EXHIBIT 99(b)
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS
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Quarter
ended March 31,
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(in millions) 1997 1996
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EARNINGS, INCLUDING INTEREST ON DEPOSITS (1):
Income before income tax expense $ 630 $ 463
Fixed charges 594 348
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$1,224 $ 811
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Preferred dividend requirement $ 10 $ 10
Ratio of income before income tax expense to net income 1.86 1.75
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Preferred dividends (2) $ 19 $ 18
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Fixed charges (1):
Interest expense 561 330
Estimated interest component of net rental expense 33 18
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594 348
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Fixed charges and preferred dividends $ 613 $ 366
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Ratio of earnings to fixed charges and preferred
dividends (3) 2.00 2.22
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EARNINGS, EXCLUDING INTEREST ON DEPOSITS:
Income before income tax expense $ 630 $ 463
Fixed charges 172 107
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$ 802 $ 570
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Preferred dividends (2) $ 19 $ 18
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Fixed charges:
Interest expense 561 330
Estimated interest component of net rental expense 33 18
Less interest on deposits 422 241
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172 107
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Fixed charges and preferred dividends $ 191 $ 125
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Ratio of earnings to fixed charges and preferred
dividends (3) 4.20 4.56
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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.