Bank Fees For Auto Loans

JPMorgan Chase Reports First-Quarter 2012 Net Income of $5.4 Billion, or $1.31 Per Share.

REVENUE(1) OF $27.4 BILLION, UP 24% OVER PRIOR QUARTER, UP 6% OVER
PRIOR YEAR

SUPPORTED CONSUMERS, BUSINESSES AND COMMUNITIES

* Solid performance across most businesses, with particular strength
in Investment Bank and improvement in Mortgage Banking

* Investment Bank reported strong performance driven by continued
leadership and improved market conditions; maintained #1 ranking for
Global Investment Banking Fees year-to-date

* Consumer & Business Banking average deposits up 8% and
Business Banking loan originations up 8% compared with prior year

* Mortgage Banking application volume up 33% compared with prior
year

* Credit card sales volume(2) up 12% compared with prior year

* Commercial Banking reported seventh consecutive quarter of loan
growth, up 16% compared with prior year

* Treasury & Securities Services reported record assets under

custody

 of $17.9
trillion

, up 8% compared with prior year

* Asset Management reported record assets under supervision of $2.0
trillion, up 6% compared with prior year

* Fortress balance sheet strengthened:
Basel I

 Tier 1 common(1) of
$128 billion, or 10.4%; estimated
Basel
  or  , Fr. Bâle, canton, N Switzerland, bordering on France and Germany.
 III Tier 1 common(1) of 8.4%

* Increased quarterly common stock dividend to $0.30 per share;
authorized new $15 billion common equity
repurchase
  
tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es
To buy (something) again.

n.
The act of buying something that one previously sold or owned.

Noun 1.
 program, of which up
to $12 billion of repurchases is approved for 2012

* First-quarter results included the following significant items:

* $1.8 billion
pretax
  
adj.
Existing before tax deductions:

 adj [profit] →  
 benefit ($0.28 per share after-tax increase in
earnings) from reduced loan loss reserves, related to mortgage and
credit card

* $1.1 billion pretax benefit ($0.17 per share after-tax increase in
earnings) from the Washington Mutual
bankruptcy
 in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt’s assets equitably among creditors and, in most
 settlement, in Corporate

* $2.5 billion pretax expense ($0.39 per share after-tax reduction
in earnings) for additional
litigation

 reserves,
predominantly
  
adj.
1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant.

2.
 for
mortgage-related matters, in Corporate

* $0.9 billion
pretax loss

A loss reported before tax benefits are considered.
 ($0.14 per share after-tax reduction in
earnings) from
debit

 valuation adjustments (”
DVA

DVA DatenVerarbeitungsAnlage
DVA Defence Vetting Agency
DVA Dundee Voluntary Action
“) in the
Investment Bank, resulting from tightening of the Firm’s credit
spreads(3)

*
JPMorgan Chase

 Supported Consumers, Businesses and Our Communities

* Provided $62 billion of credit(2) to consumers in the first
quarter

— Issued new credit cards to 1.7 million people

— Originated over 200,000 mortgages

* Provided over $4 billion of credit to U.S. small businesses, up
35% compared with prior year

* Provided $118 billion of credit(2) to corporations in the first
quarter

* Raised $250 billion of capital for clients in the first quarter

* Nearly $13 billion of capital raised for and credit(2) provided to
780
nonprofit

 and government entities in the first quarter, including
states, municipalities, hospitals and universities

* Hired more than 3,400 U.S. veterans since the beginning of 2011

1 For notes on non-GAAP measures, including managed basis reporting,
see page 13.

2 For notes on financial measures, see pages 13 and 14.

3Whether positive or negative, the Firm does not consider DVA

reflective

 of the underlying operations of the company.

NEW YORK
 Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 — JPMorgan Chase & Co. (
NYSE

:
JPM

JPM Juan Pablo Montoya
JPM Jabatan Perdana Menteri
JPM Journal of Property Management
) today reported
first-quarter 2012 net income of $5.4 billion, compared with net income
of $5.6 billion in the first quarter of 2011. Earnings per share were
$1.31, compared with $1.28 in the first quarter of 2011.

