Jp Morgan Chase & Co. · NYSE:JPM

Jp Morgan Chase & — 2007 BancAnalysts Association of Boston Conference

31 slides from Jp Morgan Chase &'s conference presentation, Nov 9, 2007

  1. Slide 1: Retail Financial Services – 2007 BancAnalysts Association of Boston Conference

    N O V E M B E R 8 , 2 0 0 7 Charlie Scharf Chief Executive Officer, Retail Financial Services 2007 BancAnalysts Association of Boston Conference Exhibit 99.1

  2. Slide 2: Retail Financial Services results

    Financial results ($mm) Comments Credit Costs ($mm) Retail Financial Services results YTD YTD 3Q06 3Q07 $O/(U) Revenue¹ $11,097 $12,664 $1,567 Credit Costs 1,559 (1,260) Expense¹ 6,636 7,360 (724) Net Income $2,495 $2,283 ($212) Regional Banking $2,265 $1,930 ($335) Mortgage ($51) $107 $158 Auto Fin

  3. Slide 3: JPMorganChase ©

    JPMorganChase © SONGNEINGD NOESOd 1b- MOLL SOLE Shie PRDE

  4. Slide 4: Consumer real estate exposure balances

    Balances Consumer real estate exposure Prime warehouse loans include prime mortgage loans originated with the intent to sell, which, for new originations on or after January 1, 2007, were accounted for at fair value under FAS 159. These loans, classified as Trading Assets on the Consolidated Balance

  5. Slide 5: Key credit statistics

    Key credit statistics Credit performance 3Q06 4Q06 1Q07 2Q07 3Q07 Home Equity Average Outstandings ($B) $78.8 $84.2 $86.3 $89.2 $91.8 Net Charge-offs ($mm) $29 $51 $68 $98 $150 Net Charge-off Rate 0.15% 0.24% 0.32% 0.44% 0.65% Total Allowance for Loan Losses ($mm) $1,306 $1,392 $1,453 $1,772 $2,105

  6. Slide 6: Peer trend comparison: home equity net charge-offs

    Peer trend comparison 0.18% 0.17% 0.07% 0.02% 0.15% 0.16% 0.06% 0.05% 0.08% 0.32% 0.43% 0.08% 0.20% 0.51% 0.65% 0.83% 0.20% 0.70% 1.59% JPM WFC BAC WM CFC 1Q06 3Q06 1Q07 3Q07 Home Equity net charge-off trends Source: Company reports; home equity as defined by each company

  7. Slide 7: Peer trend comparison: home equity nonperforming loans

    Peer trend comparison 0.60% 0.31% 0.21% 0.18% 0.50% 0.30% 0.26% 0.30% 0.40% 0.52% 0.34% 0.40% 0.53% 0.90% 0.62% 0.32% 0.76% 0.86% 1.00% JPM WFC BAC WM CFC 1Q06 3Q06 1Q07 3Q07 Home Equity nonperforming loan trends Source: Company reports; home equity and NPL as defined by each company

  8. Slide 8: Losses by CLTV

    Losses by CLTV Prime Home Equity – credit issues CLTV % 1Q07 2Q07 3Q07 < 0.05% 0.04% 0.05% 0.08% 0.10% 0.13% 80 – 90 0.12% 0.12% 0.18% 0.32% 0.33% 0.60% 90 – 95 0.20% 0.17% 0.29% 0.40% 0.60% 1.23% > 0.92% 0.71% 0.79% 1.14% 1.54% 2.08% Total 0.16% 0.13% 0.17% 0.27% 0.35% 0.53% Note: CLTV at originati

  9. Slide 9: Loss rates for key markets

    Loss rates for key markets Prime Home Equity – credit issues ¹ House price change is based on OFHEO HPI between September 2006 and September 2007 Declining housing prices are a key determinant of loss rates -9/07 House Price Chang e YTD 3Q07 Texas 5.1% 0.09% 0.09% 0.14% Illinois 2.4% 0.09% 0.13% 0.1

  10. Slide 10: Prime home equity origination profile by channel

    Banking Center Channel¹ Broker Channel¹ YTD 3Q07 Origination ($B) $8.5 $14.6 $15.9 $13.7 $9.7 Weighted Avg FICO Weighted Avg CLTV 78% 78% 80% 81% 82% % CLTV >90 11% 16% 20% 27% 31% % CA and FL 51% 50% 45% 44% 44% Prime Home Equity – origination profile YTD 3Q07 Origination ($B) $14.3 $16.4 $17.5 $15

  11. Slide 11: Cumulative loss rates by months on books – Banking Center Channel

    -0.01% 0.09% 0.19% 0.29% 0.39% 0.49% 0.59% Cumulative loss rates by months on books as of 9/30/2007 Prime Home Equity - Banking Center Channel 1Q06 1H05 2H05 2Q06 3Q06 4Q06 1Q07 2Q07 # of months on books

  12. Slide 12: Cumulative loss rates by months on books – Broker Channel (9/30/2006)

    0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% Cumulative loss rates by months on books as of 9/30/2006 Prime Home Equity - Broker Channel 1Q06 1H05 2H05 2Q06 # of months on books 2H05

  13. Slide 13: Cumulative loss rates by months on books – Broker Channel (12/31/2006)

    0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% Cumulative loss rates by months on books as of 12/31/2006 Prime Home Equity - Broker Channel 1Q06 1H05 2H05 2Q06 3Q06 # of months on books

