Bank One Reports First Quarter Net Income of 58 Cents Per Share

-- $500 Million Of Targeted Cost Saves Exceeded



-- Loan Loss Reserves Increase To 2.45% Of Total Loans



-- Corporate Banking Reduces Loans $3.9 Billion,



-- Including The Sale Of $375 Million Of Nonperforming Loans



--Tier 1 Capital Ratio Increases To 7.8%



Apr 17, 2001, 01:00 ET from Bank One Corporation

    CHICAGO, April 17 /PRNewswire/ -- Bank One Corporation (NYSE:   ONE) today
 announced 2001 first quarter net income of $679 million, or $0.58 per diluted
 share, down from $689 million, or $0.60 per diluted share, in the year-ago
 quarter.
     First quarter results were impacted by the following significant items:
 
     -- Gain of $43 million after tax ($73 million pre-tax) on the sale of
        ownership interests in EquiServe and Star Systems.
     -- During the quarter $599 million of commercial loans were sold, $375
        million of which were nonperforming, that resulted in $60 million after
        tax ($89 million pre-tax) of net charge-offs.  While these sales were
        completed well within established reserve levels, on a net basis the
        Corporation added $95 million to loan loss reserves, improving reserves
        to 2.45% of period-end loans, from 2.36% at the end of the prior
        quarter.
     -- A mark to market loss of $70 million after tax in the Corporate
        Investment portfolios, primarily related to marketable equity
        positions.
     -- Expense levels approximately $85 million after tax ($125 million pre
        tax) below on-going run rate due to certain one-time benefits, timing
        of expenses, and planned increases in conversion and marketing
        expenses.
 
     "We are beginning to produce solid results and believe we have a far
 stronger company today than a year ago or even last quarter," said James
 Dimon, chairman and chief executive officer.  "Our operating margins are
 improving, the risk position is both smaller and more actively managed,
 growing capital and higher reserves are adding further strength to our balance
 sheet, and we now have a management team which is capable of getting better
 results out of our fundamentally strong, though still underperforming,
 franchises.  We will continue to actively and aggressively manage our loan and
 credit risk profile even if doing so may have a slight negative impact on
 earnings.
     "Exceeding our commitment to achieve $500 million in waste reduction net
 of over $200 million in increased spending in important areas, including
 systems conversions, is a great accomplishment for the company.  The current
 annualized expense base is approximately $9.4-$9.5 billion versus
 $10.6 billion a year ago.  First quarter expense results were a little better
 than this due to certain one-time benefits, expense timing, and planned
 increases in conversion and marketing expenses.  Margin enhancements are
 apparent throughout the company, and we are on a path to becoming efficient in
 each of our companies.
     "While we need to continue to improve our execution capabilities and
 effectiveness, the challenge now is to demonstrate our ability to develop and
 execute growth strategies," he said.
 
     Some of the significant events in the quarter included:
 
     Systems and Operations
 
     -- Strengthened the management team by hiring Austin Adams, a highly
        experienced technology and operations executive in financial services,
        to head technology and operations.
 
     -- Remained on track to convert the Texas and Louisiana deposit systems in
        the third quarter.  Launched the Arizona and Utah deposit system
        conversion project, with completion tentatively scheduled for late in
        the fourth quarter.
 
     Retail
 
     -- Launched banking center profitability reporting.
 
     -- Continued the realignment and streamlining of the management team.
 
     -- Achieved the largest customer satisfaction improvement among financial
        services companies, and had the highest rating of peer banks, according
        to The American Customer Satisfaction Index compiled by the University
        of Michigan Business School.
 
     -- Significantly improved the efficiency ratio to 53% from 65% in the
        year-ago quarter.
 
     Commercial Banking
 
     -- Implemented new capital allocation and credit risk rating
        methodologies.
 
     -- Reduced Corporate Banking loans by $3.9 billion, including $599 million
        in loan sales, of which $375 million were nonperforming.  This is a
        direct result of more active management of the Corporation's risk
        profile and will also ultimately lead to improved relationship
        profitability.
 
     -- Achieved strong improvement in capital markets results, with revenue of
        $163 million, up 27% from a year ago.
 
     First USA
 
     -- Announced on April 9 an agreement to purchase the $8 billion credit
        card business of Wachovia Corporation, which will increase accounts by
        2.8 million and outstandings by 13%.  The agreement also includes a
        long-term agreement to market consumer credit cards to Wachovia
        customers.
 
     -- Improved the pre-tax return on average outstandings to 1.46% from
        0.63% a year ago.
 
     -- Signed new marketing agreements with CardClues.com, iGo Corporation and
        Trip.com, and renewed existing relationships with US Soccer, National
        Parks Conservation, The Citadel and Westamerica Bank.
 
     Financial Strength
 
     Since December 31, 2000:
 
     -- Increased the loan loss reserve ratio to 2.45% from 2.36%.
 
     -- Increased the Tier 1 capital ratio to 7.8% from 7.3%.
 
     -- Increased the tangible common equity to tangible managed assets ratio
        to 5.6% from 5.5%.
 
     LINE OF BUSINESS DISCUSSION
 
     Highlights -- Net Income (Loss) by Line of Business
 
                                                                 % change vs.
                                1Q00        4Q00       1Q01     1Q00     4Q00
     ($ millions)
     Retail                    $ 236        $(17)     $ 349       48       NM
     Commercial banking          200        (385)       159      (21)      NM
     First USA                    67         134        148       NM       10
     Investment management        81          82         82        1       --
     Corporate investments        141        (15)       (29)      NM      (93)
     Corporate / unallocated     (36)       (311)       (30)      17       90
     Total Corporation          $ 689     $ (512)     $ 679       (1)      NM
     NM = not meaningful
 
 
     Retail
     Retail reported first quarter net income of $349 million, up 48% from the
 year-ago quarter.  This reflected the benefit of a $135 million, or 9%,
 increase in revenue and a $115 million, or 11%, decline in expenses, which was
 partially offset by higher provision for credit losses.  Return on average
 equity was 23%, compared with 18% in the year-ago quarter.  First quarter
 results from both periods included the seasonal impact from tax refund
 anticipation lending.  The efficiency ratio was 53% in the first quarter.
 While this benefited from seasonal lending activity, progress in reducing
 expense is evidenced by the decline from the year-ago efficiency ratio of 65%.
     Net interest income was $1.317 billion, up $81 million, or 7%, from the
 year-ago quarter (excluding the impact of the sale of the consumer finance
 business in the first quarter of 2000, net interest income increased 10%).
 This increase was driven by wider loan spreads and a 5% increase in average
 loans outstanding, partially offset by deposit margin compression.  Loan
 growth was concentrated in home equity loans, where average loans increased
 22% from a year ago.  Average loans were unchanged from the 2000 fourth
 quarter, reflecting the more disciplined approach toward managing the consumer
 credit portfolios that was implemented last year.  This has led to an improved
 portfolio mix by reducing reliance on brokered home equity loans and auto
 leases.  These portfolios are now managed to maximize return on capital.
 Noninterest income was $360 million, up $54 million, or 18%, from the year-ago
 quarter.  The change reflected the absence of auto lease residual losses in
 the first quarter, compared with $262 million in the 2000 fourth quarter and
 $56 million in the year-ago quarter.
     Provision for credit losses was $244 million, up $77 million from the
 year-ago quarter.  Retail's managed net charge-offs totaled $206 million, an
 increase from $98 million in the year-ago quarter and $159 million in the
 prior quarter.  The increased net charge-offs related to the expected
 increases from brokered home equity loans as well as deterioration in certain
 parts of the auto lending portfolio.  Retail's net charge-off ratio was 1.08%,
 up from 0.83% in the prior quarter and 0.54% in the year-ago quarter.
     The allowance for loan losses increased $78 million, bringing the loan
 loss reserve as a percent of loans to 1.21%, up from 1.10% at December 31,
 2000, and approximately 0.84% at March 31, 2000.  Total Retail nonperforming
 assets increased $323 million from a year ago, largely driven by a $266
 million increase in consumer nonperforming loans, which primarily represent
 90-day loan delinquencies.  Compared with the prior quarter, retail
 nonperforming assets increased $41 million, or 4%.
     Noninterest expense was $887 million, down $115 million, or 11%, from the
 year-ago quarter.  This decrease reflected the positive impacts from
 waste-reduction initiatives, reduced headcount in the lending and staff units,
 and the sale of the consumer finance business.  Compared with the 2000 fourth
 quarter adjusted to exclude that quarter's significant items, noninterest
 expense declined $78 million, or 8%.
 
