EX-12.(A) 2 f53317exv12wxay.htm EX-12.(A) exv12wxay
EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                                 
 
    Quarter     Nine months  
    ended September 30 ,   ended September 30 ,
(in millions)   2009     2008     2009     2008  
 

Earnings including interest on deposits (1):

                                
Income before income tax expense
   $ 4,671       2,381       14,036       8,077  
Less: Net income from noncontrolling interests
     81       14       202       50  
   
Income before income tax expense and noncontrolling interests
     4,590       2,367       13,834       8,027  
Fixed charges
     2,410       2,451       8,142       7,929  
   
 
     7,000       4,818       21,976       15,956  
   
 
                                
Fixed charges (1):
                                
Interest expense
     2,284       2,393       7,758       7,751  
Estimated interest component of net rental expense
     126       58       384       178  
   
 
     2,410       2,451       8,142       7,929  
   
 
                                
Ratio of earnings to fixed charges (2)
     2.90       1.97       2.70       2.01  
   
 
                                
Earnings excluding interest on deposits:
                                
Income before income tax expense and noncontrolling interests
     4,590       2,367       13,834       8,027  
Fixed charges
     1,505       1,432       5,281       4,253  
   
 
     6,095       3,799       19,115       12,280  
   
 
                                
Fixed charges:
                                
Interest expense
     2,284       2,393       7,758       7,751  
Less: Interest on deposits
     905       1,019       2,861       3,676  
Estimated interest component of net rental expense
     126       58       384       178  
   
 
   $ 1,505       1,432       5,281       4,253  
   
 
                                
Ratio of earnings to fixed charges (2)
     4.05       2.65       3.62       2.89  
   
 
 
(1)   As defined in Item 503(d) of Regulation S-K.
 
(2)   These computations are included herein in compliance with Securities and Exchange Commission regulations. However, management believes that fixed charge ratios are not meaningful measures for the business of the Company because of two factors. First, even if there was no change in net income, the ratios would decline with an increase in the proportion of income which is tax-exempt or, conversely, they would increase with a decrease in the proportion of income which is tax-exempt. Second, even if there was no change in net income, the ratios would decline if interest income and interest expense increase by the same amount due to an increase in the level of interest rates or, conversely, they would increase if interest income and interest expense decrease by the same amount due to a decrease in the level of interest rates.