1 EXHIBIT 12 Computation of Ratio of Earnings to Fixed Charges J.P. Morgan & Co. Incorporated Consolidated - -------------------------------------------------------------------------------- Three Months Dollars in millions 1999 - -------------------------------------------------------------------------------- Earnings: Net income $ 600 Add: income taxes 324 Less: equity in undistributed income of all affiliates accounted for by the equity method 54 Add: fixed charges, excluding interest on deposits 1,761 - -------------------------------------------------------------------------------- Earnings available for fixed charges, excluding interest on deposits 2,631 Add: interest on deposits 616 - -------------------------------------------------------------------------------- Earnings available for fixed charges, including interest on deposits 3,247 - -------------------------------------------------------------------------------- Fixed charges: Interest expense, excluding interest on deposits 1,752 Interest factor in net rental expense 9 - -------------------------------------------------------------------------------- Total fixed charges, excluding interest on deposits 1,761 Add: interest on deposits 616 - -------------------------------------------------------------------------------- Total fixed charges, including interest on deposits 2,377 - -------------------------------------------------------------------------------- Ratio of earnings to fixed charges: Excluding interest on deposits 1.49 Including interest on deposits 1.37 - -------------------------------------------------------------------------------- 2 EXHIBIT 12 Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends J.P. Morgan & Co. Incorporated Consolidated - -------------------------------------------------------------------------------- Three Months Dollars in millions 1999 - -------------------------------------------------------------------------------- Earnings: Net income $ 600 Add: income taxes 324 Less: equity in undistributed income of all affiliates accounted for by the equity method 54 Add: fixed charges, excluding interest on deposits and preferred stock dividends 1,775 - -------------------------------------------------------------------------------- Earnings available for fixed charges, excluding interest on deposits 2,645 Add: interest on deposits 616 - -------------------------------------------------------------------------------- Earnings available for fixed charges, including interest on deposits 3,261 - -------------------------------------------------------------------------------- Fixed charges: Interest expense, excluding interest on deposits 1,752 Interest factor in net rental expense 9 Preferred stock dividends 14 - -------------------------------------------------------------------------------- Total fixed charges, excluding interest on deposits 1,775 Add: interest on deposits 616 - -------------------------------------------------------------------------------- Total fixed charges, including interest on deposits 2,391 - -------------------------------------------------------------------------------- Ratio of earnings to fixed charges: Excluding interest on deposits 1.49 Including interest on deposits 1.36 - --------------------------------------------------------------------------------