EXHIBIT 12.2

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

 

 

Year Ended December 31,

 

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

 

 

(dollars in millions)

 

Earnings, including interest on deposits(1):

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before
income taxes

 

$

4,770

 

$

5,379

 

$

3,931

 

$

5,993

 

$

5,977

 

Fixed charges

 

11,967

 

7,871

 

4,403

 

4,687

 

5,842

 

 

 

$

16,737

 

$

13,250

 

$

8,334

 

$

10,680

 

$

11,819

 

Preferred dividend requirement

 

$

8

 

$

–

 

$

–

 

$

–

 

$

5

 

Ratio of income from continuing operations
before income taxes to net income from continuing operations

 

1.53

 

1.58

 

1.61

 

1.59

 

1.59

 

Preferred dividends(2)

 

$

12

 

$

–

 

$

–

 

$

–

 

$

8

 

Fixed charges(1):

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

11,786

 

$

7,702

 

$

4,234

 

$

4,534

 

$

5,726

 

Estimated interest component of net rental expense

 

181

 

169

 

169

 

153

 

116

 

 

 

11,967

 

7,871

 

4,403

 

4,687

 

5,842

 

Fixed charges and preferred dividends

 

$

11,979

 

$

7,871

 

$

4,403

 

$

4,687

 

$

5,850

 

Ratio of earnings to fixed charges and preferred dividends

 

1.40

 

1.68

 

1.89

 

2.28

 

2.02

 

Earnings, excluding interest on deposits(1):

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before
income taxes

 

$

4,770

 

$

5,379

 

$

3,931

 

$

5,993

 

$

5,977

 

Fixed charges

 

5,704

 

4,143

 

2,360

 

2,522

 

3,181

 

 

 

$

10,474

 

$

9,522

 

$

6,291

 

$

8,515

 

$

9,158

 

Preferred dividends(2)

 

$

12

 

$

–

 

$

–

 

$

–

 

$

8

 

Fixed charges(1)

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

11,786

 

$

7,702

 

$

4,234

 

$

4,534

 

$

5,726

 

Less: interest on deposits

 

(6,263

)

(3,728

)

(2,043

)

(2,165

)

(2,661

)

Estimated interest component of net rental expense

 

181

 

169

 

169

 

153

 

116

 

 

 

5,704

 

4,143

 

2,360

 

2,522

 

3,181

 

Fixed charges and preferred dividends

 

$

5,716

 

$

4,143

 

$

2,360

 

$

2,522

 

$

3,189

 

Ratio of earnings to fixed charges and preferred dividends

 

1.83

 

2.30

 

2.67

 

3.38

 

2.87

 

(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.