Jamie Dimon

, Chairman and Chief Executive Officer, commented on
financial results: “The Firm reported strong revenue1 for the first
quarter of 2012 of $27.4 billion, up 24% compared with the prior quarter
and up 6% compared with prior year. While several significant items
affected our results, overall, the Firm’s performance in the first
quarter was solid. The Firm’s return on
tangible

 common equity1 for
the first quarter of 2012 was 16%, compared with 11% in the prior
quarter and 18% in the prior year.”

Dimon
 , the same as Dibon.
 continued: “We are pleased that our results for the
quarter reflected positive credit trends for our consumer real estate
and credit card portfolios. Estimated losses declined for these
portfolios, and we reduced the related loan loss reserves by a total of
$1.8 billion in the first quarter. However, with respect to our Mortgage
Banking business, we expect to see elevated levels of costs and losses
associated with mortgage-related issues for a while longer. Credit
trends across our wholesale portfolios were stable and continued to be
strong.”

Commenting on the balance sheet, Dimon said: “We strengthened
our fortress balance sheet, ending the first quarter with a strong Basel
I Tier 1 common ratio of 10.4%. We estimate that our Basel III Tier 1
common ratio was
approximately
  
adj.
1. Almost exact or correct:

2.
 8.4% at the end of the first
quarter.”

“Our strong balance sheet and earnings power allowed the Board
to increase our annual dividend to $1.20 per share and authorize a new
$15 billion equity repurchase program. The Company will constantly
evaluate its best and highest use of capital. We will repurchase equity
as deemed appropriate relative to our organic growth, investment
opportunities, capital retention needs, and the stock price.”

Dimon added: “JPMorgan Chase positively impacts the lives of
millions of people and the communities in which they live. We are
serving them each day, putting our resources and our voices to work on
their behalf. During the first quarter of 2012, the Firm provided
credit2 and raised capital of over $445 billion for our commercial and
consumer clients. We provided more than $4 billion of credit to U.S.
small businesses, up 35% compared with the prior year. We originated
more than 200,000 mortgages in the first quarter. To help struggling
homeowners, we have offered more than 1.3 million mortgage modifications
since 2009, and completed more than 490,000.”

Dimon concluded: “As we look toward the future, we continue to
build our businesses by investing in infrastructure, systems,
technology, and new products, and by adding bankers and offices around
the world. The strengths that are
embedded

 in this company — our
people, client relationships, product capabilities, technology, global
presence and fortress balance sheet — provide us with a foundation that
is rock solid and an ability to thrive regardless of what the future
brings.”

In the discussion below of the business segments and of JPMorgan
Chase as a Firm, information is presented on a managed basis. For more
information about managed basis, as well as other non-GAAP financial
measures used by management to evaluate the performance of each line of
business, see page 13. The following discussion compares the first
quarters of 2012 and 2011 unless otherwise noted.

INVESTMENT BANK (IB)

Discussion of Results:

Net income was $1.7 billion, down 29% from the prior year. These
results reflected lower net revenue and a lower benefit from the
provision for credit losses, partially offset by lower noninterest
expense.

Net revenue was $7.3 billion, compared with $8.2 billion in the
prior year. Investment banking fees were $1.4 billion (down 23%), which
consists of debt
underwriting

 fees of $818 million (down 16%), equity
underwriting fees of $276 million (down 27%), and advisory fees of $281
million (down 34%). Combined Fixed Income and Equity Markets revenue was
$6.0 billion, down 10% from the prior year. Credit Portfolio reported a
loss of $12 million.

Net revenue included a $907 million loss from DVA on certain
structured and
derivative
 see calculus.


derivative

In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function.
 liabilities resulting from the tightening of
the Firm’s credit spreads; this loss was composed of $352 million
in Fixed Income Markets, $130 million in Equity Markets and $425 million
in Credit Portfolio. Excluding the impact of DVA, net revenue was $8.2
billion and net income was $2.2 billion.

Excluding the impact of DVA, Fixed Income and Equity Markets
combined revenue was $6.4 billion, down 3% from the prior year, with
continued solid client revenue, and particularly strong results in
rates-related and equity products. Excluding the impact of DVA, Credit
Portfolio net revenue was $413 million, reflecting net interest income
and fees on retained loans, and net credit valuation adjustment
(“CVA”) gains.