     Commercial Banking
     Commercial Banking reported first quarter net income of $159 million, down
 $41 million, or 21%, from a year ago.  This reflected the impact of a higher
 provision for credit losses, partially offset by a 4% increase in revenue and
 a 5% decrease in expenses.  The return on average equity was 10% in the first
 quarter, down from 13% a year ago.
     As previously announced, Corporate Banking has been actively reviewing all
 relationships in its portfolio to assess both overall exposure as well as
 relationship profitability.  The goal is to enhance overall profitability.
 These reviews have resulted in the exiting of some customer relationships, but
 have also produced additional business such as treasury management services
 and capital market business.  A direct result of this initiative was the
 reduction of $3.9 billion of Corporate Banking loans.  This decrease included
 $599 million in loan sales, of which $375 million were nonperforming credits.
 First quarter results from these sales included charge-offs of $89 million.
 The proceeds from these sales were well within specifically established credit
 reserves for these loans.
     Net interest income was $665 million, comparable to the year-ago quarter.
 Total average loans of $80.6 billion were essentially unchanged from the
 year-ago quarter.  Middle Market Banking average loans increased $3.4 billion,
 or 11%, from the year-ago quarter and $1.3 billion, or 4%, from the 2000
 fourth quarter.  Corporate Banking average loans decreased $3.2 billion, or
 6%, from the year-ago quarter, and $3.9 billion, or 8%, from the prior
 quarter.  Impacting the margin were slightly narrower loan spreads, the cost
 of carrying a higher level of non-performing assets and the effect of an 8%
 decline in average deposits.  Compared with the 2000 fourth quarter, net
 interest income declined slightly, reflecting wider loan spreads offset by the
 cost of carrying a higher level of non-performing assets and the effect of a
 7% decline in total average deposits.
     Noninterest income totaled $398 million, an increase of $44 million, or
 12%, from the year-ago quarter.  Trading income increased $24 million, or 45%,
 from the 2000 first quarter and $20 million, or 35%, from the prior quarter,
 reflecting healthy asset-backed finance, fixed income and derivative trading
 activities.  Non-deposit service charges increased $26 million, or 20%, from
 the 2000 first quarter, reflecting strong underwriting fees, corporate debt
 issuance revenues and strong loan fees, partially offset by weak syndication
 activity.  Service charges on deposits decreased $3 million, or 2%, from the
 year-ago quarter.  Compared to the prior quarter, service charges on deposits
 declined $5 million, or 4%, reflecting the seasonality of treasury management
 services fees.
     The provision for credit losses was $264 million, a $132 million increase
 from the year-ago quarter.  Total net charge-offs were $249 million in the
 first quarter, representing 1.23% of average commercial loans, up from 0.42%
 in the year-ago quarter and down slightly from 1.24% in the prior quarter.
 Corporate Banking net charge-offs were 1.61% of average loans in the first
 quarter, up from 0.49% in the year-ago quarter and down from 1.58% in the
 prior quarter.  The year-over-year increase reflected the accelerated
 disposition of problem loans through loan sales.  Middle Market net charge-
 offs were 0.73% of average loans in the first quarter, compared to 0.31% in
 the year-ago quarter and 0.74% in the prior quarter, reflecting overall
 economic weakness.
     The allowance for credit losses was $3.034 billion at March 31, 2001, up
 from $3.020 billion at the end of the prior quarter.  This represented 3.86%
 of period-end loans and 197% of nonperforming loans, compared to 3.71% and
 198%, respectively, at December 31, 2000. At March 31, 2001, Corporate Banking
 nonperforming loans were $952 million, down $113 million, or 11%, from
 December 31, 2000, reflecting the sale of problem credits.  Overall, increases
 in Corporate Banking nonperforming loans have continued at approximately the
 same pace as in the prior two quarters.  Middle Market nonperforming loans
 increased $134 million, or 29%, to $592 million during the same time period,
 reflecting continued economic deterioration.
     Noninterest expense totaled $544 million, down $26 million, or 5%, from
 the year-ago quarter and $13 million, or 2%, from the prior quarter.  Salaries
 and benefits expense was down slightly from the year-ago quarter.  Compared to
 the prior quarter, salaries and benefits expense was up due to higher
 incentive compensation.  Other noninterest expense decreased $19 million, or
 6%, from the year-ago quarter and $42 million, or 13%, from the prior quarter,
 reflecting the continued impact of waste reduction activities, partially
 offset by capital markets infrastructure improvements.  The efficiency ratio
 in the first quarter was 51%, improved from 56% in the year-ago quarter.
 
     First USA
     First USA reported first quarter net income of $148 million, up
 $81 million from the year-ago quarter and 10% from the 2000 fourth quarter.
 The year-over-year increase primarily reflected the impact of lower expenses
 and managed provision for credit losses, which was partially offset by an $89
 million, or 5%, decline in revenues.  First quarter results represented a
 1.46% pretax return on outstandings, up from 0.63% in the year-ago and 1.28%
 in the 2000 fourth quarter. Net interest income was $1.391 billion, down $134
 million, or 9%, from the year-ago quarter, reflecting lower fee revenue, a
 decline in average outstandings and a narrower spread.  Compared with the
 prior quarter, net interest income decreased 2%, reflecting lower fee revenue.
     Average managed outstandings for the first quarter were $65.4 billion,
 down 3% from the year-ago period and essentially unchanged from the 2000
 fourth quarter average.  End-of-period managed loans declined to
 $64.0 billion.  Attrition on mature vintage balances improved from the year-
 ago quarter and was consistent with the previous quarter.  While attrition
 improved, customer card usage and related balances have declined, reflecting
 current economic conditions.  First USA opened 775,000 new accounts during the
 quarter, down slightly from the 2000 fourth quarter level, and had 50.6
 million cards issued at quarter end.  First USA continues to be a leader in
 online card marketing and customer service with over 2.4 million registered
 users of its website, FirstUSA.com .
     Noninterest income was $309 million, up $45 million, or 17%, from the
 prior year. This increase primarily reflected the difference in securitization
 activity between the periods.  Noninterest income was virtually unchanged from
 the 2000 fourth quarter.  The difference in securitization activity was offset
 by lower sales of fee-based products and seasonally lower interchange revenue.
     The managed provision for credit losses was $950 million, down $19 million
 from the year-ago quarter.  The managed net charge-off rate increased to 5.81%
 from 5.78%, reflecting the increased average age of the portfolio resulting
 from recent periods of lower new account growth and average outstandings.
 Managed net charge-offs were up from the 2000 fourth quarter, in line with
 expectations.  The managed 30-day and 90-day delinquency rates were 4.33% and
 2.02%, respectively, up from 4.08% and 1.91%, in the year-ago quarter, but
 down from 4.51% and equal to 2.02%, respectively, in the prior quarter,
 reflecting normal seasonality.
     Noninterest expense totaled $514 million, down $201 million, or 28%, from
 the prior year, reflecting the positive impact of waste-reduction initiatives,
 such as lower headcount, improved operating efficiency and reduced operating
 losses.  The decline from the year-ago quarter also reflected the sale of the
 international operations in the 2000 second quarter, lower operating costs and
 a decrease in internally allocated costs related to a mid-year 2000 change in
 allocation methodology.  Noninterest expense declined $123 million from the
 2000 fourth quarter, which included $46 million of special items.  The
 decrease in noninterest expense reflected lower expenses for purchased and
 professional services, as well as reduced fraud and operating losses.  None of
 the noninterest expense reductions related to marketing expense, which was up
 from both the year-ago and 2000 fourth quarter periods.  The efficiency ratio
 for the current period was 30%, down from 40% in the prior year and 37% from
 the 2000 fourth quarter.
 
