EX-12.2 3 d406131dex122.htm EXHIBIT 12.2 Exhibit 12.2

Exhibit 12.2

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND

PREFERRED STOCK DIVIDENDS

 

    Nine Months
Ended
September 30,
2012(1)		     Year Ended December 31,  

(Dollars in millions)

     2011     2010     2009(2)     2008     2007  

Ratio (including interest expense on deposits):

            

Earnings:

            

Income from continuing operations before income taxes

   $ 3,817      $ 4,587      $ 4,330      $ 1,336      $ 582      $ 3,870   

Fixed charges

     1,789        2,251        2,903        2,975        3,985        4,583   

Equity in undistributed loss of unconsolidated subsidiaries

     95        112        49        60        55        43   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges, as adjusted

   $ 5,701      $ 6,950      $ 7,282      $ 4,371      $ 4,622      $ 8,496   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

            

Interest expense on deposits and debt

   $ 1,788      $ 2,246      $ 2,896      $ 2,967      $ 3,963      $ 4,548   

Interest factor in rent expense

     1        5        7        8        22        35   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

     1,789        2,251        2,903        2,975        3,985        4,583   

Preferred stock dividends(3)

     —        —        —        188        16        —   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges and preferred stock dividends

   $ 1,789      $ 2,251      $ 2,093      $ 3,163      $ 4,001      $ 4,583   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to combined fixed charges and preferred stock dividends

     3.19        3.09        2.51        1.38        1.16        1.85   

Ratio (excluding interest expense on deposits):

            

Earnings:

            

Income from continuing operations before income taxes

   $ 3,817      $ 4,587      $ 4,330      $ 1,336      $ 582      $ 3,870   

Fixed charges

     734        1,064        1,438        882        1,473        1,677   

Equity in undistributed loss of unconsolidated subsidiaries

     95        112        49        60        55        43   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges, as adjusted

   $ 4,646      $ 5,763      $ 5,817      $ 2,278      $ 2,110      $ 5,590   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

            

Interest expense on debt(4)

   $ 733      $ 1,059      $ 1,431      $ 874      $ 1,451      $ 1,642   

Interest factor in rent expense

     1        5        7        8        22        35   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges, excluding interest on deposits

     734        1,064        1,438        882        1,473        1,677   

Preferred stock dividends(3)

     —        —        —        188        16        —   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total combined fixed charges, excluding interest on deposits, and preferred stock dividends

   $ 734      $ 1,064      $ 1,438      $ 1,070      $ 1,489      $ 1,677   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to combined fixed charges, excluding interest on deposits, and preferred stock dividends

     6.33        5.42        4.05        2.13        1.42        3.33   

 

(1) 

Results include the impact of the February 17, 2012 ING Direct and the May 1, 2012 HSBC U.S. card acquisitions.

(2) 

Results subsequent to February 27, 2009 include the impact of the Chevy Chase Bank, fsb acquisition.

(3)

Preferred stock dividend requirements represent pre-tax earnings required to cover any senior preferred stock and preferred stock dividend requirements, computed using our effective tax rate whenever there is an income tax provision, for the relevant periods.

(4) 

Represents total interest expense reported in our consolidated statements of income, excluding interest on deposits of $1.1 billion for the nine months ended September 30, 2012, and $1.2 billion, $1.5 billion, $2.1 billion, $2.5 billion and $2.9 billion for 2011, 2010, 2009, 2008, and 2007, respectively.