Good Points 

The company's stock has gained more than 30 percent since the deal.

Smart Sell 

Unlike some competitors, J.P. Morgan began unloading subprime-mortgage investments early.

Smaller Woes 

In the wake of the subprime crisis, the bank's third-quarter write-down was $2.5 billion. Citigroup's was $5.9 billion; Merrill Lynch's was $7.9 billion.

Promise Keeper 

With moves small (eliminating phone lines) and large (getting out of a $5 billion outsourcing deal with I.B.M.), C.E.O. Jamie Dimon has met his goal of reducing overhead by $3 billion.

Suite Deal 

The cost cuts have yet to reach the top executive suite: Dimon's compensation in 2006 was $41 million, up 84 percent from that of his predecessor, Bill Harrison.

The Irony 

A protégé of ex-Citigroup chairman Sandy Weill, Dimon lost a succession struggle in 1998. Today, Chuck Prince, Weill's handpicked heir, is jobless, and Weill's dream of a finance supermarket may come true—at J.P. Morgan.

Bottom Line 

J.P. Morgan's profitability has ticked up since the merger, and the bank gets credit for avoiding the major write-downs of its competition. But the jury is still out on whether it can improve its retail banking performance.

Final Grade

B+