EX-12.1 2 g26898exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
POPULAR, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
                                                         
    Quarter Ended             Year Ended December 31,  
    March 31,     March 31,                                
    2011     2010 (1)     2010     2009 (1)     2008 (1)     2007 (1)     2006 (1)  
Income (loss) from continuing operations before income taxes and cumulative effect of accounting changes
   $ 150,532       ($102,226 )   $ 242,942       ($579,694 )     ($232,959 )   $ 266,909     $ 551,893  
 
                                                        
Fixed charges :
                                                        
 
                                                        
Interest expense and capitalized
     142,095       158,495       653,603       754,506       994,919       1,246,577       1,200,508  
Estimated interest component of net rental payments
     4,871       6,898       26,688       28,866       34,975       31,296       25,670  
 
                                                        
Total fixed charges including interest on deposits
     146,966       165,393       680,291       783,372       1,029,894       1,277,873       1,226,178  
 
                                                        
Less: Interest on deposits
     76,879       92,974       350,881       501,262       700,122       765,794       580,094  
 
                                                        
Total fixed charges excluding interest on deposits
     70,087       72,419       329,410       282,110       329,772       512,079       646,084  
 
                                                        
Income before income taxes and fixed charges(including interest on deposits)
   $ 297,498     $ 63,167     $ 923,233     $ 203,678     $ 796,935     $ 1,544,782     $ 1,778,071  
 
                                                        
Income (loss) before income taxes and fixed charges(excluding interest on deposits)
   $ 220,619       ($29,807 )   $ 572,352       ($297,584 )   $ 96,813     $ 778,988     $ 1,197,977  
 
                                                        
Ratio of earnings to fixed charges
                                                        
 
                                                        
Including Interest on Deposits
     2.0       (A )     1.4       (A )     (A )     1.2       1.5  
 
                                                        
Excluding Interest on Deposits
     3.1       (A )     1.7       (A )     (A )     1.5       1.9  
 
                                                        
Ratio of earnings to fixed charges & Preferred Stock Dividends
                                                        
 
                                                        
Including Interest on Deposits
     2.0       (A )     1.4       (A )     (A )     1.2       1.4  
 
                                                        
Excluding Interest on Deposits
     3.1       (A )     1.7       (A )     (A )     1.5       1.8  
 
(1)   On November 3, 2008, the Corporation sold residual interests and servicing related assets of Popular Financial Holding (“PFH”) and Popular, FS to Goldman Sachs Mortgage Company, Goldman, Sachs & Co. and Litton Loan Servicing, LP. In addition, on September 18, 2008, the Corporation announced the consummation of the sale of manufactured housing loans of PFH to 21st Mortgage Corp. and Vanderbilt Mortgage and Finance, Inc. The above transactions and past sales and restructuring plans executed at PFH in the past two years have resulted in the discontinuance of the Corporation’s PFH operations and PFH’s results are reflected as such in the Corporation’s Consolidated Statement of Operations. The computation of earnings to fixed charges and preferred stock dividends excludes discontinued operations. Prior periods have been retrospectively adjusted on a comparable basis.
 
(A)   During 2008, 2009 and the first quarter of 2010, earnings were not sufficient to cover fixed charges or preferred dividends and the ratios were less than 1:1. The Corporation would have had to generate additional earnings of approximately $235 million, $625 million and $103 million to achieve ratios of 1:1 in 2008, 2009 and first quarter of 2010, respectively.