EX-12 3 w34706exv12.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,
    2007   2006
 
Net income
   $ 21,448     $ 21,910  
Income tax expense
     13,828       13,716  
 
Earnings before income taxes
     35,276       35,626  
Fixed charges:
                
Interest on debt, deposits and other borrowings
     20,245       13,666  
Interest on subordinated debt payable to preferred securities trust
     2,317       2,289  
One-third of all rentals
     474       447  
 
Total fixed charges
     23,036       16,402  
 
Earnings before income taxes and fixed charges
   $ 58,312     $ 52,028  
Ratio of earnings to fixed charges(1)
     2.53 x     3.17 x
 
     
(1)   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.