EX-12.(A) 8 f97006exv12wxay.htm EXHIBIT 12(A) exv12wxay
 

EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

                                         
    Year ended December 31,
(in millions)
   2003
   2002
   2001
   2000
   1999
Earnings, including interest on deposits (1):
                                        
Income before income tax expense and effect of change in accounting principle
   $ 9,477     $ 8,854     $ 5,460     $ 6,526     $ 6,323  
Fixed charges
     3,606       4,155       6,893       8,022       5,943  
 
 
                              
 
 
   $ 13,083     $ 13,009     $ 12,353     $ 14,548     $ 12,266  
 
 
                              
 
Fixed charges (1):
                                        
Interest expense
   $ 3,411     $ 3,977     $ 6,741     $ 7,860     $ 5,818  
Estimated interest component of net rental expense
     195       178       152       162       125  
 
 
                              
 
 
   $ 3,606     $ 4,155     $ 6,893     $ 8,022     $ 5,943  
 
 
                              
 
Ratio of earnings to fixed charges (2)
     3.63       3.13       1.79       1.81       2.06  
 
 
                              
 
Earnings excluding interest on deposits:
                                        
Income before income tax expense and effect of change in accounting principle
   $ 9,477     $ 8,854     $ 5,460     $ 6,526     $ 6,323  
Fixed charges
     1,993       2,236       3,340       3,933       2,777  
 
 
                              
 
 
   $ 11,470     $ 11,090     $ 8,800     $ 10,459     $ 9,100  
 
 
                              
 
Fixed charges:
                                        
Interest expense
   $ 3,411     $ 3,977     $ 6,741     $ 7,860     $ 5,818  
Less interest on deposits
     1,613       1,919       3,553       4,089       3,166  
Estimated interest component of net rental expense
     195       178       152       162       125  
 
 
                              
 
 
   $ 1,993     $ 2,236     $ 3,340     $ 3,933     $ 2,777  
 
 
                              
 
Ratio of earnings to fixed charges (2)
     5.76       4.96       2.63       2.66       3.28  
 
 
                              
 

(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 were 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 were 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.