EXHIBIT 12.2 UNITED COMPANIES FINANCIAL CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS (dollars in thousands) Three Months Ended March 31, Year Ended December 31, 1997 1996 1995 1994 1993 1992 --------------- ----------------------------------------------------- Income from continuing operations before income taxes $31,497 $133,857 $102,665 $74,994 $40,426 $16,800 Add Portion of rents representative of the interest factor 937 2,970 2,259 2,051 1,430 1,121 Interest on indebtedness 12,230 38,626 25,559 13,362 9,881 10,897 Proportionate share of interest on indebtedness of 50%-owned investee 69 285 373 375 380 383 Less : intercompany interest (69) (285) (373) (375) (380) (383) --------------- ----------------------------------------------------- Income as adjusted $44,664 $175,453 $130,483 $90,407 $51,737 $28,818 Fixed charges Preferred stock dividends $1,452 $5,806 $3,145 $333 Ratio of income from continuing operations before income taxes to income from continuing operations 156% 155% 158% 152% Preferred stock dividends on a pretax basis 2,269 9,017 4,973 506 Portion of rents representative of the interest factor 937 2,970 2,259 $2,051 1,430 $1,121 Interest on indebtedness 12,230 38,626 25,559 13,362 9,881 10,897 Interest capitalized 128 40 0 40 0 0 Proportionate share of interest on indebtedness of 50%-owned investee 69 285 373 375 380 383 Less : intercompany interest (69) (285) (373) (375) (380) (383) -------------- ----------------------------------------------------- Fixed charges $15,564 $50,653 $32,791 $15,453 $11,817 $12,018 Ratio of earnings to fixed charges 2.9 3.5 4.0 5.9 4.4 2.4 ============= =====================================================