2 Exhibit 12 Computation of Ratio of Earnings to Fixed Charges J.P. Morgan & Co. Incorporated Consolidated _____________________________________________________________________ _____________ Dollars in millions Six months 1995 _____________________________________________________________________ _____________ Earnings: Net income $ 570 Add: income taxes 281 Less: equity in undistributed income of all affiliates accounted for by the equity method 10 Add: fixed charges, excluding interest on deposits 2,651 _____________________________________________________________________ _____________ Earnings available for fixed charges, excluding interest on deposits 3,492 Add: interest on deposits 1,235 _____________________________________________________________________ _____________ Earnings available for fixed charges, including interest on deposits 4,727 _____________________________________________________________________ _____________ Fixed charges: Interest expense, excluding interest on deposits 2,632 Interest factor in net rental expense 19 _____________________________________________________________________ _____________ Total fixed charges, excluding interest on deposits 2,651 Add: interest on deposits 1,235 _____________________________________________________________________ _____________ Total fixed charges, including interest on deposits 3,886 _____________________________________________________________________ _____________ Ratio of earnings to fixed charges: Excluding interest on deposits 1.32 Including interest on deposits 1.22 _____________________________________________________________________ _____________ 3 Exhibit 12 Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends J.P. Morgan & Co. Incorporated Consolidated _______________________________________________________________________________ __ Dollars in millions Six months 1995 _______________________________________________________________________________ __ Earnings: Net income $ 570 Add: income taxes 281 Less: equity in undistributed income of all affiliates accounted for by the equity method 10 Add: fixed charges, excluding interest on deposits and preferred stock dividends 2,651 _______________________________________________________________________________ __ Earnings available for fixed charges, excluding interest on deposits 3,492 Add: interest on deposits 1,235 _______________________________________________________________________________ __ Earnings available for fixed charges, including interest on deposits 4,727 _______________________________________________________________________________ __ Fixed charges: Interest expense, excluding interest on deposits 2,632 Interest factor in net rental expense 19 Preferred stock dividends 18 _______________________________________________________________________________ __ Total fixed charges, excluding interest on deposits 2,669 Add: interest on deposits 1,235 _______________________________________________________________________________ __ Total fixed charges, including interest on deposits 3,904 _______________________________________________________________________________ __ Ratio of earnings to fixed charges: Excluding interest on deposits 1.31 Including interest on deposits 1.21 _______________________________________________________________________________ __