Exhibit 12
ADVANTA CORP. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Three Months Ended | Nine Months Ended | |||||||||||||||
| ($ in thousands) | September 30, | September 30, | ||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| Income from continuing operations | $ | 16,155 | $ | 10,600 | $ | 103,207 | $ | 30,871 | ||||||||
| Income tax expense | 10,329 | 6,921 | 31,871 | 20,155 | ||||||||||||
| Earnings before income taxes | 26,484 | 17,521 | 135,078 | (1) | 51,026 | |||||||||||
| Fixed charges: | ||||||||||||||||
| Interest on debt, deposits and other borrowings | 13,012 | 8,950 | 34,736 | 26,748 | ||||||||||||
| Interest on subordinated debt payable to preferred securities trust | 2,289 | 2,289 | 6,868 | 6,868 | ||||||||||||
| One-third of all rentals | 411 | 378 | 1,212 | 1,420 | ||||||||||||
| Total fixed charges | 15,712 | 11,617 | 42,816 | 35,036 | ||||||||||||
| Earnings before income taxes and fixed charges | $ | 42,196 | $ | 29,138 | $ | 177,894 | $ | 86,062 | ||||||||
Ratio of earnings to fixed charges(2) | 2.69 | x | 2.51 | x | 4.15 | x | 2.46 | x | ||||||||
| (1) | Earnings before income taxes in the nine months ended September 30, 2005 includes a $67.7 million gain on transfer of consumer credit card business relating to our May 28, 2004 agreement with Bank of America. | |
| (2) | For purposes of computing these ratios, “earnings” represent income before income taxes plus fixed charges. “Fixed charges” consist of interest expense and one-third (the portion deemed representative of the interest factor) of rental expense on operating leases. |