EX-12.1 3 dex121.htm COMPUTATION OF RATION OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATION OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

POPULAR, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

 

     Six Months Ended            Year Ended December 31,  
     June  30,
2011		      June 30,
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

      $236,735         ($120,503 )      $242,942         ($579,694 )      ($232,959 )      $266,909         $551,893   

Fixed charges :

                  

Interest expense and capitalized

      274,459         336,318        653,603         754,506        994,919        1,246,577         1,200,508   

Estimated interest component
of net rental payments

      10,090         14,399        26,688         28,866        34,975        31,296         25,670   

Total fixed charges including
interest on deposits

      284,549         350,717        680,291         783,372        1,029,894        1,277,873         1,226,178   

Less: Interest on deposits

      147,551         183,589        350,881         501,262        700,122        765,794         580,094   

Total fixed charges excluding
interest on deposits

      136,998         167,128        329,410         282,110        329,772        512,079         646,084   

Income before income taxes and
fixed charges (including interest on deposits)

      $521,284         $230,214        $923,233         $203,678        $796,935        $1,544,782         $1,778,071   

Income (loss) before income taxes and
fixed charges (excluding interest on deposits)

      $373,733         $46,625        $572,352         ($297,584 )      $96,813        $778,988         $1,197,977   

Ratio of earnings to fixed charges

                  

Including Interest on Deposits

      1.8         (A )      1.4         (A )      (A )      1.2         1.5   

Excluding Interest on Deposits

      2.7         (A )      1.7         (A )      (A )      1.5         1.9   

Ratio of earnings to fixed charges & Preferred Stock Dividends

                  

Including Interest on Deposits

      1.8         (A )      1.4         (A )      (A )      1.2         1.4   

Excluding Interest on Deposits

      2.7         (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 six months 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 $130 million to achieve ratios of 1:1 in 2008, 2009 and the first six months of 2010, respectively.