EX-12.A 4 wfc-12312017xex12a.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)
 
 
2017

 
2016

 
2015

 
2014

 
2013

Earnings including interest on deposits (1):
 
 
  
 
  
 
  
 
  
 
  
  
Income before income tax expense
 
 
$
27,377

 
32,120

 
33,641

 
33,915

 
32,629

  
Less: Net income from noncontrolling interests
 
 
277

 
107

 
382

 
551

 
346

  
Income before income tax expense and after noncontrolling interests
 
 
27,100

 
32,013

 
33,259

 
33,364

 
32,283

  
Fixed charges
 
 
9,763

 
6,325

 
4,378

 
4,415

 
4,673

  
 
 
 
$
36,863

 
38,338

 
37,637

 
37,779

 
36,956

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges (1):
 
 
  

 
  

 
  

 
  

 
  

  
Interest expense
 
 
$
9,352

 
5,909

 
3,976

 
4,025

 
4,289

  
Estimated interest component of net rental expense
 
 
411

 
416

 
402

 
390

 
384

  
  
 
 
$
9,763

 
6,325

 
4,378

 
4,415

 
4,673

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
 
3.78

 
6.06

 
8.60

 
8.56

 
7.91

 
 
 
 
 
 
 
 
 
 
 
 
Earnings excluding interest on deposits:
 
 
  

 
  

 
  

 
  

 
  

  
Income before income tax expense and after noncontrolling interests
 
 
$
27,100

 
32,013

 
33,259

 
33,364

 
32,283

  
Fixed charges
 
 
6,750

 
4,930

 
3,415

 
3,319

 
3,336

  
  
 
 
$
33,850

 
36,943

 
36,674

 
36,683

 
35,619

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
  

 
  

 
  

 
  

 
  

  
Interest expense
 
 
$
9,352

 
5,909

 
3,976

 
4,025

 
4,289

  
Less: Interest on deposits
 
 
3,013

 
1,395

 
963

 
1,096

 
1,337

  
Estimated interest component of net rental expense
 
 
411

 
416

 
402

 
390

 
384

  
  
 
 
$
6,750

 
4,930

 
3,415

 
3,319

 
3,336

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
 
5.01

 
7.49

 
10.74

 
11.05

 
10.68

 
 
(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.