State Street (STT) 10-Q 2011 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, 2011		Years Ended December 31,
				2010		2009		2008		2007		2006
EXCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	2,004	$	2,086	$	2,525	$	2,842	$	1,903	$	1,771
Share of pre-tax income of unconsolidated entities			28		67		43		34		65		43
Fixed charges			353		636		607		983		1,248		1,384
Adjusted earnings	(A)	$	2,385	$	2,789	$	3,175	$	3,859	$	3,216	$	3,198
Interest on short-term borrowings		$	74	$	257	$	218	$	674	$	959	$	1,145
Interest on long-term debt, including amortization of debt issuance costs			184		235		251		187		189		140
Portion of long-term leases representative of the interest factor(1)			95		144		138		122		100		99
Preferred stock dividends and related adjustments(2)			17		—		226		34		—		—
Fixed charges and preferred stock dividends	(B)	$	370	$	636	$	833	$	1,017	$	1,248	$	1,384
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, excluding interest on deposits	(A)/(B)		6.45 x		4.39 x		3.81 x		3.79 x		2.58 x		2.31 x
INCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	2,004	$	2,086	$	2,525	$	2,842	$	1,903	$	1,771
Share of pre-tax income of unconsolidated entities			28		67		43		34		65		43
Fixed charges			507		849		802		2,309		3,546		3,275
Adjusted earnings	(C)	$	2,539	$	3,002	$	3,370	$	5,185	$	5,514	$	5,089
Interest on short-term borrowings and deposits		$	228	$	470	$	413	$	2,000	$	3,257	$	3,036
Interest on long-term debt, including amortization of debt issuance costs			184		235		251		187		189		140
Portion of long-term leases representative of the interest factor(1)			95		144		138		122		100		99
Preferred stock dividends and related adjustments(2)			17		—		226		34		—		—
Fixed charges and preferred stock dividends	(D)	$	524	$	849	$	1,028	$	2,343	$	3,546	$	3,275
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, including interest on deposits	(C)/(D)		4.85 x		3.54 x		3.28 x		2.21 x		1.55 x		1.55 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 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

(Dollars in millions)		Nine Months Ended September 30, 2011		Years Ended December 31,
				2010		2009		2008		2007		2006
EXCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	2,004	$	2,086	$	2,525	$	2,842	$	1,903	$	1,771
Share of pre-tax income of unconsolidated entities			28		67		43		34		65		43
Fixed charges			353		636		607		983		1,248		1,384
Adjusted earnings	(A)	$	2,385	$	2,789	$	3,175	$	3,859	$	3,216	$	3,198
Interest on short-term borrowings		$	74	$	257	$	218	$	674	$	959	$	1,145
Interest on long-term debt, including amortization of debt issuance costs			184		235		251		187		189		140
Portion of long-term leases representative of the interest factor(1)			95		144		138		122		100		99
Fixed charges	(B)	$	353	$	636	$	607	$	983	$	1,248	$	1,384
Consolidated ratios of adjusted earnings to fixed charges, excluding interest on deposits	(A)/(B)		6.76 x		4.39x		5.23x		3.93x		2.58x		2.31x
INCLUDING INTEREST ON DEPOSITS:
Pre-tax income from continuing operations, as reported		$	2,004	$	2,086	$	2,525	$	2,842	$	1,903	$	1,771
Share of pre-tax income of unconsolidated entities			28		67		43		34		65		43
Fixed charges			507		849		802		2,309		3,546		3,275
Adjusted earnings	(C)	$	2,539	$	3,002	$	3,370	$	5,185	$	5,514	$	5,089
Interest on short-term borrowings and deposits		$	228	$	470	$	413	$	2,000	$	3,257	$	3,036
Interest on long-term debt, including amortization of debt issuance costs			184		235		251		187		189		140
Portion of long-term leases representative of the interest factor(1)			95		144		138		122		100		99
Fixed charges	(D)	$	507	$	849	$	802	$	2,309	$	3,546	$	3,275
Consolidated ratios of adjusted earnings to fixed charges, including interest on deposits	(C)/(D)		5.01x		3.54x		4.20x		2.25x		1.55x		1.55x

⁽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.