Bank of America Corporation and Subsidiaries | Exhibit 12 |
Ratio of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges and Preferred Dividends
Three Months Ended | Year Ended December 31 | |||||||||||||||||
(Dollars in millions) | March 31, 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||
Excluding Interest on Deposits | ||||||||||||||||||
Income before income taxes | $ | 4,389 | $ | 4,360 | $ | 4,428 | $ | 20,924 | $ | 31,973 | $ | 24,480 | ||||||
Equity in undistributed earnings of unconsolidated subsidiaries | (290) | (1,833) | (144) | (95) | (315) | (151) | ||||||||||||
Fixed charges: | ||||||||||||||||||
Interest expense | 5,008 | 23,000 | 25,074 | 34,778 | 29,514 | 18,397 | ||||||||||||
1/3 of net rent expense(1) | 271 | 1,110 | 791 | 669 | 609 | 585 | ||||||||||||
Total fixed charges | 5,279 | 24,110 | 25,865 | 35,447 | 30,123 | 18,982 | ||||||||||||
Preferred dividend requirements | 480 | 5,921 | 1,461 | 254 | 33 | 27 | ||||||||||||
Fixed charges and preferred dividends | 5,759 | 30,031 | 27,326 | 35,701 | 30,156 | 19,009 | ||||||||||||
Earnings | $ | 9,378 | $ | 26,637 | $ | 30,149 | $ | 56,276 | $ | 61,781 | $ | 43,311 | ||||||
Ratio of earnings to fixed charges | 1.78 | 1.10 | 1.17 | 1.59 | 2.05 | 2.28 | ||||||||||||
Ratio of earnings to fixed charges and preferred dividends(2) | 1.63 | - | 1.10 | 1.58 | 2.05 | 2.28 | ||||||||||||
Three Months Ended | Year Ended December 31 | |||||||||||||||||
(Dollars in millions) | March 31, 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||
Including Interest on Deposits | ||||||||||||||||||
Income before income taxes | $ | 4,389 | $ | 4,360 | $ | 4,428 | $ | 20,924 | $ | 31,973 | $ | 24,480 | ||||||
Equity in undistributed earnings of unconsolidated subsidiaries | (290) | (1,833) | (144) | (95) | (315) | (151) | ||||||||||||
Fixed charges: | ||||||||||||||||||
Interest expense | 6,130 | 30,807 | 40,324 | 52,871 | 43,994 | 27,889 | ||||||||||||
1/3 of net rent expense(1) | 271 | 1,110 | 791 | 669 | 609 | 585 | ||||||||||||
Total fixed charges | 6,401 | 31,917 | 41,115 | 53,540 | 44,603 | 28,474 | ||||||||||||
Preferred dividend requirements | 480 | 5,921 | 1,461 | 254 | 33 | 27 | ||||||||||||
Fixed charges and preferred dividends | 6,881 | 37,838 | 42,576 | 53,794 | 44,636 | 28,501 | ||||||||||||
Earnings | $ | 10,500 | $ | 34,444 | $ | 45,399 | $ | 74,369 | $ | 76,261 | $ | 52,803 | ||||||
Ratio of earnings to fixed charges | 1.64 | 1.08 | 1.10 | 1.39 | 1.71 | 1.85 | ||||||||||||
Ratio of earnings to fixed charges and preferred dividends(2) | 1.53 | - | 1.07 | 1.38 | 1.71 | 1.85 |
(1) | Represents an appropriate interest factor. |
(2) | 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. |