Exhibit 12.2
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS(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 | ||||||||||||
Preferred stock dividend requirements(3) | 57 | 20 | — | — | 188 | 16 | ||||||||||||||||||
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Total combined fixed charges and preferred stock dividends | $ | 1,436 | $ | 2,397 | $ | 2,251 | $ | 2,903 | $ | 3,163 | $ | 4,001 | ||||||||||||
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Ratio of earnings to combined fixed charges and preferred stock | 4.60 | 3.15 | 3.09 | 2.51 | 1.38 | 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 | ||||||||||||
Preferred stock dividend requirements(3) | 57 | 20 | — | — | 188 | 16 | ||||||||||||||||||
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Total combined fixed charges and preferred stock dividends | $ | 483 | $ | 994 | $ | 1,064 | $ | 1,438 | $ | 1,070 | $ | 1,489 | ||||||||||||
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Ratio of earnings to combined fixed charges, excluding interest on deposits and preferred stock dividends | 11.69 | 6.17 | 5.42 | 4.05 | 2.13 | 1.42 |
(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. |
(3) | Preferred stock dividends represent pre-tax earnings that would be required to cover any preferred stock dividends requirements, computed using our effective tax rate, whenever there is an income tax provision, for the relevant periods. |