CITIZENS FINANCIAL GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months | | Nine Months | | Year Ended December 31, |
| (dollars in millions) | Ended September 30, 2016 | | | 2015 |
| | 2014 |
| | 2013(2) |
| | 2012 |
| | 2011 |
|
| Computation of Earnings: | | | | | | | | | | | | | |
| Income (loss) from continuing operations before income tax expense |
| $427 |
| |
| $1,120 |
| |
| $1,263 |
| |
| $1,268 |
| |
| ($3,468 | ) | |
| $1,024 |
| |
| $778 |
|
| Fixed charges | 153 |
| | 424 |
| | 510 |
| | 417 |
| | 499 |
| | 669 |
| | 941 |
|
| Total Adjusted Earnings |
| $580 |
| |
| $1,544 |
| |
| $1,773 |
| |
| $1,685 |
| |
| ($2,969 | ) | |
| $1,693 |
| |
| $1,719 |
|
| | | | | | | | | | | | | | |
| Computation of Fixed Charges: | | | | | | | | | | | | | |
| Interest expense |
| $134 |
| |
| $372 |
| |
| $452 |
| |
| $363 |
| |
| $443 |
| |
| $619 |
| |
| $884 |
|
Portion of net rental expense deemed representative of interest(1) | 12 |
| | 38 |
| | 51 |
| | 54 |
| | 56 |
| | 50 |
| | 57 |
|
| Preferred distribution | 7 |
| | 14 |
| | 7 |
| | — |
| | — |
| | — |
| | — |
|
| Total Fixed charges |
| $153 |
| |
| $424 |
| |
| $510 |
| |
| $417 |
| |
| $499 |
| |
| $669 |
| |
| $941 |
|
| | | | | | | | | | | | | | |
| Ratio of Earnings to Fixed Charges and Preferred Dividends | 3.7 | % | | 3.6 | % | | 3.5 | % | | 4.0 | % | | (5.9 | )% | | 2.5 | % | | 1.8 | % |
(1) The portion of rents shown as representative of the interest factor is one-quarter of total net operating lease expenses.
(2) The deficiency for this period was $3,468 million due in part to a goodwill impairment charge of $4,435 million ($4,080 million after tax).
