EX-12.2 3 d226389dex122.htm COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREF STOCK DIV Computation of Ratio of Earnings to Combined Fixed Charges and Pref Stock Div

Exhibit 12.2

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND

PREFERRED STOCK DIVIDENDS

 

    Nine Months
Ended
September 30, 2011		     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

   $ 4,016      $ 4,330      $ 1,336      $ 582      $ 3,870      $ 3,672   

Fixed charges

     1,731        2,903        2,975        3,985        4,583        3,087   

Equity in undistributed loss of unconsolidated subsidiaries

     49        49        60        55        43        15   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges, as adjusted

   $ 5,796      $ 7,282      $ 4,371      $ 4,622      $ 8,496      $ 6,774   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

            

Interest expense on deposits and debt

   $ 1,727      $ 2,896      $ 2,967      $ 3,963      $ 4,548      $ 3,073   

Interest factor in rent expense

     4        7        8        22        35        14   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

     1,731        2,903        2,975        3,985        4,583        3,087   

Preferred stock dividends, pre-tax

     —          —          188        16        —          —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges and preferred stock dividends

   $ 1,731      $ 2,903      $ 3,163      $ 4,001      $ 4,583      $ 3,087   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges, including interest on deposits

     3.35        2.51        1.38        1.16        1.85        2.19   

Ratio (excluding interest expense on deposits):

            

Earnings:

            

Income from continuing operations before income taxes

   $ 4,016      $ 4,330      $ 1,336      $ 582      $ 3,870      $ 3,672   

Fixed charges

     808        1,438        882        1,473        1,677        1,272   

Equity in undistributed loss of unconsolidated subsidiaries

     49        49        60        55        43        15   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges, as adjusted

   $ 4,873      $ 5,817      $ 2,278      $ 2,110      $ 5,590      $ 4,959   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

            

Interest expense on debt(2)

   $ 804      $ 1,431      $ 874      $ 1,451      $ 1,642      $ 1,258   

Interest factor in rent expense

     4        7        8        22        35        14   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

   $ 808      $ 1,438      $ 882      $ 1,473      $ 1,677      $ 1,272   

Preferred stock dividends, pre-tax

     —          —          188        16        —          —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges and preferred stock dividends

   $ 808      $ 1,438      $ 1,070      $ 1,489      $ 1,677      $ 1,272   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges, excluding interest on deposits

     6.03        4.05        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 $923 million for the nine months ended September 30, 2011, and $1.5 billion, $2.1 billion, $2.5 billion, $2.9 billion and $1.8 billion for the years ended December 31, 2010, 2009, 2008, 2007 and 2006, respectively.