EX-12.(A) 5 d450230dex12a.htm EX-12.(A) EX-12.(a)

EXHIBIT 12(a)

WELLS FARGO & COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

 

     Year ended December 31,  
  

 

 

 
(in millions)    2012      2011      2010      2009      2008  

 

 
              

Earnings including interest on deposits (1):

              

Income before income tax expense

   $ 28,471         23,656         19,001         17,998         3,300   

Less: Net income from noncontrolling interests

     471         342         301         392         43   
  

 

 

 

Income before income tax expense and after noncontrolling interests

     28,000         23,314         18,700         17,606         3,257   

Fixed charges

     5,511         7,013         8,463         10,455         9,991   
  

 

 

 
   $ 33,511         30,327         27,163         28,061         13,248   
  

 

 

 
              

Fixed charges (1):

              

Interest expense

   $ 5,161         6,649         8,039         9,950         9,755   

Estimated interest component of net rental expense

     350         364         424         505         236   
  

 

 

 
   $ 5,511         7,013         8,463         10,455         9,991   
  

 

 

 
              

Ratio of earnings to fixed charges (2)

     6.08         4.32         3.21         2.68         1.33   
  

 

 

 
              

Earnings excluding interest on deposits:

              

Income before income tax expense and after noncontrolling interests

   $ 28,000         23,314         18,700         17,606         3,257   

Fixed charges

     3,784         4,738         5,631         6,681         5,470   
  

 

 

 
   $ 31,784         28,052         24,331         24,287         8,727   
  

 

 

 
              

Fixed charges:

              

Interest expense

   $ 5,161         6,649         8,039         9,950         9,755   

Less: Interest on deposits

     1,727         2,275         2,832         3,774         4,521   

Estimated interest component of net rental expense

     350         364         424         505         236   
  

 

 

 
   $ 3,784         4,738         5,631         6,681         5,470   
  

 

 

 
              

Ratio of earnings to fixed charges (2)

     8.40         5.92         4.32         3.64         1.60   
  

 

 

 

 

 

 

(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.