     Investment Management
     Investment Management reported first quarter net income of $82 million, a
 slight increase from the year-ago quarter.  This reflected a $24 million, or
 6%, increase in revenue, which was partially offset by higher expenses.
 Compared to the prior quarter, net income remained flat, reflecting the
 continued impact of volatile and difficult market conditions.
     Period-end assets under management increased to $131.5 billion, up
 slightly from the year-ago and 2000 fourth quarters.  One Group(R) mutual fund
 assets under management increased to $71.0 billion in the first quarter, a
 6% increase year-over-year and a 1% increase from the prior quarter.  Overall,
 One Group(R) net fund flows remained positive.  In the first quarter, the mix
 of assets under management changed.  Money market assets increased
 significantly, fixed income assets increased modestly and equity assets
 declined from both the year-ago and the 2000 fourth quarters.
     Compared to the first quarter of 2000, the $7.0 billion decline in assets
 under management from the Private Client Services segment was partially offset
 by a $5.9 billion increase in assets under management in the Institutional
 segment.
     During the first quarter, overall One Group(R) fund performance remained
 strong.  The assets in funds rated 4 and 5 by Morningstar increased from
 49% in the fourth quarter of 2000 to 62% in the first quarter of 2001, with
 95% of assets in funds rated three stars or higher.  The One Group(R)
 Diversified Mid Cap fund was cited by Mutual Fund Magazine as one of the
 20 best performance-tested funds for 2001, based on its comparison of over
 6,000 diversified stock and balanced funds in the Morningstar database.  Also
 in the quarter, IMG launched its 50th fund and third sector fund, the One
 Group(R) Health Sciences fund.
     Net interest income totaled $104 million, up $4 million, or 4%, from the
 year-ago period.  Higher spread income associated with the 6% increase in
 average loans was partially offset by the effect of the 6% decrease in average
 deposits.  Compared to the prior quarter, net interest income was unchanged.
     Noninterest income was $307 million, an increase of $20 million, or 7%,
 from the year-ago quarter.  Beginning in the 2000 fourth quarter, fees
 associated with the in-house administration of the One Group(R) mutual funds
 were recorded as revenue, with a corresponding increase in expense.  Prior to
 that, a third-party administrator incurred such fees and expenses, which
 totaled $24 million in the first quarter.  Excluding the impact of this
 change, as well as the sale of the land trust business in the prior-year
 quarter, noninterest income increased 4% from a year ago.
     Compared to the prior quarter, noninterest income increased $7 million,
 or 2%.  Excluding the effect of the above-mentioned change in the
 administration of the One Group(R) funds, noninterest income was essentially
 flat versus the prior quarter, reflecting the previously mentioned shift in
 the value and mix of assets under management.
     Retail brokerage sales of mutual funds and annuities were $1.1 billion in
 the first quarter, down $55 million, or 5%, from the year-ago quarter and up
 $199 million, or 21%, from the prior quarter, despite the weaker market
 conditions.  The mix of product sold reflected a shift by retail investors to
 annuities.
     Noninterest expense of $277 million increased $20 million, or 8%, from the
 year-ago quarter.  Excluding the expenses associated with the administration
 of the One Group(R) funds, noninterest expense declined slightly from a year
 ago.  Noninterest expense increased $9 million, or 3%, from the 2000 fourth
 quarter due principally to that quarter's lower incentive expense.
 
     Corporate Investments
     Corporate Investments reported a first quarter net loss of $29 million,
 compared with net income of $141 million in the year-ago quarter and a net
 loss of $15 million in the 2000 fourth quarter.  First quarter results were
 negatively impacted by significant declines in equity valuations, while
 various leasing strategies continued to provide stable core performance in the
 current quarter, consistent with the year-ago and prior quarters.
     Net interest income of $26 million declined $9 million, or 26%, from the
 year-ago quarter, due to the funding of investments that do not yield interest
 income.
     Noninterest income declined $272 million from the year-ago quarter to a
 net expense of $87 million reflecting valuations of marketable equity
 securities, mostly held through investments in funds.  The Corporation
 currently holds approximately $300 million in marketable equity securities.
     Noninterest expense of $19 million declined $20 million, or 51%, from the
 year-ago quarter reflecting lower incentive-based compensation and stronger
 expense control.  Noninterest expense increased $12 million from the
 $7 million reported in the 2000 fourth quarter driven primarily by the fourth
 quarter's lower incentive compensation.
 
     Corporate / Unallocated
     Corporate/Unallocated includes Treasury, unallocated Corporate expenses
 and any gain or loss from Corporate transactions.  Included in first quarter
 results were gains of $73 million pre-tax ($43 million after tax) on the sale
 of the Corporation's portion of the controlling equity position in EquiServe
 Limited Partnership and on the sale of the Corporation's investment in Star
 Systems, an ATM network.  Excluding these gains, the first quarter recorded a
 net loss of $73 million.
 
     CREDIT QUALITY (See Line of Business discussions for additional
 information)
     Nonperforming assets, which include nonperforming commercial loans, other
 real estate owned and consumer loans 90 days past due, were $2.665 billion at
 the end of the first quarter, up $92 million from December 31, 2000.
 Commercial nonperforming assets increased a net $44 million after reflecting
 the sale of $375 million of nonperforming loans.  Consumer nonperforming
 assets increased $40 million from the end of last year.  Nonperforming assets
 were 1.55% of related assets at March 31, 2001, up from 1.48% at December 31,
 2000.
     Total managed net charge-offs in the first quarter were $1.405 billion, or
 2.40% of total average managed loans, up from $1.309 billion, or 2.22%, in the
 fourth quarter.  Total managed net charge-offs in the year-ago quarter were
 $1.176 billion, or 2.04% of total average managed loans.
     The credit card managed net charge-off ratio was 5.81% in the first
 quarter, up from 5.41% in the fourth quarter and 5.78% in the year-ago
 quarter.
     Commercial net charge-offs across all lines of business in the 2001 first
 quarter were 1.03%, down from 1.10% in the fourth quarter but up from 0.34% in
 the year-ago quarter.
     The managed provision for credit losses in the first quarter was
 $1.461 billion, down from $2.329 billion in the fourth quarter.  The reported
 provision for credit losses in the first quarter was $585 million, compared
 with $1.507 billion in the fourth quarter, and exceeded net charge-offs by
 $96 million.
     At March 31, 2001, the allowance for credit losses was $4.205 billion, up
 $95 million from the end of the prior quarter.   This represented 2.45% of
 period-end loans, up from 2.36% at the end of last year, and represented 164%
 of nonperforming loans, down slightly from 166%, at December 31, 2000.
     Commercial loan credit quality and nonperforming loans are expected to
 continue to deteriorate at approximately the same rate as recent quarters for
 several more quarters.  The Corporation will also continue to manage this risk
 exposure which could result in the sale of additional loans and higher
 charge-offs for which the company believes reserves are currently adequate.
     Consumer and credit card losses are expected to modestly increase from
 current levels.  For credit cards, this reflects the aging of that portfolio
 against little new growth, whereas for other consumer loans it reflects our
 brokered home equity and auto exposures.
     Further deterioration in the general economic environment would probably
 cause higher credit costs in both the commercial and consumer portfolios.
 
