EXHIBIT 12 STATE STREET CORPORATION RATIO OF EARNINGS TO FIXED CHARGES THREE MONTHS YEAR ENDED DECEMBER 31, ENDED MARCH 31, ---------------------------------- 1998 1997 1996 1995 1994 1993 --------------- ------ ------ ------ ---- ---- (DOLLARS IN MILLIONS) (A) Excluding interest on deposits: Earnings: Income before income taxes.................... $161 $ 568 $ 453 $ 370 $343 $292 Fixed charges............. 180 613 477 495 267 184 ---- ------ ------ ------ ---- ---- Earnings as adjusted..... $341 $1,181 $ 930 $ 865 $610 $476 ==== ====== ====== ====== ==== ==== Income before income taxes Pretax income from continuing operations as reported................. $160 $ 564 $ 447 $ 366 $340 $291 Share of pretax income (loss) of 50% owned subsidiaries not included in above................. 1 4 6 4 3 1 ---- ------ ------ ------ ---- ---- Net income as adjusted... $161 $ 568 $ 453 $ 370 $343 $292 ==== ====== ====== ====== ==== ==== Fixed charges: Interest on other borrowings............... $152 $ 548 $ 452 $ 482 $254 $170 Interest on long-term debt including amortization of debt issue costs......... 15 55 15 9 9 10 Portion of rents representative of the interest factor in long term lease............... 13 10 10 4 4 4 ---- ------ ------ ------ ---- ---- Fixed charges............ $180 $ 613 $ 477 $ 495 $267 $184 ==== ====== ====== ====== ==== ==== Ratio of earnings to fixed charges.................. 1.89x 1.93x 1.95x 1.75x 2.29x 2.59x (B) Including interest on deposits: Adjusted earnings from (A) above.................... $341 $1,181 $ 930 $ 865 $610 $476 Add interest on deposits.. 154 512 425 416 281 214 ---- ------ ------ ------ ---- ---- Earnings as adjusted...... $495 $1,693 $1,355 $1,281 $891 $690 ==== ====== ====== ====== ==== ==== Fixed Charges: Fixed charges from (A) above.................... $180 $ 613 $ 477 $ 495 $267 $184 Interest on deposits...... 154 512 425 416 281 214 ---- ------ ------ ------ ---- ---- Adjusted fixed charges.... $334 $1,125 $ 902 $ 911 $548 $398 ==== ====== ====== ====== ==== ==== Adjusted earnings to adjusted fixed charges... 1.48x 1.50x 1.50x 1.41x 1.63x 1.74x