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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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1998 1997 1996 1995 1994
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Earnings:
Net income $ 963 $1 465 $1 574 $1 296 $1 215
Add: income taxes 454 689 758 610 610
Less: equity in undistributed income
of all affiliates accounted for by
the equity method 79 40 25 16 21
Add: fixed charges, excluding interest
on deposits 8 584 7 756 6 502 5 452 4 483
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Earnings available for fixed charges,
excluding interest on deposits 9 922 9 870 8 809 7 342 6 287
Add: interest on deposits 2 823 2 753 2 541 2 520 1 946
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Earnings available for fixed charges,
including interest on deposits 12 745 12 623 11 350 9 862 8 233
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Fixed charges:
Interest expense, excluding interest on
deposits 8 537 7 728 6 470 5 414 4 452
Interest factor in net rental expense 47 28 32 38 31
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Total fixed charges, excluding interest
on deposits 8 584 7 756 6 502 5 452 4 483
Add: interest on deposits 2 823 2 753 2 541 2 520 1 946
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Total fixed charges, including interest
on deposits 11 407 10 509 9 043 7 972 6 429
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Ratio of earnings to fixed charges:
Excluding interest on deposits 1.16 1.27 1.35 1.35 1.40
Including interest on deposits 1.12 1.20 1.26 1.24 1.28
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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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1998 1997 1996 1995 1994
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Earnings:
Net income $ 963 $1 465 $1 574 $1 296 $1 215
Add: income taxes 454 689 758 610 610
Less: equity in undistributed income
of all affiliates accounted for by
the equity method 79 40 25 16 21
Add: fixed charges, excluding interest
on deposits 8 637 7 756 6 502 5 452 4 483
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Earnings available for fixed charges,
excluding interest on deposits 9 975 9 870 8 809 7 342 6 287
Add: interest on deposits 2 823 2 753 2 541 2 520 1 946
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Earnings available for fixed charges,
including interest on deposits 12 798 12 623 11 350 9 862 8 233
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Fixed charges:
Interest expense, excluding interest on
deposits 8 537 7 728 6 470 5 414 4 452
Interest factor in net rental expense 47 28 32 38 31
Preferred stock dividends 53 51 49 35 30
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Total fixed charges, excluding interest
on deposits 8 637 7 807 6 551 5 487 4 513
Add: interest on deposits 2 823 2 753 2 541 2 520 1 946
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Total fixed charges, including interest
on deposits 11 460 10 560 9 092 8 007 6 459
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Ratio of earnings to fixed charges and
preferred stock dividends:
Excluding interest on deposits 1.15 1.26 1.34 1.34 1.39
Including interest on deposits 1.12 1.20 1.25 1.23 1.27
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