<PAGE>
AMERICAN BUSINESS FINANCIAL SERVICES, INC. AND SUBSIDIARIES
EXHIBIT 12 - COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(Dollar amounts in thousands)
The following table sets forth the ratio of earnings to fixed charges
of the Company for the nine months ended March 31, 2000 and March 31, 1999 and
the five fiscal years ended June 30, 1999 computed by dividing net fixed charges
(interest expense on all debt plus the interest element of operating leases)
into earnings (income before income taxes and fixed charges).
<TABLE>
<CAPTION>
Nine Months Ended
March 31, For Fiscal Years Ended
-------------------- ------------------------------------------------------------
2000 1999 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Earnings.......................... $ 11,463 $ 10,427 $ 14,088 $ 11,455 $ 5,940 $ 2,319 $ 581
Income tax expense.................... 7,642 5,704 7,763 6,435 3,062 802 313
Interest charges...................... 26,175 15,674 22,427 13,190 5,175 2,668 1,213
Amortization of debt issuance costs... 1,111 831 1,012 1,171 535 505 436
Interest portion of rental expense.... 231 123 232 136 40 32 16
-------- -------- -------- -------- -------- ------- -------
Earnings available to cover fixed
Charges............................. $ 46,622 $ 32,759 $ 45,522 $ 32,387 $ 14,752 $ 6,326 $ 2,559
======== ======== ======== ======== ======== ======== ========
Fixed charges.........................
Interest charges.................. 26,175 15,674 22,427 13,190 5,175 2,668 1,213
Amortization of debt issuance
costs........................... 1,111 831 1,012 1,171 535 505 436
Interest portion of rental expense. 231 123 232 136 40 32 16
-------- -------- -------- -------- -------- ------- -------
Total fixed charges............. $ 27,517 $ 16,628 $ 23,671 $ 14,497 $ 5,750 $ 3,205 $ 1,665
======== ======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charge..... 1.69 1.97 1.92 2.23 2.56 1.97 1.54
======== ======== ======== ======== ======== ======== ========
</TABLE>
