EXHIBIT 12.2
CITIZENS FINANCIAL GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
Three Months | Nine Months | Year Ended December 31, | |||||||||||||||||||||||||
(dollars in millions) | Ended September 30, 2018 | 2017 | 2016 | 2015 | 2014 | 2013(2) | |||||||||||||||||||||
Computation of Earnings: | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense | $576 | $1,626 | $1,912 | $1,534 | $1,263 | $1,268 | ($3,468 | ) | |||||||||||||||||||
Fixed charges | 350 | 910 | 813 | 573 | 510 | 417 | 499 | ||||||||||||||||||||
Total Adjusted Earnings | $926 | $2,536 | $2,725 | $2,107 | $1,773 | $1,685 | ($2,969 | ) | |||||||||||||||||||
Computation of Fixed Charges: | |||||||||||||||||||||||||||
Interest expense | $329 | $856 | $747 | $508 | $452 | $363 | $443 | ||||||||||||||||||||
Portion of net rental expense deemed representative of interest (1) | 14 | 40 | 52 | 51 | 51 | 54 | 56 | ||||||||||||||||||||
Preferred distribution | 7 | 14 | 14 | 14 | 7 | — | — | ||||||||||||||||||||
Total Fixed Charges | $350 | $910 | $813 | $573 | $510 | $417 | $499 | ||||||||||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Dividends | 2.6 | 2.8 | 3.3 | 3.7 | 3.5 | 4.0 | (5.9 | ) |
(1) The portion of rents shown as representative of the interest factor is one-quarter of total net operating lease expenses.
(2) The deficiency for this period was $3,468 million due in part to a goodwill impairment charge of $4,435 million ($4,080 million after tax).