EX-12 3 w21014exv12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
 

Exhibit 12
ADVANTA CORP. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                 
    Three Months Ended
($ in thousands)   March 31
    2006   2005
 
Net income
   $ 21,910     $ 72,670  
Income tax expense
     13,716       12,347  
 
Earnings before income taxes(1)
     35,626       85,017  
Fixed charges:
                
Interest on debt, deposits and other borrowings
     13,666       10,296  
Interest on subordinated debt payable to preferred securities trust
     2,289       2,289  
One-third of all rentals
     447       386  
 
Total fixed charges
     16,402       12,971  
 
Earnings before income taxes and fixed charges
   $ 52,028     $ 97,988  
Ratio of earnings to fixed charges(2)
     3.17 x     7.55 x
 
     
(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 Corp.
 
(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.