     CAPITAL MANAGEMENT
     The tangible common equity to tangible managed assets ratio was 5.6% at
 March 31, 2001, up from 5.5% at December 31, 2000.  Tier 1 and Total capital
 ratios were 7.8% and 11.2% at quarter end, respectively, compared with 7.3%
 and 10.8%, at December 31, 2000.  Capital ratios remained very strong and
 exceeded the well-capitalized regulatory guidelines.
 
     BANK ONE CORPORATION is the nation's fifth largest bank holding company,
 with assets of more than $270 billion.  Bank One offers a full range of
 financial services to large corporate and middle market commercial customers
 and retail consumers.  It is the largest VISA credit card issuer, the third
 largest bank lender to small businesses and one of the top 25 managers of
 mutual funds.  A leader in the retail market, Bank One operates more than
 1,800 banking centers and a nationwide network of ATMs.  Information about
 Bank One's financial results can be accessed on the Internet at
 www.bankone.com or through fax-on-demand at 877-ONE-FACT.
 
     Forward-looking Statement
     The following appears in accordance with the Private Securities Litigation
 Reform Act of 1995:
     This discussion of financial results contains forward-looking statements
 about the Corporation, including descriptions of plans or objectives of its
 management for future operations, products or services, and forecasts of its
 revenues, earnings or other measures of economic performance.  Forward-looking
 statements can be identified by the fact that they do not relate strictly to
 historical or current facts.  They often include the words "believe,"
 "expect," "anticipate," "intend," "plan," "estimate" or words of similar
 meaning, or future or conditional verbs such as "will," "would," "should,"
 "could" or "may."
     Forward-looking statements, by their nature, are subject to risks and
 uncertainties.  A number of factors -- many of which are beyond the
 Corporation's control -- could cause actual conditions, events or results to
 differ significantly from those described in the forward-looking statements.
 The Corporation's reports filed with the Securities and Exchange Commission,
 including the Corporation's Form 10-K for the year ended December 31, 2000,
 describe some of these factors, including certain credit, market, operational,
 liquidity and interest rate risks associated with the Corporation's business
 and operations.  Other factors described in the Corporation's December 31,
 2000 Form 10-K include changes in business and economic conditions,
 competition, fiscal and monetary policies and legislation including the Gramm-
 Leach-Bliley Act of 1999.
     Forward-looking statements speak only as of the date they are made.  The
 Corporation does not undertake to update forward-looking statements to reflect
 circumstances or events that occur after the date the forward-looking
 statements are made or to reflect the occurrence of unanticipated events, such
 as further market deterioration that adversely affects credit quality, auto
 lease residuals and credit card asset values.
 
     Line of Business Basis of Discussion
     Second quarter 2000 line of business results are on a reported basis.
 Previously, these results excluded significant items.
     First USA's presentation is on a managed basis with information modified
 from reported results to include credit card loans that were securitized and
 removed from the balance sheet.  The net revenue related to these securitized
 loans are reclassified from noninterest income to net interest income and
 provision for credit losses as if the securitization had not occurred.
 
     Conference Call and Webcast Information
     An analyst meeting and conference call discussing the quarter's results
 will be held at 9:00 a.m. (EDT) today.  To participate phone 800-967-7135
 (domestic) or 719-457-2626 (international); the access code is 786197.  The
 conference call will also be Webcast on the Internet at www.bankone.com .  A
 playback of this conference call will be available after noon today through
 Friday, April 27, by calling 888-203-1112 (domestic) or 719-457-0820
 (international); the access code is 786197.
 
     Supplemental Financial Schedules
     A Summary of Selected Financial Information follows.  Additional Line of
 Business and Consolidated results are available on Bank One's website
 www.bankone.com .
 
 
     BANK ONE CORPORATION and Subsidiaries
     Summary of Consolidated
     Selected Financial         2001                     2000
     Information              1st Qtr   4th Qtr   3rd Qtr   2nd Qtr   1st Qtr
 
     INCOME STATEMENT DATA
      $MM
     Total revenue, net of
      interest expense          $3,792    $3,461    $3,942    $2,509    $4,014
     Net interest income
      (FTE)                      2,218     2,247     2,242     2,257     2,228
     Noninterest income          1,607     1,247     1,734       288     1,821
     Provision for credit
      losses                       585     1,507       516     1,013       362
     Noninterest expense         2,236     2,847     2,593     3,507     2,661
     Net income (loss)             679      (512)      581    (1,269)      689
 
     PER COMMON SHARE DATA
     Net income (loss):
           Basic                 $0.58    $(0.44)    $0.50    $(1.11)    $0.60
           Diluted (a)            0.58     (0.44)     0.50     (1.11)     0.60
     Cash dividends declared      0.21      0.21      0.21      0.42      0.42
     Book value                  16.20     15.90     16.47     16.12     17.43
 
     BALANCE SHEET DATA -
      ENDING BALANCES $MM
     Loans:
          Managed             $229,942  $236,492  $237,505  $234,412  $229,673
          Reported             171,427   174,251   176,419   172,591   168,078
     Deposits                  163,555   167,077   164,130   163,169   164,643
     Long-term debt (b)         42,197    40,911    42,641    39,093    38,753
     Total assets:
          Managed              315,104   309,096   324,780   316,011   317,176
          Reported             274,352   269,300   283,373   272,709   273,008
     Common stockholders'
      equity                    18,876    18,445    19,042    18,630    20,081
     Total stockholders'
      equity                    19,066    18,635    19,232    18,820    20,271
 
     CREDIT QUALITY RATIOS
     Net charge-offs to
      average loans - managed     2.40%     2.22%     1.86%     1.99%     2.04%
     Allowance for credit
      losses to period end
      loans                       2.45      2.36      1.75      1.73      1.39
     Nonperforming assets to
      related assets              1.55      1.48      1.21      1.03      0.99
 
     FINANCIAL PERFORMANCE
      RATIOS
     Return (loss) on average
      assets                      1.02%    (0.75)%    0.85%    (1.87)%    1.03%
     Return (loss) on average
      common equity               14.6     (10.7)     12.2     (26.0)     13.9
     Net interest margin:
          Managed                 4.76      4.65      4.66      4.80      4.91
          Reported                3.71      3.67      3.68      3.77      3.78
     Efficiency ratio:
          Managed                 47.6      66.0      54.6     103.8      53.7
          Reported                58.5      81.5      65.2     137.8      65.7
 
     CAPITAL RATIOS
     Risk-based capital:
          Tier 1                   7.8       7.3       7.5       7.2       7.7
          Total                   11.2      10.8      10.9      10.3      10.6
     Tangible common equity/
      tangible managed assets      5.6       5.5       5.4       5.4       5.7
 
     COMMON STOCK DATA MM
     Average shares
      outstanding:
           Basic                 1,163     1,158     1,156     1,153     1,149
           Diluted (a)           1,173     1,158     1,167     1,153     1,155
     Stock price, quarter-end   $36.18    $36.63    $38.06    $26.56    $34.38
     Employees (c)              79,157    80,778    81,291    82,443       N/A
 
     (a)  Common equivalent shares have been excluded from the computation of
          diluted loss per share in the second and fourth quarters of 2000 as
          the effect would be antidilutive.
     (b)  Includes trust preferred capital securities.
     (c)  Beginning in 1Q01, long-term disability employees and employees of
          unconsolidated subsidiaries are excluded. Prior period data has not
          been restated for this change. Excluding this change in methodology,
          headcount declined 328 in 1Q01.
 
