EX-12.(A) 6 f51597exv12wxay.htm EX-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)   2008     2007     2006     2005     2004  
 
 
                                        
Earnings including interest on deposits (1):
                                        
Income before income tax expense
   $ 3,257     $ 11,627     $ 12,650     $ 11,548     $ 10,769  
Fixed charges
     9,991       14,428       12,498       7,656       4,017  
 
                              
 
   $ 13,248     $ 26,055     $ 25,148     $ 19,204     $ 14,786  
 
                              
 
                                        
Fixed charges (1):
                                        
Interest expense
   $ 9,755     $ 14,203     $ 12,288     $ 7,458     $ 3,817  
Estimated interest component of net rental expense
     236       225       210       198       200  
 
                              
 
   $ 9,991     $ 14,428     $ 12,498     $ 7,656     $ 4,017  
 
                              
 
                                        
Ratio of earnings to fixed charges (2)
     1.33       1.81       2.01       2.51       3.68  
 
                              
 
                                        
Earnings excluding interest on deposits:
                                        
Income before income tax expense
   $ 3,257     $ 11,627     $ 12,650     $ 11,548     $ 10,769  
Fixed charges
     5,470       6,276       5,324       3,808       2,190  
 
                              
 
   $ 8,727     $ 17,903     $ 17,974     $ 15,356     $ 12,959  
 
                              
 
                                        
Fixed charges:
                                        
Interest expense
   $ 9,755     $ 14,203     $ 12,288     $ 7,458     $ 3,817  
Less interest on deposits
     4,521       8,152       7,174       3,848       1,827  
Estimated interest component of net rental expense
     236       225       210       198       200  
 
                              
 
   $ 5,470     $ 6,276     $ 5,324     $ 3,808     $ 2,190  
 
                              
 
                                        
Ratio of earnings to fixed charges (2)
     1.60       2.85       3.38       4.03       5.92  
 
                              
 
 
(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.