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EXHIBIT 11
CHEMICAL BANKING CORPORATION and Subsidiaries
Computation of net income per common share
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Net income per common share is computed by dividing net income
after deducting dividends on preferred stock, by the weighted
average number of common shares outstanding during the period.
Common share equivalents, such as stock options, are not required
to be included in the calculation since the applicable dilution
tests are not met.
Net income per common share:
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(In millions, except per share data)
Net income
Period Ended Average common applicable to Net income
September 30 shares outstanding common shares<A> per share
------------ -------------------- --------------- ---------
Three months 1994 246.6 $ 396 $1.60
1993 252.1 $ 464 $1.84
Nine months 1994 251.0 $1,007 $4.01
1993 250.8 $1,140 $4.55<B>
[FN]
<A> After dividends on the preferred stock of $43 million
(including $12 million premium on redemption of preferred
stock) and $38 million for the three months ended
September 30, 1994 and 1993, respectively, and of $108
million (including $12 million premium on redemption of
preferred stock) and $117 million for the nine months
ended September 30, 1994 and 1993, respectively.
<B> On January 1, 1993, the Corporation adopted SFAS 106
which resulted in a charge of $415 million or $1.67 per
common share relating to postretirement benefits and also
adopted SFAS 109 which resulted in an income tax benefit
of $450 million or $1.81 per common share. Net income
before the effect of accounting changes was $4.41 per
common share. The changes in accounting principles
increased net income per common share by $0.14.