EX-12.1 2 a3q1810qex121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
 
 
 
Year Ended December 31,
(Dollars in millions)
 
YTD 2018
YTD 2017
 
2017
2016
2015
2014
2013
Net income before income tax (expense) benefit and cumulative effect of changes in accounting principles
 
$
10,081

$
13,012

 
$
16,834

$
11,639

$
9,274

$
11,002

$
25,363

Add:
 
 
 
 
 
 
 
 
 
Total interest expense(1)
 
42,802

40,090

 
53,643

50,786

52,144

55,217

56,234

Interest factor in rental expenses
 
2

2

 
3

3

2

5

4

Earnings, as adjusted
 
$
52,885

$
53,104


$
70,480

$
62,428

$
61,420

$
66,224

$
81,601

Fixed charges:
 
 
 
 
 
 
 
 
 
Total interest expense(1)
 
$
42,802

40,090

 
$
53,643

50,786

52,144

55,217

56,234

Interest factor in rental expenses
 
2

2

 
3

3

2

5

4

Total fixed charges
 
$
42,804

$
40,092


$
53,646

$
50,789

$
52,146

$
55,222

$
56,238

Senior preferred stock and preferred stock dividends(2)
 
1,964

13,174

 
33,167

7,437

5,510

19,610

47,591

Total fixed charges including preferred stock dividends
 
$
44,768

$
53,266


$
86,813

$
58,226

$
57,656

$
74,832

$
103,829

Ratio of earnings to fixed charges(3)
 
1.24

1.32


1.31

1.23

1.18

1.20

1.45

Ratio of earnings to combined fixed charges and preferred stock dividends(4)
 
1.18

—


—

1.07

1.07

—

—

 
(1)
YTD 2017 data has been revised to conform to the current presentation.
(2)
Senior preferred stock and preferred stock dividends represent pre-tax earnings required to cover any senior preferred stock and preferred stock dividend requirements computed using our effective tax rate.
(3)
Ratio of earnings to fixed charges is computed by dividing earnings, as adjusted by total fixed charges.
(4)
Ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing earnings, as adjusted by total fixed charges including preferred stock dividends. For the ratio to equal 1.00, earnings, as adjusted must increase by $0.2 billion, $16.3 billion, $8.6 billion and $22.2 billion for YTD 2017 and for the years ended December 31, 2017, 2014, and 2013, respectively.