EX-12.A 6 wfc-12312015xex12a.htm EXHIBIT 12.A Exhibit



EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
 
 
 
 
 
 
 
  
  
 
  Year ended December 31,
 
($ in millions)
 
2015

 
2014

 
2013

 
2012

 
2011

Earnings including interest on deposits (1):
 
  
 
  
 
  
 
  
 
  
  
Income before income tax expense
 
$
33,641

 
33,915

 
32,629

 
28,471

 
23,656

  
Less: Net income from noncontrolling interests
 
382

 
551

 
346

 
471

 
342

  
Income before income tax expense and after noncontrolling interests
 
33,259

 
33,364

 
32,283

 
28,000

 
23,314

  
Fixed charges
 
4,378

 
4,415

 
4,673

 
5,511

 
7,013

  
  
 
$
37,637

 
37,779

 
36,956

 
33,511

 
30,327

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges (1):
 
  

 
  

 
  

 
  

 
  

  
Interest expense
 
$
3,976

 
4,025

 
4,289

 
5,161

 
6,649

  
Estimated interest component of net rental expense
 
402

 
390

 
384

 
350

 
364

  
  
 
$
4,378

 
4,415

 
4,673

 
5,511

 
7,013

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
8.60

 
8.56

 
7.91

 
6.08

 
4.32

 
 
 
 
 
 
 
 
 
 
 
Earnings excluding interest on deposits:
 
  

 
  

 
  

 
  

 
  

  
Income before income tax expense and after noncontrolling interests
 
$
33,259

 
33,364

 
32,283

 
28,000

 
23,314

  
Fixed charges
 
3,415

 
3,319

 
3,336

 
3,784

 
4,738

  
  
 
$
36,674

 
36,683

 
35,619

 
31,784

 
28,052

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
  

 
  

 
  

 
  

 
  

  
Interest expense
 
$
3,976

 
4,025

 
4,289

 
5,161

 
6,649

  
Less: Interest on deposits
 
963

 
1,096

 
1,337

 
1,727

 
2,275

  
Estimated interest component of net rental expense
 
402

 
390

 
384

 
350

 
364

  
  
 
$
3,415

 
3,319

 
3,336

 
3,784

 
4,738

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
10.74

 
11.05

 
10.68

 
8.40

 
5.92

 
 

(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.