JP Morgan Chase 2008 Annual Report Download - page 40

Five-year summary of consolidated financial highlights
38 JPMorgan Chase & Co./ 2008 Annual Report
(unaudited)
(in millions, except per share, headcount and ratio data)
As of or for the year ended December 31, 2008(f) 2007 2006 2005 2004(g)
Selected income statement data
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(a) 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)(b) (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
Selected ratios
Return on common equity (“ROE”):
Income from continuing operations 2% 13% 12% 8% 6%
Net income 413 13 8 6
Return on assets (“ROA”):
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
Overhead ratio 65 58 63 72 80
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
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
(a) Results for 2008 and 2004 included an accounting conformity loan loss reserve provision related to the acquisition of Washington Mutual Bank’s banking operations and the merger with Bank One Corporation,
respectively.
(b) The income tax benefit in 2008 is the result of the release of previously established deferred tax liabilities on non-U.S. earnings and business tax credits.
(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) Effective September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank for $1.9 billion.The fair value of the net assets acquired exceeded the purchase price which resulted in
negative goodwill. In accordance with SFAS 141, nonfinancial assets that are not held-for-sale were written down against that negative goodwill. The negative goodwill that remained after writing down nonfinan-
cial assets was recognized as an extraordinary gain in 2008.
(e) JPMorgan Chase’s common stock is listed and traded on the New York Stock Exchange, the London Stock Exchange Limited 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) On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank. On May 30, 2008, the merger with The Bear Stearns Companies, Inc. 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.
(g) 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.