BANK OF BOSTON CORPORATION EXHIBIT 12(d)
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 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 the
interest 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
Preferred stock dividend
requirements 50,415 45,269 61,377 33,186 13,255 13,748 22,568
--------- --------- --------- --------- --------- --------- ---------
Total combined fixed
charges and preferred
stock dividend requirements $ 1,578,666 $ 1,086,831 $ 1,482,270 $ 1,812,995 $ 2,213,571 $ 3,064,819 $ 3,382,911
========= ========= ========= ========= ========= ========= =========
Earnings (for ratio
calculation)
(Pretax earnings (loss)
plus total fixed charges) $ 2,104,508 $ 1,349,334 $ 1,910,399 $ 2,138,503 $ 2,021,413 $ 2,541,753 $ 3,583,408
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to combined
fixed charges and preferred
stock dividend requirements 1.33 1.24 1.29 1.18 .91 .83 1.06
========= ========= ========= ========= ========= ========= =========
For purposes of computing the consolidated ratio of earnings to combined fixed
charges and preferred stock dividend requirements "earnings" represent income
(loss) before extraordinary items and cumulative 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. No tax adjustments were
made in loss years. 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.