 

SOURCE Bank One Corporation
    CHICAGO, April 17 /PRNewswire/ -- Bank One Corporation (NYSE:   ONE) today
 announced 2001 first quarter net income of $679 million, or $0.58 per diluted
 share, down from $689 million, or $0.60 per diluted share, in the year-ago
 quarter.
     First quarter results were impacted by the following significant items:
 
     -- Gain of $43 million after tax ($73 million pre-tax) on the sale of
        ownership interests in EquiServe and Star Systems.
     -- During the quarter $599 million of commercial loans were sold, $375
        million of which were nonperforming, that resulted in $60 million after
        tax ($89 million pre-tax) of net charge-offs.  While these sales were
        completed well within established reserve levels, on a net basis the
        Corporation added $95 million to loan loss reserves, improving reserves
        to 2.45% of period-end loans, from 2.36% at the end of the prior
        quarter.
     -- A mark to market loss of $70 million after tax in the Corporate
        Investment portfolios, primarily related to marketable equity
        positions.
     -- Expense levels approximately $85 million after tax ($125 million pre
        tax) below on-going run rate due to certain one-time benefits, timing
        of expenses, and planned increases in conversion and marketing
        expenses.
 
     "We are beginning to produce solid results and believe we have a far
 stronger company today than a year ago or even last quarter," said James
 Dimon, chairman and chief executive officer.  "Our operating margins are
 improving, the risk position is both smaller and more actively managed,
 growing capital and higher reserves are adding further strength to our balance
 sheet, and we now have a management team which is capable of getting better
 results out of our fundamentally strong, though still underperforming,
 franchises.  We will continue to actively and aggressively manage our loan and
 credit risk profile even if doing so may have a slight negative impact on
 earnings.
     "Exceeding our commitment to achieve $500 million in waste reduction net
 of over $200 million in increased spending in important areas, including
 systems conversions, is a great accomplishment for the company.  The current
 annualized expense base is approximately $9.4-$9.5 billion versus
 $10.6 billion a year ago.  First quarter expense results were a little better
 than this due to certain one-time benefits, expense timing, and planned
 increases in conversion and marketing expenses.  Margin enhancements are
 apparent throughout the company, and we are on a path to becoming efficient in
 each of our companies.
     "While we need to continue to improve our execution capabilities and
 effectiveness, the challenge now is to demonstrate our ability to develop and
 execute growth strategies," he said.
 
     Some of the significant events in the quarter included:
 
     Systems and Operations
 
     -- Strengthened the management team by hiring Austin Adams, a highly
        experienced technology and operations executive in financial services,
        to head technology and operations.
 
     -- Remained on track to convert the Texas and Louisiana deposit systems in
        the third quarter.  Launched the Arizona and Utah deposit system
        conversion project, with completion tentatively scheduled for late in
        the fourth quarter.
 
     Retail
 
     -- Launched banking center profitability reporting.
 
     -- Continued the realignment and streamlining of the management team.
 
     -- Achieved the largest customer satisfaction improvement among financial
        services companies, and had the highest rating of peer banks, according
        to The American Customer Satisfaction Index compiled by the University
        of Michigan Business School.
 
     -- Significantly improved the efficiency ratio to 53% from 65% in the
        year-ago quarter.
 
     Commercial Banking
 
     -- Implemented new capital allocation and credit risk rating
        methodologies.
 
     -- Reduced Corporate Banking loans by $3.9 billion, including $599 million
        in loan sales, of which $375 million were nonperforming.  This is a
        direct result of more active management of the Corporation's risk
        profile and will also ultimately lead to improved relationship
        profitability.
 
     -- Achieved strong improvement in capital markets results, with revenue of
        $163 million, up 27% from a year ago.
 
     First USA
 
     -- Announced on April 9 an agreement to purchase the $8 billion credit
        card business of Wachovia Corporation, which will increase accounts by
        2.8 million and outstandings by 13%.  The agreement also includes a
        long-term agreement to market consumer credit cards to Wachovia
        customers.
 
     -- Improved the pre-tax return on average outstandings to 1.46% from
        0.63% a year ago.
 
     -- Signed new marketing agreements with CardClues.com, iGo Corporation and
        Trip.com, and renewed existing relationships with US Soccer, National
        Parks Conservation, The Citadel and Westamerica Bank.
 
     Financial Strength
 
     Since December 31, 2000:
 
     -- Increased the loan loss reserve ratio to 2.45% from 2.36%.
 
     -- Increased the Tier 1 capital ratio to 7.8% from 7.3%.
 
     -- Increased the tangible common equity to tangible managed assets ratio
        to 5.6% from 5.5%.
 
     LINE OF BUSINESS DISCUSSION
 
     Highlights -- Net Income (Loss) by Line of Business
 
                                                                 % change vs.
                                1Q00        4Q00       1Q01     1Q00     4Q00
     ($ millions)
     Retail                    $ 236        $(17)     $ 349       48       NM
     Commercial banking          200        (385)       159      (21)      NM
     First USA                    67         134        148       NM       10
     Investment management        81          82         82        1       --
     Corporate investments        141        (15)       (29)      NM      (93)
     Corporate / unallocated     (36)       (311)       (30)      17       90
     Total Corporation          $ 689     $ (512)     $ 679       (1)      NM
     NM = not meaningful
 
 
     Retail
     Retail reported first quarter net income of $349 million, up 48% from the
 year-ago quarter.  This reflected the benefit of a $135 million, or 9%,
 increase in revenue and a $115 million, or 11%, decline in expenses, which was
 partially offset by higher provision for credit losses.  Return on average
 equity was 23%, compared with 18% in the year-ago quarter.  First quarter
 results from both periods included the seasonal impact from tax refund
 anticipation lending.  The efficiency ratio was 53% in the first quarter.
 While this benefited from seasonal lending activity, progress in reducing
 expense is evidenced by the decline from the year-ago efficiency ratio of 65%.
     Net interest income was $1.317 billion, up $81 million, or 7%, from the
 year-ago quarter (excluding the impact of the sale of the consumer finance
 business in the first quarter of 2000, net interest income increased 10%).
 This increase was driven by wider loan spreads and a 5% increase in average
 loans outstanding, partially offset by deposit margin compression.  Loan
 growth was concentrated in home equity loans, where average loans increased
 22% from a year ago.  Average loans were unchanged from the 2000 fourth
 quarter, reflecting the more disciplined approach toward managing the consumer
 credit portfolios that was implemented last year.  This has led to an improved
 portfolio mix by reducing reliance on brokered home equity loans and auto
 leases.  These portfolios are now managed to maximize return on capital.
 Noninterest income was $360 million, up $54 million, or 18%, from the year-ago
 quarter.  The change reflected the absence of auto lease residual losses in
 the first quarter, compared with $262 million in the 2000 fourth quarter and
 $56 million in the year-ago quarter.
     Provision for credit losses was $244 million, up $77 million from the
 year-ago quarter.  Retail's managed net charge-offs totaled $206 million, an
 increase from $98 million in the year-ago quarter and $159 million in the
 prior quarter.  The increased net charge-offs related to the expected
 increases from brokered home equity loans as well as deterioration in certain
 parts of the auto lending portfolio.  Retail's net charge-off ratio was 1.08%,
 up from 0.83% in the prior quarter and 0.54% in the year-ago quarter.
     The allowance for loan losses increased $78 million, bringing the loan
 loss reserve as a percent of loans to 1.21%, up from 1.10% at December 31,
 2000, and approximately 0.84% at March 31, 2000.  Total Retail nonperforming
 assets increased $323 million from a year ago, largely driven by a $266
 million increase in consumer nonperforming loans, which primarily represent
 90-day loan delinquencies.  Compared with the prior quarter, retail
 nonperforming assets increased $41 million, or 4%.
     Noninterest expense was $887 million, down $115 million, or 11%, from the
 year-ago quarter.  This decrease reflected the positive impacts from
 waste-reduction initiatives, reduced headcount in the lending and staff units,
 and the sale of the consumer finance business.  Compared with the 2000 fourth
 quarter adjusted to exclude that quarter's significant items, noninterest
 expense declined $78 million, or 8%.
 
