EX-12.(A) 2 f17867exv12wxay.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)   2005     2004     2003     2002     2001  
 

Earnings, including interest on deposits (1):

                                        
Income before income tax expense and effect
of change in accounting principle
   $ 11,548     $ 10,769     $ 9,477     $ 8,854     $ 5,460  
Fixed charges
     7,656       4,017       3,606       4,155       6,893  
 
                              
 
   $ 19,204     $ 14,786     $ 13,083     $ 13,009     $ 12,353  
 
                              

Fixed charges (1):

                                        
Interest expense
   $ 7,458     $ 3,817     $ 3,411     $ 3,977     $ 6,741  
Estimated interest component of net rental expense
     198       200       195       178       152  
 
                              
 
   $ 7,656     $ 4,017     $ 3,606     $ 4,155     $ 6,893  
 
                              

Ratio of earnings to fixed charges (2)

     2.51       3.68       3.63       3.13       1.79  
 
                              

Earnings excluding interest on deposits:

                                        
Income before income tax expense and effect
of change in accounting principle
   $ 11,548     $ 10,769     $ 9,477     $ 8,854     $ 5,460  
Fixed charges
     3,808       2,190       1,993       2,236       3,340  
 
                              
 
   $ 15,356     $ 12,959     $ 11,470     $ 11,090     $ 8,800  
 
                              

Fixed charges:

                                        
Interest expense
   $ 7,458     $ 3,817     $ 3,411     $ 3,977     $ 6,741  
Less interest on deposits
     3,848       1,827       1,613       1,919       3,553  
Estimated interest component of net rental expense
     198       200       195       178       152  
 
                              
 
   $ 3,808     $ 2,190     $ 1,993     $ 2,236     $ 3,340  
 
                              

Ratio of earnings to fixed charges (2)

     4.03       5.92       5.76       4.96       2.63  
 
                              
   
(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.