Exhibit 12.1
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Six Months Ended June 30, 2017 | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in millions) | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Ratios (including interest expense on deposits): | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 2,599 | $ | 5,484 | $ | 5,881 | $ | 6,569 | $ | 6,578 | $ | 5,184 | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Fixed charges | 1,256 | 2,025 | 1,632 | 1,586 | 1,796 | 2,377 | ||||||||||||||||||
Equity in undistributed (gain) loss of unconsolidated subsidiaries | (7 | ) | (7 | ) | (19 | ) | (1 | ) | (16 | ) | (22 | ) | ||||||||||||
Earnings available for fixed charges, as adjusted | $ | 3,848 | $ | 7,502 | $ | 7,494 | $ | 8,154 | $ | 8,358 | $ | 7,539 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense on deposits and borrowings | $ | 1,251 | $ | 2,018 | $ | 1,625 | $ | 1,579 | $ | 1,792 | $ | 2,375 | ||||||||||||
Interest factor in rent expense | 5 | 7 | 7 | 7 | 4 | 2 | ||||||||||||||||||
Total fixed charges | 1,256 | 2,025 | 1,632 | 1,586 | 1,796 | 2,377 | ||||||||||||||||||
Preferred stock dividend requirements(1) | 188 | 311 | 232 | 100 | 77 | 20 | ||||||||||||||||||
Total combined fixed charges and preferred stock dividends | $ | 1,444 | $ | 2,336 | $ | 1,864 | $ | 1,686 | $ | 1,873 | $ | 2,397 | ||||||||||||
Ratio of earnings to fixed charges | 3.06 | 3.70 | 4.59 | 5.14 | 4.65 | 3.17 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 2.66 | 3.21 | 4.02 | 4.84 | 4.46 | 3.15 | ||||||||||||||||||
Ratios (excluding interest expense on deposits): | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 2,599 | $ | 5,484 | $ | 5,881 | $ | 6,569 | $ | 6,578 | $ | 5,184 | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Fixed charges | 521 | 812 | 541 | 498 | 555 | 974 | ||||||||||||||||||
Equity in undistributed (gain) loss of unconsolidated subsidiaries | (7 | ) | (7 | ) | (19 | ) | (1 | ) | (16 | ) | (22 | ) | ||||||||||||
Earnings available for fixed charges, as adjusted | $ | 3,113 | $ | 6,289 | $ | 6,403 | $ | 7,066 | $ | 7,117 | $ | 6,136 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense on borrowings(2) | $ | 516 | $ | 805 | $ | 534 | $ | 491 | $ | 551 | $ | 972 | ||||||||||||
Interest factor in rent expense | 5 | 7 | 7 | 7 | 4 | 2 | ||||||||||||||||||
Total fixed charges | 521 | 812 | 541 | 498 | 555 | 974 | ||||||||||||||||||
Preferred stock dividend requirements(1) | 188 | 311 | 232 | 100 | 77 | 20 | ||||||||||||||||||
Total combined fixed charges and preferred stock dividends | $ | 709 | $ | 1,123 | $ | 773 | $ | 598 | $ | 632 | $ | 994 | ||||||||||||
Ratio of earnings to fixed charges, excluding interest on deposits | 5.98 | 7.75 | 11.84 | 14.19 | 12.82 | 6.30 | ||||||||||||||||||
Ratio of earnings to combined fixed charges, excluding interest on deposits and preferred stock dividends | 4.39 | 5.60 | 8.28 | 11.82 | 11.26 | 6.17 |
__________
(1) | Preferred stock dividends requirements represent pre-tax earnings that would be required to cover any preferred stock dividends, computed using our effective tax rate, whenever there is an income tax provision, for the relevant periods. |
(2) | Interest expense on borrowings represents total interest expense reported on our consolidated statements of income, excluding interest on deposits of $735 million for the six months ended June 30, 2017, $1.2 billion for the years ended December 31, 2016, $1.1 billion for the years ended December 31, 2015 and 2014, $1.2 billion for the year ended December 31, 2013 and $1.4 billion for the year ended December 31, 2012. |