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 | ||||||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 6,601 | $ | 7,539 | $ | 6,950 | $ | 7,282 | $ | 4,371 | $ | 4,622 | ||||||||||||
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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 | ||||||||||||||||||
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Total fixed charges | $ | 1,379 | $ | 2,377 | $ | 2,251 | $ | 2,903 | $ | 2,975 | $ | 3,985 | ||||||||||||
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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 | ||||||||||||||||||
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Earnings available for fixed charges, as adjusted | $ | 5,648 | $ | 6,136 | $ | 5,763 | $ | 5,817 | $ | 2,278 | $ | 2,110 | ||||||||||||
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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 | ||||||||||||||||||
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Total fixed charges | $ | 426 | $ | 974 | $ | 1,064 | $ | 1,438 | $ | 882 | $ | 1,473 | ||||||||||||
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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. |