EX-12.2 3 y86143exv12w2.htm EX-12.2 exv12w2
Exhibit 12.2
JPMorgan Chase & Co.
Computation of Ratio of Earnings to Fixed Charges
And Preferred Stock Dividend Requirements
                                         
Year ended December 31,                              
(in millions, except ratios)   2010     2009     2008(c)     2007     2006  
 
 
                                        
Excluding interest on deposits
                                        
 
                                        
Income from continuing operations before income taxes
   $ 24,859     $ 16,067     $ 2,773     $ 22,805     $ 19,886  
 
Fixed charges:
                                        
Interest expense
     9,357       10,372       19,693       23,328       20,823  
One-third of rents, net of income from subleases(a)
     578       569       507       400       357  
 
Total fixed charges
     9,935       10,941       20,200       23,728       21,180  
 
Less: Equity in undistributed income of affiliates/Add: Equity in undistributed loss of affiliates
     127       (21 )     623       (159 )     (152 )
 
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest
   $ 34,921     $ 26,987     $ 23,596     $ 46,374     $ 40,914  
 
Fixed charges, as above
   $ 9,935     $ 10,941     $ 20,200     $ 23,728     $ 21,180  
Preferred stock dividends (pretax)
     947       3,435 (b)     803       —       6  
 
Fixed charges including preferred stock dividends
   $ 10,882     $ 14,376     $ 21,003     $ 23,728     $ 21,186  
 
Ratio of earnings to fixed charges and preferred stock dividend requirements
     3.21       1.88       1.12       1.95       1.93  
 
 
                                        
Including interest on deposits
                                        
 
                                        
Fixed charges including preferred stock dividends, as above
   $ 10,882     $ 14,376     $ 21,003     $ 23,728     $ 21,186  
Add: Interest on deposits
     3,424       4,826       14,546       21,653       17,042  
 
Total fixed charges including preferred stock dividends and interest on deposits
   $ 14,306     $ 19,202     $ 35,549     $ 45,381     $ 38,228  
 
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest, as above
   $ 34,921     $ 26,987     $ 23,596     $ 46,374     $ 40,914  
Add: Interest on deposits
     3,424       4,826       14,546       21,653       17,042  
 
Total income from continuing operations before income taxes, fixed charges and interest on deposits
   $ 38,345     $ 31,813     $ 38,142     $ 68,027     $ 57,956  
 
Ratio of earnings to fixed charges and preferred stock dividend requirements
     2.68       1.66       1.07       1.50       1.52  
 
 
(a)   The proportion deemed representative of the interest factor.
 
(b)   Includes a one-time $1.6 billion pretax payment of TARP preferred dividends.
 
(c)   On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank. On May 30, 2008, JPMorgan Chase merged with The Bear Stearns Companies Inc. Each of these transactions was accounted for as a purchase, and their respective results of operations are included in the Firm’s results from each respective transaction date.

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