EXHIBIT 12 STATE STREET CORPORATION RATIO OF EARNINGS TO FIXED CHARGES - ------------------------------------------------------------------------------------------------------------------------ Nine Months Ended Year Ended December 31, September 30, ------------------------------------------------------- (Dollars in millions) 1997 1996 1995 1994 1993 1992 - ------------------------------------------------------------------------------------------------------------------------ (A) Excluding interest on deposits: Earnings: Income before income taxes.................... $ 420 $ 453 $ 370 $ 343 $ 292 $ 271 Fixed charges................................. 452 477 495 267 184 190 ------ -------- -------- ----- ----- ----- Earnings as adjusted..................... $ 872 $ 930 $ 865 $ 610 $ 476 $ 461 ====== ======== ======== ===== ===== ===== Income before income taxes Pretax income from continuing operations as reported...................... $ 417 $ 447 $ 366 $ 340 $ 291 $ 271 Share of pretax income of 50% owned subsidiaries not included in above.......... 3 6 4 3 1 - ------ -------- -------- ----- ----- ----- Net income as adjusted................... $ 420 $ 453 $ 370 $ 343 $ 292 $ 271 ====== ======== ======== ===== ===== ===== Fixed charges: Interest on other borrowings.................. $ 404 $ 452 $ 482 $ 254 $ 170 $ 173 Interest on long-term debt including amortization of debt issue costs............ 40 15 9 9 10 13 Portion of rents representative of the interest factor in long term lease.......... 8 10 4 4 4 4 ------ -------- -------- ----- ----- ----- Fixed charges................................. $ 452 $ 477 $ 495 $ 267 $ 184 $ 190 ====== ======== ======== ===== ===== ===== Ratio of earnings to fixed charges.................. 1.93x 1.95x 1.75x 2.29x 2.59x 2.43x (B) Including interest on deposits: Adjusted earnings from (A) above.............. $ 872 $ 930 865 $ 610 $ 476 $ 461 Add interest on deposits...................... 363 425 416 281 214 263 ------ -------- -------- ----- ----- ----- Earnings as adjusted..................... $1,235 $ 1,355 $ 1,281 $ 891 $ 690 $ 724 ====== ======== ======== ===== ===== ===== Fixed charges: Fixed charges from (A) above.................. $ 452 $ 477 495 $ 267 $ 184 $ 190 Interest on deposits.......................... 363 425 416 281 214 263 ------ -------- -------- ----- ----- ----- Adjusted fixed charges................... $ 815 $ 902 $ 911 $ 548 $ 398 $ 453 ====== ======== ======== ===== ===== ===== Adjusted earnings to adjusted fixed charges......... 1.52x 1.50x 1.41x 1.63x 1.74x 1.60x