  14. Slide 14: Cumulative loss rates by months on books – Broker Channel (9/30/2007)

    0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% Cumulative loss rates by months on books as of 9/30/2007 Prime Home Equity - Broker Channel 2H05 1H05 1Q06 2Q06 # of months on books 3Q06 1Q07 2Q07 4Q06

  15. Slide 15: Changes and impacts: home equity credit underwriting

    Changes and impacts Home Equity credit underwriting Changed maximum CLTV to 90% in broker channel — Less than 90% CLTV in certain states Eliminated stated income across wholesale channel Eliminated stated income with debt-to-income over 50% across all channels Investor/second homes CLTV capped at 80

  16. Slide 16: JPMorganChase ©

    JPMorganChase © SONGNEINGD NOESOd 1b- MOLL SOLE Shie PRDE

  17. Slide 17: Market share - production; expanded distribution capability

    Market share - production Expanded distribution capability 3Q06 3Q07 $ Amt Rank % Share $ Amt Rank % Share YoY Change CFC 116.6 15.4% 94.6 16.6% (19)% WFC 77.3 10.2% 68.1 12.0% (12)% JPM 42.7 5.7% 51.1 9.0% 20% BAC 42.4 5.6% 48.0 8.4% 13% C 48.8 6.5% 45.2 7.9% (7)% All others in top 10 136.0 18.0% 1

  18. Slide 18: JPMorganChase ©

    JPMorganChase © SONGNEINGD NOESOd 1b- MOLL SOLE Shie PRDE

  19. Slide 19: 3Q07 key statistics and branch banking growth drivers

    3Q07 Key statistics 1 Net Income ($mm) 3Q06 4Q06 1Q07 2Q07 3Q07 Consumer & Business Banking $498 $490 $506 $585 $591 Loan Portfolio/Other Total $744 $619 $690 $629 $611 Branch Banking profitability and growth drivers Average deposits of $205B, up 10% 3,096 branches, up by 419; 8,943 ATMs, up by 1,11

  20. Slide 20: Priorities

    Priorities Branch Banking Managing margin through the cycle Continue to grow branch presence Growth in salesforce Growth in production and sales Bank of New York update

  21. Slide 21: Regional Banking: managing margin through the cycle

    Balance sheet mix and margin Balance sheet mix and margin ($mm) Fed Funds 5.25% 5.25% 5.25% 5.25% 4.75% $2,299 $2,296 $2,325 $2,229 $2,107 3Q06 4Q06 1Q07 2Q07 3Q07 1,000 1,500 2,000 2,500 Checking Savings Time Loan Balances Regional Banking: managing margin through the cycle 3Q06 does not include BN

  22. Slide 22: Retail Banking deposit margin

    Retail Banking d eposit margin 2.75% 2.73% 2.73% 2.73% 2.73% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3Q06 4Q06 1Q07 2Q07 3Q07 Managing deposit margin Manage customer dollars in total to optimize economics as dollars shift between investment alternatives Actively introduce new products to meet changing c

  23. Slide 23: New branches

    New branches New build investment Targeting 130-140 new branches in 2007; 125–150 branches annually Focused on expansion in major footprint markets YTD 3Q07 Total Metro NY — Chicago Arizona Texas Michigan Colorado Other Total

  24. Slide 24: Salesforce growth

    Quarterly trend Highlights Adding sales specialists and bankers Loan officers Investment sales reps Business banking relationship managers Optimizing support staff in the branches Reduction in same-store tellers from 4.9 to 4.3 tellers per branch since 12/31/04 The personal banker to teller ratio ex

  25. Slide 25: Growth in cross-sell

    Mortgage sales ($B) Credit cards (# units in 000s) Highlights Investment sales ($B) 1,068 3Q05 YTD 3Q06 YTD 3Q07 YTD $8 $6 $5 3Q05 YTD 3Q06 YTD 3Q07 YTD Growth in cross-sell Deepening customer relationships Same store production (3Q07 vs 3Q06): Credit card sales up 61% Mortgage originations up 18% I

  26. Slide 26: Developing and deepening customer relationships

    Total core retail households 1 New retail customers after 90 days Developing and deepening customer relationships Branch based households (i.e., no credit card only or out of footprint lending) Total Households Checking Households With Credit Card With Online Banking With Online Billpay Multi Produc

  27. Slide 27: Sales through inbound call center and online banking

    Credit cards Sales per 1,000 calls Online banking Sales through inbound call center Note: 2003 data includes ONE only

  28. Slide 28: BNY – before and after

    Before After BNY – before and after

  29. Slide 29: BNY – before and after

    Before After BNY – before and after

  30. Slide 30: Bank of New York – integration timeline

    1Q07 2Q07 3Q07 4Q07 Bank of New York – integration timeline Extend branch hours Training System conversions Sales campaigns Facility and equipment upgrade Job family mapping Salesforce growth Sales management process Rebranding Credit card/debit card reissue Chase incentive program implemented Branc

  31. Slide 31: Growth in BNY cross-sell

    Credit Cards¹ (# units) New Checking Accounts¹ Investment Sales¹ ($mm) Mortgage and Home Equity¹ ($mm) Growth in BNY cross-sell 2005 BNY 4Q06 1Q07 2Q07 3Q07 Target 2008 2005 BNY 4Q06 1Q07 2Q07 3Q07 Target 2008 2005 BNY 4Q06 1Q07 2Q07 3Q07 Target 2008 2005 BNY 4Q06 1Q07 2Q07 3Q07 Target 2008 Sales pe

J P Morgan Chase & — 2007 BancAnalysts Association of Boston Conference on 6ix