1
PAGE 2
Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
J.P. Morgan & Co. Incorporated
Consolidated
- ----------------------------------------------------------------------------------
Dollars in millions Three months
1997
- ----------------------------------------------------------------------------------
Earnings:
Net income $ 424
Add: income taxes 218
Less: equity in undistributed income of all affiliates
accounted for by the equity method 9
Add: fixed charges, excluding interest on deposits 1,786
- ----------------------------------------------------------------------------------
Earnings available for fixed charges, excluding
interest on deposits 2,419
Add: interest on deposits 663
- ----------------------------------------------------------------------------------
Earnings available for fixed charges, including
interest on deposits 3,082
- ----------------------------------------------------------------------------------
Fixed charges:
Interest expense, excluding interest on deposits 1,779
Interest factor in net rental expense 7
- ----------------------------------------------------------------------------------
Total fixed charges, excluding interest on deposits 1,786
Add: interest on deposits 663
- ----------------------------------------------------------------------------------
Total fixed charges, including interest on deposits 2,449
- ----------------------------------------------------------------------------------
Ratio of earnings to fixed charges:
Excluding interest on deposits 1.35
Including interest on deposits 1.26
- ----------------------------------------------------------------------------------
2
PAGE 3
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
1997
- -----------------------------------------------------------------------------------
Earnings:
Net income $ 424
Add: income taxes 218
Less: equity in undistributed income of all affiliates
accounted for by the equity method 9
Add: fixed charges, excluding interest on deposits
and preferred stock dividends 1,786
- -----------------------------------------------------------------------------------
Earnings available for fixed charges, excluding
interest on deposits 2,419
Add: interest on deposits 663
- -----------------------------------------------------------------------------------
Earnings available for fixed charges, including
interest on deposits 3,082
- -----------------------------------------------------------------------------------
Fixed charges:
Interest expense, excluding interest on deposits 1,779
Interest factor in net rental expense 7
Preferred stock dividends 14
- -----------------------------------------------------------------------------------
Total fixed charges, excluding interest on deposits 1,800
Add: interest on deposits 663
- -----------------------------------------------------------------------------------
Total fixed charges, including interest on deposits 2,463
- -----------------------------------------------------------------------------------
Ratio of earnings to fixed charges and preferred stock dividends:
Excluding interest on deposits 1.34
Including interest on deposits 1.25
- -----------------------------------------------------------------------------------