EX-12 4 w75367exv12.htm EX-12 exv12
Exhibit 12
ADVANTA CORP. AND SUBSIDIARIES
Statement setting forth details of computation of ratio
of earnings to fixed charges
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                 
    Six Months Ended     For the years ended December 31,  
($ in thousands)   June 30, 2009     2008     2007     2006     2005     2004  
Income (loss) from continuing operations
   $ (405,974 )   $ (43,823 )   $ 71,028     $ 84,248     $ 116,689     $ 44,273  
Income tax expense (benefit)
     37,688       (22,308 )     44,652       52,740       40,490       28,034  
 
                                    
Earnings (loss) before income tax expense (benefit)
     (368,286 )     (66,131 )     115,680       136,988       157,179 (2)     72,307  
 
                                    
 
                                        
Fixed charges:
                                                
Interest on debt, deposits and other borrowings
     54,529       110,205       90,063       66,143       48,428       36,419  
Interest on subordinated debt payable to preferred securities trust
    4,599       9,268       9,268       9,167       9,158       9,158  
One-third of all rentals
     918       1,841       1,885       1,809       1,712       1,827  
 
                                    
Total fixed charges
     60,046       121,314       101,216       77,119       59,298       47,404  
 
                                    
 
                                        
Earnings (loss) before income tax expense (benefit) and fixed charges
   $ (308,240 )   $ 55,183     $ 216,896     $ 214,107     $ 216,477     $ 119,711  
 
                                    
 
                                        
Ratio of earnings to fixed charges (1)
     (5.13 )x(3)     0.45 x(4)     2.14 x     2.78 x     3.65 x     2.53 x
 
(1)   For purposes of computing these ratios, “earnings” represent income from continuing operations 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.
 
(2)   Earnings before income taxes in 2005 included a $67.7 million gain on the transfer of consumer credit card business related to our May 28, 2004 agreement with Bank of America.
 
(3)   In order to achieve a ratio of 1.00, earnings before income taxes and fixed charges would need to increase by $368.3 million for the six months ended June 30, 2009.
 
(4)   In order to achieve a ratio of 1.00, earnings before income taxes and fixed charges would need to increase by $66.1 million for the year ended December 31, 2008.