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EXHIBIT 12
ADVANTA CORP. AND SUBSIDIARIES
STATEMENT SETTING FORTH DETAILS OF COMPUTATION OF RATIO
OF EARNINGS TO FIXED CHARGES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ IN THOUSANDS) FOR THE YEARS ENDED DECEMBER 31,
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1998 1997 1996 1995 1994
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Net Earnings $447,880 $ 71,625 $175,657 $136,677 $106,063
Federal and state income taxes (9,044) 24,905 89,104 75,226 59,144
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Earnings before income taxes(A) 438,836 96,530 264,761 211,903 165,207
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Fixed charges:
Interest 184,275 324,558 269,700 166,032 94,758
One-third of all rentals 2,627 3,492 2,834 1,641 1,809
Preferred stock dividend of subsidiary trust 8,990 8,990 350 0 0
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Total fixed charges 195,892 337,040 272,884 167,673 96,567
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Earnings before income taxes and fixed charges 634,728 433,570 537,645 379,576 261,774
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Ratio of earnings to fixed charges(B) 3.24x 1.29x 1.97x 2.26x 2.71x
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(A) Earnings before income taxes in 1998 include a $541.3 million gain on
transfer of consumer credit card business and $125.1 million of other
charges including severance and outplacement costs associated with workforce
reduction, option exercise and other employee costs associated with the
Fleet Transaction/Tender Offer; expense associated with exited
business/product; and asset impairment.
(B) For purposes of computing these ratios, "earnings" represent income before
income taxes plus fixed charges. "Fixed charges" consist of interest
expense, one-third (the portion deemed representative of the interest
factor) of rental expense on operating leases, and preferred stock dividends
of subsidiary trust.
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