     Commercial Banking
     Commercial Banking reported first quarter net income of $159 million, down
 $41 million, or 21%, from a year ago.  This reflected the impact of a higher
 provision for credit losses, partially offset by a 4% increase in revenue and
 a 5% decrease in expenses.  The return on average equity was 10% in the first
 quarter, down from 13% a year ago.
     As previously announced, Corporate Banking has been actively reviewing all
 relationships in its portfolio to assess both overall exposure as well as
 relationship profitability.  The goal is to enhance overall profitability.
 These reviews have resulted in the exiting of some customer relationships, but
 have also produced additional business such as treasury management services
 and capital market business.  A direct result of this initiative was the
 reduction of $3.9 billion of Corporate Banking loans.  This decrease included
 $599 million in loan sales, of which $375 million were nonperforming credits.
 First quarter results from these sales included charge-offs of $89 million.
 The proceeds from these sales were well within specifically established credit
 reserves for these loans.
     Net interest income was $665 million, comparable to the year-ago quarter.
 Total average loans of $80.6 billion were essentially unchanged from the
 year-ago quarter.  Middle Market Banking average loans increased $3.4 billion,
 or 11%, from the year-ago quarter and $1.3 billion, or 4%, from the 2000
 fourth quarter.  Corporate Banking average loans decreased $3.2 billion, or
 6%, from the year-ago quarter, and $3.9 billion, or 8%, from the prior
 quarter.  Impacting the margin were slightly narrower loan spreads, the cost
 of carrying a higher level of non-performing assets and the effect of an 8%
 decline in average deposits.  Compared with the 2000 fourth quarter, net
 interest income declined slightly, reflecting wider loan spreads offset by the
 cost of carrying a higher level of non-performing assets and the effect of a
 7% decline in total average deposits.
     Noninterest income totaled $398 million, an increase of $44 million, or
 12%, from the year-ago quarter.  Trading income increased $24 million, or 45%,
 from the 2000 first quarter and $20 million, or 35%, from the prior quarter,
 reflecting healthy asset-backed finance, fixed income and derivative trading
 activities.  Non-deposit service charges increased $26 million, or 20%, from
 the 2000 first quarter, reflecting strong underwriting fees, corporate debt
 issuance revenues and strong loan fees, partially offset by weak syndication
 activity.  Service charges on deposits decreased $3 million, or 2%, from the
 year-ago quarter.  Compared to the prior quarter, service charges on deposits
 declined $5 million, or 4%, reflecting the seasonality of treasury management
 services fees.
     The provision for credit losses was $264 million, a $132 million increase
 from the year-ago quarter.  Total net charge-offs were $249 million in the
 first quarter, representing 1.23% of average commercial loans, up from 0.42%
 in the year-ago quarter and down slightly from 1.24% in the prior quarter.
 Corporate Banking net charge-offs were 1.61% of average loans in the first
 quarter, up from 0.49% in the year-ago quarter and down from 1.58% in the
 prior quarter.  The year-over-year increase reflected the accelerated
 disposition of problem loans through loan sales.  Middle Market net charge-
 offs were 0.73% of average loans in the first quarter, compared to 0.31% in
 the year-ago quarter and 0.74% in the prior quarter, reflecting overall
 economic weakness.
     The allowance for credit losses was $3.034 billion at March 31, 2001, up
 from $3.020 billion at the end of the prior quarter.  This represented 3.86%
 of period-end loans and 197% of nonperforming loans, compared to 3.71% and
 198%, respectively, at December 31, 2000. At March 31, 2001, Corporate Banking
 nonperforming loans were $952 million, down $113 million, or 11%, from
 December 31, 2000, reflecting the sale of problem credits.  Overall, increases
 in Corporate Banking nonperforming loans have continued at approximately the
 same pace as in the prior two quarters.  Middle Market nonperforming loans
 increased $134 million, or 29%, to $592 million during the same time period,
 reflecting continued economic deterioration.
     Noninterest expense totaled $544 million, down $26 million, or 5%, from
 the year-ago quarter and $13 million, or 2%, from the prior quarter.  Salaries
 and benefits expense was down slightly from the year-ago quarter.  Compared to
 the prior quarter, salaries and benefits expense was up due to higher
 incentive compensation.  Other noninterest expense decreased $19 million, or
 6%, from the year-ago quarter and $42 million, or 13%, from the prior quarter,
 reflecting the continued impact of waste reduction activities, partially
 offset by capital markets infrastructure improvements.  The efficiency ratio
 in the first quarter was 51%, improved from 56% in the year-ago quarter.
 
     First USA
     First USA reported first quarter net income of $148 million, up
 $81 million from the year-ago quarter and 10% from the 2000 fourth quarter.
 The year-over-year increase primarily reflected the impact of lower expenses
 and managed provision for credit losses, which was partially offset by an $89
 million, or 5%, decline in revenues.  First quarter results represented a
 1.46% pretax return on outstandings, up from 0.63% in the year-ago and 1.28%
 in the 2000 fourth quarter. Net interest income was $1.391 billion, down $134
 million, or 9%, from the year-ago quarter, reflecting lower fee revenue, a
 decline in average outstandings and a narrower spread.  Compared with the
 prior quarter, net interest income decreased 2%, reflecting lower fee revenue.
     Average managed outstandings for the first quarter were $65.4 billion,
 down 3% from the year-ago period and essentially unchanged from the 2000
 fourth quarter average.  End-of-period managed loans declined to
 $64.0 billion.  Attrition on mature vintage balances improved from the year-
 ago quarter and was consistent with the previous quarter.  While attrition
 improved, customer card usage and related balances have declined, reflecting
 current economic conditions.  First USA opened 775,000 new accounts during the
 quarter, down slightly from the 2000 fourth quarter level, and had 50.6
 million cards issued at quarter end.  First USA continues to be a leader in
 online card marketing and customer service with over 2.4 million registered
 users of its website, FirstUSA.com .
     Noninterest income was $309 million, up $45 million, or 17%, from the
 prior year. This increase primarily reflected the difference in securitization
 activity between the periods.  Noninterest income was virtually unchanged from
 the 2000 fourth quarter.  The difference in securitization activity was offset
 by lower sales of fee-based products and seasonally lower interchange revenue.
     The managed provision for credit losses was $950 million, down $19 million
 from the year-ago quarter.  The managed net charge-off rate increased to 5.81%
 from 5.78%, reflecting the increased average age of the portfolio resulting
 from recent periods of lower new account growth and average outstandings.
 Managed net charge-offs were up from the 2000 fourth quarter, in line with
 expectations.  The managed 30-day and 90-day delinquency rates were 4.33% and
 2.02%, respectively, up from 4.08% and 1.91%, in the year-ago quarter, but
 down from 4.51% and equal to 2.02%, respectively, in the prior quarter,
 reflecting normal seasonality.
     Noninterest expense totaled $514 million, down $201 million, or 28%, from
 the prior year, reflecting the positive impact of waste-reduction initiatives,
 such as lower headcount, improved operating efficiency and reduced operating
 losses.  The decline from the year-ago quarter also reflected the sale of the
 international operations in the 2000 second quarter, lower operating costs and
 a decrease in internally allocated costs related to a mid-year 2000 change in
 allocation methodology.  Noninterest expense declined $123 million from the
 2000 fourth quarter, which included $46 million of special items.  The
 decrease in noninterest expense reflected lower expenses for purchased and
 professional services, as well as reduced fraud and operating losses.  None of
 the noninterest expense reductions related to marketing expense, which was up
 from both the year-ago and 2000 fourth quarter periods.  The efficiency ratio
 for the current period was 30%, down from 40% in the prior year and 37% from
 the 2000 fourth quarter.
 
