Wells Fargo & Company (WFC) 10-Q 2012 Q1 Quarterly report

EXHIBIT 12(b)

WELLS FARGO & COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

AND PREFERRED DIVIDENDS

	Quarter ended March 31,
(in millions)	2012		2011
Earnings including interest on deposits(1):
Income before income tax expense	$	6,648		5,386
Less: Net income from noncontrolling interests		72		55
Income before income tax expense and noncontrolling interests		6,576		5,331
Fixed charges		1,457		1,913
		8,033		7,244
Preferred dividend requirement		226		189
Tax factor (based on effective tax rate)		1.55		1.42
Preferred dividends (2)		350		268
Fixed charges (1):
Interest expense		1,367		1,821
Estimated interest component of net rental expense		90		92
		1,457		1,913
Fixed charges and preferred dividends		1,807		2,181
Ratio of earnings to fixed charges and preferred dividends (3)		4.45		3.32
Earnings excluding interest on deposits:
Income before income tax expense and noncontrolling interests		6,576		5,331
Fixed charges		1,000		1,298
		7,576		6,629
Preferred dividends (2)		350		268
Fixed charges:
Interest expense		1,367		1,821
Less: Interest on deposits		457		615
Estimated interest component of net rental expense		90		92
		1,000		1,298
Fixed charges and preferred dividends	$	1,350		1,566
Ratio of earnings to fixed charges and preferred dividends (3)		5.61		4.23

(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.