53 EXHIBIT 11 CHEMICAL BANKING CORPORATION and Subsidiaries Computation of net income per common share ------------------------------------------ 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. Other 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: --------------------------- (In millions, except per share data) Net income Period Ended Average common applicable to Net income March 31 shares outstanding common shares(A) per share ----------------------------------- --------------- --------- Three months 1995 243.2 $355 $1.46(B) 1994 253.2 $287 $1.13 [FN] (A) After dividends on the preferred stock of $30 million and $32 million for the three months ended March 31, 1995 and 1994, respectively. (B) In the first quarter of 1995, the Corporation adopted SFAS 106 for its foreign employees which resulted in a charge of $11 million after tax or $.05 per common share. Net income before the effect of the accounting change was $1.51 per common share.