EX-12.(A) 3 f56107exv12wxay.htm EX-12.(A) exv12wxay
EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                                 
            Quarter             Six months  
            ended June 30,             ended June 30,  
(in millions)   2010     2009     2010     2009  
     
Earnings including interest on deposits (1):
                               
Income before income tax expense
  $ 4,659       4,724       8,660       9,365  
Less: Net income from noncontrolling interests
    83       77       136       121  
     
Income before income tax expense and noncontrolling interests
    4,576       4,647       8,524       9,244  
Fixed charges
    2,131       2,665       4,332       5,732  
     
 
    6,707       7,312       12,856       14,976  
     
 
                               
Fixed charges (1):
                               
Interest expense
    2,023       2,537       4,101       5,474  
Estimated interest component of net rental expense
    108       128       231       258  
     
 
    2,131       2,665       4,332       5,732  
     
 
                               
Ratio of earnings to fixed charges (2)
    3.15       2.74       2.97       2.61  
     
 
                               
Earnings excluding interest on deposits:
                               
Income before income tax expense and noncontrolling interests
    4,576       4,647       8,524       9,244  
Fixed charges
    1,417       1,708       2,883       3,776  
     
 
    5,993       6,355       11,407       13,020  
     
 
                               
Fixed charges:
                               
Interest expense
    2,023       2,537       4,101       5,474  
Less: Interest on deposits
    714       957       1,449       1,956  
Estimated interest component of net rental expense
    108       128       231       258  
     
 
  $ 1,417       1,708       2,883       3,776  
     
 
                               
Ratio of earnings to fixed charges (2)
    4.23       3.72       3.96       3.45  
     
 
(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.