P1246341512WuOTr

1
(No Transcript)
2

• This presentation contains statements that are
  forward-looking within the meaning of the Private
  Securities Litigation Reform Act of 1995. Such
  statements are based upon the current beliefs and
  expectations of JPMorgan Chase's management and
  are subject to significant risks and
  uncertainties. These risks and uncertainties
  could cause our results to differ materially from
  those set forth in such forward looking
  statements. Such risks and uncertainties are
  described in our Form 10-Q for the quarter ended
  March 31, 2002 and our Annual Report on Form 10-K
  for the year ended December 31, 2001, each filed
  with the Securities and Exchange Commission and
  available at the Securities and Exchange
  Commission's internet site (http//www.sec.gov),
  to which reference is hereby made.

3
Agenda

• Key franchise strengths
• Second quarter financial review
• Selected investor issues

4
Key franchise strengths

• Global footprint
• Diversified across wholesale consumer
• Leadership positions
• Financial strength

5
Global footprint
Breakdown of 2001 revenue by region
6
Diversified across financial services
contribution of total operating revenues
Retail Middle Mkt Financial Svcs
Treasury Securities Svcs.
Investment Mgmt Private Bkg.
Investment Bank
JPMorgan Partners
7
IB market shares
8
IB product breadth leadership
Numerous global top 3 leadership positions
9
Treasury Securities Services
10
Investment Management Private Banking
11
Retail Middle Market Financial Services
12
Agenda

• Key franchise strengths
• Second quarter financial review
• Selected investor issues

13
Second Quarter 2002

• Results comparable to 1st quarter
• Business performance
• Retail continues strong momentum
• Strong relative performance in IB fees but
  declines in trading drive IB results lower
• JPMP loss -- weakness in TMT

14
Operating results
( in millions)
15
Operating expenses
( in billions, except restructuring costs in
millions)
16
Net charge-offs and loss provision
17
Second quarter 2002 business highlights
( in billions)
18
JPMP private equity losses
( in millions)
MTM (20) (177) 80 Writedowns/Write-offs (216) (
250) (1,003) Realized Gains 111 172 100
Total Private Equity Losses (125) (255) (823)

• 70 of 2Q02 writedowns/write-offs in tech and
  telecom
• No turnaround yet

19
Agenda

• Key franchise strengths
• Second quarter financial review
• Selected investor issues

20
Selected investor issues

• Rating agency overview
• Credit
• Private equity
• Capital adequacy
• Funding

21
Rating agency overview

• Recent rating actions
• SP Affirmed ratings on 1/16/02
• Fitch Lowered Bank LT debt ratings to AA- on
  5/17/02
• Moodys Lowered ratings outlook to negative on
  7/25/02
• Current ratings (senior debt)
• Holding Company Bank
  Outlook
• SP AA- AA Negative
• Moodys Aa3 Aa2 Negative
• Fitch AA- AA- Negative

22
Credit
( in billions)
23
Credit statistics peer comparison
As of June 30, 2002
Peer Group1
JPM
NPL to Total Loans 1.2 1.5 NPA to Total
Assets 0.6 1.0 NPA to Equity 10.2 11.9
Commercial Net Charge-off Ratio 1.17 1.67
1 Peer group includes Citigroup, Wells Fargo,
Bank One, Bank of America, Wachovia and Fleet
24
JPMorgan Partners
As of June 30, 2002
Total JPMC book value 8.2BN
25
Capital adequacy
( in billions, except earnings/issuance in
millions)
Estimated
26
Funding

• Ample bank and holding company liquidity
• Raised over 10.1 billion in LT debt and capital
  issuance in first half of 2002
• Extended average maturity of LT debt and
  commercial paper
• Cash and liquid assets at the holding company are
  sufficient to meet all debt obligations over the
  next 12 months
• In addition, the bank subsidiaries have more than
  2 billion of dividend capacity

27
Financial priorities

• Credit ratings
• Credit and risk management
• Private equity risk
• Expense management
• Liquidity

28
(No Transcript)