Exhibit 12.2
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
Six Months Ended June 30, 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 | $ | 2,094 | $ | 4,587 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | ||||||||||||
Fixed charges | 1,181 | 2,251 | 2,903 | 2,975 | 3,985 | 4,583 | ||||||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 62 | 112 | 49 | 60 | 55 | 43 | ||||||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 3,337 | $ | 6,950 | $ | 7,282 | $ | 4,371 | $ | 4,622 | $ | 8,496 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense on deposits and debt | $ | 1,180 | $ | 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 | $ | 1,181 | $ | 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 | $ | 1,181 | $ | 2,251 | $ | 2,093 | $ | 3,163 | $ | 4,001 | $ | 4,583 | ||||||||||||
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Ratio of earnings to fixed charges, including interest on deposits | 2.83 | 3.09 | 2.51 | 1.38 | 1.16 | 1.85 | ||||||||||||||||||
Ratio (excluding interest expense on deposits): | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 2,094 | $ | 4,587 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | ||||||||||||
Fixed charges | 497 | 1,064 | 1,438 | 882 | 1,473 | 1,677 | ||||||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 62 | 112 | 49 | 60 | 55 | 43 | ||||||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 2,653 | $ | 5,763 | $ | 5,817 | $ | 2,278 | $ | 2,110 | $ | 5,590 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense on debt(3) | $ | 496 | $ | 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 | $ | 497 | $ | 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 | $ | 497 | $ | 1,064 | $ | 1,438 | $ | 1,070 | $ | 1,489 | $ | 1,677 | ||||||||||||
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Ratio of earnings to fixed charges, excluding interest on deposits | 5.34 | 5.42 | 4.05 | 2.13 | 1.42 | 3.33 |
(1) | Results include the impact of the February 17, 2012 ING Direct and the May 1, 2012 HSBC U.S. card acquisitions. |
(2) | Results include the impact of the February 27, 2009 Chevy Chase Bank, fsb acquisition. |
(3) | Represents total interest expense reported in our consolidated statements of income, excluding interest on deposits of $684 million for the six months ended June 30, 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. |