EX-12 2 w42931a1exv12.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   Nine Months Ended
($ in thousands)   September 30,   September 30,
    2007   2006   2007   2006
 
Income from continuing operations
   $ 19,482     $ 21,120     $ 63,642     $ 66,070  
Income tax expense
     12,248       13,222       40,009       41,361  
 
Earnings before income taxes
     31,730       34,342       103,651       107,431  
Fixed charges:
                                
Interest on debt, deposits and other borrowings
     23,289       17,360       64,850       46,215  
Interest on subordinated debt payable to preferred securities trust
     2,317       2,289       6,951       6,868  
One-third of all rentals
     477       463       1,408       1,367  
 
Total fixed charges
     26,083       20,112       73,209       54,450  
 
Earnings before income taxes and fixed charges
   $ 57,813     $ 54,454     $ 176,860     $ 161,881  
Ratio of earnings to fixed charges(1)
     2.22 x     2.71 x     2.42 x     2.97 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.