ 10,084 $ 7,803 $ 7,490 $ 7,812
Nonperforming assets(f)(g) 12,714 3,933 2,341 2,590 3,231
Allowance for loan losses to total loans(h) 3.18% 1.88% 1.70% 1.84% 1.94%
Net charge-offs $ 9,835 $ 4,538 $ 3,042 $ 3,819 $ 3,099
Net charge-off rate(h) 1.73% 1.00% 0.73% 1.00% 1.08%
Wholesale net charge-off (recovery) rate(h) 0.18 0.04 (0.01) (0.06) 0.18
Consumer net charge-off rate(h) 2.71 1.61 1.17 1.56 1.56
Managed card net charge-off rate 5.01 3.68 3.33 5.21 5.27
(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) 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 period prior to 2007.
(d) For a discussion of the extraordinary gain, see Note 2 on pages 135–140.
(e) 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.
(f) Excludes purchased wholesale loans held-for-sale.
(g) 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. Periods prior to 2007 have not been revised as the impact was not material.
(h) 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.
(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.
(j) On July 1, 2004, Bank One Corporation merged with and into JPMorgan Chase. Accordingly, 2004 results include six months of the combined Firm’s results and six months of heritage JPMorgan Chase results.