EX-12 3 wfc10q_20140331ex12a.htm EX-12.(A)  

 

 

EXHIBIT 12(a)

WELLS FARGO & COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

  

  

  

Quarter ended March 31,

($ in millions)

  

2014 

  

2013 

  

  

  

  

  

  

Earnings including interest on deposits (1):

  

  

  

  

  

Income before income tax expense

$

 8,352 

  

 7,640 

  

Less: Net income from noncontrolling interests

  

 182 

  

 49 

  

Income before income tax expense and after noncontrolling interests

  

 8,170 

  

 7,591 

  

Fixed charges

  

 1,094 

  

 1,248 

  

  

  

 9,264 

  

 8,839 

  

  

  

  

  

  

Fixed charges (1):

  

  

  

  

  

Interest expense

  

 997 

  

 1,151 

  

Estimated interest component of net rental expense

  

 97 

  

 97 

  

  

$

 1,094 

  

 1,248 

  

  

  

  

  

  

Ratio of earnings to fixed charges (2)

  

 8.47 

  

 7.08 

  

  

  

  

  

  

Earnings excluding interest on deposits:

  

  

  

  

  

Income before income tax expense and after noncontrolling interests

$

 8,170 

  

 7,591 

  

Fixed charges

  

 815 

  

 879 

  

  

  

 8,985 

  

 8,470 

  

  

  

  

  

  

Fixed charges:

  

  

  

  

  

Interest expense

  

 997 

  

 1,151 

  

Less: Interest on deposits

  

 279 

  

 369 

  

Estimated interest component of net rental expense

  

 97 

  

 97 

  

  

$

 815 

  

 879 

  

  

  

  

  

  

Ratio of earnings to fixed charges (2)

  

 11.02 

  

 9.64 

  

  

  

  

  

  

  

  

  

  

  

  

(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.

 

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