EX-12.A 7 f54129exv12wa.htm EX-12.A exv12wa
EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
                                         
    Year ended December 31,  
     
(in millions)
   2009     2008     2007     2006     2005  
 
 
                                        
Earnings including interest on deposits (1):
                                        
Income before income tax expense
   $ 17,998       3,300       11,835       12,797       11,769  
Less: Net income from noncontrolling interests
     392       43       208       147       221  
 
                              
Income before income tax expense and noncontrolling interests
     17,606       3,257       11,627       12,650       11,548  
Fixed charges
     10,455       9,991       14,428       12,498       7,656  
 
                              
 
     28,061       13,248       26,055       25,148       19,204  
 
                              
 
                                        
Fixed charges (1):
                                        
Interest expense
     9,950       9,755       14,203       12,288       7,458  
Estimated interest component of net rental expense
     505       236       225       210       198  
 
                              
 
     10,455       9,991       14,428       12,498       7,656  
 
                              
 
                                        
Ratio of earnings to fixed charges (2)
     2.68       1.33       1.81       2.01       2.51  
 
                              
 
                                        
Earnings excluding interest on deposits:
                                        
Income before income tax expense and noncontrolling interests
     17,606       3,257       11,627       12,650       11,548  
Fixed charges
     6,681       5,470       6,276       5,324       3,808  
 
                              
 
     24,287       8,727       17,903       17,974       15,356  
 
                              
 
                                        
Fixed charges:
                                        
Interest expense
     9,950       9,755       14,203       12,288       7,458  
Less: Interest on deposits
     3,774       4,521       8,152       7,174       3,848  
Estimated interest component of net rental expense
     505       236       225       210       198  
 
                              
 
   $ 6,681       5,470       6,276       5,324       3,808  
 
                              
 
                                        
Ratio of earnings to fixed charges (2)
     3.64       1.60       2.85       3.38       4.03  
 
                              
 
(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.