EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Three Nine Months Months Ended Ended September 30 September 30 ----------------------------- (Dollars in Millions) 1998 1998 ==================================================================================================================== EARNINGS 1. Net income .................................................................... $ 329.1 $ 978.2 2. Applicable income taxes ....................................................... 190.4 567.6 ----------------------------- 3. Net income before taxes (1 + 2) ............................................... $ 519.5 $ 1,545.8 ============================= 4. Fixed charges: a. Interest expense excluding interest on deposits ............................. $ 252.1 $ 699.6 b. Portion of rents representative of interest and amortization of debt expense 11.2 33.2 ----------------------------- c. Fixed charges excluding interest on deposits (4a + 4b) ...................... 263.3 732.8 d. Interest on deposits ........................................................ 351.3 1,058.6 ----------------------------- e. Fixed charges including interest on deposits (4c + 4d) ...................... $ 614.6 $ 1,791.4 ============================= 5. Amortization of interest capitalized .......................................... $ -- $ -- 6. Earnings excluding interest on deposits (3 + 4c + 5) .......................... 782.8 2,278.6 7. Earnings including interest on deposits (3 + 4e + 5) .......................... 1,134.1 3,337.2 8. Fixed charges excluding interest on deposits (4c) ............................. 263.3 732.8 9. Fixed charges including interest on deposits (4e) ............................. 614.6 1,791.4 RATIO OF EARNINGS TO FIXED CHARGES 10. Excluding interest on deposits (line 6/line 8) ................................ 2.97 3.11 11. Including interest on deposits (line 7/line 9) ................................ 1.85 1.86 ==================================================================================================================== U.S. Bancorp 31