JPM Q3 2007

Overall --EPS $0.97, up 5% due to cost cutting, retail finance(18% rev growth), card service(double digit earning growth) Asset quality --Leverage loans write -down gross 2 bil , total exposure 40.6 bil, -5%, higher than LCDX (-1%) and other players (around -2-3%) --CDO/SIV mark-down net 339 mil, total portfolio 6.8 bil, -5%, relatively good compared to other players ( --allowance for credit loss (provision $227 mil) for investment banking $1.6 bil of portfolio out of 62 bil (1.8%) --Tier 1 capital ratio 8.4%, stable and higher than required 6.5% and C(dropped to 7%) Evaluation --10y bond trade at 120 bps, 50 bps lower than highest, relatively historic high Comments: --long