Wells Fargo & Company (WFC) 10-Q 2004 Q2 Quarterly report

EXHIBIT 99(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)	2004		2003			2004		2003
Earnings, including interest on deposits(1):
Income before income tax expense	$	2,633	$	2,351		$	5,347	$	4,665
Fixed charges		892		930			1,750		1,855
	$	3,525	$	3,281		$	7,097	$	6,520
Preferred dividend requirement	$	—	$	1		$	—	$	2
Ratio of income before income tax expense to net income		1.54		1.54			1.54		1.55
Preferred dividends (2)	$	—	$	2		$	—	$	3
Fixed charges (1):
Interest expense		843		882			1,651		1,761
Estimated interest component of net rental expense		49		48			99		94
		892		930			1,750		1,855
Fixed charges and preferred dividends	$	892	$	932		$	1,750	$	1,858
Ratio of earnings to fixed charges and preferred dividends (3)		3.95		3.52			4.06		3.51
Earnings, excluding interest on deposits:
Income before income tax expense	$	2,633	$	2,351		$	5,347	$	4,665
Fixed charges		498		505			986		1,003
	$	3,131	$	2,856		$	6,333	$	5,668
Preferred dividends (2)	$	—	$	2		$	—	$	3
Fixed charges:
Interest expense		843		882			1,651		1,761
Less interest on deposits		394		425			764		852
Estimated interest component of net rental expense		49		48			99		94
		498		505			986		1,003
Fixed charges and preferred dividends	$	498	$	507		$	986	$	1,006
Ratio of earnings to fixed charges and preferred dividends (3)		6.29		5.64			6.42		5.63

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