1 EXHIBIT 12 BANPONCE CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Dollars in thousands) Year Ended December 31, First ----------------------------------------------------------------- Quarter 1994 1993 1992 1991 1990 1989 Income before income taxes $ 38,667 $132,140 $100,145 $ 72,164 $ 72,606 $ 67,695 Fixed charges: Interest expense 73,628 280,008 300,135 387,134 281,561 307,273 Estimated interest component of net rental payments 1,207 4,827 4,691 4,674 3,007 2,483 Total fixed charges including interest on deposits 74,835 284,835 304,826 391,808 284,568 309,756 Less: interest in deposits 54,179 219,447 253,375 323,717 257,099 261,474 Total fixed charges excluding interest on deposits 20,656 65,388 51,451 68,091 27,469 48,282 Income before income taxes and fixed charges (including interest on deposits) $113,502 $416,975 $404,971 $463,972 $357,174 $377,451 Income before income taxes and fixed charges (excluding interest on deposits) $ 59,323 $197,528 $151,596 $140,255 $100,075 $115,977 Preferred stock dividends $ 193 $ 770 $ 770 $ 807 - - Ratio of earnings to fixed charges Including Interest on Deposits 1.5 1.5 1.3 1.2 1.3 1.2 Excluding Interest on Depostis 2.9 3.0 2.9 2.1 3.6 2.4 Ratio of earnings to fixed charges & Preferred Stock Dividends Including Interest on Depostis 1.5 1.5 1.3 1.2 1.3 1.2 Excluding Interest on Deposits 2.8 3.0 2.9 2.0 3.6 2.4