Leadership Team

OPERATING COMMITTEE

1 7 Bill Daley 13 Gordon Smith 15 Bill Winters Chairman and Corporate Responsibility Card Services Investment Bank Chief Executive Officer 8 Ina Drew 14 16 Barry Zubrow 2 Chief Investment Office Asset Management Risk Management Chief Administrative Office 9 Todd Maclin 3 Steve Black Commercial Banking Investment Bank 10 Jay Mandelbaum 6 3 13 10 8 12 16 14 4 John Bradley Strategy & Marketing 2 15 Human Resources 7 11 Heidi Miller 1 4 11 5 Mike Cavanagh Treasury & Securities Services 9 5 Finance 12 Charlie Scharf 6 Steve Cutler Retail Financial Services Legal & Compliance Investment Bank

2007 Highlights and Accomplishments

JPMorgan is one of the world’s • Institutional Investor’s America’s • Record year-over-year revenue leading investment banks with Investment Bank of the Year. performance in: one of the most extensive client – fees, 19% growth; • Risk magazine’s: lists in the world. Our full platform – M&A advisory fees, 37% growth; – Derivatives House of the Year; enables us to develop some of the – Equity underwriting fees, 45% growth; – Best Derivatives House of the Past 20 most complete and innovative – and – Years; and financial solutions in the industry. – Equity markets revenue, 13% growth. – Best Credit Derivatives House – Pioneer We offer clients a full range of – and Modern Great. • Gross investment banking revenue services, including strategic advice, (a) from Commercial Banking clients up capital raising, restructuring, risk • #1 in global investment banking fees. 24% from 2006. management, market-making and • #1 in global loan syndications and research. We cover clients in more • Strong progress on growth initiatives, global high-yield bonds for the third year than 100 countries and have global including energy, emerging markets and in a row.(b) leadership positions in our key retail structured products. products. JPMorgan also commits • #2 in equity underwriting, up from #6 • Low subprime exposure relative to the its own capital to proprietary in 2006.(b) financial industry. investing and trading activities. • Revenue of more than $5 billion in We continue to strengthen • Outstanding first half offset by more equity underwriting and equity markets. our platform and develop new difficult second half with leveraged loan products to meet clients’ needs. and credit-related writedowns.

(a) Dealogic (b) Thomson Financial

“Despite the industry-wide challenges we faced during the second half of 2007, “The risk management lessons we still produced record we learned from the past full-year revenue in several paid dividends this year and areas. Looking ahead to helped us avoid some of 2008, we believe having the pitfalls that affected the a fortress balance sheet will industry. While we remain prove a sizable advantage cautious about the near-term at a time when capital is at outlook, we believe we are a premium.“ extremely well-positioned for the long term with strong Steve Black (left) client relationships, global co-CEO Investment Bank leadership positions and high capital ratios.”

Bill Winters (right) co-CEO Investment Bank Retail Financial Services

“Capitalizing on the strength of the Chase brand, we’ll continue to expand our branch and ATM network to increase convenience for our customers. We will strengthen our team of well-trained bankers and mortgage officers and improve our products to help customers handle their money, finance their homes, run their businesses and manage their investments, deepening their relationship with Chase.

“We have tightened our underwriting standards and are using our financial strength during this period of economic uncertainty to expand relationships, gain new customers and position ourselves for long-term growth across our businesses.“

