1
EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
J.P. Morgan & Co. Incorporated
Consolidated
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Nine Months
Dollars in millions 1998
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Earnings:
Net income $ 874
Add: income taxes 430
Less: equity in undistributed income
of all affiliates accounted for by
the equity method 15
Add: fixed charges, excluding interest
on deposits 7 167
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Earnings available for fixed charges,
excluding interest on deposits 8 456
Add: interest on deposits 2 138
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Earnings available for fixed charges,
including interest on deposits 10 594
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Fixed charges:
Interest expense, excluding interest on
deposits 6 521
Interest factor in net rental expense 34
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Total fixed charges, excluding interest
on deposits 6 555
Add: interest on deposits 2 138
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Total fixed charges, including interest
on deposits 8 693
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Ratio of earnings to fixed charges:
Excluding interest on deposits 1.29 (a)
Including interest on deposits 1.22 (a)
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(a) For the nine months ended September 30, 1998, the ratio of earnings to fixed
charges, excluding the third quarter 1998 after tax gain of $34 million ($56
million before tax); excluding the second quarter 1998 after tax gain of $79
million ($131 million before tax) related to the sale of the firm's global trust
and agency services business; and excluding the first quarter 1998 after tax
charge of $129 million ($215 million before tax) related to restructuring of
business activities,was 1.29 excluding interest on deposits and 1.22 including
interest on deposits.
2
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 Nine Months
1998
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Earnings:
Net income $ 874
Add: income taxes 430
Less: equity in undistributed income
of all affiliates accounted for by
the equity method 15
Add: fixed charges, excluding interest
on deposits and preferred stock
dividends 7 207
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Earnings available for fixed charges,
excluding interest on deposits 8 496
Add: interest on deposits 2 138
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Earnings available for fixed charges,
including interest on deposits 10 634
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Fixed charges:
Interest expense, excluding interest on
deposits 6 521
Interest factor in net rental expense 34
Preferred stock dividends 40
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Total fixed charges, excluding interest
on deposits 6 595
Add: interest on deposits 2 138
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Total fixed charges, including interest
on deposits 8 733
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Ratio of earnings to fixed charges and
preferred stock dividends:
Excluding interest on deposits 1.29 (a)
Including interest on deposits 1.22 (a)
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(a) For the nine months ended September 30, 1998, the ratio of earnings to fixed
charges and preferred stock dividends, excluding the third quarter 1998 after
tax gain of $34 million ($56 million before tax); excluding the second quarter
1998 after tax gain of $79 million ($131 million before tax) related to the sale
of the firm's global trust and agency services business; and excluding the first
quarter 1998 after tax charge of $129 million ($215 million before tax) related
to restructuring of business activities, was 1.29 excluding interest on deposits
and 1.22 including interest on deposits.