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, 2018 | | 2017 | | 2016 | | 2015 | | 2014 | | 2013(2) |
| Computation of Earnings: | | | | | | | | | | | | | |
| Income (loss) from continuing operations before income tax expense |
| $576 |
| |
| $1,626 |
| |
| $1,912 |
| |
| $1,534 |
| |
| $1,263 |
| |
| $1,268 |
| |
| ($3,468 | ) |
| Fixed charges | 350 |
| | 910 |
| | 813 |
| | 573 |
| | 510 |
| | 417 |
| | 499 |
|
| Total Adjusted Earnings |
| $926 |
| |
| $2,536 |
| |
| $2,725 |
| |
| $2,107 |
| |
| $1,773 |
| |
| $1,685 |
| |
| ($2,969 | ) |
| | | | | | | | | | | | | | |
| Computation of Fixed Charges: | | | | | | | | | | | | | |
| Interest expense |
| $329 |
| |
| $856 |
| |
| $747 |
| |
| $508 |
| |
| $452 |
| |
| $363 |
| |
| $443 |
|
Portion of net rental expense deemed representative of interest (1) | 14 |
| | 40 |
| | 52 |
| | 51 |
| | 51 |
| | 54 |
| | 56 |
|
| Preferred distribution | 7 |
| | 14 |
| | 14 |
| | 14 |
| | 7 |
| | — |
| | — |
|
| Total Fixed Charges |
| $350 |
| |
| $910 |
| |
| $813 |
| |
| $573 |
| |
| $510 |
| |
| $417 |
| |
| $499 |
|
| | | | | | | | | | | | | | |
| Ratio of Earnings to Fixed Charges and Preferred Dividends | 2.6 |
| | 2.8 |
| | 3.3 |
| | 3.7 |
| | 3.5 |
| | 4.0 |
| | (5.9 | ) |
(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).
