EX-12.(A) 4 f27602exv12wxay.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)   2006     2005     2004     2003     2002  
   
 
                                        
Earnings, including interest on deposits (1):
                                        
Income before income tax expense and effect of change in accounting principle
   $ 12,745     $ 11,548     $ 10,769     $ 9,477     $ 8,854  
Fixed charges
     12,498       7,656       4,017       3,606       4,155  
 
                              
 
   $ 25,243     $ 19,204     $ 14,786     $ 13,083     $ 13,009  
 
                              
 
                                        
Fixed charges (1):
                                        
Interest expense
   $ 12,288     $ 7,458     $ 3,817     $ 3,411     $ 3,977  
Estimated interest component of net rental expense
     210       198       200       195       178  
 
                              
 
   $ 12,498     $ 7,656     $ 4,017     $ 3,606     $ 4,155  
 
                              
 
                                        
Ratio of earnings to fixed charges (2)
     2.02       2.51       3.68       3.63       3.13  
 
                              
 
                                        
Earnings excluding interest on deposits:
                                        
Income before income tax expense and effect of change in accounting principle
   $ 12,745     $ 11,548     $ 10,769     $ 9,477     $ 8,854  
Fixed charges
     5,324       3,808       2,190       1,993       2,236  
 
                              
 
   $ 18,069     $ 15,356     $ 12,959     $ 11,470     $ 11,090  
 
                              
 
                                        
Fixed charges:
                                        
Interest expense
   $ 12,288     $ 7,458     $ 3,817     $ 3,411     $ 3,977  
Less interest on deposits
     7,174       3,848       1,827       1,613       1,919  
Estimated interest component of net rental expense
     210       198       200       195       178  
 
                              
 
   $ 5,324     $ 3,808     $ 2,190     $ 1,993     $ 2,236  
 
                              
 
                                        
Ratio of earnings to fixed charges (2)
     3.39       4.03       5.92       5.76       4.96  
 
                              
 
 
(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 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.