EX-12.2 4 corp10k2012exhibit122.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIV REQ CORP 10K 2012 Exhibit 12.2


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)
2012

2011

2010

2009

 
2008(c)

Excluding interest on deposits
 
 
 
 
 
 
Income from continuing operations before income taxes
$
28,917

$
26,749

$
24,859

$
16,067

 
$
2,773

Fixed charges:
 
 
 
 
 
 
Interest expense
8,498

9,749

9,357

10,372

 
19,693

One-third of rents, net of income from subleases(a)
554

562

578

569

 
507

Total fixed charges
9,052

10,311

9,935

10,941

 
20,200

Add: Equity in undistributed loss of affiliates/Less: Equity in undistributed income of affiliates
172

59

127

(21
)
 
623

Income from continuing operations before income taxes and fixed charges, excluding capitalized interest
$
38,141

$
37,119

$
34,921

$
26,987

 
$
23,596

Fixed charges, as above
$
9,052

$
10,311

$
9,935

$
10,941

 
$
20,200

Preferred stock dividends (pretax)
906

899

947

3,435

(b) 
803

Fixed charges including preferred stock dividends
$
9,958

$
11,210

$
10,882

$
14,376

 
$
21,003

Ratio of earnings to fixed charges and preferred stock dividend requirements
3.83

3.31

3.21

1.88

 
1.12

Including interest on deposits
 
 
 
 
 
 
Fixed charges including preferred stock dividends, as above
$
9,958

$
11,210

$
10,882

$
14,376

 
$
21,003

Add: Interest on deposits
2,655

3,855

3,424

4,826

 
14,546

Total fixed charges including preferred stock dividends and interest on deposits
$
12,613

$
15,065

$
14,306

$
19,202

 
$
35,549

Income from continuing operations before income taxes and fixed charges, excluding capitalized interest, as above
$
38,141

$
37,119

$
34,921

$
26,987

 
$
23,596

Add: Interest on deposits
2,655

3,855

3,424

4,826

 
14,546

Total income from continuing operations before income taxes, fixed charges and interest on deposits
$
40,796

$
40,974

$
38,345

$
31,813

 
$
38,142

Ratio of earnings to fixed charges and preferred stock dividend requirements
3.23

2.72

2.68

1.66

 
1.07

(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.