Bank of America Corporation and Subsidiaries | Exhibit 12 | ||||||||||||||||||
Ratio of Earnings to Fixed Charges | |||||||||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Dividends | |||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||
(Dollars in millions) | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
Excluding Interest on Deposits | |||||||||||||||||||
Income (loss) before income taxes | $ | 3,072 | $ | (230 | ) | $ | (1,323 | ) | $ | 4,360 | $ | 4,428 | |||||||
Equity in undistributed earnings (loss) of unconsolidated subsidiaries | 212 | 596 | 1,210 | (1,833 | ) | (144 | ) | ||||||||||||
Fixed charges: | |||||||||||||||||||
Interest expense | 14,754 | 18,618 | 19,977 | 23,000 | 25,074 | ||||||||||||||
1/3 of net rent expense (1) | 1,092 | 1,072 | 1,099 | 1,110 | 791 | ||||||||||||||
Total fixed charges | 15,846 | 19,690 | 21,076 | 24,110 | 25,865 | ||||||||||||||
Preferred dividend requirements (2) | 1,080 | n/m | 802 | 5,921 | 1,461 | ||||||||||||||
Fixed charges and preferred dividends | 16,926 | 19,690 | 21,878 | 30,031 | 27,326 | ||||||||||||||
Earnings | $ | 19,130 | $ | 20,056 | $ | 20,963 | $ | 26,637 | $ | 30,149 | |||||||||
Ratio of earnings to fixed charges (3) | 1.21 | 1.02 | 0.99 | 1.10 | 1.17 | ||||||||||||||
Ratio of earnings to fixed charges and preferred dividends (3, 4) | 1.13 | 1.02 | 0.96 | 0.89 | 1.10 | ||||||||||||||
Year Ended December 31 | |||||||||||||||||||
(Dollars in millions) | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
Including Interest on Deposits | |||||||||||||||||||
Income (loss) before income taxes | $ | 3,072 | $ | (230 | ) | $ | (1,323 | ) | $ | 4,360 | $ | 4,428 | |||||||
Equity in undistributed earnings (loss) of unconsolidated subsidiaries | 212 | 596 | 1,210 | (1,833 | ) | (144 | ) | ||||||||||||
Fixed charges: | |||||||||||||||||||
Interest expense | 16,744 | 21,620 | 23,974 | 30,807 | 40,324 | ||||||||||||||
1/3 of net rent expense (1) | 1,092 | 1,072 | 1,099 | 1,110 | 791 | ||||||||||||||
Total fixed charges | 17,836 | 22,692 | 25,073 | 31,917 | 41,115 | ||||||||||||||
Preferred dividend requirements (2) | 1,080 | n/m | 802 | 5,921 | 1,461 | ||||||||||||||
Fixed charges and preferred dividends | 18,916 | 22,692 | 25,875 | 37,838 | 42,576 | ||||||||||||||
Earnings | $ | 21,120 | $ | 23,058 | $ | 24,960 | $ | 34,444 | $ | 45,399 | |||||||||
Ratio of earnings to fixed charges | 1.18 | 1.02 | 1.00 | 1.08 | 1.10 | ||||||||||||||
Ratio of earnings to fixed charges and preferred dividends (3, 4) | 1.12 | 1.02 | 0.96 | 0.91 | 1.07 | ||||||||||||||
(1) | Represents an appropriate interest factor. |
(2) | Reflects the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges during 2011 which resulted in a negative preferred dividend requirement. |
(3) | The earnings for 2010 were inadequate to cover fixed charges and the ratio of earnings to fixed charges and preferred dividends. The earnings deficiency is a result of $12.4 billion of goodwill impairment charges during 2010. The coverage deficiency for fixed charges was $113 million and the coverage deficiency for fixed charges and preferred dividends was $915 million. |
(4) | The earnings for 2009 were inadequate to cover fixed charges and preferred dividends. The earnings deficiency is a result of accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion. |