The provision for credit losses was a benefit of $5 million,
compared with a benefit in the prior year of $429 million. The ratio of
the allowance for loan losses to end-of-period loans retained was 2.06%,
compared with 2.52% in the prior year.

Noninterest expense was $4.7 billion, down 6% from the prior year,
driven by lower compensation expense. The ratio of compensation to net
revenue was 35%, excluding DVA.

Key
Metrics
 Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM.
 and Business Updates:

((All comparisons refer to the prior-year quarter except as noted,
and all rankings are
according to

prep.
1. As stated or indicated by; on the authority of:

2. In keeping with:

3.
 Dealogic) )

* Ranked #1 in Global Investment Banking Fees for the quarter ended
March 31, 2012.

* Ranked #1 in Global Debt, Equity and Equity-related; #1 in Global
Announced M&A #1 in Global Long-Term Debt; #2 in Global Syndicated
Loans; and #3 in Global Equity and Equity-related, based on volume, for
the quarter ended March 31, 2012.

* Return on equity was 17% on $40.0 billion of average allocated
capital (23% excluding DVA).

* End-of-period total loans were $72.7 billion, up 26% from the
prior year and 2% from the prior quarter. Nonaccrual loans of $877
million were down 67% from the prior year.

RETAIL
FINANCIAL SERVICES

 (
RFS

)

Discussion of Results:

Net income was $1.8 billion, compared with a net loss of $399
million in the prior year.

Net revenue was $7.6 billion, an increase of $2.2 billion, or 40%,
compared with the prior year. Net interest income was $3.9 billion, down
by $161 million, or 4%, largely reflecting lower loan balances due to
portfolio
runoff

. Noninterest revenue was $3.7 billion, an increase of
$2.3 billion, driven by higher mortgage fees and related income,
partially offset by lower
debit card
 card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser’s checking account. They can also be used at automated teller machines for withdrawing cash from the user’s checking account.
 revenue.

The provision for credit losses was a benefit of $96 million
compared with provision expense of $1.2 billion in the prior year and
$779 million in the prior quarter. The current-quarter provision
reflected lower net charge-offs and a $1.0 billion reduction of the
allowance for loan losses, due to lower estimated losses as mortgage

delinquency

 trends improved. The prior-year provision for credit losses
reflected higher net charge-offs; the prior-quarter provision reflected
a net reduction of $230 million in the allowance for loan losses.

Noninterest expense was $5.0 billion, an increase of $109 million,
or 2%, from the prior year.

Consumer & Business Banking reported net income of $774 million,
a decrease of $119 million, or 13%, compared with the prior year.

Net revenue was $4.3 billion, down 4% from the prior year. Net
interest income was $2.7 billion, relatively flat compared with the
prior year, driven by the effect of higher deposit balances,
predominantly offset by the impact of lower deposit spreads. Noninterest
revenue was $1.6 billion, a decrease of 10%, driven by lower debit card
revenue, reflecting the impact of the Durbin Amendment.

The provision for credit losses was $96 million, compared with $119
million in the prior year. Net charge-offs were $96 million (2.19% net
charge-off rate), compared with $119 million (2.86% net charge-off rate)
in the prior year.

Noninterest expense was $2.9 billion, up 2% from the prior year, due
to investments in sales force and new branch builds.

Key Metrics and Business Updates:

((All comparisons refer to the prior-year quarter except as noted)
)

* Average total deposits were $380.8 billion, up 8% from the prior
year and 3% from the prior quarter.

* Deposit margin was 2.68%, compared with 2.88% in the prior year
and 2.76% in the prior quarter.

* Checking accounts totaled 27.0 million, up 2% from the prior year
and 2% from the prior quarter.

* Number of branches was 5,541, an increase of 249 from the prior
year and 33 from the prior quarter. Chase Private Client locations were
366, an increase of 350 from the prior year and 104 from the prior
quarter.

* End-of-period Business Banking loans were $17.8 billion, up 5%
from the prior year and 1% from the prior quarter; originations were
$1.5 billion, up 8% from the prior year and 11% from the prior
quarter.

* Branch sales of credit cards were down 26% from the prior year and
7% from the prior quarter.

* Branch sales of investment products were flat compared with the
prior year and increased 41% from the prior quarter.

* Client investment assets, excluding deposits, were a record $147.1
billion, up 6% from the prior year and 7% from the prior quarter.

