JPMORGAN CHASE REPORTS FIRST-QUARTER 2009 NET INCOME
OF $2.1 BILLION, OR $0.40 PER SHARE
• Generated record firmwide revenue of $26.9 billion and pretax, pre-provision profit of $13.5 billion (on a managed basis 1):
- Record revenue and net income in the Investment Bank; #1 rankings for Global Debt, Equity and Equity-related volumes and Global Investment Banking Fees
- Solid growth in liability balances in Commercial Banking and Treasury & Securities Services
- Washington Mutual integration on track, driving Retail Banking growth in deposits by 62% and in checking accounts by 126%
- Net assets under management inflows of $119 billion over the past year in Asset Management
• Fortress balance sheet strengthened further:
- Tier 1 Capital of $137.2 billion, 11.3% Tier 1 Capital ratio (9.2% excluding TARP capital)
- $87.2 billion of tangible common equity1, 7.2% of risk-weighted assets
• Added $4.2 billion to credit reserves, bringing total to $28.0 billion, and firmwide loan loss coverage ratio to 4.53%2 as of March 31, 2009
• Continued lending and ongoing foreclosure prevention efforts:
- Extended approximately $150 billion in new credit to an estimated 4.5 million consumers (through credit cards, mortgages, auto and student loans), and to small and mid-sized businesses and large corporations
- Purchased nearly $34 billion of mortgage-backed and asset-backed securities
- Prevented almost 150,000 loan foreclosures since October 2008, bringing the total to over 400,000 since early 2007; opened the remaining 22 of our 24 new Chase Homeownership Centers and added over 650 loan counselors during the quarter
New York, April 16, 2009 – JPMorgan Chase & Co. (NYSE: JPM) today reported first-quarter 2009 net income of $2.1 billion, compared with net income of $2.4 billion in the first quarter of 2008. Earnings per share were $0.40, compared with $0.67 in the first quarter of 2008.
Jamie Dimon, Chairman and Chief Executive Officer, commented: “The firm earned more than $2 billion this quarter, despite extremely high credit costs of $10 billion (including $4 billion added to reserves), largely in Card Services and Retail Financial Services. Importantly, we generated record firmwide revenue; record revenue and net income in the Investment Bank; and benefited from underlying growth in Retail Banking, including increased deposits and checking accounts, higher mortgage refinancing volumes and excellent progress on the Washington Mutual integration. We also continued to see solid volumes and earnings across Commercial Banking, Treasury & Securities Services and Asset Management.”
As of March 31, 2009, the firm reported a Tier 1 Capital ratio of 11.3%, or 9.2% excluding Troubled Asset Relief Program (“TARP”) capital from the government. Tangible common equity compared to risk-weighted assets was 7.2%, the allowance for credit losses was $28 billion and the firmwide loan loss coverage ratio stood at 4.53%. Dimon commented: “We remain focused on capital and balance sheet strength. These levels of capital and reserves, combined with our significant pre-provision earnings power, enable us to withstand an even worse economic scenario than we face today.”
Dimon further remarked: “We are maintaining our efforts to help the economy recover. We continue to lend and have extended approximately $150 billion in new credit to consumer and corporate customers during the first quarter. We made additional progress on our foreclosure prevention program, opening the remaining 22 of our 24 new Chase Homeownership Centers during the quarter, and continued working towards our goal of preventing 650,000 foreclosures by the end of next year to help keep people in their homes. Throughout this crisis, we have remained committed to doing our part to help bring stability to the communities in which we operate and to the financial system overall.”
Looking ahead to the rest of 2009, Dimon concluded: “It is reasonable to expect additional increases to credit reserves if the economic environment worsens. Yet, we are confident that even a highly adverse economic scenario would not compromise our overall strength and stability – or our ability to enhance our franchises. We remain well-positioned to benefit when the economy recovers and remain committed to serving our clients, investing in our franchise and building a stronger company for the future.”

1 For notes on non-GAAP measures, see page 13.
2 Excludes the impact of purchased credit-impaired loans acquired as part of the Washington Mutual transaction.

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