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Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
J.P. Morgan & Co. Incorporated
Consolidated
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Six months
Dollars in millions 1997
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Earnings:
Net income $ 798
Add: income taxes 394
Less: equity in undistributed income of all affiliates
accounted for by the equity method 17
Add: fixed charges, excluding interest on deposits 3,657
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Earnings available for fixed charges, excluding
interest on deposits 4,832
Add: interest on deposits 1,333
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Earnings available for fixed charges, including
interest on deposits 6,165
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Fixed charges:
Interest expense, excluding interest on deposits 3,643
Interest factor in net rental expense 14
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Total fixed charges, excluding interest on deposits 3,657
Add: interest on deposits 1,333
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Total fixed charges, including interest on deposits 4,990
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Ratio of earnings to fixed charges:
Excluding interest on deposits 1.32
Including interest on deposits 1.24
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Exhibit 12
Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
J.P. Morgan & Co. Incorporated
Consolidated
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Six months
Dollars in millions 1997
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Earnings:
Net income $ 798
Add: income taxes 394
Less: equity in undistributed income of all affiliates
accounted for by the equity method 17
Add: fixed charges, excluding interest on deposits
and preferred stock dividends 3,657
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Earnings available for fixed charges, excluding
interest on deposits 4,832
Add: interest on deposits 1,333
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Earnings available for fixed charges, including
interest on deposits 6,165
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Fixed charges:
Interest expense, excluding interest on deposits 3,643
Interest factor in net rental expense 14
Preferred stock dividends 27
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Total fixed charges, excluding interest on deposits 3,684
Add: interest on deposits 1,333
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Total fixed charges, including interest on deposits 5,017
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Ratio of earnings to fixed charges and preferred stock dividends:
Excluding interest on deposits 1.31
Including interest on deposits 1.23
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