EX-12.A 2 wfc-06302015xex12a.htm EXHIBIT 12.A WFC-06.30.2015-EX12a



EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
 
 
 
 
 
 
 
 
 
 
  
  
 
Quarter ended June 30,
 
 
 
Six months ended June 30,
($ in millions)
 
2015

 
2014

 
 
2015

 
2014

Earnings including interest on deposits (1):
 
 
 
 
 
 
 
 
 
  
Income before income tax expense
 
$
8,549

 
8,655

 
 
$
16,712

 
17,007

  
Less: Net income from noncontrolling interests
 
67

 
60

 
 
147

 
242

  
Income before income tax expense and after noncontrolling interests
 
8,482

 
8,595

 
 
16,565

 
16,765

  
Fixed charges
 
1,056

 
1,100

 
 
2,133

 
2,194

  
  
 
9,538

 
9,695

 
 
$
18,698

 
18,959

 
 
 
 
 
 
 
 
 
 
 
Fixed charges (1):
 
 
 
 
 
 
 
 
 
  
Interest expense
 
$
956

 
1,002

 
 
$
1,933

 
1,999

  
Estimated interest component of net rental expense
 
100

 
98

 
 
200

 
195

  
  
 
$
1,056

 
1,100

 
 
$
2,133

 
2,194

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
9.03

 
8.81

 
 
8.77

 
8.64

 
 
 
 
 
 
 
 
 
 
Earnings excluding interest on deposits:
 
 
 
 
 
 
 
 
 
  
Income before income tax expense and after noncontrolling interests
 
$
8,482

 
8,595

 
 
$
16,565

 
16,765

  
Fixed charges
 
824

 
825

 
 
1,643

 
1,640

  
  
 
$
9,306

 
9,420

 
 
$
18,208

 
18,405

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
  
Interest expense
 
$
956

 
1,002

 
 
$
1,933

 
1,999

  
Less: Interest on deposits
 
232

 
275

 
 
490

 
554

  
Estimated interest component of net rental expense
 
100

 
98

 
 
200

 
195

  
  
 
$
824

 
825

 
 
$
1,643

 
1,640

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
11.29

 
11.42

 
 
11.08

 
11.22

 
 

(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.