EX-12 4 w23973exv12.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     Six Months Ended  
    June 30,     June 30,  
($ in thousands)   2006     2005     2006     2005  
Income from continuing operations
   $ 23,040     $ 14,382     $ 44,950     $ 87,052  
Income tax expense
     14,423       9,195       28,139       21,542  
 
                        
Earnings before income taxes(1)
     37,463       23,577       73,089       108,594  
Fixed charges:
                                
Interest on debt, deposits and other borrowings
     15,189       11,428       28,855       21,724  
Interest on subordinated debt payable to preferred securities trust
     2,290       2,290       4,579       4,579  
One-third of all rentals
     457       415       904       801  
 
                        
Total fixed charges
     17,936       14,133       34,338       27,104  
 
                        
Earnings before income taxes and fixed charges
   $ 55,399     $ 37,710     $ 107,427     $ 135,698  
Ratio of earnings to fixed charges(2)
     3.09x       2.67x       3.13x       5.01x  
 
                        
 
(1)   Earnings before income taxes in the six months ended June 30, 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.