JP Morgan Chase 2010 Annual Report Download - page 52

Financial
JPMorgan Chase & Co./2010 Annual Report
52
FIVE-YEAR SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
(in millions, except per share, headcount and ratio data)
As of or for the year ended December 31, 2010 2009
2008(d) 2007 2006
Selected income statement data
Total net revenue $ 102,694 $ 100,434 $ 67,252 $ 71,372 $
61,999
Total noninterest expense 61,196 52,352 43,500 41,703
38,843
Pre-provision profit(a) 41,498 48,082 23,752 29,669
23,156
Provision for credit losses 16,639 32,015 19,445 6,864
3,270
Provision for credit losses – accounting conformity (b) — — 1,534 — —
Income from continuing operations before income tax
expense/(benefit) and extraordinary gain 24,859 16,067 2,773 22,805
19,886
Income tax expense/(benefit) 7,489 4,415 (926) 7,440
6,237
Income from continuing operations 17,370 11,652 3,699 15,365
13,649
Income from discontinued operations (c) — — — —
795
Income before extraordinary gain 17,370 11,652 3,699 15,365
14,444
Extraordinary gain(d) — 76 1,906 — —
Net income $ 17,370 $ 11,728 $ 5,605 $ 15,365 $
14,444
Per common share data
Basic earnings
Income from continuing operations $ 3.98 $ 2.25 $ 0.81 $ 4.38 $
3.83
Net income 3.98 2.27 1.35 4.38
4.05
Diluted earnings (e)
Income from continuing operations $ 3.96 $ 2.24 $ 0.81 $ 4.33 $
3.78
Net income 3.96 2.26 1.35 4.33
4.00
Cash dividends declared per share 0.20 0.20 1.52 1.48
1.36
Book value per share 43.04 39.88 36.15 36.59
33.45
Common shares outstanding
Average: Basic 3,956.3 3,862.8 3,501.1 3,403.6 3,470.1
Diluted 3,976.9 3,879.7 3,521.8 3,445.3 3,516.1
Common shares at period-end 3,910.3 3,942.0 3,732.8 3,367.4
3,461.7
Share price (f)
High $ 48.20 $ 47.47 $ 50.63 $ 53.25 $
49.00
Low 35.16 14.96 19.69 40.15
37.88
Close 42.42 41.67 31.53 43.65
48.30
Market capitalization 165,875 164,261 117,695 146,986
167,199
Selected ratios
Return on common equity (“ROE”) (e)
Income from continuing operations 10% 6% 2% 13%
12
%
Net income 10 6 4 13
13
Return on tangible common equity (“ROTCE”) (e)
Income from continuing operations 15 10 4 22
24
Net income 15 10 6 22
24
Return on assets (“ROA”)
Income from continuing operations 0.85 0.58 0.21 1.06
1.04
Net income 0.85 0.58 0.31 1.06
1.10
Overhead ratio 60 52 65 58
63
Deposits-to-loans ratio 134 148 135 143
132
Tier 1 capital ratio (g) 12.1 11.1 10.9 8.4
8.7
Total capital ratio 15.5 14.8 14.8 12.6
12.3
Tier 1 leverage ratio 7.0 6.9 6.9 6.0
6.2
Tier 1 common capital ratio (h) 9.8 8.8 7.0 7.0
7.3
Selected balance sheet data (period-end) (g)
Trading assets $ 489,892 $ 411,128 $ 509,983 $ 491,409 $
365,738
Securities 316,336 360,390 205,943 85,450
91,975
Loans 692,927 633,458 744,898 519,374
483,127
Total assets 2,117,605 2,031,989 2,175,052 1,562,147
1,351,520
Deposits 930,369 938,367 1,009,277 740,728
638,788
Long-term debt 247,669 266,318 270,683 199,010
145,630
Common stockholders’ equity 168,306 157,213 134,945 123,221
115,790
Total stockholders’ equity 176,106 165,365 166,884 123,221
115,790
Headcount 239,831 222,316 224,961 180,667
174,360
(a) Pre-provision profit is total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate
income in excess of its provision for credit losses.
(b) Results for 2008 included an accounting conformity loan loss reserve provision related to the acquisition of Washington Mutual Bank’s (“Washington Mutual “) banking operations.
(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 were reported as discontinued operations.
(d) On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual. On May 30, 2008, a wholly-owned subsidiary of JPMorgan Chase merged with
and into The Bear Stearns Companies Inc. (“Bear Stearns”), and Bear Stearns became a wholly-owned subsidiary of JPMorgan Chase. The Washington Mutual acquisition resulted
in negative goodwill, and accordingly, the Firm recorded an extraordinary gain. A preliminary gain of $1.9 billion was recognized at December 31, 2008. The final total
extraordinary gain that resulted from the Washington Mutual transaction was $2.0 billion. For additional information on these transactions, see Note 2 on pages 166–170 of this
Annual Report.
(e) The calculation of 2009 earnings per share (“EPS”) and net income applicable to common equity includes a one-time, noncash reduction of $1.1 billion, or $0.27 per share,
resulting from repayment of U.S. Troubled Asset Relief Program (“TARP”) preferred capital in the second quarter of 2009. Excluding this reduction, the adjusted ROE and ROTCE
were 7% and 11%, respectively, for 2009. The Firm views the adjusted ROE and ROTCE, both non-GAAP financial measures, as meaningful because they enable the comparability
to prior periods. For further discussion, see “Explanation and reconciliation of the Firm’s use of non-GAAP financial measures” on pages 64–66 of this Annual Report.