EX-12 2 dex12.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to fixed charges

EXHIBIT 12

STATE STREET CORPORATION

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

 

        Three Months
Ended
March 31,
2009		     Years Ended December 31,  
(Dollars in millions)       2008     2007     2006     2005     2004  

EXCLUDING INTEREST ON DEPOSITS:

              

Pre-tax income from continuing operations, as reported

     $ 614     $ 2,842     $ 1,903     $ 1,771     $ 1,432     $ 1,192  

Share of pre-tax income of unconsolidated entities

       12       34       65       43       16       39  

Fixed charges

       128       983       1,248       1,384       948       481  

Preferred stock dividends and related adjustments

       31       22       —       —       —       —  
                                                 

Adjusted earnings

   (A)   $ 785     $ 3,881     $ 3,216     $ 3,198     $ 2,396     $ 1,712  
                                                 

Interest on short-term borrowings

     $ 49     $ 674     $ 959     $ 1,145     $ 753     $ 315  

Interest on long-term debt, including amortization of debt issuance costs

       47       187       189       140       100       68  

Portion of long-term leases representative of the interest factor(1)

       32       122       100       99       95       98  

Preferred stock dividends and related adjustments

       31       22       —       —       —       —  
                                                 

Fixed charges and preferred stock dividends

   (B)   $ 159     $ 1,005     $ 1,248     $ 1,384     $ 948     $ 481  
                                                 

Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, excluding interest on deposits

   (A)/(B)     4.94 x     3.86 x     2.58 x     2.31 x     2.53 x     3.56 x
                                                 

INCLUDING INTEREST ON DEPOSITS:

              

Pre-tax income from continuing operations, as reported

     $ 614     $ 2,842     $ 1,903     $ 1,771     $ 1,432     $ 1,192  

Share of pre-tax income of unconsolidated entities

       12       34       65       43       16       39  

Fixed charges

       193       2,309       3,546       3,275       2,080       993  

Preferred stock dividends and related adjustments

       31       22       —       —       —       —  
                                                 

Adjusted earnings

   (C)   $ 850     $ 5,207     $ 5,514     $ 5,089     $ 3,528     $ 2,224  
                                                 

Interest on short-term borrowings and deposits

     $ 114     $ 2,000     $ 3,257     $ 3,036     $ 1,885     $ 827  

Interest on long-term debt, including amortization of debt issuance costs

       47       187       189       140       100       68  

Portion of long-term leases representative of the interest factor(1)

       32       122       100       99       95       98  

Preferred stock dividends and related adjustments

       31       22       —       —       —       —  
                                                 

Fixed charges and preferred stock dividends

   (D)   $ 224     $ 2,331     $ 3,546     $ 3,275     $ 2,080     $ 993  
                                                 

Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, including interest on deposits

   (C)/(D)     3.79 x     2.23 x     1.55 x     1.55 x     1.70 x     2.24 x
                                                 

 

(1)

The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in the consolidated statement of income.

STATE STREET CORPORATION

Ratios of Earnings to Fixed Charges

 

        Three Months
Ended
March 31,
2009		     Years Ended December 31,  
(Dollars in millions)       2008     2007     2006     2005     2004  

EXCLUDING INTEREST ON DEPOSITS:

              

Pre-tax income from continuing operations, as reported

     $ 614     $ 2,842     $ 1,903     $ 1,771     $ 1,432     $ 1,192  

Share of pre-tax income of unconsolidated entities

       12       34       65       43       16       39  

Fixed charges

       128       983       1,248       1,384       948       481  
                                                 

Adjusted earnings

   (A)   $ 754     $ 3,859     $ 3,216     $ 3,198     $ 2,396     $ 1,712  
                                                 

Interest on short-term borrowings

     $ 49     $ 674     $ 959     $ 1,145     $ 753     $ 315  

Interest on long-term debt, including amortization of debt issuance costs

       47       187       189       140       100       68  

Portion of long-term leases representative of the interest factor(1)

       32       122       100       99       95       98  
                                                 

Fixed charges

   (B)   $ 128     $ 983     $ 1,248     $ 1,384     $ 948     $ 481  
                                                 

Consolidated ratios of adjusted earnings to fixed charges, excluding interest on deposits

   (A)/(B)     5.89 x     3.93 x     2.58 x     2.31 x     2.53 x     3.56 x
                                                 

INCLUDING INTEREST ON DEPOSITS:

              

Pre-tax income from continuing operations, as reported

     $ 614     $ 2,842     $ 1,903     $ 1,771     $ 1,432     $ 1,192  

Share of pre-tax income of unconsolidated entities

       12       34       65       43       16       39  

Fixed charges

       193       2,309       3,546       3,275       2,080       993  
                                                 

Adjusted earnings

   (C)   $ 819     $ 5,185     $ 5,514     $ 5,089     $ 3,528     $ 2,224  
                                                 

Interest on short-term borrowings and deposits

     $ 114     $ 2,000     $ 3,257     $ 3,036     $ 1,885     $ 827  

Interest on long-term debt, including amortization of debt issuance costs

       47       187       189       140       100       68  

Portion of long-term leases representative of the interest factor(1)

       32       122       100       99       95       98  
                                                 

Fixed charges

   (D)   $ 193     $ 2,309     $ 3,546     $ 3,275     $ 2,080     $ 993  
                                                 

Consolidated ratios of adjusted earnings to fixed charges, including interest on deposits

   (C)/(D)     4.24 x     2.25 x     1.55 x     1.55 x     1.70 x     2.24 x
                                                 

 

(1)

The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in the consolidated statement of income.