EX-12.A 2 f56682exv12wa.htm EX-12.A exv12wa
EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                                 
 
    Quarter     Six months  
    ended September 30 ,   ended September 30 ,
(in millions)   2010     2009     2010     2009  
 

Earnings including interest on deposits (1):

                                
Income before income tax expense
   $ 5,176       4,671       13,836       14,036  
Less: Net income from noncontrolling interests
     86       81       222       202  
     
Income before income tax expense and noncontrolling interests
     5,090       4,590       13,614       13,834  
Fixed charges
     2,131       2,410       6,463       8,142  
     
 
     7,221       7,000       20,077       21,976  
     

Fixed charges (1):

                                
Interest expense
     2,032       2,284       6,133       7,758  
Estimated interest component of net rental expense
     99       126       330       384  
     
 
     2,131       2,410       6,463       8,142  
     

Ratio of earnings to fixed charges (2)

     3.39       2.90       3.11       2.70  
     

Earnings excluding interest on deposits:

                                
Income before income tax expense and noncontrolling interests
     5,090       4,590       13,614       13,834  
Fixed charges
     1,410       1,505       4,293       5,281  
     
 
     6,500       6,095       17,907       19,115  
     

Fixed charges:

                                
Interest expense
     2,032       2,284       6,133       7,758  
Less: Interest on deposits
     721       905       2,170       2,861  
Estimated interest component of net rental expense
     99       126       330       384  
     
 
   $ 1,410       1,505       4,293       5,281  
     

Ratio of earnings to fixed charges (2)

     4.61       4.05       4.17       3.62  
     
 
(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.