Capital One Financial (COF) 10-Q 2013 Q3 Quarterly report

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES⁽¹⁾

(Dollars in millions)	Nine Months Ended September 30, 2013(1)		Year Ended December 31,
			2012		2011		2010		2009		2008
Ratio (including interest expense on deposits):
Earnings:
Income from continuing operations before income taxes	$	5,110	$	5,035	$	4,587	$	4,330	$	1,336	$	582
Fixed charges		1,379		2,377		2,251		2,903		2,975		3,985
Equity in undistributed loss of unconsolidated subsidiaries		112		127		112		49		60		55
Earnings available for fixed charges, as adjusted	$	6,601	$	7,539	$	6,950	$	7,282	$	4,371	$	4,622
Fixed charges:
Interest expense on deposits and borrowings	$	1,376	$	2,375	$	2,246	$	2,896	$	2,967	$	3,963
Interest factor in rent expense		3		2		5		7		8		22
Total fixed charges	$	1,379	$	2,377	$	2,251	$	2,903	$	2,975	$	3,985
Ratio of earnings to fixed charges		4.79		3.17		3.09		2.51		1.47		1.16
Ratio (excluding interest expense on deposits):
Earnings:
Income from continuing operations before income taxes	$	5,110	$	5,035	$	4,587	$	4,330	$	1,336	$	582
Fixed charges		426		974		1,064		1,438		882		1,473
Equity in undistributed loss of unconsolidated subsidiaries		112		127		112		49		60		55
Earnings available for fixed charges, as adjusted	$	5,648	$	6,136	$	5,763	$	5,817	$	2,278	$	2,110
Fixed charges:
Interest expense on borrowings(2)	$	423	$	972	$	1,059	$	1,431	$	874	$	1,451
Interest factor in rent expense		3		2		5		7		8		22
Total fixed charges	$	426	$	974	$	1,064	$	1,438	$	882	$	1,473
Ratio of earnings to fixed charges, excluding interest on deposits		13.26		6.30		5.42		4.05		2.58		1.43

⁽¹⁾ On February 27, 2009, we acquired Chevy Chase Bank, fsb. On February 17, 2012, we acquired ING Direct. On May 1, 2012, we closed the 2012 U.S. card acquisition. Each of these transactions was accounted for under the acquisition method of accounting, and their respective results of operations are included in our results from each respective transaction date.

⁽²⁾ Represents total interest expense reported in our consolidated statements of income, excluding interest on deposits of $953 million for the first nine months of 2013, and $1.4 billion, $1.2 billion, $1.5 billion, $2.1 billion, and $2.5 billion for the years ended December 31, 2012, 2011, 2010, 2009 and 2008, respectively.