EX-12 4 w86454exv12.txt RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 ADVANTA CORP. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES THREE MONTHS ENDED ($ IN THOUSANDS) MARCH 31, ---------------- --------- 2003 2002 ------- ------- Net income $ 5,905 $ 4,234 Income tax expense 3,696 2,651 ------ ------ Earnings before income taxes 9,601 6,885 Fixed charges: Interest 11,271 13,110 One-third of all rentals 640 486 Preferred stock dividend of subsidiary trust 2,248 2,248 ------ ------ Total fixed charges 14,159 15,844 ------ ------ Earnings before income taxes and fixed charges $23,760 $22,729 Ratio of earnings to fixed charges (1) 1.68x 1.43x (1) For purposes of computing these ratios, "earnings" represent income before income taxes plus fixed charges. "Fixed charges" consist of interest expense, one-third (the portion deemed representative of the interest factor) of rental expense on operating leases, and preferred stock dividends of subsidiary trust.