EX-12.(A) 3 d331610dex12a.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios of Earnings to Fixed Charges

EXHIBIT 12(a)

WELLS FARGO & COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

     Quarter ended
March 31,
 

(in millions)

   2012      2011  

Earnings including interest on deposits (1):

     

Income before income tax expense

   $ 6,648         5,386   

Less: Net income from noncontrolling interests

     72         55   
  

 

 

    

 

 

 

Income before income tax expense and noncontrolling interests

     6,576         5,331   

Fixed charges

     1,457         1,913   
  

 

 

    

 

 

 
     8,033         7,244   
  

 

 

    

 

 

 

Fixed charges (1):

     

Interest expense

     1,367         1,821   

Estimated interest component of net rental expense

     90         92   
  

 

 

    

 

 

 
     1,457         1,913   
  

 

 

    

 

 

 

Ratio of earnings to fixed charges (2)

     5.51         3.79   
  

 

 

    

 

 

 

Earnings excluding interest on deposits:

     

Income before income tax expense and noncontrolling interests

     6,576         5,331   

Fixed charges

     1,000         1,298   
  

 

 

    

 

 

 
     7,576         6,629   
  

 

 

    

 

 

 

Fixed charges:

     

Interest expense

     1,367         1,821   

Less: Interest on deposits

     457         615   

Estimated interest component of net rental expense

     90         92   
  

 

 

    

 

 

 
   $ 1,000         1,298   
  

 

 

    

 

 

 

Ratio of earnings to fixed charges (2)

     7.58         5.11   
  

 

 

    

 

 

 

 

(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.