Business Context and Reporting Period
This Form 8-K filing by J.P. Morgan Chase & Co. (NYSE: JPM) was submitted on July 17, 2002, to announce financial results for the second quarter of 2002. The report includes a press release and financial supplements detailing earnings performance.
Key Financial Metrics
Second Quarter 2002 Results:
- Reported Earnings Per Share (EPS): $0.50
- Reported Net Income: $1,028 million
- Operating EPS: $0.58 (excludes merger and restructuring charges)
- Operating Earnings: $1,179 million
Accounting Note: Operating earnings for 2001 were adjusted to add back goodwill amortization to align with the implementation of SFAS 142 on January 1, 2002.
The filing text does not provide specific values for revenue, cash flow, margins, debt, or liquidity metrics in this summary section; these are referenced in the attached exhibits.
Material Changes Versus Prior Periods
Reported Metrics:
- vs. Q1 2002: Reported EPS increased from $0.48 to $0.50; Net income increased from $982 million to $1,028 million.
- vs. Q2 2001: Reported EPS increased significantly from $0.18 to $0.50; Net income increased from $378 million to $1,028 million.
Operating Metrics:
- vs. Q1 2002: Operating EPS increased slightly from $0.57 to $0.58; Operating earnings increased from $1,150 million to $1,179 million.
- vs. Q2 2001: Operating EPS increased from $0.38 to $0.58; Operating earnings increased from $786 million to $1,179 million.
Guidance, Outlook, and Risks
The attached press release contains forward-looking statements based on management's current beliefs and expectations. The filing explicitly states that these statements are subject to significant risks and uncertainties that could cause actual results to differ materially.
Investors are directed to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2002, and the 2001 Annual Report on Form 10-K for a detailed description of these risks and uncertainties.
Investor Verification Checklist
- Verify the reconciliation between Reported and Operating earnings in the attached press release (Exhibit 99.1, page 7).
- Review the impact of SFAS 142 implementation on goodwill amortization and 2001 comparative figures.
- Examine the detailed risk factors in the Form 10-Q (ended March 31, 2002) and Form 10-K (2001) referenced in the filing.
- Consult the 2002 Second Quarter Financial Supplement (Exhibit 99.2) for revenue, cash flow, and liquidity data not included in this summary.