Exhibit 12.2
JPMorgan Chase & Co.
JPMorgan Chase & Co.
Computation of Ratio of Earnings to Fixed Charges
And Preferred Stock Dividend Requirements
And Preferred Stock Dividend Requirements
| Year ended December 31, | ||||||||||||||||||||
| (in millions, except ratios) | 2009 | 2008(c) | 2007 | 2006 | 2005 | |||||||||||||||
Excluding interest on deposits |
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Income from continuing operations
before income taxes |
$ | 16,067 | $ | 2,773 | $ | 22,805 | $ | 19,886 | $ | 11,839 | ||||||||||
Fixed charges: |
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Interest expense |
10,372 | 19,693 | 23,328 | 20,823 | 15,534 | |||||||||||||||
One-third of rents, net of income from
subleases(a) |
569 | 507 | 400 | 357 | 349 | |||||||||||||||
Total fixed charges |
10,941 | 20,200 | 23,728 | 21,180 | 15,883 | |||||||||||||||
Less: Equity in undistributed income
of affiliates/Add: Equity in
undistributed
loss of affiliates |
(21 | ) | 623 | (159 | ) | (152 | ) | 6 | ||||||||||||
Income from continuing operations before
income taxes and fixed charges,
excluding
capitalized interest |
$ | 26,987 | $ | 23,596 | $ | 46,374 | $ | 40,914 | $ | 27,728 | ||||||||||
Fixed charges, as above |
$ | 10,941 | $ | 20,200 | $ | 23,728 | $ | 21,180 | $ | 15,883 | ||||||||||
Preferred stock dividends (pretax) |
3,435 | (b) | 803 | — | 6 | 18 | ||||||||||||||
Fixed charges including preferred stock
dividends |
$ | 14,376 | $ | 21,003 | $ | 23,728 | $ | 21,186 | $ | 15,901 | ||||||||||
Ratio of earnings to fixed charges and
preferred stock dividend requirements |
1.88 | 1.12 | 1.95 | 1.93 | 1.74 | |||||||||||||||
Including interest on deposits |
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Fixed charges including preferred stock
dividends, as above |
$ | 14,376 | $ | 21,003 | $ | 23,728 | $ | 21,186 | $ | 15,901 | ||||||||||
Add: Interest on deposits |
4,826 | 14,546 | 21,653 | 17,042 | 9,986 | |||||||||||||||
Total fixed charges including preferred
stock dividends and interest on
deposits |
$ | 19,202 | $ | 35,549 | $ | 45,381 | $ | 38,228 | $ | 25,887 | ||||||||||
Income from continuing operations before
income taxes and fixed charges,
excluding
capitalized interest, as above |
$ | 26,987 | $ | 23,596 | $ | 46,374 | $ | 40,914 | $ | 27,728 | ||||||||||
Add: Interest on deposits |
4,826 | 14,546 | 21,653 | 17,042 | 9,986 | |||||||||||||||
Total income from continuing operations
before income taxes, fixed charges and
interest on deposits |
$ | 31,813 | $ | 38,142 | $ | 68,027 | $ | 57,956 | $ | 37,714 | ||||||||||
Ratio of earnings to fixed charges and
preferred stock dividend requirements |
1.66 | 1.07 | 1.50 | 1.52 | 1.46 | |||||||||||||||
| (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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