Exhibit 12.2
CAPITAL ONE FINANCIAL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Dollars in millions) | Year Ended December 31, | |||||||||||||||||||
2011 | 2010 | 2009(1) | 2008 | 2007 | ||||||||||||||||
Ratio (including interest expense on deposits): | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 4,587 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | ||||||||||
Fixed charges | 2,251 | 2,903 | 2,975 | 3,985 | 4,583 | |||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 112 | 49 | 60 | 55 | 43 | |||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 6,950 | $ | 7,282 | $ | 4,371 | $ | 4,622 | $ | 8,496 | ||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense on deposits and debt | $ | 2,246 | $ | 2,896 | $ | 2,967 | $ | 3,963 | $ | 4,548 | ||||||||||
Interest factor in rent expense | 5 | 7 | 8 | 22 | 35 | |||||||||||||||
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Total fixed charges | $ | 2,251 | $ | 2,903 | $ | 2,975 | $ | 3,985 | $ | 4,583 | ||||||||||
Preferred stock dividends, pre-tax | — | — | 188 | 16 | — | |||||||||||||||
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Total fixed charges and preferred stock dividends | $ | 2,251 | $ | 2,903 | $ | 3,163 | $ | 4,001 | $ | 4,583 | ||||||||||
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Ratio of earnings to fixed charges, including interest on deposits | 3.09 | 2.51 | 1.38 | 1.16 | 1.85 | |||||||||||||||
Ratio (excluding interest expense on deposits): | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 4,587 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | ||||||||||
Fixed charges | 1,064 | 1,438 | 882 | 1,473 | 1,677 | |||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 112 | 49 | 60 | 55 | 43 | |||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 5,763 | $ | 5,817 | $ | 2,278 | $ | 2,110 | $ | 5,590 | ||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense on debt(2) | $ | 1,059 | $ | 1,431 | $ | 874 | $ | 1,451 | $ | 1,642 | ||||||||||
Interest factor in rent expense | 5 | 7 | 8 | 22 | 35 | |||||||||||||||
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Total fixed charges | $ | 1,064 | $ | 1,438 | $ | 882 | $ | 1,473 | $ | 1,677 | ||||||||||
Preferred stock dividends, pre-tax | — | — | 188 | 16 | — | |||||||||||||||
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Total fixed charges and preferred stock dividends | $ | 1,064 | $ | 1,438 | $ | 1,070 | $ | 1,489 | $ | 1,677 | ||||||||||
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Ratio of earnings to fixed charges, excluding interest on deposits | 5.42 | 4.05 | 2.13 | 1.42 | 3.33 |
(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 $1.2 billion, $1.5 billion, $2.1 billion, $2.5 billion and $2.9 billion in 2011, 2010, 2009, 2008 and 2007 respectively. |