Charlie Scharf – CEO Retail Financial Services

2007 Highlights and Accomplishments

Retail Financial Services serves • Opened 127 new branches (and a total • Expanded market share in mortgages consumers and businesses through of 528 since 2004) and added 680 ATMs and home equity to 11% in the fourth personal service at bank branches (2,536 since 2004) in major Chase markets. quarter, up from 6% a year earlier.(a) and through ATMs, online banking Originated $208 billion in home loans • Increased in-branch personal bankers, and telephone banking as well during the year even as we tightened business bankers, mortgage officers and as through loan offices, auto our underwriting standards. dealerships and school financial investment specialists by a combined aid offices. 2,568, or 23%, including additions from • Increased third-party mortgage servicing the 2006 acquisition of The Bank of portfolio 17% to $615 billion. Customers can use more than New York branches. 3,100 bank branches (fourth- • Increased active online customer base largest nationally), 9,100 ATMs (#3) • Increased in-branch sales of credit cards 21%; generated 258 million online and 290 mortgage offices. More 23%, mortgages 31% and investments 23%. transactions, including bill payment and than 13,700 branch salespeople electronic payment, an increase of 38%. • Increased checking accounts by 844,000, assist customers with checking or 8%, and deposits 3% to $221 billion. •Improved customer experience and and savings accounts, mortgages, sales through refurbishment, rebranding, home equity and business loans, • Increased number of households with core technology conversion and sales process and investments across the 17-state retail relationships 12% to 10.3 million. enhancements at former Bank of New footprint from New York to Arizona. • Increased business banking loan Consumers also can obtain loans York branches. originations 20% to $6.8 billion. through more than 14,500 auto dealerships and 5,200 schools and universities nationwide.

(a) Source: Inside Mortgage Finance 19 Card Services

“In a challenging environment, we generated solid momentum in 2007 and established a clear vision for the future. Chase Card Services aims to create lifelong, engaged relationships with our customers by being a trusted provider of financial services. We are supporting our vision with a solid growth strategy – focusing our efforts on key marketplace segments, including the small business, mass affluent and high-net-worth markets.”

Gordon Smith – CEO Card Services

2007 Highlights and Accomplishments

With 155 million cards in circula- • Added 16 million new Visa, MasterCard • Better leveraged the JPMorgan Chase tion and more than $157 billion and private label accounts. franchise by increasing the number in managed loans, Chase Card of credit cards sold through the Retail • Maintained Chase’s position as the Services is one of the nation’s Financial Services network by 23% second-leading issuer of MasterCard largest credit card issuers. from 2006. and Visa cards in the U.S. Customers used Chase cards • Increased charge volume by $15 billion to meet more than $354 billion • Moved core processing platform from 2006. worth of their spending needs in-house, allowing for greater techno- in 2007. logical innovation, more flexibility • Increased net revenue 3% and grew managed loans 3% while investing in With hundreds of partnerships, and reduced costs. activities to attract new customers and Chase has a market leadership • Further enhanced the innovative further engage current cardmembers. position in building loyalty Chase Freedom program, which gives programs with many of the cardmembers the choice of earning • Increased merchant processing volume world’s most respected brands. either cash or points and changing to $719 billion, up 9% from 2006, through back and forth without leaving any Solutions, LLC, the rewards behind. The Chase Freedom nation’s largest merchant processor. program has generated more than one million new customers since its 2006 launch.

20 Commercial Banking

2007 Highlights and Accomplishments

Commercial Banking serves more • Increased net income 12% to a record • Added in excess of 2,200 new banking than 30,000 clients nationally, $1.1 billion and net revenue 8% to a relationships through accelerated calling including corporations, munici- record $4.1 billion. efforts and targeted marketing initiatives. palities, financial institutions and • Achieved record results in gross invest- • Maintained favorable market position not-for-profit entities with annual ment banking revenue of $888 million, relative to the industry through revenue generally ranging from conservative credit underwriting and $10 million to $2 billion. It is the treasury services revenue of $2.4 billion, strong credit reserves. #1 commercial bank in market loan balances of $61.1 billion and liability penetration within Chase’s retail balances of $87.7 billion. • Converted the wholesale New York (a) branch footprint. • #1 commercial bank in market penetration Tri-State customer base of more than (a) 332,000 deposit accounts, representing Commercial Banking delivers within Chase’s retail branch footprint. extensive industry knowledge, local almost $28 billion, and migrated • #2 large middle-market lender in the U.S.(b) expertise and a dedicated service customers acquired from The Bank of model. In partnership with the • #2 asset-based lender in the U.S.(b) New York to the firm’s platforms. firm’s other businesses, it provides • Launched seven new offices, expanding • Delivered focused leadership training to comprehensive solutions, including coverage in Atlanta, Nashville, Philadel- more than 500 managers and enhanced lending, treasury services, invest- phia and Seattle, including three employee diversity and performance ment banking and asset manage- international locations in Vancouver, initiatives. ment to meet its clients’ domestic Mumbai and Singapore. and international financial needs.

