EX-12.2 3 a122compratioearningscombf.htm EXHIBIT 12.2
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).