BANK OF BOSTON CORPORATION EXHIBIT 12(a)
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Excluding Interest on Deposits)
The Corporation's ratios of earnings to fixed charges (excluding interest on
deposits) for the three months ended March 31, 1996 and 1995 and for the five
years ended December 31, 1995 were as follows:
Three Months Ended March 31, Years Ended December 31,
(dollars in millions)
1996 1995 1995 1994 1993 1992 1991
---- ---- ----- ----- ---- ---- ----
Net income (loss) $ 117 $ 125 $ 541 $ 435 $ 299 $ 279 $ (113)
Extraordinary items, net of tax 7 (73) (8)
Cumulative effect of changes
in accounting principles,
net of tax (24)
Income tax expense (benefit) 88 121 444 349 215 153 (58)
---- ---- ----- ----- ---- ---- ----
Pretax earnings (loss) $ 205 $ 246 $ 985 $ 791 $ 490 $ 359 $ (179)
==== ==== ===== ===== ==== ==== ====
Fixed charges:
Portion of rental expense
(net of sublease
rental income) which
approximates the
interest factor 7 8 29 27 27 28 30
Interest on borrowed funds 245 245 1,021 998 378 345 362
---- ---- ----- ------ ---- ---- ----
Total fixed charges 252 253 1,050 1,025 405 373 392
---- ---- ----- ------ ---- ---- ----
Earnings (for ratio calculation) $ 457 $ 499 $ 2,035 $ 1,816 $ 895 $ 732 $ 213
==== ==== ===== ====== ====== ==== ====
Total fixed charges $ 252 $ 253 $ 1,050 $ 1,025 $ 405 $ 373 $ 392
==== ==== ===== ===== ==== ==== ====
Ratio of earnings to fixed
charges 1.81 1.97 1.94 1.77 2.21 1.96 .54
==== ==== ===== ===== ==== ==== ====
For purposes of computing the consolidated ratio of earnings to fixed charges
"earnings" represent income (loss) before extraordinary items and cumulative
effect of changes in accounting principles plus applicable income taxes and
fixed charges. "Fixed charges" include gross interest expense (excluding
interest on deposits) and the proportion deemed representative of the interest
factor of rent expense, net of income from subleases. For the year ended
December 31, 1991, earnings were insufficient to cover fixed charges. Additional
earnings necessary for the year ended December 31, 1991 to bring the ratio of
earnings to fixed charges to a one-to-one basis are $179 million.