Wells Fargo & Company (WFC) 10-Q 2011 Q2 Quarterly report

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

			Quarter				Six months
	ended June 30,				ended June 30,
(in millions)	2011		2010		2011		2010
Earnings including interest on deposits(1):
Income before income tax expense	$	6,073		4,659		11,459		8,660
Less: Net income from noncontrolling interests		124		83		179		136
Income before income tax expense and noncontrolling interests		5,949		4,576		11,280		8,524
Fixed charges		1,798		2,131		3,711		4,332
		7,747		6,707		14,991		12,856
Preferred dividend requirement		332		184		599		359
Tax factor (based on effective tax rate)		1.51		1.49		1.46		1.52
Preferred dividends (2)		332		275		599		546
Fixed charges (1):
Interest expense		1,706		2,023		3,527		4,101
Estimated interest component of net rental expense		92		108		184		231
		1,798		2,131		3,711		4,332
Fixed charges and preferred dividends		2,130		2,406		4,310		4,878
Ratio of earnings to fixed charges and preferred dividends (3)		3.64		2.79		3.48		2.64
Earnings excluding interest on deposits:
Income before income tax expense and noncontrolling interests		5,949		4,576		11,280		8,524
Fixed charges		1,204		1,417		2,502		2,883
		7,153		5,993		13,782		11,407
Preferred dividends (2)		332		275		599		546
Fixed charges:
Interest expense		1,706		2,023		3,527		4,101
Less: Interest on deposits		594		714		1,209		1,449
Estimated interest component of net rental expense		92		108		184		231
		1,204		1,417		2,502		2,883
Fixed charges and preferred dividends	$	1,536		1,692		3,101		3,429
Ratio of earnings to fixed charges and preferred dividends (3)		4.66		3.54		4.44		3.33

(1)	As defined in Item 503(d) of Regulation S-K.
(2)	The preferred dividends, including accretion, were increased to amounts representing the pretax earnings that would be required to cover such dividend and accretion requirements.
(3)	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.