EX-12.A 3 f59207exv12wa.htm EXHIBIT 12(A) exv12wa
EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
     
 
                                 
            Quarter             Six months  
    ended June 30,     ended June 30,  
(in millions)   2011     2010     2011     2010  
     
 
                                
Earnings including interest on deposits (1):
                                
Income before income tax expense
   $ 6,073       4,659       11,459       8,660  
Less: Net income from noncontrolling interests
     124       83       179       136  
     
Income before income tax expense and noncontrolling interests
     5,949       4,576       11,280       8,524  
Fixed charges
     1,798       2,131       3,711       4,332  
     
 
     7,747       6,707       14,991       12,856  
     
 
                                
Fixed charges (1):
                                
Interest expense
     1,706       2,023       3,527       4,101  
Estimated interest component of net rental expense
     92       108       184       231  
     
 
     1,798       2,131       3,711       4,332  
     
 
                                
Ratio of earnings to fixed charges (2)
     4.31       3.15       4.04       2.97  
     
 
                                
Earnings excluding interest on deposits:
                                
Income before income tax expense and noncontrolling interests
     5,949       4,576       11,280       8,524  
Fixed charges
     1,204       1,417       2,502       2,883  
     
 
     7,153       5,993       13,782       11,407  
     
 
                                
Fixed charges:
                                
Interest expense
     1,706       2,023       3,527       4,101  
Less: Interest on deposits
     594       714       1,209       1,449  
Estimated interest component of net rental expense
     92       108       184       231  
     
 
   $ 1,204       1,417       2,502       2,883  
     
 
                                
Ratio of earnings to fixed charges (2)
     5.94       4.23       5.51       3.96  
     
     
 
 
(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.