MBNA (KRB) 10-Q 2005 Q3 Quarterly report

Exhibit 12: Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements
(dollars in thousands) (unaudited)
	For the Nine Months
	Ended September 30,
	2005			2004
Including Interest on Deposits
Earnings:
Income before income taxes	$	2,161,045		$	2,922,886
Fixed charges		1,297,728			1,143,591
Interest capitalized during period, net of amortization of previously capitalized interest		(3,236	)		(10,395	)
Earnings, for computation purposes	$	3,455,537		$	4,056,082
Fixed Charges and Preferred Stock Dividend Requirements:
Interest on deposits, short-term borrowings, and long-term debt and bank notes, expensed or capitalized	$	1,295,529		$	1,140,429
Portion of rents representative of the interest factor		2,199			3,162
Fixed charges		1,297,728			1,143,591
Preferred stock dividend requirements		16,507			16,153
Fixed charges and preferred stock dividend requirements, including interest on deposits, for computation purposes	$	1,314,235		$	1,159,744
Ratio of earnings to combined fixed charges and preferred stock dividend requirements, including interest on deposits		2.63			3.50
Excluding Interest on Deposits
Earnings:
Income before income taxes	$	2,161,045		$	2,922,886
Fixed charges		532,057			411,074
Interest capitalized during period, net of amortization of previously capitalized interest		(3,252	)		(10,411	)
Earnings, for computation purposes	$	2,689,850		$	3,323,549
Fixed Charges and Preferred Stock Dividend Requirements:
Interest on short-term borrowings and long-term debt and bank notes, expensed or capitalized	$	529,858		$	407,912
Portion of rents representative of the interest factor		2,199			3,162
Fixed charges		532,057			411,074
Preferred stock dividend requirements		16,507			16,153
Fixed charges and preferred stock dividend requirements, excluding interest on deposits, for computation purposes	$	548,564		$	427,227
Ratio of earnings to combined fixed charges and preferred stock dividend requirements, excluding interest on deposits		4.90			7.78

The ratio of earnings to combined fixed charges and preferred stock dividend requirements is computed by dividing (i) income before income taxes and fixed charges less interest capitalized during such period, net of amortization of previously capitalized interest, by (ii) fixed charges and preferred stock dividend requirements. Fixed charges consist of interest, expensed or capitalized, on borrowings (including or excluding deposits, as applicable), and the portion of rental expense which is deemed representative of interest. The preferred stock dividend requirements represent the pre-tax earnings which would have been required to cover such dividend requirements on the Corporation's Preferred Stock outstanding.