Exhibit 12.2
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
Nine Months Ended September 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 | $ | 3,817 | $ | 4,587 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | ||||||||||||
Fixed charges | 1,789 | 2,251 | 2,903 | 2,975 | 3,985 | 4,583 | ||||||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 95 | 112 | 49 | 60 | 55 | 43 | ||||||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 5,701 | $ | 6,950 | $ | 7,282 | $ | 4,371 | $ | 4,622 | $ | 8,496 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense on deposits and debt | $ | 1,788 | $ | 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 | 1,789 | 2,251 | 2,903 | 2,975 | 3,985 | 4,583 | ||||||||||||||||||
Preferred stock dividends(3) | — | — | — | 188 | 16 | — | ||||||||||||||||||
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Total fixed charges and preferred stock dividends | $ | 1,789 | $ | 2,251 | $ | 2,093 | $ | 3,163 | $ | 4,001 | $ | 4,583 | ||||||||||||
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Ratio of earnings to combined fixed charges and preferred stock dividends | 3.19 | 3.09 | 2.51 | 1.38 | 1.16 | 1.85 | ||||||||||||||||||
Ratio (excluding interest expense on deposits): | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 3,817 | $ | 4,587 | $ | 4,330 | $ | 1,336 | $ | 582 | $ | 3,870 | ||||||||||||
Fixed charges | 734 | 1,064 | 1,438 | 882 | 1,473 | 1,677 | ||||||||||||||||||
Equity in undistributed loss of unconsolidated subsidiaries | 95 | 112 | 49 | 60 | 55 | 43 | ||||||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 4,646 | $ | 5,763 | $ | 5,817 | $ | 2,278 | $ | 2,110 | $ | 5,590 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense on debt(4) | $ | 733 | $ | 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, excluding interest on deposits | 734 | 1,064 | 1,438 | 882 | 1,473 | 1,677 | ||||||||||||||||||
Preferred stock dividends(3) | — | — | — | 188 | 16 | — | ||||||||||||||||||
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Total combined fixed charges, excluding interest on deposits, and preferred stock dividends | $ | 734 | $ | 1,064 | $ | 1,438 | $ | 1,070 | $ | 1,489 | $ | 1,677 | ||||||||||||
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Ratio of earnings to combined fixed charges, excluding interest on deposits, and preferred stock dividends | 6.33 | 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 subsequent to February 27, 2009 include the impact of the Chevy Chase Bank, fsb acquisition. |
(3) | Preferred stock dividend requirements represent pre-tax earnings required to cover any senior preferred stock and preferred stock dividend requirements, computed using our effective tax rate whenever there is an income tax provision, for the relevant periods. |
(4) | Represents total interest expense reported in our consolidated statements of income, excluding interest on deposits of $1.1 billion for the nine months ended September 30, 2012, and $1.2 billion, $1.5 billion, $2.1 billion, $2.5 billion and $2.9 billion for 2011, 2010, 2009, 2008, and 2007, respectively. |