RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
| Year Ended December 31, | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted | |||||||||||||||||||
| 2007(1) | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
| (dollars in millions) | |||||||||||||||||||
| Net income (loss) before cumulative effect of change in accounting principle | $ | (3,094 | ) | $ | 2,327 | $ | 2,172 | $ | 2,603 | $ | 4,809 | ||||||||
| Add: Income tax expense (benefit) |
(2,883 | ) | (45 | ) | 358 | 609 | 2,198 | ||||||||||||
| Minority interests in earnings of consolidated subsidiaries | (8 | ) | 58 | 96 | 129 | 157 | |||||||||||||
| Low-income housing tax credit partnerships | 469 | 407 | 320 | 282 | 199 | ||||||||||||||
| Total interest expense | 38,482 | 37,270 | 29,899 | 26,566 | 26,509 | ||||||||||||||
| Interest factor in rental expenses | 7 | 6 | 6 | 6 | 5 | ||||||||||||||
| Earnings, as adjusted | $ | 32,973 | $ | 40,023 | $ | 32,851 | $ | 30,195 | $ | 33,877 | |||||||||
| Fixed charges: Total interest expense |
$ | 38,482 | $ | 37,270 | $ | 29,899 | $ | 26,566 | $ | 26,509 | |||||||||
| Interest factor in rental expenses | 7 | 6 | 6 | 6 | 5 | ||||||||||||||
| Capitalized interest | — | — | — | 1 | — | ||||||||||||||
| Preferred stock dividends(2) | 398 | 270 | 260 | 260 | 315 | ||||||||||||||
| Total fixed charges including preferred stock dividends | $ | 38,887 | $ | 37,546 | $ | 30,165 | $ | 26,833 | $ | 26,829 | |||||||||
| Ratio of earnings to combined fixed charges and preferred stock dividends(3) | — | 1.07 | 1.09 | 1.13 | 1.26 | ||||||||||||||
(1) For the Ratio of earnings to combined fixed charges and preferred stock dividends to equal 1.00, Earnings, as adjusted must increase by $5.9 billion.
(2) Preferred stock dividends represent pre-tax earnings required to cover any preferred stock dividend requirements computed using our effective tax rate, whenever there is an income tax provision, for the relevant periods.
(3) Ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing Earnings, as adjusted by Total fixed charges including preferred stock dividends.