EXHIBIT 12(A)
BANK OF BOSTON CORPORATION
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(EXCLUDING INTEREST ON DEPOSITS)
The Corporation's ratios of earnings to fixed charges (excluding interest on
deposits) for the six months ended June 30, 1995 and 1994 and for the five
years ended December 31, 1994 were as follows:
SIX MONTHS ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
----------------- --------------------------------
1995 1994 1994 1993 1992 1991 1990
-------- -------- ------ ---- ----- ----- -----
(DOLLARS IN MILLIONS)
Net income (loss).......... $ 259 $ 191 $ 435 $299 $ 279 $(113) $(468)
Extraordinary items, net of
tax....................... 7 7 (73) (8) (44)
Cumulative effect of
changes in accounting
principles, net of tax.... (24)
Income tax expense
(benefit)................. 225 156 349 215 153 (58) 3
-------- -------- ------ ---- ----- ----- -----
Pretax earnings (loss)... $ 484 $ 354 $ 791 $490 $ 359 $(179) $(509)
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Fixed charges:
Portion of rental expense
(net of sublease rental
income) which
approximates the
interest factor......... 14 14 27 27 28 30 39
Interest on borrowed funds. 500 367 998 378 345 362 592
-------- -------- ------ ---- ----- ----- -----
Total fixed charges.... 514 381 1,025 405 373 392 631
-------- -------- ------ ---- ----- ----- -----
Earnings (for ratio
calculation).............. $ 998 $ 735 $1,816 $895 $ 732 $ 213 $ 122
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Total fixed charges........ $ 514 $ 381 $1,025 $405 $ 373 $ 392 $ 631
======== ======== ====== ==== ===== ===== =====
Ratio of earnings to fixed
charges................... 1.94 1.93 1.77 2.21 1.96 .54 .19
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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
(excluding interest on deposits) and the proportion deemed representative of
the interest factor of rent expense, net of income from subleases. For the
years ended December 31, 1991 and 1990, earnings were insufficient to cover
fixed charges. Additional earnings necessary for the years ended December 31,
1991 and 1990 to bring the ratios of earnings to fixed charges to a one-to-one
basis are $179 million and $509 million, respectively.