1 EXHIBIT 11 THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES COMPUTATION OF NET INCOME PER SHARE Net income for primary and fully-diluted EPS are computed by subtracting from the applicable earnings the dividend requirements on preferred stock to arrive at earnings applicable to common stock and dividing this amount by the weighted-average number of common and common equivalent shares outstanding during the period. For a further discussion of Chase's earnings per share computation, see Note One of Chase's 1996 Annual Report. (in millions, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, -------------------------- -------------------------- EARNINGS PER SHARE 1997 1996 1997 1996 PRIMARY Earnings: Net Income $ 982 $ 858 $ 2,834 $ 1,625 Less: Preferred Stock Dividend Requirements 41 55 147 164 --------- --------- --------- --------- Net Income Applicable to Common Stock $ 941 $ 803 $ 2,687 $ 1,461 ========= ========= ========= ========= Shares: Average Common and Common Equivalent Shares Outstanding 433.6 447.2 436.5 446.0 Primary Earnings Per Share: Net Income $ 2.17 $ 1.80 $ 6.16 $ 3.28 ========= ========= ========= ========= ASSUMING FULL DILUTION Earnings: Net Income Applicable to Common Stock $ 941 $ 803 $ 2,687 $ 1,461 Shares: Average Common and Common Equivalent Shares Outstanding 433.6 447.2 436.5 446.0 Additional Shares Issuable Upon Exercise of Stock Options for Dilutive Effect 2.7 3.3 5.7 6.3 --------- --------- --------- --------- Adjusted Shares of Common and Equivalent Shares Outstanding 436.3 450.5 442.2 452.3 Earnings Per Share Assuming Full Dilution: Net Income $ 2.16 $ 1.78 $ 6.08 $ 3.23 ========= ========= ========= ========= -51-