EXHIBIT 12(C)
BANKBOSTON CORPORATION
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(Excluding Interest on Deposits)
The Corporation's ratios of earnings to combined fixed charges and preferred
stock dividend requirements (excluding interest on deposits) for the nine months
ended September 30, 1997 and 1996 and for the five years ended December 31, 1996
were as follows:
Nine Months Ended
September 30, Years Ended December 31,
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(Dollars in millions)
1997 1996 1996 1995 1994 1993 1992
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Net income $ 645 $ 449 $ 650 $ 678 $ 542 $ 367 $ 338
Extraordinary items, net of tax 7 (73)
Cumulative effect of changes in accounting
principles, net of tax (24)
Income tax expense 434 341 483 529 422 262 190
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Pretax earnings $ 1,079 $ 790 $ 1,133 $ 1,207 $ 971 $ 605 $ 455
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Fixed charges:
Portion of rental expense (net of sublease
rental income) which approximates the
interest factor $ 29 $ 30 $ 40 $ 38 $ 35 $ 36 $ 37
Interest on borrowed funds 783 652 873 1,079 1,038 384 352
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Total fixed charges $ 812 $ 682 $ 913 $ 1,117 $ 1,073 $ 420 $ 389
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Preferred stock dividend requirements 46 49 65 68 67 61 33
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Total combined fixed charges and
preferred stock dividend requirements $ 858 $ 731 $ 978 $ 1,185 $ 1,140 $ 481 $ 422
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Earnings (for ratio calculation)
(Pretax earnings plus total
fixed charges) $ 1,891 $ 1,472 $ 2,046 $ 2,324 $ 2,044 $ 1,025 $ 844
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Ratio of earnings to combined
fixed charges and preferred
stock dividend requirements 2.20 2.01 2.09 1.96 1.79 2.13 2.00
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For purposes of computing the consolidated ratio of earnings to fixed charges
and preferred stock dividend requirements "earnings" represent income 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. Pretax earnings required for preferred stock dividends were computed
using tax rates for the applicable year.