EX-12.2 4 d501766dex122.htm EX-12.2 EX-12.2

Exhibit 12.2

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND

PREFERRED STOCK DIVIDENDS(1)

 

    Three Months
Ended
March 31,
2013(1)		     Year Ended December 31,  

(Dollars in millions)

     2012     2011     2010     2009     2008  

Ratio (including interest expense on deposits):

            

Earnings:

            

Income from continuing operations before income taxes

   $ 1,638      $ 5,035      $ 4,587      $ 4,330      $ 1,336      $ 582   

Fixed charges

     482        2,377        2,251        2,903        2,975        3,985   

Equity in undistributed loss of unconsolidated subsidiaries

     34        127        112        49        60        55   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges, as adjusted

   $ 2,154      $ 7,539      $ 6,950      $ 7,282      $ 4,371      $ 4,622   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

            

Interest expense on deposits and borrowings

   $ 481      $ 2,375      $ 2,246      $ 2,896      $ 2,967      $ 3,963   

Interest factor in rent expense

     1        2        5        7        8        22   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

   $ 482      $ 2,377      $ 2,251      $ 2,903      $ 2,975      $ 3,985   

Preferred stock dividend requirements(3)

     19        20        —        —        188        16   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total combined fixed charges and preferred stock dividends

   $ 501      $ 2,397      $ 2,251      $ 2,903      $ 3,163      $ 4,001   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to combined fixed charges and preferred stock

     4.30        3.15        3.09        2.51        1.38        1.16   

Ratio (excluding interest expense on deposits):

            

Earnings:

            

Income from continuing operations before income taxes

   $ 1,638      $ 5,035      $ 4,587      $ 4,330      $ 1,336      $ 582   

Fixed charges

     156        974        1,064        1,438        882        1,473   

Equity in undistributed loss of unconsolidated subsidiaries

     34        127        112        49        60        55   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges, as adjusted

   $ 1,828      $ 6,136      $ 5,763      $ 5,817      $ 2,278      $ 2,110   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

            

Interest expense on borrowings(2)

   $ 155      $ 972      $ 1,059      $ 1,431      $ 874      $ 1,451   

Interest factor in rent expense

     1        2        5        7        8        22   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

   $ 156      $ 974      $ 1,064      $ 1,438      $ 882      $ 1,473   

Preferred stock dividend requirements(3)

     19        20        —        —        188        16   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total combined fixed charges and preferred stock dividends

   $ 175      $ 994      $ 1,064      $ 1,438      $ 1,070      $ 1,489   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

     10.46        6.17        5.42        4.05        2.13        1.42   

 

(1)

On February 27, 2009, we acquired Chevy Chase Bank, fsb. On February 17, 2012, we acquired ING Direct. On May 1, 2012, we closed the U.S. card acquisition. Each of these transactions was accounted for under the acquisition method of accounting, and their respective results of operations are included in our results from each respective transaction date.

(2)

Represents total interest expense reported in our consolidated statements of income, excluding interest on deposits of $326 million for the first quarter of 2013, and $1.4 billion, $1.2 billion, $1.5 billion, $2.1 billion, and $2.5 billion for the years ended December 31, 2012, 2011, 2010, 2009 and 2008, respectively.

(3)

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