     Investment Management
     Investment Management reported first quarter net income of $82 million, a
 slight increase from the year-ago quarter.  This reflected a $24 million, or
 6%, increase in revenue, which was partially offset by higher expenses.
 Compared to the prior quarter, net income remained flat, reflecting the
 continued impact of volatile and difficult market conditions.
     Period-end assets under management increased to $131.5 billion, up
 slightly from the year-ago and 2000 fourth quarters.  One Group(R) mutual fund
 assets under management increased to $71.0 billion in the first quarter, a
 6% increase year-over-year and a 1% increase from the prior quarter.  Overall,
 One Group(R) net fund flows remained positive.  In the first quarter, the mix
 of assets under management changed.  Money market assets increased
 significantly, fixed income assets increased modestly and equity assets
 declined from both the year-ago and the 2000 fourth quarters.
     Compared to the first quarter of 2000, the $7.0 billion decline in assets
 under management from the Private Client Services segment was partially offset
 by a $5.9 billion increase in assets under management in the Institutional
 segment.
     During the first quarter, overall One Group(R) fund performance remained
 strong.  The assets in funds rated 4 and 5 by Morningstar increased from
 49% in the fourth quarter of 2000 to 62% in the first quarter of 2001, with
 95% of assets in funds rated three stars or higher.  The One Group(R)
 Diversified Mid Cap fund was cited by Mutual Fund Magazine as one of the
 20 best performance-tested funds for 2001, based on its comparison of over
 6,000 diversified stock and balanced funds in the Morningstar database.  Also
 in the quarter, IMG launched its 50th fund and third sector fund, the One
 Group(R) Health Sciences fund.
     Net interest income totaled $104 million, up $4 million, or 4%, from the
 year-ago period.  Higher spread income associated with the 6% increase in
 average loans was partially offset by the effect of the 6% decrease in average
 deposits.  Compared to the prior quarter, net interest income was unchanged.
     Noninterest income was $307 million, an increase of $20 million, or 7%,
 from the year-ago quarter.  Beginning in the 2000 fourth quarter, fees
 associated with the in-house administration of the One Group(R) mutual funds
 were recorded as revenue, with a corresponding increase in expense.  Prior to
 that, a third-party administrator incurred such fees and expenses, which
 totaled $24 million in the first quarter.  Excluding the impact of this
 change, as well as the sale of the land trust business in the prior-year
 quarter, noninterest income increased 4% from a year ago.
     Compared to the prior quarter, noninterest income increased $7 million,
 or 2%.  Excluding the effect of the above-mentioned change in the
 administration of the One Group(R) funds, noninterest income was essentially
 flat versus the prior quarter, reflecting the previously mentioned shift in
 the value and mix of assets under management.
     Retail brokerage sales of mutual funds and annuities were $1.1 billion in
 the first quarter, down $55 million, or 5%, from the year-ago quarter and up
 $199 million, or 21%, from the prior quarter, despite the weaker market
 conditions.  The mix of product sold reflected a shift by retail investors to
 annuities.
     Noninterest expense of $277 million increased $20 million, or 8%, from the
 year-ago quarter.  Excluding the expenses associated with the administration
 of the One Group(R) funds, noninterest expense declined slightly from a year
 ago.  Noninterest expense increased $9 million, or 3%, from the 2000 fourth
 quarter due principally to that quarter's lower incentive expense.
 
     Corporate Investments
     Corporate Investments reported a first quarter net loss of $29 million,
 compared with net income of $141 million in the year-ago quarter and a net
 loss of $15 million in the 2000 fourth quarter.  First quarter results were
 negatively impacted by significant declines in equity valuations, while
 various leasing strategies continued to provide stable core performance in the
 current quarter, consistent with the year-ago and prior quarters.
     Net interest income of $26 million declined $9 million, or 26%, from the
 year-ago quarter, due to the funding of investments that do not yield interest
 income.
     Noninterest income declined $272 million from the year-ago quarter to a
 net expense of $87 million reflecting valuations of marketable equity
 securities, mostly held through investments in funds.  The Corporation
 currently holds approximately $300 million in marketable equity securities.
     Noninterest expense of $19 million declined $20 million, or 51%, from the
 year-ago quarter reflecting lower incentive-based compensation and stronger
 expense control.  Noninterest expense increased $12 million from the
 $7 million reported in the 2000 fourth quarter driven primarily by the fourth
 quarter's lower incentive compensation.
 
     Corporate / Unallocated
     Corporate/Unallocated includes Treasury, unallocated Corporate expenses
 and any gain or loss from Corporate transactions.  Included in first quarter
 results were gains of $73 million pre-tax ($43 million after tax) on the sale
 of the Corporation's portion of the controlling equity position in EquiServe
 Limited Partnership and on the sale of the Corporation's investment in Star
 Systems, an ATM network.  Excluding these gains, the first quarter recorded a
 net loss of $73 million.
 
     CREDIT QUALITY (See Line of Business discussions for additional
 information)
     Nonperforming assets, which include nonperforming commercial loans, other
 real estate owned and consumer loans 90 days past due, were $2.665 billion at
 the end of the first quarter, up $92 million from December 31, 2000.
 Commercial nonperforming assets increased a net $44 million after reflecting
 the sale of $375 million of nonperforming loans.  Consumer nonperforming
 assets increased $40 million from the end of last year.  Nonperforming assets
 were 1.55% of related assets at March 31, 2001, up from 1.48% at December 31,
 2000.
     Total managed net charge-offs in the first quarter were $1.405 billion, or
 2.40% of total average managed loans, up from $1.309 billion, or 2.22%, in the
 fourth quarter.  Total managed net charge-offs in the year-ago quarter were
 $1.176 billion, or 2.04% of total average managed loans.
     The credit card managed net charge-off ratio was 5.81% in the first
 quarter, up from 5.41% in the fourth quarter and 5.78% in the year-ago
 quarter.
     Commercial net charge-offs across all lines of business in the 2001 first
 quarter were 1.03%, down from 1.10% in the fourth quarter but up from 0.34% in
 the year-ago quarter.
     The managed provision for credit losses in the first quarter was
 $1.461 billion, down from $2.329 billion in the fourth quarter.  The reported
 provision for credit losses in the first quarter was $585 million, compared
 with $1.507 billion in the fourth quarter, and exceeded net charge-offs by
 $96 million.
     At March 31, 2001, the allowance for credit losses was $4.205 billion, up
 $95 million from the end of the prior quarter.   This represented 2.45% of
 period-end loans, up from 2.36% at the end of last year, and represented 164%
 of nonperforming loans, down slightly from 166%, at December 31, 2000.
     Commercial loan credit quality and nonperforming loans are expected to
 continue to deteriorate at approximately the same rate as recent quarters for
 several more quarters.  The Corporation will also continue to manage this risk
 exposure which could result in the sale of additional loans and higher
 charge-offs for which the company believes reserves are currently adequate.
     Consumer and credit card losses are expected to modestly increase from
 current levels.  For credit cards, this reflects the aging of that portfolio
 against little new growth, whereas for other consumer loans it reflects our
 brokered home equity and auto exposures.
     Further deterioration in the general economic environment would probably
 cause higher credit costs in both the commercial and consumer portfolios.
 
