EXHIBIT 99(b)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS
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Quarter Six months
ended June 30, ended June 30,
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(in millions) 1996 1995 1996 1995
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EARNINGS, INCLUDING INTEREST ON DEPOSITS (1):
Income before income tax expense $ 662 $ 409 $1,125 $ 779
Fixed charges 594 388 942 764
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$1,256 $ 797 $2,067 $1,543
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Preferred dividend requirement $ 19 $ 10 $ 29 $ 21
Ratio of income before income tax expense to net income 1.82 1.76 1.79 1.68
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Preferred dividends (2) $ 35 $ 18 $ 52 $ 35
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Fixed charges (1):
Interest expense 558 372 888 732
Estimated interest component of net rental expense 36 16 54 32
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594 388 942 764
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Fixed charges and preferred dividends $ 629 $ 406 $ 994 $ 799
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Ratio of earnings to fixed charges and preferred dividends (3) 2.00 1.96 2.08 1.93
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EARNINGS, EXCLUDING INTEREST ON DEPOSITS:
Income before income tax expense $ 662 $ 409 $1,125 $ 779
Fixed charges 140 134 247 268
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$ 802 $ 543 $1,372 $1,047
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Preferred dividends (2) $ 35 $ 18 $ 52 $ 35
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Fixed charges (1):
Interest expense 558 372 888 732
Less interest on deposits (454) (254) (695) (496)
Estimated interest component of net rental expense 36 16 54 32
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140 134 247 268
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Fixed charges and preferred dividends $ 175 $ 152 $ 299 $ 303
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Ratio of earnings to fixed charges and preferred dividends (3) 4.58 3.57 4.59 3.46
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(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.