Bank of America (BAC) 10-K 2012 FY Annual report

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.

n/m = not meaningful