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 nine months ended September 30, 1994 and 1993 and for the
five years ended December 31, 1993 were as follows:
Nine Months Years
Ended Ended
September 30 December 31
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(Dollars in thousands)
1994 1993 1993 1992 1991 1990 1989
--------- --------- --------- --------- --------- --------- ---------
Net income (loss) $ 314,609 $ 196,514 $ 299,026 $ 278,881 $ (113,155) $ (468,248) $ 138,114
Extraordinary items, net of
tax 6,535 (72,968) (7,758) (43,649)
Cumulative effect of changes
in accounting principles,
net of tax (24,203) (24,203)
Income tax expense (benefit) 255,113 135,461 214,683 152,781 (57,990) 2,579 84,951
--------- --------- --------- --------- --------- --------- ---------
Pretax earnings (loss) $ 576,257 $ 307,772 $ 489,506 $ 358,694 $ (178,903) $ (509,318) $ 223,065
========= ========= ========= ========= ========= ========= =========
Fixed charges:
Portion of rental
expense(net of sublease
rental income) which
approximates theinterest
factor 20,068 20,338 27,063 28,159 30,370 38,747 35,482
Interest on borrowed funds 692,591 255,092 377,874 344,908 361,510 592,028 1,081,007
Interest on deposits 815,592 766,132 1,015,956 1,406,742 1,808,436 2,420,296 2,243,854
--------- --------- --------- --------- --------- --------- ---------
Total fixed charges 1,528,251 1,041,562 1,420,893 1,779,809 2,200,316 3,051,071 3,360,343
--------- --------- --------- --------- --------- --------- ---------
Earnings (for ratio
calculation) $ 2,104,508 $ 1,349,334 $ 1,910,399 $ 2,138,503 $ 2,021,413 $ 2,541,753 $ 3,583,408
========= ========= ========= ========= ========= ========= =========
Total fixed charges $ 1,528,251 $ 1,041,562 $ 1,420,893 $ 1,779,809 $ 2,200,316 $ 3,051,071 $ 3,360,343
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to fixed
charges 1.38 1.30 1.34 1.20 .92 .83 1.07
========= ========= ========= ========= ========= ========= =========
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. Ratios for the periods
presented reflect the reclassification, where appropriate, of Brazilian
translation gains and losses more fully discussed in Note 11 to the Financial
Statements.