<PAGE> 1
BLOCK FINANCIAL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(AMOUNTS IN THOUSANDS)
EXHIBIT 12(a)
<TABLE>
<CAPTION>
Nine months ended
January 31, 2000 1999 1998 1997 1996 1995
---------------- ---------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Pretax income from continuing operations(a) $ 51,626 $ 65,642 $28,401 $ 7,571 $ 7,626 $(5,715)
================ ========== ========= ========= ========= ==========
FIXED CHARGES:
Interest expense 88,026 72,034 38,738 364 - -
Interest Portion of net rent expense(b) 2,254 1,884 806 135 61 49
---------------- ---------- --------- --------- --------- ----------
Total fixed charges 90,280 73,918 39,544 499 61 49
---------------- ---------- --------- --------- --------- ----------
Earnings before income taxes and fixed charges $ 141,906 $ 139,560 $67,945 $ 8,070 $ 7,687 $(5,666)
================ ========== ========= ========= ========= ==========
Ratio of earnings to fixed charges(d) 1.6 1.9 1.7 16.2 126.0 (c)
================ ========== ========= ========= ========= ==========
</TABLE>
(a) Pretax income from continuing operations is shown with the Credit Card
Segment as Discontinued Operations for all years presented.
(b) One-third of net rent expense is the portion deemed representative of the
interest factor.
(c) Earnings were insufficient to cover fixed charges for the year ended April
30, 1995 by $5,715.
(d) The decrease in the ratio of earnings to fixed charges in 1998 is primarily
attributable to the acquisition of Option One Mortgage Corporation on June
17, 1997. Without the interest expense incurred on the long-term debt issued
to acquire Option One and the interest expense on mortgage loan borrowings
the ratio of earnings to fixed charges would have been 7.7.
