Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net income before income tax expense and cumulative effect of changes in accounting principles | $ | 16,834 | $ | 11,639 | $ | 9,274 | $ | 11,002 | $ | 25,363 | |||||||||
Add: | |||||||||||||||||||
Total interest expense(1) | 53,643 | 50,786 | 52,144 | 55,217 | 56,234 | ||||||||||||||
Interest factor in rental expenses | 3 | 3 | 2 | 5 | 4 | ||||||||||||||
Earnings, as adjusted | $ | 70,480 | $ | 62,428 | $ | 61,420 | $ | 66,224 | $ | 81,601 | |||||||||
Fixed charges: | |||||||||||||||||||
Total interest expense | $ | 53,643 | 50,786 | 52,144 | 55,217 | 56,234 | |||||||||||||
Interest factor in rental expenses | 3 | 3 | 2 | 5 | 4 | ||||||||||||||
Total fixed charges | $ | 53,646 | $ | 50,789 | $ | 52,146 | $ | 55,222 | $ | 56,238 | |||||||||
Senior preferred stock and preferred stock dividends(2) | 33,167 | 7,437 | 5,510 | 19,610 | 47,591 | ||||||||||||||
Total fixed charges including preferred stock dividends | $ | 86,813 | $ | 58,226 | $ | 57,656 | $ | 74,832 | $ | 103,829 | |||||||||
Ratio of earnings to fixed charges(3) | 1.31 | 1.23 | 1.18 | 1.20 | 1.45 | ||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends(4) | — | 1.07 | 1.07 | — | — |
(1) | Prior periods data have been revised to conform to the current presentation |
(2) | Senior preferred stock and preferred stock dividends represent pre-tax earnings required to cover any senior preferred stock and preferred stock dividend requirements computed using our effective tax rate. |
(3) | Ratio of earnings to fixed charges is computed by dividing earnings, as adjusted by total fixed charges. |
(4) | Ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing earnings, as adjusted by total fixed charges including preferred stock dividends. For the ratio to equal 1.00, earnings, as adjusted must increase by $16.3 billion, $8.6 billion and $22.2 billion for the years ended December 31, 2017, 2014, and 2013, respectively. |