EX-12.1 2 d339943dex121.htm EX-12.1 EX-12.1

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,                                
    2012     2011     2011     2010     2009 (1)     2008 (1)     2007 (1)  

Income (loss) from continuing operations before income taxes and cumulative effect of accounting changes

   $ 62,611      $ 150,532      $ 239,148      $ 242,942      ($ 579,694 )    ($ 232,959 )    $ 266,909   

Fixed charges :

              

Interest expense and capitalized

     102,269        142,095        505,523        653,603        754,506        994,919        1,246,577   

Estimated interest component of net rental payments

     3,110        4,871        13,470        26,688        28,866        34,975        31,296   

Total fixed charges including interest on deposits

     105,379        146,966        518,993        680,291        783,372        1,029,894        1,277,873   

Less: Interest on deposits

     51,679        76,879        269,487        350,881        501,262        700,122        765,794   

Total fixed charges excluding interest on deposits

     53,700        70,087        249,506        329,410        282,110        329,772        512,079   

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

   $ 167,990      $ 297,498      $ 758,141      $ 923,233      $ 203,678      $ 796,935      $ 1,544,782   

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

   $ 116,311      $ 220,619      $ 488,654      $ 572,352      ($ 297,584 )    $ 96,813      $ 778,988   

Ratio of earnings to fixed charges

              

Including Interest on Deposits

     1.6        2.0        1.5        1.4        (A )      (A )      1.2   

Excluding Interest on Deposits

     2.2        3.1        2.0        1.7        (A )      (A )      1.5   

Ratio of earnings to fixed charges & Preferred Stock Dividends

              

Including Interest on Deposits

     1.6        2.0        1.4        1.4        (A )      (A )      1.2   

Excluding Interest on Deposits

     2.1        3.1        1.9        1.7        (A )      (A )      1.5   

 

(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 and 2009, 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 and $625 million to achieve ratios of 1:1 in 2008 and 2009, respectively.