Wells Fargo & Company (WFC) 10-Q 2004 Q3 Quarterly report

EXHIBIT 99(b)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS

	Quarter					Nine months
	ended September 30				,	ended September 30				,
(in millions)	2004		2003			2004		2003
Earnings, including interest on deposits (1):
Income before income tax expense	$	2,690	$	2,332		$	8,037	$	6,998
Fixed charges		1,037		889			2,787		2,745
	$	3,727	$	3,221		$	10,824	$	9,743
Preferred dividend requirement	$	—	$	1		$	—	$	3
Ratio of income before income tax expense to net income		1.54		1.49			1.54		1.53
Preferred dividends (2)	$	—	$	1		$	—	$	5
Fixed charges (1):
Interest expense		987		837			2,638		2,598
Estimated interest component of net rental expense		50		52			149		147
		1,037		889			2,787		2,745
Fixed charges and preferred dividends	$	1,037	$	890		$	2,787	$	2,750
Ratio of earnings to fixed charges and preferred dividends (3)		3.59		3.62			3.88		3.54
Earnings, excluding interest on deposits:
Income before income tax expense	$	2,690	$	2,332		$	8,037	$	6,998
Fixed charges		550		505			1,536		1,509
	$	3,240	$	2,837		$	9,573	$	8,507
Preferred dividends (2)	$	—	$	1		$	—	$	5
Fixed charges:
Interest expense		987		837			2,638		2,598
Less interest on deposits		487		384			1,251		1,236
Estimated interest component of net rental expense		50		52			149		147
		550		505			1,536		1,509
Fixed charges and preferred dividends	$	550	$	506		$	1,536	$	1,514
Ratio of earnings to fixed charges and preferred dividends (3)		5.89		5.61			6.23		5.62

(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.