EX-99 4 exh99ab.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES EXHIBIT 99 (a) WASHINGTON MUTUAL INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Three Months Ended Six Months Ended June 30, June 30, ------------------------------------------ 2001 2000 2001 2000 ------------------------------------------------------------------------------------------------------ (in millions) Earnings, Including Interest on Deposits (1): Income before income tax expense $ 1,267 $ 773 $ 2,281 $ 1,495 Fixed charges 2,283 2,282 4,859 4,514 ------------------------------------------ $ 3,550 $ 3,055 $ 7,140 $ 6,009 ========================================== Fixed charges (1): Interest expense $ 2,263 $ 2,270 $ 4,818 $ 4,489 Estimated interest component of net rental expense 20 12 41 25 ------------------------------------------ $ 2,283 $ 2,282 $ 4,859 $ 4,514 ========================================== Ratio of earnings, including interest on deposits, to fixed charges (2) 1.56 1.34 1.47 1.33 ========================================== Earnings, Excluding Interest on Deposits: Income before income tax expense $ 1,267 $ 773 $ 2,281 $ 1,495 Fixed charges 1,460 1,479 3,149 2,923 ------------------------------------------ $ 2,727 $ 2,252 $ 5,430 $ 4,418 ========================================== Fixed charges: Interest expense $ 2,263 $ 2,270 $ 4,818 $ 4,489 Less interest on deposits (823) (803) (1,710) (1,591) Estimated interest component of net rental expense 20 12 41 25 ------------------------------------------ $ 1,460 $ 1,479 $ 3,149 $ 2,923 ========================================== Ratio of earnings, excluding interest on deposits, to fixed charges (2) 1.87 1.52 1.72 1.51 ========================================== (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 was 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 was 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 99 (b) WASHINGTON MUTUAL INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS -------------------------------------------------------------------------------------------------------- Three Months Ended Six Months Ended June 30, June 30, ------------------------------------------------- 2001 2000 2001 2000 -------------------------------------------------------------------------------------------------------- (in millions) Earnings, Including Interest on Deposits (1): Income before income tax expense $ 1,267 $ 773 $ 2,281 $ 1,495 Fixed charges 2,283 2,282 4,859 4,514 ---------------------------------------------- $ 3,550 $ 3,055 $ 7,140 $ 6,009 ============================================== Preferred dividends (2) $ 3 $ - $ 5 $ - Fixed charges (1): Interest expense $ 2,263 $ 2,270 $ 4,818 $ 4,489 Estimated interest component of net rental expense 20 12 41 25 ---------------------------------------------- 2,283 2,282 4,859 4,514 ---------------------------------------------- Fixed charges and preferred dividends $ 2,286 $ 2,282 $ 4,864 $ 4,514 ============================================== Ratio of earnings, including interest on deposits, to fixed charges and preferred dividends (3) 1.55 1.34 1.47 1.33 ============================================== Earnings, Excluding Interest on Deposits: Income before income tax expense $ 1,267 $ 773 $ 2,281 $ 1,495 Fixed charges 1,460 1,479 3,149 2,923 ---------------------------------------------- $ 2,727 $ 2,252 $ 5,430 $ 4,418 ============================================== Preferred dividends (2) $ 3 $ - $ 5 $ - Fixed charges: Interest expense $ 2,263 $ 2,270 $ 4,818 $ 4,489 Less interest on deposits (823) (803) (1,710) (1,591) Estimated interest component of net rental expense 20 12 41 25 ---------------------------------------------- 1,460 1,479 3,149 2,923 ---------------------------------------------- Fixed charges and preferred dividends $ 1,463 $ 1,479 $ 3,154 $ 2,923 ============================================== Ratio of earnings, excluding interest on deposits, to fixed charges and preferred dividends (3) 1.86 1.52 1.72 1.51 ============================================== (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 the 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 was 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 was 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.