EX-12.A 3 wfc-03312017xex12a.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)
 
2017

 
2016

Earnings including interest on deposits (1):
 
 
 
 
  
Income before income tax expense
 
$
7,605

 
8,081

  
Less: Net income from noncontrolling interests
 
91

 
52

  
Income before income tax expense and after noncontrolling interests
 
7,514

 
8,029

  
Fixed charges
 
2,031

 
1,408

  
  
 
$
9,545

 
9,437

 
 
 
 
 
 
Fixed charges (1):
 
 
 
 
  
Interest expense
 
$
1,926

 
1,305

  
Estimated interest component of net rental expense
 
105

 
103

  
  
 
$
2,031

 
1,408

 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
4.70

 
6.70

 
 
 
 
 
Earnings excluding interest on deposits:
 
 
 
 
  
Income before income tax expense and after noncontrolling interests
 
$
7,514

 
8,029

  
Fixed charges
 
1,494

 
1,101

  
  
 
$
9,008

 
9,130

 
 
 
 
 
 
Fixed charges:
 
 
 
 
  
Interest expense
 
$
1,926

 
1,305

  
Less: Interest on deposits
 
537

 
307

  
Estimated interest component of net rental expense
 
105

 
103

  
  
 
$
1,494

 
1,101

 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
6.03

 
8.29

 
 
(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.