Form: 10-K

Annual report pursuant to Section 13 and 15(d)

February 25, 2015

Documents



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)
2014
 
2013
 
2012
 
2011
 
2010
Excluding Interest on Deposits
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
6,855

 
$
16,172

 
$
3,072

 
$
(230
)
 
$
(1,323
)
Equity in undistributed earnings (loss) of unconsolidated subsidiaries
(222
)
 
(66
)
 
212

 
596

 
1,210

Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
9,854

 
11,359

 
14,754

 
18,618

 
19,977

1/3 of net rent expense (1)
1,023

 
1,091

 
1,092

 
1,072

 
1,099

Total fixed charges
10,877

 
12,450

 
15,846

 
19,690

 
21,076

Preferred dividend requirements (2)
1,481

 
1,767

 
1,080

 
n/m

 
802

Fixed charges and preferred dividends
12,358

 
14,217

 
16,926

 
19,690

 
21,878

Earnings
$
17,510

 
$
28,556

 
$
19,130

 
$
20,056

 
$
20,963

Ratio of earnings to fixed charges (3)
1.61

 
2.29

 
1.21

 
1.02

 
0.99

Ratio of earnings to fixed charges and preferred dividends (3)
1.42

 
2.01

 
1.13

 
1.02

 
0.96

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
(Dollars in millions)
2014
 
2013
 
2012
 
2011
 
2010
Including Interest on Deposits
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
6,855

 
$
16,172

 
$
3,072

 
$
(230
)
 
$
(1,323
)
Equity in undistributed earnings (loss) of unconsolidated subsidiaries
(222
)
 
(66
)
 
212

 
596

 
1,210

Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
10,934

 
12,755

 
16,744

 
21,620

 
23,974

1/3 of net rent expense (1)
1,023

 
1,091

 
1,092

 
1,072

 
1,099

Total fixed charges
11,957

 
13,846

 
17,836

 
22,692

 
25,073

Preferred dividend requirements (2)
1,481

 
1,767

 
1,080

 
n/m

 
802

Fixed charges and preferred dividends
13,438

 
15,613

 
18,916

 
22,692

 
25,875

Earnings
$
18,590

 
$
29,952

 
$
21,120

 
$
23,058

 
$
24,960

Ratio of earnings to fixed charges
1.55

 
2.16

 
1.18

 
1.02

 
1.00

Ratio of earnings to fixed charges and preferred dividends (3)
1.38

 
1.92

 
1.12

 
1.02

 
0.96

(1) 
Represents an appropriate interest factor.
(2) 
The earnings for 2011 reflect the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges, which resulted in a negative preferred dividend requirement.
(3) 
The earnings for 2010 were inadequate to cover fixed charges, and 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 for 2010.
n/m = not meaningful