EX-12.1 3 g13124exv12w1.htm EX-12.1 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX-12.1 COMP OF RATIO OF EARNINGS TO FIXED CHARGES
Exhibit 12.1
POPULAR, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
                                                         
    Quarter Ended    
    March 31   March 31   Year Ended December 31,
    2008   2007   2007   2006   2005   2004   2003
 
                                                        
Income (loss) before income taxes
   $ 120,232     $ 121,255       ($149,238 )   $ 455,716     $ 680,942     $ 628,067     $ 597,410  
 
                                                        
Fixed charges :
                                                        
Interest expense
     323,753       418,613       1,678,781       1,636,531       1,241,652       840,754       749,550  
Estimated interest component of net rental payments
     10,581       9,905       37,187       31,047       27,454       25,068       22,940  
Total fixed charges including interest on deposits
     334,334       428,518       1,715,968       1,667,578       1,269,106       865,822       772,490  
Less: Interest on deposits
     194,940       173,102       765,793       580,094       430,813       330,351       342,891  
Total fixed charges excluding interest on deposits
     139,394       255,416       950,175       1,087,484       838,293       535,471       429,599  
 
                                                        
Income before income taxes and fixed charges(including interest on deposits)
   $ 454,566     $ 549,773     $ 1,566,730     $ 2,123,294     $ 1,950,048     $ 1,493,889     $ 1,369,900  
 
                                                        
Income before income taxes and fixed charges(excluding interest on deposits)
   $ 259,626     $ 376,671     $ 800,937     $ 1,543,200     $ 1,519,235     $ 1,163,538     $ 1,027,009  
 
                                                        
Preferred stock dividends
     2,978       2,978       11,913       11,913       11,913       11,913       9,919  
 
                                                        
Ratio of earnings to fixed charges
                                                        
 
                                                        
Including Interest on Deposits
     1.4x       1.3x       (A )     1.3x       1.5x       1.7x       1.8x  
 
                                                        
Excluding Interest on Deposits
     1.9x       1.5x       (A )     1.4x       1.8x       2.2x       2.4x  
 
                                                        
Ratio of earnings to fixed charges & Preferred Stock Dividends
                                                        
 
                                                        
Including Interest on Deposits
     1.3x       1.3x       (A )     1.3x       1.5x       1.7x       1.7x  
 
                                                        
Excluding Interest on Deposits
     1.8x       1.5x       (A )     1.4x       1.8x       2.1x       2.3x  
 
                                                        
 
(A)   During 2007, earnings were not sufficient to cover fixed charges or preferred dividends and the ratios were less than 1:1. The Corporation would have had to generate additional earnings of $125 million to achieve ratios of 1:1 in 2007.