BANK OF BOSTON CORPORATION EXHIBIT 12(b)
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Including Interest on Deposits)
The Corporation's ratios of earnings to fixed charges (including interest on
deposits) for the six months ended June 30, 1996 and 1995
and for the five years ended December 31, 1995 were as follows:
Six Months Ended June 30, Years Ended December 31,
(dollars in millions)
1996 1995 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ---- ----
Net income (loss) $ 295 $ 259 $ 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) 216 225 444 349 215 153 (58)
----- ----- ----- ----- ----- ----- -----
Pretax earnings (loss) $ 511 $ 484 $ 985 $ 791 $ 490 $ 359 $ (179)
===== ===== ===== ===== ===== ===== =====
Fixed charges:
Portion of rental expense
(net of sublease
rental income) which
approximates the
interest factor 15 14 29 27 27 28 30
Interest on borrowed funds 446 500 1,021 998 378 345 362
Interest on deposits 718 777 1,557 1,148 1,016 1,407 1,808
----- ----- ----- ----- ----- ----- -----
Total fixed charges 1,179 1,291 2,607 2,173 1,421 1,780 2,200
----- ----- ----- ----- ----- ----- -----
Earnings (for ratio calculation) $ 1,690 $ 1,775 $ 3,592 $ 2,964 $ 1,911 $ 2,139 $ 2,021
===== ===== ===== ===== ===== ===== =====
Total fixed charges $ 1,179 $ 1,291 $ 2,607 $ 2,173 $ 1,421 $ 1,780 $ 2,200
===== ===== ===== ===== ===== ===== =====
Ratio of earnings to fixed
charges 1.43 1.37 1.38 1.36 1.34 1.20 .92
===== ===== ===== ===== ===== ===== =====
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 (including 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.