(a) Barlow Footprint Study, 2007 (b) Loan Pricing Corporation, 2007

“Commercial Banking performed exceptionally well in a volatile and challenging economic environment, retaining a position of strength in our markets and resulting in record growth consistent with our 2007 plan.

“In 2008, we will redouble our prospecting efforts to broaden our market coverage, maintain a strong and well-managed loan portfolio, and continue to make smart credit decisions. We will also practice diligent expense control and remain vigilant over market conditions to provide insightful and disciplined advice to our clients.”

Todd Maclin – CEO Commercial Banking Treasury & Securities Services

2007 Highlights and Accomplishments

Treasury & Securities Services is • Increased net income 28% year-over-year • Completed acquisitions of Xign a global leader in transaction, to a record $1.4 billion on the strength of Corporation, a leading provider of investment and information services. record net revenue of $6.9 billion. business-to-business on-demand financial We are one of the world’s largest settlement solutions; of FisaCure, Inc., a • Increased assets under custody 15% to cash management providers and a leading provider of electronic remittance $15.9 trillion and liability balances 21% to leading global custodian, operating services to the healthcare industry; and of $228.9 billion. through two divisions: the U.S. transfer agency services business (a) Treasury Services provides cash man- • #1 in Sameday U.S. Dollar Funds Transfers , of Integrated Investment Services. Automated Clearing House Originations(b), agement, trade, wholesale card and • Introduced new offerings to support CHIPS(c) and Fedwire.(d) liquidity products and services to comprehensive financial supply chain and small- and mid-sized companies, • Grew revenue 26% outside the U.S. and border logistics management; card-based multinational corporations, financial strengthened our international presence, invoice settlement for accounts payable; institutions and government entities. securing regulatory approval to connect to and the securities processing and fund Worldwide Securities Services holds, China's electronic clearing system and grow- administration needs of financial institutions. values, clears and services securities, ing our hedge fund, image deposit, euro • Industry awards included Best Overall cash and alternative investments payment, private equity, commercial card Bank for Payments and Collections in for investors and broker-dealers and other capabilities in targeted markets. Global Finance and manages depositary receipt North America ( ), Best Waters programs globally. • Migrated to a single U.S. dollar deposit plat- Investor Services ( magazine) and form in JPMorgan Chase's largest conversion, Best Liquidity Solution Provider (The Asset). involving almost $180 billion in balances and (a) Ernst & Young nearly $10 trillion in daily transactions. (b) NACHA (c) The Clearing House (d) Federal Reserve

“Our businesses posted record results in 2007. Going forward, we see our most promising opportunities emerging in key markets outside the U.S., and we’re confident we’ll continue to effectively grow our businesses around the world.

“In 2008, we will expand on our success by enhancing our products and delivery of services to our clients – not only to improve efficiency and reduce costs but also to ensure we can adequately support the tremendous growth in business we continue to experience.”

Heidi Miller CEO Treasury & Securities Services Asset Management

“Looking ahead, we see tremendous opportunity to build upon the momentum in our business. We will continue to expand our alternative asset class business, delivering innovative, best-in-class investment products to our clients. Our industry-leading Private Bank will capitalize on its strength, while we increase our focus on growth in Private Client Services. In Asia, we will broaden and deepen our reach, building on our unique leadership position in the region.

“Through our commitment to our values and our dedication to outstanding investment perform- ance, we will continue to deliver the best of JPMorgan Asset Management to our clients."

