JP Morgan Chase 2010 Annual Report Download - page 123

JPMorgan Chase & Co./2010 Annual Report 123
Liquid securities
and other
30 days or cash collateral
As of or for the year ended
Noninvestment grade
more past due
Year
-
to
-
date
Credit
held against
December 31, 2009
(in millions)
Credit
exposure
(c)
Investment
grade
Noncriticized
Criticized
performing
Criticized
nonperforming
and accruing
loans
net charge-offs/
(recoveries)
derivative
hedges
(d)
derivative
receivables
Top 25 industries
(a)
Banks and finance companies
$
54,053
$
43,576
$
8,424
$
1,559
$
494
$
43
$
719
$ (3,718)
$
(8,353
)
Real estate
68,509
37,724
18
,810
8,872
3,103
937
688
(1,168)
(35
)
Healthcare
35,605
29,576
5,700
310
19
30
10
(2,545)
(125
)
State and municipal gover
n
ments
34,726
32,410
1,850
400
66
15
—
(204)
(193
)
Asset managers
24,920
20,498
3,742
442
238
28
7
(40)
(2,105
)
Consumer products 27,004 17,384 9,105 479 36 13 35 (3,638) (4 )
Oil and gas
23,322
17,082
5,854
378
8
28
16
(2,567)
(6
)
Utilities
27,178
22,063
3,8
77
1,236
2
3
182
(3,486)
(360
)
Retail and consumer services
20,673
12,024
7,867
687
95
10
35
(3,073)
—
Technology
14,169
8,877
4,004
1,125
163
5
28
(1,730)
(130
)
Machinery and equipment
manufacturing 12,759
7,287 5,122 329 21 13 12 (1,327) (1 )
Building materials/construction
10,448
4,512
4,537
1,309
90
19
98
(1,141)
—
Chemicals/plastics
9,870
6,633
2,626
600
11
5
22
(1,357)
—
Metals/mining
12,547
7,002
4,906
547
92
4
24
(1,963)
—
Business services
10,667
6,464
3,859
241
103
7
8
(107)
—
Central government
9,557
9,480
77
—
—
—
—
(4,814)
(30
)
Media 12,379 6,789 3,898 1,056 636 57 464 (1,606) —
Insurance
13,421
9,221
3,601
581
18
—
7
(2,735)
(793
)
Telecom services
11,265
7,741
3,273
191
60
—
31
(3,455)
(62
)
Holding companies
16,018
13,801
2,107
42
68
44
275
(421
)
(320
)
Transportation
9,749
6,416
2,745
553
35
41
61
(870)
(242
)
Securities firms and exchanges
10,832
8,220
2,467
36
109
2
—
(289)
(2,139
)
Automotive 9,357 3,865 4,252 1,195 45 2 52 (1,541) —
Agriculture/paper manufactu
r
ing
5,801
2,169
3,132
331
169
36
10
(897)
—
Aerospace
5,254
4,442
743
69
—
13
—
(
963
)
—
All other
(b)
137,359
115,446
16,979
3,527
1,407
671
348
(
2,721
)
(621
)
Subtot
al
627,442
460,702
133,557
26,095
7,088
2,026
3,132
(48,376)
(15,519
)
Loans held-for-sale and loans at
fair value
4,098
Receivables from customers
15,745
Interest in purchased recei
v
ables
2,927
Total $ 650,212 $ 460,702 $ 133,557 $ 26,095 $ 7,088 $ 2,026 $ 3,132 $ (48,376) $ (15,519 )
(a) All industry rankings are based on exposure at December 31, 2010. The industry rankings presented in the 2009 table are based on the industry rankings of the corresponding
exposures at December 31, 2010, not actual rankings of such exposures at December 31, 2009.
(b) For more information on exposures to SPEs included in all other, see Note 16 on pages 244–259 of this Annual Report.
(c) Credit exposure is net of risk participations and excludes the benefit of credit derivative hedges and collateral held against derivative receivables or loans.
(d) Represents the net notional amounts of protection purchased and sold of single-name and portfolio credit derivatives used to manage the credit exposures; these derivatives
do not qualify for hedge accounting under U.S. GAAP.
• Media: Exposure to this industry decreased by 11% in 2010 to
$11.0 billion. Credit quality in this portfolio stabilized somewhat
in 2010 as a result of repayments and loan sales. Criticized expo-
sure also decreased by 28% from 2009 to $1.2 billion, but re-
mains elevated relative to total industry exposure due to
continued pressure on the traditional media business model from
expanding digital and online technology.
• All other: All other at December 31, 2010 (excluding loans held-
for-sale and loans at fair value), included $140.9 billion of credit
exposure to eight industry segments. Exposures related to: (1)
Individuals, Private Education & Civic Organizations were 47%
and (2) SPEs were 39% of this category. SPEs provide secured
financing (generally backed by receivables, loans or bonds with a
diverse group of obligors). For further discussion of SPEs, see
Note 1 on pages 164–165 of this Annual Report. The remaining
all other exposure is well-diversified across industries and none
comprise more than 6% of total exposure.