1 Exhibit 12 Computation of Ratio of Earnings to Fixed Charges J.P. Morgan & Co. Incorporated Consolidated _____________________________________________________________________ Dollars in millions Three months 1995 _____________________________________________________________________ Earnings: Net income $255 Add: income taxes 131 Less: equity in undistributed income of all affiliates accounted for by the equity method 4 Add: fixed charges, excluding interest on deposits 1,359 _____________________________________________________________________ Earnings available for fixed charges, excluding interest on deposits 1,741 Add: interest on deposits 619 _____________________________________________________________________ Earnings available for fixed charges, including interest on deposits 2,360 _____________________________________________________________________ Fixed charges: Interest expense, excluding interest on deposits 1,351 Interest factor in net rental expense 8 _____________________________________________________________________ Total fixed charges, excluding interest on deposits 1,359 Add: interest on deposits 619 _____________________________________________________________________ Total fixed charges, including interest on deposits 1,978 _____________________________________________________________________ Ratio of earnings to fixed charges: Excluding interest on deposits 1.28 Including interest on deposits 1.19 _____________________________________________________________________ 2 Exhibit 12 Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends J.P. Morgan & Co. Incorporated Consolidated _______________________________________________________________________________ Dollars in millions Three months 1995 _______________________________________________________________________________ Earnings: Net income $ 255 Add: income taxes 131 Less: equity in undistributed income of all affiliates accounted for by the equity method 4 Add: fixed charges, excluding interest on deposits and preferred stock dividends 1,359 _______________________________________________________________________________ Earnings available for fixed charges, excluding interest on deposits 1,741 Add: interest on deposits 619 _______________________________________________________________________________ Earnings available for fixed charges, including interest on deposits 2,360 _______________________________________________________________________________ Fixed charges: Interest expense, excluding interest on deposits 1,351 Interest factor in net rental expense 8 Preferred stock dividends 9 _______________________________________________________________________________ Total fixed charges, excluding interest on deposits 1,368 Add: interest on deposits 619 _______________________________________________________________________________ Total fixed charges, including interest on deposits 1,987 _______________________________________________________________________________ Ratio of earnings to fixed charges: Excluding interest on deposits 1.27 Including interest on deposits 1.19 _______________________________________________________________________________