EX-12.(A) 7 f06409exv12wxay.htm EXHIBIT 12.(A) exv12wxay
 

EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

                                         
 
    Year ended December 31 ,
(in millions)   2004     2003     2002     2001     2000  
   

Earnings, including interest on deposits (1):
                                        
Income before income tax expense and effect of change in accounting principle
   $ 10,769     $ 9,477     $ 8,854     $ 5,460     $ 6,526  
Fixed charges
     4,017       3,606       4,155       6,893       8,022  
 
                              
 
   $ 14,786     $ 13,083     $ 13,009     $ 12,353     $ 14,548  
 
                              

Fixed charges (1):
                                        
Interest expense
   $ 3,817     $ 3,411     $ 3,977     $ 6,741     $ 7,860  
Estimated interest component of net rental expense
     200       195       178       152       162  
 
                              
 
   $ 4,017     $ 3,606     $ 4,155     $ 6,893     $ 8,022  
 
                              

Ratio of earnings to fixed charges (2)
     3.68       3.63       3.13       1.79       1.81  
 
                              

Earnings excluding interest on deposits:
                                        
Income before income tax expense and effect of change in accounting principle
   $ 10,769     $ 9,477     $ 8,854     $ 5,460     $ 6,526  
Fixed charges
     2,190       1,993       2,236       3,340       3,933  
 
                              
 
   $ 12,959     $ 11,470     $ 11,090     $ 8,800     $ 10,459  
 
                              

Fixed charges:
                                        
Interest expense
   $ 3,817     $ 3,411     $ 3,977     $ 6,741     $ 7,860  
Less interest on deposits
     1,827       1,613       1,919       3,553       4,089  
Estimated interest component of net rental expense
     200       195       178       152       162  
 
                              
 
   $ 2,190     $ 1,993     $ 2,236     $ 3,340     $ 3,933  
 
                              

Ratio of earnings to fixed charges (2)
     5.92       5.76       4.96       2.63       2.66  
 
                              
 
     
(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 were 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 were 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.