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EXHIBIT 12
PAGE 1
Computation of Ratio of Earnings to Fixed Charges
J.P. Morgan & Co. Incorporated
Consolidated
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Nine months
Dollars in millions 1997
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Earnings:
Net income 1,194
Add: income taxes 588
Less: equity in undistributed income of all affiliates
accounted for by the equity method 32
Add: fixed charges, excluding interest on deposits 5,644
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Earnings available for fixed charges, excluding
interest on deposits 7,394
Add: interest on deposits 2,043
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Earnings available for fixed charges, including
interest on deposits 9,437
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Fixed charges:
Interest expense, excluding interest on deposits 5,622
Interest factor in net rental expense 22
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Total fixed charges, excluding interest on deposits 5,644
Add: interest on deposits 2,043
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Total fixed charges, including interest on deposits 7,687
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Ratio of earnings to fixed charges:
Excluding interest on deposits 1.31
Including interest on deposits 1.23
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PAGE 2
Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
J.P. Morgan & Co. Incorporated
Consolidated
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Nine months
Dollars in millions 1997
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Earnings:
Net income 1,194
Add: income taxes 588
Less: equity in undistributed income of all affiliates
accounted for by the equity method 32
Add: fixed charges, excluding interest on deposits
and preferred stock dividends 5,644
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Earnings available for fixed charges, excluding
interest on deposits 7,394
Add: interest on deposits 2,043
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Earnings available for fixed charges, including
interest on deposits 9,437
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Fixed charges:
Interest expense, excluding interest on deposits 5,622
Interest factor in net rental expense 22
Preferred stock dividends 40
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Total fixed charges, excluding interest on deposits 5,684
Add: interest on deposits 2,043
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Total fixed charges, including interest on deposits 7,727
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Ratio of earnings to fixed charges and preferred stock dividends:
Excluding interest on deposits 1.30
Including interest on deposits 1.22
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