* Number of active mobile customers increased 42% compared with the
prior year and 2% compared with the prior quarter.

Mortgage Production and Servicing reported net income of $461
million, compared with a net loss of $1.1 billion in the prior year.

Mortgage production-related revenue, excluding repurchase losses,
was $1.6 billion, an increase of $722 million, or 80%, from the prior
year, reflecting wider margins, driven by market conditions and mix, and
higher volumes, due to a
favorable
  
adj.
1. Advantageous; helpful:

2. Encouraging; propitious:

3.
 
refinancing

 environment, including
the impact of the Home Affordable
Refinance

 Programs (“HARP”).
Production expense was $573 million, an increase of $149 million, or
35%, reflecting higher volumes and a strategic shift to the Retail
channel, including branches, where
origination

 costs and margins are
traditionally higher. Repurchase losses were $302 million, compared with
repurchase losses of $420 million in the prior year. Mortgage production
reported
pretax income

Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm’s performance than aftertax income because taxes in one period may be influenced by activities in earlier periods.
 of $744 million, an increase of $691 million from
the prior year.

Mortgage servicing-related revenue was $1.2 billion, a decline of 5%
from the prior year, as a result of a decline in third-party loans
serviced.
Mortgage servicing

 rights (”
MSR

MSR Mountain Safety Research
MSR Magnetic Stripe Reader
MSR Egyptair  
“) asset amortization
was $351 million, compared with $563 million in the prior year; this
reflected reduced amortization as a result of a lower MSR asset value.
Servicing expense was $1.2 billion, a decrease of $175 million, or 13%,
from the prior year. Foreclosure-related matters, including adjustments
for the global settlement with federal and state agencies, resulted in
approximately $200 million of additional servicing expense. The
prior-year servicing expense included approximately $650 million related
to foreclosure-related matters. MSR risk management income was $191
million, compared with a loss of $1.2 billion in the prior year. The
prior year MSR risk management loss included a $1.1 billion decrease in
the fair value of the MSR asset for the estimated impact of increased
servicing costs. Mortgage servicing reported a pretax loss of $160
million, compared with a pretax loss of $1.9 billion in the prior
year.

Key Metrics and Business Updates:

((All comparisons refer to the prior-year quarter except as noted)
)

* Record production-related revenue drove record production pretax
income of $744 million ($1.0 billion excluding repurchases).

* Mortgage loan originations were $38.4 billion, up 6% from the
prior year and relatively flat compared with the prior quarter; Retail
channel originations (branch and direct to consumer) were $23.4 billion,
up 11% from the prior year and relatively flat compared with the prior
quarter.

* Mortgage loan application volumes were $59.9 billion, up 33% from
the prior year and 14% from the prior quarter, primarily reflecting
refinancing activity.

* Total third-party mortgage loans serviced was $884.2 billion, down
7% from the prior year and 2% from the prior quarter.

Real Estate Portfolios reported net income of $518 million, compared
with a net loss of $162 million in the prior year. The increase was
driven by a benefit from the provision for credit losses, reflecting an
improvement in credit trends.

Net revenue was $1.1 billion, down by $83 million, or 7%, from the
prior year. The decrease was driven by a decline in net interest income,
resulting from lower loan balances due to portfolio runoff.

The provision for credit losses reflected a benefit of $192 million,
compared with provision expense of $1.1 billion in the prior year. The
current-quarter provision benefit reflected lower charge-offs as
compared with the prior year and a $1.0 billion reduction of the
allowance for loan losses due to lower estimated losses as delinquency
trends improved. Home equity net charge-offs were $542 million (2.85%
net charge-off rate1), compared with $720 million (3.36% net charge-off
rate1) in the prior year. Subprime mortgage net charge-offs were $130
million (5.51% net charge-off rate1), compared with $186 million (6.80%
net charge-off rate1). Prime mortgage, including option ARMs, net
charge-offs were $131 million (1.21% net charge-off rate1), compared
with $161 million (1.32% net charge-off rate1).

Nonaccrual loans were $7.0 billion, compared with $7.0 billion in
the prior year and $5.9 billion in the prior quarter. Based upon

regulatory
  
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.

