EX-12.A 3 wfc-09302015xex12a.htm EXHIBIT 12.A Exhibit



EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
 
 
 
 
 
 
 
 
 
 
  
  
 
Quarter ended Sep 30,
 
 
 
Nine months ended Sep 30,
 
($ in millions)
 
2015

 
2014

 
 
2015

 
2014

Earnings including interest on deposits (1):
 
 
 
 
 
 
 
 
 
  
Income before income tax expense
 
$
8,773

 
8,597

 
 
$
25,485

 
25,604

  
Less: Net income from noncontrolling interests
 
187

 
226

 
 
334

 
468

  
Income before income tax expense and after noncontrolling interests
 
8,586

 
8,371

 
 
25,151

 
25,136

  
Fixed charges
 
1,089

 
1,120

 
 
3,222

 
3,314

  
  
 
9,675

 
9,491

 
 
$
28,373

 
28,450

 
 
 
 
 
 
 
 
 
 
 
Fixed charges (1):
 
 
 
 
 
 
 
 
 
  
Interest expense
 
$
988

 
1,023

 
 
$
2,921

 
3,022

  
Estimated interest component of net rental expense
 
101

 
97

 
 
301

 
292

  
  
 
$
1,089

 
1,120

 
 
$
3,222

 
3,314

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
8.88

 
8.47

 
 
8.81

 
8.58

 
 
 
 
 
 
 
 
 
 
Earnings excluding interest on deposits:
 
 
 
 
 
 
 
 
 
  
Income before income tax expense and after noncontrolling interests
 
$
8,586

 
8,371

 
 
$
25,151

 
25,136

  
Fixed charges
 
857

 
847

 
 
2,500

 
2,487

  
  
 
$
9,443

 
9,218

 
 
$
27,651

 
27,623

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
  
Interest expense
 
$
988

 
1,023

 
 
$
2,921

 
3,022

  
Less: Interest on deposits
 
232

 
273

 
 
722

 
827

  
Estimated interest component of net rental expense
 
101

 
97

 
 
301

 
292

  
  
 
$
857

 
847

 
 
$
2,500

 
2,487

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
11.02

 
10.88

 
 
11.06

 
11.11

 
 

(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.