EX-12.1 5 cof-06302016x10qxex121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
 
Six Months Ended June 30, 2016
 
Year Ended December 31,
(Dollars in millions)
 
 
2015
 
2014
 
2013
 
2012
 
2011
Ratios (including interest expense on deposits):
 
 
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
$
2,837

 
$
5,881

 
$
6,569

 
$
6,578

  
$
5,184

  
$
4,688

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
942

 
1,632

 
1,586

 
1,796

  
2,377

  
2,251

Equity in undistributed (gain) loss of unconsolidated subsidiaries
 
(2
)
 
(19
)
 
(1
)
 
(16
)
  
(22
)
  
4

Earnings available for fixed charges, as adjusted
 
$
3,777

 
$
7,494

 
$
8,154

 
$
8,358

  
$
7,539

  
$
6,943

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense on deposits and borrowings
 
$
939

 
$
1,625

 
$
1,579

 
$
1,792

  
$
2,375

  
$
2,246

Interest factor in rent expense
 
3

 
7

 
7

 
4

  
2

  
5

Total fixed charges
 
942

 
1,632

 
1,586

 
1,796

  
2,377

  
2,251

Preferred stock dividend requirements(1)
 
148

 
232

 
100

 
77

 
20

 
—

Total combined fixed charges and preferred stock dividends
 
$
1,090

 
$
1,864

 
$
1,686

 
$
1,873

 
$
2,397

 
$
2,251

Ratio of earnings to fixed charges
 
4.01

 
4.59

 
5.14

 
4.65

 
3.17

 
3.08

Ratio of earnings to combined fixed charges and preferred stock dividends
 
3.47
 
4.02
 
4.84
 
4.46
  
3.15
  
3.08
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratios (excluding interest expense on deposits):
 
 
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
$
2,837

 
$
5,881

 
$
6,569

 
$
6,578

  
$
5,184

  
$
4,688

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
367

 
541

 
498

 
555

  
974

  
1,064

Equity in undistributed (gain) loss of unconsolidated subsidiaries
 
(2
)
 
(19
)
 
(1
)
 
(16
)
  
(22
)
  
4

Earnings available for fixed charges, as adjusted
 
$
3,202

 
$
6,403

 
$
7,066

 
$
7,117

  
$
6,136

  
$
5,756

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense on borrowings(2)
 
$
364

 
$
534

 
$
491

 
$
551

  
$
972

  
$
1,059

Interest factor in rent expense
 
3

 
7

 
7

 
4

  
2

  
5

Total fixed charges
 
367

 
541

 
498

 
555

  
974

  
1,064

Preferred stock dividend requirements(1)
 
148

 
232

 
100

 
77

 
20

 
—

Total combined fixed charges and preferred stock dividends
 
$
515

 
$
773

 
$
598

 
$
632

 
$
994

 
$
1,064

Ratio of earnings to fixed charges, excluding interest on deposits
 
8.72

 
11.84

 
14.19

 
12.82

 
6.30

 
5.41

Ratio of earnings to combined fixed charges, excluding interest on deposits and preferred stock dividends
 
6.22
 
8.28
 
11.82
 
11.26
  
6.17
  
5.41
__________
(1) 
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.
(2) 
Represents total interest expense reported on our consolidated statements of income, excluding interest on deposits of $575 million for the six months ended June 30, 2016, and $1.1 billion for the years ended December 31, 2015 and 2014, and $1.2 billion, $1.4 billion and $1.2 billion for the years ended December 31, 2013, 2012 and 2011, respectively.