     CAPITAL MANAGEMENT
     The tangible common equity to tangible managed assets ratio was 5.6% at
 March 31, 2001, up from 5.5% at December 31, 2000.  Tier 1 and Total capital
 ratios were 7.8% and 11.2% at quarter end, respectively, compared with 7.3%
 and 10.8%, at December 31, 2000.  Capital ratios remained very strong and
 exceeded the well-capitalized regulatory guidelines.
 
     BANK ONE CORPORATION is the nation's fifth largest bank holding company,
 with assets of more than $270 billion.  Bank One offers a full range of
 financial services to large corporate and middle market commercial customers
 and retail consumers.  It is the largest VISA credit card issuer, the third
 largest bank lender to small businesses and one of the top 25 managers of
 mutual funds.  A leader in the retail market, Bank One operates more than
 1,800 banking centers and a nationwide network of ATMs.  Information about
 Bank One's financial results can be accessed on the Internet at
 www.bankone.com or through fax-on-demand at 877-ONE-FACT.
 
     Forward-looking Statement
     The following appears in accordance with the Private Securities Litigation
 Reform Act of 1995:
     This discussion of financial results contains forward-looking statements
 about the Corporation, including descriptions of plans or objectives of its
 management for future operations, products or services, and forecasts of its
 revenues, earnings or other measures of economic performance.  Forward-looking
 statements can be identified by the fact that they do not relate strictly to
 historical or current facts.  They often include the words "believe,"
 "expect," "anticipate," "intend," "plan," "estimate" or words of similar
 meaning, or future or conditional verbs such as "will," "would," "should,"
 "could" or "may."
     Forward-looking statements, by their nature, are subject to risks and
 uncertainties.  A number of factors -- many of which are beyond the
 Corporation's control -- could cause actual conditions, events or results to
 differ significantly from those described in the forward-looking statements.
 The Corporation's reports filed with the Securities and Exchange Commission,
 including the Corporation's Form 10-K for the year ended December 31, 2000,
 describe some of these factors, including certain credit, market, operational,
 liquidity and interest rate risks associated with the Corporation's business
 and operations.  Other factors described in the Corporation's December 31,
 2000 Form 10-K include changes in business and economic conditions,
 competition, fiscal and monetary policies and legislation including the Gramm-
 Leach-Bliley Act of 1999.
     Forward-looking statements speak only as of the date they are made.  The
 Corporation does not undertake to update forward-looking statements to reflect
 circumstances or events that occur after the date the forward-looking
 statements are made or to reflect the occurrence of unanticipated events, such
 as further market deterioration that adversely affects credit quality, auto
 lease residuals and credit card asset values.
 
     Line of Business Basis of Discussion
     Second quarter 2000 line of business results are on a reported basis.
 Previously, these results excluded significant items.
     First USA's presentation is on a managed basis with information modified
 from reported results to include credit card loans that were securitized and
 removed from the balance sheet.  The net revenue related to these securitized
 loans are reclassified from noninterest income to net interest income and
 provision for credit losses as if the securitization had not occurred.
 
     Conference Call and Webcast Information
     An analyst meeting and conference call discussing the quarter's results
 will be held at 9:00 a.m. (EDT) today.  To participate phone 800-967-7135
 (domestic) or 719-457-2626 (international); the access code is 786197.  The
 conference call will also be Webcast on the Internet at www.bankone.com .  A
 playback of this conference call will be available after noon today through
 Friday, April 27, by calling 888-203-1112 (domestic) or 719-457-0820
 (international); the access code is 786197.
 
     Supplemental Financial Schedules
     A Summary of Selected Financial Information follows.  Additional Line of
 Business and Consolidated results are available on Bank One's website
 www.bankone.com .
 
 
     BANK ONE CORPORATION and Subsidiaries
     Summary of Consolidated
     Selected Financial         2001                     2000
     Information              1st Qtr   4th Qtr   3rd Qtr   2nd Qtr   1st Qtr
 
     INCOME STATEMENT DATA
      $MM
     Total revenue, net of
      interest expense          $3,792    $3,461    $3,942    $2,509    $4,014
     Net interest income
      (FTE)                      2,218     2,247     2,242     2,257     2,228
     Noninterest income          1,607     1,247     1,734       288     1,821
     Provision for credit
      losses                       585     1,507       516     1,013       362
     Noninterest expense         2,236     2,847     2,593     3,507     2,661
     Net income (loss)             679      (512)      581    (1,269)      689
 
     PER COMMON SHARE DATA
     Net income (loss):
           Basic                 $0.58    $(0.44)    $0.50    $(1.11)    $0.60
           Diluted (a)            0.58     (0.44)     0.50     (1.11)     0.60
     Cash dividends declared      0.21      0.21      0.21      0.42      0.42
     Book value                  16.20     15.90     16.47     16.12     17.43
 
     BALANCE SHEET DATA -
      ENDING BALANCES $MM
     Loans:
          Managed             $229,942  $236,492  $237,505  $234,412  $229,673
          Reported             171,427   174,251   176,419   172,591   168,078
     Deposits                  163,555   167,077   164,130   163,169   164,643
     Long-term debt (b)         42,197    40,911    42,641    39,093    38,753
     Total assets:
          Managed              315,104   309,096   324,780   316,011   317,176
          Reported             274,352   269,300   283,373   272,709   273,008
     Common stockholders'
      equity                    18,876    18,445    19,042    18,630    20,081
     Total stockholders'
      equity                    19,066    18,635    19,232    18,820    20,271
 
     CREDIT QUALITY RATIOS
     Net charge-offs to
      average loans - managed     2.40%     2.22%     1.86%     1.99%     2.04%
     Allowance for credit
      losses to period end
      loans                       2.45      2.36      1.75      1.73      1.39
     Nonperforming assets to
      related assets              1.55      1.48      1.21      1.03      0.99
 
     FINANCIAL PERFORMANCE
      RATIOS
     Return (loss) on average
      assets                      1.02%    (0.75)%    0.85%    (1.87)%    1.03%
     Return (loss) on average
      common equity               14.6     (10.7)     12.2     (26.0)     13.9
     Net interest margin:
          Managed                 4.76      4.65      4.66      4.80      4.91
          Reported                3.71      3.67      3.68      3.77      3.78
     Efficiency ratio:
          Managed                 47.6      66.0      54.6     103.8      53.7
          Reported                58.5      81.5      65.2     137.8      65.7
 
     CAPITAL RATIOS
     Risk-based capital:
          Tier 1                   7.8       7.3       7.5       7.2       7.7
          Total                   11.2      10.8      10.9      10.3      10.6
     Tangible common equity/
      tangible managed assets      5.6       5.5       5.4       5.4       5.7
 
     COMMON STOCK DATA MM
     Average shares
      outstanding:
           Basic                 1,163     1,158     1,156     1,153     1,149
           Diluted (a)           1,173     1,158     1,167     1,153     1,155
     Stock price, quarter-end   $36.18    $36.63    $38.06    $26.56    $34.38
     Employees (c)              79,157    80,778    81,291    82,443       N/A
 
     (a)  Common equivalent shares have been excluded from the computation of
          diluted loss per share in the second and fourth quarters of 2000 as
          the effect would be antidilutive.
     (b)  Includes trust preferred capital securities.
     (c)  Beginning in 1Q01, long-term disability employees and employees of
          unconsolidated subsidiaries are excluded. Prior period data has not
          been restated for this change. Excluding this change in methodology,
          headcount declined 328 in 1Q01.
 
 SOURCE  Bank One Corporation