Jes Staley – CEO Asset Management

2007 Highlights and Accomplishments

With assets under supervision of • Record financial performance of 27% • Grew alternative assets under manage- $1.6 trillion, Asset Management is a revenue growth and 40% earnings growth. ment, including hedge funds, real estate global leader in investment and wealth and private equity 21% to $121 billion. • Reached $1.2 trillion in assets under management. Our clients include Continued to experience strong investor management and $1.6 trillion in assets institutions, retail investors and high- interest in Highbridge funds with 68% under supervision. Net assets under net-worth individuals in every major growth in assets under management. market throughout the world. management inflows were at a record level of $115 billion. • Despite challenging markets throughout We offer global investment manage- the second half of the year, maintained • JPMorgan Asset Management is the ment in equities, fixed income, real strong three- and five-year investment estate, hedge funds, private equity largest manager of AAA-rated global performance. Globally, the ranking of and liquidity. We provide trust and liquidity funds with more than $294 long-term mutual fund assets in the estate and banking services to high- billion under management. Grew global first or second quartiles was 76% for the net-worth clients and retirement liquidity balances 29%.(a) five years and 75% for the three years services for corporations and individu- • Experienced record growth in assets ended December 31, 2007. One-year als. The majority of our client assets under supervision for the Private Bank performance declined from 83% to 57%.(c) are in actively managed portfolios. and Private Client Services with an • Launched our first Qualified Domestic increase of $80 billion. Achieved second (a) iMoneyNet, December 2007 Institutional Investor (QDII) product in consecutive year of record growth in (b) Absolute Return magazine, March 2008 issue, China, raising a record $15.4 billion on the data as of year-end 2007 net new Private Bank clients. first day of IPO from 1.9 million clients.(d) (c) Derived from following rating services: Lipper for the United States and Taiwan; Micropal for the • Retained position as largest manager United Kingdom, Luxembourg and Hong Kong; of hedge funds with assets under and Nomura for Japan management of $45 billion.(b) (d) In conjunction with our joint venture partner, Shanghai International Trust and Investment Co., Ltd. (SITCO); quota of $4 billion 23 Corporate Responsibility

“Corporate responsibility is something that we all, as business leaders, ought to be thinking about every day. We need to continually review and ensure that we act in a way that focuses on the impact our businesses can and should have. Taking this seriously is a winning strategy for our consumers and clients, our company and the community.”

Bill Daley – Head of Corporate Responsibility

2007 Highlights and Accomplishments

At JPMorgan Chase, corporate • Established the Office of Corporate • Modified or refinanced $3 billion in sub- responsibility goes beyond Responsibility to develop a comprehen- prime adjustable-rate mortgages to keep philanthropy. It’s about what sive and identifiable platform driven by families in their homes. Shared expertise in we do every day in our busi- our business activities. helping lead national initiatives to prevent nesses and how we do it. We foreclosure (including HOPE NOW) and • Strengthened our focus on the environ- are committed to managing trained more than 1,300 non-profit coun- ment by investing in alternative energy our businesses to create selors to assist struggling homeowners. projects, helping our clients reduce value for our consumer and corporate clients, as well as carbon emissions and taking the lead in • Created a dedicated investment banking our shareholders, communities developing The Carbon Principles. unit to support microfinance and social enterprises around the world. and employees and to being a • Began the renovation of our NYC head- responsible corporate citizen. quarters with the goal of Platinum LEED • Invested $114 million in more than 2,400 certification and opened pilot LEED-certi- not-for-profit organizations globally in fied bank branches in Colorado and Texas. nearly 500 cities across 33 countries.

• Helped shape federal legislation to • Invested more than $338 billion in low- and protect homeowners and to serve a moderate-income communities across the broader range of families through U.S. in the first four years of our 10-year, $800 expanded mortgage-loan limits. billion commitment. Will invest the addition- From left to right: al $60 million allocation of New Markets Tax • Helped consumers understand our Thelma Dye – Director of Northside Center Credit in low-income communities. for Child Development, products’ terms and fees through Bill Daley – Corporate Responsibility, JPMorgan Chase, programs such as “Mortgage Nutrition • Increased supplier diversity spending, Kim Davis – Philanthropy, JPMorgan Chase Labels” in Home Lending and “Clear with more than $700 million going to and Simple” in Card Services. minority- and women-owned businesses. 24