EXHIBIT 12(B)
BANK OF BOSTON CORPORATION
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, 1995 and 1994 and for the
five years ended December 31, 1994 were as follows:
NINE MONTHS
ENDED
SEPTEMBER 30, YEARS ENDED DECEMBER 31,
------------- -------------------------------------
1995 1994 1994 1993 1992 1991 1990
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(DOLLARS IN MILLIONS)
Net income (loss)........ $ 399 $ 315 $ 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)............... 335 254 349 215 153 (58) 3
------ ------ ------ ------ ------ ------ ------
Pretax earnings (loss).. $ 734 $ 576 $ 791 $ 490 $ 359 $ (179) $ (509)
------ ------ ------ ------ ------ ------ ------
Fixed charges:
Portion of rental
expense (net of
sublease rental income)
which approximates the
interest factor........ 21 20 27 27 28 30 39
Interest on borrowed
funds................... 772 693 998 378 345 362 592
Interest on deposits..... 1,179 815 1,148 1,016 1,407 1,808 2,420
------ ------ ------ ------ ------ ------ ------
Total fixed charges..... 1,972 1,528 2,173 1,421 1,780 2,200 3,051
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Earnings (for ratio
calculation)............ $2,706 $2,104 $2,964 $1,911 $2,139 $2,021 $2,542
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Total fixed charges...... $1,972 $1,528 $2,173 $1,421 $1,780 $2,200 $3,051
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Ratio of earnings to
fixed charges........... 1.37 1.38 1.36 1.34 1.20 .92 .83
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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 one-to-one
basis are $179 million and $509 million, respectively.