EX-12.1 8 exh121to8koct2003b.htm

EXHIBIT 12 (a)

WASHINGTON MUTUAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Nine Months Ended
September 30, 2003		 Year Ended December 31,

(in millions)

 2002 2001 2000 1999 1998
Earnings, including interest
  on  deposits(1):		                            
Income before income tax expense    

$

 4,837   $ 6,154   $ 4,932   $ 2,984   $ 2,884   $ 2,369  
Fixed charges       3,708     6,026     8,285     9,538     7,674     6,990  
     

$

 8,545   $ 12,180   $ 13,217   $ 12,522   $ 10,558   $ 9,359  
Fixed charges (1):    
      Interest expense    

$

 3,597   $ 5,906   $ 8,189   $ 9,472   $ 7,610   $ 6,929  
         
      Estimated interest component
        of net rental expense		       111     120     96     66     64     61  
     

$

 3,708   $ 6,026   $ 8,285   $ 9,538   $ 7,674   $ 6,990  
         
Ratio of earnings to fixed charges(2)       2.30     2.02     1.60     1.31     1.38     1.34  
Earnings, excluding interest
  on deposits(1):		    
Income before income tax expense    

$

 4,837   $ 6,154   $ 4,932   $ 2,984   $ 2,884   $ 2,369  
         
Fixed charges       2,034     3,358     5,191     6,248     4,504     3,402  
     

$

 6,871   $ 9,512   $ 10,123   $ 9,232   $ 7,388   $ 5,771  
           
Fixed charges:    
      Interest expense    

$

 3,597   $ 5,906   $ 8,189   $ 9,472   $ 7,610   $ 6,929  
         
      Less interest on deposits       1,674     2,668     3,094     3,290     3,170     3,588  
      Estimated interest component
        of net rental expense		       111     120     96     66     64     61  
     

$

 2,034   $ 3,358   $ 5,191   $ 6,248   $ 4,504   $ 3,402  
         
Ratio of earnings to fixed charges(2)       3.38     2.83     1.95     1.48     1.64     1.70  
 

(1)     As defined in Item 503(d) of Regulation S-K.

(2)     These computations are included herein in compliance with Securities and Exchange Commission Regulations. However, management believes that fixed charge ratios are not meaningful measures for the business of the Company because of two factors. First, even if there were no change in net income, the ratios would decline with an increase in the proportion of income which is tax-exempt or, conversely, they would increase with a decrease in the proportion of income which is tax-exempt. Second, even if there were no change in net income, the ratios would decline if interest income and interest expense increase by the same amount due to an increase in the level of interest rates or, conversely, they would increase if interest income and interest expense decrease by the same amount due to a decrease in the level of interest rates.

 

 

 

EXHIBIT 12 (b)

WASHINGTON MUTUAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS

 

Nine MonthsEnded
September 30, 2003

Year Ended December 31,
(in millions)

2002

2001

2000

1999

1998
Earnings, including
  interest on deposits(1):		                            
Income before income tax expense    

$

 4,837   $ 6,154   $ 4,932   $ 2,984   $ 2,884   $ 2,369  
Fixed charges       3,708     6,026     8,285     9,538     7,674     6,990  
     

$

 8,545   $ 12,180   $ 13,217   $ 12,522   $ 10,558   $ 9,359  
Preferred dividend requirement    

$

 --   $ 5   $ 7   $ --   $ --   $ 20  
Ratio of income before income tax
  expense to net income		       1.59     1.58     1.58     1.57     1.59     1.59  
Preferred dividends (2)    

$

 --   $ 8   $ 11   $ --   $ --   $ 32  
Fixed charges (1):    
      Interest expense    

$

 3,597   $ 5,906   $ 8,189   $ 9,472   $ 7,610   $ 6,929  
      Estimated interest component of
      net rental expense		       111     120     96     66     64     61  
        3,708     6,026     8,285     9,538     7,674     6,990  
     Fixed charges and preferred dividends    

$

 3,708   $ 6,034   $ 8,296   $ 9,538   $ 7,674   $ 7,022  
Ratio of earnings to fixed charges
  and preferred dividends (3)		       2.30     2.02     1.59     1.31     1.38     1.33  
Earnings, excluding interest on deposits(1):    
Income before income tax expense  

 

$

 4,837   $ 6,154   $ 4,932   $ 2,984   $ 2,884   $ 2,369  
Fixed charges       2,034     3,358     5,191     6,248     4,504     3,402  
     

$

 6,871   $ 9,512   $ 10,123   $ 9,232   $ 7,388   $ 5,771  
Preferred dividends (2)    

$

 --   $ 8   $ 11   $ --   $ --   $ 32  
Fixed charges:    
      Interest expense    

$

 3,597   $ 5,906   $ 8,189   $ 9,472   $ 7,610   $ 6,929  
      Less interest on deposits       1,674     2,668     3,094     3,290     3,170     3,588  
      Estimated interest component of
        net rental expense		       111     120     96     66     64     61  
        2,034     3,358     5,191     6,248     4,504     3,402  
     Fixed charges and preferred dividends    

$

 2,034   $ 3,366   $ 5,202   $ 6,248   $ 4,504   $ 3,434  
Ratio of earnings to fixed charges
  and preferred dividends (3)		       3.38     2.83     1.95     1.48     1.64     1.68  

(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)     These computations are included herein in compliance with Securities and Exchange Commission Regulations. However, management believes that fixed charge ratios are not meaningful measures for the business of the Company because of two factors. First, even if there were no change in net income, the ratios would decline with an increase in the proportion of income which is tax-exempt or, conversely, they would increase with a decrease in the proportion of income which is tax-exempt. Second, even if there were no change in net income, the ratios would decline if interest income and interest expense increase by the same amount due to an increase in the level of interest rates or, conversely, they would increase if interest income and interest expense decrease by the same amount due to a decrease in the level of interest rates.