1 EXHIBIT (12) BANPONCE CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Dollars in thousands) Year Ended December 31, --------------------------------------------------------------------- Second Quarter 1995 1994 1993 1992 1991 1990 Income before income taxes $ 45,124 175,177 132,140 100,145 $ 72,164 $ 72,606 Fixed charges: Interest expense 126,698 351,633 280,008 300,136 387,134 281,561 Estimated interest component of net rental payments 1,392 5,568 4,827 4,691 4,674 3,007 Total fixed charges including interest on deposits 128,090 357,201 284,835 304,826 391,808 284,568 Less: Interest on deposits 84,585 247,726 219,447 253,375 323,717 257,099 Total fixed charges excluding interest on deposits 43,505 109,475 65,388 51,451 68,091 27,469 Income before income taxes and fixed charges (including interest on deposits) $173,214 $532,378 $416,975 $404,971 $463,972 $357,174 Income before income taxes and fixed charges (excluding interest on deposits) $ 88,629 $284,652 $197,528 $151,596 $140,255 $100,075 Preferred stock dividends $ 2,087 $ 4,630 $ 770 $ 770 $ 807 -- Ratio of earnings to fixed charges Including Interest on Deposits 1.4 1.5 1.5 1.3 1.2 1.3 Excluding Interest on Deposits 2.0 2.6 3.0 2.9 2.1 3.6 Ratio of earnings to fixed charges & Preferred Stock Dividends Including Interest on Deposits 1.3 1.5 1.5 1.3 1.2 1.3 Excluding Interest on Deposits 1.9 2.5 3.0 2.9 2.0 3.6