EX-12.(A) 2 d389180dex12a.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios of Earnings to Fixed Charges

EXHIBIT 12(a)

WELLS FARGO & COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

     Quarter ended
June 30,		      Six months ended
June 30,		  

($ in millions)

    2012      2011      2012      2011  

Earnings including interest on deposits (1):

            

Income before income tax expense

    $ 7,092         6,073         13,740         11,459   

Less: Net income from noncontrolling interests

      99         124         171         179   
  

 

 

     

 

 

     

 

 

     

 

 

  

Income before income tax expense and after noncontrolling interests

      6,993         5,949         13,569         11,280   

Fixed charges

      1,402         1,798         2,859         3,711   
  

 

 

     

 

 

     

 

 

     

 

 

  
     8,395         7,747         16,428         14,991   
  

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges (1):

            

Interest expense

      1,317         1,706         2,684         3,527   

Estimated interest component of net rental expense

      85         92         175         184   
  

 

 

     

 

 

     

 

 

     

 

 

  
     1,402         1,798         2,859         3,711   
  

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges (2)

      5.99         4.31         5.75         4.04   
  

 

 

     

 

 

     

 

 

     

 

 

  

Earnings excluding interest on deposits:

            

Income before income tax expense and after noncontrolling interests

    $ 6,993         5,949         13,569         11,280   

Fixed charges

      959         1,204         1,959         2,502   
  

 

 

     

 

 

     

 

 

     

 

 

  
     7,952         7,153         15,528         13,782   
  

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges:

            

Interest expense

      1,317         1,706         2,684         3,527   

Less: Interest on deposits

      443         594         900         1,209   

Estimated interest component of net rental expense

      85         92         175         184   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 959         1,204         1,959         2,502   
  

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges (2)

      8.29         5.94         7.93         5.51   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(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.