Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended March 31, 2012(1) | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in millions) | 2011 | 2010 | 2009(2) | 2008 | 2007 | |||||||||||||||||||
Ratio (including interest expense on deposits): | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,858 | $ | 4,587 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | ||||||||||||
Fixed charges | 566 | 2,251 | 2,903 | 2,975 | 3,985 | 4,583 | ||||||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 28 | 112 | 49 | 60 | 55 | 43 | ||||||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 2,452 | $ | 6,950 | $ | 7,282 | $ | 4,371 | $ | 4,622 | $ | 8,496 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense on deposits and debt | $ | 565 | $ | 2,246 | $ | 2,896 | $ | 2,967 | $ | 3,963 | $ | 4,548 | ||||||||||||
Interest factor in rent expense | 1 | 5 | 7 | 8 | 22 | 35 | ||||||||||||||||||
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Total fixed charges | $ | 566 | $ | 2,251 | $ | 2,903 | $ | 2,975 | $ | 3,985 | $ | 4,583 | ||||||||||||
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Ratio of earnings to fixed charges, including interest on deposits | 4.33 | 3.09 | 2.51 | 1.47 | 1.16 | 1.85 | ||||||||||||||||||
Ratio (excluding interest expense on deposits): | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,858 | $ | 4,587 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | ||||||||||||
Fixed charges | 255 | 1,064 | 1,438 | 882 | 1,473 | 1,677 | ||||||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 28 | 112 | 49 | 60 | 55 | 43 | ||||||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 2,141 | $ | 5,763 | $ | 5,817 | $ | 2,278 | $ | 2,110 | $ | 5,590 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense on debt(3) | $ | 254 | $ | 1,059 | $ | 1,431 | $ | 874 | $ | 1,451 | $ | 1,642 | ||||||||||||
Interest factor in rent expense | 1 | 5 | 7 | 8 | 22 | 35 | ||||||||||||||||||
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Total fixed charges | $ | 255 | $ | 1,064 | $ | 1,438 | $ | 882 | $ | 1,473 | $ | 1,677 | ||||||||||||
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Ratio of earnings to fixed charges, excluding interest on deposits | 8.41 | 5.42 | 4.05 | 2.58 | 1.43 | 3.33 |
(1) | On February 17, 2012, we acquired ING Direct. 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) | 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. |
(3) | Represents total interest expense reported in our consolidated statements of income, excluding interest on deposits of $311 million for the first quarter of 2012, and $1.2 billion, $1.5 billion, $2.1 billion, $2.5 billion and $2.9 billion for the years ended December 31, 2011, 2010, 2009, 2008, and 2007, respectively. |
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