| Nine Months Ended September 30, 2018 | Year Ended December 31, | |||||||||||||||||||||||
| (Dollars in millions) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
| Ratios (including interest expense on deposits): | ||||||||||||||||||||||||
| Earnings: | ||||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | 6,075 | $ | 5,492 | $ | 5,484 | $ | 5,881 | $ | 6,569 | $ | 6,578 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||||
| Fixed charges | 3,088 | 2,773 | 2,025 | 1,632 | 1,586 | 1,796 | ||||||||||||||||||
| Equity in undistributed losses (gains) of unconsolidated subsidiaries | 10 | (9 | ) | (7 | ) | (19 | ) | (1 | ) | (16 | ) | |||||||||||||
| Earnings available for fixed charges, as adjusted | $ | 9,173 | $ | 8,256 | $ | 7,502 | $ | 7,494 | $ | 8,154 | $ | 8,358 | ||||||||||||
| Fixed charges: | ||||||||||||||||||||||||
| Interest expense on deposits and borrowings | $ | 3,073 | $ | 2,762 | $ | 2,018 | $ | 1,625 | $ | 1,579 | $ | 1,792 | ||||||||||||
| Interest factor in rent expense | 15 | 11 | 7 | 7 | 7 | 4 | ||||||||||||||||||
| Total fixed charges | 3,088 | 2,773 | 2,025 | 1,632 | 1,586 | 1,796 | ||||||||||||||||||
Preferred stock dividend requirements(1) | 236 | 688 | 311 | 232 | 100 | 77 | ||||||||||||||||||
| Total combined fixed charges and preferred stock dividends | $ | 3,324 | $ | 3,461 | $ | 2,336 | $ | 1,864 | $ | 1,686 | $ | 1,873 | ||||||||||||
| Ratio of earnings to fixed charges | 2.97 | 2.98 | 3.70 | 4.59 | 5.14 | 4.65 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends(1) | 2.76 | 2.39 | 3.21 | 4.02 | 4.84 | 4.46 | ||||||||||||||||||
| Ratios (excluding interest expense on deposits): | ||||||||||||||||||||||||
| Earnings: | ||||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | 6,075 | $ | 5,492 | $ | 5,484 | $ | 5,881 | $ | 6,569 | $ | 6,578 | ||||||||||||
| Adjustments: | ||||||||||||||||||||||||
| Fixed charges | 1,246 | 1,171 | 812 | 541 | 498 | 555 | ||||||||||||||||||
| Equity in undistributed losses (gains) of unconsolidated subsidiaries | 10 | (9 | ) | (7 | ) | (19 | ) | (1 | ) | (16 | ) | |||||||||||||
| Earnings available for fixed charges, as adjusted | $ | 7,331 | $ | 6,654 | $ | 6,289 | $ | 6,403 | $ | 7,066 | $ | 7,117 | ||||||||||||
| Fixed charges: | ||||||||||||||||||||||||
Interest expense on borrowings(2) | $ | 1,231 | $ | 1,160 | $ | 805 | $ | 534 | $ | 491 | $ | 551 | ||||||||||||
| Interest factor in rent expense | 15 | 11 | 7 | 7 | 7 | 4 | ||||||||||||||||||
| Total fixed charges | 1,246 | 1,171 | 812 | 541 | 498 | 555 | ||||||||||||||||||
Preferred stock dividend requirements(1) | 236 | 688 | 311 | 232 | 100 | 77 | ||||||||||||||||||
| Total combined fixed charges and preferred stock dividends | $ | 1,482 | $ | 1,859 | $ | 1,123 | $ | 773 | $ | 598 | $ | 632 | ||||||||||||
| Ratio of earnings to fixed charges, excluding interest on deposits | 5.88 | 5.68 | 7.75 | 11.84 | 14.19 | 12.82 | ||||||||||||||||||
Ratio of earnings to combined fixed charges excluding interest on deposits and preferred stock dividends(1) | 4.95 | 3.58 | 5.60 | 8.28 | 11.82 | 11.26 | ||||||||||||||||||
(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. The impact of the Tax Act to our effective tax rate for 2017 was 32.2%, which is included in the calculations in the presentation above. See “Note 16—Income Taxes” in our 2017 Form 10-K for additional details on the impacts of the Tax Act. |
(2) | Interest expense on borrowings represents total interest expense reported on our consolidated statements of income, excluding interest on deposits of $1.8 billion for the nine months ended September 30, 2018, $1.6 billion for the year ended December 31, 2017, $1.2 billion for the year ended December 31, 2016, $1.1 billion for the years ended December 31, 2015 and 2014 and $1.2 billion for the year ended December 31, 2013. |
