EX-12.2 7 ex12_2.htm EXHIBIT 12.2 ex12_2.htm
Exhibit 12.2

CAPITAL ONE FINANCIAL CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS

   
Year Ended December 31,
  
(Dollars in millions)
  
2010
    
2009(1)
    
2008
    
2007
    
2006
  
Ratio (including interest expense on deposits):
                              
Earnings:
                              
Income from continuing operations before income taxes
   $ 4,330     $ 1,336     $ 582     $ 3,870     $ 3,672  
Fixed charges
     2,904       2,975       3,985       4,583       3,087  
Equity in undistributed (income) loss of unconsolidated subsidiaries
     49       60       55       43       15  
Earnings available for fixed charges, as adjusted
   $ 7,283     $ 4,371     $ 4,622     $ 8,496     $ 6,774  
Fixed charges:
                                        
Interest expense on deposits and debt
   $ 2,896     $ 2,967     $ 3,963     $ 4,548     $ 3,073  
Interest factor in rent expense
     8       8       22       35       14  
Total fixed charges
     2,904       2,975       3,985       4,583       3,087  
Preferred stock dividends, pre-tax
     —       188       16       —       —  
Total fixed charges and preferred stock dividends
   $ 2,904     $ 3,163     $ 4,001     $ 4,583     $ 3,087  
Ratio of earnings to fixed charges, including interest on deposits, and preferred stock dividends
     2.51       1.38       1.16       1.85       2.19  
Ratio (excluding interest expense on deposits):
                                        
Earnings:
                                        
Income from continuing operations before income taxes
   $ 4,330     $ 1,336     $ 582     $ 3,870     $ 3,672  
Fixed charges
     1,439       882       1,473       1,677       1,272  
Equity in undistributed (income) loss of unconsolidated subsidiaries
     49       60       55       43       15  
Earnings available for fixed charges, as adjusted
   $ 5,818     $ 2,278     $ 2,110     $ 5,590     $ 4,959  
Fixed charges:
                                        
Interest expense on debt(2)
   $ 1,431     $ 874     $ 1,451     $ 1,642     $ 1,258  
Interest factor in rent expense
     8       8       22       35       14  
Total fixed charges
     1,439       882       1,473       1,677       1,272  
Preferred stock dividends, pre-tax
     —       188       16       —       —  
Total fixed charges and preferred stock dividends
   $ 1,439     $ 1,070     $ 1,489     $ 1,677     $ 1,272  
Ratio of earnings to fixed charges, excluding interest on deposits, and preferred stock dividends
     4.04       2.13       1.42       3.33       3.90  
_____________
(1)
On February 27, 2009, we acquired Chevy Chase Bank, FSB.  The transaction was accounted for as a purchase, and the related results of operations are included in our consolidated results from the date of the transaction.
(2)
Represents total interest expense reported in our consolidated statements of income, excluding interest on deposits of $1.5  billion, $2.1 billion, $2.5 billion, $2.9 billion and $1.8 billion in 2010, 2009, 2008, 2007 and 2006, respectively.