EX-12.1 3 cof-06302017x10qxex121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
 
Six Months Ended June 30, 2017
 
Year Ended December 31,
(Dollars in millions)
 
 
2016
 
2015
 
2014
 
2013
 
2012
Ratios (including interest expense on deposits):
 
 
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
$
2,599

 
$
5,484

 
$
5,881

 
$
6,569

 
$
6,578

  
$
5,184

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
1,256

 
2,025

 
1,632

 
1,586

 
1,796

  
2,377

Equity in undistributed (gain) loss of unconsolidated subsidiaries
 
(7
)
 
(7
)
 
(19
)
 
(1
)
 
(16
)
  
(22
)
Earnings available for fixed charges, as adjusted
 
$
3,848

 
$
7,502

 
$
7,494

 
$
8,154

 
$
8,358

  
$
7,539

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense on deposits and borrowings
 
$
1,251

 
$
2,018

 
$
1,625

 
$
1,579

 
$
1,792

  
$
2,375

Interest factor in rent expense
 
5

 
7

 
7

 
7

 
4

  
2

Total fixed charges
 
1,256

 
2,025

 
1,632

 
1,586

 
1,796

  
2,377

Preferred stock dividend requirements(1)
 
188

 
311

 
232

 
100

 
77

 
20

Total combined fixed charges and preferred stock dividends
 
$
1,444

 
$
2,336

 
$
1,864

 
$
1,686

 
$
1,873

 
$
2,397

Ratio of earnings to fixed charges
 
3.06

 
3.70

 
4.59

 
5.14

 
4.65

 
3.17

Ratio of earnings to combined fixed charges and preferred stock dividends
 
2.66
 
3.21
 
4.02
 
4.84
 
4.46
  
3.15
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratios (excluding interest expense on deposits):
 
 
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
$
2,599

 
$
5,484

 
$
5,881

 
$
6,569

 
$
6,578

  
$
5,184

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
521

 
812

 
541

 
498

 
555

  
974

Equity in undistributed (gain) loss of unconsolidated subsidiaries
 
(7
)
 
(7
)
 
(19
)
 
(1
)
 
(16
)
  
(22
)
Earnings available for fixed charges, as adjusted
 
$
3,113

 
$
6,289

 
$
6,403

 
$
7,066

 
$
7,117

  
$
6,136

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense on borrowings(2)
 
$
516

 
$
805

 
$
534

 
$
491

 
$
551

  
$
972

Interest factor in rent expense
 
5

 
7

 
7

 
7

 
4

  
2

Total fixed charges
 
521

 
812

 
541

 
498

 
555

  
974

Preferred stock dividend requirements(1)
 
188

 
311

 
232

 
100

 
77

 
20

Total combined fixed charges and preferred stock dividends
 
$
709

 
$
1,123

 
$
773

 
$
598

 
$
632

 
$
994

Ratio of earnings to fixed charges, excluding interest on deposits
 
5.98

 
7.75

 
11.84

 
14.19

 
12.82

 
6.30

Ratio of earnings to combined fixed charges, excluding interest on deposits and preferred stock dividends
 
4.39
 
5.60
 
8.28
 
11.82
 
11.26
  
6.17
__________
(1) 
Preferred stock dividends requirements represent pre-tax earnings that would be required to cover any preferred stock dividends, computed using our effective tax rate, whenever there is an income tax provision, for the relevant periods.
(2) 
Interest expense on borrowings represents total interest expense reported on our consolidated statements of income, excluding interest on deposits of $735 million for the six months ended June 30, 2017, $1.2 billion for the years ended December 31, 2016, $1.1 billion for the years ended December 31, 2015 and 2014, $1.2 billion for the year ended December 31, 2013 and $1.4 billion for the year ended December 31, 2012.