EX-12 2 w38094exv12.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  
($ in thousands)   June 30,     June 30,  
    2007     2006     2007     2006  
 
Income from continuing operations
   $ 22,712     $ 23,040     $ 44,160     $ 44,950  
Income tax expense
     13,933       14,423       27,761       28,139  
 
Earnings before income taxes
     36,645       37,463       71,921       73,089  
Fixed charges:
                                
Interest on debt, deposits and other borrowings
     21,316       15,189       41,561       28,855  
Interest on subordinated debt payable to preferred securities trust
     2,317       2,290       4,634       4,579  
One-third of all rentals
     457       457       931       904  
 
Total fixed charges
     24,090       17,936       47,126       34,338  
 
Earnings before income taxes and fixed charges
   $ 60,735     $ 55,399     $ 119,047     $ 107,427  
Ratio of earnings to fixed charges (1)
     2.52 x      3.09 x      2.53 x      3.13 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. Fixed charges do not include interest expense related to unrecognized tax benefits, which we classify as income tax expense.