1 Exhibit 12 POPULAR, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Dollars in thousands) Period ended June 30, Year Ended December 31, 1999 1998 1997 1996 1995 1994 Income before income taxes 170,377 307,019 284,026 256,027 206,130 175,177 Fixed charges: Interest expense 422,506 778,691 707,348 591,540 521,624 351,633 Estimated interest component of net rental payments 4,409 8,817 7,779 7,065 6,012 5,568 Total fixed charges including interest on deposits 426,915 787,508 715,127 598,605 527,636 357,201 Less: Interest on deposits 220,970 411,492 366,528 350,221 329,783 247,726 Total fixed charges excluding interest on deposits 205,945 376,016 348,599 248,384 197,853 109,475 Income before income taxes and fixed charges (including interest on deposits) $597,292 $1,094,527 $999,153 $854,632 $733,766 $532,378 Income before income taxes and fixed charges (excluding interest on deposits) $376,322 $ 683,035 $632,625 $504,411 $403,983 $284,652 Preferred stock dividends 4,175 8,350 8,350 8,350 8,350 4,630 Ratios of earnings to fixed charges Including interest on Deposits 1.4 1.4 1.4 1.4 1.4 1.5 Excluding interest on Deposits 1.8 1.8 1.8 2.0 2.0 2.6 Ratio of earnings to fixed charges & Preferred Stock Dividends Including interest on Deposits 1.4 1.4 1.4 1.4 1.4 1.5 Excluding interest on Deposits 1.8 1.8 1.8 2.0 2.0 2.5 Preferred Stock Dividends 4,175 8,350 8,350 8,350 8,350 4,630 Rental expense 13,226 26,451 23,336 21,196 18,037 16,705