EX-12.1 4 d386814dex121.htm EX-12.1 EX-12.1

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,
2012		      June 30,
2011		      2011      2010      2009 (1)     2008 (1)     2007 (1)  

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

    $ 42,780       $ 236,735       $ 239,148       $ 242,942       ($ 579,694 )    ($ 232,959 )    $ 266,909   

Fixed charges :

                   

Interest expense and capitalized

      201,151         274,459         505,523         653,603         754,506        994,919        1,246,577   

Estimated interest component of net rental payments

      6,324         10,090         13,470         26,688         28,866        34,975        31,296   

Total fixed charges including interest on deposits

      207,475         284,549         518,993         680,291         783,372        1,029,894        1,277,873   

Less: Interest on deposits

      100,193         147,551         269,487         350,881         501,262        700,122        765,794   

Total fixed charges excluding interest on deposits

      107,282         136,998         249,506         329,410         282,110        329,772        512,079   

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

    $ 250,255       $ 521,284       $ 758,141       $ 923,233       $ 203,678      $ 796,935      $ 1,544,782   

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

    $ 150,062       $ 373,733       $ 488,654       $ 572,352       ($ 297,584 )    $ 96,813      $ 778,988   

Ratio of earnings to fixed charges

                   

Including Interest on Deposits

      1.2         1.8         1.5         1.4         (A )      (A )      1.2   

Excluding Interest on Deposits

      1.4         2.7         2.0         1.7         (A )      (A )      1.5   

Ratio of earnings to fixed charges & Preferred Stock Dividends

                   

Including Interest on Deposits

      1.2         1.8         1.4         1.4         (A )      (A )      1.2   

Excluding Interest on Deposits

      1.4         2.7         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 resulted in the discontinuance of the Corporation’s PFH operations and PFH’s results were 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 were 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.