1
EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
J.P. Morgan & Co. Incorporated
Consolidated
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Dollars in millions
Twelve months ended December 31
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1997 1996 1995 1994 1993
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Earnings:
Net income $ 1 465 $ 1 574 1 296 $1 215 $1 723
Add: income taxes 689 758 610 610 968
Less: equity in undistributed
income of all affiliates
accounted for by the
equity method 40 25 16 21 50
Add: fixed charges, excluding
interest on deposits 7 756 6 502 5 452 4 483 3 781
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Earnings available for fixed
charges, excluding interest
on deposits 9 870 8 809 7 342 6 287 6 422
Add: interest on deposits 2 753 2 541 2 520 1 946 1 917
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Earnings available for fixed
charges, including interest
on deposits 12 623 11 350 9 862 8 233 8 339
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Fixed charges:
Interest expense, excluding
interest on deposits 7 728 6 470 5 414 4 452 3 753
Interest factor in net
rental expense 28 32 38 31 28
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Total fixed charges, excluding
interest on deposits 7 756 6 502 5 452 4 483 3 781
Add: interest on deposits 2 753 2 541 2 520 1 946 1 917
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Total fixed charges, including
interest on deposits 10 509 9 043 7 972 6 429 5 698
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Ratio of earnings to fixed charges:
Excluding interest on deposits 1.27 1.35 1.35 1.40 1.70(a)
Including interest on deposits 1.20 1.26 1.24 1.28 1.46(a)
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<FN>
(a) For the year ended December 31, 1993, the ratio of earnings to fixed
charges, including the cumulative effect of a change in the method of
accounting for postretirement benefits other than pensions, was 1.64 excluding
interest on deposits and 1.43 including interest on deposits.
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EXHIBIT 12
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
J.P. Morgan & Co. Incorporated
Consolidated
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Dollars in millions
Twelve months ended December 31
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1997 1996 1995 1994 1993
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Earnings:
Net income $ 1 465 $ 1 574 $1 296 $1 215 $1 723
Add: income taxes 689 758 610 610 968
Less: equity in undistributed income
of all affiliates accounted for by
the equity method 40 25 16 21 50
Add: fixed charges, excluding interest
on deposits and preferred stock
dividends 7 756 6 502 5 452 4 483 3 781
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Earnings available for fixed charges,
excluding interest on deposits 9 870 8 809 7 342 6 287 6 422
Add: interest on deposits 2 753 2 541 2 520 1 946 1 917
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Earnings available for fixed charges,
including interest on deposits 12 623 11 350 9 862 8 233 8 339
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Fixed charges:
Interest expense, excluding interest on
deposits 7 728 6 470 5 414 4 452 3 753
Interest factor in net rental expense 28 32 38 31 28
Preferred stock dividends 51 49 35 30 28
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Total fixed charges, excluding interest
on deposits 7 807 6 551 5 487 4 513 3 809
Add: interest on deposits 2 753 2 541 2 520 1 946 1 917
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Total fixed charges, including interest
on deposits 10 560 9 092 8 007 6 459 5 726
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Ratio of earnings to fixed charges:
Excluding interest on deposits 1.26 1.34 1.34 1.39 1.69(a)
Including interest on deposits 1.20 1.25 1.23 1.27 1.46(a)
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<FN>
(a) For the year ended December 31, 1993, the ratio of earnings to combined fixed charges and preferred stock
dividends, including the cumulative effect of a change in the method of accounting for postretirement
benefits other than pensions, was 1.63 excluding interest on deposits and 1.42 including interest on
deposits.