Wells Fargo & Company (WFC) 10-Q 2011 Q3 Quarterly report

Exhibit 12(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)	2011		2010		2011		2010
Earnings including interest on deposits(1):
Income before income tax expense	$	6,140		5,176		17,599		13,836
Less: Net income from noncontrolling interests		87		86		266		222
Income before income tax expense and noncontrolling interests		6,053		5,090		17,333		13,614
Fixed charges		1,724		2,131		5,435		6,463
		7,777		7,221		22,768		20,077
Preferred dividend requirement		322		189		921		548
Tax factor (based on effective tax rate)		1.49		1.52		1.47		1.52
Preferred dividends (2)		322		288		921		834
Fixed charges (1):
Interest expense		1,636		2,032		5,163		6,133
Estimated interest component of net rental expense		88		99		272		330
		1,724		2,131		5,435		6,463
Fixed charges and preferred dividends		2,046		2,419		6,356		7,297
Ratio of earnings to fixed charges and preferred dividends (3)		3.80		2.98		3.58		2.75
Earnings excluding interest on deposits:
Income before income tax expense and noncontrolling interests		6,053		5,090		17,333		13,614
Fixed charges		1,165		1,410		3,667		4,293
		7,218		6,500		21,000		17,907
Preferred dividends (2)		322		288		921		834
Fixed charges:
Interest expense		1,636		2,032		5,163		6,133
Less: Interest on deposits		559		721		1,768		2,170
Estimated interest component of net rental expense		88		99		272		330
		1,165		1,410		3,667		4,293
Fixed charges and preferred dividends	$	1,487		1,698		4,588		5,127
Ratio of earnings to fixed charges and preferred dividends (3)		4.85		3.83		4.58		3.49

(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.