1 2 Exhibit 12 Computation of Ratio of Earnings to Fixed Charges J.P. Morgan & Co. Incorporated Consolidated - -------------------------------------------------------------------------------- Dollars in millions Six months 1996 - -------------------------------------------------------------------------------- Earnings: Net income $ 879 Add: income taxes 433 Less: equity in undistributed income of all affiliates accounted for by the equity method 12 Add: fixed charges, excluding interest on deposits 3,068 - -------------------------------------------------------------------------------- Earnings available for fixed charges, excluding interest on deposits 4,368 Add: interest on deposits 1,269 - -------------------------------------------------------------------------------- Earnings available for fixed charges, including interest on deposits 5,637 - -------------------------------------------------------------------------------- Fixed charges: Interest expense, excluding interest on deposits 3,051 Interest factor in net rental expense 17 - -------------------------------------------------------------------------------- Total fixed charges, excluding interest on deposits 3,068 Add: interest on deposits 1,269 - -------------------------------------------------------------------------------- Total fixed charges, including interest on deposits 4,337 - -------------------------------------------------------------------------------- Ratio of earnings to fixed charges: Excluding interest on deposits 1.42 Including interest on deposits 1.30 - -------------------------------------------------------------------------------- 2 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 1996 - -------------------------------------------------------------------------------- Earnings: Net income $ 879 Add: income taxes 433 Less: equity in undistributed income of all affiliates accounted for by the equity method 12 Add: fixed charges, excluding interest on deposits and preferred stock dividends 3,068 - -------------------------------------------------------------------------------- Earnings available for fixed charges, excluding interest on deposits 4,368 Add: interest on deposits 1,269 - -------------------------------------------------------------------------------- Earnings available for fixed charges, including interest on deposits 5,637 - -------------------------------------------------------------------------------- Fixed charges: Interest expense, excluding interest on deposits 3,051 Interest factor in net rental expense 17 Preferred stock dividends 24 - -------------------------------------------------------------------------------- Total fixed charges, excluding interest on deposits 3,092 Add: interest on deposits 1,269 - -------------------------------------------------------------------------------- Total fixed charges, including interest on deposits 4,361 - -------------------------------------------------------------------------------- Ratio of earnings to fixed charges: Excluding interest on deposits 1.41 Including interest on deposits 1.29 - --------------------------------------------------------------------------------