EX-12 2 w08667exv12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES . . . EXHIBIT 12 ADVANTA CORP. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
THREE MONTHS ENDED MARCH 31, -------------------- ($ IN THOUSANDS) 2005 2004 ---------------- ---------- -------- Net income $72,670 $ 9,439 Income tax expense 12,347 6,163 ------- ------- Earnings before income taxes 85,017(1) 15,602 Fixed charges: Interest on debt and deposits 10,296 9,242 Interest on subordinated debt payable to preferred securities trust 2,289 2,289 One-third of all rentals 386 634 ------- ------- Total fixed charges 12,971 12,165 ------- ------- Earnings before income taxes and fixed charges $97,988 $27,767 Ratio of earnings to fixed charges(2) 7.55x 2.28x
(1) Earnings before income taxes in the three months ended March 31, 2005 includes a $67.7 million gain on transfer of consumer credit card business relating to our May 28, 2004 agreement with Bank of America. (2) For purposes of computing these ratios, "earnings" represent income before income taxes plus fixed charges. "Fixed charges" consist of interest expense and one-third (the portion deemed representative of the interest factor) of rental expense on operating leases.