EXHIBIT 12(d)
BANKBOSTON CORPORATION
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDEND REQUIREMENTS
(Including Interest on Deposits)
The Corporation's ratios of earnings to combined fixed charges and preferred
stock dividend requirements (including interest on deposits) for the three
months ended March 31, 1998 and 1997 and for the five years ended December 31,
1997 were as follows:
Three Months Ended
March 31, Years Ended December 31,
------------------------ -------------------------------------------------------------
(Dollars in millions)
1998 1997 1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ---------- --------- ---------
Net income $ 238 $ 207 $ 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 153 139 589 483 529 422 262
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Pretax earnings $ 391 $ 346 $ 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 $ 10 $ 10 $ 39 $ 40 $ 38 $ 35 $ 36
Interest on borrowed funds 272 255 1,050 873 1,079 1,038 384
Interest on deposits 462 400 1,685 1,680 1,791 1,301 1,177
---------- ---------- ---------- ---------- ---------- --------- ---------
Total fixed charges 744 665 2,774 2,593 2,908 2,374 1,597
Preferred stock dividend
requirements 7 16 53 65 68 67 61
---------- ---------- ---------- ---------- ---------- --------- ---------
Total combined fixed charges
and preferred stock dividend
requirements $ 751 $ 681 $ 2,827 $ 2,658 $ 2,976 $ 2,441 $ 1,658
========== ========== ========== ========== ========== ========= =========
Earnings (for ratio calculation)
(Pretax earnings
plus total fixed charges) $ 1,135 $ 1,011 $ 4,242 $ 3,726 $ 4,115 $ 3,345 $ 2,202
========== ========== ========== ========== ========== ========= =========
Ratio of earnings to combined
fixed charges and preferred
stock dividend requirements 1.51 1.48 1.50 1.40 1.38 1.37 1.33
========== ========== ========== ========== ========== ========= =========
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 (including 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.