State Street (STT) 10-Q 2009 Q3 Quarterly report

EXHIBIT 12

STATE STREET CORPORATION

Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends

(Dollars in millions)		Nine Months Ended September 30, 2009			Years Ended December 31,
					2008			2007			2006			2005			2004
EXCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,845		$	2,842		$	1,903		$	1,771		$	1,432		$	1,192
Share of pre-tax income of unconsolidated entities			49			34			65			43			16			39
Fixed charges			446			983			1,248			1,384			948			481
Adjusted earnings	(A)	$	2,340		$	3,859		$	3,216		$	3,198		$	2,396		$	1,712
Interest on short-term borrowings		$	162		$	674		$	959		$	1,145		$	753		$	315
Interest on long-term debt, including amortization of debt issuance costs			185			187			189			140			100			68
Portion of long-term leases representative of the interest factor(1)			99			122			100			99			95			98
Preferred stock dividends and related adjustments(2)			226			34			—			—			—			—
Fixed charges and preferred stock dividends	(B)	$	672		$	1,017		$	1,248		$	1,384		$	948		$	481
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, excluding interest on deposits	(A)/(B)		3.48	x		3.79	x		2.58	x		2.31	x		2.53	x		3.56	x
INCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,845		$	2,842		$	1,903		$	1,771		$	1,432		$	1,192
Share of pre-tax income of unconsolidated entities			49			34			65			43			16			39
Fixed charges			601			2,309			3,546			3,275			2,080			993
Adjusted earnings	(C)	$	2,495		$	5,185		$	5,514		$	5,089		$	3,528		$	2,224
Interest on short-term borrowings and deposits		$	317		$	2,000		$	3,257		$	3,036		$	1,885		$	827
Interest on long-term debt, including amortization of debt issuance costs			185			187			189			140			100			68
Portion of long-term leases representative of the interest factor(1)			99			122			100			99			95			98
Preferred stock dividends and related adjustments(2)			226			34			—			—			—			—
Fixed charges and preferred stock dividends	(D)	$	827		$	2,343		$	3,546		$	3,275		$	2,080		$	993
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, including interest on deposits	(C)/(D)		3.02	x		2.21	x		1.55	x		1.55	x		1.70	x		2.24	x

⁽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 the consolidated statement of income.

⁽²⁾ Preferred dividends, 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

(Dollars in millions)		Nine Months Ended September 30, 2009			Years Ended December 31,
					2008			2007			2006			2005			2004
EXCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,845		$	2,842		$	1,903		$	1,771		$	1,432		$	1,192
Share of pre-tax income of unconsolidated entities			49			34			65			43			16			39
Fixed charges			446			983			1,248			1,384			948			481
Adjusted earnings	(A)	$	2,340		$	3,859		$	3,216		$	3,198		$	2,396		$	1,712
Interest on short-term borrowings		$	162		$	674		$	959		$	1,145		$	753		$	315
Interest on long-term debt, including amortization of debt issuance costs			185			187			189			140			100			68
Portion of long-term leases representative of the interest factor(1)			99			122			100			99			95			98
Fixed charges	(B)	$	446		$	983		$	1,248		$	1,384		$	948		$	481
Consolidated ratios of adjusted earnings to fixed charges, excluding interest on deposits	(A)/(B)		5.25	x		3.93	x		2.58	x		2.31	x		2.53	x		3.56	x
INCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	1,845		$	2,842		$	1,903		$	1,771		$	1,432		$	1,192
Share of pre-tax income of unconsolidated entities			49			34			65			43			16			39
Fixed charges			601			2,309			3,546			3,275			2,080			993
Adjusted earnings	(C)	$	2,495		$	5,185		$	5,514		$	5,089		$	3,528		$	2,224
Interest on short-term borrowings and deposits		$	317		$	2,000		$	3,257		$	3,036		$	1,885		$	827
Interest on long-term debt, including amortization of debt issuance costs			185			187			189			140			100			68
Portion of long-term leases representative of the interest factor(1)			99			122			100			99			95			98
Fixed charges	(D)	$	601		$	2,309		$	3,546		$	3,275		$	2,080		$	993
Consolidated ratios of adjusted earnings to fixed charges, including interest on deposits	(C)/(D)		4.15	x		2.25	x		1.55	x		1.55	x		1.70	x		2.24	x

⁽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 the consolidated statement of income.