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 five years
ended December 31, 1997 were as follows:
Years Ended December 31,
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(Dollars in millions)
1997 1996 1995 1994 1993
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Net income $ 879 $ 650 $ 678 $ 542 $ 367
Extraordinary items, net of tax 7
Cumulative effect of changes
in accounting principles, net of tax (24)
Income tax expense 589 483 529 422 262
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Pretax earnings 1,468 1,133 1,207 971 605
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Fixed charges:
Portion of rental expense
(net of sublease
rental income) which
approximates the
interest factor 39 40 38 35 36
Interest on borrowed funds 1,050 873 1,079 1,038 384
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Total fixed charges 1,089 913 1,117 1,073 420
Preferred stock dividend
requirements 53 65 68 67 61
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Total combined fixed charges
and preferred stock dividend
requirements $ 1,142 $ 978 $ 1,185 $ 1,140 $ 481
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Earnings (for ratio calculation)
(Pretax earnings
plus total fixed charges) $ 2,557 $ 2,046 $ 2,324 $ 2,044 $ 1,025
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Ratio of earnings to combined
fixed charges and preferred
stock dividend requirements 2.24 2.09 1.96 1.79 2.13
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For purposes of computing the consolidated ratio of earnings to combined 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.