EXHIBIT 99.2
WASHINGTON MUTUAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS
|
| Three Months Ended |
| Six Months Ended |
| ||||||||
|
| 2007 |
| 2006 |
| 2007 |
| 2006 |
| ||||
|
| (dollars in millions) |
| ||||||||||
Earnings, including interest on deposits(1): |
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations before income taxes |
| $ | 1,240 |
| $ | 1,148 |
| $ | 2,479 |
| $ | 2,682 |
|
Fixed charges |
| 2,756 |
| 2,922 |
| 5,726 |
| 5,509 |
| ||||
|
| $ | 3,996 |
| $ | 4,070 |
| $ | 8,205 |
| $ | 8,191 |
|
Preferred dividend requirement |
| $ | 8 |
| $ | – |
| $ | 15 |
| $ | – |
|
Ratio of income from continuing operations before income taxes to income from continuing operations |
| 1.49 |
| 1.51 |
| 1.54 |
| 1.55 |
| ||||
Preferred dividends(2) |
| $ | 12 |
| $ | – |
| $ | 23 |
| $ | – |
|
Fixed charges(1)(3): |
|
|
|
|
|
|
|
|
| ||||
Interest expense |
| $ | 2,714 |
| $ | 2,875 |
| $ | 5,641 |
| $ | 5,416 |
|
Estimated interest component of net rental expense |
| 42 |
| 47 |
| 85 |
| 93 |
| ||||
|
| 2,756 |
| 2,922 |
| 5,726 |
| 5,509 |
| ||||
Fixed charges and preferred dividends |
| $ | 2,768 |
| $ | 2,922 |
| $ | 5,749 |
| $ | 5,509 |
|
Ratio of earnings to fixed charges and preferred dividends |
| 1.44 |
| 1.39 |
| 1.43 |
| 1.49 |
| ||||
Earnings, excluding interest on deposits(1): |
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations before income taxes |
| $ | 1,240 |
| $ | 1,148 |
| $ | 2,479 |
| $ | 2,682 |
|
Fixed charges |
| 1,033 |
| 1,461 |
| 2,231 |
| 2,827 |
| ||||
|
| $ | 2,273 |
| $ | 2,609 |
| $ | 4,710 |
| $ | 5,509 |
|
Preferred dividends(2) |
| $ | 12 |
| $ | – |
| $ | 23 |
| $ | – |
|
Fixed charges(1)(3): |
|
|
|
|
|
|
|
|
| ||||
Interest expense |
| $ | 2,714 |
| $ | 2,875 |
| $ | 5,641 |
| $ | 5,416 |
|
Less: interest on deposits |
| (1,723 | ) | (1,461 | ) | (3,495 | ) | (2,682 | ) | ||||
Estimated interest component of net rental expense |
| 42 |
| 47 |
| 85 |
| 93 |
| ||||
|
| 1,033 |
| 1,461 |
| 2,231 |
| 2,827 |
| ||||
Fixed charges and preferred dividends |
| $ | 1,045 |
| $ | 1,461 |
| $ | 2,254 |
| $ | 2,827 |
|
Ratio of earnings to fixed charges and preferred dividends |
| 2.18 |
| 1.79 |
| 2.09 |
| 1.95 |
|
(1) As defined in Item 503(d) of Regulation S-K.
(2) The preferred dividends were increased to amounts representing the pretax earnings that would be required to cover such dividend requirements.
(3) Fixed charges exclude interest expense on uncertain tax positions which is included as a component of income taxes in the Consolidated Statements of Income.