EX-12.A 4 f56816exv12wa.htm EX-12.A exv12wa
EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                                         
 
    Year ended December 31 ,
(in millions)   2010     2009     2008     2007     2006  
   

Earnings including interest on deposits (1):

                                        
Income before income tax expense
   $ 19,001       17,998       3,300       11,835       12,797  
Less: Net income from noncontrolling interests
     301       392       43       208       147  
       
Income before income tax expense and noncontrolling interests
     18,700       17,606       3,257       11,627       12,650  
Fixed charges
     8,463       10,455       9,991       14,428       12,498  
       
 
     27,163       28,061       13,248       26,055       25,148  
       

Fixed charges (1):

                                        
Interest expense
     8,039       9,950       9,755       14,203       12,288  
Estimated interest component of net rental expense
     424       505       236       225       210  
       
 
     8,463       10,455       9,991       14,428       12,498  
       

Ratio of earnings to fixed charges (2)

     3.21       2.68       1.33       1.81       2.01  
       

Earnings excluding interest on deposits:

                                        
Income before income tax expense and noncontrolling interests
     18,700       17,606       3,257       11,627       12,650  
Fixed charges
     5,631       6,681       5,470       6,276       5,324  
       
 
     24,331       24,287       8,727       17,903       17,974  
       
Fixed charges:
                                        
Interest expense
     8,039       9,950       9,755       14,203       12,288  
Less: Interest on deposits
     2,832       3,774       4,521       8,152       7,174  
Estimated interest component of net rental expense
     424       505       236       225       210  
       
 
   $ 5,631       6,681       5,470       6,276       5,324  
       

Ratio of earnings to fixed charges (2)

     4.32       3.64       1.60       2.85       3.38  
       
   
(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.