EX-99.(A) 7 f00790exv99wxay.htm EXHIBIT 99(A) exv99wxay
 

EXHIBIT 99(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

                                 
    Quarter           Six months  
    ended June 30,   ended June 30,
(in millions)   2004     2003     2004     2003  
 
Earnings, including interest on deposits (1):
                                
Income before income tax expense
   $ 2,633     $ 2,351     $ 5,347     $ 4,665  
Fixed charges
     892       930       1,750       1,855  
 
                        
 
   $ 3,525     $ 3,281     $ 7,097     $ 6,520  
 
                        
Fixed charges (1):
                                
Interest expense
   $ 843     $ 882     $ 1,651     $ 1,761  
Estimated interest component of net rental expense
     49       48       99       94  
 
                        
 
   $ 892     $ 930     $ 1,750     $ 1,855  
 
                        
Ratio of earnings to fixed charges (2)
     3.95       3.53       4.06       3.51  
 
                        
Earnings, excluding interest on deposits:
                                
Income before income tax expense
   $ 2,633     $ 2,351     $ 5,347     $ 4,665  
Fixed charges
     498       505       986       1,003  
 
                        
 
   $ 3,131     $ 2,856     $ 6,333     $ 5,668  
 
                        
Fixed charges:
                                
Interest expense
   $ 843     $ 882     $ 1,651     $ 1,761  
Less interest on deposits
     394       425       764       852  
Estimated interest component of net rental expense
     49       48       99       94  
 
                        
 
   $ 498     $ 505     $ 986     $ 1,003  
 
                        
Ratio of earnings to fixed charges (2)
     6.29       5.66       6.42       5.65  
 
                        

(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.