2.
 guidance issued in the first quarter of 2012, the Firm began
reporting performing junior liens that are subordinate to nonaccrual
senior liens as nonaccrual loans. Nonaccrual loans reported at the end
of the first quarter included $1.6 billion of such junior liens, of
which $1.4 billion were current. Excluding these junior liens,
nonaccrual loans would have been $5.5 billion at the end of the first
quarter. Prior periods have not been restated for this reporting
change.

Noninterest expense was $419 million, up by $64 million, or 18%,
from the prior year due to an increase in servicing costs.

Key Metrics and Business Updates:

((All comparisons refer to the prior-year quarter except as noted)
)

* Average home equity loans were $99.1 billion, down by $12.0
billion.

* Average mortgage loans were $95.5 billion, down by $12.3
billion.

* Allowance for loan losses was $13.4 billion, compared with $14.7
billion in the prior year.

CARD SERVICES

 & AUTO (Card)

Discussion of Results:

Net income was $1.2 billion, a decrease of $351 million, or 23%,
compared with the prior year. The decrease reflected a higher provision
for credit losses, driven by a lower reduction in the allowance for loan
losses compared with the prior year.

Net revenue was $4.7 billion, a decrease of $77 million, or 2%, from
the prior year. Net interest income was $3.5 billion, down $281 million,
or 8%, from the prior year. The decrease was driven by lower average
loan balances and narrower loan spreads, partially offset by lower
revenue reversals associated with lower net charge-offs. Noninterest
revenue was $1.3 billion, an increase of $204 million, or 19%, from the
prior year. The increase was driven by lower partner revenue-sharing,
reflecting the impact of the Kohl’s portfolio sale on April 1,
2011, and higher net interchange income, partially offset by lower
revenue from fee-based products.

The provision for credit losses was $738 million, compared with $353
million in the prior year and $1.1 billion in the prior quarter. The
current-quarter provision reflected lower net charge-offs and a
reduction of $750 million to the allowance for loan losses due to lower
estimated losses. The prior-year provision included a reduction of $2.0
billion to the allowance for loan losses. The Credit Card net charge-off
rate1 was 4.37%, down from 6.81% in the prior year and up from 4.29% in
the prior quarter; and the 30+ day delinquency rate1 was 2.55%, down
from 3.55% in the prior year and 2.81% in the prior quarter. The Auto
net charge-off rate was 0.28%, down from 0.40% in the prior year and
0.37% in the prior quarter.

Noninterest expense was $2.0 billion, an increase of $112 million,
or 6%, from the prior year, primarily due to an expense related to a
non-core product that is being exited.

Key Metrics and Business Updates:

((All comparisons refer to the prior-year quarter except as noted)
)

* Return on equity was 29% on $16.5 billion of average allocated
capital.

* Credit Card average loans were $127.6 billion, a decrease of $4.9
billion, or 4%, from the prior year and $1.0 billion, or 1%, from the
prior quarter.

* Credit Card sales volume2 was $86.9 billion, up 12% compared with
the prior year and down 7% compared with the prior quarter; excluding
the impact of the Kohl’s portfolio sale, sales volume was up 15%
compared with the prior year.

* Credit Card new accounts of 1.7 million were opened.

* Card Services net revenue as a percentage of average loans was
12.22%, compared with 12.18% in the prior year and 12.26% in the prior
quarter.

* Merchant processing volume was $152.8 billion, up 22% from the
prior year and flat compared with the prior quarter; total transactions
processed were 6.8 billion, up 21% from the prior year and flat compared
with the prior quarter.

* Average auto loans were $47.7 billion, flat compared with the
prior year and up 2% from the prior quarter.

* Auto originations were $5.8 billion, up 21% from the prior year
and 18% from the prior quarter.

COMMERCIAL BANKING (CB)

Discussion of Results:

Net income was $591 million, an increase of $45 million, or 8%, from
the prior year. The improvement was driven by an increase in net
revenue, partially offset by higher expense and an increase in the
provision for credit losses.

Net revenue was $1.7 billion, an increase of $141 million, or 9%,
from the prior year. Net interest income was $1.1 billion, up by $86
million, or 8%, driven by growth in liability and loan balances, largely
offset by spread
compression
 external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all.
 on liability and loan products. Noninterest
revenue was $557 million, up by $55 million, or 11%, compared with the
prior year, driven by increased deposit- and lending-related fees,
higher investment banking revenue, increased community development
investment-related revenue, and higher other revenue.

