Wells Fargo & Company (WFC) 10-Q 2009 Q2 Quarterly report

EXHIBIT 12(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)	2009		2008		2009		2008
Earnings including interest on deposits(1):
Income before income tax expense	$	4,724	$	2,603	$	9,365	$	5,696
Less: Net income from noncontrolling interests		77		16		121		36
Income before income tax expense and noncontrolling interests		4,647		2,587		9,244		5,660
Fixed charges		2,665		2,330		5,732		5,478
	$	7,312	$	4,917	$	14,976	$	11,138
Fixed charges (1):
Interest expense	$	2,537	$	2,269	$	5,474	$	5,358
Estimated interest component of net rental expense		128		61		258		120
	$	2,665	$	2,330	$	5,732	$	5,478
Ratio of earnings to fixed charges (2)		2.74		2.11		2.61		2.03
Earnings excluding interest on deposits:
Income before income tax expense and noncontrolling interests	$	4,647	$	2,587	$	9,244	$	5,660
Fixed charges		1,708		1,267		3,776		2,821
	$	6,355	$	3,854	$	13,020	$	8,481
Fixed charges:
Interest expense	$	2,537	$	2,269	$	5,474	$	5,358
Less: Interest on deposits		957		1,063		1,956		2,657
Estimated interest component of net rental expense		128		61		258		120
	$	1,708	$	1,267	$	3,776	$	2,821
Ratio of earnings to fixed charges (2)		3.72		3.04		3.45		3.01

(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.