EX-12.A 2 d239752dex12a.htm COMPUTATION OF RATIOS OF EARNINGS Computation of Ratios of Earnings

Exhibit 12(a)

WELLS FARGO & COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

 

     Quarter      Nine months  
   ended September 30,      ended September 30,  
(in millions)    2011      2010      2011      2010  

 

     

 

 

  

Earnings including interest on deposits (1):

            

Income before income tax expense

    $ 6,140         5,176         17,599         13,836   

Less: Net income from noncontrolling interests

      87         86         266         222   
  

 

 

  

Income before income tax expense and noncontrolling interests

      6,053         5,090         17,333         13,614   

Fixed charges

      1,724         2,131         5,435         6,463   
  

 

 

  
     7,777         7,221         22,768         20,077   
  

 

 

  

Fixed charges (1):

            

Interest expense

      1,636         2,032         5,163         6,133   

Estimated interest component of net rental expense

      88         99         272         330   
  

 

 

  
     1,724         2,131         5,435         6,463   
  

 

 

  

Ratio of earnings to fixed charges (2)

      4.51         3.39         4.19         3.11   
  

 

 

  

Earnings excluding interest on deposits:

            

Income before income tax expense and noncontrolling interests

      6,053         5,090         17,333         13,614   

Fixed charges

      1,165         1,410         3,667         4,293   
  

 

 

  
     7,218         6,500         21,000         17,907   
  

 

 

  

Fixed charges:

            

Interest expense

      1,636         2,032         5,163         6,133   

Less: Interest on deposits

      559         721         1,768         2,170   

Estimated interest component of net rental expense

      88         99         272         330   
  

 

 

  
   $ 1,165         1,410         3,667         4,293   
  

 

 

  

Ratio of earnings to fixed charges (2)

      6.20         4.61         5.73         4.17   
  

 

 

  

 

 

 

(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.