EX-12.A 9 wfc-06302017xex12a.htm EXHIBIT 12.A Exhibit



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)
 
2017

 
2016

 
2017

 
2016

Earnings including interest on deposits (1):
 
 
 
 
 
 
 
 
  
Income before income tax expense
 
$
8,073

 
8,222

 
$
15,678

 
16,303

  
Less: Net income from noncontrolling interests
 
38

 
15

 
129

 
67

  
Income before income tax expense and after noncontrolling interests
 
8,035

 
8,207

 
15,549

 
16,236

  
Fixed charges
 
2,335

 
1,517

 
4,366

 
2,925

  
 
 
10,370

 
9,724

 
$
19,915

 
19,161

 
 
 
 
 
 
 
 
 
 
Fixed charges (1):
 
 
 
 
 
 
 
 
  
Interest expense
 
$
2,232

 
1,413

 
$
4,158

 
2,718

  
Estimated interest component of net rental expense
 
103

 
104

 
208

 
207

  
  
 
$
2,335

 
1,517

 
$
4,366

 
2,925

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
4.44

 
6.41

 
4.56

 
6.55

 
 
 
 
 
 
 
 
 
Earnings excluding interest on deposits:
 
 
 
 
 
 
 
 
  
Income before income tax expense and after noncontrolling interests
 
$
8,035

 
8,207

 
$
15,549

 
16,236

  
Fixed charges
 
1,652

 
1,185

 
3,146

 
2,286

  
  
 
$
9,687

 
9,392

 
$
18,695

 
18,522

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
  
Interest expense
 
$
2,232

 
1,413

 
$
4,158

 
2,718

  
Less: Interest on deposits
 
683

 
332

 
1,220

 
639

  
Estimated interest component of net rental expense
 
103

 
104

 
208

 
207

  
  
 
$
1,652

 
1,185

 
$
3,146

 
2,286

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
5.86

 
7.93

 
5.94

 
8.10

 
 
(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.