Revenue from Middle Market Banking was $825 million, an increase of
$70 million, or 9%, from the prior year. Revenue from Commercial Term
Lending was $293 million, an increase of $7 million, or 2%, compared
with the prior year. Revenue from Corporate Client Banking was $337
million, an increase of $47 million, or 16%, from the prior year.
Revenue from Real Estate Banking was $105 million, an increase of $17
million, or 19%, from the prior year.

The provision for credit losses was $77 million, compared with $47
million in the prior year. Net charge-offs were $12 million (0.04% net
charge-off rate), compared with net charge-offs of $31 million (0.13%
net charge-off rate) in the prior year and $99 million (0.36% net
charge-off rate) in the prior quarter. The allowance for loan losses to
end-of-period loans retained was 2.32%, down from 2.59% in the prior
year and 2.34% in the prior quarter. Nonaccrual loans were $1.0 billion,
down by $951 million, or 49%, from the prior year, as a result of
commercial real estate repayments and loan sales; and were down $49
million, or 5%, from the prior quarter.

Noninterest expense was $598 million, an increase of $35 million, or
6%, from the prior year, primarily reflecting higher headcount-related2
expense.

Key Metrics and Business Updates:

((All comparisons refer to the prior-year quarter except as noted)
)

* Return on equity was 25% on $9.5 billion of average allocated
capital.

* Overhead ratio was 36%, down from 37%.

* Gross investment banking revenue (which is shared with the
Investment Bank) was $339 million, up by $30 million, or 10%.

* Average loan balances were $113.8 billion, up by $14.2 billion, or
14%, from the prior year and $3.9 billion, or 4%, from the prior
quarter.

* End-of-period loan balances were $115.8 billion, up by $15.7
billion, or 16%, from the prior year and $3.8 billion, or 3%, from the
prior quarter.

* Average liability balances were $200.2 billion, up by $44.0
billion, or 28%, from the prior year and up by $1.0 billion, or 1%, from
the prior quarter.

TREASURY & SECURITIES SERVICES (
TSS

)

Discussion of Results:

Net income was $351 million, an increase of $35 million, or 11%,
from the prior year. Compared with the prior quarter, net income
increased by $101 million, or 40%, primarily driven by a higher Global
Corporate Bank (”
GCB

GCB General Council of the Bar of South Africa
GCB Grand Cross of the Bath
“) credit
allocation

 benefit and the
absence of prior-quarter expense related to exiting unprofitable
business.

Net revenue was $2.0 billion, an increase of $174 million, or 9%,
from the prior year.
Treasury Services

 (“TS”) net revenue was
$1.1 billion, an increase of $161 million, or 18%. The increase was
driven by higher deposit balances and higher trade finance loan volumes.
Worldwide Securities Services net revenue was $962 million, an increase
of 1% compared with the prior year.

TSS generated firmwide net revenue2 of $2.7 billion, including $1.7
billion by TS; of that amount, $1.1 billion was recorded in TS, $602
million in Commercial Banking, and $69 million in other lines of
business. The remaining $962 million of firmwide net revenue was
recorded in Worldwide Securities Services.

Noninterest expense was $1.5 billion, an increase of $96 million, or
7%, from the prior year. The increase was primarily driven by continued
expansion into new markets.

Key Metrics and Business Updates:

((All comparisons refer to the prior-year quarter except as noted)
)

* Pretax margin2 was 27%, compared with 26% in the prior year and
19% in the prior quarter.

* Return on equity was 19% on $7.5 billion of average allocated
capital.

* Average liability balances were $357.0 billion, up 34%.

* Assets under custody were a record $17.9 trillion, up 8%.

* End-of-period trade finance loans were $35.7 billion, up 40%.

ASSET MANAGEMENT (AM)

Discussion of Results:

Net income was $386 million, a decrease of $80 million, or 17%, from
the prior year. These results reflected higher noninterest expense and
lower net revenue.

