EXHIBIT 12
STATE STREET CORPORATION
Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends
Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||
EXCLUDING INTEREST ON DEPOSITS: | ||||||||||||||||||||||||
Pre-tax income from continuing operations, as reported | $ | 1,360 | $ | 2,120 | $ | 2,298 | $ | 2,437 | $ | 2,666 | $ | 2,747 | ||||||||||||
Share of pre-tax income (loss) of unconsolidated entities | 599 | 349 | (700 | ) | (10 | ) | 1 | (15 | ) | |||||||||||||||
Fixed charges | 187 | 334 | 321 | 318 | 365 | 370 | ||||||||||||||||||
Adjusted earnings | (A) | $ | 2,146 | $ | 2,803 | $ | 1,919 | $ | 2,745 | $ | 3,032 | $ | 3,102 | |||||||||||
Interest on short-term borrowings | $ | 5 | $ | 8 | $ | 7 | $ | 6 | $ | 60 | $ | 73 | ||||||||||||
Interest on long-term debt, including amortization of debt issuance costs | 138 | 240 | 219 | 206 | 184 | 176 | ||||||||||||||||||
Portion of long-term leases representative of the interest factor(1) | 44 | 86 | 95 | 106 | 121 | 121 | ||||||||||||||||||
Preferred stock dividends and related adjustments(2) | 110 | 171 | 112 | 61 | 33 | 39 | ||||||||||||||||||
Fixed charges and preferred stock dividends | (B) | $ | 297 | $ | 505 | $ | 433 | $ | 379 | $ | 398 | $ | 409 | |||||||||||
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, excluding interest on deposits | (A)/(B) | 7.23x | 5.55x | 4.43x | 7.24x | 7.62x | 7.58x | |||||||||||||||||
INCLUDING INTEREST ON DEPOSITS: | ||||||||||||||||||||||||
Pre-tax income from continuing operations, as reported | $ | 1,360 | $ | 2,120 | $ | 2,298 | $ | 2,437 | $ | 2,666 | $ | 2,747 | ||||||||||||
Share of pre-tax income (loss) of unconsolidated entities | 599 | 349 | (700 | ) | (10 | ) | 1 | (15 | ) | |||||||||||||||
Fixed charges | 244 | 419 | 418 | 416 | 458 | 536 | ||||||||||||||||||
Adjusted earnings | (C) | $ | 2,203 | $ | 2,888 | $ | 2,016 | $ | 2,843 | $ | 3,125 | $ | 3,268 | |||||||||||
Interest on short-term borrowings and deposits | $ | 62 | $ | 93 | $ | 104 | $ | 104 | $ | 153 | $ | 239 | ||||||||||||
Interest on long-term debt, including amortization of debt issuance costs | 138 | 240 | 219 | 206 | 184 | 176 | ||||||||||||||||||
Portion of long-term leases representative of the interest factor(1) | 44 | 86 | 95 | 106 | 121 | 121 | ||||||||||||||||||
Preferred stock dividends and related adjustments(2) | 110 | 171 | 112 | 61 | 33 | 39 | ||||||||||||||||||
Fixed charges and preferred stock dividends | (D) | $ | 354 | $ | 590 | $ | 530 | $ | 477 | $ | 491 | $ | 575 | |||||||||||
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, including interest on deposits | (C)/(D) | 6.22x | 4.89x | 3.80x | 5.96x | 6.36x | 5.68x |
(1) The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in our consolidated statement of income.
(2) Preferred dividends and related adjustments, including accretion, were adjusted to represent pre-tax earnings that would be required to cover dividend and accretion requirements.
STATE STREET CORPORATION
Ratios of Earnings to Fixed Charges
Six Months Ended June 30, | Twelve Months Ended December 31, | |||||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||
EXCLUDING INTEREST ON DEPOSITS: | ||||||||||||||||||||||||
Pre-tax income from continuing operations, as reported | $ | 1,360 | $ | 2,120 | $ | 2,298 | $ | 2,437 | $ | 2,666 | $ | 2,747 | ||||||||||||
Share of pre-tax income (loss) of unconsolidated entities | 599 | 349 | (700 | ) | (10 | ) | 1 | (15 | ) | |||||||||||||||
Fixed charges | 187 | 334 | 321 | 318 | 365 | 370 | ||||||||||||||||||
Adjusted earnings | (A) | $ | 2,146 | $ | 2,803 | $ | 1,919 | $ | 2,745 | $ | 3,032 | $ | 3,102 | |||||||||||
Interest on short-term borrowings | $ | 5 | $ | 8 | $ | 7 | $ | 6 | $ | 60 | $ | 73 | ||||||||||||
Interest on long-term debt, including amortization of debt issuance costs | 138 | 240 | 219 | 206 | 184 | 176 | ||||||||||||||||||
Portion of long-term leases representative of the interest factor(1) | 44 | 86 | 95 | 106 | 121 | 121 | ||||||||||||||||||
Fixed charges | (B) | $ | 187 | $ | 334 | $ | 321 | $ | 318 | $ | 365 | $ | 370 | |||||||||||
Consolidated ratios of adjusted earnings to fixed charges, excluding interest on deposits | (A)/(B) | 11.48x | 8.39x | 5.98x | 8.63x | 8.31x | 8.38x | |||||||||||||||||
INCLUDING INTEREST ON DEPOSITS: | ||||||||||||||||||||||||
Pre-tax income from continuing operations, as reported | $ | 1,360 | $ | 2,120 | $ | 2,298 | $ | 2,437 | $ | 2,666 | $ | 2,747 | ||||||||||||
Share of pre-tax income (loss) of unconsolidated entities | 599 | 349 | (700 | ) | (10 | ) | 1 | (15 | ) | |||||||||||||||
Fixed charges | 244 | 419 | 418 | 416 | 458 | 536 | ||||||||||||||||||
Adjusted earnings | (C) | $ | 2,203 | $ | 2,888 | $ | 2,016 | $ | 2,843 | $ | 3,125 | $ | 3,268 | |||||||||||
Interest on short-term borrowings and deposits | $ | 62 | $ | 93 | $ | 104 | $ | 104 | $ | 153 | $ | 239 | ||||||||||||
Interest on long-term debt, including amortization of debt issuance costs | 138 | 240 | 219 | 206 | 184 | 176 | ||||||||||||||||||
Portion of long-term leases representative of the interest factor(1) | 44 | 86 | 95 | 106 | 121 | 121 | ||||||||||||||||||
Fixed charges | (D) | $ | 244 | $ | 419 | $ | 418 | $ | 416 | $ | 458 | $ | 536 | |||||||||||
Consolidated ratios of adjusted earnings to fixed charges, including interest on deposits | (C)/(D) | 9.03x | 6.89x | 4.82x | 6.83x | 6.82x | 6.10x |
(1) The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in our consolidated statement of income.