Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
Three Months Ended | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in millions) | March 31, 2011 | 2010 | 2009(1) | 2008 | 2007 | 2006 | ||||||||||||||||||
Ratio (including interest expense on deposits): | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,386 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | $ | 3,672 | ||||||||||||
Fixed charges | 614 | 2,904 | 2,975 | 3,985 | 4,583 | 3,087 | ||||||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 25 | 49 | 60 | 55 | 43 | 15 | ||||||||||||||||||
Earnings available for fixed charges, as adjusted | $ | 2,025 | $ | 7,283 | $ | 4,371 | $ | 4,622 | $ | 8,496 | $ | 6,774 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense on deposits and debt | $ | 612 | $ | 2,896 | $ | 2,967 | $ | 3,963 | $ | 4,548 | $ | 3,073 | ||||||||||||
Interest factor in rent expense | 2 | 8 | 8 | 22 | 35 | 14 | ||||||||||||||||||
Total fixed charges | $ | 614 | $ | 2,904 | $ | 2,975 | $ | 3,985 | $ | 4,583 | $ | 3,087 | ||||||||||||
Ratio of earnings to fixed charges, including interest on deposits | 3.30 | 2.51 | 1.47 | 1.16 | 1.85 | 2.19 | ||||||||||||||||||
Ratio (excluding interest expense on deposits): | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,386 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | $ | 3,672 | ||||||||||||
Fixed charges | 292 | 1,439 | 882 | 1,473 | 1,677 | 1,272 | ||||||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 25 | 49 | 60 | 55 | 43 | 15 | ||||||||||||||||||
Earnings available for fixed charges, as adjusted | $ | 1,703 | $ | 5,818 | $ | 2,278 | $ | 2,110 | $ | 5,590 | $ | 4,959 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense on debt(2) | $ | 290 | $ | 1,431 | $ | 874 | $ | 1,451 | $ | 1,642 | $ | 1,258 | ||||||||||||
Interest factor in rent expense | 2 | 8 | 8 | 22 | 35 | 14 | ||||||||||||||||||
Total fixed charges | $ | 292 | $ | 1,439 | $ | 882 | $ | 1,473 | $ | 1,677 | $ | 1,272 | ||||||||||||
Ratio of earnings to fixed charges, excluding interest on deposits | 5.83 | 4.04 | 2.58 | 1.43 | 3.33 | 3.90 |
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(1) | On February 27, 2009, we acquired Chevy Chase Bank, FSB. The transaction was accounted for as a purchase, and the related results of operations are included in our consolidated results from the date of the transaction. |
(2) | Represents total interest expense reported in our consolidated statements of income, excluding interest on deposits of $322 million for the first quarter of 2011, and $1.5 billion, $2.1 billion, $2.5 billion, $2.9 billion and $1.8 billion for the years ended December 31, 2010, 2009, 2008, 2007 and 2006, respectively. |