Net revenue was $2.4 billion, a decrease of $36 million, or 1%, from
the prior year. Noninterest revenue was $1.9 billion, down by $133
million, or 7%, primarily due to lower credit-related fees and lower
performance fees, partially offset by net inflows to products with
higher margins and higher valuations of seed capital investments. Net
interest income was $483 million, up by $97 million, or 25%, due to
higher deposit and loan balances, partially offset by narrower deposit
spreads.

Revenue from Private Banking was $1.3 billion, down 3% from the
prior year. Revenue from Institutional was $557 million, up 3%. Revenue
from Retail was $534 million, down 2%.

Assets under supervision were a record $2.0 trillion, an increase of
$105 billion, or 6%, from the prior year. Assets under management were a
record $1.4 trillion, an increase of $52 billion, or 4%, from the prior
year. Both increases were due to net inflows to long-term products and
the impact of higher market levels. Custody,
brokerage

, administration
and deposit balances were $631 billion, up by $53 billion, or 9%, due to
deposit and custody inflows.

The provision for credit losses was $19 million, compared with $5
million in the prior year.

Noninterest expense was $1.7 billion, an increase of $69 million, or
4%, from the prior year, due to increased headcount-related2
expense.

Key Metrics and Business Updates:

((All comparisons refer to the prior-year quarter except as noted)
)

* Pretax margin2 was 26%, down from 31%.

* Assets under management reflected net inflows of $45 billion for
the 12 months ended March 31, 2012. For the quarter, net outflows were
$8 billion, reflecting net outflows of $25 billion from liquidity
products, largely offset by inflows of $17 billion to long-term
products. Long-term product flows were positive for the twelfth
consecutive quarter.

* Assets under management ranked in the top two quartiles for
investment performance were 76% over 5 years, 74% over 3 years and 64%
over 1 year.

* Customer assets in 4 and 5 Star-rated funds were 42% of all rated
mutual
fund assets

.

* Assets under supervision were a record $2.0 trillion, up 6% from
the prior year and 5% from the prior quarter.

* Average loans were $59.3 billion, up 32% from the prior year and
8% from the prior quarter.

* End-of-period loans were $64.3 billion, up 38% from the prior year
and 12% from the prior quarter.

* Average deposits were $127.5 billion, up 34% from the prior year
and 5% from the prior quarter.

CORPORATE/PRIVATE EQUITY

Discussion of Results:

Net loss was $563 million, compared with net income of $722 million
in the prior year.

Private Equity reported net income of $134 million, compared with
net income of $383 million in the prior year. Net revenue of $254
million was down from $699 million in the prior year, due to the absence
of prior-year valuation gains on private investments. Noninterest
expense was $44 million, a decrease of $69 million from the prior
year.

Corporate reported a net loss of $697 million, compared with net
income of $339 million in the prior year. Net revenue of $1.4 billion
was driven by a $1.1 billion benefit from the Washington Mutual
bankruptcy settlement and securities gains of $449 million. Noninterest
expense of $2.7 billion was up from $449 million in the prior year,
primarily reflecting $2.5 billion of additional litigation reserves,
predominantly for mortgage-related matters.

JPMORGAN CHASE (JPM)(*)

(*) Presented on a managed basis. See notes on page 13 for further
explanation of managed basis. Net revenue on a U.S.
GAAP

See generally accepted accounting principles (GAAP).
 basis totaled
$26,712 million, $21,471 million, and $25,221 million for the first
quarter of 2012, fourth quarter of 2011, and first quarter of 2011,
respectively.

Discussion of Results:

Net income was $5.4 billion, down by $172 million, or 3%, from the
prior year. The decrease in earnings was driven by higher noninterest
expense, largely offset by higher net revenue.

Net revenue was $27.4 billion, up by $1.6 billion, or 6%, compared
with the prior year. Noninterest revenue was $15.6 billion, up by $1.8
billion, or 13%, from the prior year. The increase was driven by higher
mortgage fees and related income and a $1.1 billion benefit from the
Washington Mutual bankruptcy settlement, partially offset by lower
principal transaction revenue, driven by a $907 million loss from DVA.
Net interest income was $11.8 billion, down by $187 million, or 2%,
compared with the prior year.

