EXHIBIT 12(a)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS
- ------------------------------------------------------------------------------------------------------------------------------------
Quarter
Ended
March 31,
1995 Year Ended December 31,
-------------------------------------------------------
(in millions) 1994 1993 1992 1991 1990
- ----------------------------------------------------------------------------------------------------------
Earnings, including interest on
deposits<F1>:
Income before income tax
expense $ 370 $ 1,454 $ 1,038 $ 500 $ 54 $ 1,196
Fixed charges 377 1,214 1,157 1,505 2,504 2,784
--- ----- ----- ----- ----- -----
$ 747 $ 2,668 $ 2,195 $ 2,005 $ 2,558 $ 3,980
=== ===== ===== ===== ===== =====
Preferred dividend requirement $ 10 $ 43 $ 50 $ 48 $ 19 $ 27
Ratio of income before income tax
expense to net income 1.59 1.73 1.70 1.77 2.57 1.68
---- ---- ---- ---- ---- ----
Preferred dividends<F2> $ 16 $ 74 $ 85 $ 85 $ 49 $ 45
-- -- -- -- -- --
Fixed charges<F1>:
Interest expense 360 1,155 1,104 1,454 2,452 2,737
Estimated interest component of
net rental expense 17 59 53 51 52 47
-- -- -- -- -- --
377 1,214 1,157 1,505 2,504 2,784
--- ----- ----- ----- ----- -----
Fixed charges and preferred
dividends $ 393 $ 1,288 $ 1,242 $ 1,590 $ 2,553 $ 2,829
--- ===== ===== ===== ===== =====
Ratio of earnings to fixed charges
and preferred dividends<F3> 1.90 2.07 1.77 1.26 1.00 1.41
==== ==== ==== ==== ==== ====
Earnings, excluding interest on
deposits:
Income before income tax
expense $ 370 $ 1,454 $ 1,038 $ 500 $ 54 $ 1,196
Fixed charges 135 360 294 320 539 839
--- --- --- --- --- ---
$ 505 $ 1,814 $ 1,332 $ 820 $ 593 $ 2,035
=== ===== ===== === === =====
Preferred dividends<F2> $ 16 $ 74 $ 85 $ 85 $ 49 $ 45
-- -- -- -- -- --
Fixed charges:
Interest expense 360 1,155 1,104 1,454 2,452 2,737
Less interest on deposits (242) (854) (863) (1,185) (1,965) (1,945)
Estimated interest component of
net rental expense 17 59 53 51 52 47
-- -- -- -- -- --
135 360 294 320 539 839
--- --- --- --- --- ---
Fixed charges and preferred
dividends $ 151 $ 434 $ 379 405 $ 588 $ 884
=== === === === === ===
Ratio of earnings to fixed charges 3.34 4.18 3.51 2.02 1.01 2.30
and preferred dividends ==== ==== ==== ==== ==== ====
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<FN>
<F1> As defined in Item 503(d) of Regulation S-K.
<F2> The preferred dividends were increased to amounts
representing the pretax earnings that would be required to
cover such dividend requirements.
<F3> 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 were 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 were 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.
</FN>