Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
J.P. Morgan & Co. Incorporated
Consolidated
________________________________________________________________________________
Dollars in millions
Twelve months ended December 31
________________________________________________________________________________
1994 1993 1992 1991 1990
________________________________________________________________________________
Earnings:
Income before extraordinary gain
and cumulative effect of
accounting $1 215 $1 723 $1 130 $1 114 $ 775
changes
Add: income taxes 610 968 619 371 279
Less: equity in undistributed
income
(loss) of all affiliates 21 50 3 1 (4 )
accounted
for by the equity method
Add: fixed charges, excluding
interest
on deposits and capitalized 4 483 3 781 3 292 3 503 3 874
interest
________________________________________________________________________________
Earnings available for fixed
charges, 6 287 6 422 5 038 4 987 4 932
excluding interest on deposits
Add: interest on deposits 1 946 1 917 2 306 2 830 3 456
________________________________________________________________________________
Earnings available for fixed
charges, 8 233 8 339 7 344 7 817 8 388
including interest on deposits
________________________________________________________________________________
Fixed charges:
Interest expense, excluding
interest on 4 452 3 753 3 267 3 472 3 841
deposits
Interest factor in net rental 31 28 25 31 33
expense
________________________________________________________________________________
Total fixed charges, excluding
interest
on deposits and capitalized 4 483 3 781 3 292 3 503 3 874
interest
Capitalized interest - - - 20 59
________________________________________________________________________________
Total fixed charges, excluding
interest 4 483 3 781 3 292 3 523 3 933
on deposits
Add: interest on deposits 1 946 1 917 2 306 2 830 3 456
________________________________________________________________________________
Total fixed charges, including
interest 6 429 5 698 5 598 6 353 7 389
on deposits
________________________________________________________________________________
Ratio of earnings to fixed charges:
Excluding interest on deposits 1.40 1.70(a) 1.53(b) 1.42(c) 1.25(d)
Including interest on deposits 1.28 1.46(a) 1.31(b) 1.23(c) 1.14(d)
________________________________________________________________________________
<FN>
(a) For the year ended December 31, 1993, the ratio of earnings to fixed
charges, including the cumulative effect of a change in the method of accounting
for postretirement benefits other than pensions, was 1.64 excluding interest on
deposits and 1.43 including interest on deposits.
(b) For the year ended December 31, 1992, the ratio of earnings to fixed
charges, including the cumulative effect of a change in the method of accounting
for income taxes, was 1.67 excluding interest on deposits and 1.39 including
interest on deposits.
(c) For the year ended December 31, 1991, the ratio of earnings to fixed
charges, including the extraordinary gain on early retirement of debt, was 1.43
excluding interest on deposits and 1.24 including interest on deposits.
(d) For the year ended December 31, 1990, the ratio of earnings to fixed
charges, including the cumulative effect of a change in the method of accounting
for trading swaps, was 1.32 excluding interest on deposits and 1.17 including
interest on deposits.
2
Exhibit 12
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock
Dividends
J.P. Morgan & Co. Incorporated
Consolidated
________________________________________________________________________________
Dollars in millions
Twelve months ended December 31
________________________________________________________________________________
1994 1993 1992 1991 1990
________________________________________________________________________________
Earnings:
Income before extraordinary gain
and cumulative effect of
accounting $1 215 $1 723 $1 130 $1 114 $ 775
changes
Add: income taxes 610 968 619 371 279
Less: equity in undistributed
income
(loss) of all affiliates 21 50 3 1 (4)
accounted
for by the equity method
Add: fixed charges, excluding
interest
on deposits, preferred stock 4 483 3 781 3 292 3 503 3 874
dividends, and capitalized
interest
________________________________________________________________________________
Earnings available for fixed
charges, 6 287 6 422 5 038 4 987 4 932
excluding interest on deposits
Add: interest on deposits 1 946 1 917 2 306 2 830 3 456
________________________________________________________________________________
Earnings available for fixed
charges, 8 233 8 339 7 344 7 817 8 388
including interest on deposits
________________________________________________________________________________
Fixed charges:
Interest expense, excluding
interest on 4 452 3 753 3 267 3 472 3 841
deposits
Interest factor in net rental 31 28 25 31 33
expense
________________________________________________________________________________
Total fixed charges, excluding
interest
on deposits, preferred stock 4 483 3 781 3 292 3 503 3 874
dividends, and capitalized
interest
Preferred stock dividends 30 28 29 32 38
Capitalized interest - - - 20 59
________________________________________________________________________________
Total fixed charges, excluding
interest 4 513 3 809 3 321 3 555 3 971
on deposits
Add: interest on deposits 1 946 1 917 2 306 2 830 3 456
________________________________________________________________________________
Total fixed charges, including
interest 6 459 5 726 5 627 6 385 7 427
on deposits
________________________________________________________________________________
Ratio of earnings to fixed charges:
Excluding interest on deposits 1.39 1.69(a) 1.52(b) 1.40(c) 1.24(d)
Including interest on deposits 1.27 1.46(a) 1.31(b) 1.22(c) 1.13(d)
________________________________________________________________________________
<FN>
(a) For the year ended December 31, 1993, the ratio of earnings to combined
fixed charges and preferred stock dividends, including the cumulative effect of
a change in the method of accounting for postretirement benefits other than
pensions, was 1.63 excluding interest on deposits and 1.42 including interest on
deposits.
(b) For the year ended December 31, 1992, the ratio of earnings to combined
fixed charges and preferred stock dividends, including the cumulative effect of
a change in the method of accounting for income taxes, was 1.65 excluding
interest on deposits and 1.39 including interest on deposits.
(c) For the year ended December 31, 1991, the ratio of earnings to combined
fixed charges and preferred stock dividends, including the extraordinary gain on
early retirement of debt, was 1.41 excluding interest on deposits and 1.23
including interest on deposits.
(d) For the year ended December 31, 1990, the ratio of earnings to combined
fixed charges and preferred stock dividends, including the cumulative effect of
a change in the method of accounting for trading swaps, was 1.31 excluding
interest on deposits and 1.17 including interest on deposits.