Equity underwriting fees were $359 million, down 9% while advisory fees of $483 million were up slightly from the prior year.

- Fixed Income Markets revenue was $466 million, down $2.1 billion, or 82%, from the prior year with the decline due primarily to markdowns of $1.2 billion on prime, Alt-A and subprime mortgages.
- Equity Markets revenue was $1.0 billion, down 37% from the prior year, as weak trading results were offset partially by strong client revenue across businesses.
- Fixed Income Markets and Equity Markets results included a combined benefit of $949 million from the widening of the firm''s credit spread on certain structured liabilities, with an impact of $662 million and $287 million, respectively.
- Credit Portfolio revenue was $363 million, down $31 million, or 8%, from the prior year.

The current-quarter provision reflects an increase of $605 million in the allowance for credit losses, reflecting the impact of the transfer of $4.9 billion of leveraged lending commitments.

- Net charge-offs were $13 million, compared with net recoveries of $6 million in the prior year.
- The allowance for loan losses to total loans retained was 2.55% for the current quarter, an increase from 1.76% in the prior year.
- Average loans retained were $74.1 billion, an increase of $15.1 billion, or 26%, from the prior year, principally driven by growth in acquisition finance activity, including leveraged lending.
- Average fair value and held-for-sale loans were $19.6 billion, up $5.9 billion, or 43%, from the prior year.
- Going forward, the firm expects continued good market share on the investment banking fee side, but a continuation of this lower absolute level of fees versus the levels in 2007.

- Retail had a net loss of $227 million, compared with net income of $859 million in the prior year, as a significant increase in the provision for credit losses resulted in a net loss in Regional Banking.
- Net revenue was $4.7 billion, an increase of $596 million, or 15%, from the prior year.
- Net interest income was $3.0 billion, up $394 million, or 15%, due to increased loan balances, wider loan spreads, and higher deposit balances.
- These benefits were offset partially by a shift to narrower–spread deposit products.

Noninterest revenue was $1.7 billion, up $202 million, or 14%, driven by higher volume and improved margins on loan originations and increased deposit-related fees.

- These benefits were offset partially by markdowns on the mortgage warehouse and pipeline and a decrease in net mortgage servicing revenue.
- The provision for credit losses was $2.5 billion, compared with $292 million in the prior year.
- Housing price declines have continued to exceed expectations resulting in a significant increase in estimated losses, particularly for high loan-to-value second-lien loans.
- Home equity net charge-offs were $447 million (1.89% net charge-off rate), compared with $68 million (0.32% net charge-off rate) in the prior year.

The provision was affected by an increase in the allowance for credit losses for prime mortgage and auto loans.

- Non interest expense was $2.6 billion, an increase of $163 million, or 7%, from the prior year, reflecting higher mortgage production and servicing expense, and investment in the retail distribution network.
- The $214 billion worth of deposits, was up 4% from a year ago, with 11.1 million checking accounts, up 9% from a year ago, which then drives all the increased sales and investments in product and sales force in the branches.
- Given the tightening of underwriting standards in home equity, there was a 47% decline in loan origination from a year ago to $6.7 billion of originations.
- The Regional Bank earned, in the consumer and business banking portion of it, $545 million, with revenue up 11% on higher loan balances, higher deposit balances, wider spreads as well as higher levels of deposit-related fees.

- Card Services profits of $609 million, were down from a year ago, again driven by the $1.670 billion of credit costs, which is all charge-offs.
- End-of-period managed loans of $150.9 billion grew $4.4 billion, or 3%, from the prior year and declined $6.1 billion, or 4%, from the prior quarter due to seasonally lower sales volume and higher payment activity.
- Average managed loans of $153.6 billion increased $4.1 billion, or 3%, from the prior year and $1.8 billion, or 1%, from the prior quarter on organic portfolio growth.

Managed net revenue was $3.9 billion, an increase of $224 million, or 6%, from the prior year.

- Net interest income was $3.2 billion, up $196 million, or 7%, from 2007 driven by wider loan spreads, an increased level of fees and higher average managed loan balances.
- These benefits were offset partially by the effect of higher revenue reversals associated with increased charge-offs and the discontinuation of certain billing practices.
- Noninterest revenue was $719 million, an increase of $28 million, or 4%, from the prior year related to higher net securitization gains.

Charge volume growth of 5% reflected a 10% increase in sales volume, partially offset by a lower level of balance transfers, the result of more targeted marketing efforts.

- The managed provision for credit losses was $1.7 billion, an increase of $441 million, or 36%, from the prior year, due to a higher level of charge-offs and an $85 million prior-year release of the allowance for loan losses.
- The managed net charge-off rate for the quarter was 4.37%, up from 3.57% in the prior year and the 30-day managed delinquency rate was 3.66%, up from 3.07% in the prior year.
- Non interest expense was $1.3 billion, an increase of $31 million, or 2%, compared with the prior year, due to higher marketing expense.

- Commercial Banking net income was $292 million, a decrease of $12 million, or 4%, from the prior year driven by an increase in the provision for credit losses, largely offset by growth in net revenue.
- Net revenue was $1.1 billion, an increase of $64 million, or 6%, from the prior year while net interest income was $733 million, up 10% on double-digit growth in liability and loan balances.
- Non interest revenue was $334 million, flat compared with the prior year, reflecting lower gains related to the sale of securities acquired in the satisfaction of debt and lower investment banking fees, offset by higher deposit-related, credit card and lending fees.

Middle Market Banking revenue was $706 million, an increase of $45 million, or 7%, from the prior year.

- Mid-Corporate Banking revenue was $207 million, a decrease of $5 million, or 2% and real estate banking revenue was $97 million, a decline of $5 million, or 5%.
- The provision for credit losses was $101 million, compared with $17 million in the prior year reflecting growth in loan balances and the effect of the weakening credit environment.
- Nonperforming loans were $446 million, up $305 million from the prior year and up $300 million from the prior quarter, reflecting increases in nonperforming loans in each business segment.

- Treasury Services profits of $403 million, were up 53% from a year ago with strong pre-tax margins.
- The customer balances on the Treasury Services side were primarily up 21% to over $250 billion.
- Assets under custody of nearly $16 trillion, were up 7% from a year ago leading to 25% revenue growth as the business benefited from some of the market volatility, wider spreads on securities lending and some of the product areas helps here.

- Asset Management income was $356 million, a decline of $69 million, or 16%, from the prior year driven primarily by higher noninterest expense, lower performance fees and lower market valuations for seed capital investments in JPMorgan funds.
- Assets under management amounted to $1.2 trillion of assets on strong liquidity flows into the business as well as other flows in the Private Bank, Private Client space.

- Corporate: income was $72 million, excluding $955 million in after-tax proceeds from the sale of Visa shares in its initial public offering.
- Excluding the impact of the sale of Visa shares, the decrease in net income was driven by lower results in Private Equity, lower net revenue and an increase in the provision for credit losses both in Corporate.
- These lower results were offset partially by a net release of litigation reserves.
- Net income for Private Equity was $57 million, compared with $698 million in the prior year and net revenue was $163 million, a decrease of $1.1 billion.