EXHIBIT 12 STATE STREET CORPORATION RATIO OF EARNINGS TO FIXED CHARGES - ------------------------------------------------------------------------------------------------------------------------ Six Months Ended Year Ended December 31, June 30, ------------------------------------------------------- (Dollars in millions) 1997 1996 1995 1994 1993 1992 - ------------------------------------------------------------------------------------------------------------------------ (A) Excluding interest on deposits: Earnings: Income before income taxes..................... $ 267 $ 453 $ 370 $ 343 $ 292 $ 271 Fixed charges.................................. 296 477 495 267 184 190 ----- -------- -------- ----- ----- ----- Earnings as adjusted...................... $ 563 $ 930 $ 865 $ 610 $ 476 $ 461 ===== ======== ======== ===== ===== ===== Income before income taxes Pretax income from continuing operations as reported....................... $ 266 $ 447 $ 366 $ 340 $ 291 $ 271 Share of pretax income (loss) of 50% owned subsidiaries not included in above..... 1 6 4 3 1 - ----- -------- -------- ----- ----- ----- Net income as adjusted.................... $ 267 $ 453 $ 370 $ 343 $ 292 $ 271 ===== ======== ======== ===== ===== ===== Fixed charges: Interest on other borrowings................... $ 266 $ 452 $ 482 $ 254 $ 170 $ 173 Interest on long-term debt including amortization of debt issue costs............. 25 15 9 9 10 13 Portion of rents representative of the interest factor in long term lease........... 5 10 4 4 4 4 ----- -------- -------- ----- ----- ----- Fixed charges.................................. $ 296 $ 477 $ 495 $ 267 $ 184 $ 190 ===== ======== ======== ===== ===== ===== Ratio of earnings to fixed charges................... 1.90X 1.95x 1.75x 2.29x 2.59x 2.43x (B) Including interest on deposits: Adjusted earnings from (A) above............... $ 563 $ 930 865 $ 610 $ 476 $ 461 Add interest on deposits....................... 228 425 416 281 214 263 ----- -------- -------- ----- ----- ----- Earnings as adjusted...................... $ 791 $ 1,355 $ 1,281 $ 891 $ 690 $ 724 ===== ======== ======== ===== ===== ===== Fixed charges: Fixed charges from (A) above................... $ 296 $ 477 495 $ 267 $ 184 $ 190 Interest on deposits........................... 228 425 416 281 214 263 ----- -------- -------- ----- ----- ----- Adjusted fixed charges.................... $ 524 $ 902 $ 911 $ 548 $ 398 $ 453 ===== ======== ======== ===== ===== ===== Adjusted earnings to adjusted fixed charges.......... 1.51X 1.50x 1.41x 1.63x 1.74x 1.60x