Bank of America Corporation and Subsidiaries
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Exhibit 12 | |||||||||||||||||||||||
Ratio of Earnings to Fixed Charges |
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Ratio of Earnings to Fixed Charges and Preferred Dividends |
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| Three Months Ended | Year Ended December 31 | |||||||||||||||||||||||
| (Dollars in millions) | March 31, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Excluding Interest on Deposits |
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Income before income taxes |
$ | 2,780 | $ | (1,323 | ) | $ | 4,360 | $ | 4,428 | $ | 20,924 | $ | 31,973 | |||||||||||
Equity in
undistributed earnings of unconsolidated subsidiaries |
841 | 1,285 | (1,833 | ) | (144 | ) | (95 | ) | (315 | ) | ||||||||||||||
Fixed charges: |
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Interest expense |
4,904 | 19,977 | 23,000 | 25,074 | 34,778 | 29,514 | ||||||||||||||||||
1/3 of net rent expense (1) |
278 | 1,099 | 1,110 | 791 | 669 | 609 | ||||||||||||||||||
Total fixed charges |
5,182 | 21,076 | 24,110 | 25,865 | 35,447 | 30,123 | ||||||||||||||||||
Preferred dividend requirements (2) |
421 | n/m | 5,921 | 1,461 | 254 | 33 | ||||||||||||||||||
Fixed charges and preferred dividends |
5,603 | 21,076 | 30,031 | 27,326 | 35,701 | 30,156 | ||||||||||||||||||
Earnings |
$ | 8,803 | $ | 21,038 | $ | 26,637 | $ | 30,149 | $ | 56,276 | $ | 61,781 | ||||||||||||
Ratio of earnings to fixed charges |
1.70 | 1.00 | 1.10 | 1.17 | 1.59 | 2.05 | ||||||||||||||||||
Ratio of
earnings to fixed charges and preferred dividends (2, 3) |
1.57 | n/m | - | 1.10 | 1.58 | 2.05 | ||||||||||||||||||
| Three Months Ended | Year Ended December 31 | |||||||||||||||||||||||
| (Dollars in millions) | March 31, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Including Interest on Deposits |
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Income before income taxes |
$ | 2,780 | $ | (1,323 | ) | $ | 4,360 | $ | 4,428 | $ | 20,924 | $ | 31,973 | |||||||||||
Equity in undistributed earnings of
unconsolidated subsidiaries |
841 | 1,285 | (1,833 | ) | (144 | ) | (95 | ) | (315 | ) | ||||||||||||||
Fixed charges: |
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Interest expense |
5,743 | 23,974 | 30,807 | 40,324 | 52,871 | 43,994 | ||||||||||||||||||
1/3 of net rent expense (1) |
278 | 1,099 | 1,110 | 791 | 669 | 609 | ||||||||||||||||||
Total fixed charges |
6,021 | 25,073 | 31,917 | 41,115 | 53,540 | 44,603 | ||||||||||||||||||
Preferred dividend requirements (2) |
421 | n/m | 5,921 | 1,461 | 254 | 33 | ||||||||||||||||||
Fixed charges and preferred dividends |
6,442 | 25,073 | 37,838 | 42,576 | 53,794 | 44,636 | ||||||||||||||||||
Earnings |
$ | 9,642 | $ | 25,035 | $ | 34,444 | $ | 45,399 | $ | 74,369 | $ | 76,261 | ||||||||||||
Ratio of earnings to fixed charges |
1.60 | 1.00 | 1.08 | 1.10 | 1.39 | 1.71 | ||||||||||||||||||
Ratio of earnings to fixed charges and
preferred dividends (2, 3) |
1.50 | n/m | - | 1.07 | 1.38 | 1.71 | ||||||||||||||||||
| (1) | Represents an appropriate interest factor. | |
| (2) | Reflects the impact of $12.4 billion of goodwill impairment charges during 2010 which resulted in a negative preferred dividend requirement. | |
| (3) | The earnings for 2009 were inadequate to cover fixed
charges and preferred stock dividends. The earnings
deficiency is a result of the 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. |
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| n/m = not meaningful |