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EXHIBIT 12.2
PAINE WEBBER GROUP INC.
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
(In thousands of dollars)
<TABLE>
<CAPTION>
Nine Months Years Ended December 31,
Ended September 30, -----------------------------------------------------------------------
2000 (1) 1999 (1) 1998 (1) 1997 (1) 1996 (1) 1995
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<S> <C> <C> <C> <C> <C> <C>
Income before taxes $ 698,306 $ 1,002,558 $ 682,763 $ 644,075 $ 558,999 $ 102,677
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Preferred stock dividends - 129,689 (2) 35,433 44,186 43,712 36,260
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Fixed charges:
Interest 2,740,020 2,564,822 2,876,712 2,573,582 1,971,788 1,969,811
Interest factor in rents 51,784 61,322 56,139 53,665 54,537 59,491
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Total fixed charges 2,791,804 2,626,144 2,932,851 2,627,247 2,026,325 2,029,302
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Total fixed charges and preferred
stock dividends 2,791,804 2,755,833 2,968,284 2,671,433 2,070,037 2,065,562
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Income before taxes and fixed charges $ 3,490,110 $ 3,628,702 $ 3,615,614 $3,271,322 $2,585,324 $2,131,979
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Ratio of earnings to fixed charges
and preferred stock dividends 1.3 1.3 1.2 1.2 1.2 1.0
=========== ============ =========== ========== ========== ==========
</TABLE>
For purposes of computing the ratio of earnings to combined fixed charges and
preferred stock dividends (tax effected), "earnings" consist of income before
taxes and fixed charges. "Fixed charges" consist principally of interest expense
incurred on securities sold under agreements to repurchase, short-term
borrowings, long-term borrowings, preferred trust securities and that portion of
rental expense estimated to be representative of the interest factor.
(1) Income before taxes includes minority interest in wholly owned subsidiary
trusts.
(2) Amount includes a charge to equity of $59,883 resulting from the redemption
of preferred stock on December 16, 1999.
