4QFY 2001 Financial Results

1
Sanford C. Bernstein Strategic Decisions
Conference
William B. Harrison, Jr., Chairman and CEO Dina
Dublon, Chief Financial Officer June 6, 2002
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 Quarterly Report on Form 10-Q
  for the quarter ended March 31, 2002 and in the
  2001 Annual Report on Form 10-K, 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.

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Strategy and execution

• Where we are today
• Diversified
• Winning with the client
• Financial discipline

4
Diversified franchise
contribution of 1Q02 total operating revenues
ROE

22
16
19
JPMorgan Partners
8
Investment Bank
Retail Middle Mkt Financial Svcs
Treasury Securities Svcs
Investment Mgmt Private Bkg
5
JPMorgan Partners
As of 3/31/02
6
Retail Middle Market
( in millions, operating basis)
O(U) FY001
O(U) 1Q01
1Q02
FY011
Revenue 3,131 18 11,191 8 Expense 1,555 13 5,
753 5 Credit Costs 726 22 2,872 37 Earnings 526
25 1,601 (7)
Overhead Ratio 50 52 51 53 ROE 22 20 18 20
1 Restated to conform to current methodologies
7
Leadership in Retail Middle Market gaining
share
8
Investment Bank
( in millions, operating basis)
O(U) FY001
O(U) 1Q01
1Q02
FY011
Revenue 3,620 (16) 14,675 (11) Expense 2,116 (
17) 8,817 (16) Credit Costs 282 197 1,147 341
Earnings 755 (27) 2,897 (19)
Overhead Ratio 58 59 60 64 ROE 16 21 15
18
1 Restated to conform to current methodologies
2000 also pro-forma Flemings
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Investment Bank peers - 1Q02 results
( in billions)
Goldman Sachs1
JPM IB
Morgan Stanley3
Citi2
Reported Revenue 3.6 2.2 4.4
3.8 Operating Earnings 0.8 0.5 0.9 0.5
Change vs. 1Q01 Reported Revenue (16) (36) (
14) (21) Operating Earnings
(27) (41) (23) (32)
1 Global Capital Markets segment excluding
principal investments 2 Global Corporate Finance
segment 3 Securities segment excluding principal
investments
10
Use of balance sheet
( in billions)
139
3.6
105
0.9
11
Client reach

• Strong relationships with over 90 of Fortune
  1000 companies in US and over 85 of the FTSE 100
  
• 1,500 clients generated over 1 million each in
  revenue in 2001
• In 2002, number of clients using 2 products
  increased 30 over 2001

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Leadership across the debt spectrum
1Q02
FY01
Global Syndicated Loans 1 1 Global Investment
Grade 2 2 Global Asset-backed 2 3 Global High
Yield 5 4 US Syndicated Loans 1 1 US
Asset-backed 2 3 Latin American Debt 2 1 Asia
Bonds 1 2 All Euro-denominated 4 3
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Building our platform
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Global diversification
Breakdown of 2001 revenue by region
Global wholesale1
Investment Bank
22 billion
15 billion
1 IB, Investment Management Private Banking,
Treasury and Securities Services
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Global product leadership
16
Merger execution

• Strategy
• Clients
• Management
• Senior level retention
• Organizational announcements

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Strategy and execution

• Where we are today
• Diversified
• Winning with the client
• Financial discipline

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Financial discipline

• Recent results
• Risk management
• Expense control
• Capital position

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Operating results a challenging period
1 Adjusted for FAS 142 impact
20
JPMorgan Partners private equity gains
1Q02 (255mm) (0.12) EPS
2001
1999
2000
Contribution to EPS
0.88 0.12 (0.57)
21
JPMP cash flows
( in billions)
2001
Accounting revenue (1.2) Cash Flow Sales
proceeds Return of principal 1.4 Realized
gains 1.1 Total sales proceeds 2.5 Investment
(direct 3rd party funds) (1.5) Net cash
flow 1.0
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Nonperforming assets Loan credit costs
( in millions)
( in billions)
4.3
1Q02
4Q01
3.9
Total charge-offs 1,074 1,082 Reserve
build 0 650 Total credit costs 1,074 1,732
3.2
2.8
2.2
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Credit statistics peer comparison
(As of 3/31/02)
Peer Group1
JPM
Commercial Loans 102B 114B Change from
1Q01 (10) (3) Commercial Net Charge-off Ratio
2001 - 1Q02 0.95 1.06 NPL to Total Loans
1.4 1.6 Commercial Loans to Total
Assets 14 30
1 Peer group includes Citigroup, Bank of America,
Wachovia, Wells Fargo, Bank One, and Fleet Boston
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Derivative exposure
Ratings breakdown after collateral
Derivative counterparty exposure
24tn
AAA/AA 41
A 19
BBB 20
Below BBB 20
Collateral held by JPMorgan
Collateral
63
Note All figures in billion as of March 2002
Notional in trillion
Source JPMorgan
25
Commercial paper back-up commitments
( in billions as of 3/31/02)
Total 110
Corporate A3P3 2
2
Corporate A2P2 20
22
Corporate A1P1 43
48
38
Asset-backed A1P1 35
26
Usage under CP back-up
3/31
12/31
2002
2001
2000
1999
1997
1998
27
Operating expenses
( in billions)
4.9
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Focus on improving operating leverage
Long-term Target
1Q02
Overhead ratio
Investment Bank 58 under 60 Retail Middle
Market 50 under 50 Investment Mgmt Private
Bkg 75 under 70 Treasury Security Services
77 under 68

• Long-term targets relevant to current business
  mix and subject to revenue environment

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Balance sheet and capital ratios
( in billions)
Tier 1 Capital Ratio
Total assets 714 694 713

• Managing to high Tier 1 ratio - will resume
  repurchases when free capital generation
  accelerates

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2002 and beyond

• Strategically well positioned
• Focus on delivering improved returns today and
  creating long-term shareholder value
• Managing risks
• Building operating leverage
• Gaining share with clients
• One firm. One team.

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