EX-12.A 2 wfc-3312016xex12a.htm EXHIBIT 12.A Exhibit



EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
 
 
 
 
 
  
  
 
Quarter ended March 31,
 
($ in millions)
 
2016

 
2015

Earnings including interest on deposits (1):
 
 
 
 
  
Income before income tax expense
 
$
8,081

 
8,163

  
Less: Net income from noncontrolling interests
 
52

 
80

  
Income before income tax expense and after noncontrolling interests
 
8,029

 
8,083

  
Fixed charges
 
1,408

 
1,077

  
  
 
$
9,437

 
9,160

 
 
 
 
 
 
Fixed charges (1):
 
 
 
 
  
Interest expense
 
$
1,305

 
977

  
Estimated interest component of net rental expense
 
103

 
100

  
  
 
$
1,408

 
1,077

 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
6.70

 
8.51

 
 
 
 
 
Earnings excluding interest on deposits:
 
 
 
 
  
Income before income tax expense and after noncontrolling interests
 
$
8,029

 
8,083

  
Fixed charges
 
1,101

 
819

  
  
 
$
9,130

 
8,902

 
 
 
 
 
 
Fixed charges:
 
 
 
 
  
Interest expense
 
$
1,305

 
977

  
Less: Interest on deposits
 
307

 
258

  
Estimated interest component of net rental expense
 
103

 
100

  
  
 
$
1,101

 
819

 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
8.29

 
10.87

 
 
(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.