The provision for credit losses was $726 million, down $443 million,
or 38%, from the prior year. The total consumer provision for credit
losses was $637 million, down $918 million from the prior year. The
decrease in the consumer provision reflected improved delinquency trends
across most consumer portfolios compared with the prior year, partially
offset by the effect of a lower net reduction in the allowance for loan
losses compared with the prior year. Consumer net charge-offs1 were $2.4
billion, compared with $3.6 billion in the prior year, resulting in net
charge-off rates of 2.60% and 3.77%, respectively. The wholesale
provision for credit losses was $89 million compared with a benefit of
$386 million; prior year credit costs reflected a reduction in loan loss
reserves due to an improvement in the credit environment. Wholesale net
charge-offs were $5 million, compared with $165 million in the prior
year, resulting in net charge-off rates of 0.01% and 0.30%,
respectively. The Firm’s allowance for loan losses to end-of-period
loans retained1 was 3.11%, compared with 4.10% in the prior year. The
Firm’s nonperforming assets totaled $11.7 billion at March 31,
2012, down from the prior-year level of $15.0 billion and up from the
prior-quarter level of $11.0 billion.

Noninterest expense was $18.3 billion, up 15% from the prior year,
driven by higher compensation and noncompensation expense, including
$2.5 billion of additional litigation reserves, predominantly for
mortgage-related matters.

Key Metrics and Business Updates:

((All comparisons refer to the prior-year quarter except as noted)
)

* Basel I Tier 1 Common ratio1 was 10.4% at March 31, 2012, compared
with 10.1% at
December
 see month.
 31, 2011, and 10.0% at March 31, 2011.

*
Headcount
 or head·count
n.
1. The act of counting people in a particular group.

2. The number of people counted in this way.

Noun 1.
 was 261,453, an increase of 18,524, or 8%.

1. Notes on non-GAAP financial measures:

2. Additional notes on financial measures:

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial
services firm with assets of $2.3 trillion and operations worldwide. The
firm is a leader in investment banking, financial services for consumers
and small businesses, commercial banking, financial transaction
processing, asset management and private equity. A component of the
Dow
Jones Industrial Average

, JPMorgan Chase & Co. serves millions of
consumers in the
United States
 officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world’s third largest country in population and the fourth largest country in area.
 and many of the world’s most
prominent corporate, institutional and government clients under its J.P.

Morgan
 American family of financiers and philanthropists.

Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking.
 and Chase brands. Information about JPMorgan Chase & Co. is
available at www.jpmorganchase.com.

JPMorgan Chase & Co. will host a conference call today at 8:30
a.m. (Eastern Time) to review first-quarter financial results. The
general public can access the call by dialing (866) 541-2724 or (877)
368-8360 in the U.S. and
Canada
 , independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of
, or (706) 634-7246 for international
participants. Please dial in 10 minutes prior to the start of the call.
The live audio webcast and presentation slides will be available at the
Firm’s website, www.jpmorganchase.com, under
Investor Relations

,
Investor Presentations.

A replay of the conference call will be available beginning at
approximately noon on April 13, 2012 through midnight, April 27, 2012 by
telephone at (855) 859-2056 or (800) 585-8367 (U.S. and Canada) or (404)
537-3406 (international); use Conference ID# 59781283. The replay will
also be available via webcast on www.jpmorganchase.com under Investor
Relations, Investor Presentations. Additional detailed financial,
statistical and business-related information is included in a financial
supplement. The earnings release and the financial supplement are
available at www.jpmorganchase.com.

This earnings release contains forward-looking statements within the
meaning of the
Private Securities Litigation Reform Act

 of 1995. These
statements are based on the current beliefs and expectations of JPMorgan
Chase & Co.’s management and are subject to significant risks
and uncertainties. Actual results may differ from those set forth in the
forward-looking statements. Factors that could cause JPMorgan Chase
& Co.’s actual results to differ materially from those
described in the forward-looking statements can be found in JPMorgan
Chase & Co.’s Annual Report on Form 10-K for the year ended
December 31, 2011, which has been filed with the Securities and Exchange
Commission and is available on JPMorgan Chase & Co.’s website (
http://investor.shareholder.com/jpmorganchase ) and on the Securities
and Exchange Commission’s website ( www.sec.
gov

 ). JPMorgan Chase
& Co. does not undertake to update the forward-looking statements to
reflect the impact of
circumstances

 or events that may arise after the
date of the forward-looking statements.